Marketing Midterm Review from Professor

What is Marketing

Creating, communicating, delivering, and exchanging value

What is the Goal of Marketing?

• Provide customers with value

• Build long-term customer relationships

• Meet customer needs and wants

What is Customer Value?

Benefits received relative to cost

Formula: Customer Value = Benefits Received − Costs Incurred

How do you Create Value?

Providing benefits that meet customers' needs and wants.

What is strategic planning?

The process of defining organizational objectives and developing methods to achieve them.

• Strategic planning is a continuous process

• Helps organizations adapt to changing conditions

• Increases the likelihood of selecting the correct marketing strategies

What is a Mission Statement?

A concise affirmation of a firm's long-term purpose.

What is Market Segmentation?

Dividing a larger market into smaller groups with shared characteristics.

What is Market Segment

Group of customers with shared characteristics

What are the benefits of segmentation?

• Identifies customer needs

• Improves targeting

• Helps allocate marketing resources efficiently

• Maximizes profitability

What makes effective segmentation criteria?

• Measurable

• Differentiable

• Accessible

• Actionable

• Substantial

What is the Marketing Mix (4 Ps)?

Product, Price, Place, and Promotion

Define the Marketing Mix (4 Ps)

Product - What is being offered to customers.

Price - What customers pay.

Place - How products are distributed and made available.

Promotion - How firms communicate value to customers.

What is Promotion?

All activities that communicate value and persuade customers to buy.

What is advertising?

Paid, nonpersonal communication.

What is personal Selling?

Direct interaction between seller and buyer.

What is sales promotion?

Short-term incentives encouraging quicker and more frequent purchases.

• Coupons

• Discounts

• Samples

• Contests

What is Public Relations?

Activities designed to maintain positive relationships between a company and its stakeholders.

How does most marketing communication happen?

Promotion

What is Predatory Pricing?

Selling below cost to eliminate competitors.

What is a Tariff? and What effect does if have?

Taxes imposed on imported goods.

Effects:

• Increase prices

• Can hurt U.S. competitiveness in foreign markets

What is the Robinson-Patman Act (1936)?

Addresses certain forms of price discrimination.

What is price discrimination?

Different prices for different buyers

What are examples of Retail clubs or membership warehouses?

Costco or Sams Club

These terms refer to the same retail concept.

Off-Price Retailers…

Sell products at reduced prices. Lower prices than traditional retail

Examples:

• Dollar discount stores

• Closeout chains

• Outlet stores

What are the Benefits of selling products at reduced prices?

• Lower prices

• More focused shopping experience

What is a potential disadvantage of direct and digital catalog marketing?

Difficulty targeting the right customers and tracking their activity.