Marketing Chapter 1-5

Marketing

The process of creating, communicating, delivering, and exchanging offerings that provide value to customers, clients, partners, and society.

Product

The good, service, or idea being marketed.

Price

The cost to the consumer.

Place

Distribution channels to reach consumers.

Promotion

Communication to inform and persuade buyers.

Production Era

A time (before 1950s) focused on efficient production and distribution with little attention to customer needs.

Sales Era

The period (1950s to 1960s) that emphasized aggressive selling and advertising due to excess supply.

Relationship Era

The era (from the 1970s to the present) that prioritizes customer relationships and satisfaction.

Triple Bottom Line Era

The current era where businesses focus on financial, social, and environmental success (sustainability).

Need

A gap between actual and desired states.

Want

A specific way to satisfy a need, influenced by culture.

Benefit

The positive outcome sought by the customer.

Demand

The desire for a product combined with purchasing power.

Competitive Advantage

A unique benefit a company offers over competitors.

Differential Benefit

Features that distinguish a product from competitors.

Ethical Marketing

Ensuring products are safe and meet social standards.

Sustainability

Meeting present needs without compromising the future.

Consumer Market

Selling to individuals for personal use.

Business to Business (B2B)

Selling products to other businesses.

Non Profit Marketing

Marketing for social causes or charitable organizations.

Place Marketing

Promoting locations such as tourism destinations.

People Marketing

Promoting individuals such as celebrities.

Form Utility

Creating a product consumers want.

Place Utility

Making products available where consumers need them.

Time Utility

Offering products when consumers need them.

Possession Utility

Making purchasing easier, such as through financing options.

Big Data

Large volumes of data used to predict customer behavior.

Artificial Intelligence (AI)

Technology that simulates human intelligence in marketing.

Social Media Marketing

Engaging consumers through digital platforms.

Influencer Marketing

Using influential individuals to promote products.

Consumer Generated Content

Content created by customers contributing to branding, such as reviews and social media posts.

Sharing Economy

An economic model where assets are shared, often peer to peer, such as Uber or Airbnb.

Overconsumption

Encouraging unnecessary purchases.

Addictive Consumption

Products designed to be habit forming.

Unethical Practices

Marketing strategies that involve misleading advertising or environmental harm.

Personal Branding

Applying marketing principles to promote oneself professionally.

Value Proposition

Demonstrating how one adds value to employers.

World Trade

The flow of goods and services between countries, including exports and imports.

Countertrade

The direct exchange of goods and services between firms, accounting for a significant portion of world trade.

Protectionism

Government policies designed to restrict imports to protect domestic industries.

Tariffs

Taxes imposed on imported goods.

Import Quotas

Limits on the quantity of a specific good that can be imported into a country.

Embargoes

Government bans on trade with specific countries.

World Trade Organization (WTO)

An organization that sets global trade rules and mediates disputes.

General Agreement on Tariffs and Trade (GATT)

An agreement aimed at reducing tariffs and other trade restrictions.

World Bank

Provides financial assistance for poverty reduction and development projects globally.

International Monetary Fund (IMF)

An institution that manages exchange rate stability and provides financial support to countries.

Gross Domestic Product (GDP)

The total value of goods and services produced within a country in a given period.

Foreign Exchange Rate

The value of one currency compared to another.

Least Developed Countries (LDCs)

Nations with economies primarily based on agriculture and low levels of industrialization.

Developing Countries

Nations transitioning from agricultural to industrial economies, such as Brazil, Russia, India, China, and South Africa.

Developed Countries

Highly industrialized nations with advanced economies, such as the United States, Canada, and Japan.

Exporting

Selling domestically produced products to foreign markets.

Licensing

Granting foreign firms the rights to produce and sell a company's products.

Franchising

Allowing foreign entities to operate using an entire business model, such as McDonald's.

Strategic Alliances

Partnerships between companies to pursue mutual goals.

Direct Investment

Owning and operating a business in a foreign country.

Competitive Intelligence

Gathering publicly available information about competitors to inform business strategies.

Monopoly

A market structure where a single seller dominates the industry.

Oligopoly

A market dominated by a small number of large firms.

Monopolistic Competition

A market structure with many sellers offering slightly differentiated products.

Perfect Competition

A market structure with numerous small firms selling identical products.

Standardization

Offering the same product worldwide with minimal changes.

Localization

Adapting products and marketing strategies to fit local markets.

Business Ethics

Moral principles guiding business and marketing practices.

Utilitarian Approach

An ethical philosophy focused on maximizing benefits and minimizing harm.

Rights Approach

Emphasizes the protection of individual rights in decision making.

Justice Approach

Focuses on fairness and equitable treatment in business practices.

Common Good Approach

Prioritizes the welfare of the broader community.

Virtue Approach

Encourages acting according to moral character and integrity.

Green Consumers

Individuals who seek environmentally friendly products.

Fair Trade

A certification ensuring products are sourced ethically with fair wages for producers.

Locavorism

A consumer preference for locally produced goods.

Local Content Rules

Regulations requiring a certain percentage of goods to be produced domestically.

Human Rights Issues

Ethical concerns related to labor practices, working conditions, and exploitation.

Nationalization

The government taking ownership of private businesses.

Expropriation

The forced sale or seizure of assets by a government, often with inadequate compensation.

Economic Sanctions

Trade restrictions imposed on countries to influence political or economic decisions.

Strategic Market Planning

The process of developing long term strategies to achieve business objectives and competitive advantage.

Strategic Planning

High level planning to align company resources with market opportunities for long term growth.

Mission Statement

A formal summary of an organization's purpose, goals, and values.

Vision Statement

A future oriented declaration of a company's aspirations and long term goals.

Business Portfolio

A collection of products, services, or business units that make up a company.

Growth Strategies

Approaches to expand a company's market share or product offerings.

Functional Planning

Mid term strategies for specific business functions like marketing.

Situation Analysis

The assessment of both internal and external environments to inform strategic decisions.

Marketing Objectives

Specific, measurable goals a company aims to achieve through marketing efforts.

Marketing Strategy

A comprehensive plan to reach target markets and achieve marketing objectives through product, price, place, and promotion.

Operational Planning

Short term plans focused on the day to day implementation of functional strategies.

Action Plans

Detailed outlines of specific steps and tasks to achieve marketing objectives.

Marketing Metrics

Quantitative measures used to assess the performance of marketing strategies.

Strategic Business Units (SBUs)

Individual divisions within a company that operate like independent businesses with their own goals and resources.

SWOT Analysis

A tool for evaluating a company's strengths, weaknesses, opportunities, and threats.

Strengths

Internal attributes that provide an advantage over competitors.

Weaknesses

Internal limitations that hinder a company's performance.

Opportunities

External factors that a company can exploit to its advantage.

Threats

External challenges that could negatively impact business performance.

BCG Growth Market Share Matrix

A framework for analyzing a company's product portfolio based on market growth and relative market share.

Stars

High growth, high market share products that require significant investment to sustain growth.

Cash Cows

High market share, low growth products that generate steady cash flow.