MBA 706 CHEN: EXAM 1 QUESTIONS & CORRECT ANSWERS 100%

MBA 706 CHEN: EXAM 1 QUESTIONS & CORRECT ANSWERS 100% “What is Marketing? (list 6) - CORRECT ANSWER - marketing helps create value - marketing satisfies customer needs and wants - marketing entails an exchange - marketing requires decisions on the 4ps - marketing can be performed by individuals & organizations - marketing occurs in different settings" "What is the AMA definition of marketing? - CORRECT ANSWER Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large." "What is Professor Philip Kotler definition of marketing? - CORRECT ANSWER Marketing is: To create, to communicate, and to deliver value to a target market at a profit" "Define "open technology" or "open innovation" - CORRECT ANSWER From Philip Kotler: Find the best ideas, wherever they come from!" "What are the 5 attributes of Marketing Effectiveness that help a firm view its strengths and weaknesses? - CORRECT ANSWER - a customer oriented philosophy - an integrated marketing organization - adequate marketing information - a strategic orientation - operational efficiency" "What is a SWOT analysis? - CORRECT ANSWER strengths, weaknesses, opportunities, threats" "Strengths are areas of distinctive competence that: - CORRECT ANSWER -must always be looked at relative to the competition - if managed properly are the basis for competitive advantage - derive from the marketing asset base" "Weaknesses are areas of disadvantage that: - CORRECT ANSWER - indicate priorities for marketing improvement - highlight the areas and strategies that the planner should avoid" "Threats are trends within the environment with potentially negative impacts that: - CORRECT ANSWER - increase the risks of a strategy - hinder the implementation of strategy - increases the resources required - reduce performance expectations" "Opportunities are environmental trends with positive outcomes that offer scope for higher levels of performance if pursued effectively: - CORRECT ANSWER - highlights new areas for competitive advantage" "Strategies aren't just successful by themselves. The firm will need the capability to execute the strategy. What are examples of organization capability? - CORRECT ANSWER - managerial capabilities - financial capabilities - operational capabilities - distribution capabilities - human resource capability - intangible factors such as brand image" "The methods for developing a sustainable competitive advantage can be divided into 3 main groups: - CORRECT ANSWER -organizational advantages, -departmental and functional advantages, -advantages based on relationships with external bodies" "What does T stand for in PEST? Examples? - CORRECT ANSWER Technological environment" "What are the 5 stages of environmental analysis - CORRECT ANSWER 1. audit of the environment ents of the nature of the environment 3. identification of the key environmental forces ification of the competitive position 5. identification of the principal opportunities and threats" "A process which covers the full spectrum of activities firms use in order to understand environmental changes and their implications. An integral part of the ongoing process by which companies develop, implement, control and review strategies and plans at both the corporate and the business unit levels. - CORRECT ANSWER formal environmental scanning" "What are the 3 approaches to environmental scanning? - CORRECT ANSWER -irregular systems -periodic models -continuous models" "what does the complexity of environmental scanning depend on ? - CORRECT ANSWER - perceptions within the company of the degree of environmental uncertainty - perception's of the degree of environmental complexity" "what levels of management are responsible for environmental scanning - CORRECT ANSWER - line management - strategic planning - a specialist organizational unit" Consequences of mature industries where slowing innovation, extensive product assortment, excess supply, and frugal consumers forces margins to the floor. - CORRECT ANSWER Commoditization" "What are some challenges and opportunities in today's economy? - CORRECT ANSWER 1. Power shift to customers 2. Increase in product selection 3. Audience and media fragmentation 4. Changing value propositions 5. Shift in demand patterns 6. Privacy, security, and ethical concerns 7. Unclear legal jurisdiction" "Type of product: Localities that market themselves to tourists, businesses, etc. - CORRECT ANSWER Places" "Type of product: combination of goods, services, ideas, information, or people to create a single event - CORRECT ANSWER Experiences and Events" "Type of product: stocks, bonds, and real estate - CORRECT ANSWER Real or Financial Property" "Ability of a product to satisfy a customer's needs or wants - CORRECT ANSWER Utility" "Five types of Utility - CORRECT ANSWER 1. Form 2. Time 3. Place 4. Possession 5. Psychological" "Type of Utility: Product contains distinguishing attributes - CORRECT ANSWER Form Utility (Ex: Luxury cars)" "Type of Utility: Product is available when customers want it - CORRECT ANSWER Time Utility (Ex: 24-hour diners)" "Type of Utility: Product is available where customers want it - CORRECT ANSWER Place Utility (Ex: Convenience store, home delivery)" "Type of Utility: Deals with easy transfer of ownership or title - CORRECT ANSWER Possession Utility" "Type of Utility: Product provides a positive experiential attribute that customers find satisfying - CORRECT ANSWER Psychological Utility (Ex: Sporting events)" "A firm's game plan for success - CORRECT ANSWER Strategy" "Focusing on specific markets and the marketing programs that meet their needs - CORRECT ANSWER Tactical Planning" "Instrument that provides an outline of a firm's marketing program - CORRECT ANSWER Marketing Plan" "Type of Marketing Research: Objective review of information pertaining to the firm's current strategy and performance, as well as the current and future availability of resources - CORRECT ANSWER Internal Analysis" "Type of Marketing Research: Analyzing the capabilities, vulnerabilities, and intentions of competing businesses - CORRECT ANSWER Competitive Intelligence" "Type of Marketing Research: Analyzing the economic, political, legal, technological, and cultural events and trends that may affect the future of the organization - CORRECT ANSWER Environmental Scanning" "Type of Marketing Research: Collecting and interpreting internal, competitive, and environmental information - CORRECT ANSWER Situation Analysis" "Something that the firm does better than its competitors that gives it an edge in serving customers' needs - CORRECT ANSWER Competitive Advantage" "Establishing a mental image of a product in the minds of target buyers - CORRECT ANSWER Branding/Positioning" "What are the five P's of a marketing strategy? - CORRECT ANSWER 1. Product 2. Price 3. Place 4. Promotion 5. People" "A firm's obligation to maximize positive impact on society while minimizing negative impact - CORRECT ANSWER Social Responsibility" "Principles and standards that define acceptable conduct in marketing activities - CORRECT ANSWER Marketing Ethics" "Process of executing the marketing plan - CORRECT ANSWER Marketing Implementation" "The implementation phase of a marketing strategy calls into play the 5th P of the marketing program, known as... - CORRECT ANSWER People" "The goal of ____________ ______________ is to complete a large number of discrete exchanges with individual customers. - CORRECT ANSWER Transactional Marketing" "The goal of ___________ _____________ is to develop and maintain long-term, mutually satisfying arrangements between the buyer and seller. - CORRECT ANSWER Relationship Marketing" "Written document providing the blueprint of a firm's marketing activities - CORRECT ANSWER Marketing Plan" "Provides a total integration of efforts that focuses on achieving an area's stated objectives. - CORRECT ANSWER Functional Strategy" "Involves activities that execute the functional area strategy - CORRECT ANSWER Implementation" "All functional plans have two target markets: 1. 2. - CORRECT ANSWER 1. External - customers, investors, suppliers, society 2. Internal - employees, managers, and executives" "The strategic planning process of ______________ & ___________ is designed to keep planned activities on target with goals and objectives. - CORRECT ANSWER Evaluation & Control" "What is the purpose of a marketing plan? - CORRECT ANSWER Serves as a handbook for marketing implementation, evaluation, and control" "Four qualities of a good marketing plan: 1. C 2. F 3. C 4 L - CORRECT ANSWER 1. Comprehensive 2. Flexible 3. Consistent 4. Logical" "What does SWOT stand for? - CORRECT ANSWER strengths, weaknesses, opportunities, threats" "What are the 4 main main structural components of a Marketing Plan - CORRECT ANSWER 1. Marketing Goals & Objectives 2. Marketing Strategy 3. Marketing Implementation 4. Evaluation & Control" "The __________ section of the Marketing Plan outlines how the firm will achieve its marketing objectives. - CORRECT ANSWER Strategy" "In its broadest sense, ___________ ___________ refers to how the firm will manage it's customer relationships. - CORRECT ANSWER Marketing Strategy" "Marketing ___________ involves establishing performance standards, assessing actual performance, and taking corrective action if necessary. - CORRECT ANSWER Control" "The ___________ ______________ of the Marketing Plan determines the estimated cost, sales, and revenues to determine financial projections. - CORRECT ANSWER Financial Assessment" "A systematic examination of the firm's marketing objectives, strategy, and performance. - CORRECT ANSWER Marketing Audit" "________-_________ firms focus on understanding customers in ways that enhance sustainable competitive advantages. - CORRECT