Marketing Final Rich Brown

Exchange

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

Four marketing philosophies

production orientation, sales orientation, marketing orientation, and societal marketing orientation

societal marketing orientation

focus on satisfying customer needs and wants while enhancing individual and societal well being

marketing orientation

focus on satisfying customer needs and wants

production orientation

- focus on efficiency of internal operations

sales orientation

- focus on aggressive techniques for overcoming customer resistance

Marketing concept

the idea that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives

Customer satisfaction

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

Customer value

the relationship between benefits and the sacrifice necessary to obtain those benefits

Expectations

The evaluation/feeling that a product has met or exceeded the customer's expectations.

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

Marketing mix

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

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

Strategic planning

the managerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities8

Marketing plans

a written document that acts as a guidebook of marketing activities for the marketing manager

External environments

The social, demographic, economic, technological, political and legal, and competitive variables that are outside the control of the marketing manager.

BCG Model/Matrix

A strategic framework that categorizes a firm's business units or products into four quadrants (Stars, Cash Cows, Question Marks, and Dogs) based on their market growth rate and relative market share to guide investment decisions.

Stars

have large profits, but usually need lots of cash to finance rapid growth

Cash Cows

low-growth market, but product has a dominant market share

Question Marks/ Problem child

low market share in a high-growth industry

Dogs

most eventually leave the marketplace

SWOT analysis

A decision-making technique that identifies an organization's internal Strengths and Weaknesses, and external Opportunities and Threats.

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

Inflation

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

Depression

A prolonged period of long-term economic downturn characterized by extremely high unemployment, low output and investment, and deflation, which is more severe and longer-lasting than a recession.

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

Business ethics

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

Ethical development and theories

Ethical theories provide frameworks for moral decision-making. Key theories include Utilitarianism (greatest good for the greatest number) and Deontology (adherence to moral rules/duties).

Corporate social responsibility

a business's concern for society's welfare

Quota

a statement of the salesperson's sales goals, usually based on sales volume

Boycott

the exclusion of all products from certain countries or companies

Tariff

a tax levied on the goods entering a country

Exchange control

Government-imposed limitations on the purchase and/or sale of currencies to stabilize the economy by controlling the in-flows and out-flows of currency.

Multinational firms

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

Global marketing standardization

production of uniform products that can be sold the same way all over the world

Exporting

selling domestically produced products to buyers in other countries

Joint ventures

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

Direct investment

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

Contract manufacturing

private-label manufacturing by a foreign company

Licensing

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

Countertrade

a form of trade in which all or part of the payment for goods or services is in the form of other goods or services

Consumer decision making process

a five-step process used by consumers when buying goods or services

Needs and wants

needs - result of an imbalance between actual and desired states; wants - recognition of an unfulfilled need and a product that will satisfy it

Cognitive dissonance

inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions

Evoked set

a group of brands resulting from an information search from which a buyer can choose

Internal stimulus

the process of recalling information stored in the memory

External stimulus

The spectrum of consumer problem-solving, typically categorized as Routine Response Behavior, Limited Decision Making, and Extensive Decision Making.

Involvement

the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior

Culture

the set of values, norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts, or products, of that behavior as they are transmitted from one generation to the next

Subculture

a homogeneous group of people who share elements of the overall culture as well as unique elements of their own group

Social class

a group of people in a society who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioral norms

Family life cycle

a series of stages determined by a combination of age, marital status, and the presence or absence of children

Personality

a way of organizing and grouping the consistencies of an individual's reactions to situations

Self-concept

how consumers perceive themselves in terms of attitudes, perceptions, beliefs, and self-evaluations

Perception

the process by which people select, organize, and interpret stimuli into a meaningful and coherent picture

Motivation

a driving force that causes a person to take action to satisfy specific needs

Opinion leaders

an individual who influences the opinions of others

Types of reference groups

direct reference group, primary reference group, secondary reference group, indirect reference group, aspirational reference group, and non-aspirational reference group

aspirational reference group

- group that someone would like to join;

direct reference group

- face-to-face membership

primary reference group

- small informal group;

secondary reference group

- large formal group;

indirect reference group

- nonmembership;

Business vs. consumer products

Consumer Products: Purchased for personal use; Business Products: Purchased for use in producing other goods/services or to facilitate operations

Business vs. consumer markets

Consumer Market (B2C): Many customers, focus on advertising/emotion; Business Market (B2B): Few customers, focus on personal selling/rational buying, derived demand.

Types of business products

Major Equipment, Accessory Equipment, Raw Materials, Component Parts, Processed Materials, Supplies, and Business Services.

NAICS

a detailed numbering system developed by the United States, Canada, and Mexico to classify North American business establishments by their main production processes

Derived demand

the demand for business products

Joint demand

the demand for two or more items used together in a final product

Fluctuating demand

phenomenon in which a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product

Elastic and inelastic demand

elastic demand - a situation in which consumer demand is sensitive to changes in price; inelastic demand - a situation in which an increase or a decrease in price will not significantly affect demand for the product

Buying centers

all the people in an organization who become involved in the purchase decision

Relationship marketing

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

Market

people or organizations with needs or wants and the ability and willingness to buy

Market segmentation

the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups

Segmentation bases

characteristics of individuals, groups, or organizations

Demographics

the study of people's vital statistics, such as age, race and ethnicity, and location

Psychographics

segmenting markets on the basis of personality, motives, lifestyles, and geodemographics

Targeting strategies

undifferentiated targeting strategy, concentrated targeting strategy, and multisegment targeting strategy

multisegmented targeting strategy

- a strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each

undifferentiated targeting strategy

- a marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix;

Undifferentiated targeting

a marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix

Concentrated targeting

a strategy used to select one segment of a market for targeting marketing efforts

Niche targeting

one segment of a market

Roles of research

descriptive - gathering and presenting factual statements; diagnostic - explaining data; predictive - address "what if" questions

Managerial decision problem

a broad-based problem that uses marketing research in order for managers to take proper actions

Marketing research problem

determining what information is needed and how that information can be obtained efficiently and effectively

Research process

step 1: identify and formulate the problem/opportunity; step 2: plan the research design and gather secondary data; step 3: specify the sampling procedures; step 4: collect primary data; step 5: analyze the data; step 6: prepare and present the report; step 7: follow up

Survey research

the most popular technique for gathering primary data, in which a researcher interacts with people to obtain facts, opinions, and attitudes

Observation research

a research method that relies on four types of observation: people watching people, people watching an activity, machines watching people, and machines watching an activity

Experimental research

A research method used to test a cause-and-effect relationship by manipulating an independent variable(s) and observing the results on the dependent variable.

Primary and secondary data

primary data - information that is collected for the first time; used for solving the particular problem under investigation; secondary data - data previously collected for any purpose other than the one at hand

Probability sample

a sample in which every element in the population has a known statistical likelihood of being selected

Non-probability sample

any sample in which little or no attempt is made to get a representative cross section of the population

Random sample

a sample arranged in such a way that every element of the population has an equal chance of being selected as part of the sample

Convenience sample

a form of nonprobability sample using respondents who are convenient or readily accessible to the researcher—for example, employees, friends, or relatives

Product

everything, both favorable and unfavorable, that a person receives in an exchange

Types of products

convenience product, shopping product, specialty product, and unsought product

unsought product

- a product unknown to the potential buyer or a known product that the buyer does not actively seek