87 Questions
Which of the following is NOT considered a marketing entity according to the text?
Ideas
What is the underlying cause of negative demand according to the text?
Dislike of the product
What is the marketing planning process composed of according to the text?
All of the above
Which concept holds that customers prefer products that are widely available and inexpensive?
The Production Concept
Which concept focuses on finding the right products for customers?
The Marketing Concept
Which concept emphasizes building mutually satisfying long-term relationships with key constituants?
Relationship Marketing
Which concept considers everything about the company and customers in marketing?
The Holistic Marketing Concept
Which of the following is NOT one of the phases in the value delivery process?
Evaluating the value
What are the primary activities in the value chain?
Bringing materials in, converting materials into product, shipping out product, marketing, service
What is the purpose of the market sensing process?
To gather and strategize market information
What is the purpose of the customer relationship management process?
To build a deeper understanding and relationship with individual customers
Which one of these is a key characteristic of a good mission statement?
It defines the competitive spheres of the company
What are the three dimensions a business can define itself in terms of?
Customer groups, customer needs, and technology
What is the purpose of establishing strategic business units (SBUs)?
To plan and manage each business separately
Which model classifies SBUs based on their competitive advantage and industry attractiveness?
GE/Mckinsey model
Which one of these is NOT a source of marketing opportunities?
Introducing a new capability
Which one of these is NOT a step in evaluating opportunities using Market Opportunity analyses (MOA)?
Identifying the key macro- and microenvironment factors affecting the company's ability to earn profits
Which one of these is NOT a part of the business unit strategic planning process?
Market Opportunity analyses (MOA)
What are the four criteria that the specific goals for the planning period must meet?
They must be arrange hierarchically, from most to least important; They should be quantitative whenever possible; They should be realistic - from opportunities and strengths; They need to be consistent - can't simultaneously grow sales and profit
What are the three generic strategies mentioned in the text?
Overall cost leadership; Differentiation; Focus
What are the four categories of strategic alliances mentioned in the text?
Product or service alliances; Promotional alliances; Logistics alliances; Pricing collaborations
What are the two components of successful business practice mentioned in the text?
The hardware of success: strategy, structure, and systems; The software: style, staff, skills, and shared values
What is the definition of marketing management?
Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.
List three examples of marketing entities.
- GOODS: food, beauty products, hardware. 2. SERVICES: accountants, interior designing, lawyer. 3. EVENTS: Concerts, conventions, sports events.
What are the five dimensions in which a business can define itself?
The five dimensions in which a business can define itself are: 1. What it sells (goods or services). 2. Who it sells to (consumer or business markets). 3. Where it sells (local, national, or international markets). 4. How it sells (directly or through intermediaries). 5. Why it sells (customer needs or wants).
What are the main components of the strategic marketing plan?
The main components of the strategic marketing plan are product features, merchandising, pricing, sales channels, and service.
What is the purpose of the tactical marketing plan?
The purpose of the tactical marketing plan is to specify product features, merchandising, pricing, sales channels, and service.
What are the four planning activities undertaken by corporate headquarters?
The four planning activities undertaken by corporate headquarters are defining the corporate mission, establishing strategic business units, assigning resources to each strategic business unit, and assessing growth opportunities.
How can a business define itself in terms of customer groups, customer needs, and technology?
A business can define itself in terms of customer groups, customer needs, and technology by identifying its target market, understanding the specific needs of those customers, and leveraging appropriate technology to meet those needs.
What are the four dimensions of business innovation?
The four dimensions of business innovation are Offerings, Platform, Solutions, and Customers.
What are the three main sources for marketing opportunities?
The three main sources for marketing opportunities are offering something in short supply, supplying an existing product in a new and superior way, and meeting the need for more information and advice.
What are the four steps in evaluating opportunities using Market Opportunity analyses (MOA)?
The four steps in evaluating opportunities using Market Opportunity analyses (MOA) are articulating the benefits convincingly to a defined target market, locating the target market and reaching them with cost-effective media or trade channels, delivering the benefits better than any actual or potential competitors, and determining the feasibility of the opportunity.
What is the purpose of a SWOT analysis?
The purpose of a SWOT analysis is to evaluate a company's strengths, weaknesses, opportunities, and threats in order to develop a strategic plan.
What are the four types of needs discussed in the text?
The four types of needs discussed in the text are: 1. Stated needs, 2. Real needs, 3. Unstated needs, and 4. Delight needs.
