Marketing Principles and Strategy Flashcards

A comprehensive set of question-and-answer practice flashcards covering marketing fundamentals, environment, research methods, and global strategy based on lecture materials.

What concept is highlighted by the statement that losing a customer once means losing the entire stream of possible purchases over an extended period of patronage?

Customer lifetime value

Which term refers to the total combined customer lifetime value of all of the company's current and potential customers?

Customer equity

What are human needs called when they are shaped by culture and individual personality?

Wants

What do customers typically act on when judging values and costs while purchasing products?

Perceived value

Which marketing orientation focuses primarily on the product's features, performance, and quality?

Product concept

Which concept was reflected when railroad companies focused on quality trains while overlooking alternative modes of transportation?

Product concept

According to the lecture, is AI-generated content tailored to viewer preferences already being used at Netflix?

False

According to the lecture, how is Customer Lifetime Value (CLV) defined?

The total value of a customer over time

What strategy involves company growth by increasing sales of current products to current market segments without changing the product?

Market penetration

What constitutes a market segment in the car industry?

A group of consumers sharing a similar response based on shared needs, such as wanting the biggest, most comfortable car regardless of price.

What does the economic environment consist of?

Economic factors that affect consumer purchasing power and spending patterns.

What is the greatest concern for companies resulting from the boom in online, mobile, and social media?

Protecting the privacy of knowing and unknowing customers

Are labor restrictions and currency controls considered legal indicators of market potential?

True

Does Starbucks' segmentation consider both customer demographics and context-specific needs according to the lecture?

True

Which competitor launched McCaf to challenge Starbucks' positioning according to the lecture?

McDonald's

Which generation was the Happy Meal most closely associated with according to the lecture?

Generation X

According to the lecture, does a population pyramid always perfectly follow a triangle shape in every country?

False

According to the lecture, when is trust built by a company?

When a company consistently delivers on its promises.

What is the function of a marketing information ecosystem?

It assesses information needs, develops needed information, and helps decision makers use the information.

Which option is EXCEPTED from the cost-effective ways small businesses and non-profits can obtain market information?

Large-scale research studies

Which technique is NOT included in marketing intelligence?

Implementing product diversification

What is artificial intelligence (AI) in the context of technology?

Technology by which machines think and learn in a way that looks and feels human but with a lot more analytical capacity.

If marketing manager Akira Takano tests the hypothesis that sales will increase exponentially given a $5$ drop in price, what type of research is being conducted?

Causal research

What does primary data consist of?

Information collected for the specific purpose at hand.

What is the primary goal of causal research?

To understand cause and effect relationships.

Did Duolingo's research plan rely only on secondary data according to the lecture?

False

According to the Duolingo lecture, what finding could the survey reveal about user preferences?

Whether practical features mattered more than gamification

How is marketing defined?

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

What is marketing myopia?

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

What is the societal marketing concept?

The idea that a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests.

What are the birth year ranges for Baby Boomers, Generation X, Millennials, and Generation Z?

Baby Boomers: 1946–1964; Generation X: 1965–1980; Millennials (Gen Y): 1981–1996; Generation Z: 1997–2012.

What is the primary objective of exploratory research?

To gather preliminary information that will help define problems and suggest hypotheses.

What is ethnographic research?

A form of observational research that involves sending trained observers to watch and interact with consumers in their natural environments.

What are the four entry strategies included under joint venturing in international marketing?

Licensing, contract manufacturing, management contracting, and joint ownership.

What is dual adaptation in global marketing?

Adapting both the product and the marketing communications for a foreign market.

What concept is highlighted by the statement that losing a customer once means losing the entire stream of possible purchases over an extended period of patronage?

Customer lifetime value

Which term refers to the total combined customer lifetime value of all of the company's current and potential customers?

Customer equity

What are human needs called when they are shaped by culture and individual personality?

Wants

What do customers typically act on when judging values and costs while purchasing products?

Perceived value

Which marketing orientation focuses primarily on the product's features, performance, and quality?

Product concept

Which concept was reflected when railroad companies focused on quality trains while overlooking alternative modes of transportation?

Product concept

According to the lecture, is AI-generated content tailored to viewer preferences already being used at Netflix?

False

According to the lecture, how is Customer Lifetime Value (CLV) defined?

The total value of a customer over time

What strategy involves company growth by increasing sales of current products to current market segments without changing the product?

Market penetration

What constitutes a market segment in the car industry?

