MARK 3000 McManus Test One Exam
Questions and Answers
Marketing - -Anticipating (research) and determining the needs/wants of
consumers (target market) and satisfying those needs through the use of the
4 P's (product, promotion, place, price) to create long-term exchanges of
value
- Value - -ratio of what is given up for what is obtained
Exchange of value: both parties must believe they are getting value for an
exchange to take place
- Value is created through the marketing mix (4 P's)
- 4 P's - -Product: creating value
Price: capturing value
Place: delivering value
Promoting: communicating value
- Product: creating value - --Through a variety of offerings; including goods,
services and ideas (ex: don't drink and drive) to satisfy customer needs
- Price: capturing value - -- Price is everything a buyer gives up (money,
time, energy) in exchange for the product
- Place: delivering value - -all activities needed to get the product to the
right customer when the customer wants it
Delivering the value proposition
SUPPLY CHAIN MANAGEMENT
- Promotion: communicating value - -Communication that informs,
persuades, and reminds potential buyers about a product or service
- to influence their opinions or elicit a response
- Corporate Orientations - -Production Oriented
Sales oriented
Market Oriented
Value Based Marketing
- Production Oriented - -Focus is on internal capability and technology
-Key Question: what does the firm do best?
- Sales Oriented - -- focus is on aggressive sales techniques
, - Heavy doses of personal selling and advertising
- Key Question: How can we sell more of what we have?
- Value-Based Marketing Orientation - -Purpose of the organization is to
satisfy the customer's needs/wants, while meeting organizational objectives
- Want to provide more value than competitors
Key Question: what does the customer want?
- Societal Market Org - -Focus on enhancing benefits to society
Key: how do I meet customer needs and benefit society?
- Value Cocreation - -Customers act as collaborators with a manufacturer or
retailer to create the product or service
- marketing concept - -make what you can sell rather than selling what you
can make
- Ford's Market Share Decline (AJC January 2006) - -• The U.S. market share
for the Ford, Lincoln and Mercury brands slid down to 17.2% in 2005, driven
down by Ford's reliance on the manufacturing of SUVs and slow reaction to
the consumers' shift toward fuel-efficient vehicles
• Bill Ford, chairman and CEO of the company founded by his great-
grandfather, said that in the past they used the philosophy of "If we build it,
they will buy it" but now they are shifting towards a menu contingent on
customer demands - TODAY'S AND TOMORROW'S. "We're going to figure out
what people want before they know it"
• Now Ford is super successful
2010 Car of the Year and Truck of the Year
Did not declare bankruptcy or take bailout money
Has won Kelly Blue Book "Best Car Styling Award" for the last 3 years
- Why is Marketing important? - -1. enriches society
2. can be entrepreneurial
3. expands global presence
4. strengthens channel relationships
- What is a marketing strategy? - -- A firm's target market(s)
- A related marketing mix (its 4 P's)
- Designed to provide a sustainable competitive advantage
This is developed through marketing planning
- How to Develop Customer Value - -• *Customer excellence*: people are
very loyal to Nike, Apple - won't switch brands just because of a special sale
• *Operational Excellence*: doing things quicker, better than other
competitors. Example: Amazon
Questions and Answers
Marketing - -Anticipating (research) and determining the needs/wants of
consumers (target market) and satisfying those needs through the use of the
4 P's (product, promotion, place, price) to create long-term exchanges of
value
- Value - -ratio of what is given up for what is obtained
Exchange of value: both parties must believe they are getting value for an
exchange to take place
- Value is created through the marketing mix (4 P's)
- 4 P's - -Product: creating value
Price: capturing value
Place: delivering value
Promoting: communicating value
- Product: creating value - --Through a variety of offerings; including goods,
services and ideas (ex: don't drink and drive) to satisfy customer needs
- Price: capturing value - -- Price is everything a buyer gives up (money,
time, energy) in exchange for the product
- Place: delivering value - -all activities needed to get the product to the
right customer when the customer wants it
Delivering the value proposition
SUPPLY CHAIN MANAGEMENT
- Promotion: communicating value - -Communication that informs,
persuades, and reminds potential buyers about a product or service
- to influence their opinions or elicit a response
- Corporate Orientations - -Production Oriented
Sales oriented
Market Oriented
Value Based Marketing
- Production Oriented - -Focus is on internal capability and technology
-Key Question: what does the firm do best?
- Sales Oriented - -- focus is on aggressive sales techniques
, - Heavy doses of personal selling and advertising
- Key Question: How can we sell more of what we have?
- Value-Based Marketing Orientation - -Purpose of the organization is to
satisfy the customer's needs/wants, while meeting organizational objectives
- Want to provide more value than competitors
Key Question: what does the customer want?
- Societal Market Org - -Focus on enhancing benefits to society
Key: how do I meet customer needs and benefit society?
- Value Cocreation - -Customers act as collaborators with a manufacturer or
retailer to create the product or service
- marketing concept - -make what you can sell rather than selling what you
can make
- Ford's Market Share Decline (AJC January 2006) - -• The U.S. market share
for the Ford, Lincoln and Mercury brands slid down to 17.2% in 2005, driven
down by Ford's reliance on the manufacturing of SUVs and slow reaction to
the consumers' shift toward fuel-efficient vehicles
• Bill Ford, chairman and CEO of the company founded by his great-
grandfather, said that in the past they used the philosophy of "If we build it,
they will buy it" but now they are shifting towards a menu contingent on
customer demands - TODAY'S AND TOMORROW'S. "We're going to figure out
what people want before they know it"
• Now Ford is super successful
2010 Car of the Year and Truck of the Year
Did not declare bankruptcy or take bailout money
Has won Kelly Blue Book "Best Car Styling Award" for the last 3 years
- Why is Marketing important? - -1. enriches society
2. can be entrepreneurial
3. expands global presence
4. strengthens channel relationships
- What is a marketing strategy? - -- A firm's target market(s)
- A related marketing mix (its 4 P's)
- Designed to provide a sustainable competitive advantage
This is developed through marketing planning
- How to Develop Customer Value - -• *Customer excellence*: people are
very loyal to Nike, Apple - won't switch brands just because of a special sale
• *Operational Excellence*: doing things quicker, better than other
competitors. Example: Amazon
