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KELLEY SCHOOL OF BUSINESS - I-CORE MARKETING MIDTERM
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KELLEY SCHOOL OF BUSINESS - I-CORE MARKETING MIDTERM
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KELLEY SCHOOL OF BUSINESS - I-CORE MARKETINGMIDTERM
What is marketing? - Answers- the activity, set of institutions, and processes for
creating, communicating, delivering, and exchanging offerings that have VALUE for
customers, clients, partners, and society at large
What are the core aspects of marketing? - Answers- -helps create value
-satisfying the customer's needs and wants
-entails an exchange
-requires product, price, place and promotion decisions
-can be preformed by both individuals and organizations
-affects various stakeholders
Define needs, wants, and exchange in terms of marketing. - Answers- Needs: feel
deprived
Wants: needs + cultural influence
Exchange: a trade of value
Describe the 5 P's of Marketing (The "Marketing Mix") - Answers- PRODUCT: Although
marketing is a multifaceted function, its fundamental purpose is to create value by
developing a variety of offerings, including goods, services, and ideas, to satisfy
customer needs.
Goods - can be physically touched
Services - intangible, but add value
Ideas- intangible, but add value
PRICE: Price is everything the buyer gives up—money, time, and/or energy—in
exchange for the product. Marketers must determine the price of a product carefully on
the basis of the potential buyer's belief about its value.
PLACE: Represents all the activities necessary to get the product to the right customer
when that customer wants it. Place more commonly deals specifically with retailing and
marketing channel management, also known as supply chain management.
Supply chain management: the set of approaches and techniques that firms employ to
efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores,
and other firms involved in the transaction (e.g., transportation companies) into a
seamless value chain in which merchandise is produced and distributed in the right
quantities, to the right locations, and at the right time, while minimizing systemwide
costs and satisfying the service levels required by the customers.
PROMOTION: Even the best products and services will go unsold if marketers cannot
communicate their value to customers. Promotion is by a marketer that informs,
,persuades, and reminds potential buyers about a product or service so as to influence
their opinions and elicit a response. Promotion generally can enhance a product's or
service's value.
B2B: Business to Business
B2C: Business to Consumer (Keurig)
C2C: Consumer to Consumer
Describe CRM - Answers- CRM - Customer Relationship Management
• A business philosophy and set of strategies, programs, and systems that focus on
identifying and building loyalty among the firm's most valued customers
• To build and maintain profitable customer relationships
• Firms that employ CRM systematically collect information about their customers'
needs and then use that information to target their best customers with the products,
services, and special promotions that appear most important to them
• To deliver superior customer value
• And retain valued customers
*CRM is a concept, it is not just a system
*You can deliver it through people or you can deliver it through a CRM system
*There's no point in investing in CRM if you don't make the customer feel valued
*Companies want to retain the valued customers
What are the 5 questions marketing answers? - Answers- 1) Who cares?
• If an organization can answer this question, they can make the customer a repeat
customer
2) What do they care about?
3) How will they/are they going to know about 'it' (the thing that they want)? Brand
Awareness
4) What will they give up for 'it'?
• Does not JUST mean how expensive it is
• There are other factors of expense, opportunity cost (time, inconvenience, etc.)
5) How will they get/receive this product?
What is the goal of marketing? How do marketers achieve that goal? - Answers- GOAL:
Sustainable Competitive Advantage (outperform customers for *four* years or more)
• Retaining loyal customers
• Deliver customer service
Use: Multiple Sources of Advantage
• A single strategy (low prices, excellent service) is usually not enough to build a
sustainable competitive advantage
What is a metric? What are they used for? Give an example. - Answers- • A metric is a
measuring system that quantifies a trend, dynamic, or characteristic
, • Metrics are used to explain why things happened and also project the future
• P&G devised a strategy to calculate the returns on social media campaigns.
Describe the 4 aspects of the BCG Matrix. - Answers- Stars (upper left quadrant) occur
in high-growth markets and are high market share products.
* require a heavy resource investment in such things as promotions and new production
facilities to fuel their rapid growth. As their market growth slows, stars will migrate from
heavy users of resources to heavy generators of resources and become cash cows.
Cash cows (lower left quadrant) are in low-growth markets but are high market share
products. Because these products have already received heavy investments to develop
their high market share, they have excess resources that can be spun off to those
products that need it. For example, the firm may decide to use the excess resources
generated by Brand C to fund products in the question mark quadrant.
-often have high profits: think about it as "you can milk it"
Question marks (upper right quadrant) appear in high-growth markets but have
relatively low market shares; thus, they are often the most managerially intensive
products in that they require significant resources to maintain and potentially increase
their market share. Managers must decide whether to infuse question marks with
resources generated by the cash cows, so that they can become stars, or withdraw
resources and eventually phase out the products. Brand A, for instance, is currently a
question mark, but by infusing it with resources, the firm hopes to turn it into a star.
-generate low profits, but can turn into cash cows or stars
Dogs (lower right quadrant) are in low-growth markets and have relatively low market
shares. Although they may generate enough resources to sustain themselves, dogs are
not destined for "stardom" and should be phased out unless they are needed to
complement or boost the sales of another product or for competitive purposes.
-Are often liquidated (ex: Blockbusters)
Explain the 4 growth strategies. - Answers- *Market Penetration*
• Employs existing marketing mix
• Focuses on existing customers
• Such a growth strategy might be achieved by attracting new consumers to the firm's
current target market or encouraging current customers to buy from the firm more often
or buy more merchandise on each visit.
• Requires greater marketing efforts, such as increased advertising and additional sales
and promotions, or intensified distribution efforts in geographic areas in which the
product or service already is sold.
• "We want to sell more than what we are currently selling to our market"
*Market Development*
• Employs the existing marketing offering to reach new market segments, whether
domestic or international.
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