CSUF MKTG 351 EXAM 1| 103 QUESTIONS AND ANSWERS|GUARANTEED SUCCESS

marketing activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers; clients, partners, and society at large true the primary focus of marketing is on satisfying customers' needs and wants because they are backed by buying power (creates demand) production philosophy focus on production; works well when demand exceeds supply and when when economies of scale are important (also when customers aren't picky), not widely practiced true avoiding options reduces costs, but avoiding customization means you can produce more of the same product so economies of scale is present, which further reduces the cost product philosophy focus on producing the highest quality goods, even if its not what the customer necessarily wants (better quality doesn't always solve the issue) sales philosophy emphasizes push and hard selling, less focused on customers needs and wants, more for pushing products on customers with aggressive selling. not a good long-term strategy because customers will be unsatisfied and unlikely to come back marketing philosophy achieving long term goals for a company by best serving customers needs and wants (being market-oriented makes companies more successful) societal philosophy companies should be good/beneficial for society and the environment too (customers can be damaging for the environment so their wants aren't always good long-term) customer value the value customers derive from a product or service (people are willing to pay more or full price depending on a company's additional benefits) customer satisfaction the customers evaluation of the extent to which a product or service has met their expectations (when customers are satisfied they are likely to come back which costs less than needing new customers) relationship marketing to develop and enhance the long-term relationship with a customer, requires a company to continuously interact with them strategic planning the process of creating and maintaining a fit between the organization's objectives and resources market penetration a measure of how much a product or service is being used by target customers compared to the total estimated market for that product or service product development a new product is developed to cater to the same market in order to increase revenue diversification a company offers a new product in a new market in order to spread and reduce risks within the company's portfolio. companies typically do this in high growth markets so there is less of a risk market development a strategic step taken by a company to develop the existing marketing instead of looking for a new one ansoffs opportunity matrix matches products with markets through market penetration, market development, product development, and diversification question mark not as dominant at first due to uncertain future but has high market growth rate and low relative market share cash cows don't need significant investment, is a positive cash flow to support other products like question marks and stars stars becomes dominant in market, promising product for the future dogs may provide some cash flows but not excessively, will eventually leave the market and don't require investment divesting getting rid of a product or service that a company no longer needs or wants bcg portfolio matrix a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate marketing plan a document that guides the marketing activities with key elements ge portfolio matrix contains nine cells based on high, medium, and low levels of industry attractiveness and on strong, average, and weak levels to determine the competitive position of a business in it its industry true in the ge portfolio matrix low means to divest, med means to cautiously invest, and high means to invest mission statement answers what business the company is in. the more narrow it is, the more restrictive it is and if it's too broad, the statement will lose meaning swot analysis useful for detecting opportunities or threats in the market and determines how a company can respond to them, looks to marketing environment to evaluate elements that may impact its operations business objectives specifies quantifiable goals that can be measured and are used as benchmarks to assess company effort, guides company's actions (should be realistic and time specific) marketing mix deliver the product that a customer wants, at an appealing price, through channels that are convenient to them and promote them accordingly implementation and control guides a company towards its goals and must review them constantly to update their progress market segmentation the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups target market a set of buyers sharing common needs or characteristics that the company decides to serve product covers intangibles and tangibles place channels that distribute products to customers promotion ads, sales promotion, and publicity (persuasion) price final price, discounts, margins to channels ethics moral principles and values that generally govern the conduct of an individual or group true in order to reduce unethical decisions, have low tolerance for unethical behavior, have ethical behavior from top management, and have a consensus on social norms among managers sustainability goes beyond economic sustainability of corporation, to addressing the problems of the society and caring for our environment corporate social responsibility corporations are responsible for their shareholders (who want a return on their investments). they should keep an eye on the environment while solving society's problems csr pyramid economic, legal, ethical, philanthropic levels green marketing marketing efforts to produce, promote, and reclaim environmentally sensitive products (consumers are willing to pay more for environmentally friendly products) cause related marketing for-profit companies partner with non-profits or contribute to charitable organizations with the intent of doing good for society philanthropic to do good for society and quality of life legal corporations must abide by the law of society economic profits are necessary to survive marketing environment anything that satisfies two conditions: it has a significant impact on the company and the marketer has very little control over it social factors environmental factors that relate to how we function as a society american values self-sufficiency, upward mobility, work ethic, conformity, and equality demographic factors anything related to demography such as age, income, gender, and size of household true baby boomers have a higher density of population of any age group, the highest life expectation of any generation, are well-off, and control 80% of the country's wealth and have the spending power to back that economic factors significant impact on consumer demand and includes income, purchasing power, inflation, and recession technological factors research and stimulating innovation federal legislation regulates markets and protects consumers regulatory agencies restrict price discrimination (FDA and FTC)