Term
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Definition
| The process of creating, distributing, promoting, and pricing [goods, services, and ideas] (products) to facilitate satisfying exchange relationships with customers and develop and maintain favorable realtionships with stakeholders in a dynamic environment. |
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Term
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Definition
| The purchasers of organizations' products; the focal point of all marketing activities. |
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Term
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Definition
| The group of customers on which marketing efforts are focused. |
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Term
marketing mix
OR
decision variables |
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Definition
Four marketing activities--product, distribution, promotion, and pricing--that a firm can control to meet the needs of customers wihtin its target markets.
*Organized around the customer! |
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Term
| The essence of marketing: |
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Definition
| to develop satisfying exchange relationships from which both customers and marketers benefit. |
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Term
| What is an example of an absolute customer focused company? |
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Definition
| The Walt Disney Company; it is in the business of making people happy not in the business of establishing theme parks. |
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Term
| What is an example of a target market being defined to begin making a sale/profit? |
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Definition
| Leatherman's Personal Survival Tool because before defining the target market, neither the knife business nor the tool companies would want to buy this tool. |
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Term
| What is the primary goal of a marketing manager? |
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Definition
| to create and maintain the right mix of the elements that make up the "marketing mix" to satisfy customers' needs for a general product type. |
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Term
| What do marketers need to do before developing a marketing mix? |
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Definition
| They must collect in-depth, up-to-date information about customer needs to better understand the target market. Information such as, age, income, ethnicity, gender, and educational level; their preferences for product features; their attitudes toward competitors' products; and the frequency with which they use the product. |
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Term
| In the marketing mix, what does the product variable deal with? |
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Definition
with researching customers' needs and wants --> then designing a product that satisfies them.
However, the actual production of tangible goods is not a marketing activity. |
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Term
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Definition
| a good, a service, or an idea |
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Term
| What is a good and what are some examples? |
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Definition
A good is a physical entity that can be touched.
Ex: A Toyota Yaris, an iPod, a Duracell battery, and even a puppy available for adoption at an animal shelter. |
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Term
| What is a service and what are some examples? |
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Definition
A service is the application of human and mechanical efforts to people or objects to provide intangible benefits to customers.
Ex: Air travel, dry cleaning, hair cutting, banking, insurance, medical care, and day care. |
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Term
| What is included when refering to an idea and what are some examples? |
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Definition
Ideas include concepts, philosophies, images, and issues.
Ex: marriage counselor, for a fee, gives spouses ideas to help imporve their relationship. Also, other marketers of ideas include: political parties, churches, and schools. |
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Term
| In the marketing mix/decision variables, what does the product variable also involve? |
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Definition
| It involves creating or modifying brand names and packaging & may also inculde desicions regarding warranty and repair services. |
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Term
| Why are product variable decisions and related activities important? |
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Definition
| because they are directly involved in creating products that address customers' needs and wants. |
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Term
| What must marketers do to maintain an assortment of products that help an organization achieve its goals? |
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Definition
| Marketers must develop new products, modify existing ones, and eliminate those that no longer satisfy enough buyers or that yield unacceptable profits. |
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Term
| Successful marketing efforts result in: |
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Definition
products that become a part of everyday life.
Ex: Visa credit cards, Tylenol pain relievers, Coca-Cola products, and/or 3M Post-It Notes. |
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Term
| To satisfy customers, products must be available at: |
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Definition
at the right time and in convenient locations.
Ex: Starbucks is opening outlets on college campuses, including student centers and libraries, to reach more customers in places where they might need a caffeine boost. |
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Term
| What is involved when dealing with the distribution variable, from the marketing mix? |
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Definition
| Marketing managers must make products available in the quantities desired to as many target market customers as possible--keeping total inventory, transportation, and storage costs as low as possible. Also, they may select and motivate intermediaries (wholesalers and retailers), establish and maintain inventory control procedures, and develop and manage transportation and storage systems. |
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Term
| What has influenced the distribution variable dramatically? |
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Definition
| The internet and other technologies because companies can now make their products available throughout the world without maintaining facilities in each country. |
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Term
| In the marketing mix, the promotion variable relates to what sort of activities? |
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Definition
| to activities used to inform individuals or groups about the organization and its (new or existing) products; aim at increasing public awareness. Ex: Del Monte Foods used humorous TV commercials, a traveling bus tour, and a new website (SmoochablePooch.com) to introduce its new Kibbles 'n Bits Brushing Bites dog treats, which keep dogs' teeth clean and their breath fresh. |
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Term
| For the marketing mix, what else can promotional activities do? |
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Definition
| they can educate customers about product features or urge people to take a particular stance on a political or social issue, such as smoking or drug abuse AND can also help sustain interest in established products that have been available for decades, such as Arm & Hammer baking soda or Ivory soap. |
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Term
| In the marketing mix, what does the price variable relates to? |
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Definition
| It relates to decisions and actions associated with establishing pricing objectives and policies and with determining product prices. |
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Term
| Why is price a critical component of the marketing mix? |
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Definition
| It is a critical component of the marketing mix because cusotmers are concerned about the value obtained in an exchange. |
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Term
What is the price variable often used as and what can be used competively to establish a product's image?
