Marketing Units 1 and 2

Marketing Concept

Using the needs of customers as the primary focus during the planning , production, pricing, distribution, and promotion of a product or service.

Market

Description of a unique group of prospective customers a business wants to serve and their location.

Marketing

creation and maintenance of satisfying exchange relationships.

Marketing Mix

blending of four marketing elements—product, distribution, price, and promotion—by the business.

Product

anything offered to a market by the business to satisfy needs, including physical products, services, and ideas.

Distribution (Place)

anything offered to a market by the business to satisfy needs, including physical products, services, and ideas.

Price

amount that customers pay and the methods of increasing the value of the product to the customers.

Promotion

includes the methods used and information communicated to encourage customers to purchase and to increase their satisfaction.

Relationship Marketing

focuses on developing loyal customers who continue to purchase from the business for a long period of time.

Specialization of Labor

Concentrating on one thing or a few related activities.

Merchandising

Offering products produced or manufactured by others for sale to customers. Retailers and whole- salers are examples.

Strategic planning:

is the process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities.

CVS Health engaged in strategic planning when it:

decided to no longer sell tobacco products in its stores.

Which of the following statements is true of a strategic business unit (SBU)?

It has control over its resources.

LG, a South Korean electronics company, has four divisions: Home Entertainment, Mobile Communications, Home Appliance & Air Solution, and Vehicle Components. In order for each of these divisions to be considered strategic business units, which of the following must be true?

Each division plans independently of the others.

In the context of Ansoff's strategic opportunity matrix, which of the following statements is true of the market penetration alternative?

It tries increase market share among existing customers.

According to Ansoff's strategic opportunity matrix, _ means attracting new customers to existing products.

market development

According to Ansoff's strategic opportunity matrix, a company is most likely to be using a market development strategy when

it sells existing products to new and existing buyers.

According to Ansoff's strategic opportunity matrix, a product development strategy entails

creating new products for present markets.

According to Ansoff's strategic opportunity matrix, _ is a strategy of increasing sales by introducing new products into new markets.

diversification

The _ classifies each strategic business unit (SBU) by its present or forecast growth and market share.

portfolio matrix

When a business asks "What business are we in?" they are:

defining their business mission.

A company that suffers from marketing myopia:

defined their business in terms of goods and services rather than in terms of the benefits customers seek.

SWOT analysis stands for:

Strengths, Weaknesses, Opportunities, Threats

Collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan is called:

environmental scanning.

When a firm provides something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition, a _ exists.

product/service differentiation competitive advantage

Which of the following statements is true of a competitive advantage based on product/service differentiation?

It is relatively longer lasting than cost competitive advantages.

Which of the following factors leads to a product/service differentiation competitive advantage?

Providing product with uniqueness

Carefully stated objectives serve all of the following functions except:

allow managers to set ambiguous goals with room for adjustment.

Which of the following statements refers to the target market strategy?

Target markets can be selected by appealing to the entire market with one marketing mix.

Which of the following is an example of a market segment?

A group of individuals aged between 60 and 75 years

Which of the following statements is true of a market opportunity analysis?

It is used to identify the market segments a company needs to focus on.

If a target market is international, _.

political structures affecting the market plan should be described

In the context of the marketing mix, distribution strategies are concerned with

making products available when and where customers want them.

In the context of the marketing mix, the goal of distribution strategies is to

ensure that products arrive in usable condition at designated places when needed.

In the context of the marketing mix, which of the following statements is true of promotion?

It includes advertising, public relations, and personal selling.

In the context of the marketing mix, _ is often the most flexible of the four Ps—the quickest element to change.

price

__ provides the mechanisms for evaluating marketing results in light of the plan's objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines.

control

All of the following are reasons for failing to achieve a marketing objective except:

objectives were too specific.

Which of the following is not true about effective strategic planning?

Strategic planning should be done on a yearly basis.