MARKETING 351 TEST 1 |90 QUESTIONS AND AND ANSWERS|GUARANTEED SUCCESS

Marketing An organizational function and a set of processes for creating, capturing, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders Marketing plan A written document composed of an analysis of the current marketing situation, opportunities, and threats for the firm, marketing objectives and strategy specified in terms of the four P's, action programs, and projected or pro forma income (and other financial statements) Exchange the trade of things of value between the buyer and the seller so that each is better off as a result Marketing Mix (Four P's) Product, price, place promotion, the controllable set of activities that a firm uses to respond to the wants of its target markets Goods Items that can be physically touched Service Any intangible offering that involves a deed, performance, or effort that cannot be physically possessed; intangible customer benefits that are produced by people or machines and cannot be separated from the producer Idea Intellectual concepts- thoughts, opinions and philosophies B2C Marketing The process in which businesses sell to consumers B2B Marketing The process of buying and selling goods or services to be used in the production of other goods and services, for consumption by the buying organization, or for resale by wholesalers and retailers C2C Marketing The process in which consumers sell to other consumers Value Reflects the relationship of benefits to costs or what the consumer gets for what he or she gives Value cocreation Customers act as collaborators with a manufacturer or retailer to create the product or service Relational orientation A method of building a relationship with customers based on the philosophy that buyer sand seller should develop a long-term relationship Customer Relationship management (CRM) A business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm's most valued customers Marketing Strategy A firm's target market, marketing mix, and method of obtaining a sustainable competitive advantage Sustainable competitive advantage Something the firm can persistently do better than its competitors Customer excellence Involves a focus on retaining loyal customer and excellent customer service Operational Excellence Involves a firm's focus on efficient operations and excellent supply chain management Product Excellence Involves focus on achieving high-quality products; effective branding and positioning is key locational excellence A method of achieving excellence by having a strong physical location and or Internet presence Planning phase The part of the strategic marketing planning process when marketing executives, in conjunction with other top managers 1. define the mission or vision of the business and 2. evaluate the situation by assessing how various players, both in and outside the organization, affect the firm's potential for success Implementation phase The part of the strategic marketing planning process when marketing managers 1. identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning and 2. implement the marketing mix using the four P's Control phase The part of the strategic marketing planning process when managers evaluate the performance of the marketing strategy and take any necessary corrective actions Mission Statement A broad description of a firm's objectives and the scope of activities it plans to undertake; attempts to answer two main questions: what type of business is it? and What does it need to do to accomplish its goals and objectives? Situation analysis Second step in a marketing plan; uses a SWOT analysis that assesses both the internal environment with regard to its strengths and weaknesses and the external environment in terms of its opportunities and threats SWOT analysis A method of conducting a situation analysis within a marketing plan Segmentation, targeting, and positioning (STP) Firms use these processes to identify and evaluate opportunities for increasing sales and profits market segment A group of consumers who respond similarly to a firm's marketing efforts Market segmentation The process of dividing the market into groups of customers with different needs, wants or characteristics- who therefore might appreciate products or services geared especially for them Target marketing or targeting The process of evaluating the attractiveness of various segments and then deciding which to pursue as a market Market positioning Involves the process of defining the marketing mix variables so that the target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products Integrated Marketing Communications (IMC) Represents the promotion dimension of the four Ps; encompasses a variety of communication disciplines- general advertising, personal selling, sales promotion, public relations, direct marketing, and electronic media- in combination to provide clarity consistency, and maximum communicative impact Metric A measuring system that quantifies a trend, dynamic, or characteristic Strategic business unit (SBU) A division of the firm itself that can be managed and operate somewhat independently from other divisions and may have a different mission or objectives Product lines Groups of associated items, such as those that consumers use together to think of as part of a group of similar products Market share Percentage of a market accounted for by a specific entity Relative market share A measure of the product's strength in a particular market, defined as the sales of the focal product divided by the sales achieved by the largest firm in the industry Market growth rate The annual rate of growth of the specific market in which the product competes Market penetration strategy A growth strategy that employs the existing marketing mix and focuses the firm's efforts on existing customers Market development strategy A growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international Product development strategy A growth strategy that offers a new product or service to a firm's current target market Diversification strategy A growth strategy whereby a firm introduces a new product or service to a market segment that it does not currently serve Related diversification A growth strategy whereby the current target market and/or marketing mix shares something in common with the new opportunity Unrelated Diversification A growth strategy whereby a new business lacks any common elements with the present business Social Media Media content used for social interactions such as Facebook, Youtube, Twitter Social network Sites Facebook, LinkedIn, Google+ Media Sharing Sites Youtube, Instagram, Flickr Thought sharing sites Blogs, Microblogs Blog A web page that contains periodic posts; corporate blogs are a new form of marketing communications Corporate blog A website created by a company and often used to educated customers Professional blog Website written by a person who reviews and gives recommendations on products and services Personal blog Website written by a person who receives no products or remuneration for his or her efforts Microblog Differs from a traditional blog in size. Consists of short sentences, short videos or individual images. i.e. Twitter Showrooming Customers visit a store to touch, feel, and even discuss a product's features with a sales associate, and then purchase it online from another retailer at a lower price Ad-Supported app Apps that are free to download, but place ads on the screen when using the program to generate revenue Freemium app Apps that are free to download, but include in-app purchases In-app purchase When a game or app prompts or allows customers to make small "micro purchases" to enhance an app or game Paid app Apps that charge the customer an up-front price to download the app, but offer functionality once downloaded ($.99 is the most common) Paid apps with in-app purchase Apps that require the consumer to pay initially to download the app and then offer the ability to buy additional functionality Sentiment analysis A technique that allows marketers to analyze data from social media sites to collect consumer comments about companies and their products Hit A request for a file made by web browsers and search engines. Hits are commonly misinterpreted as a metric for website success; however, the number of hits typically is much larger than the number of people visiting a website