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MKTG Exam 1
| Question | Answer |
|---|---|
| marketing | an organizational function and a collection of processes designed to plan form create, communicate, and deliver value to customers. Marketing also builds effective customer relationships in ways that benefit the organization and its stakeholders |
| marketing concept | an organizational philosophy dedicated to understanding and fulfilling consumer needs through creation of value |
| Early--> 1950: Production Orientation | focus on efficient production and distribution with little emphasis on any marketing strategy |
| 1950-->Present: Consumer Orientation | focus on satisfying unmet consumer needs and wants |
| 1980s Relationship Orientation | focus on creating value-added relationships with both suppliers and consumers |
| marketing functions | activities performed within organizations that create value for specific products or services |
| Perceived Value | Value = Benefits / Price |
| needs | necessary to meet and urgent requirement |
| want | desire for something that is not essential |
| 4 Ps | Product, Place, Price, Promotion |
| Exchange functions | promote and enable transfer of ownership of products. Include pricing and promotion |
| physical functions | allows the flow of goods from producer to consumer. Includes place (distribution) --> shipping, warehousing, packaging |
| facilitating functions | activities that assist in the execution of the exchange and physical functions. Marketing processing --> research, customer relationship management. |
| Perceived value | perceived value = perceived benefits - perceived cost/ what you actually pay |
| enhance perception of value by | -decreasing how much you pay --> actual discount - decrease perceived cost --> special discount -increase perceived benefits --> getting more for your money |
| marketing environment | set of forces, some controllable some not, that influence the ability of a business to create value and attract and serve customers |
| 7 Ps | Controllable Forces 1. Price 2. Product 3. Promotion--> communicate products 4. Place --> distribution channels 5. People--> customer service, sales people 6. Physical environment--> Big Mikes vs Dillards 7. Processes --> online shopping process |
| Uncontrollable Forces | -Educational system - Social structure -Legal system -Political system -Economic system -Natural resources |
| consumer markets | where the end products and services get to the consumer and their households |
| business markets | where businesses supply goods and services to other businesses (B2B) |
| 4 Utilities of Marketing | -Form utility -Place utility -Time utility -Ownership utility |
| Form Utility | is the product in the form you want? Coke can vs Coke Bottle |
| Place Utility | the rain jacket you own is no good if you leave it at home when it is raining |
| Time Utility | lottery numbers aren't good on sunday when they were only valid for turn in until saturday |
| Ownership utility | who had the product. Want to drive a car but you cannot afford one outright, you lease one to have "ownership" |
| North American Industrial Classification System (NAICS) | each industry had a specific NAICS number. You find the number and you can look up the specific industry. The longer the number, the more specific the industry. Government uses NAICS as a means to provide statistical data about the economy |
| society | community, nation, or a group that shared common traditions, institutions, activities and interests. |
| consumerism | organized efforts on the part of the consumer groups or governments to improve the rights and power of buyers in relation to sellers |
| culture | share beliefs, values, habits, knowledge and attitudes of a group. |
| Laws | rules of conduct or action prescribed by an authority or binding practices or customs of a community |
| Jurisdiction | territorial range of authority |
| Sherman Anti-Trust Act | prohibits monopolies and activities (price fixing,, predatory pricing) that restrain trade or competition in interstate commerce |
| Clayton Act | supplements the Sherman Act by prohibiting certain types of price discrimination, exclusive dealing, and tying causes (which require a dealer to take on additional products in a sellers line) |
| Federal Trade Commission Act | established a commission to monitor and remedy unfair trade methods |
| Robinson-Patman Act | amends the Clayton Act to define price discrimination as unlawful. Empowers FTC to establish limits on quantity discounts, forbids some brokerage allowances, and prohibits promotional allowances except when made available on proportional equal terms |
| National Traffic Safety Act | provides for the creation of compulsory safety standards for automobiles and tires |
| Fair Packaging and Labeling Act | provides for the regulation of packaging and labeling of consumer goods. Requires that manufacturers state what the package contains, who made it, and how much it contains |
| Consumer Product Safety Act | Established the consumer product safety commission and authorizes it to set safety standards for consumer products as well as exact penalties for failure to uphold those standards |
| Children's Television Act | limits the amount of commercials aired during childrens programs |
| Foreign Corrupt Practices Act | makes payments to foreign government offices illegal to acquire international business. |
| Facilitating Payments | tipping. Government officials cannot take tips over $250 per years |
| Do-not-call improvement act | instead of registering every five years for the do not call list, you now only register once. The FTC must purge the database of numbers of invalid, disconnected, or reassigned numbers several times a month |
| customer value | the difference between the benefits a customer receives and the total cost inquired from acquiring, using, and disposing of a product |
| customer satisfaction | the overall feelings or attitude a person had about a product or service after it has been purchased. The degree to which a product meets or exceeds customer expectations. Performance - Expectation = satisfaction of dissatisfaction |
| place utility | is the product in the form I want, at a price I like, and is it WHERE I want it? |
| Latitudes of Acceptance/Rejection | if a restaurant knows the wait is going to be 15min they tell you 30min so they expands the bounds by which we establish your acceptance region |
| retention rate | how many times your customers will come back. 66% satisfaction --> 3 times back 90% satisfaction --> 10 times back 95% satisfaction --> 20 times back |
| Foundation for LCV | Price x Quantity -Cost of Good Sold = Gross Margin -Sales General and Administrative Expenses = Gross Profit Before Tax -tax =Net Profit |
| Lifetime value of a custom | the discounted cash flow a given customer or market segment brings to a business over the length of time the customer is affiliated with the business |
| customer retention | surrogate for customer satisfaction. Number of customers who return to repurchase |
| customer life | the number of time periods the customer returns before the cease purchasing your product |
| acquisition cost | the costs associated with obtaining a new customer... in sales, promotion materials, sales collateral, the cost of sales calls etc. That lead to the first purchase |
| retention costs | those costs associated with keeping a current customer. -followup calls, service assistance, reminder promotion, reminder sales contacts. -Some things are as simple as buying lunch or playing gold to mine for customer information |
| relationship marketing | organizational commitment to developing and enhancing long term mutually beneficial relationships with profitable or potentially profitable customers |
| customer relationship management: | comprised of the activities that are used to establish, develop and maintain customer sales. |
Created by:
asculpepper
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