MKT 304 CSUN violet christopher midterm

Marketing

the activity, set of instructions, and processes for creating,communicating, delivering, and exchanging offerings that have value forcustomers, clients, partners, and society at large.

Exchange

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

WHAT IS NEEDED FOR MARKETING TO OCCUR

1. Two+ parties with unsatisfied needs.

2. A desire and ability to be satisfied.

3. A way for the parties to communicate.

4. Something to exchange

Consumer Needs

necessities

Consumer Wants

are shaped by culture

The Four Ps

• Product - good, service, or idea

.• Price - something to exchange.

• Promotion - communication between buyer and seller.

• Place - gets product to consumer

Market

consists of people with both the desire and the ability to buy aspecific offering

Product

good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value

promotion

communication between buyer and seller.

place

gets product to consumer

environmental forces

the uncontrollable forces that affect marketing decisions and consist of social, economic, technological, competitive, and regulatory forces.

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 value strategies:

Best price

Best service

Best product:

Relationship marketing

links the organization to its individual, employees, suppliers, and other partners for their long-term benefit

Marketing program

a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers

market segments

the relatively homogeneous groups of prospective buyers that (1) have common needs and (2) will respond similarly to a marketing action

Marketing concept

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

market orientation

when an organization focuses its efforts on (1)continuously collecting information about customers' needs, (2) sharing this information across departments, and (3) using it to create customer value.

CRM (customer relationship management)

the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace and become advocates after their purchase.38

Customer experience

the internal response that customers have toall aspects of an organization and its offering

Ethics

the moral principles and values that govern the actions and decisions of an individual or group

Social responsibility:

Organizations are accountable to a larger society

ultimate consumer

consist of the people who use the products and services purchased for a household. Also called consumers, buyers, or customers

Organizational buyers

manufacturers, wholesalers, retailers, service companies, nonprofits, and government agencies that buy products and services for their own use or for resale

Societal Marketing Concept

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

utility

consists of the benefits or customer value received by users of the product

Target Market

consists of one or more specific groups of potential consumers toward which an organization directs its marketing program

Marketing Mix

consists of the controllable factors—product, price, promotion, and place—that can be used by the marketing manager to solve a marketing problem

Profit

the money left after a for-profit organization subtracts its total expenses from its total revenues and is the reward for the risk it undertakes in marketing its offerings

Strategy

an organization's long-term course of action designed to deliver a unique customer experience while achieving its goals

Core Values

the fundamental, passionate, and enduring principles of an organization that guide its conduct over time

Mission

statement of the organization's function in society that often identifies its customers, markets, products, and technologies. The term is often used interchangeably with vision

Organizational Culture

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

Business

describes the clear, broad, underlying industry, or market sector of an organization's offering

Goals or Objectives

the statements of an accomplishment of a task to be achieved, often by a specific time

Market Share

the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself

Marketing Plan

road map for the marketing actions of an organization for a specified future time period, such as one year or five years

Marketing Dashboard

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

Marketing Metric

measure of the quantitative value or trend of a marketing action or result

Business Portfolio Analysis

a technique that managers use to quantify performance measures and growth targets to analyze their firms' strategic business units (SBUs) as though they were a collection of separate investments

Diversification Analysis

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

Strategic Marketing Process

an approach whereby an organization allocates its marketing mix resources to reach its target markets

Situation Analysis

involves taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization's marketing plans and the external forces and trends affecting it.

SWOT Analysis

acronym describing an organization’s appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats

Market Segmentation

involves aggregating prospective buyers into groups, or segments, that

(1) have common needs and

(2) will respond similarly to a marketing action.

Customer Value Proposition

the cluster of benefits that an organization promises customers to satisfy their needs.

Points of Difference

those characteristics of a product that make it superior to competitive substitutes

Marketing Strategy

the means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it

Marketing Tactics

the detailed, day-to-day operational marketing actions for each element of the marketing mix that contributes to the overall success of marketing strategies

Functional level

Groups of specialists create value

Department

Functions such as finance and marketing

Cross-functional teams

Different departments contribute to a performance goal

organizational foundation

(WHY)

core values

mission (vision)

organizational vulture

organizational direction

(What)

business

goals (objectives):

long term, short term

organizational strategies

(how)

-by level (corporate, SBU, functional)

-by product (product, service, idea)

Dollar Sales

= Average Price × Quantity Sold

Dollar Market Share

= Sales ($)÷ Total Industry Sales ($).

Question marks

Low share of high-growth market

Stars

High share of high-growth markets

Cash cows:

Generate large amounts of cash

Dogs

Low share of slow-growth markets

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.

Gantt chart

Graph of a program schedule

the planning phase of the STRATEGIC MARKETING PROCESS

Step 1: Situation (SWOT) analysis

Planning Phase Step 2: Develop a market-product focus, customer value proposition, and goals

Planning Phase Step 3: Design a marketing program

Environmental Scanning

the process of continually acquiringinformation on events occurring outside the organization to identify andinterpret potential trends.

Social Forces

the demographic characteristics of the population and its culture.

Demographics

describe a population according to selected characteristics such as age, gender, ethnicity, income, and occupation

Baby Boomers

the generation of 76 million children born between 1946 and 1964

Generation X

includes the 55 million people born between 1965 and1980. Also called the baby bust

Generation Y

includes the 62 million Americans born between 1981and 1996. Also called the echo-boom

Generation Z

the post-millennial generation, which includes consumers born between 1997 and 2010

Multicultural marketing

consists of combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences ,and lifestyles of different races

Culture

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

Economy

pertains to the income, expenditures, and resources that affect the cost of running a business and household

Disposable Income

the money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation.

Gross Income

the total amount of money made in one year by a person, household, or family unit. Also known as money income at the Census Bureau

Discretionary Income

the money that remains after paying for taxes and necessities.57

Technology

consists of the inventions or innovations from applied science or engineering research

Marketspace

an information- and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digitized offerings

Electronic Commerce

any activity that uses electronic communication in the inventory, promotion, distribution, purchase, and exchange of products and services.

Internet of Things

the network of products embedded with connectivity-enabled electronics

Competition

consists of the alternative firms that could provide a product to satisfy a specific market's needs

Regulation

consists of the restrictions state and federal laws place on business with regard to the conduct of its activities

Consumerism

grassroots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing institutions 64

Self-Regulation

is an alternative to government control whereby an industry attempts to police itself.

Caveat Emptor

the legal concept of "let the buyer beware" that was pervasive in the American business culture prior to the 1960s

Consumer Bill of Rights (1962)

outline presented by President John F. Kennedy that codified the ethics of exchange between buyers and sellers, including the rights to safety, to be informed, to choose, and to be heard

Economic Espionage

the clandestine collection of trade secrets orproprietary information about a company's competitors

Code of Ethics

formal statement of ethical principles and rules ofconduct

Whistle-Blowers

employees who report unethical or illegal actions of their employers

Moral Idealism

personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome.

Utilitarianism

personal moral philosophy that focuses on the "greatest good for the greatest number" by assessing the costs and benefits of the consequences of ethical behavior

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 organizations to improve the state of people, the planet, and profit simultaneously if the yare to achieve sustainable, long-term growth

Sustainable Marketing

he effort to meet today's (global) economic, environmental, and social needs without compromising the opportunity for future generations to meet theirs

Green Marketing

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

Cause Marketing

occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products.