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Questions and Answers
Marketing is solely about selling products to make a profit.
False
One of the primary goals of marketing is to attract new customers by promising superior value.
True
The DESTE model consists of seven different forces that impact the marketing environment.
False
Managing profitable customer relationships focuses only on acquiring new customers.
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Marketing management involves choosing target markets and growing customers through superior customer value.
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The term 'Bottom of the Pyramid' refers to individuals living in relative wealth.
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C.K. Prahalad popularized the concept of the 'Bottom of the Pyramid' to explain opportunities in underserved markets.
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Advertising serves four primary objectives including informative, persuasive, reminder, and comparative.
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Persuasive advertising aims to alter consumer perceptions and promote brand loyalty.
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The 'six pocket syndrome' is a term related to advertising objectives.
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Study Notes
Definition of Marketing
- Marketing involves creating, communicating, delivering, and exchanging offerings with value for customers and society.
- Fundamental definition: "meeting needs profitably."
- Key objectives: attract new customers and retain current customers through satisfaction.
Goals of Marketing
- Twofold goal is to promise superior value to attract new customers and deliver satisfaction to retain existing customers.
- Marketers focus on both customer attraction and retention.
Marketing Management
- Described as the art and science of selecting target markets.
- Emphasizes building and maintaining superior customer value.
Marketing Environment
- The macro environment consists of six forces: Demographic, Economic, Political, Ecological, Socio-Cultural, and Technological (DESTEP/DEPEST).
Marketing Mix (Tradition)
- Key elements of the marketing mix known as the 7 P's:
- Product
- Price
- Place
- Promotion
- People
- Process
- Physical Evidence
- The concept of the Bottom of the Pyramid (BOP) highlights opportunities within underserved markets.
Advertising Objectives
- Three primary objectives of advertising:
- Informative Advertising: Raises awareness and educates consumers about products and benefits.
- Persuasive Advertising: Aims to convince consumers and enhance brand image.
- Reminder Advertising: Reinforces product awareness and recalls features and benefits.
Performance Marketing
- Focus on measuring both financial and non-financial returns, such as customer satisfaction and market share.
- Emphasis on legal, ethical, social, and environmental impacts of marketing practices.
Relationship Levels in Marketing
- Basic Relationships: Established through brand-building and general marketing efforts.
- Full Partnerships: Formed with key customers, often in high-margin markets, involving intensive collaboration.
- Partner Relationship Management fosters cross-departmental collaboration to enhance customer value.
Mission Statements
- Companies develop mission statements to ensure shared purpose and strategic direction.
- Avoid myopic definitions tied solely to products; embrace a customer-satisfaction process approach.
Market vs. Product Orientation
- Transitioning from product-oriented to market-oriented views opens growth opportunities by focusing on customer needs.
Boston Consulting Group (BCG) Matrix
- Four types of Strategic Business Units (SBUs):
- Stars: High-growth, high-share requiring significant investment.
- Cash Cows: Low-growth, high-share needing less investment.
- Question Marks: Low-share in high-growth markets needing substantial cash.
- Dogs: Low-growth, low-share that may sustain but lack potential for significant revenue.
Business Definition Dimensions
- Businesses can define themselves through:
- Customer Groups
- Customer Needs
- Technology
Characteristics of Strategic Business Units (SBUs)
- An SBU operates independently with its own competitors and is responsible for strategic planning and profitability.
Strategic Planning Gap
- Assessment of growth opportunities includes planning new businesses and the termination of older ones.
- Identifying sales gaps assists in strategy development for future growth.
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Description
This quiz covers the foundational concepts of marketing, including its definition, goals, management, and the marketing environment. Understand the key elements of the marketing mix and how they contribute to delivering value to customers. Test your knowledge on the principles that drive successful marketing strategies.
