Marketing 3305: Key Concepts from Chapters 1-4 for Exam Preparation

Marketing

The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value.

Marketing Mix

Product, Price, Promotion, and Place (the 4 Ps).

Tangible products

Physical goods.

Intangible products

Services, ideas, or experiences.

Wants

Desires shaped by culture and personality.

Needs

Basic human requirements.

Characteristics of demand

Desire, ability, and willingness to buy a product.

Benefit

The outcome sought by a consumer that satisfies a need or want.

Market

All actual/potential buyers.

Marketplace

The physical or digital location where transactions occur.

Mass marketing

A single marketing strategy directed at everyone.

Forms of utility

Form, place, time, and possession utility.

Marketing concept

A management philosophy that focuses on satisfying customer needs and wants while meeting organizational objectives.

Eras of the marketing concept

Production, sales, relationship, and triple-bottom-line.

Market segments

Groups of consumers with similar needs and wants.

Value proposition

The unique benefits a product or service promises to deliver to customers.

Value to the consumer

Benefit relative to cost.

Value to the company

Profit and loyalty.

Positioning

A strategy to influence how a target market perceives a product relative to competitors.

Distinctive competency

A firm's superior capability that gives it an advantage.

Differential benefit

Unique features that set a product apart from competitors.

Components of the value chain

Activities that add value—logistics, operations, marketing, service, etc.

Lifetime value of a customer

The profit a company expects from a customer over their entire relationship.

Steps in making the decision to enter global markets

Analyze market, assess conditions, evaluate competition, choose entry strategy.

Protected trade

Government restrictions to protect domestic industries.

Embargo

Total ban.

Quota

Limit.

Tariff

Tax.

Protectionism

Policies to restrict imports.

External marketing environment influences

Economic, technological, political/legal, socio/cultural, and competitive.

Market entry strategies

Export, licensing & franchising, strategic alliances, direct investment.

Localization vs. standardization

Localization adapts to local markets; standardization uses a uniform global approach.

Product strategies in global marketing

Straight extension, product adaptation, and product invention.

Types of microenvironment competition

Discretionary income, product competition, brand competition.

Types of macroenvironment competition

Monopoly, oligopoly, monopolistic competition, perfect competition.

Bribery in marketing ethics

Giving money or favors to influence business decisions.

Levels of business planning

Strategic, functional, and operational planning.

Components of strategic planning

Mission, SWOT, objectives, portfolio analysis, growth strategies.

BCG Matrix

Portfolio analysis tool (stars, cash cows, question marks, dogs).

Four growth strategies

Market penetration, product development, market development, diversification.

Functional planning

Mid-level planning for departments such as marketing.

Components of marketing planning

Situation analysis, objectives, strategies, target market, and 4 Ps.

Operational planning

Short-term, day-to-day action plans.

Characteristics of an action plan

Assigns responsibility, sets a timeline, identifies resources, defines metrics.

Components of the Marketing Information System (MIS)

Internal data, market intelligence, market research.

Syndicated research vs. custom research

Syndicated = collected and sold by firms; custom = conducted for a specific firm.

Acquired databases

Databases purchased or obtained from outside sources for marketing analysis.

Types of research design

Secondary and primary research.

Types of exploratory research

Focus group, ethnography, and case study.

Types of descriptive research

Cross sectional and longitudinal.

Causal research

Research designed to identify cause-and-effect relationships.

Ways to collect primary data

Survey and observation.

Types of sampling

Probability sampling and non-probability sampling.

Data analysis methods

Tabulation and cross-tabulation.

Difference between data and information

Data are raw facts; information is data interpreted for decision-making.