Marketing Foundations Lecture Notes

A comprehensive set of question-and-answer flashcards covering core marketing concepts, philosophies, strategic planning tools, ethics, CSR, and external environmental factors from the lecture notes.

What is the broad definition of marketing given in the lecture?

It is the process of exchanging offerings that have value for society at large.

What are the two facets of marketing?

Marketing is both a customer-satisfaction philosophy and an organizational function.

What is the main focus of marketing activities?

Delivering value to customers and building long-term relationships.

Which concept recognizes that all roles in a relationship are intertwined?

The concept of exchange.

How many parties are required for an exchange to occur?

At least two parties.

Give two conditions (other than number of parties) that must exist for an exchange.

Each party must have something of value, be able to communicate and deliver, be free to accept or reject, and desire to deal.

Which marketing philosophy focuses on a firm’s internal capabilities?

Product orientation.

Which orientation assumes aggressive selling will raise profits?

Sales orientation.

What is the core idea behind the marketing concept?

An organization exists to satisfy customer needs while meeting its own objectives.

Which orientation relies on data analysis to deliver superior customer value?

Marketing orientation.

Which philosophy adds society’s best interest to customer value delivery?

Societal marketing orientation.

How is customer value defined in the notes?

The relationship between benefits received and the sacrifices made to obtain them.

Name the four elements of customer value.

Functional, emotional, life-changing, and social-impact value.

What does customer satisfaction measure?

The degree to which a product meets or exceeds customer expectations.

What strategy centers on keeping and improving customer relationships?

Relationship marketing.

Name one of the four pillars on which relationship marketing strategies depend.

Customer-oriented personnel, effective training programs, teamwork, or empowered/critical-thinking employees.

What is employee empowerment in marketing?

Granting employees authority to make decisions and take risks that enhance company success.

How does teamwork benefit a company according to the lecture?

It boosts job performance, company performance, customer satisfaction, and product value.

How do market-oriented businesses define their business?

In terms of the benefits customers seek, not just the goods or services produced.

Why is targeting the “average customer” considered a fallacy?

Few customers fit an average profile; different segments have different needs.

List the four steps of Customer Relationship Management (CRM).

Organize around consumer demographics, track interactions, foster satisfaction, and link processes from customer to supplier.

What term describes interpreting large, meaningful data sets for insight?

Big Data.

What is on-demand marketing?

Providing digital and physical experiences across all touchpoints during the buying process.

What is the primary goal of a sales-oriented business?

To generate profit through high sales volume.

List the three ways market-oriented firms seek profits.

Creating customer value, providing satisfaction, and building long-term relationships.

Promotion is only one of how many marketing mix decisions?

Four decisions.

What are the four P’s of the marketing mix?

Product, Place (distribution), Promotion, and Price.

Define strategic planning in marketing.

Balancing resources, objectives, and opportunities for long-term profitability and growth.

What two fundamental questions does strategic planning address?

1) What is the organization’s main activity at a given time? 2) How will it reach its goals?

What is a Strategic Business Unit (SBU)?

A subgroup within a larger organization with its own mission, resources, competitors, and plans.

In Ansoff’s matrix, which strategy seeks bigger share among current customers?

Market penetration.

Which Ansoff strategy aims to attract new customers to existing products?

Market development.

Which Ansoff strategy develops new products for current markets?

Product development.

Which Ansoff strategy creates new products for new markets?

Diversification.

Name the three categories in the Innovation Matrix.

Core innovation, adjacent innovation, and transformational innovation.

In the BCG matrix, what is a fast-growing market leader called?

A Star.

Which BCG category generates excess cash for the firm?

Cash Cow.

Which BCG classification grows fast but has poor margins?

Problem Child (Question Mark).

What is a low-growth, low-share SBU called in the BCG model?

Dog.

Give one strategic action a firm can take after classifying SBUs.

Build, Hold, Harvest, or Divest the unit.

What is marketing myopia?

Defining a business by its products rather than the benefits customers seek.

What does SWOT stand for?

Strengths, Weaknesses, Opportunities, and Threats.

What is environmental scanning?

Collecting information about external forces that may impact the marketing plan.

