H1 and H2

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary goal of marketing?

To maximize profit for the organization

To maintain existing relationships with suppliers

To innovate products without considering consumer feedback

To understand and meet customer needs to create value (correct)

Which of the following is NOT a buying role of consumers?

Payer

Influencer

Contributor (correct)

Initiator

What defines market orientation in a company?

A focus on reducing production costs

An organization-wide belief in delivering customer value (correct)

Creating products that do not require consumer feedback

The ability to predict market trends without research

How does customer centricity differ from general marketing strategies?

It targets a specific group of loyal customers Signup and view all the answers

What role does psychological influence play in marketing?

It includes understanding consumer behavior and motivations Signup and view all the answers

Which application of marketing is an example of a service?

Banking Signup and view all the answers

What factor increases a buyer's bargaining power?

Ability to backward integrate Signup and view all the answers

Which best describes the 'Blue Ocean Strategy'?

Creating uncontested market space Signup and view all the answers

Which of the following best describes the concept of exchange in marketing?

Gaining an object from someone by offering something in return Signup and view all the answers

What is one of the influences of industrial economics on marketing?

Theories of income distribution and monopoly Signup and view all the answers

In the context of the Boston box, which category represents offerings with high market share but requiring significant investment?

Stars Signup and view all the answers

What is a primary goal of a marketing audit?

Evaluate marketing health and identify weaknesses Signup and view all the answers

Which term refers to the segment of an organization that operates independently with its own mission and objectives?

Strategic Business Unit (SBU) Signup and view all the answers

What is the role of price-sensitivity in buyer behavior?

Measures how responsive buyers are to price changes Signup and view all the answers

Which category in the Boston box typically generates negative cash flow?

Dogs Signup and view all the answers

What does the marketing performance metric aim to achieve?

Track the performance of marketing campaigns Signup and view all the answers

What is the primary focus of sales compared to marketing?

Customer acquisition Signup and view all the answers

Which aspect of marketing is primarily concerned with generating customer insights?

Marketing research Signup and view all the answers

Which of the following factors is NOT considered part of the economic environment?

Cultural norms and values Signup and view all the answers

What does the term 'global consumer culture' refer to?

A unified consumption experience shared across different cultures Signup and view all the answers

What does customer value primarily depend on?

The perceived benefits versus costs Signup and view all the answers

Which of the following is NOT a component of the extended marketing mix?

Perception Signup and view all the answers

Which of the following is NOT a green marketing strategy?

Aggressive profit maximization Signup and view all the answers

Which benefit of relationship marketing highlights its focus on consumer retention?

Lower marketing costs Signup and view all the answers

Which component of the political-legal environment refers to how companies influence regulations?

Lobbying Signup and view all the answers

What does CRM stand for in marketing?

Customer Relationship Management Signup and view all the answers

What does the term 'glocalization' refer to in the context of consumer culture?

Adapting global products to meet local tastes Signup and view all the answers

What is a key characteristic of service-dominant logic?

Services only become valuable upon use by the consumer Signup and view all the answers

In Porter’s five forces model, which factor pertains to the threat of new competitors entering the market?

Economies of scale Signup and view all the answers

Which of the following is a component of the socio-cultural environment affecting consumer behaviors?

Cultural norms Signup and view all the answers

What is NOT considered an outcome of creating customer value?

Negative word-of-mouth Signup and view all the answers

What term describes innovations that create new market and value networks, disrupting existing ones?

Disruptive innovation Signup and view all the answers

Which element of the marketing mix focuses on how a product is delivered to customers?

Place Signup and view all the answers

Which of the following describes the relationship between suppliers and companies according to the bargaining power of suppliers?

More options typically lead to lower supplier power Signup and view all the answers

What is the primary purpose of environmental scanning in marketing?

To gather data on external factors affecting business Signup and view all the answers

What is the primary concern of the ecological environment as outlined in the content?

Consumer concerns about companies' environmental impacts Signup and view all the answers

Which of the following factors does NOT typically affect customer behavior?

Legal regulations Signup and view all the answers

What is the primary role of context marketing?

Delivering messages based on consumer behavior and situation Signup and view all the answers

What role do intermediaries play in the performance environment?

They serve as direct connections between producers and consumers Signup and view all the answers

Which is a defining characteristic of co-creation in marketing?

Involvement of consumers in the design process Signup and view all the answers

In the context of industry analysis, what does 'internal rivalry' refer to?

Competition among existing companies in the industry Signup and view all the answers

Which of the following is NOT a factor affecting buyer bargaining power?

Supplier loyalty Signup and view all the answers

What distinguishes the traditional marketing approach from relationship marketing?

Focus on acquiring new customers rather than retaining them Signup and view all the answers

Study Notes

Marketing Principles and Practice

Marketing is a social and managerial process focusing on understanding and meeting customer needs to create value. It builds and maintains relationships with stakeholders.
Exchange is obtaining a desired object from someone by offering something in return.
Marketing applications encompass physical products, services, retail, experiences, events, media, places, ideas, charities, and people.

