marketing exam 1

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marketing

Marketing is the activity, institutions, and processes used to create, capture, communicate, deliver, and exchange offerings that have value for customers, clients, partners, and society.

What is marketing mainly about?

Satisfying customer needs and wants.

What is an exchange in marketing?

An exchange occurs when a buyer gives something of value to a seller in return for a product, service, or idea.

the marketing mix

The controllable set of decisions and activities a firm uses to respond to the wants of its target markets

the 4 P’s

product, price, place, promotion

product

Creating value by developing offerings that satisfy customer needs.

price

Everything a buyer gives up in exchange for a product or service.

place

The marketing processes necessary to get the right product to the right customer at the right time.

promotion

Communication by a marketer that informs, persuades, and reminds potential buyers about a product or service.

Who can perform marketing?

Individuals and organizations.

Who does marketing impact?

• Customers

• Supply chain partners

• Employees

• Industry

• Society

What are the various eras of marketing?

• Production Era

• Sales Era

• Marketing Era

• Value-Based Marketing Era

Production Era

Producing products efficiently and making them available to customers.

Sales Era

Convincing customers to buy products through selling and promotion.

Marketing Era

Understanding and satisfying customer needs and wants.

Value-Based Marketing Era

Creating and delivering superior value to customers while building strong relationships.

value

benefits - costs

How do firms become more value driven?

• Build relationships with customers

• Gather and analyze information

• Balance benefits and costs

• Connect with customers through social and mobile media

marketing analytics

Using data and information to understand how, when, why, where, and what people buy.

conscious marketing

Marketing that considers the ethical, social, and societal effects of a company's actions.

What is a marketing strategy?

A marketing strategy identifies:

• The firm's target market

• A related marketing mix

• How the firm will build a sustainable competitive advantage

target market

The specific group of customers that a company chooses to focus its marketing efforts on.

sustainable competitive advantage

An advantage that allows a company to perform better than competitors and is difficult for competitors to copy.

What are the four macro strategies for developing customer value?

• Customer Excellence

• Operational Excellence

• Product Excellence

• Locational Excellence

What does customer excellence involve?

• Retaining loyal customers

• Providing outstanding customer service

operational excellence

• Efficient operations

• Excellent supply chain management

• Strong relationships with suppliers

Product Excellence

Providing products with high perceived value and effective branding and positioning.

locational excellence

Creating a competitive advantage through a good location, especially for retailers and service providers.

marketing plan

A written plan that explains how a company will achieve its marketing goals and create value for customers

What are the five steps?

• Define the Business Mission

• Conduct a Situation Analysis (SWOT)

• Identify and Evaluate Opportunities (STP)

• Implement the Marketing Mix and Allocate Resources

• Evaluate Performance Using Marketing Metrics

business mission

The company's overall purpose and what it wants to accomplish.

SWOT Analysis

S = Strengths
W = Weaknesses
O = Opportunities
T = Threats

strengths

Internal positive factors that give a company an advantage.

weaknesses

Internal negative factors that put a company at a disadvantage.

opportunities

External positive factors that a company can take advantage of.

threats

External negative factors that could hurt the company.

STP

• S = Segmentation

• T = Targeting

• P = Positioning

targeting

Choosing which customer segment(s) the company wants to pursue.

positioning

Creating a clear, distinctive, and desirable image of a product in the minds of target customers compared with competitors.

IMC

Integrated Marketing Communications

components of IMC

• Advertising

• Personal selling

• Sales promotion

• Public relations

• Direct marketing

• Online marketing/social media

marketing metric

A measuring system that quantifies a trend, dynamic, or characteristic.

What can companies use to evaluate performance?

• Performance objectives

• Marketing analytics

• Metrics

• Financial performance metrics

• Portfolio analysis

portfolio analysis

A tool used to evaluate a firm's different products or business units and determine how they should be supported.

Boston Consulting Group (BCG) Matrix

• ⭐ Stars

• ❓ Question Marks

• 🐮 Cash Cows

• 🐶 Dogs

Stars

A product with high market share and high market growth.

Question Marks

A product with low market share but high market growth.

Cash Cows

A product with high market share but low market growth.

Dogs

A product with low market share and low market growth.

four growth strategies

• Market Penetration

• Market Development

• Product Development

• Diversification

Market Penetration

Selling existing products to existing customers/markets.

market development

Taking existing products into new markets

Product Development

Creating new products or services for an existing target market.

diversification

Creating a new product/service for a new market segment.

marketing's greater purpose

Marketing should do more than simply make money. It should create value while considering the effects of business decisions on customers, employees, society, and the environment.

Corporate Social Responsibility (CSR)

A company's responsibility to consider its ethical, social, and environmental impact.

Conscious Marketing vs. CSR

CSR is often an additional activity added to a traditional business, while conscious marketing makes social responsibility part of the company's core purpose and culture.

conscious leadership

Leadership that makes ethical and socially responsible behavior part of the organization's culture and decision-making.

the three phases of integrating conscious marketing

1. Planning

2. Implementation

3. Control

What happens during the Planning Phase?

The company's mission or vision sets the overall tone for conscious marketing.

What happens during the Implementation Phase?

The company puts its conscious marketing plans into action.

What happens during the Control Phase?

The company checks whether its conscious marketing issues were successfully addressed and reacts to changes.

Ethical Decision-Making Framework

• Identify the issues

• Gather information and identify stakeholders

• Brainstorm and evaluate alternatives

• Choose a course of action

Publicity Test

"Would I be okay with this decision appearing on the front page of a newspaper or magazine?"

Moral Mentor Test

"Would the person I admire most engage in this activity?"

Admired Observer Test

"Would I want the person I admire most to see me doing this?"

Transparency Test

Whether you could give a clear, honest explanation of your action and motives to a fair and impartial person.

Person in the Mirror Test

"Will I be able to look at myself in the mirror and respect the person I see?"

Golden Rule Test

"Would I want to be on the receiving end of this action and its consequences?"

five core components of marketing

• Creating value

• Capturing value

• Communicating value

• Delivering value

• Exchanging value