chapter 1-5 marketing

Marketing

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

Exchange

Trade of things of value between the buyer and the seller so that each is better off after the trade

Product

Bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value

Good

Physical or tangible object

Service

Intangible item

Idea

Concept or opinion

Organizational buyers

Manufacturers, wholesalers, retailers, service companies, nonprofit organizations, and government agencies that buy products and services for their own use or for resale

What are the ENVIRONMENTAL FORCES?

Social, Economic, Technological, Competitive, Regulatory

Environmental forces

The uncontrollable forces that affect a marketing decision

Need

Feeling deprived of basic a necessity such as food, clothing, or shelter

Want

Need that is shaped by a person’s knowledge, culture, and personality

Market

People with both the desire and the ability to buy a specific product

Market segments

Relatively homogeneous groups of prospective buyers that have common needs and will respond similarly to a marketing action

Target market

One or more specific groups of potential customers toward which an organization directs its marketing program

Marketing Mix (4P’s)

Product, Price, Place, Promotion

Customer value

The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price

Customer Lifetime Value

a metric that represents the total net profit a company can expect to generate from a customer throughout their entire relationship

Marketing concept

The idea that an organization should (1) strive to satisfy the needs of consumers while also (2) trying to achieve the organization's goals

types of organizations

for-profit, non-profit, government agencies

for-profit

business firm

non-profit

serves it customers as the goal

government agencies

federal, state, country or city unity that provides a specific service to its constituents

strategic business unit level

unit of an organization that markets a set of related offerings to a clearly defined target market

functional level

group of specialists that create value, most specific and focused

core values

fundamental, passionate, and enduring principles that guide its conduct over time

mission

a statement of the organizations function in society that often identifies its customers, markets, products, and technologies

organizational culture

the values, ideas, attitudes, and norms of behavior that are learned and shared among the members of an organization

marketing plan

road map for the marketing actions of an organization for a specific future time period of 1 to 5 years

business portfolio analysis

a technique that managers use to quantify performance measures and growth targets to analyze their firms strategic business unit

question marks

low share of high growth markets, require cash to maintain their markets

stars

high share of high growth markets, rapid growth

cash cows

generate large amounts of cash

dogs

may earn enough to sustain themselves but may not have a benefit for the organization

diversification analysis

technique that helps a firm search growth opportunities from among current and new markets as well as new and current products

market penetration

selling current products in current markets

market development

selling current products to new markets

product development

selling new products to current markets

diversification

selling new products to new markets

strategic marketing process

allocation of an organizations marketing mix resources to reach its target markets and achieve a competitive advantage

steps to marketing process

planning, implementation, and evaluation

steps of the planning phase

conduct swot analysis, develop a market, design a marketing plan

swot

strengths, weaknesses, opportunities and threats

marketing strategy

a marketing goal is to be achieved usually characterized by a target market

market segmentation

aggregating prospective buyers into groups or segments that have common needs and will respond to a marketing action

marketing dashboard

the visual display of the essential information related to achieving a marketing objective

demographics

describes a population including age, gender, ethnicity, income and occupation

culture

set of values, ideas, and attitudes that are learned and shared among members of the group

disposable income

money a consumer has left after paying taxes to us for necessities

discretionary income

money that remains after paying taxes and necessities

technology

inventions or innovations from applied science or engineering research

competition

additional firms that could make a profit

gross income

total amount of money made in one year by a person or household

internet of things

network of products embedded with connectivity

electronic commerce

the activities that use electronic communication in the inventory, promotion, distribution, purchase, and exchange of products and services

pure competition

many sellers with similar products

monopolistic competition

many sellers with substitutable products in a price range

oligopoly

few sellers control the majority of sales

pure monopoly

only one seller

social responsibility

idea that organizations are part of a larger society and are accountable to that society for their actions

triple bottom line

recognition of the need for the organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable and long term growth

cause marketing

occurs when the charitable contributions of a firm are tied directly

green marketing

marketing efforts to produce, promote, and reclaim environmentally sensitive products

purchase decision process

problem recognition, information search, alternative evaluation, purchase decision, post-purchase behavior

maslows hierarchy of needs

physiological needs, safety needs, social needs, personal needs, self-actualization needs

associative group

a group that a person is a member of

dissociate group

a group that a person doesn’t want to be apart of due to difference of opinion or behaviors

socail class

division in society used to group people sharing similar values, interest, and behaviors

resellers

wholesalers and retailers that buy product and resell them without any reprocessing

derived demand

demand for industrial products that is driven by or derived from the demand for consumer products

buying center

the group of peopl in an organization who particitpate in the buying process and share common goals, risks, knowledge important to a purchase decision

e-market place

online trading communities that bring together organizational buyers and suppliers to make possible the real time exchange of info, money, products, and services

traditional auctions

highest bidder wins

reverse auction

lowest seller wins

reference group

people an individual looks to as a basis for self-appraisal or a source of personal standards