Principles of Marketing Exam Notes Essay

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Principles of Marketing
Study Guide
Mid-term Exam Fall 2012
Chapter 1 1. What is Marketing? a. The activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. It requires thoughtful planning with an emphasis on the ethical implications of any of those decisions on society in general. 2. Marketing requires Product, Price, Place and Promotions decisions. b. The four Ps, or marketing mix, are the controllable set of activities that the firm uses to respond to the wants of its target markets.

3. What is value-based marketing? a. Value reflects the relationship of benefits to
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Entails evaluating the performance of the marketing strategy using marketing metrics and taking any necessary corrective actions (Step 5). 9. Growth Strategies h. A market penetration s growth strategy that employs the existing marketing mix and focuses the firm's efforts 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 patronize the firm more often or buy more merchandise on each visit. i. A market development growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international. International expansion generally is riskier than domestic expansion because firms must deal with differences in government regulations, cultural traditions, supply chains, and language. j. Product development growth strategy that offers a new product or service to a firm's current target market. k. A diversification growth strategy whereby a firm introduces a new product or service to a market segment that it does not currently serve. Diversification opportunities may be either related or unrelated. In a related diversification growth strategy whereby the current target market and/or marketing mix shares something in common with the new opportunity. In other words, the firm might be able to purchase from existing vendors, use the same distribution and/or management information system, or
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