Give an example of the former. |
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Definition
The price variable is often used as a competitive tool and HIGH prices can be used competitively to establish a product's image.
Ex: Waterman and Mont Blanc pens have an image of high quality and high price that has given them significant status. |
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Term
Eventhough the marketing mix variables are often viewed as controllable b/c they can b modified, there are limits to how much marketing managers can alter them.
What are the 3 factors that may prevent a manager from adjusting prices frequently/significantly?
What 3 product features cannot b altered very often due to the high cost for the manager?
What about promotional campaigns & methods used to distribute products ordinarily? |
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Definition
1. Economic conditions, 2. competitive structure, or
3. government regulations.
1. size, 2. shape, and 3. design of most tangible goods.
These cannot be rewritten or revamped overnight. |
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Term
| Individuals and organizations engage in marketing to facilitate __________ which means ...? |
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Definition
| exchanges--the provision (supplying) or transfer of goods, services, or ideas (any product) in return for something of value. |
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Term
| What are the four conditions that must exist for an exchange to take place? |
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Definition
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Two or more individuals, groups, or organizations must participate, and each must posses soemthing of value that the other party desires.
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The exchange should provide a benefit or satisfaction to both parties in the transaction.
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Each party must have confidence in the promise of the "something of value" held by the other.
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To build trust, the parties to the exchange must meet expectations.
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Term
| Why must marketers be concerned with also building relationships with relevant stakeholders? |
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Definition
Because stakeholders have the power to provide or withdraw needed resources or influence customer opinion about a firm's marketing strategy and products.
Favorable relations with them is therefore, crucial to the long-term growth of an organization and its products. |
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Term
| What are the 3 ways that the marketing environment affects a marketer's ability to facilitate exchanges? |
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Definition
- They influence customers by affecting their lifestyles, standards of living, and preferences and needs for products.
- Marketing environment forces help determine whether and how a marketing manager can perform certain marketing activities.
- Environmental forces may affect a marketing manager's decisions and actions by influencing buyers' reactions to the firm's marketing mix.
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Term
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Definition
| a philosophy that an organization should try to provide products that satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals. This management philosophy that guides an organization's overall activities and affects all organizational activities--not just marketing--requires that the production, finance, accounting, human resources, and the marketing departments work together! |
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Term
| How can an organization implement the marketing concept? |
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Definition
An organization strives to determine what buyers want and uses this information to develop satisfying products by focusing on:
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customer analysis,
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competitor anallysis,
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& integration of the firm's resources to provide customer value and satisfaction as well as generate long-term profits.
The firm must also continue to alter, adapt, and develop products to keep pace with customers' changing desires and preferences. |
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Term
| During what century was there a strong demand for manufactured goods and was therefore a production orientation-- there was electricity, rail trasportation, division of labor, assembly lines, and mass production? |
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Definition
| During the 2nd half of the 19th Century, when the Industrial Revolution was in full swing in the U.S. |
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Term
| When was there a sales orientation where businesses viewed sales as the major means of increasing profits? |
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Definition
| From the mid 1920s to the early 1950s. |
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Term
| After the sales orientation, businesses, and many others since, found they must first determine what customers want and then produce these products, rather than make the products first and then try to convince customers they needed them...what is this era that U.S. businesses entered into? |
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Definition
| By the early 1950s, U.S. businesses entered into the marketing eara of marketing orientation which requires the "organiztionwide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across departments, and organizationwide responsiveness to it." aka: an organizationwide commitment to researching and responding to customer needs. |
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Term
| What are 6 values required by organizations that want to become more marketing oriented? |
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Definition
- Trust
- Openness
- Honoring promises
- Respect
- Collaboration
- Recognizing the market as the raison d'etre
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Term
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Definition
| refers to the "long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges." It continually deepens the buyer's trust in the company, which, as the customer's confidence grows in turn increases the firm's understanding of the customer's needs. |
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Term
| customer-centric marketing |
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Definition
| developing collaborative relationships with customers based on focusing on their individual needs and concerns. Here the individual is the focus and there is a "sense-and-respond" approach rather than a produce-and-sell approach. |
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Term
| CRM = customer relationship management |
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Definition
| using information about customers to create marketing strategies that develop and sustain desirable customer relationships. By increasing customer value over time, organizations try to retain and increase long-term profitability through customer loyalty. |
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Term
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Definition
A customer's subjective assessment of benefits relative to cost in determining the worth of a product.
*customer value = customer benefits - customer costs* |
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