Marketing exam 1

What is marketing?

Marketing is the activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

What are the 4Ps of the marketing mix?

Product, Price, Place, and Promotion.

What is a service in marketing?

A service is an intangible offering that provides value to customers, such as a haircut, financial advice, or a hotel stay.

What are the three types of customer needs?

Physical needs (e.g., food, clothing), social needs (e.g., belonging, affection), and individual needs (e.g., knowledge, self-expression).

What is the difference between customer wants and demands?

Wants are the form human needs take when shaped by culture and individual personality, while demands are wants backed by buying power.

What are the macro strategies for developing customer value?

Retaining loyal customers, efficient operations, high perceived value products, and good physical location/internet presence.

What is STP in marketing?

STP stands for Segmentation, Targeting, and Positioning. It is a process used to identify and evaluate market opportunities.

What is market segmentation?

Market segmentation is dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs.

What is market targeting?

Market targeting is evaluating each market segment’s attractiveness and selecting one or more segments to enter.

What is market positioning?

Market positioning involves defining the marketing mix variables so that target customers have a clear, distinctive, and desirable understanding of the product compared to competitors.

What are the five steps in creating a marketing plan?

Define the mission and objectives, conduct a situation analysis (SWOT), identify and evaluate opportunities using STP, implement the marketing mix and allocate resources, evaluate performance using marketing metrics.

What is the purpose of a SWOT analysis?

A SWOT analysis assesses the internal environment (Strengths and Weaknesses) and the external environment (Opportunities and Threats) to inform strategic planning.

What is the Boston Consulting Group (BCG) Matrix?

The BCG Matrix is a tool that evaluates a company’s product portfolio based on market growth rate (vertical axis) and relative market share (horizontal axis).

What are the steps in the consumer decision process?

Need Recognition, Search for Information, Evaluation of Alternatives, Purchase and Consumption, Post-Purchase Behavior.

What is post-purchase cognitive dissonance?

Post-purchase cognitive dissonance is the discomfort experienced after making a purchase, especially for expensive or infrequently bought items.

What is customer loyalty in marketing?

Customer loyalty is when customers repeatedly purchase from a brand due to satisfaction and positive experiences.

What is integrated marketing communications (IMC)?

IMC is the use of various communication disciplines to provide clarity, consistency, and maximum communicative impact.

What is value-based marketing?

Value-based marketing focuses on creating value for customers by offering benefits that outweigh costs.

What is the role of technology in value cocreation?

Technology enables value cocreation, where customers collaborate with firms to create products or services that meet their specific needs.

What is conscious marketing?

Conscious marketing involves making socially responsible activities an integral part of corporate strategies.

What is a mission statement?

A mission statement is a broad description of a firm’s objectives and the scope of activities it plans to undertake.

What is a market penetration strategy?

A market penetration strategy employs the existing marketing mix and focuses the firm’s efforts on existing customers to increase market share.

What is a product development strategy?

A product development strategy involves offering a new product or service to a firm’s current target market.

What is a diversification strategy?

A diversification strategy introduces a new product or service to a market segment that is not currently served by the firm.

What is operational excellence?

Operational excellence is achieved through efficient operations, excellent supply chain management, and strong relationships with suppliers.