MKT 300

Chapter 1: Why Marketing Matters
Marketing → Activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings with value.
Product → A good, service, or idea offered to satisfy customer needs or wants.
Customer Value → The difference between benefits a customer gets and the costs of obtaining it.
Needs vs. Wants → Needs are basic requirements; wants are shaped by culture and personality.
Marketing Mix → The 4 P’s: Product, Price, Place, Promotion.
Marketing Analytics → Use of data and metrics to evaluate marketing effectiveness.
Logistics → Planning, implementing, and controlling the physical flow of goods.
Supply Chain → Network of companies involved in producing and delivering products to consumers.
Production Orientation → Focus on efficiency and mass production.
Sales Orientation → Focus on aggressive selling and promotion.
Marketing Concept → Business philosophy that success depends on satisfying customer needs better than competitors.
Relationship Marketing → Building long-term, mutually beneficial customer relationships.
Non-Profit Business → Organizations that use marketing for social goals instead of profit.
Social Criticisms of Marketing → High prices, deceptive practices, unsafe products, planned obsolescence, marketing to children, materialism.
Ethics/AMA Code of Ethics → Principles of honesty, responsibility, fairness, respect, transparency, citizenship.
Corporate Social Responsibility (CSR) → Balancing profit-making with actions that benefit society.
Ethical Decision-Making Framework → Steps: determine facts, identify issue, consider stakeholders/alternatives, make and monitor decision.
NAFTA → North American Free Trade Agreement, later replaced by USMCA.
USMCA → Trade agreement between U.S., Mexico, and Canada.

Chapter 2: Strategic Planning
Strategic Planning → Defining a firm’s objectives and developing methods to achieve them.
Mission Statement → The organization’s purpose and reason for existing.
Stages of Marketing Plan → Analysis, objectives, strategies, implementation, evaluation.
Brand Competitor → Firms offering similar products to the same customers.
Product Competitor → Different products that satisfy the same need.
Generic Competitor → Different categories that meet the same basic need.
Total Budget Competitor → Compete for the same financial resources of customers.
SWOT Analysis → Evaluating Strengths, Weaknesses, Opportunities, Threats.
Market Penetration → Increase sales of existing products in existing markets.
Product Development → New products in existing markets.
Market Development → Existing products in new markets.
Diversification → New products in new markets.
Market Segmentation → Dividing the market into groups with shared traits.
Target Market → The specific customer group chosen to serve.
Positioning → How a product is perceived in the minds of customers.
Financial Projections → Forecast of revenue, costs, and profits.
Sales Forecast → Predicted future sales.
Expense Forecast → Predicted future costs.
Break-even Analysis → Determines sales needed to cover costs.
Return on Marketing Investment (ROMI) → (Sales × Margin % – Marketing Expenditures) ÷ Marketing Expenditures.
Revenue Analysis → Measures revenue by product, region, or segment.
Profitability Analysis → Examines customer acquisition cost and customer profitability.
Market Share → A firm’s sales as a percentage of the industry total.
Market Entry Strategies → Exporting, licensing, joint ventures, direct investment.

Chapter 3: The Marketing Environment
Marketing Environment → Outside factors affecting a company’s ability to meet goals.
Environmental Scanning → Collecting info about external environment trends/threats.
Direct Competition → Firms offering similar solutions to the same customers.
Indirect Competition → Firms offering alternative ways to satisfy the same need.
Economic Factors → Conditions like income, inflation, and confidence that affect buying.
Gross Domestic Product (GDP) → Total value of goods and services produced in a country.
Household Income → Combined income of all members in a household.
Inflation → Rise in overall price levels.
Consumer Confidence → Measure of consumer optimism about the economy.
Currency Exchange Rate → Value of one country’s currency vs. another.
Disposable Income → Income left after taxes for spending and saving.
Purchasing Power → The ability of income to buy goods and services.
Demographic Factors → Population characteristics such as age, gender, ethnicity.
Sociocultural Factors → Cultural values, attitudes, and lifestyles affecting marketing.
Self-Reference Criterion → Using one’s own culture to evaluate others.
Cultural Relativism → Understanding cultural differences without judgment.
Legal Factors → Laws that regulate marketing practices.
Political Factors → Government actions and policies affecting business.
Tariff → Tax on imported goods.
Quota → Limit on the number of imports allowed.
Embargo → Total ban on trade with a country.
Technological Factors → Innovations (like AI) that impact marketing.
NAFTA/USMCA → Trade agreements shaping cross-border marketing.
BRICS → Emerging markets (Brazil, Russia, India, China, South Africa).
WTO → World Trade Organization, regulating global trade