Lecture Notes Flashcards

Flashcards of key vocabulary terms and definitions from the lecture notes.

Marketing

Creating mutually beneficial exchanges between buyers and sellers.

Traditional Marketing Mix (4 P's)

Product, Place, Price, and Promotion - the traditional tools marketers use to connect with customers.

Extended Marketing Mix (3 Additional P's)

People, Physical Evidence, and Process - additions to the traditional marketing mix in response to the rise of service-based economies.

One-on-One Transactions

Craftsmen and farmers sold products locally, face-to-face due to limited travel and transportation options.

Selling Era

Companies pushed products through door-to-door sales and sometimes questionable advertising to overcome increased supply once mass production became popular.

Marketing Era

Businesses prioritize understanding customer needs and preferences to create and deliver desired products effectively.

One-to-One Marketing

Companies concentrate on offering tailored experiences and personalized products through technologies like mass customization.

Ethical Marketing Practices

Maintaining profitability, adhering to laws, and acting ethically, which involves full price disclosure and honest product representation.

Triple Bottom Line

Sustainability balances three things: profit, planet, and people

Form Utility

When a company creates value by putting all pieces of a product together in a finished product.

Time Utility

When a company makes their products available at a convenient time.

Place Utility

When a company makes their product available in a convenient location.

Ownership Utility

Making it easy for the buyer to exchange and engage in that exchange.

Porter’s Value Chain

Help a company identify where they’re creating value for the customer.

Inbound Logistics

How companies add value through sourcing raw materials.

Operations in Porter's Value Chain

How we add value through our production.

Outbound Logistics

How we're pushing out those finished products to the market.

Marketing and Sales

How we communicate that value proposition.

Service

Those extra things that we do with you know, to support customers both during and after the sale.

Human Resources Management

Bringing in the right people, training them, and retaining them.

Big M

Strategic marketing and organization wide commitment to marketing.

Little m

Tactical marketing. The specific actions that will take to support the strategies.

Marketing strategies

Expanding distribution into a new area, or it might be developing new products, or it might be launching a promotional campaign.

Levels of planning in an organization

Three primary levels are the strategic level, and the plans developed at this level are done by people at the very top of the organization, the business level planning, and then from their, we move to the functional level.

BCG Matrix

Tool for deciding how to distribute funds based on market share and market growth.

Market share

How much of the market do we currently hold.

Market growth

How fast is the industry growing.

Question marks

Areas where you're in a fast growing industry, but you're one of the small players.

Dogs

Those parts of our business that are, low market share and low growth.

Growth

Adding new products, add new services, and so forth.

Stability

We're happy with where we're at.

Retrenchment

When we are reallocating funding. So we're taking money from low performing parts of our business and moving those to the higher performing parts of our business.

Generic business strategies

A company is deciding, you know, do they want to have a general strategy aimed at growth, stability, or retrenchment?

Competitive strategies

We need to figure out what our competitive advantage is, and then we need to figure out what our competitive scope is.

Competitive advantage

The thing that we do best, is is it based on being able to produce at a lower cost, or is it that we're really good at differentiating or making things that are different or, better maybe than competing products or competitors.

Competitive scope

How big our target market is.

Cost leadership

Company that has the lowest cost of the industry, but they still have a broad target market.

Differentiation

Making products that are unique and appealing to a broad base.

Focus Differentiation

Small market, but you're specializing or doing something different.

Prospectors

Those who are the innovators. They're the first movers and they're looking for new opportunities.

Analyzers

They're the ones that are paying attention to what the prospectors are doing, and they're doing their due diligence because if they see something that's really taking hold, like a new product, they can replicate it and do something similar.

Defenders

Happy with their place in the market. They're not looking to innovate, and they just wanna protect what they have.

Reactors

Reacting to changes in the environment versus being proactive.

Marketing Plan

Tool that we use to, kind of analyze where we're at right now, anticipate or kind of identify what our objectives are, and then identify the strategies that we need to achieve those objectives.

Situation analysis

Analyzing our current situation.

Contingency planning

Considering various “what if” scenarios.

Macro level of external environment

Changes in laws, maybe changes in administrations, maybe changes in ethical trends.

Porter’s five forces model

Tool to analyze our competitive environment.

Internal environment

Structure and systems, kind of how we're organized, looking at our culture, like what are our values.

SWOT Analysis

Summarizes those key aspects.

Global Experience Learning Curve

No foreign marketing, foreign marketing, international marketing, and global.

No foreign marketing

Not targeting foreign markets and no formal international strategy.

Foreign marketing

Have a foreign/international strategy.

International marketing

Production occurs in the foreign market.

Global marketing

Philosophical - view the world as a single market with many different segments.

Areas to research when analyzing global markets

Economic environment, cultural trends, societal trends, business environment, the legal political and legal landscape, and specific market conditions.

Emerging markets

Countries that are tradition transitioning from low income, less developed economies towards more modern, industrial economies with a higher standard of living.

Multinational regional market zones

NAFTA, Merk Merkoser, the ACN, and then the European Union - groupings of countries that have decided to work together for mutual benefit.

NAFTA

USMCA stands for United States, Mexico, Canada.

Franchising internationally

A quick access to foreign markets with little investment, because the franchisee is actually the one investing.

Exporting

The most common way that companies do business internationally, minimal investment, little risk.

Contractual agreements

Agreements are the next level. Think legal agreement, you know, some kind of binding contract.

Licensing

When you license your assets, so your patent or your trademark to another company in that other country that produces under your name.

Strategic alliances

Partnerships between two or more companies that are headquartered in different countries. Trying to do it to take advantage of the strengths of each.

Joint venture

When two companies create a third separate legal company that, you know, each of those companies has ownership in.

Direct foreign investment

Where you are investing, you're setting up your own operations or your manufacturing in that foreign market.

Organizational structure decisions

Decide how you want to organize for foreign marketing.

Country of origin effect

Seeing something is made in a foreign country, depending on where it's made, you might have a positive or negative perception of that.

Direct product extension

Take your product that you're selling in your home market and you're not making any changes, and you're directly extending it to that foreign market.

Product adaptation

Adapting your product, so you're altering it to fit the local needs and legal requirements in that foreign location.

Product invention

Create a new product specifically for that international market.

Channel decisions

Distributing in a foreign market, you're gonna partner likely with distributors, wholesalers, retailers.

Marketing communications decisions

Decide how you want to advertise.

One world price

Sell our product for the same price everywhere.

Local market conditions price sets

Price based upon what works in that local market.

Cost base price

Figure out how much it costs to sell products there, and then they add that markup on top of that.

Price escalation

Price goes up as you do business internationally because it costs more to get products to those locations, like physical transportation, maybe tariffs, and so forth.

Dumping

Company charges less than costs for their product, or less than the product's price in the home market in the foreign market.

Gray Markets

Product diversion and when you're working with a distributor, and that distributor, you sell to them, and then they divert products from a low price to a high price market because they wanna make more money, and they don't have the authorization to do so.