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D077 Concepts in Marketing, Sales, and
Customer Contact
Customers - Purchasers of a good or service Marketing - Business function that identifies, satisfies, and retains customers through a set of activities related to creating, communicating, delivering, and exchanging offerings that have value for the customer. Consumer - The user of a purchased product or service Good - Physical product offering manufactured by a business Service - Intangible product offered by a a business Customer Satisfaction - A measure of how products or services delivered by a company meet or exceed customer expecations Marketing Concept - Business philosophy holding that a company's goals can best be achieved by identifying and satisfying the target customer's needs and wants What is the main function of marketing? 1 - Increasing productivity 2 - Bringing value to customers 3 - Decreasing expenditures 4 - Improving partner relationships - Bringing value to customers To determine what customers value, want, or need and then to position a product that meets that value Which set of connections is created by marketers to generate value? 1 - Between customers and products 2 - Between companies and suppliers 3 - Between customers and suppliers 4 - Between companies and media - Between customers and products Marketing generates value by determining what its target customers want or value, and then positioning a product to meet that need or desire. What is the relationship between sales and marketing in a firm's business strategy?
1 - Sales includes the process of communicating the value of a product or service, while marketing involves calculating how much profit has been earned for a company within a fiscal year. 2 - Sales includes the process of communicating the value of a product or service, while marketing focuses on the actual exchange of money for a product or service. 3 - Sales includes the exchange of money of a company's product or service, while marketing is the process of communicating the value of a product or service. 4 - Sales includes calculating how much profit has been earned for a company within a fiscal year, while marketing is the process of communicating the value of a product or service. - Sales includes the exchange of money of a company's product or service, while marketing is the process of communicating the value of a product or service. What is an example of a marketing activity? 1 - A sales associate liquidating inventory 2 - A manager conducting research on potential customers 3 - An engineer conducting quality control review 4 - An executive reporting on stock performance - A manager conducting research on potential customers A marketing concept is defined as the use of marketing data to focus on the needs and wants of customers in order to develop marketing strategies that not only satisfy the needs of the customers, but also accomplish the goals of the organization Marketing Mix (4 P's) - Product, price, place, and promotion—the controllable elements in the marketing environment Product - a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value Product life cycle - Phases of a product from introduction to growth, maturation, and decline. Product Mix - The complete range of products offered for sale by a company throughout its product lines, also known as the product assortment. Product width - the number of different product lines, ro series of products a company offers Product Lines - Series of similar products focused on a sector that company creates under a single brand Product Depth - Numbers of versions offered for each product in the product line
Prestige Pricing - The strategy of raising the price of a product so consumers will receive it as being of higher quality, status, or value. Competitive pricing strategy - Setting the price of a product according to competitor prices, to use price as one of the features that differentiates the product. Promotion - methods for informing and influencing customers to buy the produc t. What are traditional advertising, sales promotion, ,public relations, personal selling, social media, and digital marketing? - Elements of Promotion Social Media - websites and applications that enable users to create and share content or to participate in social networking. Digital Marketing - All of a company's marketing efforts that use an electronic device or the Internet. Traditional Advertising - Any paid from of nonpersonal promotion by an identified sponsor that is delivered through traditional media channels Personal Selling - A face-to-face presentation to a prospective buyer, often based on long term relationships Sales Promotion - marketing activities - other than personal selling, advertising, and public relations - that stimulate consumer buying and dealer effectiveness, includes coupons and samples, displays, shows and exhibitions Public relations - The linking of organizational goals with key aspects of the public interest and the development of programs designed to earn public understanding and acceptance. Influencer Marketing - Using paid brand advocates who have large social followings with a target audience to promote a product or brand on social media E-Commerce - The use of a company's website to generate sales through online ordering, information, interactive components such as games, and other elements of the website. Online Adverstising - The use of the internet to advertise is a form of promotion that comes in many forms including online banner ads, pop-up ads, video advertisements, etc. Content Marketing - A subset of digital marketing, content marketing involves the creation and sharing of online material designed to create interest in a product, service, or idea without directly promoting the brand.