What are the four company capabilities mentioned for marketing in an age of turbulence?
The four company capabilities mentioned for marketing in an age of turbulence are: 1. Using the internet as an info and sales channel, 2. Monitoring consumer, markets, competitor activity with internet, 3. Tapping into social media, and 4. Utilizing mobile technology with GPS for targeted marketing.
What are the eight rules for marketing in an age of turbulence?
The eight rules for marketing in an age of turbulence are: 1. Secure your core customer segments, 2. Be aggressive in acquiring market share from weakened competitors, 3. Research fluctuations in customer needs and wants, 4. Minimally maintain, but seek to increase, your marketing budget, 5. Focus on safety of customers towards products and core value, 6. Drop ineffective programs, 7. Don’t lower prices on best brands, but perhaps cheapen lower ones, and 8. Save the strong, lose the weak.
What are the four components of the holistic marketing concept?
The four components of the holistic marketing concept are: 1. Internal marketing, 2. Performance marketing, 3. Integrated marketing, and 4. Relationship marketing.
What are the three phases of the value delivery process?
The three phases of the value delivery process are: 1) Choosing the value by segmenting the market, selecting the right target, and developing the product's value positioning (STP); 2) Providing the value through features, prices, and distribution methods; 3) Communicating the value through promotion using the sales force, internet, and advertising.
What are the primary activities in the value chain?
The primary activities in the value chain are: a) Bringing materials in (Inbound logistics); b) Converting materials into products (Operations); c) Shipping out products (Outbound logistics); d) Marketing; e) Service.
What are the support activities for specific departments in the value chain?
The support activities for specific departments in the value chain are: a) Procurement; b) Technology development; c) Human resource management; d) Cost of general management, finance, planning, legal, etc. (Firm infrastructure).
What are the core business processes mentioned in the text?
The core business processes mentioned in the text are: 1) Market sensing process: activities in gathering and strategizing/acting on market information; 2) New offering realization process: researching, developing, and launching new high-quality offerings; 3) The customer acquisition process: defining target markets; 4) The customer relationship management process: building a deeper understanding, relationship, and offering to individual customers.
What are the five types of needs discussed in the text?
Stated needs, Real needs, Unstated needs, Delight needs, Secret needs
What are the three new company capabilities mentioned in the text?
Use the internet as an info and sales channel, Monitor consumer, markets competitor activity with internet, Tap into social media
What are the eight rules for marketing in an age of turbulence?
Secure your core customer segments, Be aggressive in acquiring market share from weakened competitors, Research fluctuations in customer needs and wants, Minimally maintain, but seek to increase, your marketing budget, Focus on safety of customers towards products and core value, Drop ineffective programs, Don’t lower prices on best brands, but perhaps cheapen lower ones, Save the strong, lose the weak
What are the four marketing philosophies discussed in the text?
The Production Concept, The Product Concept, The Selling Concept, The Marketing Concept
What is the purpose of strategic planning in the fulfilment management process?
The purpose of strategic planning is to ensure the appropriate activities are chosen and executed to receive orders, ship goods on time, and collect payment.
What are the main components of holistic marketing?
The main components of holistic marketing are value exploration, value creation, and value delivery activities.
What is the significance of establishing strategic business units (SBUs) in large companies?
Establishing SBUs allows for separate planning and management of related businesses, each with its own set of competitors and a manager responsible for strategic planning and profit performance.
What are the characteristics of a good corporate mission statement?
A good corporate mission statement focuses on a limited number of goals, stresses the company's major policies and values, defines the competitive spheres in which the company will operate, takes a long-term view, and is short, memorable, and meaningful.
What are the nine marketing entities mentioned in the text?
- GOODS: food, beauty products, hardware. 2. SERVICES: accountants, interior designing, lawyer 3. EVENTS: Concerts, conventions, sports events. 4. EXPERIENCES: theatre, camp, tourist visits 5. PERSONS: Musicians, actors, surgeons 6. PLACES: Cities, landmarks, beaches (Vegas example) 7. PROPERTIES: Real estate, or stocks and bonds 8. ORGANISATIONS: NGO’s, Retail shops, museums, unis 9. INFORMATION: Newspapers, books, Uni
What are the four types of demand states mentioned in the text?
- Negative demand: Dislike of the product, may pay to avoid it 2. Nonexistent demand: unawareness or disinterest 3. Latent demand: there is a customer need that’s yet to be met with a product 4. Declining demand: Less frequent sells
What is the definition of marketing management according to the text?
Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.
What are the four types of alliances discussed in the text?
The four types of alliances discussed in the text are: 1. Product or service alliances, 2. Promotional alliances, 3. Logistics alliances, 4. Pricing collaborations.
What are the four main sections usually included in a marketing plan?
The four main sections usually included in a marketing plan are: 1. Executive summary and table of contents, 2. Situation analysis, 3. Marketing strategy, 4. Financial projections.
What are the four main components of the implementation controls in a marketing plan?
The four main components of the implementation controls in a marketing plan are: 1. Monitoring and adjusting plan implementation, 2. Defining goals and budget for time period, 3. Reviewing results, 4. Making corrections as needed.
What are the three main components of the hardware of success mentioned in the text?
The three main components of the hardware of success mentioned in the text are: 1. Strategy, 2. Structure, 3. Systems.
What are the three strategies for assessing growth opportunities?
- Intensive growth: Market-penetration strategy, market development strategy, product development strategy, diversification strategy. 2. Integrative growth: Backwards, forward or horizontal integration within its industry. 3. Diversification growth: Acquiring opportunities outside the business.
What are the 12 dimensions of business innovation?
- Offerings 2. Platform 3. Solutions 4. Customers 5. Customer experience 6. Value capture 7. Processes 8. Organization 9. Supply chain 10. Presence 11. Networking 12. Brand
What is the purpose of scenario analysis in strategic planning?
To gauge possible outcomes given the current state of the market and its uncertainties.
What are some ways to spot marketing opportunities?
Converging industry trends and introduce hybrid products or services that are new to market, making the buying process more convenient, meeting the need for more information and advice, customizing a product or service, introducing a new capability, offering a product at a much lower price.
What are the three phases of the value delivery process in marketing?
The three phases of the value delivery process in marketing are: 1. Choosing the value by segmenting the market, selecting the right target, and developing the product's value positioning (STP). 2. Providing the value through features, prices, and distribution methods. 3. Communicating the value through promotions using sales force, internet, advertising, etc.
What are the primary activities in the value chain?
The primary activities in the value chain are: a. Bringing materials in (Inbound logistics). b. Converting materials into product (Operations). c. Shipping out product (Outbound logistics). d. Marketing. e. Service.
What are the support activities for specific departments in the value chain?
The support activities for specific departments in the value chain are: a. Procurement. b. Technology development. c. Human resource management. d. Costs of GM, finance, planning, legal, etc. (Firm infrastructure).
What are the core business processes mentioned in the text?
The core business processes mentioned in the text are: 1. Market sensing process: activities in gathering and strategizing/acting off market info. 2. New offering realization process: researching, developing, and launching new high-quality offerings. 3. The customer acquisition process: defining target markets. 4. The customer relationship management process: building a deeper understanding, relationship, and offering to individual customers.
Marketing management is the art of determining, communicating and delivering customer’s ______
wants
The marketing philosophies: THE ______ CONCEPT
PRODUCTION
THE ______ CONCEPT: Consumers prefer most quality, innovative and performance features in products
PRODUCT
THE ______ CONCEPT: Customer centered-finding the right products for customers
MARKETING
Marketing needs to start pre and during production, with well defined targets. The process has 3 phases: 1. Choose the ______ by segmenting the market, select the right target, and develop the product’s value positioning (STP)
value
The value chain: the 9 steps in process of creating more customer value: 1. Primary activities a. Bringing materials in (Inbound logistics) b. Converting materials into product (Operations) c. Shipping out product (Outbound logistics) d. ______ e. Service
Marketing
Managers should estimate their own and customer’s costs and performance at each step and look for ways to improve. Must also look into ______
core business processes
The customer relationship management process: building a deeper understanding, relationship and offering to ______ customers
individual
Strategic business units (SBUs) are a single or collection of related businesses that can be planned separately from the company. Each SBU has its own set of competitors and a ______ responsible for strategic planning and profit performance.
manager
The GE/McKinsey model classifies SBUs by the extent of their competitive advantage and how attractive the industry is. The BCG's growth-share matrix uses ______ for investment decisions.
relative market share and annual rate of market growth
A company's mission statement should focus on a limited number of goals and stress the company's major policies and values. It should define the competitive spheres in which the company will operate, including the industry, ______, core competencies, market segment, and geographical range.
