Marketing test 1

the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return
create value for customers and build customer relationships
understand the marketplace and customer needs and wants, design a customer-driven marketing strategy, construct an integrated marketing program that delivers superior value, build profitable relationships and create customer delight.
states of felt deprivation
the form human needs take as they are shaped by culture and individual personality
human wants that are backed by buying power
market offerings
some combination of products, services, information or experiences offered to a market to satisfy a need or want
marketing myopia
the mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products
the act of obtaining a desired object from someone by offering something in return
the set of all actual and potential buyers of a product or service.
marketing management
the art and science of choosing target markets and building profitable relationships with them
production concept
idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency
product concept
the idea that consumers will favor products that offer the most quality, performance, and features; therefore, the organization should devote its energy to making continuous product improvements
selling concept
the idea that consumers will not buy enough of the firm’s products unless the firm undertakes a large-scale selling and promotion effort
marketing concept
a philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.
societal marketing concept
idea that a company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests
customer relationship management
overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
customer-perceived value
the customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers
customer satisfaction
extent to which a product’s perceived performance matches a buyer’s expectations
customer-engagement marketing
making the brand a meaningful part of consumers’ conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences, and community
consumer-generated marketing
brand exchanges created by consumers themselves-both invited and uninvited-by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers
partner relationship management
working closely with partners in other company departments and outside the company to jointly bring greater value to customers
customer lifetime value
the value of the entire stream of purchases a customer makes over a lifetime of patronage
share of customer
the portion of the customer’s purchasing that a company gets in its product categories.
digital and social media marketing
using digital marketing tools such as web sites, social media, mobile apps and ads, online video, email and blogs that engage consumers anywhere, at any time, via their digital devices
strategic planning
the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities
mission statement
a statement of the organizations purpose- what it wants to accomplish in the larger environment.
business portfolio
the collection of businesses and products that make up the company
portfolio analysis
the process by which management evaluates the products and businesses that make up the company
growth-share matrix
a portfolio-planning method that evaluates a company’s SBU’s in terms of market growth rate and relative market share
product/market expansion grid
a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development or diversification
market penetration
company growth by increasing sales of current products to current market segments without changing the product.
market development
company growth by identifying and developing new market segments for current company products
product development
company growth by offering modified or new products to current market segments
company growth through starting up or acquiring business outside the company’s current products and markets
value chain
the series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products
value delivery network
the network made up of the company, its suppliers, its distributors, and ultimately, its customers who partner with each other to improve the performance of the entire system
marketing strategy
the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships
market segmentation
dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs
market segment
a group of consumers who respond in a similar way to a given set of marketing efforts
market targeting
the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter
arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
actually differentiating the market offering to create superior customer value
marketing mix
the set of tactical marketing tools-product, price, place, and promotion that the firm blends to produce the response it wants in the target market
the goods-and-services combination the company offers to the target market.
the amount of money customers must pay to obtain the product
includes company activities that make the product available to target consumers
refers to activities that communicate the merits of the product and persuade target customers to buy it
SWOT analysis
an overall evaluation of the company’s strengths (S), weakness (w), opportunities (o) and threats (T)
marketing implementation
turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives
executive summary, current marketing situation, threats and opportunities analysis, objectives and issues, marketing strategy, action programs, budgets, controls
contents of a marketing plan
market description
defines the market and major segments and then reviews customer needs and factors in the marketing environment that may affect the major products in the product line
product review
shows sales, prices, and gross margins of the major products in the product line
identifies major competitors and assesses their market positions and strategies for product quality, pricing, distribution and promotion
evaluates recent sales trends and other developments in major dis
marketing control
measuring and evaluating the results of marketing strategies and plans and taking corrective action to endure that the objectives are achieved.
marketing return on investment or marketing ROI
the net return from a marketing investment divided by the cost of marketing investment
it focuses on the experience of the customer
how does the new concept of marketing differ from the old concept of marketing?
the marketing mix
selling and advertising are a part of a larger set of marketing tools that work together to satisfy customer needs and build customer relationships known as
determine who in the community wants or needs a jump rope
julie’s jump rope emporium is a brand new company. From a marketing standpoint, what is the FIRST thing julies jump rope emporium needs to do?
they work in tandem with developing good customer relations
what is the importance of selling and advertising in marketing
target marketing
when a company chooses a group of customers to serve, it is engaging in which of the following
the act of obtaining a desired object from someone by offering something in return is known as which of the following
Follow a product or marketing concept
Ethel and Jan have just started a new company, Jantel, Inc., and are having trouble deciding which marketing path to take to drive sales. Ethel believes they should follow a make-and-sell philosophy that focuses on improving their product, where Jan belives they should be more customer-oriented and find the right products for their customers. which of the following BEST describes this situation
Market exchange
a local drama club wants to increase the membership and attendance at its performances. To do so, it hosts free shows starts poetry reading nights, and sends volunteers to the local high school. what is the drama club engaging in?