Guerilla Marketing - Marketing communication that is generally experimental and often involves unconventional, innovative, and usually low-cost marketing tactics to engage consumers in the marketing activity, generate attention, and achieve maximum exposure for an organization, its products, and services. Integrated Marketing Communications (IMC) - Immersive and targeted communication with customers to help move them through the various stages of the buying process Omnichannel Communication - Unified and consistent communication with customers across all channels a company employs Place - Element of the marketing mix involved in getting the product from the producer to the customer 1 - Transportation 2 - Location 3 - Supply chain management 4 - Online presence 5 - Inventory 6 - Atmospherics - Elements of Place marketing Mix Atmospherics - the physical elements in a store's or website design that appeal to consumers' emotions and encourage buying Distribution - Efficiently managing the acquisition of raw materials by the factory and the movement of products from the producer or manufacturer to B2B users and consumers. Supply Chain - System through which an organization acquires raw material, produces products, and delivers the products and services to its customers Supply chain management - helps increase the efficiency of logistics service by minimizing inventory and moving goods efficiently from producers to the ultimate users Direct distribution - products are sold from producers to end users and consumers Indirect distribution - involves marketing intermediaries, or organizations that assist in moving goods, and services from producers to end user and consumers. Commonly include agents and brokers, industrial distributors, wholesalers, and retailers Distribution Channels - are the series of marketing entities through which goods and services pass on their way from producers to end users. Vertical Marketing Systems - Cooperation between multiple levels of a distribution channel. 3 parts corporate, contractual, and administered
Competitive Elements - Includes such factors as new and shifting competition from domestic and foreign-based firms Natural/Ecological Elements - Uncontrollable Element, includes such factors as natural resources, increased pollution, supply of raw materials, and practices that support environmental sustainability Political-Legal Elements - Uncontrollable Element: Includes such factors as changes in laws, regulatory agency activities, and political movements Socio-Cultural Elements - Uncontrollable Element: Includes such factors as the buying behaviors of specific cultures and subcultures, the values of potential customers, the changing roles of families, and other societal trends such as employees working from home and flexible work hours Demographic Elements - Uncontrollable Element: Includes such factors as changes in the ages of potential customers (e.g. baby boomers, millennials), birth and death rates, and locations of various groups of people Technological Elements - Uncontrollable Element: Includes such factors as advances in telecommunications and computer technology Economic elements: - Uncontrollable Element: Includes such factors as changing incomes, unemployment levels, inflation, and recession Which 3 components are part of the marketing mix?
- Power
- People
- Promotion
- Professionalism
- Product
- Place - Promotion, Product, Place What is the meaning of the term "uncontrollable elements"? - Elements that are outside of a marketer's control Which 3 items are controllable elements in the marketing environment
- Competition
- Place
- Product
- Price
- Legal
- Political - Place, Product, Price
Which 3 items are considered uncontrollable elements?