ANSWER Market-oriented" "The __________ _____________ is an overview of current objectives, strategy, performance, resources, and organization culture. - CORRECT ANSWER Internal Environment" "___________ ___________ focus on potential buyers, why they buy, and how to convert non-buyers. - CORRECT ANSWER Customer Environment" "The ___________ __________ refers to competition, economic growth and stability, political trends, legal and regulatory issues, and/or tech advancements. - CORRECT ANSWER External Environment" "An analysis that is organized, systematic, supported by sufficient resources, and ongoing. Focuses on tracking internal, customer, and external environments. - CORRECT ANSWER Situation Analysis" "A collection of numbers or facts that have the potential to provide information - CORRECT ANSWER Data" "Data transformed or combined with other data in a manner that makes them useful - CORRECT ANSWER Information" "___________ ____________: Focusing on efficiency of operations and processes, lowering costs, and delivering good value. - CORRECT ANSWER Operational Excellence" "___________ ____________: Focusing on tech, product development - CORRECT ANSWER Product Leadership" "____________ ____________: Focusing on knowing customers, understanding their needs better than the competition. - CORRECT ANSWER Customer Intimacy" "What are four types of strategic efforts? ADTD - CORRECT ANSWER 1. Aggressive 2. Diversification 3. Turnaround 4. Defensive" "Concept that guides a firm as it weaves various marketing elements together into a coherent strategy, tied to competitive advantages - CORRECT ANSWER Strategic Focus" "Identifies the firm's relative performance across its industry's factors of competition. - CORRECT ANSWER Value Curve" "Four Actions Framework consists of what 4 actions? RERC - CORRECT ANSWER 1. Reduce 2. Eliminate 3. Raise 4. Create" "Statements of broad, desired accomplishments expressed in general terms that give direction to a firm's growth and priorities. Should be attainable, consistent, comprehensive, and intangible. - CORRECT ANSWER Marketing Goals" "Specific, quantitative benchmarks that measure progress toward the achievement of marketing goals. - CORRECT ANSWER Marketing Objectives" "CCDVTP Stands for - CORRECT ANSWER This is Professors Philip Kotler definition of marketing which stands for Create, Communicate, and Deliver Value to a target market at a Profit Create Value = product management Communicate Value = Brand Management Deliver Value = Customer Management" "What is the traditionally Marketing Mix? (ORDER IS IMPOTANT) - CORRECT ANSWER The 4Ps, with product being first and the most important - Product - Price - Place - Promotion" "a set of marketing tools that the firm uses to pursue its marketing objectives in the target - CORRECT ANSWER Marketing mix" "If we were to do a mix-and-match of the 4Ps with the 4 verbs from the AMA definition we would get: - CORRECT ANSWER Product -->Create Price --> Exchange Place --> Deliver Promotion -->Communicate" "_______ are the tools that firms can use/manipulate to achieve their goals and are the foundation of the marketing framework - CORRECT ANSWER traditional 4ps" "list some examples of additional 4ps - CORRECT ANSWER personnel, personality of a store/brand people--> employees physical evidence --> inside the store Process Management --) shopping experience" "Decisions on the 4Ps affect ___ buys from the firm and _____ they buy, and ultimately the profitability of the firm. - CORRECT ANSWER who; how many" "In a very simple economic model: a retailer's profits = - CORRECT ANSWER sales revenue - costs" "What is the formula for sales revenue? - CORRECT ANSWER Price * Qty for 1 product" "determined by consumers. They will consider price (budget), product itself (utilities), place (physical energy required), promotion (budget), competitor's offerings, & other factors. - CORRECT ANSWER Quantity" "Costs associated with selling goods - CORRECT ANSWER costs" "What are the differences between customer needs and wants? - CORRECT ANSWER Needs--necessities (water) Wants -- desires (Ferrari)" "Marketing entails an exchange of what? - CORRECT ANSWER Money, goods, information" "what does the external environment influence ? - CORRECT ANSWER consumer behavior, firms decisions on P4, and firm's performance and competitors profitability" "The marketing mix is influenced by - CORRECT ANSWER the external environment(political, environment, social and technological), consumers and competitors" "Competitors are influenced by - CORRECT ANSWER consumers and external environment" "What's new about customer management? - CORRECT ANSWER From Philp Kotler: We want to know the customers--not just have them in a database. We want to co-create our products and ads with our customers!" "What are the 5 stages of the management process? - CORRECT ANSWER •Stage 1: strategic and marketing analysis(where are we now?) •Stage 2: strategic direction and strategy formulation(where do we want to be?) •Stage 3: develop alternatives(how might we get there?) •Stage 4: evaluation of alternatives(which way is best?) •Stage 5: strategy implementation, monitoring, and control.