Strategic Marketing Concepts
42 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary goal of the marketing plan discussed?

  • Change the entire pricing strategy
  • Focus solely on online sales
  • Increase the average ticket without raising prices (correct)
  • Reduce the cost of products sold

Which strategy is mentioned for promoting complementary products?

  • Exclusive membership sales
  • Cross-selling related items (correct)
  • Lowering the prices of accessories
  • Bundling products at a discount

What is an essential aspect of the control stage of the marketing plan?

  • Developing new marketing channels
  • Finding new product ideas
  • Measuring and comparing average ticket results (correct)
  • Eliminating all the proposed accessories

What type of promotional phrase is suggested for encouraging customers to purchase accessories?

<p>Why not add a pair of socks to your order? (D)</p> Signup and view all the answers

What is a key consideration when implementing the proposed marketing actions?

<p>The accessories chosen should appeal to customer interests. (D)</p> Signup and view all the answers

What distinguishes 'barnacles' from 'true friends' in customer relationships?

<p>Barnacles require significant support but yield low profit. (C)</p> Signup and view all the answers

What is a common strategy companies use to manage barnacle customers?

<p>Implementing fees that discourage their engagement. (D)</p> Signup and view all the answers

What is NOT a stage of Marketing Planning mentioned?

<p>The Implementation Phase (A)</p> Signup and view all the answers

Which statement about customer treatment is true according to the content?

<p>Understanding customer types is crucial to deciding how to engage them. (D)</p> Signup and view all the answers

Why is there no single best strategy for marketing across different companies?

<p>Different companies have unique situations, opportunities, objectives, and resources. (A)</p> Signup and view all the answers

What is the primary focus of a corporate level strategic plan?

<p>Setting company objectives and goals (D)</p> Signup and view all the answers

Which of the following best describes the starting point of the marketing process?

<p>Analyzing available tools and resources (A)</p> Signup and view all the answers

What are the 4 Ps in marketing that should be considered during the planning process?

<p>Price, product, place, promotion (B)</p> Signup and view all the answers

In the context of strategic planning, what must a company assess after knowing its available resources?

<p>The feasibility of potential goals (B)</p> Signup and view all the answers

What is the purpose of defining a company mission at the corporate level?

<p>To establish the company's purpose and direction (D)</p> Signup and view all the answers

Why is it important for a company to know where it can go with its resources?

<p>To determine feasible goals and strategies (C)</p> Signup and view all the answers

How should the decisions made at the corporate level influence the marketing process?

<p>They are consequential to the resources used in marketing. (D)</p> Signup and view all the answers

What is one key consideration when planning marketing strategies?

<p>Understanding the competitive landscape (D)</p> Signup and view all the answers

What does the term 'lucrative' refer to in the context of exchanges?

<p>Exchanges where the value product is more than money (B)</p> Signup and view all the answers

Which of the following describes a complex exchange?

<p>An exchange involving multiple parties collaborating for mutual benefits (C)</p> Signup and view all the answers

What is indicated as not allowed regarding the work discussed in the content?

<p>Economic exploitation of the work (B)</p> Signup and view all the answers

Which type of exchange occurs only once and is separate from past and future?

<p>Transactional exchange (A)</p> Signup and view all the answers

In the example provided, what do the citizens receive from the construction project?

<p>A beautiful square that upgrades the town (B)</p> Signup and view all the answers

Which of the following best describes a non-lucrative exchange?

<p>A relationship like dating, which is an exchange of value beyond money (D)</p> Signup and view all the answers

What is one of the outcomes for the town hall in the hypothetical exchange scenario?

<p>Enhancing its re-election prospects by improving urban spaces (C)</p> Signup and view all the answers

What is meant by 'restricted' in the context of exchanges?

<p>Exchanges involving only a seller and a buyer (C)</p> Signup and view all the answers

What is the primary goal of customer-engagement marketing?

