marketing exam 1

marketing

the activity, set of instructions, and process for creating, communicating, delivering, and exchanging offerings that have value for customers, clients partners and societies at large

exchange

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

production orientation

a philosophy that focuses on the internal capabilities pf the firm rather than on the desires and need of the marketplace

sales orientation

the belief that people will buy more goods or services if aggressive sales techniques are used and that high sales result in high profits

marketing concept

the idea that the social and economic justification for an organizations existence is the satisfaction of the customers wants and needs while meeting organizational objectives

market oriented

a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customers decision to purchase a product; it is synonymous with the marketing concept

societal marketing orientation

the idea that an organization exists not only to satisfy customers wants and needs and to meet organizational objectives but also to preserve or enhance individuals and societies long term best interests

customer value

the relationships between benefits and sacrifice necessary to obtain those benefits

customers evaluation

customers evaluation of a good or service in terms of whether it has met their needs and expectations

relationship marketing

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

empowerment

delegation of authority to solve customers problems quickly - usually by the first person the customer notifies regarding a problem

teamwork

collaborative efforts of people to accomplish common objectives

customer relationship management

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

big data

the discovery, interpretation, and communication of meaningful patters in data

on demand marketing

delivering relevant experiences, integrated across both physical and virtual environments, throughout the consumer’s decision and buying process

societal marketing orientation

– the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals’ and society’s long-term best interests

customer satisfaction

customers’ evaluation of a good or service in terms of whether it has met their needs and expectations

customer-oriented personnel

For an organization to be focused on building relationships with customers, employees’ attitudes and actions must be customer oriented.- made Disney successful

companies that adopt CRM systems are almost always what?

market oriented - TikTok example

strategic planning

– the managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities

goal of strategic planning

long run profitability and growth

strategic business unit (SBU)

•a subgroup of a single business or collection of related businesses within the larger organization - Coke and Powerade example

•When properly created, an S B U has the following characteristics

•A distinct mission and a specific target market

•Control over its resources

•Its own competitors

•A single business or a collection of related businesses

•Plans independent of the other S B U s in the total organization

market development

a marketing strategy that entails attracting new customers to existing products

product development

a marketing strategy that entails the creation of new products for present markets

diversification

a strategy of increasing sales by introducing new products into new markets

portfolio matrix

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

star

in the portfolio matrix, a business unit that is a fas growing market leader

cash cow

in the portfolio matrix, a business unit that generates more cash than it needs to maintain its market share

problem child

in the portfolio matrix, a business unit that shows rapid growth but poor profit margins

dog

in the portfolio matrix, a business unit that has low growth potential and a small market share

planning

the process of anticipating future events and determining strategies to achieve organizational objectives in the future

innovation matrix

enables a company to see exactly what types of assets need to be developed and what types of markets are possible to grow into (or create) based on the company’s core capabilities.

market planning

•Process devoted to **achieving** marketing-related goals

marketing plan

•Written plan that **outlines** strategic marketing goals

marketing planning objectives

•REALISTIC, MEASURABLE, TIME SPECIFIC, AND COMPARED TO A BENCHMARK – if you don’t do these 5 things you will fail

mission statement

a statement of the firm’s business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions.

market myopia

defining a business in terms of goods and services rather than in terms of the benefits customers seek

SWOT analysis

identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T)

marketing objective

a statement of what is to be accomplished through marketing activities

marketing objective

the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets

environmental scanning

collection and interpretation of information about forces, events and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan

marketing mix

a unique blend of product, place (distribution), promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market

competitive advantage

a set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition

cost competitive advantage

being the low cost competitor in an industry while maintaining satisfactory profit margins

experience curves

curves that show costs declining at a predictable rate as experience with a product increase

product / service differentiation competitive advantage

the provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition

niche competitive advantage

the advantage achieved when a firm seeks to target and effectively serve a small segment of the market

sustainable competitive advantage

an advantage that cannot be copied by the competition

marketing objective

a statement of what is to be accomplished through marketing activities

marketing strategy

the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets

market opportunity analysis

description / estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in these market segments

marketing mix

unique blend of product, place, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market

implementation

process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plans objectives

evaluation

gauging the extent to which the marketing objectives have been achieved during the specified time period

control

provides the mechanisms for evaluating marketing results in light of the plans objectives and for correcting actions that do not help the organization reach this objective within budget guidelines

marketing audit

a thorough, systematicc, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization

societal control

•any means used to maintain behavioral norms and regulate conflict

behavioral norms

•– standards of proper or acceptable behavior

ethics

•the moral principles or values that generally govern the conduct of an individual or a group

•Several modes of social control are important to marketing:

•Laws

ethics

•Formal and informal groups

•Self-regulation

•The media

•An active civil society

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

federal corrupt practices act (FPCA)

a law that prohibits U.S. corporations from making illegal payments to public officials of foreign governments to obtain business rights or to enhance their business dealings in those countries

deontological theory

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

utilitarian ethical theory

ethical theory that is founded on the ability to predict the consequences of an action

casuist ethical theory

ethical theory that compares a current ethical 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

corporate social responsibility

a businesses concern for society welfare

stakeholder theory

ethical theory stating that social responsibility is paying attention to the interest of every affected stakeholder in every aspect of a firms operation

pyramid of corporate social responsibility

model that suggests corporate social responsibility is composted of economics, legal, ethical, and philanthropic responsibilities and that a firms’ economic performance supports the entire structure

sustainability

the idea that socially responsible companies will outperform their peers by focusing on the worlds social problems and viewing them as opportunities to build profits and help the world at the same time

green marking

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 in order to promote it as green

cause - related marketing

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

what does it take for a product to be labeled green

For a product to be labeled “green,” it must meet regulatory guidelines issued by the Federal Trade Commission (F T C).

target market

a group of people 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

component lifestyles

the practice of choosing goods and services that meet ones diverse needs and interests rather than conforming to a single, traditional lifestyles

demography

study of peoples vital statistics such as age, race and ethnicity, and location

generation z

people born between 1997 and 2012

millennials

people born between 1981 and 1996

generation x

people born between 1965 and 1980

baby boomers

people born between 1946 and 1964

purchasing power

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

inflation

a measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year

recession

a period of economic activity characterized by negative growth, which reduces demand for goods and services

basic research

pure research that aims to confirm an existing theory or to learn more about a concept or phenomenon

applied research

research that attempts to develop new or improved products

consumer product safety commission (CPSC)

a federal agency established to protect the health and safety of consumers in and around their homes

food and drug administration

a federal agency charged with enforcing regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products

federal trade commission (FTC)

federal agency empowered to prevent persons or corporations from using unfair methods of competitions in commerce

global marketing

– marketing that targets markets throughout the world

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

why nations trade

Free trade creates opportunities for mutual gain.

absolute advantage

– when a country can produce a product or service at a lower cost than any other country or when it is the only country that can provide the product or service

principle of comparative advantage

– 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

multinational corporation

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

Multinationals often develop their global business in **four stages**

1\.Operate in one country and sell into others

2\.Set up foreign subsidiaries to handle sales in other countries

3\.Operate an entire line of business in another country

4\.Conduct global business via the Internet

free trade

policy of permitting individuals and businesses in a country to buy and sell in other countries without restrictions