Mark 3000/3001 Grantham Exam 1 - UGA

Marketing

An organizational function and a set of processes for creating, capturing, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization

Marketing Plan

A written document composed of an analysis of the current marketing situation, opportunities, and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs and projected or pro forma income statements.

Marketing Mix

Product, price, place, and promotion - the controllable set of activities that a firm uses to respond to the wants of its target markets

Product: Creating Value

Fundamental purpose of marketing is to create value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs

Goods

Items that can be physically touched

Services

Any intangible offering that involves a deed, performance, or effort that cannot be physically possessed; intangible customer benefits produced by people or machines and cannot be separated from the producer

Ideas

Intellectual concepts - thoughts, opinions, and philosophies

Product: Capturing Value

Price is everything the buyer gives up - money, time, and/or energy - in exchange for the product. Marketers must determine the price of a product carefully on the basis of the potential buyer's belief about its value. The key to determining prices is figuring out how much customers are willing to pay so that they are satisfied with the purchase and the seller achieves a reasonable profit

Place: Delivering the Value Proposition

All the activities necessary to get the product to the right customer when that customer wants it

Supply Chain Management

Set of approaches and techniques that firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores, and other firms involved in the transaction into a seamless value chain in which merchandise is produced and distributed in the right quantities, to the right locations, and at the right time, while minimizing systemwide costs and satisfying the service levels required by the customers

Promotion: Communicating the Value Proposition

Communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their opinions and elicit a response. Promotion generally can enhance a product's or service's value

Business-To-Consumer Marketing

The process in which businesses sell to consumers

Business-To-Business Marketing

The process of buying and selling goods or services to be used in the production of other goods and services for consumption by the buying organization, or for resale by wholesalers and retailers

Consumer-To-Consumer Marketing

The process in which consumers sell to other consumers

Production-Oriented Era

Around the turn of the 20th century, most firms were production oriented and believed that a good product would sell itself. Manufacturers were concerned with production innovation, not with satisfying the needs of individual consumers, and retail stores typically were considered places to hold the merchandise until a consumer wanted it

Sales-Oriented Era

1920-1950, production and distribution techniques more sophisticated and Great Depression and World War II conditioned customers to consume less or manufacture items themselves. Manufacturers had the capacity to produce more than customers really wanted or were able to buy. So, they depended on heavy doses of personal selling and advertising

Market-Oriented Era

When consumers again had choices, they were able to make purchasing decisions on the basis of factors such as quality, convenience, and price. Manufacturers and retailers thus began to focus on what consumers wanted and needed before they designed, made, or attempted to sell their products and services

Value-Based Marketing Era

21st century, to compete successfully, they would have to give their customers greater value than their competitors did

Value

Reflects the relationship of benefits to costs, or what the consumer gets for what he/she gives

Value Cocreation

Customers act as collaborators with a manufacturer or retailer to create the product or service

Relational Orientation

A method of building a relationship with customers based on the philosophy that buyers and sellers should develop a long-term relationship

Customer Relationship Management

A business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm's most valued customers

Business Ethics

Refers to a branch of ethical study that examines ethical rules and principles within a commercial context, the various moral or ethical problems that might arise in a business setting, and any special duties or obligations that apply to persons engaged in commerce

Marketing Ethics

Refers to those ethical problems that are specific to the domain of marketing.

Deceptive Advertising

A representation, omission act, or practice in an advertisement that is likely to mislead consumers action reasonably under the circumstances

Corporate Social Responsibility

Refers to the voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders

The Publicity Test

Would I want to see this action described on the front page of the local paper or in a national magazine?

The Moral Mentor Test

Would the person I admire most engage in this activity?

The Admired Observer Test

Would I want the person I admire most to see me doing this?

The Transparency Test

Could I give a clear explanation for the action I'm contemplating, including an honest and transparent account of all my motives, that would satisfy a fair and dispassionate moral judge?

The Person in the Mirror Test

Will I be able to look at myself in the mirror and respect the person I see there?

The Golden Rule Test

Would I like to be on the receiving end of this action and all its potential consequences?

Macroenvironmental Factors

Aspects of the external environment that affect a company's business, such as the culture, demographics, social trends, technological advances, economic situation, and political regulatory environment

Culture

The set of values, guiding beliefs, understandings, and ways of doing things shared by members of a society; exists on two levels: visible artifacts and underlying values

Country Culture

Entails easy-to-spot visible nuances that are particular to a country such as dress, symbols, ceremonies, language, colors, and food preferences, and subtler aspects, which are trickier to identify

Regional Culture

The influence of the area within a country in which people live

Demographics

Information about the characteristics of human populations and segments, especially those used to identify consumer markets such as by age, gender, income, and education

Generational Cohort

A group of people of the same generation -typically have similar purchase behaviors because they have shared experiences and are in the same stage of life

Gen Z

Generation cohort of people born between 2001 and 2014. Also known as "Digital Natives" because people in this group were born into a world that already was full of electronic gadgets and digital technologies, such as the Internet and social networks

Gen Y

Generational cohort of people born between 1977 and 2000; biggest cohort since the original postwar baby boom. Also called "Millennials"

Gen X

Generational cohort of people born between 1965 and 1976. First generation of latchkey kids and 50% have divorced parents

Baby Boomers

Generational cohort of people born after World War II between 1946 and 1964

Green Marketing

Involves a strategic effort by firms to supply customers with environmentally friendly merchandise

Greenwashing

Exploiting a consumer by disingenuously marketing products or services as environmentally friendly, with the goal of gaining public approval and sales

Technological Advances

Macroenvironmental factor that has greatly contributed to the improvement of the value of both products and services in the past few decades

Economic Situation

Macroecomonic factor that affects the way consumers buy merchandise and spend money, both in a marketer's home country and abroad

Inflation

Refers to the persistent increase in the prices of goods and services

Foreign Currency Fluctuations

Changes in the value of a country's currency relative to the currency of another country; can influence consumer spending

Interest Rates

Represent the cost of borrowing money

Political/Regulatory Environment

Comprises political parties, government organizations, and legislation and laws