marketing quiz

AMA Marketing definition

Marketing is 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.

Two primary goals of marketing

1. Discover needs and wants of customers

2. Satisfy them

personal value equation

v = benefits / (price - hassle)

Offering

The entire bundle of a tangible good, intangible service and price that composes what a company offers to customers

Value

The benefits buyers receive that meet their needs

Hassle

the time and effort the consumer puts into the shopping process

the four P’s

product, price, place, promotion

new marketing concept

creating, communicating, exchanging, delivering = value

strategic planning

a process that helps an organization allocate its resources to capitalize on opportunities in the marketplace

4 key components in strategic planning

where are we now?

who are we?

what do we offer?

what we’ll do

where are we now?

situation analysis

internal and external

who are we?

mission and vision

what do we offer?

value proposition

what we’ll do

strategies

external factors

macro and micro factors outside the organization that are affecting us

internal factors

financial resources, technological resources, employee capabilities

situational analysis

taking stock of where the firm or product has been recently, where is is now, and where it is headed in terms of the organizations marketing plans and the external forces and trends affecting it

swot

strengths

Weaknesses

opportunities

threats

mission statement

a statement of the organization’s function in society that often identifies its customers, markets, products, and technologies. The term is often used interchangeably with vision.

objectives

what organizations want to accomplish in a given time frame

strategies

what a firm is going to do to achieve its objectives

tactics

specific actions taken to execute a strategy

Marketing strategy

the means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it.

Marketing tactics

the detailed, day-to-day operational marketing actions for each element of the marketing mix that contributes to the overall success of marketing strategies.

value proposition

A statement that summarizes the key benefits or value for target customers. It explains why customers should buy a product, why stakeholders should donate, or why prospective employers may want to hire someone for their organization.

strategic business units (SBUs)

Businesses or product lines within an organization that have their own competitors, customers, and profit centers.

market penetration strategies

Selling more of existing products and services to existing customers.

product development strategies

Creating new products or services for existing markets.

market development strategies

Selling existing products or services to new customers. Foreign markets often present opportunities for organizations to expand. Exporting, licensing, franchising, joint ventures, and direct investment are methods that companies use to enter international markets.

diversification strategy

Offering products that are unrelated to other existing products produced by the organization.

boston consulting group (bcg) matrix

A portfolio-planning approach that examines strategic business units based on their relative market shares and growth rates. Businesses are classified as stars, cash cows, question marks (problem children), or dogs.

star

Business or offering with high growth and a high market share.

cash cow

Business or offering with a large share of a shrinking market.

question mark / problem children

Businesses or offerings with a low share of a high-growth market.

dog

Business or offering with low growth and a low market share.

Evaluative criteria

the factors that represent both the objective attributes of a brand and the subjective ones a consumer uses to compare different products and brands.

consideration set

the group of brands that a consumer would consider acceptable from among all the brands in the product class of which he or she is aware

Consumer touchpoints

a marketer’s product, service, or brand points of contact with a consumer from start-to-finish in the purchase decision process.

low involvement

impulse buying, purchases that occur with no planning or forethought

high involvement

used for products that carry a high price tag or high level of risk

consumer behavior

The study of when, where, and how people buy things and then dispose of them.

evaluative criteria

Certain characteristics of products consumers consider when they are making buying decisions.