Marketing summary Exam 100% Correct
Definition of Marketing - ANSWERMarketing is 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.
(Approved 2017)
What ...
Definition of Marketing - ANSWERMarketing is 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.
(Approved 2017)
What is customer value? - ANSWERCostumer Value =
Relative benefits/ Relative costs
What is transactional marketing (TM)? - ANSWERTransactional marketing is a business strategy that
focuses on single, "point of sale" transactions. The emphasis is on maximising the efficiency and
volume of individual sales rather than developing a relationship with the buyer.
The transactional approach is based on the four traditional elements of marketing, sometimes
referred to as the four P's:
Product -- Creating a product that meets consumer needs.
Pricing -- Establishing a product price that will be profitable while still attractive to consumers.
Placement -- Establishing an efficient distribution chain for the product.
Promotion -- Creating a visible profile for the product that makes it appealing to customers.
What is relationship marketing (RM)? - ANSWERRelationship marketing is the ongoing process of
identifying and creating new value with individual customers and then sharing the benefits from this
over a lifetime of association. It involves the understanding, focusing and management of ongoing
collaboration between suppliers and selected customers for mutual value creation and sharing
through interdependence and organisational alignment.
The marketing management process with the SOSMAC approach - ANSWER1. Where are we now?
Market shares, Customer acquisition and Retention targets, Customer satisfaction targets
3. How do we get there long-term?
STP (Segmentation, Targeting and Positioning)-
,Value proposition
Use of strategy tools (Ansoff, BCG, GE/McKinsey)
4. How do we get there mid-term?
Marketing Mix (4Ps, 7Ps), Social Media Marketing, E-commerce
5. How do we get there short-term?
Who does what and when? Locate responsibilities
6. How do we monitor performance?
KPIs, evaluate performance against KPIs
The four levels of strategy are: - ANSWER1. corporate strategy
This level answers the fundamental question of what you want to achieve.
2. business-level strategy
This level focuses on how you're going to compete.
3. functional strategy, e.g. marketing strategy
This strategy level focuses on how you're going to grow.
4. operational strategy
This one focuses on overcoming the flaws of production processes, resource
optimization, people, quality and inventory control processes etc
What is covered in the mission statement? - ANSWERWhat the organisation is and what it does. The
mission statement may change if the company outlives the industry it started in, but it should still tie
back to the core values.
1. what the company does for its customers?
2. what the company does for its employees?
3. what the company does for its owners?
4. what the company does for its community?
5. what does the company for the world?
, What is covered in the vision? - ANSWERA vision statement is what the enterprise want to become. A
vision statement should build enthusiasm. It should provoke inspiration. It should stimulate people to
care.
(Where do we wish to go?)
What are objectives? - ANSWERSpecific, quantifiable, realistic targets that measure the
accomplishment of a goal over a specified period of time.
e.g. "Increase revenues by x% in 2004. Limit increases in overhead costs to y%. Achieve a z%
reduction in management staff through increased automation."
different organisational forms of relationship marketing - ANSWERdyadic relationship:
A dyadic buyer-seller relationship that tends to ignore the role of other elements in the distribution
channel and the role of
other stakeholders.
Chain of relationships:
The relationship is still dyadic but goes beyond the buyer-seller relationship to include all marketing
activities directed towards establishing, developing and maintaining successful relational exchanges
in the total vertical value chain. This results in several dyadic relationships along the vertical chain.
Networks:
A more complex structure of relationships or networks involving three or more actors.
transactional vs relationship marketing - ANSWER
Strategic marketing planning process
(4 questions needs to be answered) - ANSWER1. What are we doing? -> Mission statement
2. Where are we today? -> Situational analysis
3. Where do we want to go? -> Strategic objectives
4. How do we get there? -> Strategy
Marketing Process - four key tasks - ANSWER1. Analysis
Strengths and Weaknesses
2. Planning
strategic planning -> Strategy
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