marketing

Fundamental values of tomorrow's markets -Customer -Capital -Labor -Government

First principles of marketing 1.exchanging values 2.relationship with customers 3.build relationships

Marketing Concept satisfaction of customer wants and needs while meeting organizational objectives

Organization's focus under a sales orientation

-Sales-oriented firms believe marketing is selling things and collecting money.

-Problem: These firms lack understanding of the needs and wants of the marketplace.

Organization's focus under a marketing orientation -Focusing on customer wants and needs to be diff from competition • Integrating all the organization's activities to satisfy customer wants • Achieving the organization's long-term goals by satisfying customer wants and needs legally and responsibly

Relationship management

-this is the ability to communicate clearly and convincingly, disarm conflicts, and build strong personal bonds

Strategic Planning

-Creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities

Marketing Definition

-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.

Conditions for exchange

1. At least two parties
2. Something of value
3. Communication and delivery
4. Freedom to accept or reject
5. Desire to deal with other party
6. Each party is free to accept or reject the offer.

customer satisfaction

-customers' evaluation of a good or service in terms of whether it has met their needs and expectations

Anshoff's growth matrix

• Market penetration: Increase market share among existing customers
• Market development: Attract new customers to existing products
• Product development: A strategy entailing the creation of new products for present markets
• Diversification: A strategy of increasing sales by introducing new products into new markets

Marketing planning

-designing activities relating to marketing objectives and the changing marketing environment

Elements of a marketing plan

-Mission Statement

-SWOT -Analysis

-Objectives

-Marketing Strategy

-Implementation

-Evaluation Control

Mission Statement

-a statement of the organization's purpose - what it wants to accomplish in the larger environment

Situation analysis (SWOT)

-strengths, weaknesses, opportunities, threats

Competitive advantage

-factors that cause customers to patronize a firm and not the competition

-Cost

• Product/service differentiation
• Niche

Sources of Sustainable Competitive Advantage

-patents, copyrights, locations, equipment, technology, customer service, promotion

Requirements for stated marketing objectives

-realistic, measurable, time specific, compared to a benchmark

target marketing strategy

-characteristics, selecting segments, and developing products to meet the needs of those specific segments

Four P's

-product

-places involved

-promotion

-price

Techniques for effective strategic planning

-continual attention, creativity, management commitment

Ethical Development Levels

-pre-conventional morality, conventional morality, post-conventional morality

Arguments for CSR -It is the right thing to do.

• Businesses have the resources to devote to fixing social problems
• It helps prevent government regulation and potential fines.
• It can be profitable.

Arguments against CSR -It takes focus away from making profits.

• Management spends the shareholder money on environmental initiatives

Environmental factors that affect marketing

• Social
• Demographic
• Economic
• Technological
• Legal

Target market

-Group of people or organizations for which an organization designs, implements, and maintains a marketing mix

Social factors that affect marketing

-attitudes, values, lifestyles

market planning

-design of market

Marketing to component lifestyles -Practice of choosing goods and services that meet one's diverse needs and interests -Increase the complexity of consumers' buying habits

How firms use social media -Engage customers in their products and services -Converse with customers and establish connections -Humanize brands -Build goodwill products

Key Demographic Trends

-changing age structure, changing american family, geographic shifts, better educated population, increasing diversity

Economic factors that affect marketing -consumer income -purchasing power -inflation -recession

Ways to stimulate innovation •build scenarios, •enlist the web, •talk to early adopters, •create an innovative environment, •cater to entrepreneurs

Regulatory Agencies •Consumer Product Safety Commission (CPSC) - Protects the health and safety of consumers in and around their homes •Food and Drug Administration (FDA)- Enforces regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products •Federal Trade Commission (FTC)- Prevents persons or corporations from using unfair methods of competition in commerce

World Trade Organization (WTO)

-a trade organization that replaced the old General Agreement on Tariffs and Trade (GATT)

International Monetary Fund (IMF)

-promotes trade

Foreign Direct Investment (FDI)

-Active ownership of a foreign company or of overseas manufacturing or marketing facilities

Methods of global marketing by the individual firm -Exporting -Buyer for export -Export broker -Export Agent -Licensing -Contract -Manufacturing -Joint venture -Direct investment

Consumer Decision Making Process !1. need recognition! 2. information search 3. evaluation of alternatives 4. purchase 5. post purchase behavior

External information searches and varying levels of information

-Seeking information in the outside environment

Internal information search

-Recall information in memory

Evoked set

-alternatives a consumer knows about

Cognitive dissonance

-Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions

Buying decisions and level of involvement

-previous experience, interest, perceived risk of negative consequences, social visibility

Types of consumer decision-making

1. routinized response behavior
2. limited decision making
3. extended decision making

Implication of involvement -High involvement (Extensive and informative promotion to target market) -Low involvement (in store promotion, eye catching displays/packaging, coupons, bogo)

Functions of culture -Sense of identity and increased commitment. -Sense-making device. -Control mechanism.

value

-Personal assessment of the net worth one obtains from making a purchase

subculture

-Homogeneous group of people who share elements of the overall culture as well as cultural elements unique to their own group

Social class

-a group of people with similar backgrounds, incomes, and ways of living

Social influences

-reference groups, opinion leaders, family members

Opinion leaders

-persons who influence others.

individual influences -gender -age/family life cycle -personality, self-concept, and lifestyle

Characteristics of perception

-selective exposure, selective distortion, selective retention

Changing Beliefs

-A marketer may want to…

(1) Turn a neutral, negative, or incorrect belief about a product attribute into a positive one

 (2) Change the relative importance of a belief.

(3) Add a new belief

Consumer Decision Making Process

-a five-step process used by consumers when buying goods or services