1. Marketing
    • the activity, set of institutions and processes for creating, communicastin, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
    • To safisfy needs
  2. Stakeholders
    • Buyers, sellers or investors in a company where goods and services are sold
    • Any person or organization that has a stake in the outcome
  3. Management Philosophy
    • Is the basic approach of a company doing business
    • In order to survive, it preaches that the firm should adapt itself to the dynamic marketing enviornment.
    • Requires: Customer and competitor orientation, interfunctional coordination, long range planning, profitability
  4. Business Function
    • Includes all the activities (like planning, organizing, implementing and controlling towards adapting the firm to the changing marketing enviornment.
    • Tools: Product, Price, Promotion, Place
  5. Consumer
    The ultimate user of a good or service.
  6. Marketing Concept
    Marketers first identify consumer needs and then provide products that satisfy those needs
  7. Need
    • The different between a consumer's actual state and some ideal or desired state.
    • Relate to physical or psychological needs
  8. Want
    • A desire for a particular product used to satisfy that need
    • Are culterally and socially influenced
  9. Demand
    Customers' desires for a product coupled with the resources needed to obtain them.
  10. Market
    Consists of all the consumers with that need and the resources to make the exchange
  11. Marketplace
    Any location or medium used to conduct an exhcange
  12. Utility
    • The usefulness or benefit consumers recieve from a product
    • Utility is what creates value
  13. Form Utitlity
    Transforming raw materials into finshed products
  14. Place Utiltity
    Benefit marketing provides by making products availibale wheer customers what them
  15. Time Utility
    Benefit marketing provides by storing products until they are needed
  16. Possession Utility
    Benefit marketing providesn by allowing the consumer to own, use, and enjoy the product
  17. Exchange
    • When a person gives somthing and gets something else in return.
    • The buyer recives an object, service, or idea that satisfies a need and the seller recieves something he feels is of equivalent value
    • The head of every marketing act
  18. Value
    • Refers to the benefits a customer recieves from buying a product or service
    • Ex: quality, price, convenience, on time delivery, before and after sale service
  19. Value Proposition
    A marketplace offering that fairly and accurately sums up the value that the customer will realize if he/she purchases product/service
  20. Value from Customer's perspective
    • Value is the ratio of costs (price) to benefits (utilities)
    • Value proposition includes the whole bundle of benefits the firm promises to deliver, not just the benefits of the product
    • itself
  21. Value for Seller's perspective
    • Making a profitable exchange
    • Earning prestige among rivals
    • Taking pride in doing what a company does well
    • Nonprofits: motivating, educating, or delighting the
    • public
  22. Distinctive Competency
    A superior capability of a firm in comparison to it's direct competitors
  23. Differential benefit
    • Properties of procuts that set them apart from competirors product by providing unique customer benefits
    • Must be differnt and somthing consumers want
  24. Value Chain
    • A series of activities involved in designing, producing, marketing, delivering, and supporting any product
    • Inbound logistics: bringing in material to make product
    • Operations: converting into final product
    • Outbound logistics: shipping out the final product
    • Marketing final product: promoting and selling final
    • Service: meetint hte customers needs
  25. The Production Era
    • Dominated by the production orientation
    • Sellers market with demand > supply
    • Focuses on most effiecent way to produce and distribue products
    • Emphasized mass production
    • Marketing played an insignificant role
    • View market as a homogenous group that will be satisfied with the basic funcion of a producet.
    • Ex: Henry Ford's Model T and Ivory Soap
  26. Production Oreientation
    • Management philosophy that emphasizes the most efficeint ways to produce and distribute products.
    • They have to take whatever is available becaues they have no other choice
  27. Sales Era
    • When product availability exceeds demand, businesses may focus on a one-time sales of goods rather that repeat business.
    • Dominated by selling orinetation
    • Move products out of warehouses to reduce inventory
    • Sell unsought goods- buy from prodding
    • Came about in great depression, after WW2
  28. Selling Orientation
    Manageraial view of marketing as a sales function, or a way to move products out of warehouses to reduce inventory
  29. Relationship Era
    • Foscued on customer orientaiton
    • Marketing becomes more important
    • Started following approach Total Quality managment (TQM)
  30. Customer Orientation
    • A managment philosophy that empahasizes satisfying customers' needs and wants
    • Created way to out do the competition
  31. TQM
    • Total Quality Managment
    • A managment philosophy that involves all employees from the assembly line onward in continuous prodcut quality imporvoment.
    • On demand- don't create the procuct till asked for
  32. Instapreneur
    A business person who only produces a product when it is ordered
  33. Triple Bottom Line Era
    • Building long-term bonds witht he customers rather thatn merely selling them stuff today.
