Maketing Exam 1

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

people giving up something in order to receive something else they’d rather have

4 Marketing Philosophies (that compete for influence)

• Production orientation (looking for the lowest cost)

• Sales Orientation (Insurance, Furniture, Auto-shops, Car dealerships (ppl will buy more things if you convince them)

• Market Orientation (Most authentic, best for starting businesses, Give the customer what they want: Chick-fil-A, Car manufacturers)

• Societal Marketing Orientation (looking at how the product can benefit society)

Relationship Marketing

A strategy that focuses on keeping and improving relationships with current customers

Customer Relationship Management (CRM)

A company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on a highly defined and precise customer groups

4 P’s of Marketing (Marketing Mix):

• Product decision

• Place (or distribution) decisions

• Promotion decisions

• Pricing decisions

BCG

Boston Consulting Group (Model) (Portfolio matrix)

Portfolio Matrix

a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate

Star

A business unit that is a fast-growing market leader

Cash Cow

A business unit that generates more cash than it needs to maintain its market share

Problem Child (Question Mark)

A business unit that shows rapid growth but poor profit margins

Dog

A business unit that has low growth potential and a small market share

Social Control

Any means used to maintain behavioral norms and regulate conflict

Behavioral Norms

Standards of proper or acceptable behavior; several modes of social control are important to marketing

Important Social Control Modes

1) Ethics- the moral principles or values that generally govern the conduct of an individual or a group

2) Laws

3) Formal + Informal Groups

4) Self-Regulation

5) The Media

6) An Active Civil Society

Deontological Theory

Ethical theory stating that people should adhere to their obligations and duties when analyzing an ethical dilemma

Utilitarian Ethical Theory

Ethical theory that’s founded on the ability to predict the consequences of an action

Casuist Ethical Theory

Ethical theory that compares a current dilemma with examples of similar ethical dilemmas and their outcomes

Moral Relativism

A theory of time-and-place ethics; that is the belief that ethical truths depend on the individuals and groups holding them

Virtue

A character trait valued as being good

Morals

the rules people develop as a result of cultural values and norms

Code of Ethics

A guideline to help marketing managers and other employees make better decisions

Corporate Social Responsibility (CSR)

A business’s concern for society’s welfare

Stakeholder Theory

Ethical theory stating that social responsibility is paying attention to the interest of every affected stakeholder in every aspect of a firm’s operation

Pyramid of CSR

A model that suggests corporate social responsibility is composed of economic, legal, ethical, and philanthropic responsibilities and that a firm’s economic performance supports the entire structure

Unethical Illegal Actions

Murder

Ethical Illegal

Speeding to get a friend to the hospital

Unethical Legal

Lying on Taxes (Loophole), Abortion

Ethical Legal

Working and getting paid

Green Marketing

The development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment

Greenwashing

Adding a minimal number of green product attributes to promote a product as green

Cause-Related Marketing

the cooperative marketing efforts between a for-profit firm and a non-profit organization

Target Market

A group of ppl or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges

Environmental Scanning

The continual collection and evaluation of environmental information to identify market opportunities and threats

Companies Collect and Analyze info about:

• Population shifts

• Number of people in different age or income categories

• What trends are occurring in their industries

• Current customers and the desires of potential customers

• Who competitors are and what activities those competitors are engaged in

Demography

the study of people’s vital statistics, such as age, race, gender, and location

Pop Culture

The products and forms of expression and identity that are frequently encountered or widely accepted, commonly liked, or approved, and characteristic of a particular society at a given time

DEI definition and importance

• Diverse, Equity, and Inclusion

• Major external environmental force that has come to the forefront in recent years

Diversity

refers to people’s race, religion, gender, ethnicity, nationality, socioeconomic status, age, and abilities

Equity

Fairness in procedures, processes, and distribution of resources

3 Economic Areas of Greatest Concern to Most Marketers are:

• Consumers’ Incomes

• Inflation

• Recession

Purchasing Power

A comparison of income versus the relative cost of a standard set of goods and services in different geographic areas

Inflation

decrease in the value of money

Recession

period of economic activity characterized by negative growth

Technological Success

based on innovation, and innovation requires imagination and risk-taking (disruptive technology)

Environmentalism

A concern about, and action aimed at, protecting environment

Things that effect marketing and its environment

• Social

• DEI

• Economic

• Tech + Innovation

• Political and legal

• Competitive

• Environmentalism

Global Marketing

Marketing that targets markets on a worldwide scale

Global Vision

Recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets

Absolute Advantage

When a country can produce a product or service at a lower cost than any other country or when it’s the only country that can provide the product or service

Principle of Comparative Advantages

Each country should specialize in the products or services that it can produce most readily and cheaply and trade those products or services for goods and services that foreign countries can produce most readily and cheaply

Gross Domestic Product (GDP)

the total market value of all final goods and services produced in a country for a given time period

Outsourcing

sending U.S. jobs abroad

Insharing

Returning production jobs to the U.S.

Multinational Corporation

A company that is heavily engaged in international trade, beyond exporting and importing

Capital Intensive

Using more capital than labor in the production process

Key Factors to Consider in the Global Market/Firm

• Culture (Language,food)

• Economic Development (housing?)

• The global economy

• Political Structure and actions (crime)

• Demographic Makeup (Transportation)

• Natural Resources

United States - Mexico - Canada Agreement (USMCA)

Free trade agreement between the U.S., Mexico, and Canada which replaces the North American free trade Agreement (NAFTA)

World Trade Organization (WTO)

A trade organization w/ 164 nations that replaced the General Agreement on Tariffs and Trade (GAFT)

World Bank

An international back that offers low-interest loans, advice, add info to developing nations

Methods to Enter the Global Market from least to most risky:

• Exporting

• Licensing

• Contract Manufacturing

• Joint venture

• Foreign Direct Investment (FDI)

Exporting

selling domestically produced products to. buyers in other countries

Licensing

The legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge

Contract Manufacturing

Private-Label manufacturing by a foreign company

Joint Venture

When a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity

Foreign Direct Investment (FDI)

A business investment in a foreign country, either by establishing business operations or by acquiring business assets in that country

SBU

Strategic Business Unit

Stakeholders, who are they?

• Any person, group, or organization that has a vested interest in a company and can affect or be affected by its operations, performance, and success

• Ex: employees, customers, investors or shareholders, suppliers, and the local community

SWOT Analysis

• Strengths (Interval)

• Weaknesses (Internal)

• Opportunities (External)

• Threats (External)