range of products and applications supplied
A target market definition focuses on selling a product to a current market, while a strategic market definition considers the potential market. A strategic business unit (SBU) can define itself in terms of customer groups, ______, and technology.
customer needs
The marketing planning process consists of analyzing marketing opportunities, selecting target markets, designing marketing strategies, developing marketing programs, and managing the marketing ______.
effort
Marketing managers are responsible for determining the underlying cause in demand ______: 1. Negative demand: Dislike of the product, may pay to avoid it 2. Nonexistent demand: unawareness or disinterest 3. Latent demand: there is a customer need that’s yet to be met with a product 4. Declining demand: Less frequent sells 5. Irregular demand: on a seasonal/timely basis (halloween products) 6.
states
Marketing entities: 1. GOODS: food, beauty products, hardware. 2. SERVICES: accountants, interior designing, lawyer 3. EVENTS: Concerts, conventions, sports events. 4. EXPERIENCES: theatre, camp, tourist visits 5. PERSONS: Musicians, actors, surgeons 6. PLACES: Cities, landmarks, beaches (Vegas example) 7. PROPERTIES: Real estate, or stocks and bonds 8. ORGANISATIONS: NGO’s, Retail shops, museums, unis 9. INFORMATION: Newspapers, books, Uni 10. IDEAS: “In the factory we make cosmetics; in the drugstore we sell hope.” “Just do it”
goods
Successful business practice is key to achieving results beyond strategizing. There’s the hardware of success: strategy, structure and systems, and the ______: style, staff, skills and shared values.
software
The marketing plan usually contains the following sections: - Executive summary and table of contents: brief summary of main goals and recommendations - Situation analysis: backround data on sales, costs, market defining and competitors, along with various other forces in the macro-environment. This info is then used to carry out SWOT analysis - Marketing strategy: defining mission, marketing and financial objectives and needs the market offering wants to satisfy, and competitive positioning. - Financial projections: sales forecast, expense forecast and break-even analysis. Includes also a risk analysis, obtaining three estimates (optimistic, pessimistic, most likely.) for the uncertain variables affecting profitability, - Implementation controls: Monitoring and adjusting plan implementation by defining goals and budget for time period, so results can be reviewed and corrected. Some organisations include contigency plans.
Contigency plans
The most frequent shortcomings for marketing plans include lack of realism, short run focus and ______. The marketing plan usually contains the following sections: - Executive summary and table of contents: brief summary of main goals and recommendations - Situation analysis: backround data on sales, costs, market defining and competitors, along with various other forces in the macro-environment. This info is then used to carry out SWOT analysis - Marketing strategy: defining mission, marketing and financial objectives and needs the market offering wants to satisfy, and competitive positioning. - Financial projections: sales forecast, expense forecast and break-even analysis. Includes also a risk analysis, obtaining three estimates (optimistic, pessimistic, most likely.) for the uncertain variables affecting profitability, - Implementation controls: Monitoring and adjusting plan implementation by defining goals and budget for time period, so results can be reviewed and corrected. Some organisations include contigency plans.
insufficient competitive analyses
To achieve goals mentioned above, a company needs to design a marketing strategy, a ______. The generic strategies: 1. Overall cost leadership: try and achieve lower distribution and production costs, less focus on marketing. 2. Differentiation: Achieving better quality and performance in in a valued customer benefit, as well as communicating it efficiently. 3. Focus: Focus on one or more narrow market segments and pursue either differentiation of overall cost leadership in that segment.
