Chp. 1: Overview of Strategic Marketing
What is marketing?
The process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers and to develope and maintain favorable relationships with stakeholders in a dynamic environment.
In a SWOT analysis, strengths and _________ are considered internal factors while __________ and threats are considered external.
Weaknesses
Opportunities
Prosperity, recession, depression, and recover represent the four stages of the ________.
business cycle.
Which of the following outcomes is most likely for companies that incorporate ethics and social responsibility programs?
Improved profitability
Reduced costs
Increased number of customer complaints
Decreased level of customer satisfaction
Improved profitability
________ data yields descriptive, non-numerical information; _______ data yields empirical information communicated through numbers.
Qualitative
quantitative
Product, distribution, promotion, and price are commonly referred to as ________.
The marketing mix
When a company matches a core competency to opportunities in the marketplace, it possesses a .
Competitive advantage
_________involves organized efforts by individuals, groups, and organizations to protect consumers' rights.
Consumerism
What are the ethical values of the American Marketing Association?
Honesty, responsibility, fairness, respect, transparency, citizenship
Two general approaches that measure company sale potential are _______ and ___________.
A product can be...
A good, service, or idea
What are the components of the strategic planning process?
Developing organizational mission and goals
Developing corporate and business-unit strategies
Analysis of strengths and weaknesses and identification of opportunities and threats
Each functional area of the organization (marketing, production, finance and HR) establishes their own objectives and strategies
Although it regulates a variety of business practices, the ____________ works to curb false advertising, misleading pricing, and deceptive packaging and labeling - all things marketers should be aware of and avoid.
Federal Trade Commission
What are the four dimensions of corporate social responsibility?
Philanthropic, ethical, legal, economic
What are the five steps to the target market selection process?
1. Identify the appropriate targeting strategy
2. Determine which segmentation variables to use
3. Develop market segment profiles
4. Evaluate relevant market segments
5. Select specific target markets
The key objective of customer relationship management (CRM) is .
Creating long-term relationships with profitable customers
Define first-mover advantage and late-mover advantage.
The ability of an innovative company to achieve long-term competitive advantages by being the first to offer a certain product in the marketplace.
The ability of later market entrants to achieve long-term competitive advantages by not being the first to offer a certain product in a marketplace
Define monopoly, oligopoly, monopolistic competition, pure competition.
When an organization offers a product that has no close substitutes, making that organization the sole source of supply
A competitive structure in which a few sellers control the supply of a large proportion of a product
A firm has many potential competitors and tires to develop a marketing strategy to differentiate its product
Characterized by an extremely large number of sellers, none strong enough to significantly influence price or supply
Define the following:
marketing citizenship
marketing ethics
cause-related marketing
strategic philanthropy
The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders
Principles and standards that define acceptable marketing conduct as determined by various stakeholders
The practice of linking products to a particular social cause on an ongoing or short-term basis
The synergistic use of organizational core competencies and resources to address key stakeholders' interests adn achieve both organizational and social benefits
Define the following: exploratory research, conclusive research, descriptive research, experimental research.
Exploratory: Research conducted to gather more information about a problem or to make a tentative hypothesis more specific
Conclusive: Research designed to verify insights through objective procedures and to help marketers in making decisions
Descriptive: Research conducted to clarify the characteristics of certain phenomena to solve a particular problem
Experimental: Research that allows marketers to make causal inferences about relationships between variables
When McDonald’s adds new items to its menu, it must educate its target audience about the new items to stimulate purchase and motivate consumers to visit their local McDonald’s restaurant. This calls for activity in which of the following marketing mix variables?
Promotion
What are the differences between "stars" and "dogs" in the Boston Consulting Group's growth share matrix?
Stars are products with a dominant share of the market and good prospects for growth, however they use more cash than they generate. Dogs have a subordinate share of the market and low prospects for growth. They are often found in established markets.
What are sociocultural forces and how do they impact marketing?
Influences in a society and its culture that bring about changes in people's attitudes, beliefs, norms, customs, and lifestyles. This determines what, where, how and when people buy products. Three major issues: demographic and diversity characteristics, cultural values, and consumerism
Ruben was recently hired as a sales representative for a buildings’ material company. He has been going through training and meeting his colleagues at the office. He has noticed that everyone is very friendly and welcoming, and the office has a relaxed style. People are professional but show warmth and caring and keep telling Ruben that they are happy to help if he has any questions or needs help. Ruben has also noticed that most workers value a balanced approach between work and their personal life, and his supervisor has stressed that Ruben should work an 8 a.m. to 5 p.m. schedule with a 1-hour break for lunch. Ruben’s observations relate to the _______.
List and provide an example for each of the four segmentation variables for consumer markets.
Demographic - age
Psychographic - personality, motives, lifestyles
Geographic - city size
Behavioristic - benefit expectations, brand loyalty