    • Seeks to maximize:
    • Financial bottom line: financial profits to stakeholders
    • Social bottom line: Contribuint tot the communities in which the company operates
    • Greater focus on accountability- measuring jusg how much value marketing activiities create.
    • Enviornmental bottom line: creating sustainable business practies that minimaze damage tot he enviornment or that even improve it
  34. CRM
    Customer relationship managment: involves systmatically tracking consumers preferences and behaviors over time in order to tailor the value propostion as closely as possible to each individual's uniique wants and needs
  35. Social Marketing concept
    • Marketers must satisfy customers needs in ways that also benefit society and deliver profit to the firm
    • Cleaner safer environemnt
  36. Sustainability
    • meeting present needs without compromising the ability of future generations to meet their needs.
    • Cut glass that is recycled and organic cotton bedding
  37. ROI
    Return on Investment: is the direct financial impact of a firm's expenditure of resources such as time or money
  38. Marketing Plan
    A documetn that describes the amrketing enviornmnet, outlines the marketing objectives and stragegies, and identifies how the company will implement and contrl the strategies imbedded int he plan
  39. Market constomers
    • Mass Market: All possible customers in a market, regardless of the diff in their needs and wants
    • Market segment: distinct group of customers within a large market who are similar needs differ from large market
    • Market position:
  40. The 4 Ps
    • Product: design and packaging of good, features
    • Price: assignment of value, amount consumers must exchange
    • Promotion: all activiies marketers undertake to inform consumers about product
    • Place: availability of the product to the customer (supply chain- set of firms that work together to get product to consuemr)
  41. Ethics
    • Rules of conduct
    • Written standars of behavior
  42. Business Ethics
    Basic values that guide a firms behavior
  43. Consumer Bill of Rights
    • Presdient John F. Kennedy
    • Right to be safe, informed, heard, and choose freely
  44. Business Planning
    Ongoing proces of making decisions that guide the firm both in the short term and the long term
  45. Business Plan
    A plan that includes the decisions that guide the entire organization
  46. Strategic Planning
    • Managerial decision process that matches the firms resources and capabilities to it;s market opprotuniites for longterms growth
    • Top managment(CEO)
    • Define the mission, strategic plans, set SBU objectives
  47. SBU
    Strategic business units: individual units representing different areas of business within a fimr that are diffe3rent enough to each have their own mission and stuff.
  48. Functional Planning
    • AKA tactical planning
    • Plannign done by top functional-level managment such as the frim cheif marketing officer.
    • Set marketing objective, implement stratadgies, perform situational analysis
  49. Operational Planning
    • Planning done by supervisory managers
    • Sales managers, brand managers
    • Focucus on day-to-day execution fo the funcitona. plans and included detailed annual, semi, quarter plans.
    • Monitor how plan is working
  50. Situational analysis
    an assessment of a firms internal and external enviornments.
  51. Strategic Planning step 1
    1: Define Mission: A formal document that describes the fimr's overall purpose and what it hopes to achieve in terms of it's customers, products, and resources
  52. Strategice Step 2
    Evaluate the internal and external enviornments
  53. Internal Enviornment
    • Controllable elemetns inside of an organization that influence how well the firm operates
    • ex. People, physical facitlites, fincancial stabitly, corporate reputation, quality procucts, strong brands, technologies
    • human and intellectual capital
  54. External environment
    • Uncontrollable elements outside of an organization that may affect it's performance either positively or negatively
    • ex. economic, competitive, tech, legal, trends
    • Can not directly control external but can respond to them via planning
  55. SWOT analysis
    • An analysis of an organization’s strengths (S) and weaknesses (W) and the opportunities (O) and threats (T) in the external environment.
    • SWOT enables the firm to develop
    • strategies that maximize strengths and capitalize upon opportunities.
  56. Strategic step 3
    • Set organization or SBU objectives
    • Direct outgrowth of mission statement
    • What the firm hopes to accomplish with long-range business plan
    • Need to be specific, measurable, attainable, and sustainable
  57. Strategic step 4
    • Establish the business portfolio
    • Business portfolio: The group of different products or brands owned by a firm and havieng different income-generating and growth capabilities
    • Portfolio analysis: Assessing the potential of a firm's SBUs, helpps make decsions regarding which SBUs should recieve more or less of the firms resources.
  58. BCG Matrix
    • Method focuses on the potential of a firm’s existing
    • successful products to generate cash that the firm can then use to invest in new products.
