MARK 3321: Test 1
92 Cards in this Set
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Define Marketing:
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The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
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The goal of marketing is:
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to create exchanges
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What activities are used to achieve exchanges?
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Price Product Place Promotion (the 4 Ps)
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Define exchange:
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People giving up something to receive something they would rather have.
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What are the conditions necessary for exchange?
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At least two parties
Something of value
Communication and delivery
Freedom to accept or reject
Desire to deal with the other party
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What are the four Marketing Management Philosophies/Orientations?
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Production
Sales
Market
Societal
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Define a Production Orientation:
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Focus is on the internal capabilities of the firm
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Define a Sales Orientation:
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Focus is on aggressive sales techniques and belief that high sales result in high profits
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Define a Market Orientation:
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Focus is on satisfying customer needs and wants while meeting objectives
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Define a Societal Orientation:
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Focus is on satisfying customer needs and wants while enhancing individual and societal well-being
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Define Marketing Concept:
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The idea that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives.
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These define a Sales Oriented Organization:
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They have an inward focus
They sell goods and services for everybody
The primary goal is profit via max sales
They will use promotion to achieve their goal
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These define a Market Oriented Organization:
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They have an outward focus
They satisfy the needs and wants of specific groups of people
They will achieve the primary goal of profit via customer satisfaction through the coordinated use of all marketing activities
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Define customer value:
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The relationship between benefits and the sacrifice necessary to obtain those benefits.
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Outward focus involves a consideration of these concepts:
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Customer value
Relationship marketing
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Define relationship marketing:
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A strategy that focuses on keeping and improving relationships with current customers.
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Why study marketing?
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It is important to society
It is important to business
It provides good career opportunities
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What is strategic planning?
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It is what creates and maintains a fit between the organization's resources and objectives and the evolving market opportunities.
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What is the goal of strategic planning?
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To sustain and increase long-run profitability and growth.
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Know how to interpret Ansoff's Strategic Opportunity Matrix:
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The cross sections of Present and New Products and Present and New Markets.
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What is a Strategic Business Unit?
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A subgroup of a single business or a collection of related businesses within the larger organization.
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What are the characteristics of a Strategic Business Unit?
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A distinct mission and specific target market
Control over its resources
Its own competitors
Plans independent of others like it
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Know how to interpret the Boston Consulting Group (BCG) Matrix.
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The cross sections of High and Low Market Shares and Industry Growth Rates.
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What are the 4 categories in the BCG Matrix?
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Stars
Question Marks
Cash Cows
Dogs
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What should you do with a star SBU?
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Reinvest earnings in product improvement, distribution, promotion and production efficiency. These have high growth rates and a high market share.
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What should you do with a cash cow SBU?
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These have high market share but low growth rates, so to maintain market dominance be the price leader and make technological improvements. Allocate excess cash to high-growth prospects.
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What should you do with a problem child/question mark SBU?
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These show rapid growth but little market share. It needs a great deal of cash to prevent conversion to a dog. Invest to gain market share, acquire competitors or drop this SBU.
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What should you do if you have a dog SBU?
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These have low growth and low market share. You should divest or harvest what you can and get out of the market.
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Define Marketing Plan:
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A written document that acts as a guidebook of marketing activities for the marketing manager.
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Why write a marketing plan?
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It allows the examination of the marketing environment in conjunction with the inner workings of other businesses. It also serves as the reference point for future activities.
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What is the marketing mix?
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Price Product Place Promotion
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What are the elements of a marketing plan?
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Business Mission Statement
SWOT Analysis
Objectives
Marketing Strategy (including Target Market Strategy and Marketing Mix)
Implementation, Evaluation and Control
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What represents the mission statement of a business?
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It establishes boundaries for all subsequent decisions, objectives and strategies. It is the foundation of a firm's marketing plan. It answers "What business are we in?
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What is business myopia?
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Defining a business in terms of goods and services rather than in terms of the benefits customers seek.
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What does a SWOT Analysis do?
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It helps firms identify their competitive advantage.
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Which two steps of the SWOT Analysis are internal?
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Strengths and Weakenesses
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Which two steps of the SWOT Analysis are external?
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Opportunities and Threats
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Define Strengths as they pertain to SWOT
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Things the company does well
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Define Weaknesses as they pertain to SWOT
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Things the company does not do well
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Define Opportunities as they pertain to SWOT
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Conditions in the external environment that favor strengths
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Define Threats as they pertain to SWOT
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Conditions in the external environment that do not relate to existing strengths or favor areas of current weaknesses
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Identify some things that could be strengths or weaknesses as they apply to SWOT
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Production Costs
Marketing Skills
Financial Resources
Company or Brand Image
Employee Capabilities
Technology
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Identify some things that could be opportunities or threats as they apply to SWOT
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Social
Demographic
Economic
Technological
Political/Legal
Competitive
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What is environmental scanning?
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The collection and interpretation of info about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan.
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What is environmental scanning used for?
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Help identify market opportunities and threats and provides guidelines for the design of marketing strategy.
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Define Competitive Advantage:
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The set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition.
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Types of Competitive Advantage
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Cost
Product/Service Differentiation
Niche Strategies
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What are the reasons that cause customers to patronize one firm and not their competition?
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Competitive advantage
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What will a firm do when it has achieved a competitive advantage over their rivals?
