marketing exam 1

value

benefits received by a consumer from a product relative to total cost

exchange

one party gives up something in return for something else

marketing concept

the idea that long-term success must include a company-wide effort to satisfy customers’ wants and needs

need vs wants

marketers provide products that fulfil customers’ wants, which then satisfies their underlying needs

evolution of marketing

production era: focus on making products

sales era: aggressive promotions

marketing concept: customer orientation

4 P’s

Product

Price

Promotion

Place

market strategy

set objectives, define target market, outline positioning & marketing mix strategies

strategic planning

top level management

for entire organization

mission statement

describes a firms purpose

parts of a marketing plan

executive summary: summarizes marketing plan’s main points

situation analysis: analyzes environment

marketing strategy

financials

controls

SWOT analysis

Strengths - advantages, capabilities

Weaknesses - competitive strength

Opportunities - development

Threats

BCG matrix

categorizes a company's products or services into four quadrants based on their market share and market growth rate: stars, cash cows, question marks, and dogs; helps businesses analyze their product portfolio, allocate resources effectively, and make strategic decisions about which products to invest in, develop, or discontinue

environmental scanning

laws designed to protect the natural environment against undue harm by individuals and organizations

global marketing

marketing strategy that consciously addresses customers, markets, and competition throughout the world

culture

the broad set of knowledge, beliefs, laws, morals, customs, and any other capabilities or habits acquired by humans as members of society

consumer ethnocentrism

the belief by consumers that it is wrong to purchase foreign products because it harms their country's economy

important factors to consider

consumer behavior

study of individuals / groups and the processes they use in consuming / disposing

consumer buying decision making process

problem recognition - perceiving a need

info search - seeking value

alternative solution - assess value

purchase decision - buying value

post-purchase behavior - consuming / using value

cognitive dissonance

the psychological discomfort experienced when holding two or more contradictory beliefs, values, or attitudes, or when one's behavior conflicts with their beliefs (the regret after buying something)

subcultures

specialized, nongeographic community- based group organization

membership groups

an individual's formal or informal affiliation and identification with a collection of people, a social group, or an organization

involvement

extended, limited, and routine problem solving

direct investment : entry mode

gives the investor a significant degree of influence over the management of an enterprise

joint venture : entry mode

arrangement in which a domestic firm partners with a foreign company to create a new entity, this allowing the domestic firm to enter a foreign company’s market

franchising : entry mode

contractual agreement in which the franchisor provides a franchisee the right to use its name and marketing and operational support in exchange for a fee and, typically, share of profits

exporting : entry mode

selling domestically produced products to foreign markets

political : environmental scanning

influences political stability

economic : environmental scanning

influences GDP, income distribution, consumer confidence, and purchasing power

social : environmental scanning

influences values and social norms

technological : environmental scanning

influences how consumers satisfy needs and wants

legal : environmental scanning

influences:

national commerce laws

international, national, & regional regulations

and regional agreements (NAFTA)

demographics : environmental scanning

age, gender, education, ethnicity

sociocultural environment : environmental scanning

values, social norms