    • New products are chosen for their potential to become future
    • cash generators
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  59. Stars
    • SBU's With dominant market share in High-growth markets
    • Require funding to keep up with production and promotion demands
    • Strategies seek to maximize market share in the face of increasing competition
  60. Cash Cows
    • SBU's with dominant market share in a low-growth potential market
    • Not much opportunity for new companies but well established
    • Product is well established and market share can be maintained with minimal funding
    • Firms milk cows of profits to fund growth of other products in portfolio
    • Too many can become liability due to lack of growth potential
  61. Question Marks
    • SBU's with low market shares in fast-growth markets
    • Called problem child
    • Firm has failed to compete effectively
    • Problem is investing could lead to improve market share or result in negative cash flow and failure
  62. Dogs
    • SBU's with small market share in a slow-growth market
    • Specialized products in limited markets unlikely to grow
    • May sell to smaller firms or eliminate product from market
  63. Step 5
    • Develop Growth Strategies
    • How to make the growth happen when choosing which SBUs to invest in
  64. Product-market growth matrix
    • Characterizes different growth strategies accorrding to type of market(new vs existing) and type of product (new vs existing)
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  65. Market Penetration strategy
    • Exsisting Products and Existing Markets
    • Seek to increas sales of existing product to existing markets
    • Aim to increase usage based on important new product claims
    • Offer one product in one market
    • This is very rare and hard to do
  66. Product development strategy
    • Existing markets and New Products
    • Create growth by selling new products in existing markets
    • Many products offered to existing market
    • Extending the rinms product line by delvelping new variaton sof the item or altering or imporving
  67. Market Developmnet strategy
    • New Market, Existing Products
    • Introduce exisiting products to new markets
    • Same Product no change but sells to another market
    • Could be expanding to new area, new customer segment
  68. Diversification Strategy
    • New Market, New Product
    • Emphasize both new products and new markets to achieve growth
    • New Product and new markets. so more than one of both
  69. Marketing Planning Process
    • 1) Perform a situation analysis
    • 2) Set marketing objectives
    • 3) Develop marketing strategies
    • 4) Implement marketing strategies
    • 5) Monitor and control strategies
  70. Perform a situation analysis
    • Conduct an analysis of the marketing enviornment by building a SWOT
    • Identifies how enviornmental trends affect the marketing plan
  71. Set Marketing objectives
    • Specific to the firm's branch and other marketing mix-related elements
    • States what the marketing function must accomplish if firm is to achieve it's overall business objectives
  72. Develop marketing stratagest to achieve marketing objectives
    • Make decisions about what activites they must accomplish to achieve the marketing objectives
    • Select target markets where the firms offereing are best suited
    • Make marketing mix strategies: how market will accomplish it's objectives in the firm's target market by using product, price, promotion, and place
  73. Prodcut Strategies
    Include product design, packaging, branding, support services, and product variations and features
  74. Pricing Strategies
    Include setting prices for final consumers, wholesalers, and retailers based on costs, demand, or competitor's prices
  75. Promotion strategies
    • How marketers commubnicatge a products value proposiont to the target market
    • Advertising, sales promotion, public relations, direct marketing, personal selling
  76. Distribution strategies
    How, when , and where the product is available to targeted customers
  77. Implement and Control the marketing Plan
    • Control: Measuing actual performance, comparing performance to the objectives, making adjustments
    • Marketing metrics: return on marketing investment
    • Action Plans: support plans that guide implementation and control of marketing strategies
  78. Global Marketing
    Marketing to target markets throughout the world is an imperative for almost every business.
  79. Managers must:
    • Recognize and react to international opportunities
    • Recognize and react to foreign competition via imports
    • Understand how customers and suppliers operate worldwide
  80. World Trade
    • Flow of goods and servicesa amoung different countries
    • The valuse of all the exports and imports of the world's nations
  81. Protectoinism
    A policy adoped by a gownmernt to give dometic componais an advantage
  82. Quotas
    Limitations on the amount of a prodcut allowed to enter or leave a country
  83. Embargo
    An extreme quota that prohibits specited foreign goods eompletely
  84. Tariff
    Tax on imported goods
  85. Economic communities
    Groups of countries that band together to promote trade amoung themselvs and to make it easier for member nations to compete elsewhere
  86. Economic Enviornment
    Economy: pertains to the income, expenditures, and resources that affect the cost of running a business and household.
  87. GDP
    Total dollar value of goods/services a country produces within it's borders in a year
  88. GNP
    Value of all goods and services produced by a country's citizens or organizations
  89. Per Capita GDP
    The total GDP divided by the number of people in a country
  90. Economic infrastructure
    Quatlity of a country's distribution, financial, and communications systmes
  91. Least Developed country
    • Economic base is often agriculture
    • Lowest stage of economic development
    • South Asia and Africa
  92. Developing countries
    • Economy shifts emphasis from agriculture to industry, standards of living, education, and use of technology rise
    • over 3/4 population leave in these
    • Eastearn Europe and Latin America
  93. Developed contries
    • Oftenwide range of opportunities for international marketers
    • Use the LDC and developing to do their work
    • Bountiful market potential for many goods and wervies
    • United kingdom, U.S, Cananda, France, Italy
  94. The competitive Enviornment
    Competition: refers to the alternative firms that could provide a product to satisfy a specific market's needs.