Customer vs. Consumer

Different roles in the buying process:
- Initiator: starts the idea
- Influencer: persuades
- Decider: final decision-maker
- Buyer: makes the purchase
- Payer: finances the purchase
- User: consumes the product
- Gatekeeper: controls access to the decision process
Example: School director decides on party decorations and assigns Amelia to make the purchase. Decider: director, Buyer: Amelia, Payer: school.

Market Orientation

Market orientation focuses on understanding customer needs and desires to define new products.
A market-oriented company prioritizes customer needs.
Components of market orientation:
- Organization-wide belief in delivering customer value.
- Understanding customer needs better than customers themselves.
- Creating products meeting existing and latent needs.
Customer centricity: targeting loyal customer segments, not pleasing everyone.

Marketing's Intellectual Roots

Influences include industrial economics (supply/demand, income distribution, monopoly), psychology (consumer behaviour, motivation, persuasion), sociology (group behaviour, communication), anthropology (qualitative research), and computer science (digitalization).

Sales vs. Marketing

Sales: product-centric, short-term focus on acquiring customers (product push).
Marketing: customer-centric, long-term focus on value and demand stimulation (product pull).
Marketing aims for selling to become unnecessary.

What Marketers Do

Place customers at the center of the organization.
Marketers generate customer insights, develop marketing strategy, but don't control all aspects of the marketing mix.
Marketing involves all organizational departments.

Marketing as Exchange

Exchange results in value creation, providing more choices.
Customer value: assessment of a product's ability to meet needs, determined by the perceived benefits vs. costs.
Exchange of value relates to trading money for services or goods.
Outcomes include repeat purchases, positive word-of-mouth, loyalty increase, market share growth, and increased customer equity.

Marketing Mix (4Ps)

Product
Price
Place (distribution)
Promotion

Extended Marketing Mix (7Ps)

Product
Price
Place
Promotion
Physical Evidence (tangible aspects)
Process (smooth delivery)
People (interactions)

Context Marketing

Delivers messages based on customer situation and behavior.
Key elements: real-time data, personalization, relevance, timing, and channels.

Relationship Marketing

Shift from acquiring to retaining customers.
Customer retention is more valuable than acquisition.
Loyal customers increase purchases, are less expensive to promote, and refer others.

CRM (Customer Relationship Management)

Acquires detailed customer information to manage relationships.
Touch points are interactions with the brand.

Marketing Automation vs. CRM

Marketing automation automates marketing tasks and measures interactions.
CRM precedes marketing automation.

Selective Relationship Management

Focusing on high-value customers.

Customer Lifetime Value

Prediction of total value from a customer relationship.

Service-Dominant Logic

Value of a product/service is realized during consumption.

Co-creation

Consumers contribute to product/service design.

Marketing's Impact on Society

Marketing can be criticized for ethical concerns, manipulation, and creating artificial wants.

The Marketing Environment

Actors and influences outside marketing affecting relationships.
Three levels of analysis.

Understanding the External Environment

Environmental scanning gathers data on external factors influencing the organization.

Demographic Environment

Changing population characteristics (size, density, age, location, income).

Economic Environment

Factors affecting consumer spending (income, GDP, debt).

Socio-cultural Environment

Values, perceptions, and behaviors of society.
Global consumer culture: standardized brands and products across cultures.
- Glocalization: adapting global strategies to local markets.
- Health and fitness: growing consumer interest.

Technological Environment

Forces creating new technologies, products, and market opportunities.
Disruptive innovation creates new markets and displaces existing ones.

Ecological Environment

Changes in sustainability concerns.
- Consumer awareness about environmental impact.
- Government regulations and policies affecting sustainability.
- 4 Green Marketing Strategies: Eco-efficiency, Beyond Compliance Leadership, Eco-Branding, Environmental Cost Leadership.

Political-legal Environment

Laws, government agencies, and pressure groups impacting organizations.
Business-government relations influence competitive advantage.
Ethical and social responsibility concerns.
Trade relationships, lobbying, and public relations.

Understanding the Performance Environment (Micro-environment)

Competitors, suppliers, intermediaries, and stakeholders shape business operations.
Intermediaries (resellers, logistics providers, marketing services, financial intermediaries) connect companies with customers.
Stakeholders have interests in the organization's operations.

Analyzing Industries (Porter's Five Forces)

Threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitutes, rivalry among existing competitors.

Competitors

Understanding competitor goals, strengths, weaknesses, and responses to changes.

Blue Ocean Strategy

Creating new market spaces in previously uncontested areas.

Understanding the Internal Environment

Factors within the organization impacting operations, performance, and culture.

Strategic Business Units (SBUs)

Independent parts of an organization with specific missions and objectives.

Boston Box

Visual tool analyzing cash flow and investments for SBUs (Stars, Question Marks, Cash Cows, Dogs).

Marketing Audit

Holistic review of the marketing environment to identify strengths and weaknesses.
Involves performance metrics to track campaign effectiveness.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.