Unit 1 Exam

Marketing

Organizational function and a

set of processes for creating, capturing, \n communicating, and delivering value to \n customers and for managing customer \n relationships in ways that benefit the \n organization and its stakeholders.

Customer Perceived value of a product

Difference between the prospective customer's evaluation \n of all the benefits and the cost of an offering

Needs

are things that represent a problem to be solved \n (hungry)

Want

Is a specific way to satisfy that need

Production-oriented

Manager sees everyone as basically similar and \n practices “mass marketing”

Marketing-oriented

Manager sees everyone as different and \n practices “target marketing”

Elements fr marketing

Who, What, How

Three phases of Strategic Plan

Planning, Implementing, Controlling

Internal factors

strengths or weaknesses that may be the advantages or \n disadvantages in meeting a target market.

External factors

opportunities or threats that may create value or destroy \n value.

Sustainable development

Includes land, water, air, and living organisms.

Culture

Shared meanings, beliefs, morals, values, and customs of a group of people transmitted by words, literature, and institutions

Country Culture

• Subtler aspects can be difficult to navigate

• Sometimes best answer is to establish universal appeal within specific identities of country culture.

Regional Culture

• For national and global chains, particularly important to cater to regional preferences

• McDonald’s – slightly different variations of staple menu.

Demographics

Easily understood snapshot of typical consumer in specific target market

Privacy Concerns

loss of privacy, identity theft, do not call, do not e-mail

Marketing Ethics

The principles and standards that define \n acceptable conduct in business

Ethical Issue

Identifiable problem,situation, or opportunity that requires a \n person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical

Ethical Issue Categories

Conflict of interest \n Fairness and honesty \n Communications \n Business relations

Conflict of Interest

Occurs when a person must choose whether to advance their own personal interest or those of others

Corporate Social Responsibility

Continuing commitment by business to contribute to economic development while improving the quality of life of the workforce and their families as well as of \n the community and society at large

Conscious Marketing Principle

1\. Recognition of marketing’s greater purpose.

2\. Consideration of stakeholders and their interdependence. 3. The presence of conscious leadership, creating a corporate culture.

4\. The understanding that decisions are ethically based.

Consumer Behavior

Study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs \n and the impacts that these processes have on the \n consumer and society

Perception

Refers to how people gather and interpret information \n from the world around them

Marketers

Are very much interested in the processes people \n use to handle incoming marketing mix stimuli, because people can’t process all the information to which they are exposed on a daily basis

Selective exposure

Means that consumers seek out and notice only the information that interests them

Selective retention

Consumers remember only what they really want to remember

Selective perception

People screen out or modify ideas, messages, and information that conflict with previously learned \n attitudes and belief

Marketing Plan

Specifies marketing activities for a specific period of time

Marketing Categories

outdoor enthusiasts, health-conscious buyers, young people, consumers

Exchange

trade of things of value between the buyer and the seller for better result

Marketing Mix/Four P’s

product, price, place, and promotion

Product

Developing a value by developing variety of offerings like goods, serves, and ideas to satisfy costumer needs

Goods

Items that you can physically touch

Services

Intangible customer benefits that are produced by people/machines and cannot be separated from producer

Ideas

Thoughts, opinions, and philosophies, intellectual concepts that can be marketed

Price

Everything the buyer gives up money, timer, or energy in exchange for the product

Place

Represents activates necessary to get the product to the right customer when the customer wants it

Marketing Channel Management/Supply Chain

Set of approaches to and techniques that firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores, and other firms involved in the transaction

Promotion

Communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their opinions and elicit a response

Business to Business (B2B) Marketing

Process of selling merchandise or services from one business to another

Business to Consumer (B2C) Marketing

Businesses sell to consumers

Consumer to Consumer (C2C)

Consumers sell to another consumer

Values

Reflects the relationship of benefits to costs, or what you get for what you give

Value Cocreation

Customers act as collaborators to create a product or service that appeals mostly to them

Relational Orientation

Need to think of customers in terms of relationships rather than transactions

Customer relationship management

Business philosophy and a set of strategies, programs, and systems that focus on identifying and building loyalty among the firms most valued customers

4 main activities that value-driven marketers undertake

Adding value, Marketing Analytics, Ethical and Societal Dilemma, and Social/Mobile Marketing

Marketing Strategy

Identifies firms target markets, related marketing mix, bases on which the firm plans to build a sustainable competitive advantage

Sustainable Competitive Advantage

Advantage over the competition that is not easily copied and can be maintained over a long period of time

