Principles of Marketing
Mid-term Exam Fall 2012
1. What is Marketing?
a. 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. It requires thoughtful planning with an emphasis on the ethical implications of any of those decisions on society in general. 2. Marketing requires Product, Price, Place and Promotions decisions. b. The four Ps, or marketing mix, are the controllable set of activities that the firm uses to respond to the wants of its target markets.
3. What is value-based marketing?
a. Value reflects the relationship of benefits to costs, or what the consumer gets for what he or she gives. In a marketing context, customers seek a fair return in goods and/or services for their hard-earned money and scarce time. They want products or services that meet their specific needs or wants and that are offered at competitive prices. 4. Marketing Impacts Various Stakeholders
c. Supply chain partners, whether they are manufacturers, wholesalers, retailers, or other intermediaries like transportation or warehousing companies, are involved in marketing to one another. Manufacturers sell merchandise to retailers, but the retailers often have to convince manufacturers to sell to them. 5. Marketing Enriches Society
* Our people: Committed to excellence, passionate about achieving our goals, eagerly embracing new challenges. * Our strategy: Focused and consistent, delivers sustainable and dependable performance. * Our business model: Resilient and proven, relevant in all economies, drives long-term health of the company. * Our brands: Recognized and loved around the world, in strong categories, responsive to advertising and brand building.
6. What is a Marketing Strategy?
d. Identifies (1) a firm's target market(s), (2) a related marketing mix—its four Ps—and (3) the bases on which the firm plans to build a sustainable competitive advantage. 7. Building a Sustainable Competitive Advantage
e. An advantage over the competition that is not easily copied and thus can be maintained over a long period of time. A competitive advantage acts like a wall that the firm has built around its position in a market. This wall makes it hard for outside competitors to contact customers inside—otherwise known as the marketer's target market. 8. The Marketing Plan
f. a written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and projected or proforma income (and other financial) statements. The three major phases of the marketing plan are planning, implementation, and control. g. Step 1 of the planning phase. The part of the strategic marketing planning process when marketing executives, in conjunction with other top managers, (1) define the mission or vision of the business and (2) evaluate the situation by assessing how various players, both in and outside the organization, affect the firm's potential for success., marketing executives, in conjunction with other top managers, define the mission and/or vision of the business. (Step 2). In the implementation phase. The part of the strategic marketing planning process when marketing managers (1) identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning (see STP) and (2) implement the marketing mix using the four Ps., marketing managers identify and evaluate different opportunities by engaging in a process known as segmentation, targeting, and positioning (STP) (Step 3). They then are responsible for implementing the marketing mix using the four Ps (Step 4). Finally, the control phase. The part of the strategic marketing planning process when...
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