MKT 3013 Exam 1 Melissa Moore

What is the population of the world?

8 billion

What is the population of the US?

336 million

What is marketing in 3 words?

Satisfying customer needs

What is marketing in 23 words?

The process by which companies engage customers, build strong relationships, and create customer value in order to capture value from customers in return

What is marketing in 5 boxes?

1. Understand customer needs, 2. Design a customer driven marketing strategy, 3. Construct an integrated marketing program, 4. Engage customers, build profitable relationships, and create customer delight, 5. Capture value from customers to create profits

Which of the 5 boxes of the marketing process create customer value?

The first 4

Which of the 5 boxes capture customer value?

The last one

what is marketing?

the process by which companies engage customers, build strong relationships, and create customer value in order to capture value from customers in return

Needs

states of felt deprivation

Wants

the form human needs take as they are shaped by culture and individual personality

Demands

wants backed by buying power

Marketing offerings

some combination of products, services, information, or experiences offered to a market to satisfy a need or want

Marketing myopia

the mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by the products

Satisfaction

feelings of pleasure or disappointment resulting from comparing a product's perceived performance in relation to expectations

Exchange

the act of obtaining a desired object from someone by offering something in return

Strong relationships

they are built by consistently delivering superior customer value

Marketing management

the art and science of choosing target markets and building profitable relationships with them

the five marketing management orientations?

production concept, product concept, selling concept, marketing concept, and societal marketing concept

examples of the production concept?

available and affordable

examples of the product concept?

quality, performance, and features

examples of the selling concept?

large scaling selling and promos

examples of the marketing concept?

needs and wants of customers

examples of the societal marketing concept?

needs and wants plus society

Value proposition

the set of benefits or values it promises to deliver to consumers to satisfy their needs

The production concept

says consumers will favor products that are available and affordable

The product concept

says consumers will favor products that offer the most in quality, performance, and innovative features

The selling concept

says consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort

The marketing concept

says achieving organizational goals depends of knowing needs and wants of target markets and delivering the desired satisfactions better than competitors do

The societal marketing concept

questions whether the marketing concept overlooks possible conflicts between consumer short-run wants and consumer long-run welfare

What is the difference between the selling and marketing concepts?

The selling concept takes and inside-out view that focuses on existing products, whereas the marketing concept takes an outside-in view that focuses on satisfying customers needs

What is CRM?

The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

What is the difference in relationship marketing versus transactional?

Transactional marketing is about acquiring while relationship marketing is about acquiring and retaining

What are the 4 bonds or attachments to build a relationship?

Basic relationships, low-margin customers, full partnerships, and high-margin customers

Consumer-generated marketing

consumers themselves play roles in shaping their own brand experiences and those of others

What is CLV?

The value of the entire stream of purchases a customer makes over a lifetime of patronage

Summary of Stew Leonard

based on area averages, he saw $50,000 of CLV walk out of his store when he saw a dissatisfied customer. So he added costumed characters, scheduled entertainment, a petting zoo, and other items to keep customers coming back

Customer equity

the total combined customer lifetime values of all of the company's current and potential customers

Does customer equity relate to CLV?

Yes

what is shared value?

recognizes the societal needs, not just economic needs, define markets. it is creating economic value that creates value for society.

What are the four different customer relationship groups?

Butterflies (high short), True Friends (high long), Strangers (low short), Barnacles (low long)

what is strategic planning?

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

Steps in Strategic planning process

defining the company mission, setting company objectives and goals, designing the company portfolio, planning marketing and other functional strategies

Strategic planning and what are the steps?

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

Mission statement

a statement of the organization's purpose - what it wants to accomplish in the larger environment

Market-oriented

defined in terns of satisfying basic customer needs

Product oriented

focused on the product

an example of market and product oriented?

with Starbucks, selling coffee and snacks in product oriented while selling the Starbucks experience is the market oriented

What is a Business portfolio?

