Marketing Exam I

Card Set Information

Marketing Exam I
2011-09-20 13:55:49

Vocabulary For First Exam
Show Answers:

  1. Marketing
    an organizationl function and a set of processes for creating, capturing, communicating, and delivering VALUE to customers and for managing customer relationships in ways that benefit the organization and its stakeholders
  2. Marketing Plan
    a written document composed of an analysis of the current marketing situation, opprotunities and threats for the firm, marketing objectives and strategy specified in terms of the four P's, action programs, and projected or pro forma income and other financial statements
  3. Exchange
    the trade of things of value between the buyer and the seller so that each is better off as a result
  4. Core Aspects of Marketing
    • 1. Create Value
    • 2. Occurs in many settings
    • 3. Can be performed by both individuals and organizations
    • 4. Requires product, price, place, and promotion (4 Ps) decisions
    • 5. Entails an exchange
    • 6. Is about satisfying customer needs and wants
  5. The Marketing Mix (4 P's)
    • Product
    • Price
    • Place
    • Promotion

    The controllable set of activites that a firm uses to respond to the wants of its target members
  6. Goods
    Items that can be physically touched
  7. Service
    Any intangible offering that involves a deed, performance, or effort that cannot be physically possessed; intangible customer benefits that are produced by people or machines and cannot be seperated from the producer
  8. Ideas
    Intellectual concepts-thoughts, opinions, and philosophies
  9. B2C (Business to Consumer) Marketing
    The process in which businesses sell to consumers
  10. B2B (Business to Business) Marketing
    The process of selling merchandise or services from one business to another
  11. C2C Marketing
    The process in which consumers sell to other consumers
  12. Value
    Reflects the relationship of benefits to costs, or what the consumer gets for what he or she gives
  13. Value Co-Creation
    A method of providing additional value by offering the opportunity for consumers to act as collaborators in creating the product or service
  14. Transactional Orientation
    regards the buyer-seller relationship as a series of individual transactions, so anything that happened before or after the transaction is of little importance
  15. Relational Orientation
    A method of building a relationship with customers based on the philosophy that buyers and sellers should develop a long term relationship
  16. Customer Relationship Management (CRM)
    A business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm's most valued customers
  17. Supply Chain
    The group of firms that make and deliver a given set of goods and services
  18. Marketing Strategy
    A firm's target market, marketing mix, and method of obtaining a sustainable competitive advantage
  19. Sustainable Competitive Advantage
    Something the firm can persistently do better that its competitors
  20. Customer Excellence
    Involves a focus on retaining loyal customers and excellent customer service
  21. Operational Excellence
    Involves a firm's focus on efficient operations and excellent supply chain management
  22. Product Excellence
    Involves a focus on achieving high quality products; effective branding and positioning is key
  23. Marketing Plan
    A written document composed of an analysis of the current marketing situation, opportunities, and threats for the firm, marketing objectives and strategy specified in terms of the four P's, action programs, and projected or pro forma income (and other financial) statements
  24. Planning Phase
    • When marketing executives :
    • 1. define the mission or vision of the business
    • 2. evaluate the situation by assessing how various players, both inside and outside the organization, affect the firm's potential for success
  25. Implementation Phase
    • When marketing managers:
    • 1. identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning (STP)
    • 2. implement the marketing mix using the four P's
  26. Control Phase
    When managers evaluate the performance of the marketing strategy and take any necessary corrective actions
  27. Mission Statement
    • A broad description of a firm's objectives and the scope of activities it plans to undertake; attempts to answer 2 main questions:
    • What type of business is it?
    • What does it need to do to accomplish its goals and objectives
  28. 3 Phases of the Marketing Plan
    • Planning Phase
    • Implementation Phase
    • Control Phase
  29. Situational Analysis
    • 2nd step in the marketing plan
    • uses SWOT analysis that assesses both the internal environment with regard to its STRENGTHS and WEAKNESSES and the external environment in terms of its OPPORTUNITES and THREATS
  30. STP
    The process of segmentation, targeting, and positioning that firms use to identify and evaluate opportunities for increasing sales and profits
  31. Market Segment
    A group of consumers who respond similarly to a firm's marketing efforts
  32. Marketing Segmentation
    The process of dividing the market into groups of customers with different needs, wants, or characteristics-who therefore might appreciate products or services geared especially for them
  33. Target Marketing/Targeting
    The process of evaluating the attractiv eness of various segments and then deciding which to persue as a market
  34. Market Positioning
    Involves the process of defining the marketing mis variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products
  35. Product
    anything that is of value to a consumer and can be offered through a voluntary marketing exchange
  36. Cost- Based Pricing
    A pricing strategy that involves first determining the costs of producing or providing a product and then adding a fixed amount above that total to arrive at the selling price
  37. Competitor-Based Pricing
    A strategy that involves pricing below, at, or aboe cometitor's offerings
  38. Value-Based Pricing
    A pricing stratedy that involves first determining the percieved value of the product from the customer's point of view and then pricing accordingly
  39. Strategic Business Unit (SBU)
    A division of the firm itself that can be managed and operated somewhat independently from other divisions and may have a different mission or objectives
  40. Product Lines
    Groups of associated items, such as those that consumers use together or think of as part of a group of similar products
  41. Market Share
    Percentage of a market accounted for by a specific entity
  42. Relative Market Share
    A measure of the product's strength in a particular market, defined as the sales of the focal product divided by the sales achieved by the largest firm in the industry
  43. Market Growth Rate
    The annual rate of growth of the specific market in which the product competes
  44. Market Penetration Strategy
    A growth strategy that employs the existing marketing mix and focuses the firm's efforts on existing customers
  45. Market Development Strategy
    A growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international
  46. Product Development Strategy
    A growth strategy that offers a new product or service to a firms current target market
  47. Diversification Strategy
    A growth strategy whereby a firm introduces a new product or service to a market segment that it does not currently serve