Intro to Marketing (Exam 1)

Baby boomers

• 1946-1964, 10K retiring every 24 hrs, all will be 65+ by 2030, wealthiest generation accounting for 50% of all consumer spending

Gen X

• 1965-1980, BABY BUST, self-reliant, support diversity, better educated than previous generations

Gen Y (millennials)

1983-1996, ECHO BOOM, strongwilled, passionate, optimistic, interested in distinctive, memorable, & personal experiences

• balancing profits & purpose- millennial style

• Expect companies to embrace social change, corporate social responsibility, and environmental stewardship.

Gen Z

1997-2010, broadest diversity, independent

Population Shifts

• Shift to southern & western states 

• Growing- NV, ID, UT, AZ, FL, WA

• Declining - Illinois

• Largest- 7 States that border Mexico

• Biggest gain- TX

Macroeconomics

 performance of the economy (ex: GDP, inflation, deflation)

Inflation

product costs + prices increase

Recession

periods of declining economic activity

Pure competition

• many sellers with similar products

Monopolistic competition

• many sellers w/ substitutable products in a price range

Oligopoly

• few sellers control majority of sales

Pure monopoly

•  only 1 seller

Price fixing

ILLEGAL- set product prices at a specific, fixed level rather than letting market forces determine them

price discounting

Offering a temporary or conditional reduction from the original price (such as volume discounts or seasonal sales) to incentivize buyers. LEGAL

Better Business Bureau (BBB)

voluntary alliance of companies that maintain fair practices

3 LEVELS OF STRATEGY IN ORGANIZATIONS

• Functional Level

• Department

• Cross-functional teams

→ all overseen by BOARD OF DIRECTORS

Functional Level

 Groups of specialists create value

Department

Functions such as finance and marketing

Cross-functional teams

Different departments contribute to a performance goal

Associative group (reference group)

A group to which a person currently belongs and identifies with

Aspiration group (reference group)

A group to which a person wishes to belong or wants to be identified with

Dissociative group (reference group)

A group with which a person wishes to maintain distance or avoid being associated with

Head to head positioning

Competing directly with rivals on similar product attributes in the same target market

Differentiation positioning

Seeking a less-competitive market niche by highlighting unique attributes that distinguish your product from competitors

Writing a positioning statement

• derived from company’s customer value proposition

STRATEGY & ORGANIZATIONAL STRUCTURE of ORGS

• Can’t be “all things to all ppl”

• Corporate level

• Chief marketing officer

• Strategic business unit

Can’t be “all things to all ppl”

Companies must focus their limited resources on specific target markets rather than trying to satisfy every single consumer

Corporate level

highest organizational level where top management (CEOs, Executives) directs overall strategy for the entire company

Chief marketing officer

top marketing executive responsible for setting marketing vision and driving revenue growth across the company

Strategic business unit

subsidiary, division, or unit of an organization that markets a set of clearly related offerings to a defined target market

Market penetration

Increase sales of current product in current markets

Market development

Sell current products to new markets

Product development

Sell new products to current markets

Diversification

Develop new products to sell in new markets

Societal marketing concept

view that organizations should satisfy the needs of consumers in a way that provides for society’s well-being

Social responsibility

Organizations are accountable to a larger society