Adms 2200 Mid-Term Exam Prep

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Marketing: the process of planning and executing of a product, its pricing, its promotion, and its distribution. In addition marketing attempts to manage customer relationships in ways that benefit the organization and its stakeholders. Marketing creates UTILITY (want-satisfying power of a good or service) through the exchange process. Time Utility – Availability of goods and services when people want them. Place Utility – Availability of goods and services at convenient locations. Ownership Utility – Ability to transfer title to goods and services from marketer to buyer. Form Utility – Conversion of raw materials and components into finished goods and services.

Four eras in the history of marketing: Production (prior to 1920s) – a product will sell itself Sales (prior to 1950s) – creative promotion will overcome consumers resistance and convince them to buy Marketing (Since 1950s) – The consumer rules! Find a need and fill it. Relationship (Since 1990s) – Focuses on building long-term, value-added relationships overtime with customers and suppliers. Marketing Myopia – the failure to recognize the scope of a company’s business. To avoid marketing myopia a firm must find innovative ways to reach new markets with existing goods and services. The five categories of non-traditional marketing are: Person – promotes a person Place – promotes a geographical area Cause – promotes a social issue, cause, or idea Event – promotes an event Organization – promotes an organization (not business) that seeks to influence others to accept their goals. (United Way, Red Cross, Amnesty International)

Creativity – the production of original ideas Critical Thinking – the process of determining the authenticity, accuracy, and worth of information, knowledge, claims, or arguments. Creativity and Critical Thinking are important to marketers because they generate new ideas and then use discipline to analyze the best course of action.

Interactive Marketing: Buyer-seller communications in which the customer controls the amount and type of information received from a marketer through such channels as the

Internet, CD-ROMs, interactive toll-free telephone numbers, and virtual reality kiosks. Interactive Marketing technologies create direct communication with customers, allow larger exchanges, and put the customer in control. Technology can lead to new or improved goods and services, offer better customer service, and reduce prices. It can also address social concerns. Marketers need to monitor the technological environment in order to stay current with and possibly a head of competitors. If Marketers do not monitor the technological environment they may wind up with obsolete offerings. One-to-One Marketing: Customized marketing program designed to build long-term relationships with individual customers. Identifies a firms best customers and increases their loyalty. Relationship Marketing: Development and maintenance of long-term cost-effective relationships with individual customers, suppliers, employees, and other partners for mutual benefit. Relationship Marketing gives companies a competitive edge as it rewards customers through the use of loyalty ladders, which aid in generating repeat sales and long-term relationships. Integrated Marketing: Coordination of all promotional activities to produce a unified, customer-focused promotional message. Strategic Alliance: A strategic alliance is a partnership formed between two organizations to create a competitive advantage. Eight Universal Marketing Functions Exchange functions: Buying: Ensuring product offerings are available in sufficient quantities to meet customer demands Selling: Using advertising, personal selling, and sales promotion to match products to customer needs. Physical functions Transporting: Moving products from their point of production to locations convenient for purchasers Storage: Warehousing products until needed for sale. Facilitating functions: Standardization &...
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