Key Concepts in Marketing and Crisis Management

What is the marketing concept?

The idea that all of marketing revolves around the consumer—meeting their needs and wants.

What are the four conditions for an exchange?

1) Two or more parties, 2) Something of value, 3) Willingness to exchange, 4) Communication.

What are the 4 P's of marketing?

Product, Price, Promotion, Place (Distribution).

What is the current AMA definition of marketing?

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

Why do companies segment markets?

Because customers have different needs, and segmentation helps target them more effectively.

What are the 5 types of market segmentation?

Geographic - Location-based (city, climate, region). Demographic - Who they are (age, gender, income). Psychographic - Why they buy (values, interests). Benefit - What they seek (whitening toothpaste vs. cavity protection). Micro-Marketing - Customization for individuals.

What is the BCG Matrix?

A tool to categorize business units/products based on market share and growth rate.

What are the four categories in the BCG Matrix?

Stars (High market share, High growth) - e.g., Apple. Cash Cows (High market share, Low growth) - e.g., Tide detergent. Question Marks (Low market share, High growth) - Needs investment. Dogs (Low market share, Low growth) - Consider divesting.

What are the four growth strategies in marketing?

Market Penetration - Sell more of the same product to the same market. Product Development - New products for the same market. Market Development - Same product to a new market. Diversification - New products in new markets.

What is environmental scanning?

Gathering and analyzing external information to identify opportunities and threats.

What are the three types of environmental scanning?

Irregular Model (Reactive): Response to a crisis. Regular Model (Proactive): Periodic research. Continuous Model (Best): Ongoing research from multiple sources.

What is the difference between the micro and macro environment?

Micro Environment: Internal factors (suppliers, distributors, employees). Macro Environment: External factors (social, legal, economic, technological trends).

What company produced Tylenol?

Johnson & Johnson (J&J).

What happened in the 1982 Tylenol crisis?

Some Tylenol capsules were laced with cyanide, leading to consumer deaths.

How did J&J respond to the crisis?

Immediate recall. CEO James Burke took responsibility. Introduced tamper-proof packaging. Used PR and advertising to rebuild trust.

What was the marketing lesson from Tylenol's response?

A strong brand and consumer trust can help a company recover from a crisis.