Marketing Midterm Study Guide
Chapter 1 Notes:
Many people perceive marketing to be just advertising and personal selling, but it involves much more, including efforts by
individuals and organizations to satisfy customer needs and wants, create value, and make exchanges. Preparation of
financial statements is not part of marketing, although concerns about brands definitely are.
Marketing decisions focus on the four Ps of the marketing mix: price, product, place, and promotion.
Manufacturing processes are not the responsibility of marketing.
Exchange is the basis of marketing, with both parties to the exchange receiving something of value.
Marketing decisions focus on the four Ps of the marketing mix, which are the marketing activities controlled by the firm or
In addition to marketing goods, marketers also work with SERVICE, which offer customers intangible benefits, are produced by
people or machines, and cannot be separated from the producer. Goods, services, and ideas can be marketed. Marketing
services is an essential part of marketing. Services marketing are based on the same fundamentals as the
marketing of goods but extend these ideas.
Promotional messages are designed to accomplish one or more of the three promotional goals; informing customers,
persuading customers to take action, or reminding customers about a marketer's product or service.
Employment Marketing is used to find the best workers. Forwardlooking firms recognize the power of marketing and are
establishing marketing approaches to find key approaches to meet their needs.
Some firms like Nike and Mars, Inc., the maker of M&Ms, involve customers directly in the design of products and services to create
additional value and strengthen the relationship between the customer and the firm. This practice is known as: value co
Customizing orders is a powerful way to address the individual needs of customers.
Customers seek benefits and will consider tradeoffs among them, while also considering costs. In valuebased marketing, the
meeting as many needs as possible while also keeping costs down.
Customer relationship management is a philosophy that leads to a set of strategies, which often include programs and
systems designed to build loyalty among customers.
Expanding globally will lead to marketers job to understand their new customers. Since marketers are the "eyes and ears" of
an organization, they are in the best position to help organizations understand customers.
Chapter 2 Notes:
A sustainable competitive advantage is something a firm can persistently do better than its competitors. Supply chain
efficiency, brand name, customer satisfaction, and patented technology are all potential sources of sustainable
Customer, locational, product and operational excellence are all ways a firm can create value and can lead to
sustainable competitive advantages
Product excellence is one of the overarching strategies, and a firm may use the product itself, branding, and positioning to
create an advantage difficult for a competitor to copy.
A strategic marketing plan usually begins with a situation audit. It also identifies strategic opportunities and potential threats.
It includes an evaluation of alternatives, a set of objectives, action plans, and appropriate pro forma financial statements. The first step in the strategic marketing planning process is to identify the business a firm is in and to identify what
is needed to accomplish its goals and objectives. The business mission should guide all areas of the firm in addition
to the marketing area
SWOT part of the audit. In a situation analysis a firm will examine the positives and negatives in its internal operations –
strengths and weaknesses. It will also examine the positives and negatives in the external environment – opportunities
No firm has sufficient resources to create value for all consumers. Marketers engage in target marketing to focus their firm's
efforts for those segments of the marketplace that are most attractive.
In the implementation phase of the strategic marketing planning process, marketers execute the marketing mix including
pricing, product, promotion, and place decisions.
The idea of valuebased pricing requires firms to charge a price that captures the value customers perceive they are receiving,
which can be difficult to determine. In valuebased pricing, firms first determine the perceived value of their product from the
customer's point of view and then price the product accordingly.
She will use a series of Metrics, which are measuring systems that quantify a trend, dynamic, or characteristic. Metrics are used to
explain why things happen and predict the future. They make it possible to compare efforts across regions, product lines, time and
more. Effective metrics should be determined as part of the planning process, not an afterthought.
The four major growth strategies available to marketers include market penetration, market development, diversification,
and product development.
In diversification the firm introduces a new product to a new market segment. Product development is when
the firm introduces a new product to a current market segment.
• SWOT stands for strengths, weaknesses, opportunities and threats. A SWOT analysis
occurs during the second step in the strategic planning process, the situation analysis. By
analyzing what the firm is good at (its strengths), where it could improve (its weaknesses),
where in the marketplace it might excel (its opportunities), and what is happening in the
marketplace that could harm the firm (its threats), managers can assess their firm’s
situation accurately and plan its strategy accordingly. Internal is dealt with the strengths
and weaknesses and external is the opportunities and threats.
Chapter 4 Notes:
By paying close attention to customer needs and continuously monitoring the environment in which it operates, marketers
can identify potential opportunities.
A firm's macroenvironment includes external factors, which the marketer cannot control
The mission is the center of all marketing efforts.
Competitors are an aspect of the immediate environment. Examples of macroenvironmental factors are the
economic situation, changes in laws and regulations, demographics, and culture.
Culture is the term used for a collection of shared values and beliefs.
Compared to other groups, members of the generation x generational cohort are more likely to marry and buy homes later, are
more cynical, are shopping savvy and are relatively less interested in luxury brands.
While political candidates may practice elements of marketing, some key trends facing for profit and notforprofit marketers
alike are green marketing, marketing to children, privacy concerns and the impact of a timepoor society. Stock exchanges have their own rules and regulations, but they do not regulate firms the way governments do.
Major factors that must be considered by marketers in examining the economic situation include all of the following such as
inflation rates, foreign currency fluctuations, and interest rates. Income is not because it is more appropriately considered as a
Chapter 5 Notes:
Marketing focuses on creating value for customers. The more marketers understand how consumers make decisions, the better
they can adapt their marketing strategies to meet the needs and wants of consumers.
The consumer decision process model helps marketers to assess how consumers make purchase decisions.
The consumer decision process begins when: customers recognize that they have an unsatisfied need.
A consumer will examine his or her own memory and product knowledge first. Next, the consumer will conduct an external
search to fill in personal memory gaps. Basically, internal an