Collection of businesses and products that make up the company

Portfolio analysis

management's evaluation of the products and businesses that make up the company

SBU

strategic business unit

BCG and its quadrants

evaluates a company's SBUs in terms of market growth rate and relative market share: star (high high), cash cow (low high), question mark (high low), dog (low low)

What is Ansoff's matrix - Product/Market Expansion grid

a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification

Define each quadrant of Ansoff's matrix and examples

market penetration (existing markets and existing products), product development (existing markets and new products), market development (New markets and existing products), diversification (new markets and new products)

Which is the most expensive and challenging in the Ansoff's matrix?

diversification

Which is the least expensive in the Ansoff's matrix?

Market penetration

What is the value chain?

The series of internal departments that carry out value creating activities to design, produce, market, deliver, and support a firm's products

How is the value chain different from the value delivery network?

The value delivery network is the company, its suppliers, its distributors, and its customers while the value chain is internal departments that get the product to market

Marketing strategy

the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships

Learn figure 2.4 (really)

marketing on the outside circle

product, place, promotion, and price in the second circle

segmentation, targeting, differentiation ,and positioning in the third circle

customer value and relationships in the middle circle

Market segmentation

dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes

Market segment

a group of consumers who respond in a similar way to a given set of marketing efforts

Market targeting

evaluating each market segment's attractiveness and selecting one or more segments to serve

Positioning

arranging for a marketing offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

Marketing mix

product, price, place, and promotion

what is product of the four p's?

variety, quality, design, features, brand name, packaging, services

what is price of the four p's?

list price, discounts, allowances, payment period, and credit terms

what is the promotion of the four p's?

advertising, personal selling, sales promotion, public relations, and direct and digital

what is place of the four p's?

supply chains, channel coverage, channel management, logistics, transportation

five functions associated with the management of marketing

analysis, planning, implementation, organization, and control

SWOT

strength, weakness, opportunities, and threats

Marketing ROI

the net return from a marketing investment divided by the costs of the marketing investment

Marketing environment

consists of the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers

What are the two key marketing environments called?

Microenvironment and Macroenvironment

company

interrelated groups and departments

suppliers

provide the resources needed by the company to produce its good and services

Intermediaries

help the company promote, sell, and distribute its products to final buyers. They include resellers, physical distribution firms, marketing services agencies, and financial intermediaries

competitors

marketers must gain strategic advantage by positioning products strongly against competitors

Publics

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

Demographics

the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics

List the key demographic trends

changing age and family structures, geographic population shifts, educational characteristics, and population diversity

List the five largest generational groups.

Baby boomers, generation x, Millennials, Generation z, and Generation Alpha

Which generation is the wealthiest?

Baby boomers

Which generation is most comfortable with digital tech?

Generation z

What is the natural environment?

physical environment and natural resources needed as inputs by marketers or affected by marketing activities

technological environment

new technologies create new markets and opportunities

political environment

forces that influence or limit various organizations and individuals in a society

does legislation impact business?

yes

What are the 3 reasons government regulation is enacted?

Protecting companies and maintaining competitive markets, protecting and informing consumers, protecting national and societal interests

cultural environment

institutions and other forces that affect a society's basic values, perceptions, and behaviors

Did P and G do ethnographic research?

yes

is it easy to gain consumer insights?

no it is tricky

Define MIS. What are the three key words?

Marketing information system, consists of people and procedures to assess, develop, and use.

What are the three ways to 'develop information?'

internal databases, competitive marketing intelligence, marketing research

define internal databases

collections of consumer and market information obtained from data sources within the company network

define competitive marketing intelligence

systematic monitoring, collection, and analysis of information about consumers, competitors, and developments in the marketing environment

Define Marketing Research. List the steps

Systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization. 1. Defining the problem and research objectives, 2. Developing the research plan, 3. Implementing the research plan, 4. Interpreting and reporting the findings

What are the two 'camps' of marketing research?

Qualitative and quantitative

How are exploratory, descriptive, and causal research different? What research approach would you typically use of each?

Exploratory - for observational and to define problems, descriptive - for surveys and to describe the market potential, causal - for experiments and to test hypotheses about cause and effect relationships

What is a sample?

a segment of the population selected for marketing research to represent the population as a whole

is a convenience sample a type of non probability sample?

yes