MKTG Exam 1 (copy)

marketing

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

What is needed for marketing to occur ?

1. 2+ parties with unsatisfied needs

2. a desire and ability to be satisfied

3. a way for parties to communicate

4. something to exchange

exchange

The trade of things of value between buyer and seller so that each is better off after the trade

consumer needs

necessities

consumer wants

shaped by culture

market

People with both the desire and the ability to buy a specific offering

target market

One or more specific groups of potential consumers toward which an organization directs its marketing program

The four Ps

product

price

promotion

place

marketing mix

The controllable factors—product, price, promotion, and place—that can be used by the marketing manager to solve a marketing problem

marketing concept

The idea that an organization should (1) strive to satisfy the needs of consumers while also (2) trying to achieve the organization's goals

market orientation

An organization with a market orientation focuses its efforts on (1) continuously collecting information about customers' needs, (2) sharing this information across departments, and (3) using it to create customer value

customer relationship management (CRM)

The process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace and become advocates after their purchas

customer experience

The internal response that customers have to all aspects of an organization and its offering

societal marketing concept

The view that organizations should satisfy the needs of consumers in a way that provides for society's well-being

customer value

the ratio of benefits to the sacrifice necessary to obtain those benefits

utility

The benefits or customer value received by users of the product

organizations

legal entities that consists of people who share a common mission

for-profit organization (business firm)

private owned organization

profit

The money left after a for-profit organization subtracts its total expenses from its total revenues and is the reward for the risk it undertakes in marketing its offerings

nonprofit organization

a nongovernmental organization that serves its customers but does not have profit as an organizational goal

government agency

a federal, state, county, or city unit that provides a specific service to its constituents

industry

a group of companies with similar offerings

strategy

An organization's long-term course of action designed to deliver a unique customer experience while achieving its goals

structure of today's organizations

• corporate level of top management includes Chief Marketing Officer (CMO)

• strategic business unit (SBU) level

• functional level

organizational structure within the SBU

1. functional level: groups of specialists create value

2. department: functions such as finance and marketing

3. cross-functional teams: different departments contribute to a performance goal

organizational purpose

Describes why an organization exists, what problems it wishes to solve, and who it wants to be to every person it touches through its work

core values

The fundamental, passionate, and enduring principles of an organization that guide its conduct over time

mission / vision

A statement of the organization's function in society that often identifies its customers, markets, products, and technologies

organizational culture

The set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization

business

The clear, broad, underlying industry or market sector of an organization's offering

business model

includes the strategies an organization develops to provide value to customers; changes over time

goals / objectives

profit

sales

market share

quality

customer satisfaction

employee welfare

social responsibility

efficiency (nonprofit organization)

market share

The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself

marketing plan

A road map for the marketing actions of an organization for a specified future time period, such as one year or five years

marketing dashboard

The visual display of the essential information related to achieving a marketing objective

marketing metric

A measure of the quantitative value or trend of a marketing action or result

business portfolio analysis (BCG Matrix)

A technique that managers use to quantify performance measures and growth targets to analyze their firms' strategic business units (SBUs) as though they were a collection of separate investments

4 quadrants of BCG Matrix

1. question marks: low share of high-growth market

2. stars: high share of high-growth markets

3. cash cows: generate large amounts of cash

4. dogs: low share of slow-growth markets

diversification analysis

A technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products

Steps of Diversification Analysis

1. market penetration: increase sales of current product in current markets

2. market development: sell current products to new markets

3. product development: sell new products to current markets

4. diversification: develop new products to sell in new markets

strategic marketing process

The approach whereby an organization allocates its marketing mix resources to reach its target markets

Guiding principles and assumptions of SMP

1. customers are different

2. customers change

3. competitors change and react

4. organizational resources are limited

Phases of SMP

planning -> implementation -> evaluation

situation analysis

Taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization's marketing plans and the external forces and trends affecting it

