MKT Test 1

Marketing

Creating, capturing, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

Marketing Plan

written document composed of analysis of current mkt situation, opport, and threats for firm. Objectives/strategy in terms of the four P's

Exchange

Trade of things of value b/t buyer and seller so each is better off

Marketing Mix (4 P's)

Product, price, place, promotion-set of activities a firm uses to respond to wants of target marketsProduct: creating valuePrice: capturingPlace: deliveringPromotion: Communicating

Service

any offering that involves a deed, performance, or effort that cannot be physically possessed.

Transactional Orientation

Regards buyer-seller relationship as a series of individual transactions; anything that happened before/after transaction is of little importance

Relational Orientation

Method of building relationship with customers based on the philosophy that buyers/sellers should develop long term relationships

Customer Relationship Management (CRM)

Focus on identifying and building loyalty among firm's most valued consumers

Supply Chain

Group of firms that make and deliver a given set of goods and services

Marketing Strategy

Firm's target market, marketing mix, and method of obtaining a sustainable competitive advantage

Sustainable Competitive Advantage

Something the firm can persistently do better than its competitors

Customer Excellence

INvolves a focus on retaining loyal customers and excellent customer service

Operational Excellence

Involves a firm's focus on efficient operations and excellen supply chain management

Product Excellence

Focus on achieving high-quality products, effective branding and positioning is key

Planning Phase

Part of marketing plan where:1) Define mission/vision for business2) Situation analysisSWOT-Strengths, weakn, opport, threats

Implementation Phase

Part of MKT plan where:1) Identify/evaluate diff't opport by segmentation, targeting, positioning (STP)2) Implement 4 P's

Control Phase

Part of MKT Plan where:1) Mgrs evaluate performance of mkt strategy

Mission Statement

What type of business is it? What does it need to do to accomplish its goals and objectives?

Sustainable Competitive Advantage

Something the firm can persistently do better than its competitors

Situation Analysis

2nd step in MKT plan, using SWOT

STP

Segmentation, Targeting, Positioning used to ID opportunities for increasing sales/profits

Market Segment

Group o consumers who respond similarly to a firm's marketing efforts

Market Segmentation

Process of dividing the mkt into groups of customers w/diff needs,wants, characteristics

Target Marketing

Process of evaluating attractiveness of various segments and deciding which to pursue as a mkt

Market Positioning

Defining the mkt mix variables so target customers have clear, distinctive, desirable understanding of what prod does in comparison with competing products

Cost-Based Pricing

Strategy that involves determining the costs of producin a prod then adding a fixed amt above that total to arrive at selling price

Competitor-Based Pricing

Involves pricing below, at, or above competitors offerings

Value-Based Pricing

Involves determining the value of the product from customer's POV then pricing accordingly

Strategic Business Unit (SBU)

Division of firm that can be managed and operated independently from other divisions and may have diff mission or objectives

Product Lines

Gps of assoc items, such as things that consumers use together

Market Share

% of a market accounted for by a specific entity

Relative Market Share

Measure of products strength in a particular market, defined as the sales of the focal product divided by the sales achieved by the largest firm in the industry

Market Growth Rate

The annual rate of growth of the specific market in which the product competes

Market Penetration Strategy

Growth strategy that employs the existing marketing mix and focuses the firm's efforts on existing customers

Market Development Strategy

Growth strategy that aims to reach new market segments (domestic or international)

Product Development Strategy

Offers a new product or service to a firm's current target market

Diversification strategy

Firm introduces a new product to a market segment that it does not currently serve