BUAD 307 Kovacevich Midterm 1
Exam Study Guide
Define the role of marketing in organizations. - ANSWER An organizational
function, and a set of
processes for creating, capturing,
communicating, and delivering value to
customers and for managing customer
relationships for in ways that benefit the
organization and its stakeholders.
Describe how marketers create value for a product or service. - ANSWER 1.
They share info about their customers/competitors in their organization to help
them get the product to market
2. They balance their customers' benefits and costs.
3. They build relationships with customers.
4. They take advantage of new technologies and connect with their customers
using social and mobile media
Distinguish between a "market-driven" and a "market-driving" approach. -
ANSWER Market-driven → develop a product that the market wants
Market-driving → develop product then find market, tell the customer what they
want (e.g. Apple)
What is a market-oriented approach? What are its limitations? - ANSWER
Decisions made on what the buyers want
limitations → development of breakthrough products can be difficult
Analysis paralysis →market opportunities can pass during analysis of customer
plans
How has marketing evolved through different business eras? - ANSWER 1900 →
Product-Oriented Era
"Good products would sell themselves" (e.g. Model T Ford)
1920 to 1950 → Sales-Oriented Era
As consumption decreased during WWII, focus was on personal sales/ads
1950 to 1990 → Market-Oriented Era
U.S. became a buyers market as post-war suburbia grew; marketing
, Now → Value-Based Marketing Era
Attempt to satisfy their customers' needs and give greater value than their
competitors
Why is customer satisfaction important to marketers? - ANSWER Customer
satisfaction builds into customer loyalty, which creates "lifetime value of a
customer." Also, satisfaction helps customers with the intent to refer their
friends.
Marketing is about satisfying customer needs and wants. Good marketers seek
out those with an interest and ability to buy.
Distinguish among types of loyalty...heart, head, hand. - ANSWER Heart loyalty:
emotional attachment, self-description "I'm an apple person"
Head loyalty: Customers love the brand because of what it does and ability to
solve problems, value-add (Starbucks)
Hand loyalty: low loyalty. Purchased out of habit, doesn't need to live up to
expectation (Chipotle)
Define a marketing strategy. - ANSWER (1) a firm's target market(s)
(2) a related marketing mix (its four Ps-product, price, place, promotion)
(3) the bases on which the firm plans to build a sustainable competitive
advantage (adv. that is not easily copied and can be maintained over a long
period of time)
Analyze a marketing situation using SWOT analysis. - ANSWER Strengths &
Weaknesses (internal)
Opportunities & Threats (external)
Assess the opportunities/uncertainties of the marketplace due to changes in
CDSTEP (cultural, demographic, social, technological, economic, and political
forces).
Describe how a firm chooses which consumer group(s) to pursue with its
marketing efforts. - ANSWER Segmentation, Targeting, and Positioning (STP)
Segmentation: divide the market into segments and figure out which ones are
best fit for your product.
Targeting: create ads/campaigns for each segment (e.g. picture of Hertz
Mercedes for business customers)
Exam Study Guide
Define the role of marketing in organizations. - ANSWER An organizational
function, and a set of
processes for creating, capturing,
communicating, and delivering value to
customers and for managing customer
relationships for in ways that benefit the
organization and its stakeholders.
Describe how marketers create value for a product or service. - ANSWER 1.
They share info about their customers/competitors in their organization to help
them get the product to market
2. They balance their customers' benefits and costs.
3. They build relationships with customers.
4. They take advantage of new technologies and connect with their customers
using social and mobile media
Distinguish between a "market-driven" and a "market-driving" approach. -
ANSWER Market-driven → develop a product that the market wants
Market-driving → develop product then find market, tell the customer what they
want (e.g. Apple)
What is a market-oriented approach? What are its limitations? - ANSWER
Decisions made on what the buyers want
limitations → development of breakthrough products can be difficult
Analysis paralysis →market opportunities can pass during analysis of customer
plans
How has marketing evolved through different business eras? - ANSWER 1900 →
Product-Oriented Era
"Good products would sell themselves" (e.g. Model T Ford)
1920 to 1950 → Sales-Oriented Era
As consumption decreased during WWII, focus was on personal sales/ads
1950 to 1990 → Market-Oriented Era
U.S. became a buyers market as post-war suburbia grew; marketing
, Now → Value-Based Marketing Era
Attempt to satisfy their customers' needs and give greater value than their
competitors
Why is customer satisfaction important to marketers? - ANSWER Customer
satisfaction builds into customer loyalty, which creates "lifetime value of a
customer." Also, satisfaction helps customers with the intent to refer their
friends.
Marketing is about satisfying customer needs and wants. Good marketers seek
out those with an interest and ability to buy.
Distinguish among types of loyalty...heart, head, hand. - ANSWER Heart loyalty:
emotional attachment, self-description "I'm an apple person"
Head loyalty: Customers love the brand because of what it does and ability to
solve problems, value-add (Starbucks)
Hand loyalty: low loyalty. Purchased out of habit, doesn't need to live up to
expectation (Chipotle)
Define a marketing strategy. - ANSWER (1) a firm's target market(s)
(2) a related marketing mix (its four Ps-product, price, place, promotion)
(3) the bases on which the firm plans to build a sustainable competitive
advantage (adv. that is not easily copied and can be maintained over a long
period of time)
Analyze a marketing situation using SWOT analysis. - ANSWER Strengths &
Weaknesses (internal)
Opportunities & Threats (external)
Assess the opportunities/uncertainties of the marketplace due to changes in
CDSTEP (cultural, demographic, social, technological, economic, and political
forces).
Describe how a firm chooses which consumer group(s) to pursue with its
marketing efforts. - ANSWER Segmentation, Targeting, and Positioning (STP)
Segmentation: divide the market into segments and figure out which ones are
best fit for your product.
Targeting: create ads/campaigns for each segment (e.g. picture of Hertz
Mercedes for business customers)
