Marketing Exam 1

Front 1

Marketing

Back 1

An organizational process for...
-managing customer relationships
-creating, communicating and delivering value to customers

Front 2

Stakeholders

Back 2

Any person, group or organization that holds a "stake" in the outcome of the marketing process

Front 3

Consumer

Back 3

-ultimate user of the product
-usually referred to as the individual

Front 4

Customer

Back 4

-the actual or prospective purchaser of products or services
-usually referred to as the business

Front 5

Consumer goods

Back 5

tangible products that individuals purchase or personal or family use

Front 6

Services

Back 6

intangible products that we buy but never own

Front 7

The Marketing Concept

Back 7

1. Identify the consumers need
2. create a product that satisfies the need (providing value)
3. ensuring the firms long term profitability

Front 8

Need

Back 8

the difference between a consumer's actual state and some ideal or desired state

Front 9

When does a product deliver a benefit?

Back 9

when it satisfies a need or want

Front 10

Challenge for marketers

Back 10

1. Identify the benefits people are looking for
2. Create a product or service that provides that benefit by satisfying the customer

Front 11

Differential Benefit

Back 11

-a benefit that makes a difference
- it has to set a product apart from competitors products by providing something unique that the customers want

Front 12

Demand=

Back 12

desire + buying power

Front 13

Market

Back 13

All the consumers who...
-share a common need that can be satisfied by a specific product
-have the resources, willingness and authority to make the purchase

Front 14

Mass Market

Back 14

consists of all possible customers in a market regardless of the differences in their specific needs and wants

Front 15

If a firm adopts a mass market strategy what must they do?

Back 15

develop a basic product and a single strategy for reaching everyone

Front 16

Market Segments

Back 16

groups of customers within a larger market who are similar to one another in some way, yet whose needs differ from the rest of the larger market

Front 17

Target Market

Back 17

the segment the organization chooses to focus on

Front 18

Marketplace

Back 18

any location or medium used to conduct an exchange
-not just face to face

Front 19

Utility

Back 19

the sum of the benefits we receive from a good or service
-there are 4 kinds: form, place, time & possession

Front 20

Form Utility

Back 20

transforming raw materials into finished products

Front 21

Place Utility

Back 21

making products available where customers want them

Front 22

Time Utility

Back 22

storing products until they are needed

Front 23

Possession Utility

Back 23

allowing consumers to own, use and enjoy the product

Front 24

What do most exchanges today occur as?

Back 24

Monetary Exchanges

Front 25

What do consumers want as a result of a marketing exchange?

Back 25

value
-to feel satisfied

Front 26

How do customers determine value?

Back 26

by the benefits that they receive from the product

Front 27

Value Propositions

Back 27

the sum total of benefits that the brand promises the customer will realize if he/she purchases the product or service

Front 28

Distinctive Competency

Back 28

a firm's capability that is superior to that of it's competition

Front 29

What is the underlying goal of all marketing strategies?

Back 29

to create a competitive advantage

Front 30

Competitive Advantage

Back 30

the ability to outperform the competition by providing customers with benefits that your competition can't

Front 31

What is the lifetime value of a customer?

Back 31

the profit the company expects to make from a particular customer, including each and every purchase he/she will make now and in the future

Front 32

How do you calculate the lifetime value of a customer?

Back 32

-estimate the total amount the person will spend
-subtract what it will cost them to maintain that relationship

Front 33

The Value Chain

Back 33

a series of activities involved in designing, producing, delivering, marketing and supporting any product

Front 34

Does advertising = marketing?

Back 34

No, advertising is only one of marketing's tools

Front 35

Marketing Mix

Back 35

-product
-price
-place
-promotion
(4 P's)

Front 36

Are decisions about the 4 P's totally interdependent?

Back 36

Yes

Front 37

Positioning

Back 37

influencing how the customers in a particular market segment perceive your good or service in comparison to your competition

Front 38

Marketing Position

Back 38

How the target market perceives your product in comparison to your competitors brand

Front 39

The Evolution of Marketing

Back 39

-the production era
-the sales era
-the relationship era

Front 40

Production Era

Back 40

-businesses focused on the most efficient ways to produce and distribute products

firms with a production orientation
-work best in a seller's market
-view the market as a homogenous group
-view marketing as relatively insignificant

Front 41

Selling Era

Back 41

-businesses focused on the "hard sell" aggressively pushing their product

firms with a selling orientation
-view marketing as a sales function
-way to move products out of warehouse and keep inventories low
-typically sell unsought goods
-tend to be more successful at making one-time sales rather than building repeat business

Front 42

The Relationship Era

Back 42

firms that adopt a consumer orientation
-businesses focus on satisfying customer needs (marketing concept)
-marketing's importance in the firm was elevated
-marketer's began to understand the needs of different consumers thanks to research
-companies began to tailor their products to meet these needs

Front 43

Total Quality Management

Back 43

involves all employees from the assembly line onward in continuous product quality improvement

Front 44

Customer relationship management

Back 44

-systematically tracking consumer's preferences and behaviors over time
-tailoring the value proposition to each individuals wants and needs

Front 45

Accountability

Back 45

they have to measure
-exactly how much they are spending
- what concrete impact their actions have on the bottom line
^called ROI (return on investment)

Front 46

Triple bottom line orientation

Back 46

1. financial
2. social (community)
3. environmental

Front 47

Attention economy

Back 47

-companies make and when they attract eyeballs rather than just dollars
-they must find new and innovative ways to stand out from the crowd
-they want to become an integral part of your life