Marketing Fundamentals Practice Flashcards

Complete set of question and answer flashcards generated from the marketing lecture notes.

What is marketing?

The process of creating, communicating, delivering, and exchanging value to satisfy customers and organizational objectives.

What is the marketing concept?

The idea that an organization should identify customer needs and wants, satisfy them better than competitors, and achieve organizational goals.

What is a need?

A basic necessity required for survival or well-being.

What is a want?

A specific product or service that satisfies a need.

What is an example of a need vs. a want?

Need = food. Want = Chick-fil-A.

Does marketing create needs?

Generally, no. Needs are basic human requirements; marketing can influence wants and how people choose to satisfy needs.

What is customer value?

The difference between the benefits a customer receives and the costs of obtaining a product or service.

What are examples of customer costs?

Money, time, effort, transportation, inconvenience, and risk.

What is the basic formula for customer value?

$$\text{Value} = \text{Benefits} - \text{Costs}$$

What is customer satisfaction?

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

What happens when performance is below expectations?

The customer is dissatisfied.

What happens when performance meets expectations?

The customer is satisfied.

What happens when performance exceeds expectations?

The customer may become highly satisfied or delighted.

What is an exchange?

The process of giving something of value to receive something desired in return.

What does a customer typically exchange for a product?

Money, time, or other resources.

What is relationship marketing?

Developing and maintaining long-term relationships with customers.

What is the goal of relationship marketing?

To encourage customer loyalty, repeat purchases, and long-term relationships.

What is utility?

The ability of a product or service to satisfy a need or want.

Is marketing just advertising?

No. Marketing includes product development, pricing, distribution, promotion, research, and relationship building.

What can customer satisfaction lead to?

Repeat purchases, loyalty, positive reviews, and positive word-of-mouth.

What is strategic planning?

The process of creating and maintaining a fit between an organization's objectives/resources and changing market opportunities.

What are three basic questions of strategic planning?

Where are we now? Where do we want to go? How will we get there?

What is a marketing plan?

A written document describing the marketing activities an organization will use to accomplish its objectives.

What are common components of a marketing plan?

Situation analysis, objectives, target market, strategies, marketing mix, implementation, and evaluation/control.

What does SWOT stand for?

Strengths, Weaknesses, Opportunities, Threats.

What are strengths?

Internal advantages or capabilities of an organization.

Give examples of strengths.

Strong brand, skilled employees, loyal customers, and high-quality products.

What are weaknesses?

Internal disadvantages or limitations of an organization.

Give examples of weaknesses.

High costs, poor customer service, limited product selection, and weak brand awareness.

What are opportunities?

External factors that could benefit an organization.

Give examples of opportunities.

Growing markets, new technology, new customer segments, and competitors leaving the market.

What are threats?

External factors that could negatively affect an organization.

Give examples of threats.

New competitors, economic downturns, regulations, and changing consumer preferences.

Which SWOT factors are internal?

Strengths and weaknesses.

Which SWOT factors are external?

Opportunities and threats.

What is a competitive advantage?

An advantage that allows a company to outperform its competitors.

Give examples of competitive advantages.

Lower prices, better quality, strong branding, superior service, faster delivery, or unique technology.

What makes a competitive advantage valuable?

It provides customer value and is difficult for competitors to duplicate.

What is a mission statement?

A statement explaining an organization's fundamental purpose and why it exists.

What should marketing objectives be?

Specific, measurable, attainable, relevant, and time-bound.

What does SMART mean?

Specific, Measurable, Attainable, Relevant, Time-bound.

What is an example of a good marketing objective?

Increase online sales by $15\%$ within the next $12$ months.

What is the BCG growth-market share matrix used for?

Evaluating products or business units based on market growth and relative market share.

What is a Star?

A product with high market share in a high-growth market.

What is a Cash Cow?

A product with high market share in a low-growth market that generates significant cash.

What is a Question Mark?

A product with low market share in a high-growth market.

What is a Dog?

A product with low market share in a low-growth market.

Which BCG category has high market share and high growth?

Star.

Which BCG category has high market share and low growth?

Cash Cow.

Which BCG category has low market share and high growth?

Question Mark.

Which BCG category has low market share and low growth?

Dog.

What is the marketing environment?

The factors and forces that influence an organization's ability to serve customers.

What are the two broad parts of the marketing environment?

Microenvironment and macroenvironment.

What is the microenvironment?

Factors close to the organization that directly influence its ability to serve customers.

What is the macroenvironment?

Larger external forces that affect an organization and the overall market.

What is an easy way to remember micro vs. macro?

Micro = close; Macro = big picture.

What are major components of the microenvironment?

The company, suppliers, marketing intermediaries, customers, competitors, and publics.

Why is the company part of the microenvironment?

Different departments within the company influence marketing decisions.

What are suppliers?

Organizations that provide resources needed to produce goods and services.

How can suppliers affect marketing?

They can affect product quality, prices, availability, and delivery times.

What are marketing intermediaries?

Organizations that help promote, sell, and distribute products to customers.

Give examples of marketing intermediaries.

Wholesalers, retailers, distribution companies, and marketing agencies.

Why are customers important to marketing?

Marketers must understand customers' needs, wants, preferences, and buying behavior.

Why must businesses monitor competitors?

To understand competitors' products, prices, promotions, strengths, and weaknesses.

What is a public?

A group that has an actual or potential interest in, or impact on, an organization's ability to achieve its objectives.

Give examples of publics.

Media, government, financial institutions, local communities, and the general public.

What are the major macroenvironmental forces?

Demographic, economic, sociocultural, technological, environmental/natural, and political/legal forces.

What are demographic forces?

Characteristics of populations, such as age, gender, income, education, occupation, and family structure.

What are economic forces?

Factors affecting consumers' ability and willingness to purchase, such as inflation, unemployment, income, and interest rates.

What are sociocultural forces?

Society's values, beliefs, attitudes, lifestyles, and cultural trends.

What are technological forces?

Changes in technology that create opportunities or threats for businesses.

Give examples of technological forces.

Artificial intelligence, social media, e-commerce, mobile apps, automation, and data analytics.

What are environmental/natural forces?

Factors involving the natural environment and availability of resources.

Give examples of environmental forces.

Climate change, pollution, natural disasters, resource shortages, and sustainability concerns.

What are political/legal forces?

Government actions and laws that affect businesses and marketing.

Give examples of political/legal forces.

Advertising regulations, consumer protection laws, taxes, trade regulations, safety laws, and privacy laws.