<p>To make the brand a meaningful part of consumers' conversations and lives (B)</p> Signup and view all the answers

Which type of customer is described as a 'butterfly'?

<p>Customers that have a good fit with needs but seek the best deal (D)</p> Signup and view all the answers

What does customer equity measure?

<p>The overall value customers bring to the brand over time (B)</p> Signup and view all the answers

Why shouldn't marketers invest heavily in relationships with 'strangers'?

<p>It is not profitable to invest in relationships with them (C)</p> Signup and view all the answers

What aspect does customer loyalty primarily relate to?

<p>Emotional connection and willingness to advocate for the brand (C)</p> Signup and view all the answers

In customer-engagement marketing, what is deemed as a probable characteristic of customers?

<p>Not all customers are equally profitable or beneficial (A)</p> Signup and view all the answers

What does 'share of wallet' refer to?

<p>The percentage of a customer's total spending allocated to a brand (D)</p> Signup and view all the answers

How can brands foster direct customer involvement according to the concept of customer engagement?

<p>Through continuous brand conversations and community experiences (C)</p> Signup and view all the answers

What is an example of a pure transactional exchange?

<p>Buying unbranded petrol at a gas station (C)</p> Signup and view all the answers

When can we say that a relational exchange is developing with a customer?

<p>After a series of transactions leading to attachment (D)</p> Signup and view all the answers

What indicates the loyalty of a customer towards a brand?

<p>The share of wallet concept (B)</p> Signup and view all the answers

Why is it generally more challenging to sell products to existing customers than to acquire new ones?

<p>Building on existing relationships requires more effort. (C)</p> Signup and view all the answers

In the context of B2C exchanges, which of the following statements is true?

<p>B2C transactions typically involve a large number of customers. (A)</p> Signup and view all the answers

How might companies approach customers with a shared wallet differently?

<p>By inventing new products for loyalty enhancement. (D)</p> Signup and view all the answers

What’s the primary difference between B2C and B2B transactions?

<p>B2B involves larger customers with a focus on building relationships. (C)</p> Signup and view all the answers

Which statement about customer loyalty and purchases is false?

<p>Customers with diverse brands in their wallet are simpler to retain. (C)</p> Signup and view all the answers

Flashcards

Barnacles

Clients who are highly engaged but don't make many purchases.

True Friends

Customers who are a good fit for your brand and provide long-term value.

Customer Segmentation

The process of identifying and understanding your target audience.

Marketing Plan

A plan that outlines how a company will achieve its marketing objectives.

Signup and view all the flashcards

Marketing Process

The process of implementing a marketing plan.

Signup and view all the flashcards

Average Ticket Value Enhancement

The process of increasing average ticket value by offering complementary products without raising prices.

Signup and view all the flashcards

Cross-Selling

A strategy that involves offering products that go well together, increasing the likelihood of larger purchases.

Signup and view all the flashcards

Marketing Plan Implementation

The implementation phase of a marketing plan, focusing on the practical aspects of the strategy.

Signup and view all the flashcards

Marketing Plan Control

Evaluating and measuring the effectiveness of a marketing strategy to determine its profitability and areas for improvement.

Signup and view all the flashcards

Marketing Investment

The amount of money invested in a marketing initiative, aiming to generate revenue and return on investment.

Signup and view all the flashcards

Pure Transactional Exchange

An exchange focused solely on the immediate transfer of goods or services for money, with no ongoing relationship or emotional connection.

Signup and view all the flashcards

Pure Relational Exchange

An exchange characterized by a long-term, ongoing relationship, trust, and mutual benefit, often involving emotional connection and shared interests.

Signup and view all the flashcards

Share of Wallet

The proportion of a customer's total spending on a specific company's products or services compared to their overall spending.

Signup and view all the flashcards

Expanding Share of Wallet

The strategy of convincing existing customers to buy more products or services from your company. It's harder than gaining new customers.

