Ch. 1: Foundations of Marketing
This is the official AMA definition's term for the activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
What is marketing?
This statement describes an organization's long-term purpose — what it does and for whom — while a related statement describes what it aspires to become in the future
What is a mission statement (and vision statement)?
This is the center of every marketing environment analysis — every other factor in the Immediate Environment and the macroenvironment is ultimately studied in terms of its effect on this group.
What is the consumer?
Need recognition, information search, alternative evaluation, purchase and consumption, and postpurchase are the five steps of this model
What is the consumer decision process?
Segmentation, targeting, and positioning together make up this three-phase process marketers use to identify and reach the right customers.
What is the STP process?
Define objectives and research needs, design the research, collect the data, analyze and interpret the data, and develop and implement an action plan are the five steps of this process.
What is the marketing research process?
Product, price, place, and promotion together make up this controllable set of tools marketers use to respond to a target market's wants
What is the marketing mix (the 4Ps)?
Strengths, weaknesses, opportunities, and threats make up this four-part framework used to evaluate a firm's internal and external position.
What is a SWOT analysis?
The firm itself, competitors, corporate partners, and the physical environment are the four factors that make up this closer-in layer of a firm's environment.
What is the Immediate Environment?
A shopper walks into Goodwill specifically looking for a coat because their old one no longer fits. This is the first step of the consumer decision process.
What is need recognition?
Geographic, demographic, psychographic, and behavioral are four examples of this — the methods marketers use to divide a broad market into smaller groups.
What are segmentation bases (methods)?
Information that already exists, originally collected by someone else for another purpose, is called this — as opposed to data gathered fresh for the specific question at hand.
What is secondary data?
A Goodwill donor drops off a bag of clothes expecting nothing in return, while a shopper pays $5 for a used sweater. Both represent this basic concept — a transfer of value between two or more parties.
What is an exchange?
This process helps management decide where to invest resources by evaluating a firm's mix of products and businesses according to their growth and profit potential — the BCG matrix is one common tool for it.
What is portfolio analysis?
A new for-profit resale chain opens three stores within a mile of an existing Goodwill location. In the Immediate Environment, this new chain is best classified as one of these.
What is a competitor?
Motives, attitudes, perceptions, learning and memory, and lifestyle are sub-factors of this broader category influencing consumer decisions.
What are psychological factors?
Self-values, self-concept, and lifestyle are the three components marketers examine under this segmentation base.
What is psychographic segmentation?
Instead of running a brand-new survey, Goodwill's marketing team pulls U.S. Census data on household income across its 45-county service area. This is an example of using this type of data.
What is secondary data?
The benefits a customer receives from an offering, weighed against what it costs to obtain it, together define this core marketing concept.
What is value?
If Goodwill opened its first online resale storefront to sell its existing donated inventory to new online customers it doesn't currently reach, this Ansoff growth strategy would describe the move.
What is market development?
Culture, Demographics, Social trends, Technological advances, Economic situation, and Political/regulatory environment make up this six-factor acronym describing the broader macroenvironment.
What is CDSTEP?
Family, reference groups, and culture make up this broader category of influence on a consumer's decisions — distinct from a person's own internal psychology.
What are social factors?
Identifiable, substantial, reachable, responsive, and profitable are the five criteria used to evaluate this — how worthwhile a given segment is to pursue.
What is segment attractiveness?
Observation, social media monitoring, in-depth interviews, and focus groups are four methods used to collect this type of primary data, focused on depth of understanding rather than numbers.
What is qualitative data?
Rather than chasing one-time transactions, a firm that invests in building long-term bonds with its customers is practicing this type of marketing.
What is relationship marketing?
Market penetration, market development, product development, and diversification are the four growth strategies in this named matrix.
What is the Ansoff (growth strategy) matrix?
Sustainability, health and wellness, and the efficient utilization and distribution of food are the three trends the textbook highlights under this CDSTEP factor
What are social trends?
A longtime Goodwill volunteer says nothing makes them prouder than representing their community, even with no pay or formal recognition involved. This behavior most directly appeals to this level (or levels) of Maslow's hierarchy.
What is esteem (or self-actualization)?
Rather than trying to serve every possible client, Goodwill's Career Service Centers focus specifically on people re-entering the workforce after a long absence. This is an example of this targeting strategy.
What is differentiated (niche) targeting?
Surveys, scanner data, panel data, and experiments are four methods used to collect this type of primary data, focused on numbers that can be statistically analyzed.
What is quantitative data?
Goodwill's retail stores, its donations program, and its Career Service Centers are three distinct examples of this — the different offerings one organization markets to different audiences.
What is a product (offering) portfolio?
This broader document covers an organization's entire operation — finance, HR, operations — while the marketing plan is just one piece nested inside it.
What is a business plan?
A local trucking company agrees to haul donated furniture between Goodwill's stores and its donation centers at a discount. In the Immediate Environment, this company is an example of this
What is a corporate partner?
Purchase situation, sensory situation, and temporal state are sub-factors of this category of influence, which can override or influence a consumer's psychological and social factors.
What are situational factors?
Undifferentiated, differentiated, concentrated, and micromarketing are the four strategies marketers choose from during this phase of the STP process.
What is targeting?
A Goodwill career counselor has a long, open-ended conversation with a recent program graduate about their job search experience. This qualitative data collection method is called this.
What is an in-depth interview?