Customer Excellence

Focuses on retaining loyal customers and excellent customer service

Operational Excellence

Achieved through efficient operations and excellent supply chain and human resource management

Product Excellence

Having products with high perceived value and effective branding and positioning

Location al Excellence

Having a good physical location and Internet presence

Marketing Plan

Written document composed of an analysis of the current marketing situation, opportunities, and threats for the firm, markieting objectives and strategy specified in terms of four P’s, action programs, and projected/pro forma income statements

Planning Phase

Marketing executives, in conjunction with other top managers, define the mission and/or vision of the business

Implementation Phase

Marketing managers identify and evaluate different opportunities by engaging in a process known as segmentation, targeting, and positioning

Control Phase

Entails evaluating the performance of the marketing strategy using marketing metrics and taking any necessary corrective actions

Mission Statement

Broad description of a firms objectives and the scope of activities it plans to undertake

SWOT Analysis

Assesses the environment with strengths, weaknesses, opportunities, and threats

STP(Segmentation, Targeting, and Positioning)

Identify and evaluate opportunities for increasing sales and profits

Market Segment

Consists of consumers who respond similarly to a firm’s marketing efforts

Market Segmentation

Process of dividing the market into groups of customers with different needs, wants, or characteristics- who therefore might appreciate products or services geared especially for them

Target Marketing/Targeting

Evaluates each segments attractiveness and decides which to pursue

Market Positioning

Involves the process of defining the marketing mix variables so that the target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products

Integrated Marketing Communications (IMC)

Represents the fourth P, promotion

Metric

Measuring system that quantifies a trend, dynamic, or characteristic

Strategic business unit (SBU)/Product Line

Portfolio Analysis is performed so managers can use it to analyze brands or even individual items

Relative Market Share

Is used in this application because it provides managers with a product’s relative strength compared with that of the largest firm in the industry

Market Growth Rate

Vertical axis or annual rate of growth of the specific market in which the product competes

Stars (Upper left quadrant)

Occur in high growth markets and are high market share products

Cash Cows (Lower Left Quadrant)

Low growth market rates but are high market share products

Question Marks (Upper Right Quadrant)

High growth markets but have low market shares

Dogs (lower right quadrant)

Low growth markets and have low market shares

Market Penetration Strategy

Employs the existing marketing mix and focuses the firm’s efforts on existing customers

Market Development Strategy

Employs the existing marketing offering to reach new market segments, whether domestic or international

Product Development Strategy

Offers a new product or service to a firms current target market

Diversification

Introduces a new product or service to a market segment that currently is not served

Related Diversification

Current target market and/or marketing mix shares something in common with the new opportunity

Unrelated Diversification

New business lacks any common elements with the present business

Conscious Marketing

Entails a sense of purpose for the firm that is higher than simply making a profit by selling products and services

Stakeholders

Broad set of people who might be affected by a firm’s actions

Four principles of conscious marketing

1) Recognition of marketing’s greater purpose

2) Consideration of stakeholders/interdependence

3) Presence of conscious leadership, creating a corporate culture

4) Understanding that decisions are ethnically based

Business Ethics

Concerned with distinguishing between right and wrong actions and decisions that arise in a business setting

Marketing Ethics

Examines ethical situations that are specific to the domain of marketing, including societal, global, or individual consumer issues

Corporate Social Responsibility

Establish that they have responsibilities to society

Triple Bottom Line

Economic, social, and environmental performance

Physical Environment

Includes land, water, air, and living organisms

Green Marketing

Firms work to supply customers with environmentally friendly, sustainable merchandise and services

Green washing

Consumers question whether a firm is spending more money and time advertising it’s green credentials or describing how it helps the environment

Macroenviromental Factors

culture, demographics, social trends, technological advances, economic situation, and political/legal environment

Culture

Shared meanings, beliefs, morals, values, and customs of a group of people

Country Culture

Visible nuances of a culture like artifacts

Regional Culture

Region in which people live in a particular country has its own culture that affects many aspects of people’s lives, including their dietary tastes and preferences

Demographics

Indicate the characteristics of human populations and segments, especially those used to identify consumer markets

Generational Cohort

Group of people of the same generation- have similar purchase behaviors because they have shared experiences and are in the same stage of life

Generational Alpha

Newest generation that is young and oldest members were born in 2010

Generation Z

Known as digital natives because people in this group were born in a world full of electronic gadgets and technologies

Generation Y (Millennials)

70 million people in the US between 1981 and 1996

Generation X (Gen X)

Includes people born between 1965 and 1980 and are expected to surpass baby boomers in the year 2028