Signup and view all the flashcards

B2C (Business to Consumer)

Business transactions primarily involving individual consumers, often with high customer volume and low profit margins.

Signup and view all the flashcards

B2B (Business to Business)

Business transactions primarily involving other businesses, often involving long-term relationships, higher profit margins, and fewer customers.

Signup and view all the flashcards

Repeated Transactions

The situation when a customer buys repeatedly from the same company, suggesting a potential shift towards a relational exchange. It is not sufficient, but it is necessary.

Signup and view all the flashcards

Attachment to a Brand

A customer's emotional connection to a brand, influenced by positive experiences, values, and brand loyalty.

Signup and view all the flashcards

Customer Delight

The feeling of exceeding customer expectations, creating a positive and memorable experience that fosters strong brand loyalty.

Signup and view all the flashcards

Loyalty

The degree to which customers are committed to a brand, consistently choosing it over competitors.

Signup and view all the flashcards

Customer Engagement

Ongoing and meaningful interactions with customers that foster engagement with the brand, beyond just purchasing products.

Signup and view all the flashcards

Customer Equity

The overall value a customer brings to a business, encompassing loyalty, engagement, and the potential for future purchases.

Signup and view all the flashcards

Customer-Engagement Marketing

A marketing strategy focusing on building lasting relationships with customers by actively engaging them in shaping brand narratives, experiences, and communities.

Signup and view all the flashcards

Butterflies

Customers who are a good fit for a brand's offerings, actively seeking out its products and services.

Signup and view all the flashcards

Strangers

Customers who show little interest in a brand and are not profitable to invest in for relationship building.

Signup and view all the flashcards

Strategic Plan (Corporate Level)

A well-defined overall plan for running an entire business or organization, guiding its direction and strategies.

Signup and view all the flashcards

Company Objectives & Goals

A detailed plan outlining the specific goals and actions needed to achieve these goals, covering areas like marketing, finance, operations, etc.

Signup and view all the flashcards

Business Portfolio Design

Refers to the different businesses or products that a company offers. It involves analyzing each business unit's strengths and weaknesses to decide how to allocate resources and achieve overall success.

Signup and view all the flashcards

Planning Functional Strategies

The process of creating strategies for various operational areas within a company, such as marketing, finance, production, and human resources. It involves crafting plans that align with the overall company goals and objectives.

Signup and view all the flashcards

Marketing Process - Analysis

The process of analyzing internal and external factors that affect a company's ability to achieve its objectives. This includes understanding the company's resources, competitive landscape, market opportunities, and customer needs.

Signup and view all the flashcards

Marketing Mix (4 Ps)

The four key elements of marketing strategy: Product, Price, Promotion, and Place. Each element plays a critical role in attracting and retaining customers.

Signup and view all the flashcards

Marketing Process - Implementation

The process of using available resources effectively to achieve the company's goals. It involves strategically allocating resources and using them to maximize their impact on company performance.

Signup and view all the flashcards

Marketing Process - Evaluation

This process involves tracking and evaluating the performance of marketing efforts, analyzing results, and making adjustments to improve effectiveness.

Signup and view all the flashcards

Lucrative Exchange

An exchange where both parties gain something of value, often in the form of money.

Signup and view all the flashcards

Non-Lucrative Exchange

An exchange where the value received is not directly monetary, but rather something intangible like social recognition or improvement.

Signup and view all the flashcards

Restricted Exchange

An exchange involving only two parties – a seller and a buyer, with a direct transaction.

Signup and view all the flashcards

Generalized Exchange

An exchange involving multiple parties, where each party receives benefits from the overall exchange.

Signup and view all the flashcards

Transactional Exchange

A specific instance of an exchange, independent of its past or future occurrences.

Signup and view all the flashcards

Relational Exchange

An exchange that involves ongoing relationships between parties, built on trust and mutual benefit.