needs are satisfied by wants, and buying power converts wants into demand
how do market demands relate to needs and wants
they focus more on products than to the customer’s underlying need
what is the main problem that sellers suffering from marketing myopia face
Price, promotion, place, product
what are the 4 P’s of the marketing mix?
frequency marketing program
asher airlines has instituted a loyalty rewards program that rewards customers with seat upgrades and free miles for the continued patronage. what customer relationship tool is asher airlines using?
edward’s earthware attempts to make its pottery in a way that satisfies customers but is also environmentally friendly and sustainable over the long term
which of the following scenarios BEST describes the societal marketing concept
to ensure that the company serves as many customers as it can and as well as it can
why is good marketing management critical
the customer’s opinion of what constitutes value
what is MOST likely to cause a variation in customer-perceived value
receive value from customers
the ultimate goal of the marketing process is to do which of the following?
scott frost has been coming to aldwin’s diner for 20 years and refuses to go anywhere else joseph, the owner of aldwin’s loves scott’s loyalty but admits he purchases only a cup of coffee each visit. scott would best be described as which of the following
customer equity
bertram’s beer structures its company in such a way as to encourage its most profitable older customers to remain loyal while also targeting a new generation of customers. what is bertram’s beer attempting to build?
hand pick the most profitable customers and allow them more input
which of the following describes the current trend in business regarding relationships with customers
produce high customer equity
what is the ultimate aim of customer relationship management
practice caring capitalism, seek ways to profit by serving the long run interests of customers, help protect natural environment, deliver value in a socially and environmentally responsible way
name all of the aspects of sustainable marketing
not for profit marketing
vaughns video has suffered in the current economy because fewer people have the money for videos and because fewer people use the technology, given the advance of online streaming sites such as youtube and hulu. The videos Vaughn’s video does sell are often out priced by versions coming from china or Taiwan or they are accused of being damaging to the environment. which of the following marketing impacts has Not affected vaughns video
the internet has allowed consumers to take marketing content and share it
how has the internet MOST affected companies and customers
consumers are showing an enthusiasm for frugality
how has the great recession of 2008-2009 affected customers attitudes
define company mission, set company objectives, design business portfolio, planning marketing and other functional strategies
steps in strategic planning
growth share matrix
a portfolio planning method that evaluates a company’s SBUs in terms of market growth rate and relative market share
high growth, high share business or products
cash cows
low growth, high share businesses or products
question marks
low share business units in high growth markets
low growth low share business and products
product/market expansion grid
a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification
market penetration
company growth by increasing sales of current products to current market segments without changing the product
market development
company growth by identifying and developing new market segments for current company products
product development
company growth by offering modified or new products to current market segments
company growth through starting up or acquiring businesses outside the company’s current products and markets
customer solution, customer cost, convenience, communication
determine your company’s goals and objectives
you are managing a business that is in the process of strategic planning. you have devleoped a mission statement and have ensured that it is both measurable and motivational. what is the next step for you?
strategic plans focus on adapting to the current business enviornment
which of the following best describes a difference between annual and long-range plans versus strategic plans
the company will lose money and begin to decline
a company begins to lose market share with its cash cows, which start to become question marks or dogs. what is likely to happen to the company if nothing is done?
to identify company growth opportunities
what is the purpose of a product or market expansion grid
the company’s value chain
you are a manager of a company that is doing poorly in the marketplace because of problems with the way the company operates. you attempt to change your internal operations so that everyone contributes to the overall mission of the company which of the following are you, as the manager, making changes to?
a breakdown in its partner relationship management
freds fireplaces has been having trouble getting its products and advertising out in a timely manner. the advertising department keeps blaming the production department, saying that they do not have timely updates about new product features, which hinders their ability to properly advertise. the production department blames the advertising department complaining that they are not effectively advertising the benefits of the new features. what is fred’s fireplaces experiencing?
market targeting
a company analyzes its resources and decides to offer a limited set of products to a wide variety of customers. in which of the following is this company engaging?
market segment
joe, lisa, eva, and darell all love the same things. they all eat quesadillas, watch horror movies, and wear jeans. they believe in ghosts and distrust religion. joe, lisa, eva and darrell could be considered which of the following
geographic organization
save money bank is a growing company that has locations in 43 states and 16 foreign countries. it is looking to expand into more national and international markets. which marking organization would best suit save money bank?
an adequate marketing ROI
heyry’s hair club spent millions of dollars on its advertising budget during the last fiscal year in an attempt to take market share from the men’s hair club. however, at the end of the year henry’s hair club did not make any additional profits or take any additional market share. why did henrys hair club fail to achieve?
marketing goals
Attract new customers by promising superior value
Keep and grow current customers by delivering satisfaction
traditional market view
View – Making a sale
Abundance of products in the nearby shopping centers
Television, magazine, and direct-mail ads
contemporary market view
View – Satisfying customer needs
Imaginative Web sites and mobile phone apps, blogs, online videos, and social media
Reach customers directly, personally, and interactively
customer needs and wants, design customer driven market strategy, construct integrated marketing program, build profitable relationships
The marketing process: creating and capturing customer value