(how can we ensure arrival?)" "What are the 3 aspects of a strategic choice? - CORRECT ANSWER - Generation of strategic options - Evaluation of strategic options - Selection of a preferred strategy" "What are the 3 distinct levels of strategy? (Hofer & Schendel 1978) - CORRECT ANSWER - Corporate strategy (allocation of resources) - Business strategy (competitive position) - Functional level strategy (specific actions)" "Marketing strategy assesses what? (4) - CORRECT ANSWER •Organizational capabilities Threats from environmental forces Competitors' strengths and weaknesses •Customers' needs" "What are the parts of the marketing strategy process - CORRECT ANSWER •Factors affecting strategic situation •Strategic situation determination •Marketing strategy alternatives •Marketing strategy selection(It is a loop)" "What are some examples of forces of change? - CORRECT ANSWER - Faster pace of technology - New and more aggressive competitors - Increased legislative demands - Economic growth/decline - The emergence of new market opportunities - The globalization of markets" "What are some examples of forces against change? - CORRECT ANSWER - Conservative management policies - Managerial adherence to tired formulae - Perceptions of risk - Compromise solutions - Resource implications - Cultural paradigms - Previous failures and mistakes" "list the Marketing Shift of Focus - CORRECT ANSWER - mass marketing - just in time - time based competition - one to one marketing" "focuses on large groups of consumers trying to predict there behavior - CORRECT ANSWER mass marketing" "Taylors products and services in response to the marketing changes - CORRECT ANSWER just-in-time" "focus on tailoring products and services in response to groups and individual consumer needs - CORRECT ANSWER time based competition" "focuses on satisfying indidvual consumer needs and wants - CORRECT ANSWER one to one marketing" ""The means by which a company can identify its own strengths and weaknesses as they relate to external opportunities and threats. It is thus a way of helping management to select a position in that environment based on known factors. - CORRECT ANSWER marketing audit" "What are the elements of a marketing audit? - CORRECT ANSWER -detailed analysis of the external environment and internal situation - objective evaluation of past performance and present activities - clearer identification of future opportunities and threats" "What are examples of organizational advantages? - CORRECT ANSWER - economics of scope and or scale - flexibility - competitive stance - size -speed of response -past performance - finical strengths - patterns of ownership - reputation" "What are examples of departmental and functional advantages? - CORRECT ANSWER - marketing (pricing, sales force, new product skills, customer base and knowledge etc..) - research and development (products technology, patents) -production (technology, experience, economic of scale, product quality etc. - personnel - good management, workforce flexibility" "What are examples of advantages based on relationships with external bodies? - CORRECT ANSWER - customer loyalty - channel control -government assistance - preferential political and legislative treatment - cartels - interorganizational relationships - access to preferential and flexible finical resources beneficial tarrif and non tariff trade barriers" "competence is ___ term - CORRECT ANSWER short" "Competitive advantage ____ over time, _____ to their competitors, ___ absolute - CORRECT ANSWER sustain over time, relative to their competitors, not absolute -Usually firms will have more than 1 competitive advantage in order to succeed in a market. -ex. Walmart, Ikea, Southwest have a sustainable competitive advantages." "What does this quote by Jack Welch mean "When the rate of change inside the company is exceeded by the rate of change outside the company, the end is near." - CORRECT ANSWER No organization exists in a vacuum. In order to succeed, firms need to change with the external environment." "Refers to the limited periods when the fit between the key requirements of a market and the particular competence of a firm competing in that market is at optimum - CORRECT ANSWER strategic windows" "Companies which fail to identify ____ will suffer a loss of opportunity, market share or competitive advantage - CORRECT ANSWER strategic windows -ex. swiss watch industry" "The organization itself, suppliers, distribution network, customers, competitors, and the public. - CORRECT ANSWER micro environment" "Economic, demographic, technological, political, legal, social