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What's the definition of marketing?
The process of creating, distributing and promoting and pricing goods, services and ideas to facilitate satisfying exchanges with customers and develop and maintain favorable relationships with stakeholders in a dynamic environment.
Needs, wants and demands-- what are the differences?
Need- is an imbalance between the actual state and the desired state
Want- a need shaped by your culture and personality
Demand- backed by money (can you afford it?)
What are the different stages in Maslow's Hierarchy of Needs model?
Maslow's Hierarchy of Needs (from base to top) Physiological (base needs)--> Safety --> Social (be accepted by the group) --> Esteem (feel accomplished) --> Self Acutalization
How do customers determine value? (Value-Driven Marketing)
A customer's subjective assesment of benefits relative to costs in determining the worth of a product. Customer value = customer benefits - customer costs.
What is an exchange and why do we engage in this activity?
An exchange is the provision or transfer of goods, services or ideas in return for something of value. We engage in this activity because it's the most efficient.
What are the components of the marketing mix ( 4 Ps) and what activities or decisions occur in each area?
- Product- customer needs and wants
- Price- the cost
- Place- convenience
What are the differences among the alternative types of products?
A good is a physical entity you can touch. A service is the application of human and mechanical efforts to people or objects to provide intangible benefits to customers. Ideas include concepts, philosophies, images and issues.
What is marketing management?
It is the process of planning, organizing, implementing, and controlling marketing activities to facilitate exchanges effectively and efficiently.
What are the four marketing philosophies and their assumptions?
Production Orientation- the D > S, since the demand is higher you want to produce as much as possible.
Product Orientation- Higher price, you want quality not needs.
Sales Orientation- S > D, supply is greater than demand so firms have to really "sell" their product.
Marketing Orientation- an organizationwide commitment to researching and responding to customer needs.
What are the steps in the strategic planning process?
Assessing Organizational Resources and Opportunities --> Organizational Missions and Goals --> Corporate and business-unit strategies
Define core competency,competitive advantage, market opportunity and strategic window.
Core Competency- things a firm does extremely well, which sometimes give it an advantage over its competition.
Competitive Advantage- the result of a company's matching a core competency to opportunities in the market place.
Market Opportunity- a combination of circumstances and timing that permits an organization to take action to reach a target market.
Strategic Window-temporary periods of optimal fit between the key requirements of a market and a firm's capabilities.
What are the components of a SWOT analysis?
Strengths- refers to competitive advantages or core competencies that give the firm an advantage in meeting the needs of its target markets.
Weaknesses- refers to any limitations that a company faces in developing or implementing a marketing strategy.
Opportunities- refer to the favorable conditions in the environmnet that could produce rewards for the organization if acted out properly.
Threats- refer to conditions or barriers that may prevent the firm from reaching its objectives.
What is a marketing myopia?
A marketing myopia is when firms focus on the products rather than the customers.
What are the two primary question to be answered in a mission statement?
Who are our customers?
What is our core competency?
What are the qualities of "good" objectives?
1) A marketing objective needs to be expressed in clear, simple terms. 2) An objective should be written. 3)A marketing objective should specify a time frame for its accomplishment. 4) a marketing objective needs to be consistent with both business-unit and corporate strategy.
What is a strategic business unit?
A division, product line or other profit center within a parent company.
What are the components of the growth-share matrix?
Stars- are products with a dominant share of the market and good propects for growth. Use more cash than they generate finance growth.
Cash Cows-have a dominant share of the market but low prospects for growth.
Dogs- have a subordinate share of the market and low prospects for growth.
Question Mark- have a small share of a growing market and generally require a large amount of cash to build market share.
What are the different types of competition?
Monopoly-exists when an organization offers a product that has no close substitutes, making that organization the sole source of supply.
Oligopoly-exists when a few sellers control the supply of a large proportion of a product.
Mopolistic competition-exists when a firm with many potential competitors attempts to develop a marketing strategy to differentiate its product.
Pure Competition-is where a large number of sellers who cannot significantly influence the price or supply.
What are the different types of competition?
Brand Competition- is when firms market products with similar features and benefits to the same customers at similar prices.
Product Competition-is when firms compete in the same product class but market products with different features, benefits and prices.
Generic Competition-is when firms that provide very different products but provide products that solve the same basic customer need or problem.
Total budget competition- is when firms compete for the limited financial resources of the same customers.
What are the four primary reasons that laws that affect business exist?
- To protect companies from each other.
- To protect consumers
- To protect society
What are the steps in the market research process?
- 1. Locating and defining issues or problems
- 2. Designing the research project
- 3. Collecting data
- 4.Interpreting research findings
- 5. Report research findings
What are the two types of research?
Exploratory- research conducted to gather more information about a problem or to make a tentative hypothesis more specific.
Conclusive Research- is designed to verify insights through an objective procedure to help marketers in making decisions. Descriptive research is research conducted to clarify characteristics of certain phenomena and thus solve a particular problem. Experimental research is research that allows marketers to make causal inferences about relationships.
What is primary and secondary data?
Primary data are observed and collected directly from respondents. Secondary data are compiled both inside and outside the organization for some purpose other than the current investigation.
What are the five steps in the consumer buying decision process?
Problem Recognition -->Information search -->Evaluation of Alternatives --> Purchase --> Postpurchase evaluation
What are the two types of information search?
Internal search- an information search in which buyers search their memories for information about products that might solve their problem.
External search- an information search in which buyers seek information from outside sources.
What is cognitive dissonance and how do marketers minimize it?
Cognitive dissonance is postpurchase doubts in the buyers mind about the product. Marketers contact recent purchasers to make sure they are satisfied with their buy.
What are the psychological influences on the buying decision process?
- Perception- is the process of selecting, organizing and interpreting information inputs to produce meaning.
- Motive- is an internal energizing force that orients a person's activities toward satisfying needs or achieving goals.
- Learning- refers to changes in a person's thought processes and behavior caused by information and experience.
- Attitude-is an individual's enduring evaluation of, feelings about, and bahvorial tendencies toward an object or idea.
- Personality- is a set of internal traits and distinct behavioral tendencies that result in consistent patterns of behavior in certain situations.
- Lifestyles-an individual's pattern of living expressed through activities, interests and opinions.