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What is the transactional function of marketing?
Buying & Selling (exchange & promotion process)
What is the logistical function of marketing?
Transporting & storing (material handling & distribution)
What are the facilitating functions of marketing?
- Assorting (6 packs of cereal)
- Sorting (bulk breaking)
- Grading (into quality standard)
- Risk taking (obsolescence, shrinkage, etc)
- Marketing Information
- Quality control & testing
- Financing (to provide credit)
- Aka: A.S.G.R.M.Q.F -> Another sorry graduate reeking marketing questions fuck.
What are marketing tasks and goals?
- Conversional (Aleve, Advil)
- Stimulational (Bayer Aspirin for pain relief and heart attack prevention)
- Developmental (Las Vegas = Sin city, Carlos Santana, diamond shaped Shreddies, Rambo, Expendables, etc)
- Synchromarketing (Summer/Xmas movies, Windows 8 vs Windows 8.1, iPhone vs iPhone 5s)
- Maintenance Marketing
- Demarketing (to limit consumption, Seagrams, Shell Oil, Grand Canyon, overcrowding: Loto Quebec re gambling)
- Counter Marketing (to destroy consumption)
What are the two levels of Marketing? Explain.
Micro - a firm's performance of accomplishing its objectives of providing a correct flow of goods & services.
Macro - a socioeconomic process of directing the flow of supplies to those flows of demand and accomplish the short & long run objectives of society.
What are the two purposes of marketing?
- Attract new clients with superior value
- Keep & grow clients by delivering satisfaction
"...a series of business activities characterized by the flow of products & services from producer to consumer."
This is the old definition of marketing. What's wrong with it?
- a) Needs of the consumer are not defined.
- b) Definition sounds like a strictly distribution activity, which it is not.
- c) Fails to recognize the use & need of marketing by non-profit or non business organizations. (Churches, hospitals, museums, etc.)
What is Kotler's definition of marketing?
A human activity directed at satisfying needs and wants through an exchange process.
What are the marketing concepts? Briefly explain each one.
- Production - affordability and availability.
- Product - quality and innovation.
- Selling - promotion and hard selling.
- Marketing - customer satisfaction and relationships.
- Societal - long-term value to both customer and society.
Explain the production concept.
- Management focus on production and distribution efficiency (ie Economies of Scale)
- - Consumers favor:
- Readily available products.
- Affordable products.
Explain the product concept.
- Consumers favor products offering:
- Highest quality
- Best Performance
- Most innovative features
- i.e "New and improved"
Explain the selling concept.
- Sell what you make
- Typically for unsought goods
- Focus on sales transactions.
- Driven by excess capacity.
- Assumes hard sell customers are satisfied.
Explain the Marketing concept.
- -Focus on customer wants and needs
- -Delivering satisfaction
- More effectively than competition
- More efficiently than competition.
Explain the Societal Marketing Concept.
- - Maintain or improve well-being of consumers and society.
- Focus on customer wants and needs.
- - Delivering satisfaction
- More effectively than competition
- More efficiently than competition
- - Maintains or improves consumers and society's well being.
What form demographics?
- aka: Sorry Dorry, Kansas attacked Saskatchewan Really Openly Oops.
What is demography?
Why is it important?
What do demographic trends include?
- Demography is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.
- It's important because it's focused on people, who make up markets.
- Demographic trends include age, family, structure, geographic population shifts, etc.
What are the limitations of demographics?
- Old or unavailable data.
- Too broad for smaller niches.
- Single factors may not be adequate.
- Psycho-social factors, motives & insights aren't considered.
What are the basic models of behavior?
- (SR) Stimulated Response: Theories deal with drives, cues, responses, and reinforcements.
- Cognitive theories: Assumes that besides S/R reactions, habits can be acquired by insight, thinking and problem solving.
What is strategic planning?
The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities.
What are the elements to a firm's marketing program?
What elements form the marketing mix?
What are the steps to strategic planning?
- Corporate Level
- Defining company mission.
- Setting company objectives and goals.
- Designing the business portfolio.
Planning marketing and other functional strategies
- Business Unit, Product and market level.
What are the functions of a mission statement?
- -Guides people's efforts
- -Understand values
- -Ethical behavior
Focus should be market-oriented, not product oriented)
What does SMART stand for?
- Specific (precise description)
- Measurable (quantitative value to show attainment)
- Attainable (be achievable but challenging)
- Relevant (be pertinent to company mission)
- Time-Based (have a deadline for completion)
What are the three things to consider when making a company mission statement? (A Market-oriented one)
- The mission statement is the organization's purpose, what is wants to accomplish in the larger environment.
-Market-oriented mission statement defines the business in terms of satisfying basic consumer needs.
-A clear mission statement acts as an "invisible hand" that guides people in the organization.
How do you manage the marketing effort?
What is SWOT analysis? What does it stand for?
Explain the management of marketing effort.
- Analysis (SWOT) - To find opportunities, avoid threats, understand strengths, analyze weaknesses.
- Planning - Executive summary, analysis of current objective, targets and positioning, Marketing mix, Budgets.
- Implementation - Process that turns strategy into marketing action.
- Control- Evaluate results of marketing strategy, take corrective action if needed.
What is the control process in detail?
- Set goals
- Measure performance
- Evaluate performance
- Take corrective action
Depict the BCG growth-share matrix.
Explain each portion of the BCG growth-share matrix.
- Star: Red Bull, iPhone, Dell, Amazon.
- Cash cow: Cigarettes, Chapters, McDonalds, Oil.
- ?: Galaxy Tablets, Apple TVs, Blackberry 10.
- Dog: Record albums, VCR, Plasma TV, Blockbuster.
