MGT 103 Quiz 1 (Chapters 1-5)

Marketing

the process of creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large--seeks to discover the needs of the customer and satisfy those needs

Exchange

the trade of things so that each party is better off than before

What is needed for marketing to occur?

1. Two or more parties with unsatisfied needs

2. Desire and ability to satisfy those needs

3. A way for the parties to communicate

4. Something to exchange

How are consumer needs discovered?

surveys, concept tests, and other research strategies

Needs vs. Wants

Need: life would be substantially worse without it

Want: something that may benefit you but isn't necessary

The 4 P's/Marketing Mix

Product, Price, Promotion, Place (distribution)

Environmental Forces

factors not under the control of a marketer that affects a marketing decision--i.e. social trends, laws, etc.

Customer Value

the benefits received by a targeted buyer

3 Unique Strategies of Firms

best price (Target), best product (Starbucks), best service (Nordstrom)--companies cannot be all things to all people, so these strategies help narrow their direction

Relationship Marketing

linking an organization to its customers employees, suppliers, and other partners for their mutual benefit

Marketing Program

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

Market Segments

homogenous groups of buyers that have common needs and will respond similarly to a product feature, promotion, or price--i.e. rich teenage boys

Marketing Concept

the philosophy that an organization should strive to satisfy the needs of the customer while also achieving their own goals

Customer Relationship Management (CRM)

the processes of developing a favorable relationship with customers so that they become loyal and good advocates for your company

Customer Experience

the response that customers have to all aspects of an organization

Market

people with both the desire and the ability to buy a specific offering

Target Market

one or more specific groups of potential customers that a marketing program directs its attention to

Customer Value Proposition

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

Social Marketing Concept

the belief that organizations should satisfy customers needs in a way that also benefits society

Ultimate Consumers

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

Organizational Buyers

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

Utility

the benefits or customer value received by users of the product--there are 4 Types of Utility

Form Utility

the production of the product or service

Place Utility

having the product available where the customer wants it

Time Utility

having the product available when the customer wants it

Possession Utility

having the product be easy to purchase by accepting the use of credit cards or financial arrangements

For Profit Organization

serves customers with the intent of profiting--AKA business firm--i.e. Nike

Profit

the money left after a for-profit organization subtracts its total expenses from its total revenues

Non Profit Organization

non governmental organization that serves customers but does not have profit as an organizational goal--goals may be client satisfaction or operational efficiency--i.e. Teach for America

Government Agency

a government unit that provides a specific service--i.e. census bureau

Industry

all the businesses that make one kind of product or provide one kind of service

Strategy

an organization's long term plan of action to deliver a unique customer experience and achieve their goals--ongoing process of making decisions that guide an organization

Structure of Today's Organizations

1. Corporate Level: Top management directs overall strategy--comprised of board of directors and senior management

2. Strategic Business Unit Level: Markets a set of offerings to a defined target market

3. Functional Level: A more specific unit of specialists that serve certain functions--i.e. marketing department

Core Values

the fundamental principles that guide an organization's conduct--expresses the beliefs and practices of an organization to shareholders, employees, investors, etc.

Organizational Culture

the set of values and norms of behavior that is shared among members of an organization

Mission

a statement of an organization's function in society--i.e. American Red Cross: "To prevent and alleviate human suffering in the face of emergencies by mobilizing the power of volunteers and the generosity of others"

Business

describes the clear industry or market sector of an organization's offering--i.e. "the ice cream business"

Goals/Objectives

what an organization hopes to accomplish in the short and long term--needs to be "S.M.A.R.T."--specific, measurable, attainable, relevant, and on a timeline

Types of Goals

profit, sales, market share, quality, customer satisfaction, employee welfare, social responsibility

Environmental Scan

the process of analyzing societal events to identify and interpret potential trends--types of environments to scan: sociocultural, economic, technological, political/legal, competitive

Sociocultural Environment

cultural values, ideas, and attitudes--i.e. social emphasis on healthier options, veganism, etc.

Economic Environment

evaluated through GDP, unemployment rates, price changes, and identification of the Business Cycle

Business Cycle

recession, depression, recovery, prosperity, inflation

Competitive Environment

outside products that satisfy a specific need--bargaining power of suppliers/buyers--threat of new entrants, rivalry amongst existing companies

Demographics

the characteristics of a population with respect to age, race, and gender--global demographics shows an increase in elderly people, thus encouraging marketers to shift towards retirement related services--in the US, the population is becoming more diverse

Baby Boomers

generation cohort of people born between 1946 and 1964

Generation X

generation cohort of people born between 1965 and 1978--self-reliant, supporting of ethnic diversity--better educated--pursue lifestyles of practicality and tradition

Generation Y

generation cohort of people born between 1979 and 1994--adept at creating a balance between work and life--exerts influence on music, video games, sports, computers--younger Gen Y's are called "millennials"

Generation Z

generation cohort of people born after 1995--most diverse friendly, and thorough use of electronics and online learning

Blended Family

a married couple and their children from previous marriages--1/3 families are blended

Multicultural Marketing

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

Culture

beliefs, customs, and traditions of a specific group of people

Ethics

moral principles that govern the actions of an individual or group--affected by societal norms, industry practices, and corporate culture and expectations

Laws

society' values and standards that are enforceable in court

Caveat Emptor

legal concept of "let the buyer beware"

Consumer Bill of Rights

John F. Kennedy--right to safety, information, choice, and to be heard

Social Responsibility

the obligation of a business to contribute to society-- 1. Profit responsibility

2. Stakeholder responsibility

3. Societal responsibility

Sustainable Marketing

socially and environmentally responsible marketing that meets the needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet theirs

Green Marketing

making efforts to promote and produce environmentally sensitive products--i.e. Walmart

Cause Marketing

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

Social Audit

an evaluation of an organization's objectives and performance in terms of social responsibility

5 Steps:

1. Recognition of a firm's social expectations

2. Identification of programs consistent with its mission

3. Determination of objectives

4. Specification of amount of resources allocated towards the mission

5. Evaluation of programs and assessment of future involvement