Signup and view all the flashcards

Barter Exchange

An exchange where the value of the transaction is measured in goods or services instead of money.

Signup and view all the flashcards

Hybrid Exchange

An exchange where value is based on a combination of tangible and intangible benefits, including social recognition and personal satisfaction.

Signup and view all the flashcards

Study Notes

Strategic Marketing

  • Marketing is a social and managerial process, enabling individuals and groups to obtain what they need and want. This involves creating and exchanging products/services with value.
  • Simply advertising or selling are part of the marketing function; it makes people discover products.
  • The marketing process involves:
    • Understanding the marketplace and customer needs/wants
    • Designing a customer-driven marketing strategy
    • Constructing an integrated marketing program to provide superior value
    • Building profitable relationships and customer delight
    • Capturing value from customers (price, cost of production = profit) to ensure profits and customer equity
  • Firms target segments and try to sell their product/service, sometimes forming relationships. Branding is also considered part of target marketing.
  • Companies exist to create value for shareholders. Brand equity is dependent on future profits, and the volume of successful sales. Value is essential for a brand's success. A business makes sense only if it can sell and make a profit.

Needs, Wants, and Demands

  • Needs are states of deprivation (physical – hunger, clothing, warmth; social – belonging, affection; individual – knowledge, self-expression)
  • Wants are shaped by culture/personality (e.g. coffee vs. tea) as well as buying power.
  • Wants aren't necessarily related to the same need.
  • Every want does not become a demand unless it is backed by purchasing power. E.g. the desire for a Ferrari but lack of enough money prevents a demand.

Simplified Market System

  • The market system includes suppliers, competitors, intermediaries (e.g., Mediamarkt) and consumers.
  • A part of the environmental forces involved may be the consumer themselves in B2B relationships.

Value, Satisfaction, and Loyalty

  • Companies create value propositions in response to consumers' needs.
  • Consumers evaluate market offerings primarily based on their expectations of customer value and satisfaction.
  • Too high expectations can lead to dissatisfaction and lower sales in the long run. Too low expectations can prevent long-term success.
  • Firms need to strike a balance between exceeding expectations (and potentially under-performing promises) and fulfilling what they can reasonably achieve;
  • Customer satisfaction, when the offering exceeds expectations, leads to loyalty and higher customer lifetime value.

Exchanges, Transactions, and Relations

  • An exchange is obtaining a desired object by offering something in return. This can include product-for-product, or product-for-money exchanges.
  • For an exchange, at least two parties are necessary, both with something of value and a desire to trade.
  • Transactional exchanges are one-time interactions without future intentions.
  • Relational exchanges involve ongoing communication and relationships between customer and brand beyond the initial exchange.

Marketing Plan

  • A marketing plan is a strategy unique to each company based on their situation, opportunities, objectives, and resources.
  • Key stages of planning include a strategic plan, which sets corporate-level objectives, and the marketing process.
  • A marketing plan will often have steps to implement and control based on the goals set.

Studying That Suits You

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

Quiz Team

Related Documents

UNIT 1 Strategic Marketing PDF

Description

Explore the essential principles of strategic marketing in this quiz. Understand the process of creating value through targeted marketing strategies and customer relationship management. Assess your knowledge on marketplace dynamics and brand equity.

More Like This

Marketing Chapter 1: Creating Customer Value
18 questions

Marketing Chapter 1: Creating Customer Value

SweetClavichord avatar
SweetClavichord
Marketing Strategy Quiz
51 questions

Marketing Strategy Quiz

PamperedRomanArt8180 avatar
PamperedRomanArt8180
Marketing Strategy Overview
48 questions

Marketing Strategy Overview

PamperedRomanArt8180 avatar
PamperedRomanArt8180
Basic Marketing Concepts and Strategies
48 questions

Basic Marketing Concepts and Strategies

FreeCatSEye8877 avatar
FreeCatSEye8877
Use Quizgecko on...
Browser
Open
Browser
Browser