and cultural factors. - CORRECT ANSWER Marco environment" "What does PEST stand for in the PEST framework for environmental auditing? - CORRECT ANSWER Political/Legal Factors, Economic Factors, Socio-Cultural Factors, Technological Factors" "What does the PEST framework audit? - CORRECT ANSWER environmental audit" "What does P stand for in PEST? Examples? - CORRECT ANSWER Political (and legal) environment Ex. Norway (banned sales promotion), India (food: governmental approval to launch new brands), Philippines (food: low-price alternatives to cater to low-income groups)" "What does E stand for in PEST? Examples? - CORRECT ANSWER Economic (and physical) environments- An increase in real income growth- Continuing inflationary pressures- Changes in savings/debt ratio- Concern over levels of Third World debt- Different consumer expenditure patterns" "What does S stand for in PEST? Examples? - CORRECT ANSWER Social, cultural and demographic environments: size, structure, composition and trends of population .**It is a trend worldwide that there is an older population. In Japan 25% of population i s 65+. Retailers responded by putting smaller local markets in old population spots. (People rely on public transport/walking)" "A customer-centric virtual market that offers closely related products or services belonging to the same industry or diverse set of industries - CORRECT ANSWER Meta Market (Ex: Auto Sales)" "A person or business that provides a single access point for consumers to obtain goods and services from suppliers within a metamarket, as well as offering services such as advice, financing, etc. - CORRECT ANSWER Metamediary (Ex: Zillow)" "Electronic marketplace, unbound by time or space - CORRECT ANSWER Marketspace" "Process of obtaining something of value by offering something in return - CORRECT ANSWER Exchange" "Five conditions of an exchange - CORRECT ANSWER 1. There must be at least two parties 2. Each party should have something that the other party values. 3. Each party must be capable of communication and delivery. 4. Each party must be free to accept or reject the exchange. 5. Each party must believe it is desirable to exchange with the other party." "Something acquired through an exchange to satisfy a need or want - CORRECT ANSWER Product" "Type of product: tangible items - CORRECT ANSWER Goods" "Type of product: Intangible items consisting of acts or deeds - CORRECT ANSWER Services" "Type of product: Concepts aimed a promoting a benefit for the customer - CORRECT ANSWER Ideas" "Type of product: websites, magazines, schools, research firms - CORRECT ANSWER Information" "Type of product: software, music, and movies - CORRECT ANSWER Digital Products" "Type of product: individuals, including athletes and celebrities, that add value to company's offering - CORRECT ANSWER People" "Four main components of a Marketing Plan 1. E 2. S 3. I 4. P - CORRECT ANSWER 1. Explains how the org will achieve its goals 2. Serves as a road map for implementing marketing strategies 3. Informs employees about their roles and functions 4. Provides specifics regarding allocation of resources and marketing activities" "A ___________ ____________ focuses on a firm's resources, strengths, and capabilities vis-à-vis competitive, customer, and environmental issues. - CORRECT ANSWER Situation Analysis" "A _____________ ______________ provides a clear and concise explanation of an organization's reason for existing - CORRECT ANSWER Mission Statement" "Attribute of a Mission Statement that can help establish plans in areas with limited strength - CORRECT ANSWER Width (Broad vs. narrow)" "Attribute of a Mission Statement that refers to the need (or lack of) for frequent modifications - CORRECT ANSWER Stability (Should change the least frequently)" "The central scheme for utilizing and integrating resources in the areas of production, finance, R&D, HR, and marketing to carry out the organization's mission. - CORRECT ANSWER Corporate Strategy (aka Business-Unit Strategy)" "Functional objectives of a strategic planning process include what 3 requirements? - CORRECT ANSWER 1. Expressed in clear, simple terms 2. Written to enable accurate measurement of accomplishments 3. Reconsidered for each planning period" "The ______ model is a tool for analyzing the customer environment. - CORRECT ANSWER 5W Model (who, what, where, when, and why)" "List 4 basic types of competition. BPGT - CORRECT ANSWER 1. Brand 2. Product 3. Generic 4. Total Budget" "Collection of strategic activities that are aimed at marketing a firm, its issues, and its ideals to stakeholders - CORRECT ANSWER Corporate Affairs" "What are 4 secondary information sources? IGBC - CORRECT ANSWER 1. Internal 2. Government 3. Books 4. Commercial data" "What are 4 methods of Primary Data Collection? DFSE - CORRECT ANSWER 1. Direct Observation 2. Focus Groups 3. Surveys 4. Experiments"