MKTG 3001 exam 1 (UMN)

marketing

the activity for creating and delivering offerings that benefit the organization, its stakeholders, and society,

goal of marketing

seek to discover the needs and wants of consumers, then satisfy them

exchange

the trade of things between buyer and seller

factors of marketing

two or more parties with unsatisfied needs, desire on their part to have their needs met, a way to communicate between them, something to exchange

need

when a person feels deprived of a basic necessity

want

a need shaped by a persons knowledge, culture, and personality

marketing mix

price, place, product, promotion

price

what is exchanged for the product

product

good, service, or idea to satisfy the consumer needs

promotion

a means of communication between seller and buyer

place

a means of getting the product to a consumer

customer value proposition

a cluster of benefits that an organization promises consumers to satisfy their needs

environmental forces

the uncontrollable social, economic, technological, competitive, and regulatory forces that affect the results of a marketing decision

customer value

buyers benefit, including quality, convenience, before and after sale at a specific price

relationship marketing

linking the organization to individual customers, employees, suppliers, and other partners for their mutual, long-term benefit

marketing program

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

market segments

relatively homogenous groups of prospective buyers that have commons needs and will respond similarly to marketing action

marketing concept

the idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the goals of the organization

market orientation

focusing organizational efforts to collect and use info about customer needs to create value

societal marketing concept

the view that organizations should discover and satisfy the needs of consumers in ways that also provide for society's well being

ultimate consumers

the people who use the products and services purchased for a household

organizational buyers

manufacturers, wholesalers, retailers, and governments that buy products and services for their own use or resale

utility

the benefit or customer value received by users of the product

4 types of utility

form, place, time, posession

endowment theory

the idea that something has more value to the owner of the item than it does to someone unattached to the item

prospector theory

asks the question is winning a higher high? or is losing a lower low? answer is losing ****ing blows

organization

legal entity that consists of people who share a common mission

3 types of organizations

for-profit, non-profit, government

profit

rewards for organizations for the risk it takes in marketing its offerings

strategy

an organizations long-term course of action that delivers a unique customer experience while achieving its goals

structure of an organization

board of directors > corporate level (CEO,CFO) > strategic business unit level > functional level (finance, R&D, marketing, HR)

core values

the fundamental, passionate, and enduring principles that guide an organization, to be effective these must be communicated thoroughly

mission

statement or vision of an organizations function in society

organizational culture

set of values, ideas, beliefs , and behavioral norms that is learned and shared among members of and organization

business

the underlying industry or market sector of an organizations offerings

goals (objectives)

Statements of accomplishment of a task to be achieved by a specific time

market share

the ratio of a firms sales to the total sales of all firms in the industry

marketing plan

road map for the marketing activities of an organization for a specific future time period

marketing dashboard

visual display of essential marketing info

marketing metric

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

business portfolio analysis

technique that managers use to quantify performance measures and growth targets of their firms strategic business unit

diversification analysis

technique a firm uses to search for growth opportunities from among new and current products and markets, (market penetration, market development, product development, diversification)

strategic marketing process

an approach whereby an organization allocates its marketing mix resources to reach its target markets it has three phases

phases of the SMP (strategic marketing process)

planning, implementation, evaluation

SWOT analysis

strengths, weaknesses, opportunities, threats

market segmentation

the aggregation of potential buyers into groups that have common needs and will respond similarly to a marketing action

point of difference

the characteristics of a product that make it superior to a competitive substitute

marketing strategy

the means by which a marketing goal is to be achieved

marketing tactics

detailed day-to-day operational decisions essential to the overall success of the marketing strategy

disintermediation

when new technology comes and replaces the current offering

environmental scanning

the process of acquiring information on events outside the organization to identify and interpret potential trends

social forces

the demographic characteristics and the culture of the population

baby boomers

born from 1946-64

generation X

born from 1965-76

Generation Y (millennials)

born from 1977-1994

multicultural marketing

programs that reflect unique aspects of different races

gross income

total amount of money earned in a year

disposable income

money left after taxes used to pay for necesities

discretionary income

money left after taxes and buying necessities

marketspace

an information and communication based electronic exchange environment occupied by digitized offerings

competition

alternative firms that could provide a product to satisfy a specific markets needs

regulation

restrictions that state and federal laws place on business

consumerism

a movement started to increase the influence, power, and rights of consumers

self regulation

an alternative to government control, whereby an industry tries to police itself

ethics

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

consumer bill of rights

the right to safety, to be informed, to choose, and to be heard

economic espionage

clandestine collection of trade secrets about competitors

code of ethics

formal statement of ethical principles and rules of conduct

moral idealism

a personal moral philosophy that considers certain individuals rights or duties as universal, regardless of outcome

utalitarianism

personal moral focuses on the greatest good for the greatest number of people

social responsibility

the idea that an organization is a part of a larger society and are accountable to that society for its actions

green marketing

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

cause marketing

tying the charitable contributions of a firm directly to sales produced through the promotion of one of its products

consumer behavior

the actions a person takes in purchasing and using products and services

purchase decision process

the stages a buyer passes through in making choices about which products or services to buy

steps of purchase decision process

problem recognition, information search (internal vs external), alternative evaluation, purchase decision, post purchase behavior

cognitive dissonance

the feeling of post purchase anxiety or tension

involvement

the personal, social, and economic significance of a purchase to a customer; has three variations

variations of PDP (purchase decision process)

extended problem solving (ex. car), limited problem solving (ex. what to have for lunch), routine problem solving (ex. groceries)

perception

the process by which a person selects, organizes, and interprets info to create a meaningful picture of the world; selective exposure, selective comprehension, selective retention, subliminal perception

perceived risk

the anxiety felt when a consumer cannot anticipate possible negative outcomes of a purchase

brand loyalty

favoring one brand over another

opinion leader

individual with social influence over others

reference groups

people whom an individual looks at for self-appraisal or a source of personal standards

brand community

specialized group of consumers with a structured set of relationships involving brand, fellow customers of that brand, and the product in use

subcultures

sub groups within the larger, or national culture with unique values, ideas, and attitudes

business marketing

the marketing of products and services to firms, governments, or non-profits

North American industry classification system (NAICS)

provides common industry definitions for Canada, the US, and Mexico

Derived demand

the demand for industrial products and services is driven by the demand for consumer products and services

organizational buying behavior

the process by which organizations determine the need for products and then choose among alternative suppliers

buying center

the group of people in an organization that participates in the buying process

buy classes

three types of organizational buying situations; new buy, straight re-buy, or modified re-buy

e-marketplace

online trading community that bring together buyers and suppliers

traditional auction

occurs when a seller puts up an item for sale and buyers place competing bids

reverse auction

occurs when a buyer communicates a need for something and suppliers bid in competition with each other

protectionism

the practice of shielding one or more industries within a country's economy from foreign competition through use of tariffs and quotas

world trade organization (WTO)

sets rules governing trade between its members through a panel of trade experts

global competition

exists when firms originate, produce, and market their products and services world wide

types of global companies

international firms, multinternational firms, transnational firms

multi-domestic market strategy

a multinational firms strategy of offering as many different product variations, brand names, and ad programs as countries in which it does business