Study Guide for Exam 1 (Chapter 1 to Chapter 7)
Chapter
1
1.
What is marketing? What are the two facets about
marketing?
a. Activity, set
of instructions, and processes for creating, communicating, delivering, and
exchanging offering that have value for customers, clients, partners, and
society at large.
b.
Marketing has two facets: 1. a philosophy, attitude,
perspective, or a management orientation that stresses customer
satisfaction 2. an organization function and a set of processes used
to implement the aforementioned philosophy.
2.
What are the differences between marketing and
exchange?
a. Exchange- at
least 2 parties must be involved, something of value must be present, parties
are capable of communication and delivery, desire to deal with party exists,
each party is free to accept or reject the offer, both parties agree on the
exchange.
3.
Four Marketing Management Philosophies.
a. Orientation
Production (internal capabilities of the firm), Sales (aggressive sales
techniques and the belief that high sales result in high profits), Market
(satisfying customer wants and needs while meeting organizational objectives),
Societal (satisfying customer wants and need while enhancing individual and
societal well-being.)
4.
The differences between sales and marketing
orientations for marketing management.
a. Sales (inward
looking, focuses on what the firm makes)
b. Market
(outward looking, focuses on what the market wants)
Chapter
2
5.
Characteristics of Strategic Business Units.
a. Distinct
mission and specific target market, control over its resources, its own
competitors, single business or a collection of related businesses, plans
independent of other SBUs in the total organization
6.
What is Strategic Planning?
a. Creating and
maintaining a fit between the organization’s objectives and resources and the
evolving market opportunities
b. Addresses two
questions (what is the organizations main activity at a particular time? How
will it reach its goals?)
7.
Elements of a Marketing Plan, i.e., the process for
Strategic Planning. Make sure to understand each step in-depth.
a. NOTES!!
8.
What is competitive advantage?
a. Factor or
factors that cause customers to patronize a firm and not the competition.
Types: cost, production/service differentiation, niche
9.
What are the different types of competitive advantages?
Make sure to understand each type in-depth.
a. Cost (being
the low cost competitor in an industry while maintaining satisfactory profit
margins. Sources of cost reduction: experience curves; efficient labor,
no-frills products, govt subsidies, product design, reengineering, production,
innovations, and new methods of service delivery.)
b. Product/service
differentiation (provision of something unique and valuable to buyers beyond
simply offering a lower price than competitors: brand names, strong dealer
network, product reliability, image, service)
c. Niche (seeks
to target and efficiently serve a single segment of the market, used by small
companies with limited resources, may be used in limited geographic market,
effective for market segments with good growth potential but is not crucial to
success of competitors)
10. What does
sustainable competitive advantage mean?
a. Advantage that
cannot be copied by the competition, notion is that a successful firm will
stake out a position unique in some manner from its rivals, sources- skills and
assets of an organization (patents, copyrights, locations, equipment,
technology, customer service, and promotion)
11. How to create
a good target marketing strategy?
a. Defining the
business mission, conducting a situational analysis: SWOT analysis, setting
marketing plan objectives, describing the target market strategy, the marketing
mix.
12. How to connect
marketing mix strategies with value creation to consumers?
a. Successful
products and services are those that customers perceive as valuable enough to
buy
13. What are the
four strategic alternatives for Ansoff’s Opportunity Matrix (Growth
Strategies)?
a. Market Penetration
(starbucks sells more coffee to those who reload their starbucks card)[present
market present product]
b. Market
Development (Starbucks opens stores in brazil and chile [new market and present
product]
c. Product
Development (starbucks developed powdered instant coffee called via) [new
product and present market]
d. Diversification
(starbucks launches hear music and buys ethos water) [new product and new
market]
14. Be able to do
analyses using Boston Consulting Group’s Portfolio Matrix.
a. High MGR &
High RMS is stars
b. High MGR and
Low RMS is question marks
c. Low MGR and
High RMS is cash
d. Low MGR and
Low RMS is dogs
15. Be able to do
analyses using General Electric Model.
a. Harvest/divest,
cautiously invest, invest/grow
Chapter 3
16. Definition of
“Ethics”.
a. Viewed as the standard
of behavior by which conduct is judged; consists of personal moral principles,
consists of unwritten rules
17. How to define
corporate social responsibility?
a. Business’s
concern for society’s welfare
18. What is
stakeholder theory?
a. Ethical theory
stating that social responsibility is paying attention to the interest of every
affected stakeholder in every aspect of a firm’s operation
19. The Pyramid of
Corporate Social Responsibility.
a. Top is
philanthropic responsibilities (be a good corporate citizen)
b. Next is
ethical responsibilities (be ethical)
c. Next is legal
responsibilities (obey the law)
d. Bottom is
economic responsibilities (be profitable)
20. How Green
Marketing can help companies to achieve “Sustainability”?
a. Development
and marketing of products designed to minimize negative effects on the
environment or to improve the environment
21. What is
Cause-Related Marketing?
a. Cooperative
marketing efforts between a for-profit firm and a non-profit organization
Chapter 4
22. What is
Environmental Scanning? What does it involve?
a. Process of
collecting and evaluating environmental information by a team of specialists to
identify market opportunities and threats
23. Review how
each factor (social, demographic, economic, technology and innovation, and
political and legal) can potentially influence on a company’s marketing
process.
a. Social- values
and lifestyles
b. Demographic-
gender, age, income, occupation, geographics, education
c. Economic-
consumers incomes, purchasing power, inflation, recession
d. Technology and
innovation- tech success is based upon innovation; imagination and risk taking
e. Political and
legal- business needs govt. regulation to protect innovators of new technology,
the interest of society and consumers; taxes; consumer privacy
24. What is
purchasing power? What is the relationship between income and purchasing power?
a. Measured by
comparing income to the relative cost of a standard set of goods and services
in different geographic areas
25. What is
inflation and how does it influence consumers’ spending?
a. Measure of the
decrease in the value of money; the buyer will not pay more for a product than
the subjective value he or she places on it.
26. What is
recession and how does it influence consumers’ spending?
a. Period of
economic activity characterized by negative growth; reduces demand for goods
and services.
Chapter 5
27. What is global
marketing?
a. Targeting
markets throughout the world
28. How do
marketers form a global vision?
a. Recognizing
and reacting to international marketing opportunities.
29. What are the
benefits and costs of Globalization?
a. Benefits:
expands economic freedom, spurs competition, raises a nations productivity and
living standards, offers access to foreign capital, global export markets, and
advanced technology, promotes higher labor and environmental standards,
outsourcing
b. Costs:
barriers to boost exports and limits imports, leads to people being laid off
from their jobs, inshoring
30. How does a
company develop into a Multinational Corporation?
a. Operate in one
country and sell into others (basic stage), set up foreign subsidiaries to
handle sales (have our own subsidiaries in other countries), operate an entire
line of business in another country, engage in virtual operation
31. What is Global
Marketing Standardization strategy? And what is Multidomestic Strategy?
a. GMS:
production of uniform products that can be sold the same way all over the world
(iphone, cocacola)
b. MDS: provides
a variety of strategies instead of offering the same product. Subsidiaries of
multinational firms are allowed to compete independently in domestic markets.
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