PRINCIPLES OF MARKETING NOTES Chapters 1-3

BUS 270 Principles of Marketing, Chapters 1-3 through Cengage

Marketing

the process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment

Target Marketing

focus of marketing efforts on specific groups of customers

marketing mix

the four variables that make up marketing; product, price, distribution, and promotion

promotion

relates to activities used to inform and persuade to create a desired response, includes personal selling, sales promotions, and publicity, promoting to help customers learn about the product and determine if the product will satisfy their needs

value

a customer’s subjective assessment of benefits relative to costs in determining the worth of a product

stakeholders

constituents who have a “stake,” or claim, in some aspect of a company’s products, operations, markets, industry, and outcomes

Marketing Environment

the competitive, economic, political, legal and regulatory, technological, and sociocultural forces that surrounds the customer and affects the marketing mix

Marketing Concept

managerial philosophy that an organization should try to satisfy customer’s needs through a coordinated set of activities that also allows the organization to achieve its goals

Customer Relationship Management (CRM)

using information about customers to create marketing strategies that develop and sustain desirable customer relationships

Relationship Marketing

establishing long-term, mutually satisfying buyer-seller relationships

Green Marketing

a strategic process involving stakeholder assessment to create meaningful long-term relationships with customers while maintaining, supporting, and enhancing the natural environment

Strategic Marketing Management

The process of planning, implementing, and evaluating the performance of marketing activities and strategies, both effectively and efficiently

Strategic Planning

The process of establishing an organizational mission and formulating goals, a corporate strategy, marketing objectives, and a marketing strategy

Mission Statement

a long-term view, or vision, of what the organization wants to become

Market

A group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products

Market Share

The percentage of a market that actually buys a specific product from a particular company

Market Growth/Market Share Matrix

A helpful business tool, based on the philosophy that a product’s market growth rate and its market share are important considerations in determining its marketing strategy

Core Competencies

Things a company does extremely well, which sometimes give it an advantage over its competition

Market Opportunity

A combination of circumstances and timing that permits an organization to take action to reach a particular target market

Strategic Windows

Temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competing in that market

Competitive Advantage

The result of a company matching a core competency to opportunities it has discovered in the marketplace

First-Mover Advantage

the ability of a company to achieve long-term competitive advantages by being the first to offer an innovative product in the marketplace

Late-Mover Advantage

the ability of later market entrants to achieve long-term competitive advantages by not being the first to offer a product in a marketplace

Marketing Objective

A statement of what is to be accomplished through marketing activities

Marketing Strategy

A plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market

Sustainable Competitive Advantage

advantage that the competition cannot copy

Marketing Implementation

the process of putting marketing strategies into action

Centralized Organization

A structure in which top-level managers delegate little authority to lower levels

Decentralized Organization

A structure in which decision-making authority is delegated as far down the chain of command as possible

Performance Standard

An expected level of performance against which actual performance can be compared

Marketing Plan

A written document that specifies the activities to be performed to implement and control the organization’s marketing strategies

Environmental Scanning

the process of collecting information about forces in the marketing environment

Environmental Analysis

the process of accessing and interpreting the information gathered through environmental scanning

Competition

other firms that market products that are similar to or can be substituted for a firm’s products in the same geographic area

Buying Power

Resources – such as money, goods, and services– that can be traded in an exchange

Disposable Income

after-tax income (marketers are most interested in this!)

Discretionary Income

disposable income available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter

Better Business Bureau (BBB)

A system of nongovernmental, independent, local regulatory agencies supported by local businesses that helps settle problems between customers and specific business firms

Technology

The application of knowledge and tools to solve problems and perform tasks more efficiently

Sociocultural Forces

The influences in a society and its culture(s) that change people’s: Attitudes, Beliefs, Norms, Customs, and Lifestyles

Social Responsibilty

An organization’s obligation to maximize its positive impact and minimize its negative impact on society

Marketing Citizenship

The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders

Ethical Issue

An identifiable problem, situation, or opportunity requiring a choice among several actions that must be evaluated as right or wrong, ethical or unethical NOTE: Just because it’s legal does not mean it is ethical!

Cause-Related Marketing

The practice of linking products to a particular social cause on an ongoing or short-term basis (this can be tricky!!)

Strategic Philanthropy Approach

The synergistic use of organizational core competencies and resources to address key stakeholders’ interests and achieve both organizational and social benefits

Consumerism

Organized efforts by individuals, groups, and organizations to protect consumers’ rights

Ethics

relates to individual and group decisions—judgments about what is right and wrong in a particular decision-making situation.

Social Responsibilty

deals with the total effect of marketing decisions on society

Codes of Conduct

Formalized rules and standards that describe what a company expects of its employees