- Economic
- Place
- Technology
- Price
- Competition
- Product - Economic, Technology, Competition PEST - Political, economic, social, and technological Consumer Confidence - Statistical measure of consumers' level of optimism about current and future economic conditions Business Cycle - Economy-wide fluctuations in production, trade, and general economic activity Generation Gaps - Differences in outlook, opinions, values, and cultural norms between people of different generations A small tobacco shop that just opened wants to run advertising on a local radio station. When they approach the radio station's sales department, they find that the station will not run their ad. What type of uncontrollable element prevents the running of this advertisement? - Legal A manufacturer of children's toys discovers that a number of products that it makes and sells have been duplicated and are selling alongside their products on various e- commerce sites. The duplicate products appear to be made overseas and are selling for 30% lower. The company's sales department feels pressure to lower pricing to match that of the duplicate products in an effort not to lose sales. Which element in the marketing environment is demonstrated in this situation? - Competitive Elements A restaurant owner has noticed a shift in the restaurant's customer attitudes towards locally-sourced and sustainable ingredients and is changing the menu in an effort to cater to these customers. What element of the marketing environment does this represent? - Socio-Cultural factors A large general contractor is having trouble meeting its labor needs, given the low unemployment in the area. The company begins advertising for construction workers in an adjacent state, offering a generous sign-on bonus in an effort to fill open positions. What element of the marketing environment is the company addressing? - Economic A smaller startup company plans to sell affordable footwear, manufactured from sustainable materials. Company leadership assembles an ethics panel to ensure their products meet their goals of sustainability and eco-friendliness, while finding a niche
- Co-branding wit the warehouse
- Creating awareness of fresh meals
- Identifying the food insecurity
- Promoting its food partnerships - Creating awareness of fresh meals The community center is the first in the city to offer freshly prepared meals in partnership with the food warehouse. Which stage of the product life cycle do the meals represent to the community?
- Growth
- Decline
- Introduction
- Maturity - Introduction The director plans to design and implement a marketing campaign. Which example describes the director's primary goal for the marketing campaign?
- Fundraising for other programs
- Promoting awareness of its food offerings
- Distributing local food from the warehouse
- Creating educational resources for citizens - Promoting awareness of its food offerings What is one example of an uncontrollable element of the community center's marketing environment?
- The center's social media content
- Number of meals prepared daily
- Community partnership advertising campaign
- Citizen participation in meals - Citizen participation in meals The director researches the reason for the community's food insecurity and learns that companies closed during the recent recession and left individuals without jobs. This unemployment has created significant food insecurity among those who remain without stable incomes. Which element of the PEST analysis is the community center responding to by creating its meal program?
- Economic needs of community citizens
- Legal requirements for food preparation
- Social influencers in the community
- Tracking food donations using technology - Economic needs of community citizens Which ethical consideration in marketing is illustrated by the community center's meal program?
- Providing dairy-free products
- Creating new partnerships
- Posting community testimonials
- Offering food to everyone - Offering food to everyone Marketing Plan - a comprehensive document or blueprint that outlines a business advertising and marketing efforts for the coming year. Marketing Planning Process - The steps an organization goes through to create a marketing plan with specific objectives, strategies, and tactics for the marketing effort. Marketing Objectives - Specific, measurable achievements that an organization wants from its marketing activities within a specified time frame What are the key components of the marketing plan? - - Identifying the marketing mission statement
- Conducting a situational analysis
- Defining objectives
- Developing strategies and tactics
- Monitoring and controlling Marketing Mission Statement - Explanation of why the marketing plan exists and what problem it hopes to resolve Situational Analysis - A collection of methods that marketers use to analyze and understand an organization's capabilities, customers, and business environment SWOT analysis - Analysis of the internal, controllable factors and external uncontrollable factors that influence an organization Organizational Capabilities - Combinations of skills, processes, human abilities, and competencies that are unique to an organization A marketing department develops a marketing plan that focuses on departmental goals and the actions the department must take to achieve them. Which component provides this detailed information?
- Marketing mission statement
- Marketing objectives
- SWOT analysis
- Positioning statement - Marketing Objectives A business team is revising the document meant to guide the marketing department, managers, and teams as they work to identify the department's objectives and how to reach them. Which document is being revised?