technology strategy and a sourcing strategy
Integrative growth: Backwards, forward or horizontal integration within its industry. Media companies benefit in particular from ______ growth. For others, could acquire wholesalers or suppliers, or competitors
horizontal
Acquiring opportunities outside the business. Also works well in media ie. Disney amusements parks and merchandising. Or amazon producing media and Alexa. — Companies must also be ready to downsize and harvest from old business to invest in new opportunities - Marketing innovation: Management should identify and encourage ideas from 3 underrepresented groups: 1. Employees with youthful or diverse perspectives 2. Employees far removed from business headquarters 3. Employees new to the ______
industry
To build a truly great company, it’s decision upon decision, action upon action, day upon day etc. It is cumulative moments and no one decision that defines a great ______. > As mentionned before, a great way to come up with innovation is to involve a range of employees in the effort. - The 12 dimensions of business innovation: 1. Offerings - developing innovative new products or services ( Itunes) 2. Platform - Use common components or building blocks to create derivative offerings (disney animation) 3. Solutions - create integrated and customized offerings that solve end-to-end customer issues (customer service) 4. Customers - discover unmet customer needs or segments - vegan food 5. Customer experience- redesigning customer interactions - coyote ugly 6. Value capture- redefine how company gets paid, innovative revenue streams ( blockbuster sharing revenue stream w distributors) 7. Processes- better efficiency and effectiveness in operating processes (amazon and AI, starbucks online ordering) 8. Organization - Change form, function or activity of the firm (trainee programs) 9. Supply chain - Rethink sourcing and fulfilment (GM intergrated supply) 10. Presence - new distribution channels or innovative points of presence (remote bank system tellers) 11. Networking - Creating value by connecting with others, building franchises, creating partnerships etc. (lego ideas, hulu with live NBC TV) 12. Brand - Leverage a brand into new domains ( virgin group “branded venture ______)
company
SWOT Analysis, overall evaluation of a company’s strength, weaknesses, opportunities and threats: 1. External environment (opportunity and threat): businesses must monitor the key macro- and microenvironment factors affecting their ability to earn profits. A marketing opportunity will arise when an area of customer need is identified, that the company has a high probability of satisfying. There are 3 main sources for these: offer something in short supply, supply a an existing product in a new and superior way (ask customers for suggestions, ideal version of product, or consumption chain method). Ways to spot opportunities: → Converging industry trends and introduce hybrid products or services that are new to market. (Iphone cameras) → Making buying process more convenient (e-retail) → Meet the need for more information and advice (justask,chatgpt) → Customize a product or service (converse) →introduce a new capability (imovie,alexa) → Offer a product at much lower price (fast ______)
fashion
Study Notes
Marketing Entities and Concepts
- Marketing entities: goods, services, events, experiences, persons, places, properties, organizations, and information
- Marketing philosophies: production, product, selling, marketing, and holistic marketing concepts
- Holistic marketing concept: focuses on building mutually satisfying long-term relationships with key constituants
- Production concept: emphasizes production efficiency and low cost
- Product concept: emphasizes quality and performance of products
- Selling concept: emphasizes sales volume and profit
- Marketing concept: emphasizes customer needs and wants
Marketing Planning Process
- Composed of: analyzing marketing opportunities, selecting target markets, designing marketing strategies, developing marketing programs, and managing the marketing effort
- Considers: customer needs, market trends, competitive analysis, and company resources
Value Delivery Process
- Three phases: 1) choosing a target market, 2) developing a value proposition, and 3) delivering value to customers
- Primary activities: inbound logistics, operations, outbound logistics, marketing, and service
- Support activities: procurement, technology development, human resource management, and firm infrastructure
Customer Relationship Management
- Building a deeper understanding, relationship, and offering to loyal customers
- Emphasizes customer retention and loyalty
Strategic Business Units (SBUs)
- A single or collection of related businesses that can be planned separately from the company
- Each SBU has its own set of competitors and a manager responsible for strategic planning and profit performance
- Classified using the GE/McKinsey model and the BCG's growth-share matrix
Marketing Management
- Definition: the art of determining, communicating, and delivering customer value
- Emphasizes customer needs, market analysis, and competitive advantage
- Involves: market sensing, market research, and customer relationship management
Business Innovation
- 12 dimensions: offerings, platform, solutions, customers, customer experience, value capture, processes, organization, supply chain, presence, networking, and brand
- Involves: identifying and encouraging ideas from employees with diverse perspectives, and involving employees in the innovation process
Strategic Planning
- Involves: analyzing marketing opportunities, selecting target markets, designing marketing strategies, developing marketing programs, and managing the marketing effort
- Emphasizes: company mission, market analysis, competitive advantage, and resource allocation
Marketing Plan
- Composed of: executive summary, situation analysis, marketing strategy, financial projections, and implementation controls
- Involves: market research, competitive analysis, SWOT analysis, and risk analysis
SWOT Analysis
- A framework for evaluating a company's strengths, weaknesses, opportunities, and threats
- Involves: external environment analysis, market research, and competitive analysis
Performance Marketing and Financial Accountability Quiz: Test your knowledge on measuring marketing success beyond sales, including both financial and non-financial returns. Explore the legal and ethical aspects of marketing programs. Learn how to justify marketing investments through tangible financial analysis and prove the intangible value of your company through effective marketing efforts. Also, discover the importance of social responsibility in marketing.
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