Marketing Quiz (Ch.1, Ch.2, Ch.18, Ch. 4)

What is Marketing?

The set of strategies and activities by which companies acquire and engage customers, build strong customer relationships, and create superior customer value in order to capture value from customers in return.

Marketing Process

1. Understand the marketplace and customer needs and wants

2. Design a customer value-driven marketing strategy

3. Construct an integrated marketing mix that delivers superior value

4. Engage customers, build profitable relationships, and create customer delight

5. Capture value from customers to create profits and customer equity

(MP #1) Understand the marketplace and customer needs and wants

1. customer needs, wants, and demands

2. market offerings (products, services, and experiences)

3. value and satisfaction

4. exchanges and relationships

5. markets

(MP #2) Design a customer value-driven marketing strategy

• Marketing involves choosing target markets and building profitable relationships with them. The marketing manager must acquire, engage, keep, and grow target customers by creating, delivering, and communicating superior customer value.

• To design a winning marketing strategy, the marketing manager must answer two important questions: What customers will we serve (what’s our target market)? And how can we serve these customers best (what’s our value proposition)?

(MP #3) Construct an integrated marketing mix that delivers superior value

where a company develops and implements a marketing program by coordinating various marketing tools—the marketing mix, the Four Ps (Product, Price, Place, and Promotion)—to create a cohesive strategy that provides exceptional customer value, fosters engagement, and achieves marketing objectives. 

(MP #4) Engage customers, build profitable relationships, and create customer delight

involves actively interacting with customers, fostering their loyalty through excellent customer experiences and services, which ultimately leads to repeat business and a positive return on investment for the company

(MP #5) Capture value from customers to create profits and customer equity

describes the final stage of the marketing process, where a company earns revenue, market share, and profits by creating superior value for satisfied, loyal customers.

Integrated Marketing Mix

The effects of various combinations of marketing-mix elements on important outcomes.

4 P's of Marketing

Product, Price, Place, Promotion

Exchange

The act of obtaining a desired object from a person or an organization by offering something in return

Strategic Planning

The process of developing and maintaining a profitable strategic fit between the organization's goals and capabilities and its changing marketing opportunities.

Mission

A statement of the organization's purpose—what it wants to accomplish in the larger environment.

Net Return on Marketing Investment

AKA (marketing ROI) is the net return from a marketing investment divided by the costs of the marketing investment. It measures the profits generated by investments in marketing activities.

PESTLE Analysis

Analysis of the external political, economic, social, technological, legal, and environmental factors affecting a business

SWOT Analysis

An overall evaluation of the company's strengths (S), weaknesses (W), opportunities (O), and threats (T).

Portfolio Analysis

The process by which management evaluates and plans for the future of the products and businesses that make up the company.

BCG Matrix

a means of evaluating strategic business units on the basis of (1) their business growth rates and (2) their share of the market. (stars, cash cows, question marks, dogs)

Ansoff's Matrix

a model used to show the degree of risk associated with the four growth strategies of market penetration, market development, product development and diversification

Market Penetration

a marketing strategy that tries to increase market share among existing customers

Market development

a marketing strategy that entails attracting new customers to existing products

Product Development

a marketing strategy that entails the creation of new products for present markets

Diversification

a strategy of increasing sales by introducing new products into new markets

Contents of a Marketing Plan

1) Executive summary 2) Current marketing situation 3) Threats and opportunities analysis (SWOT) 4) Objectives and issues 5) Marketing strategy 6) Execution programs 7) Budgets 8) Controls

Competitive strategies

Overall cost leadership: when a company works hard to achieve the lowest production and distribution costs

Differentiation: The company concentrates on creating a highly differentiated product line and marketing.

Focus: Company focuses its effort on serving a few market segments well rather than going after the whole market.

Competitive positions

Market leader, market challenger, market follower, market niche

Market leader

the firm in an industry with the largest market share

Market challengers

a runner-up firm that is fighting hard to increase its market share in an industry

Market follower

a runner-up firm that wants to hold its share in an industry without rocking the boat

Market nichers

A firm that serves small segments that the other firms in an industry overlook or ignore

Blue ocean strategy

An approach where firms seek to create and compete in uncontested "blue ocean" market spaces, rather than competing in spaces and ways that have attracted many, similar rivals.

Customer insights

Deep understandings of customers' stated and unstated needs and wants that become the basis for creating enduring customer value, engagement, and relationships

Primary data

information collected for the specific purpose at hand

Secondary data

information that already exists somewhere, having been collected for another purpose

Primary data collection approach

research approaches, contact methods, sampling plan, research instruments

Marketing research

The systematic design and execution of initiatives to collect, analyze, and report data, information, and insights relevant to a specific marketing situation facing an organization.

Developing the marketing research plan

1. Management problem

2. Research objectives

3. Information needed

4. How results will help management decisions

5. Budget

Sample types

probability and nonprobability

Probability sample

a sample in which every element in the population has a known statistical likelihood of being selected (simple random sample, stratified random sample, cluster (area) sample)

Nonprobability sample

any sample in which little or no attempt is made to get a representative cross-section of the population (convenience sample, judgment sample, quota sample)

Social listening

the process of tracking, analyzing and responding to conversations about specific topics online

CRM (customer relationship management)

managing detailed information about individual customers and using the information to carefully manage customer touch points to maximize customer loyalty

Creating strong surveys - survey designs

Bias & how to avoid bias