Intro to Marketing, Maryott- Exam 1

What is marketing and what is its purpose?

The process of creating, communicating, delivering, and exchanging offerings that have value for the customer through product, place, promotion, and pricing.

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Understand the marketing concept

the purpose of a company is to satisfy customer needs, which in turn leads to success for the company. This means that all pieces of a company should be "marketing" by giving good customer service

Elements of an exchange

For an exchange to take place- two or more parties must be unsatisfied, two or more parties must hold something of value, they both must have the desire and ability to satisfy needs, and the parties must have a means of communication

The 4 marketing management orientations/eras and the differences between them

1.) Production- internal capabilities of the firm (product innovation)- does not consider customer needs

2.) Sales- aggressive sales tactics, thought that high sales\=high revenue (used car salesman). Turns out to not be the case because unhappy customers will not return- does not consider customer needs

3.) Market- satisfy needs while meeting objectives

4.) Societal- satisfy needs, but also enhances customer's lives long-term (non GMO, etc.)

Understand how firms create customer value

Customers aren't always just looking for the lowest price. Some are, but others look at price, product/quality, and service. Compare what they give for what they give up. Some want best value, others want best quality

Understand relationship marketing

Links businesses to their individual customers. Leads to long-term benefit for both because the business gets easy, repeat customers and the customer's know what they're getting and maybe gets reward points for coming back

Understand how marketing discovers and satisfies consumer needs

1.) Discover wants and needs-discover what people feel like they're lacking/being deprived of through social media and observation- including observation of how customers used the product, because it may be differently than intended and you'll have to re evaluate to see if your product works well how they're using it

2.) Satisfy wants and needs-by using the 4Ps (price, product, position, and promotion) to create a customer value proposition (promises of what the customer will get when buying this product)

Understand difference between needs and wants (explanation in slides is probably easier to understand)

Wants are shaped by knowledge of what's available, needs arise when deprived of a basic need

Understand customer relationship management (CRM)

A way of tracking customer's throughout the product lifecycle, in order to better serve the customers and create better customer service (because company now knows what they're looking for)

Understand social responsibility

Organizations are apart of a larger society and are accountable to that society for their actions

What are the 4 P's/Marketing Mix?

Price, promotion, product (quality), place (distribution)

What is a target market and what are the environmental elements that affect it?

One or more specific groups of potential consumers towards which an organization directs it's marketing program. Impacted by: social factors, economic conditions, legal/regulatory, competition, technological

Understand environmental management

Managing the uncontrollable factors listed above

Understand social trends that have impacted business

Demographics (characteristics of populations), culture (values, ideas, attitudes that are learned- health, diversity inclusion, sustainability)

What are demographics and the various categories (be able to identify these categories)

Information about the characteristics of human populations and segments, especially those used to ID consumer markets

Marketing to growing ethnic markets (Hispanic, African & Asian Americans)

Many companies make products geared toward specific ethnic groups and create targeted promotions as these groups continue to grow

What impact do competitors, demographics, social, economic situation, technological advances, political/regulatory factors have on marketing?

Change the environment which you market/do business in

Understand the different levels of competition and the various competitive structures of industries

Structures: Monopoly, oligopoly, monopolistic competition (not perfect substitutes), pure competition

Competition is alternatives which the target can choose from

Level1- general, income left over after customer buys necessities

Level2- indirect, different products attempt to satisfy same needs (Panera instead of a vending machine)

Level3- direct, brand competition because they're all offering similar products

Understand the influences on personal moral philosophy and ethical behavior

Influential factors include: extent of the problem, probability of harm, time until consequences- basically cost benefit analysis done.

Understand why ethical decision-making is so difficult

Ethical decision making is hard because not everyone agrees on what's right and fair

Understand moral idealism and utilitarianism

Idealism is "good vs bad" utilitarianism is "greatest good for greatest number"

Understand the Framework for Ethical Decision Making

1- ID issues

2- Gather info and ID stake holders

3- Brainstorm and evaluate alternatives

4- Chose course of action

Publicity test (would I want this on the first page?), Moral Mentor (what would they do?), Transparency test (can I explain why I'm doing this?), Golden Rule test (would I want this done to me?)

Know the components of the Consumer Bill of Rights

Introduced by JFK: right to be safe when using the product, right to choice (right to not be run by monopoly), right to be heard (right to voice complaints about product), right to be informed (know what's in the product), right to be educated (make good market choices), right to service

What is corporate social responsibility (CSR) and why is it important

Idea that organizations are part of a larger society and are accountable to that society for their actions

Understand the three concepts of social responsibility

Profit responsibility- max profits for stockholders, Stakeholder responsibility- obligations to those who can affect achievement of objectives, Societal responsibility- obligations to preserve environment and to the general public

Understand green marketing and green washing

Marketing\= efforts to produce more environmentally friendly products, Washing\= dishonestly marketing or spending more money on talking than actually doing

Understand the benefits of corporate social responsibility (CSR)

Some believe that your company will be more successful if you build profits and help the environment because you're building a stronger environment to do business in

Understand the consumer/purchase decision process

Problem Recognition, information search, alternative evaluation, purchase decision, post-purchase decision

Sources of information search

Internal search (think of go to brands), Personal sources, Public sources, Market-dominated sources

Understand the factors that affect consumers' search processes: the various risks

Could be risks in: performance, financial, social, physical, psychological

What is the evoked/consideration set and why is it important to marketers

Brands which the customer sees as "acceptable"

How do consumers evaluate alternatives?

Narrow list and compare pros/cons, ID consideration set, evaluate criteria (important attributes consumers use to compare competing alternatives)

Understand the difference between salient attributes and determinant attributes

Salient attributes are attributes which the customer uses to compare competing alternatives (color, size, price, etc.), determinant attributes the attributes which actually result in the preference of one product over another (not necessarily the most important)- important to the buy and differ among brands

Understand the various ways/rules consumers use to decide what to purchase

Compensatory decision rules- trade off one characteristic for another

Non compensatory decision rules- not willing to make trade offs for important attributes

Heuristics- rules of thumb

Understand satisfaction and dissatisfaction

Expectations, outcomes, influence of others. Impacts re-purchase intentions and word-or-mouth

What is cognitive dissonance? What will consumers do when they experience it? How can marketers minimize it?

Post purchase psychological tension- regret. Arises from inconsistency between two beliefs or disconnect between belief and behavior

Customers can avoid this by seeking positive reinforcement/avoiding negative, revoke decision

Marketers can avoid this through follow-ups, guarantees, and warranties

Understand Hofstede's cultural dimensions (use the information in the slides and follow the link in the slides for further explanations)

Individualism/collectivism (we vs I), Power distance (accept classism?), Masculinity/Fem (which types of traits are empathized more?), Uncertainty avoidance (open to changes?), long-term vs short orientation, Indulgence vs restraint (instant gratification?)

What is a market and why must marketers break it down into more manageable / meaningful segments?

All customers are not alike, preferences vary and these preferences can be used to target segments. Marketers need to break large market into smaller groups

Understand what a market is (4 characteristics)

A market must have- need, ability, willingness, authority (dogs aren't a market because they don't have ability to buy, but still affect the market because if they don't like something then the owner will not buy again)

Understand the segmentation and targeting steps

1.) Group potential buyers into segments (geographic, demographic, psychographic, benefits sought, usage rates, geodemographic)

2.) Group products to be sold into categories

3.) Develop a market-product grid and estimate the size of the market

4.) Select target segments (market size, expected growth, competitive position, cost of reaching segment, compatibility with objectives/resources)