Scan001 TF Assessment 1

Scan001 TF Assessment 1 - TRUE AND FALSE PREPARATION T T F...

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Unformatted text preview: TRUE AND FALSE PREPARATION T T F to 10. ll. l2. l3. 14. 15. 16. l7. l8 Marketing is basically selling and advertising. Customer satisfaction is the extent to which a firm fulfills a consumer's needs, desires and expectations. lt°a firm produces the right goods or services, marketing has little role to play in creating customer satisfaction. Marketing can provide needed direction for production and help make sure that the right goods and services find their way to interested consumers. Marketing creates task utility, but not time or place utility. The job of marketing is to guide the development of form and task utility, and to provide time, place and possession utilities. Marketing is the performance of“ activities that seek to accomplish an organization's objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to customer or client, Marketing activities are performed only by profit-oriented organizations. Marketing activities should begin with potential customer needs, not with the production process. Marketing should begin with the production process. Marketing is concerned with individual transactions rather than with building ongoing relationships with customers because that is the job of people in the public relations department. Whether a particular marketing system is judged fair and effective depends on the objectives of' the society. An economic system is the way an economy organizes to use scarce resources to produce goods and services and distribute them for consumption among various people and groups in the society. A market—directed economy is one in which government planners decide what and how much is to be produced and distributed by whom, when, to whom, and why. Market-directed systems tend to provide consumers with greater freedom of choice than planned economic systems. In a market-directed economy, profit is guaranteed. No economic system--whether centrally planned or market directed-can achieve its objectives without an efi‘ective marketing system. Marketing does not occur unless there are two or more parties who want to exchange something for something else. T 19. 20. 21, 22. 23. 24. 25. ' 27. 28. 29. 30. 31. 33. 34. A market is a group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods and/or services, The advantages of working with intermediaries (middlemen) increase as the number of producers and customers, their distance apart, and the number and variety of competing products increase "Economies of scale" means that as a company produces more of a product the total cost of production goes up, "Economies of scale" means that as a company produces more of a product the cost of each unit produced goes down. Both mass production and effective marketing are needed to satisfy the economic needs of an advanced economy. A market-directed marketing system encourages the development and spread of new ideas and products Marketing ethics are the moral standards that guide marketing decisions and actions. During the "production era" a company focuses on production-—because few products are available in the market. During the "sales era, ” the firm tries to improve short-run marketing policy planning to tie together its activities. The "marketing department era" is a time when all marketing activities are brought under the control of one department. During the "marketing company era, " the total company efi‘ort is guided by the idea that customers exist to buy the firm's output. The "marketing concept" means that a firm emphasizes attracting new customers above all other objectives. A firm that adopts the "marketing concept” will aim all its efforts at satisfying customers, while trying to make a profit, A firm that makes products which are easy to produce and then tries to sell them has a production orientation. A marketing—oriented firm would try to produce what customers want, while a production~ oriented firm would try to get customers to buy what the firm has produced. The three basic ideas in the marketing concept are 1) putting the marketing manager in charge of the whole firm, 2) a competitive orientation, and 3) an emphasis on profit. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 46. 47. 48. 49, 50. 51. When a firm makes a total company effort to satisfy its customers, and profitwnot just sales——is an objective of the firm, the company is practicing the "marketing concept." In a firm which practices the marketing concept, the efforts of each functional department are guided by what it does best. Customer value is the difference that a customer sees between the benefits of a firm‘s offering and the costs of obtaining those benefits. When it comes to customer value, it is the customer’s view that matters, not the view of the marketing manager. Offering superior customer value is especially important when competition is intense. Often the best way for a firm to beat the competition is to be first to find and satisfy a need that others have not even considered. To develp lasting relationships with customers, marketing-oriented firms need to focus on customer satisfaction both before and after each sale. The marketing concept applies to nonprofit organizations as well as to businesses. Organizations that adopt the marketing concept should be concerned about marketing ethics as well as broader issues of social responsibility. The five basic keys for success in the marketing management process are determine price sensitivity, understand the value of product differentiation, segmenting broad markets into targeted markets, develop relationships with target customers, and living a commitment to creating customer value. Finding attractive opportunities and developing profitable marketing strategies are the tasks included in the marketing managers marketing strategy planning job. A marketing strategy is composed of two interrelated parts—~a target market and a marketing mix. Mass marketino means focusing on some specific customers, as opposed to assuming that everyone is the same and will want whatever the firm offers. "Mass marketers" like Kmart usually try to aim at clearly defined target markets. The "four P3" of the marketing mix are People. Products, Price, and Promotion. Product, Place, Promotion and Price are the four major variables (decision areas) in a firm's marketing mix. Although the customer should be the target of all marketing efforts. customers are not part of a marketing mix. 52‘ 53. 