Once a firm has classified it's SBUs, what are its options?
- 1. Build.
- 2. Hold.
- 3. Harvest.
- 4. Divest.
What is a SBU?
Strategic Business Unit. A unit of the company that has a separate mission and objective that can be planned separately from other company business. (Company division, product line within brand, single product or brand.)
What steps should be taken within the BCG matrix?
What are growth strategies? What are the three different kinds?
- 1) Intensive growth
- 2) Integrative growth
- 3) Diversification
Depict Igor Ansoff's growth matrix.
Explain each aspect of the Igor Ansoff's growth matrix.
Market Penetration - growth strategy aiming to increase sales to current market segments without changing the product.
Market development - a growth strategy that identifies and develops new market segments for current products.
Product Development - growth strategy that offers new or modified products to existing markets.
Diversification - Growth strategy that through starting/acquiring businesses outside the company's current markets.
Depict the +s and -s of each segment of the Igor Ansoff's growth matrix.
What are the different types of integrative growth?
- Backwards: Buy up suppliers.
- Forwards: Buy up retailers or someone lower in the channels.
- Horizontal: Buy up competitors.
- Diversification: Conglomerate/ buying up unrelated businesses.
What are the different types of diversification growth?
Concentric: New products for new TM using current technology.
Horizontal: New products for current TM using new technology.
Conglomerate: New products for new TM using new technology.
What are the four types of economies?
Subsistence economies: Most people engage in simple agriculture, consume their output and trade for basic needs, few opportunities for trade.
Raw-Material-Exporting economies: Rich in one or more natural resources, but poor in other needs. Good markets for large equipment and infrastructure, with a small wealthy upper class but a low-income for most of the population.
Industrializing Economies: Manufacturing accounts for 10 to 20% of the economy. Needs raw materials to fuel growing industry, mostly due to favorable labor costs. Good market for increasing middle class.
Industrial economies: Major exporter of manufactured goods., investment funds, technology, expertise.
What are some reasons to enter the international market?
Growth opportunities outside of the domestic market.
As a counterattack against competition at home.
Reduce dependence on existing markets.
Need a larger customer base to achieve economies of scale.
Reasons to enter international market: GARN - Get another rainbow nothing.
What are some factors to consider when going international?
Marketing objections (How many countries? What countries?)
Volume of foreign sales.
Does income distribution affect anything?
Yes. How income is distributed within an economy will influence the size and attractiveness of international markets.
In the political-legal environment, what affects international business?
- Attitude towards international buying.
- Government bureaucracy.
- Political stability.
- Monetary stability.
What is counter-trade?
International trade involving the direct or indirect exchange of goods for other goods instead of cash; includes barter, compensation (buyback) and counter-purchases.
What characteristics are indicators of market potential (in international markets)?
- Demographic characteristics.
- Geographic characteristics.
- Economic factors.
- Technological factors.
- Socio-Cultural factors.
- National goals and plans.
Depict each indicator of market potential (international) in detail.
What are the market entry strategies (international)?
Explain 'Exporting' in the market entry strategies (international)?
Exporting: Entering a foreign market by selling goods produced in the company's home country.
Indirect exporting: Selling through independent, international marketing intermediaries;
Direct exporting: Handling their own exports program, may use local distributors or company personnel. (Simplest way and least risky. Temporary or sustained.)
Explain 'Joint-Venturing' in the market entry strategies (international)?
Joint Venturing: Entering a foreign market by joining with domestic or foreign companies to produce or market products or services.
Licencing: Entering into an agreement with a foreign licensee for the right to a manufacturing process, trademark, etc for a fee or royalty. (Quick entry, more risk of losing control, may be a requirement in markets such as China)
Contract manufacturing: Company contracts with manufacturer in a foreign market to produce the product. Aka: Outsourcing.
Management contracting: Domestic firm supplies (exports) management services to foreign manufacturer.
Joint Ownership: Company joins with investors in a foreign market to create a local business in which they share ownership (more risky due to control and profit sharing issues)
Explain 'Direct Investment' in the market entry strategy (international)?
Direct Investment: Entering a foreign market by developing foreign-based assembly or manufacturing facilities. (Highest commitment, risk, control and potential of market entry strategies) - Political Stability is a major concern, gov. may nationalize industry.
Think globally but act...
Standardize where possible, adapt when necessary.
What are the five options when attempting to make a product/promotion decision for foreign markets?
What are the five factors that affect consumer behavior influences?
What is the buyer's decision process?
What is Maslow's hierarchy of needs?
- Self-Actualizing needs
- Esteem Needs
- Social Needs
- Safety Needs
- Physiological needs
What influences rate of adoption of a product?
- Relative Advantage (CD vs MP3)
- Compatibility (Cells compatible with landline)
- Complexity (Difficulty in using product)
- Divisibility (Try before buy)
- Communicability (Benefit/Enjoyment in using?)
What affects credibility to the communicator?
What is intermarket segmentation?
Intermarket segmentation refers to forming segments of consumers who have similar needs and buying behaviour even though they are located in different countries.
What is product differentiation?
In economics and marketing, product differentiation (or simply differentiation) is the process of distinguishing a product or service from others, to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as a firm's own products.
What is value preposition?
- A business or marketing statement that summarizes why a consumer should
- buy a product or use a service. This statement should convince a
- potential consumer that one particular product or service will add more
- value or better solve a problem than other similar offerings.
What is the requirements to effective segmentation?
- Measurable: The size, purchasing power, profile of segments can be measured.
- Accessible: Segments can be reached.
- Substantial: Profitable.
- Differentiable: Distinguishable and respond different to marketing mix.
- Actionable: Effective programs can be designed for attracting and serving segments.