SWOT analysis

An acronym describing an organization's appraisal of its internal

• strengths

• weaknesses

and it’s external

• opportunities

• threats

SWOT analysis actions

• build on a strength

• correct a weakness

• exploit an opportunity

• avoid a disaster-laden threat

Steps of planning phase

1. SWOT analysis

2. develop a market-product focus, customer value proposition, and goals

3. design the marketing program

market segmentation

Involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action

customer value proposition

The cluster of benefits that an organization promises customers to satisfy their needs

points of difference

Those characteristics of a product that make it superior to competitive substitutes

four components of the implementation phase

1. obtaining resources

2. designing the marketing organization

3. defining precise tasks, responsibilities, and deadlines

4. executing the marketing program

marketing strategy

The means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it

marketing tactics

The detailed day-to-day operational marketing actions for each element of the marketing mix that contribute to the overall success of marketing strategies

components of evaluation phase

comparing results with plans

- identify deviations \n - planning gap \n \n acting on deviations: \n - exploiting a positive deviation \n - correcting a negative deviation

environmental scanning

The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends

Trends that affect future marketing:

• personalized marketing

• increased emphasis on reusing products and resources

• visual search

• artificial intelligence

• blockchain technologies

social forces

The demographic characteristics of the population and its culture

demographics

Describing a population according to selected characteristics such as age, gender, ethnicity, income, and occupation

multicultural marketing

Combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races

culture

The set of values, ideas, and attitudes that are learned and shared among the members of a group

notable cultural changes:

• attitudes and roles

• gender stereotypes

• fashion

• careers

• sports

economy

Pertains to the income, expenditures, and resources that affect the cost of running a business and household

macroeconomics

performance of the economy

inflation

production costs and prices increase

recession

periods of declining economic activity

gross income

The total amount of money made in one year by a person, household, or family unit

disposable income

The money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation

discretionary income

The money that remains after paying for taxes and necessities

technology

Inventions or innovations from applied science or engineering research

marketspace

An information- and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digital offerings

electronic commerce

The activities that use electronic communication in the inventory, promotion, distribution, purchase, and exchange of products and services

Internet of Things (IoT)

The network of products embedded with connectivity-enabled electronics

competition

The alternative firms that could provide a product to satisfy a specific market's needs

pure competiton

many sellers with similar products

monopolistic competiton

many sellers with substitutable products in a price range

oligopoly

few sellers control majority of sales

pure monopoly

only one seller

regulation

Restrictions state and federal laws place on a business with regard to the conduct of its activities

self-regulation

An alternative to government control whereby an industry attempts to police itself

consumerism

a grassroots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions

ethics

The moral principles and values that govern the actions and decisions of an individual or group

business cultures

comprise the effective rules of the game, the boundaries between competitive and unethical behavior and the codes of conduct in business dealings

caveat emptor

The legal concept of "let the buyer beware" that was pervasive in the American business culture prior to the 1960s

Consumer Bill of Rights

1. rights to safety \n 2. right to be informed \n 3. right to choose \n 4. right to be heard

Two kinds of unethical behavior in competition:

1. economic espionage

2. corruption

economic espionage

The clandestine collection of trade secrets or proprietary information about a company's competitors

corporate culture

set of values, ideas, and attitudes shared among member of an organization

code of ethics

A formal statement of ethical principles and rules of conduct

whistle-blowers

Employees who report unethical or illegal actions of their employers

moral idealism

A personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome

utilitarianism

A personal moral philosophy that focuses on "the greatest good for the greatest number" by assessing the costs and benefits of the consequences of ethical behavior

social responsibility

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

Three Concepts of Social Responsibility

1. profit responsibility \n 2. stakeholder responsibility \n 3. societal responsibility

profit responsibility

obligation to maximize profits for stakeholders

stakeholder responsibility

obligations to those who can affect achievement of objectives

societal responsibility

obligations to preserve environment and to the general public

triple bottom line

The recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth

sustainable marketing

The effort to meet today's (global) economic, environmental, and social needs without compromising the opportunity for future generations to meet theirs

green marketing

Marketing efforts to produce, promote, and reclaim environmentally sensitive products

cause marketing

Occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products