- Situational analysis
- Market
- Internal
- External
- Consumer - External What 2 aspects does the BCG matrix consider? - 1 - What is the current market share? 2 - What is the market's growth potential BCG Matrix - Dog - No room for growth, which suggest that no new funds should be invested in it. BCG Matrix - Cow - high market share in a slow-growing industry. It is brining in more money than is being invested in it, but does not have much growth potential. The profits can be used to fund high-growth investments, but the cow warrants low investment. BCG Matrix -? - low market share currently, but is in a growing industry. Has the potential to be a star or a dog, so close monitoring is needed to determine its growth potential BCG Matrix - Star - High market share in fast-growing industry. Poised to bring a strong return on funds invested. It also has potential to become a cow at the end of the product life, which can fund future investments A sales manager is reviewing the current products in the company's portfolio and sees that one product that has been sold for a decade is now the slowest-selling product in a mature industry. Which BCG model category could be used for this product?
- Dog
- Cow
- Question Mark
- Star - Dog A sales manager reviews the current products in the company's portfolio and sees that one product the company began selling for about a year is now showing high market share in a fast-growing industry. Which BCG model category could be used for this product?
- Cow
- Dog
- Question Mark
- Star - Star Porter's Five Forces: Threat of new entrants - barriers to entry, the likelihood that new competitors will enter the market
Porter's Five Forces: Threat of substitute products or services - The existence of different products that fulfill the same need increases the likelihood that customers will switch to alternatives. Example: GM would view subways as a substitute for someone buying a new car. Porter's Five Forces: Rivalry - How many firms are in the industry and how their competitive dynamics reduce profitability. Airlines have extremely high rivalry Porter's Five Forces: Bargaining power of Buyers - Bargaining power of customers is the ability of customers to put a company under pressure, which also affects the customer's sensitivity to price changes. If the supply greatly outstrips the demand, the buyers have more power than the suppliers. Porter's Five Forces: Bargaining power of suppliers - When there are few substitutes, suppliers of raw materials, components, labor, and services to an organization can be a source of power over the organization. Suppliers can refuse to work with the company or charge excessively high prices for unique resources. A manufacturer produces a Bluetooth thermometer for grilling. The product is high-end and priced accordingly. A year after introduction to the market, one of the company's salespeople sees another company's ad for a very similar Bluetooth thermometer at a much lower price. Which of Porter's Five Forces is occurring in relation to this product?.
- Competitive rivalries
- Threat of new entrants
- Bargaining power of suppliers
- Bargaining power of buyers - Competitive rivalries A firm is planning to launch a new product. They also have adopted a vision for how they will achieve their objectives. What type of planning is being used by this firm?
- Communication
- Strategic
- Merchandising
- Tactical - Strategic Marketing Strategy - a company's vision that identifies how it will use marketing to achieve its goals A firm is launching a new product and has developed a plan outlining specific activities and allocation of resources needed to implement that plan over a given period of time. What type of planning is being used by this firm?
- Tactical
- Merchandising
- Strategic
needed so Charlie can determine whether Sure Start should begin considering new markets. Which marketing planning tool will give Charlie this knowledge?
- Strategic opportunity matrix
- BCG matrix
- SWOT analysis
- Mission statement - BCG Matrix The chief financial officer (CFO) asks marketing managers to buy advertising in all trade magazines in their respective geographic areas for one year. Which type of planning is the CFO asking managers to conduct?
- Strategic marketing with controllable elements
- Strategic marketing with uncontrollable elements
- Tactical marketing with controllable elements
- Tactical marketing with uncontrollable elements - Tactical marketing with controllable elements The chief financial officer (CFO) asks the marketing managers to generate, collectively, an additional $250,000 in sales annually. What type of planning is the CFO asking managers to conduct?
- Strategic marketing with uncontrollable elements
- Tactical marketing with uncontrollable elements
- Strategic marketing with controllable elements
- Tactical marketing with controllable elements - Strategic marketing with uncontrollable elements Marketing Research - the process of systematic gathering, recording, and analyzing data about customers, competitors, and the market Common subjects for marketing research - - Environmental factors and how they affect consumer behavior
- Customer attitudes, behaviors, and perceptions
- Product Research
- Marketing, advertising, promotion research
- Corporate research A sales manager uses market research to examine a geographic area the company wants to consider for expansion. What is a benefit of this market research?
