MKT 300 Exam 1

  1. Customer Value
    The relationship between benefits and the sacrifice necessary to obtain those benefits.

    Example: Lexus adopted a customer-driven approach, with particular emphasis on service. Lexus stresses product quality with a standard of zero defects in manufacturing. The service quality goal is to treat each customer as one would treat a guest in one's home, to pursue the perfect person-to-person relationship, and to strive to improve continually.
  2. Marketing Concept
    The idea that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives.
  3. Societal Marketing Concept
    The idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives, but also to preserve or enhance individuals' and society's long-term best interests.

    Example: Duracell and Eveready battery companies have reduced the levels of mercury in their batteries and will eventually market mercury-free products.
  4. Marketing Myopia
    Defining a business in terms of good and services rather than in terms of the benefits that customers seek.

    Example: Wrigley defined its mission as a gum manufacturer
  5. Relationship Marketing
    A strategy that focuses on keeping and improving relationships with current customers.
  6. Customer Relationship Management (CRM)
    A company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups.
  7. Knowledge Management
    The process by which learned information from customers is centralized and shared in order to enhance the relationship between customers and the organization
  8. Touch points used to capture customer data
    All areas of a business where customers have contact with the company and data might be gathered.

    • - Customer registering for a particular service
    • - Customer communicating with customer service for product information
    • - Customer completing and returning the warranty information card for a product
    • - Customer talking with salespeople
  9. Data Mining
    Used to find hidden patterns and relationships in the customer data stored in the data warehouse.

    Search the data warehouse, categorize significant characteristics, and develop customer profiles.
  10. Data Mining's Role in Identifying Customers
    Companies must analyze the data to identify and profile the best customers, calculate their lifetime value, and ultimately predict purchasing behavior through statistical modeling.
  11. Lifetime Value of a Customer
    A data manipulation technique that projects the future value of the customer over a period of years using the assumption that marketing to repeat customers is more profitable than marketing to first-time buyers

    It costs more to find a new customer in terms of promotion and gaining trust than to sell more to a customer who is already loyal.
  12. Strategy
    The managerial process of creating and maintaining a fit between the organization's objectives and resources and evolving market opportunities

    • The goal of strategic planning is long-run profitability and growth.
    • Addresses two questions: What is the organization's main activity at a particular time? How will it reach its goals?
  13. Mission Statement and its Usefulness
    A statement of the firm's business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions.

    • Answers the question, "What business are we in?"
    • The way a firm defines its business mission profoundly affects the firm's long-run resource allocation, profitability, and survival.
  14. Difference between market-oriented and product-oriented mission statement
    Product-oriented: Wrigley defining itself as a gum manufacturer

    Market-oriented: Our objective is to increase market share from 30 to 40 percent in 2009 by increasing promotional expenditures by 14 percent
  15. SWOT Analysis
    Identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T)
  16. Competitive Advantage
    The set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition.
  17. Sustainable Competitive Advantage
    An advantage that cannot be copied by the competition
  18. Growth Strategies - Ansoff's strategic opportunity matrix
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  19. SBU (Strategic Business Units)
    Each SBU has its own rate of return on investment, growth potential, and associated risk. Management must find a balance among the SBUs that yields the overall organization's desired growth and profits with an acceptable level of risk.
  20. The BCG Matrix (Portfolio Matrix)
    A tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate.
  21. Star (BCG Matrix)
    Fast-growing market leader. They have large profits but needs lots of cash to finance growth
  22. Cash Cows (BCG Matrix)
    SBU that generates more cash than it needs to maintain its market share. This product has dominant share in a low-growth market
  23. Problem Children (BCG Matrix)
    Also called a question mark - shows rapid growth but poor profit margins. It has a low market share in a high-growth industry.
  24. Dog (BCG Matrix)
    Has low growth potential and a small market share. Most dogs eventually leave the marketplace.
  25. Marketing Plan
    A written document that acts as a guidebook of marketing activities for the marketing manager
  26. Market
    People or organizations with needs or wants and the ability and willingness to buy.
  27. Market Segment
    A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.
  28. Target Market
    A defined group most likely to buy a firm's product.
  29. Marketing Mix
    A unique blend of product, place, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market.
  30. Corporate Social Responsibility
    Business's concern for society's welfare.
  31. External environmental factors that can affect strategy
    Managers must alter the marketing mix because of changes in the environment. They cannot control elements in the external environment that continually mold and reshape the target market, such as:

    Economic, technological, and political factors.
  32. Marketing strategies in times of recession
    • - Improve existing products and introduce new ones
    • - Maintain and expand customer services
    • - Emphasize top-of-the-line products and promote product value
  33. Importance of monitoring the external environment
    Unless marketing managers understand the external environment, the firm cannot intelligently plan for the future. Many organizations assemble a team of specialists to continually collect and evaluate environmental information to identify future market opportunities and threats. Market managers must react to changes in the external environment.
  34. Why companies "go global"
    Adopting a global vision can be very lucrative for a company.
  35. Global Marketing Mix
    Global Marketing Strategy: Product, Place, Promotion, Price

    First step in creating a marketing mix is developing a thorough understanding of the global target market
  36. Tariff
    A tax levied on the goods entering a country.
  37. Dumping
    The sale of an exported product at a price lower than that charged for the same or a like product in the "home" market of the exporter.
  38. Quota
    A limit on the amount of a specific product that can enter a country.

    Companies request quotas as a means of protection from foreign competition.
  39. General facets of the external environment that face global marketers
    • - Culture
    • - Economic and Technological Development
    • - Political Structure and Actions
  40. Strategies used to enter the global marketplace (exporting, licensing, joint venture)
    Exporting - Selling domestically produced products to buyers in another country.

    Licensing - Legal process whereby a licensor agrees to let another firm use its manufacturing process, trademarks, patents, trade secrets, etc.

    Joint Venture - When a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity -- These can be very risky, and many fail.
  41. One Product, One Message
    • Global marketing standardization.
    • Developing a single product for all markets and promoting it the same way all over the world.
  42. Product Adaptation
    Slightly alter a basic product to meet local conditions.
  43. Message Adaptation
    To maintain the same basic product but alter the promotional strategy
  44. Product Invention
    Creating a new product or drastically changing an existing product.
  45. Factors which influence the decision-making process
    • - Cultural
    • - Social
    • - Individual
    • - Psychological
  46. Steps in the decision-making process
    • - Need recognition
    • - Information search
    • - Evaluation of alternatives
    • - Purchase
    • - Post purchase behavior
  47. Culture and sub-culture with respect to consumer decision making
    Culture influences a product's perception and use.

    Language - When translating slogans, product names, etc. a firm must be careful not to convey the wrong message
  48. Social Class in relation to marketing
    • Social class often indicates which medium to use for advertising.
    • Knowing which products appeal to which social classes can help marketers determine where to best distribute their products.
  49. Motivation / Maslow's hierarchy of needs in relation to marketing communications
    Driving forces that cause a person to take action to satisfy specific needs.

    • - Psychological needs: Hunger, thirst
    • - Safety needs: Security, protection
    • - Social needs: Sense of belonging, love
    • - Esteem needs: Self-esteem, recognition, status
    • - Self-actualization needs: Self-development, self-realization
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MKT 300 Exam 1
Study topics for MKT 300 exam 1