A group of consumers sharing a similar response based on shared needs, such as wanting the biggest, most comfortable car regardless of price.

What does the economic environment consist of?

Economic factors that affect consumer purchasing power and spending patterns.

What is the greatest concern for companies resulting from the boom in online, mobile, and social media?

Protecting the privacy of knowing and unknowing customers

Are labor restrictions and currency controls considered legal indicators of market potential?

True

Does Starbucks' segmentation consider both customer demographics and context-specific needs according to the lecture?

True

Which competitor launched McCafe to challenge Starbucks' positioning according to the lecture?

McDonald's

Which generation was the Happy Meal most closely associated with according to the lecture?

Generation X

According to the lecture, does a population pyramid always perfectly follow a triangle shape in every country?

False

According to the lecture, when is trust built by a company?

When a company consistently delivers on its promises.

What is the function of a marketing information ecosystem?

It assesses information needs, develops needed information, and helps decision makers use the information.

Which option is EXCEPTED from the cost-effective ways small businesses and non-profits can obtain market information?

Large-scale research studies

Which technique is NOT included in marketing intelligence?

Implementing product diversification

What is artificial intelligence (AI) in the context of technology?

Technology by which machines think and learn in a way that looks and feels human but with a lot more analytical capacity.

If marketing manager Akira Takano tests the hypothesis that sales will increase exponentially given a $5$ drop in price, what type of research is being conducted?

Causal research

What does primary data consist of?

Information collected for the specific purpose at hand.

What is the primary goal of causal research?

To understand cause and effect relationships.

Did Duolingo's research plan rely only on secondary data according to the lecture?

False

According to the Duolingo lecture, what finding could the survey reveal about user preferences?

Whether practical features mattered more than gamification

How is marketing defined?

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

What is marketing myopia?

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

What is the societal marketing concept?

The idea that a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests.

What are the birth year ranges for Baby Boomers, Generation X, Millennials, and Generation Z?

Baby Boomers: 1946–1964; Generation X: 1965–1980; Millennials (Gen Y): 1981–1996; Generation Z: 1997–2012.

What is the primary objective of exploratory research?

To gather preliminary information that will help define problems and suggest hypotheses.

What is ethnographic research?

A form of observational research that involves sending trained observers to watch and interact with consumers in their natural environments.

What are the four entry strategies included under joint venturing in international marketing?

Licensing, contract manufacturing, management contracting, and joint ownership.

What is dual adaptation in global marketing?

Adapting both the product and the marketing communications for a foreign market.

Needs

States of felt deprivation.

Demands

Human wants that are backed by buying power.

Market Offerings

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

Exchange

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

Market

The set of all actual and potential buyers of a product or service.

Marketing Management

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

Production Concept

The idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency.

Selling Concept

The idea that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort.

Marketing Concept

A philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.

Customer Relationship Management (CRM)

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

Customer Satisfaction

The extent to which a product's perceived performance matches a buyer's expectations.

Customer-Engaged Marketing

Making the brand a meaningful part of consumers' conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences, and community.

Consumer-Generated Marketing

Brand exchanges created by consumers themselves—both invited and uninvited—by which consumers play an increasing role in shaping their own brand experiences.

Partner Relationship Management

Working closely with partners in other company departments and outside the company to jointly bring greater value to customers.

Share of Customer

The portion of the customer's purchasing that a company gets in its product categories.

Digital and Social Media Marketing

Using digital marketing tools such as websites, social media, mobile apps, online video, email, and blogs to engage consumers anywhere, at any time.

Strategic Planning

The process of developing and maintaining a 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.

Business Portfolio

The collection of businesses and products that make up the company.

Portfolio Analysis

The process by which management evaluates the products and businesses that make up the company.

Strategic Business Unit (SBU)

A key company division, product line within a division, or single product/brand that can be planned separately from other company businesses.

Growth-Share Matrix

A portfolio-planning method that evaluates a company's SBUs in terms of market growth rate and relative market share (categorized as Stars, Cash Cows, Question Marks, and Dogs).

Product/Market Expansion Grid

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

Market Development

Company growth by identifying and developing new market segments for current company products.

Product Development

Company growth by offering modified or new products to current market segments.

Diversification

Company growth through starting up or acquiring businesses outside the company's current products and markets.

Downsizing

Reducing the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company's overall strategy.

Value Chain

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

Value Delivery Network

The network made up of the company, its suppliers, its distributors, and ultimately its customers who partner with each other to improve overall performance.

Marketing Strategy

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