54. 55. 56. 57. 59. 60 (Si. 62. 63. 65. 66. 67. The Product area of the marketing mix may involve a service and/or a physical good which satisfies some customers' needs. The Place decisions are concerned with getting the right product to the target market at the right time. Finding "competitive advantages" is important because they are needed for survival in increasingly competitive markets. Differentiation means that the marketing mix is distinct from and better than, what is available from a competitor. Differentiation often requires a firm to fine-tune its marketing mix to meet the specific needs of its target market(s). Differentiation emphasizes uniqueness rather than similarity. Differentiation emphasizes similarity rather than uniqueness. A SWOT. analysis identifies the "special weapons or tactics" used by the competitor in a product market that has the most profitable marketing mix. A good S WOT, analysis helps a manager focus On a strategy that takes advantages of the tirm's opportunities and strengths while avoiding its weaknesses and threats to its success. The letters in "SWOT. analysis“ are an abbreviation for the first letters of the words “strengths, weaknesses, opportunities and threats" Marketing opportunities involving present products and present markets are called "market penetration" opportunities. If Burger King added tacos to the "burger-oriented" menu in its existing restaurants, it would be seeking "market development" opportunities. When a firm tries to increase sales by ofi‘ering new or improved products to its present markets, this is called "product development." Marketing opportunities that involve moving into totally different lines of business are "diversification" opportunities. A market is a group of two or more sellers who otter substitute ways of satisfying customer needs. Efi'ective market segmentation is a two-step process that starts with naming broad product— markets and then goes on to segmenting these broad product—markets into more homogeneous submarkets. 68. 69. 70. 71. 72. 73. 74. 75. 76. 77. 78. 79. 80. 81. 82. 83. 84. Using one or two demographic dimensions to describe market segments usually does not provide enough detail for planning a marketing strategy. Market segmentation says that target marketers should develop one good marketing mix aimed at a fairly large market. Marketing-oriented managers see segmenting as a process of aggregating people with similar needs into a group. Ideally, segmenters should start with the idea that each person is "one of a kind” and can be described by a special set of dimensions that may be used to aggregate similar customers together. One of the difficult things about segmenting is that not every customer will neatly fit into some market segment. A "good" market segment should be composed of people who are as homogeneous as possible with respect to their likely responses to marketing mix variables. "Good" market segments should be homogeneous (similar) within, heterogeneous (different) between, substantial, and operational. "Good" market segments should be heterogeneous within and homogeneous between. A "substantial" market segment is one which is big enough to be profitable. The more heterogeneous a firm’s target market becomes, the more likely the firm will see competition from an innovative segmenter. Dimensions that should be looked at when segmenting consumer markets are‘ geographic location and other demographic characteristics, behavioral needs, urgency to get needs satisfied, and willingness to compare and shop. "POSlthIIiIl " Shows 110“! proposed and/or present brands are located in a mar ket——as seen b g y customer S. "Positioning" means using a map to show where a firm’s products are distributed geographically. Earning a profit probably should be one of the objectives of a but it should not be the only one. lt‘the cost of production per unit goes down as the quantity produced increases, small producers can be at a great cost disadvantage. In market—directed economies, unregulated monopolies are rare. In monopolistic competition, managers sometimes try to differentiate very similar products by relying on promotion or other elements of the marketing mix. F 85‘ F 86. F 87. F 88‘ F 89. F 90. Competitive barriers are conditions that make it difficult for a firm to compete in a market. Changes in technology can have major impacts on marketing strategy planning. Marketers should be aware of federal legislation, as well as state and local laws, when planning marketing strategy. The cultural and social environment affects how and why people live and behave as they do, Most changes in the cultural and social environment come slowly, Even though the more developed industrial nations don’t have the largest populations, they do have the biggest share of the world's GNP. ASSESSMENT 1 TRUE AND FALSE STUDY UNIT 1F 46T 2T 47F 3F 48T 4T 49F 5F SOT GT 517 7T 52T 8F 53T 9T S4T 10F SST 11F 551‘ 12T 571' 13T 58F 14F 59F 151‘ 60T 16F 51T 17T 62T 18T 63F 19T 64T ZOT 6ST 21F 66F 22T 67T 23T 68T 24T 69F 25T 701‘ 261’ 71T 27F 72T 28T 73T 29F 741 30F 75F .311 76T 321" 77T 33T 78T 34F 79T 351“ 80F 36F 81T 37T 82T 38T 83T 39T 84T 40T SST 411' BST 421' 87T 437 38T 44T 89T 45T 90T ...
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Scan001 TF Assessment 1 - TRUE AND FALSE PREPARATION T T F...

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