- Determine likely customers.
- Identify potential liabilities.
- Select products for development.
- Determine marketing budget. - Determine likely customers
Which type of research yields data that are useful to a sales manager who wishes to better understand the company's customers?
- Marketing
- Environmental
- Corporate
- Product - Marketing A sales manager reviews the latest reports for a primary product in a rapidly growing market and sees that sales have dropped significantly. The manager conducts marketing research to understand the drop in sales. Which benefit of marketing research will assist this sales manager?
- Reporting sales growth
- Identifying competitors
- Identifying customers
- Analyzing stock value - Identifying competitors A company is introducing a new product and wants to conduct market research to position the item for maximum growth and sales. Which component of marketing research provides this information?
- Promotion
- Product
- Corporate
- Customer - Product Primary research - Involves data collection that is tailored to the specific challenge or problem you are trying to address. Can be qualitative or quantitative Qualitative Research - explores ideas, perceptions, and behaviors Quantitative Research - Collects information that can easily be counted, tabulated, and statistically analyzed Secondary Research - Using already existing data that may be relevant to what you want to know A sales manager is analyzing the sales reports for the prior year in an effort to budget for the next year's marketing. What type of data is this manager reviewing?
- Primary
- Quantitative
- Tertiary
- Qualitative - Quantitative
The owner of a small business wants to invest in expansion and needs demographic data on customers in the area, but has a small budget for this kind of information. Which kind of research will fit this owner's needs?
- Psychographic
- Primary
- Ethnographic
- Secondary - Secondary A sales manager needs information on potential customers that fit both a specific demographic and live in a specific geographic location. A salesperson suggests using secondary research, but the manager decides to use primary research instead. Why did the manager choose primary research over secondary research for this purpose?
- Secondary research uses historical data.
- Secondary research uses existing data.
- Primary research provides richer data.
- Primary research is cheaper to conduct. - Primary research provides richer data Which type of research consists of source data previously collected for other purposes?
- Psychographic
- Primary
- Secondary
- Ethnographic - Secondary Ethnographic research - Study through direct observation of users in their natural environment (as opposed to a laboratory environment) Groupthink - Psychological phenomenon in which individual members of a group accept a viewpoint or conclusion that represents a perceived group position (even when it conflicts with their own beliefs or judgment) Observation - watching customers and non customers engage with a product Recording customer expressions when eating a new sandwich in a restaurant. What technique is described? - Observation In-depth interviews - Conversations with an individual the marketer wants to understand better Discussing a medical doctor's decision to prescribe a particular pharmaceutical drug to a patient. What technique is described? - In-depth interview Focus Group - Small groups of individuals (usually 6-12) who delve deeply into topics of interest
Group of young college students discuss their impressions of a new subscription streaming service. What technique is described? - Focus Group Social listening - Monitoring conversations on social media or soliciting input from a social media community Following the comments on a blog post about a new restaurant. What technique is described? - Social listening Survey Research - Asking individual consumers to provide responses on a questionnaire Emailing a survey to a banking customer after a visit to a branch. What technique is described? - Survey research Experiment Research - Testing the effect of varying a factor or set of factors in a marketing artifact Conducting A/B testing on a new website landing page for a product. What technique is described? - Experiments A marketing manager wants to engage customers face-to-face in a setting where the individuals have the opportunity to voice their opinions and suggestions. What type of marketing research technique is being used by this manager?
- Ethnographic research
- Focus group
- Social media listening
- Survey instrument research - Focus Group The marketing manager for a small company has no budget for research. The manager decides to investigate what customers are saying about the company's products online instead of using more costly approaches. Which primary marketing technique is being used by this manager?
- Focus groups
- Observation research
- Ethnographic research
- Social listening - Social listening Internal data - Information your company already has collected, such as sales and marketing records, customer account information, and product purchasing and usage data.