Name one of the three broad types of competitive advantage.

Cost, product/service differentiation, or niche.

What is a cost competitive advantage?

Being the low-cost producer while maintaining satisfactory margins.

Which curve shows predictable cost declines with accumulated experience?

The experience curve.

Give two methods (besides experience curves) for reducing costs.

Efficient labor, no-frills services, subsidies, product design, reengineering, production innovation, or new delivery methods.

What is product/service differentiation advantage?

Offering something unique and valuable beyond a low price.

If a firm effectively serves a small, defined segment, what advantage is this?

Niche competitive advantage.

Define sustainable competitive advantage.

An advantage that competitors cannot easily copy or imitate.

What three steps must a rival complete to imitate an advantage?

Identify it, learn how it is achieved, and determine how to duplicate it.

Give one characteristic of a well-written marketing objective.

Realistic, measurable, time-specific, comparable to a benchmark, and motivating.

What does MOA stand for, and what does it do?

Market Opportunity Analysis; it assesses the size and potential of segments plus key competitors.

Name the three approaches to selecting target markets.

One mix for the whole market, single-segment concentration, or multiple mixes for multiple segments.

Which marketing mix element is usually the most flexible?

Price.

List two intangible elements included in the product concept beyond the physical item.

Package, warranty, after-sale service, brand name, company image, or overall value.

What is implementation in marketing planning?

Turning the marketing plan into specific, actionable assignments.

Give one requirement for effective implementation.

Delegating authority, setting time frames, allocating resources, or ensuring good communication.

What is the purpose of a marketing audit?

A thorough, periodic, independent review of a firm’s entire marketing performance.

Name the four qualities of a marketing audit.

Comprehensive, independent, systematic, and periodic.

In civil society, what are behavioral norms?

Standards of acceptable behavior used to regulate conflict.

How do ethics differ from laws in business?

Ethics are moral principles guiding conduct; laws are enforceable standards that may not match ethics.

Name one ethical theory discussed in the notes.

Deontological, utilitarian (act or rule), casuist, moral relativism, or virtue ethics.

What does FCPA stand for, and what does it ban?

Foreign Corrupt Practices Act; it bans bribery of foreign officials to gain business advantage.

What is a code of ethics?

A written guideline to help employees make ethical decisions and recognize acceptable practices.

Define Corporate Social Responsibility (CSR).

A business’s concern for social welfare in addition to profit.

List the four layers of the CSR pyramid.

Economic, legal, ethical, and philanthropic responsibilities.

Which theory says firms must consider the interests of all affected parties?

Stakeholder theory.

What is green marketing?

Marketing efforts aimed at reducing environmental harm or creating positive environmental impact.

Define cause-related marketing.

Cooperative marketing between for-profit and non-profit organizations for mutual benefit.

What profitability rule about customers is cited in the notes?

Roughly 20% of customers generate 80% of profits.

What is demography?

The study of people’s vital statistics such as age, race, gender, and location.

Why do consumers purchase brands that reflect their values?

To express personal attitudes, lifestyles, and identities.

Define diversity, equity, and inclusion (DEI) in business.

Diversity: representation of different groups; Equity: fairness of processes/resources; Inclusion: actively involving diverse individuals.

What is purchasing power?

Disposable income minus cost of living—ability to buy standard goods.

What is inflation?

A decrease in money’s value compared with the previous year, resulting in higher prices.

Define recession.

A period of declining economic activity and reduced demand for goods and services.

Differentiate basic research from applied research.

Basic research confirms existing theory; applied research develops new or improved products.

List the four stages of technological disruption cited.

New tech appears, begins disrupting, industry reaches a turning point, firms must fully embrace the change.

Name one federal regulatory agency relevant to marketing.

CPSC, CFPB, FTC, or FDA.

What is the main goal of the Federal Trade Commission (FTC)?

To prevent unfair methods of competition.

Within the FTC, which bureau focuses on consumer protection?

The Bureau of Consumer Protection.

Give two key competitive factors a firm must monitor.

Number of competitors, relative size, degree of interdependence, market-share battle, or global competition.

What is environmentalism, as defined in the notes?

Concern and action aimed at preserving, restoring, and improving the environment.