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Stake out a position that is unique
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What is an advantage that cannot be copied by the competition?
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Sustainable Competitive Advantage
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Marketing Objective Statements should have what characteristics?
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Realistic
Measurable
Time Specific
Compared to a benchmark
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What is a marketing objective statement?
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It says what is to be accomplished through marketing activities.
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What defines a Marketing Strategy?
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The activities of selecting and describing one or more target markets and developing and maintaining a market mix that will produce mutually satisfying exchanges with target markets.
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In what different ways can firms select their target market?
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Entire market
Multiple segments of the market
One segment of the market
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What is the Marketing Mix?
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The Four Ps: Place Promotion Price Product
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What process turns a marketing plan into action assignments?
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Implementation
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In what process will a company endure a systematic, periodic evaluation of the objectives, strategies, structure and performance of the marketing organization?
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Evaluation and Control
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What make up the external marketing environment?
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Demographics
Social Change
Economic Conditions
Political and Legal Factors
Technology
Competition
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Which ethnic markets are growing in the US?
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Hispanic
African American
Asian
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What does a code of ethics do?
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Helps identify acceptable business practices
Helps control behavior internally
Avoids confusion in decision making
Facilitates discussion about right and wrong
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Define Sustainability
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The idea that socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as opportunities to build profits and help the world at the same time.
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What is the newest theory in Corporate Social Responsibility?
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Sustainability
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What are the components of Corporate Social Responsibility?
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Economic - Be profitable
Legal - Obey the law
Ethical - Do what is right; avoid harm
Philanthropic - Be a good corporate citizen
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What are arguments for Corporate Social Responsibility?
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Its the right thing to do
Gov't will create new laws and fines if firms aren't socially responsible
It can enhance a company's profitability
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What are arguments against Corporate Social Responsibility?
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The job of the corporation is to maximize profits for the stockholders
Businesses are better at producing goods/services and shouldn't be involved in welfare
If global competitors don't have to be socially responsible, they will have lowers costs and can compete more effectively in the …
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What is green marketing?
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The development and marketing of products designed to minimize negative effects on the environment or improve the environment.
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What is cause-related marketing?
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For-profit and non-profit organizations cooperate to generate funds.
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What does it mean to have a global vision?
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Recognizing and reacting to international marketing opportunities.
Using effective global marketing strategies.
Being aware of threats from foreign competitors.
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What are the negatives of global trade?
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Millions of lost jobs for Americans.
Millions fear losing their jobs.
Threat of outsourcing if workers don't accept pay cuts.
Vulnerability to operations moving offshore.
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Identify the benefits of globalization:
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Expanding economic freedom
Spurs competition
Raises productivity and living standards
Offers access to foreign capital, global export markets and advanced technology
Promotes higher labor and environmental standards
Acts as a check on governmental power
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What are the external environmental factors facing global marketers?
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Culture
Natural resources
Demographic makeup
Political Structure
Economic and Tech Development
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Define culture
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A common set of values shared by a society's citizens that determine what is socially acceptable.
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What makes up culture?
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Language
Religion
Superstitions
Etiquette
Customs
Traditions
Notions of time
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What legal considerations does a global competitor face regarding political structure?
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Tariffs
Quotas
Boycotts
Exchange Control
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What is market grouping in the context of global marketing?
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When several countries agree to work together to form a common trade area that enhances trade opportunities.
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Define trade agreement
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An agreement to stimulate international trade.
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What ways can a company enter the global marketplace?
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Export
Licensing
Contract Manufacturing
Joint Venture
Direct Investment
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Define Export
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Sell domestically produced products to buyers in other countries
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Define licensing
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Legal process allowing use of manufacturing/patents/knowledge
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Define contract manufacturing
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Private-label manufacturing by a foreign company
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Define joint venture
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Domestic firm buys/joins a foreign company to create a new identity
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Define direct investment
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Active ownership of a foreign company/manufacturing facility
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List the 5 methods of entering global markets in order of risk and return from low to high.
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Export, Licensing, Contract Manufacturing, Joint Venture, Direct Investment
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What is global marketing standardization?
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Production of uniform products that can be sold the same way all over the world.
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Define multidomestic strategy
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Subsidiaries of multinational firms are allowed to compete independently in domestic markets.
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Identify the four decisions a company has regarding altering or promoting a product in the global market.
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One Product One Message
Product Adaptation
Message Adaptation
Product Invention
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Identify One Product One Message
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Global marketing standardization means developing a single product and promoting it the same way worldwide.
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Identify Product Invention
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This refers to creating a new product or drastically changing an existing product for global markets.
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Identify Product Adaptation
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Products, including packaging, are slightly altered to meet local conditions
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Identify Message Adaptation
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The same basic product is maintained, but the promotional strategy is altered to position the product effectively in other countries.
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Identify some obstacles facing a globally competitive organization when it comes to Place (Distribution)
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Lack of distribution infrastructure and cultural differences create problems
Logistics and shipping costs have been a growing challenge for US companies looking to move production overseas
Global trade has added strains and charges for all forms of transportation
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Identify 3 problems facing a globally competitive organization regarding Pricing.
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Exchange Rates
Dumping (sale of an exported product as a price lower than that charged for the same product in the home market of the exporter)
Countertrade (all or part of the payment for goods or services is in the form of other goods and services)
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MARK 3321: Test 1