marketing ch 1 +2 quiz

Define marketing in your own words and explain its main goal.

• the practice of engaging consumers and managing profitable customer relationships.

• the goal is to maximize long term profitability by creating value for customers

Give an example of a need, a want, and a demand.

needs: things you cant live without — food, water, shelter, clothes, etc

wants: shaped by cultural and individual personalities

demands: wants that are backed by buying power/ ability to purchase

market offerings

• combination of products, services, solutions, and experiences offered to a market to satisfy needs and wants

value and satisfaction

• customer will begin to form expectations of a product while markets have to set the right amount of expectations

True/False: “Exchanges in marketing always involve money.” Explain your answer

false, they build relationships by consistently delivering superior value, therefore it does not involve money because if the customer really likes the product, they willingly will spend money to get it.

customer-Value driven mkt strategy — how does this go?

ask what is your target mkt/ how can the company serve their company best?

first you divide the market (mkt segmentation)

then choose what segments to pursue (target marketing)

it isnt about serving everyone, because serving all customers does not mean you’re serving them well

production concept

focuses on efficiency in production and distribution, but this can lead to market myopia

product concept

customers prefer quality and innovative products, focusing on product improvement

selling concept

using aggressive sales tactics, customers like when products are heavily advertised

marketing concept

meeting customers needs profitability

societal marketing concepts

sustainable and considers society’s well being

what are the 4 p’s of marketing?

• Price - the amt customers pay which can be adjusted 

• Place - how products reach consumers 

• Product -  the company’s offering to the market/their good or service 

• Promotion - communicating product benefits and persuading their purchases 

Which pricing strategy (penetration, skimming, psychological) would you use for a new luxury smartwatch and why?

The best choice is Skimming Pricing.

• Reason: Luxury products attract customers who are willing to pay a premium for exclusivity, innovation, and brand prestige. Skimming allows the company to set a high initial price, recover development costs quickly, and signal status/quality.

• Later, prices can gradually decrease to reach more price-sensitive customers without damaging the luxury image.

Why not penetration? That strategy lowers prices to build market share, but it risks cheapening the brand image.
Why not psychological only? While pricing at $999 instead of $1,000 helps perception, the overall strategy for luxury relies on skimming

customer engagement marketing

making the brand meaningful, and a talkable part of a customers life

customer brand advocacy

satisfied customers initiate favorable interactions with others about the brand

customer generated marketing

customers help shape their own brand experience

partner relationship mgmt

working inside and outside the company to engage and bring more value to their customers

globalization

businesses face global competition and opportunities, therefore they think about sourcing, selling, and designing products worldwide

ex: apple making iphones outside of the US, gives them the ability to sell in other places of the world as well.

strategic planning

developing and maintaining a profitable strategic fir between an orgs goals and capabilities

mission statement

the company/orgs purpose and what they want to accomplish at a larger scale

business portfolio

a catalog of all of the products a company sells.

includes the business strengths and weaknesses.

Boston Consulting Group Model (BCG)

companies classify all of their SBU’s (strategic business units) according to their growth-share matrix

stars: high growth, high share business products

cash cows: low growth, high share products that requires less investment

question marks: low share business units in high growth markets

dogs: low growth, low share

product/market expansion grid (ansoff)

portfolio planning took for identifying growth opportunties, market penetration, product development, and diversification

mkt penetration

growth by increasing sales of current products to current markets w/o changing the product.

mkt development

identifying and developing new market segments for current company products

product development

growth by offering modified or new products to current mkt segments

diversification

growth by starting up new businesses outsid the company’s current products and markets

marketing strategy

plan the company uses to give customers value and build relationships with them

market segmentation

dividing a market into a distinct group of buyers who have different needs or characteristics or behaviors that require different mktg strategies

market targeting

evaluating each market segments attractiveness

positioning

arranging for a product to occupy a clear distinct and desirable place relative to competing products

differentiation

differing the company’s market offering to create superior customer value relative to the competition

companies manage marketing effectively through what key 5 functions?

analysis, planning, implementation, and organization

SWOT Analysis

strengths, weaknesses, opportunities, threats

functional organization

activities led by specialiats (sales, advertising, digital media)

Geographic organization

teams in regions, countries, etc

operating control

monitors peformance, assessing sales and profits, product/channel performance

strategic control

ensures long term strategies align with opportunities