MKTG 3340 EXAM 1 QUESTIONS WITH CORRECT ANSWERS GRADED TO PASS

what is marketing? - the management process involved in identifying, anticipating, and satisfying customer wants profitably what are the 2 goals of marketing? - 1. discover (assess) the needs and wants of prospective customers 2. satisfy these needs & wants through EXCHANGE (each are better off after exchange) what are the 4 requirements for marketing to occur? - 1. two or more parties with unsatisfied needs 2. desire and ability to satisfy those needs 3. a way for the parties to communicate 4. something to exchange what are the 4 P's/controllable factors in solving a marketing mix/program? - 1. product 2. place 3. price 4. promotion customer is in center what are uncontrollable factors in solving a marketing program/mix? - competitive forces, regulatory forces, social forces, economic forces, technological forces what is customer value proposition? - what are we promising the customer? what is their benefit? what are key marketing issue? - - retain customer loyalty - manage customer relationships effectively - redefine the term "go shopping" - does this marketing action payout? - consumer engagement in an ever-changing digital world what is customer value? - benefits received by buyers that includes quality, convenience, on-time delivery, and both before-sale & after-sale service at a specific price how to manage customer relationships effectively? - - one-to-one marketing opportunities, datamining, customer relationship marketing what does it mean redefine the term "go shopping" - shoppertainment, adding hands on testing, in person experience what is the evolution of customer relationship era? - production concept product concept selling concept marketing concept what is production concept? - high distribution, low costs (ex: ford's factory line) what is product concept? - focus on producing better products to attract new customers ("if you build it, they will come") what is selling concept? - shove ads down consumers throats & hope they will eventually buy it; commonly used for unsold goods what is marketing concept? - assess & satisfy consumer wants and needs more effectively/efficiently what 4 pillars does the marketing concept rest on? - - target market (one or more specific groups of potential consumers toward which a company will direct its marketing program) - customer needs - internal marketing (hiring, training, motivating employees to want to serve customers well) - profitability what is market orientation? - customer focus - firm focuses on constantly collecting info on consumers and using this info to generate sales what is customer relationship? - firms seek continuously to satisfy the high expectations of customers what is customer relationship management? - identifying future customers, understanding them, and developing long-term perceptions of the firm so that customers will continue to choose them what is customer experience - - internal response that customers have to an organization through direct/indirect contact - ex: able to get the same product elsewhere but like the feel/service of one place what are 3 considerations in setting marketing policies - - consumers wants & satisfactions - company profits - public interest what is a business unit - single business or group of related businesses that can be planned independently from other company businesses (distinct mission, customers, competitors, resources or technologies, responsibility for profits) what is a functional business unit? - business unit with specialized functions (marketing, finance, R&D, human resources, etc); also cross functional groups made up of people from different business units what is the market definition of the business? - focuses on consumer benefits, scope of business, definition of competition what is marketing myopia? - starting to view/define companies in broader terms; how they can help customers what is a business mission? - statement of organization's scope; identifies customers, markets, products, technology, value what is an effective mission statement? - - focus on only a limited number of goals - stress the guiding policies & values the company wants to honor - define the company's major competitive scope what are objectives/goals? - targeted level of performance set in advance of work well-stated objectives should be..... - measurable, consistent, prioritized, time-based marketing share = - firm's sales revenue/total sales revenue of industry relative market share = - firm's market share(revenues)/largest competitor's market share (or revenues) industry(market) growth rate = - (industry sales current year - industry sales prior year sales)/industry sales prior year what is business portfolio analysis? - studies a firm's strategic business units as though they were a collection of separate investments what is diversification analysis? - helps a firm search for growth & consolidation opportunities among current & new markets as well as current & new products BCG Growth-Share Matrix: dog - - dog: cost disadvantage, markets not growing; low relative market share & low market growth rate BCG Growth-Share Matrix: cash cow - - cash cow: profitable products, generate more cash than needed, slow sales growth; high relative market share & low market growth rate BCG Growth-Share Matrix: question mark - - question mark: rapid growth, poor profit margins, enormous demand for cash; low relative market share & high market growth rate BCG Growth-Share Matrix: star - - star: market leaders, fast growing, require investments; high market growth rate & high relative market share you invest in.... - question marks to turn them into stars & invest in stars to continue growth you hold... - just enough in cash cows to maintain share you pull.... - out from cash cows you sell/delete.... - dogs from the portfolio; hard to do sometimes b/c it can be the psychologically hard; think getting rid of iPod in Apple what is diversification analysis - used to help a firm search for growth & consolidation in current & new markets what are diversification analysis strategies - market penetration, market development, product development, diversification, harvesting, retrenchment, pruning, divestment what is market penetration strategy - increase sales of current products in existing markets; focus on advertising, promotion & price reductions what is market development - sell existing products to new markets what is product development - sell a new product to a current markets; often line or brand extensions; ex: selling powder detergent in liquid form what is diversification - develop and/or acquire new products & sell them in new markets; HIGH RISK what is harvesting - use a gradually decreasing share of the company's resources to support the product; product is retained as long as possible what is retrenchment - an organization continues to offer the same product lines but eliminates its weak demographic segments or geographic markets what is pruning - discontinuation of a product; organization may continue to offer other products in the same category to the existing market what is divestment - selling off of a high risk business/product line because there is a "weak" fit b/c organization's mission & competencies & requirements for making business/product successful what is the strategic marketing process - situation analysis goal setting (implementation phase) marketing program (control phase) what is situation analysis - looking where the company has been, where it is now, and where it is heading what are the 3 C's - - assess the Company - analyze the Competitors - research present/prospective Customers what are competencies? - organization's special capabilities that provide customer value; if exploited leads to competitive advantage what is a competitive advantage? - a unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation what is competitor analysis? - identifying competitors assessing their objectives, strategies, strengths, weaknesses, and reaction patterns selecting which to avoid/attack what is SWOT analysis - appraisal of internal Strengths & Weaknesses and external Opportunities & Threats what are environmental forces? - social, economic, technological, competitive, regulatory difference between fads vs trends - fads are make your money & run vs. trends last an average of 10 years & is what drives the customers to buy products what are faith popcorn's cultural trends? - - cocooning - clanning - fantasy adventure - egonomics - vigilante consumer what is cocooning - people enjoy comfort and safety of their own home; ex: netflix, pizza delivery what is clanning - people enjoy their tight/close group of friends and family; ex: social media what is fantasy adventure - people find excitement in risk free adventure; ex: virtual reality what is egonomics - we live in a depersonalized world what is vigilante consumer - angry yelp reviews what is "clockless day" - midnight to 5 am; 1/5 americans work mostly in evening; changes driven by: - workers with multiple jobs - college students - people working longer hours - consumers desire flexibility what is generation Z (1995 - present) - digital natives; use the most electronic devices; 70% of 10 - 13 have mobile phones what is implication of generation z for marketers - - higher expectations of brands, requires brand authenticity, crowdsourcing (interact & engage), all about visuals (show me, don't tell me) what are tech trends? - - smart home tech - privacy backlash - advances in nanotech - cloud wars what are barriers to entry? - business practices that make it difficult for new firms to enter the market