  95. Competitive Intelligence (CI)
    • The process of gathering and analyzing publicly avialable information about rivals
    • Success her means a firm learns about a competitor new products, manufactuing or managment styles
  96. Discretionary income
    The protion of income people have left over after paying for necessities such as houseing, utilites, food, and clothing
  97. Product Competition
    Competitioin amoung products to satisfy the same consumers needs/wants
  98. Brand competition
    Competition amoung brands offereing similar goods/services on the basis of brand reputaion or perceived benefits
  99. The Technological Enviornment
    Technology: the inventions or innovations from applied science or engineering
  100. Patent
    Leagal document giving inventors exclusive rights to produce/sell a particualr invention in that country
  101. Demographics
    Statistics that measue observalb easpects of a population
  102. Culture
    Set of values, ideas, and attitudes of a homogeneous group of people that are transmitted from one generation to the next
  103. Back Translation
    Where a translated word or phrase is retranslaed into the original language by a different interpreter to catch errors
  104. Physical
    • Natural resources
    • Increased cost of energy
    • Climate
    • Weather
    • Disease
  105. Bribery
    When someone voluntarily offers payment to get an illegal advantage
  106. Extortion
    When someone in authority extracts payments under duress
  107. Stratedic Alliances
    • Relationship developed betweena firm seeking a deeper commitment to a foreign market and a dometsc firm in the target country
    • Joint venture: A stragegic alliance in which a new entity owned by tow ro more fimnrs allows the aprtners to pppl their resouxces for monn9on goals
  108. Marketing Mix
    • Straight extension strategy: Market existing product in foreign market
    • Prodcut adaptation strategy: Modifies product for foreign market
    • Product invention strategy: Develops new product for foreign market
  109. Marketing Information System
    • MIS
    • The process that first determeins ehat infor markeint managers need.
    • One of the ways firms collect info
  110. Marketing intelligence System
    A method by which marketers get info about everyday happening in the marketing evniroment
  111. Marketing Research
    The process of collecting, analying, and interpereting data about consumers, competiors, and business envior to improve marketing evectivness
  112. Marketing decision support systems
    Data plus analysis and interactive software that allows managers to conduct analyses and find the information that they need
  113. Consumer behavior
    The process consumers use to select, purchase, use, and dispose of goods, services, ideas, or experiences to satisfy needs/desires
  114. Involvement
    The amount of time and effort a buyer invests in the search, evaluation, and decision process for a product
  115. Percieved Risk
    • The anxieties felt because the consumer cannot anticipate the outcomes of a purchase
    • If product is expensive or complex and hard to understand
    • Performancem, financial, physical, social, time-loss
  116. Exteneded Problem Solving
    • High level of involvment
    • High percieve risk
    • Carful processs of info
    • use insight to learn
    • Avbertinsing
  117. Habitial Decision making
    • Low level of involment
    • Low risk
    • Respon to enviornment cues
    • Behavior learning
    • Product display
  118. Step 1: Problem Recognition
    Whena conusmer sees a significant difference dbetween dcurrent state and ideal state
  119. Step 2: Information Search
    • Consumers need adequater information to make a reasonable decision
    • Consumers seach memory abnd the enviornment for info
  120. Behaviroal targeting
    Marketers deliver ads for products consumers look for by watching what they do online
  121. Step 3: Evaluation of alternatives
    A consumer idenfifies a small number of products in which he or she is interested, then narrow chocies and compares the pros/cons of each
  122. Step 4: Product Choice
    Consumers often rely on heuristics to make decisoins
  123. Heuristics
    • A mental rule of thumb used for a speedy decision like
    • Price equals quality
    • Brand loyalty
    • Country of origin
  124. Step 5: Postpurchase Evaluation
    • Consumer satifaction/dissatisfaction after purchase of product is critical.
    • Degree of satisfaction is influneced by wheather or not expectations of prodcut quality are met/exceeded
    • Cognitive dissoance is common
  125. Cognitive dissonance
    THe anxiety or regres a consumer may feel after choosing from amoung several similar attractive chioices
  126. Influences on Decision Making
    • Internal influences: perception, motivation, learning, aattitudes, personality, age groups, lifestyle
    • Situational influence: physical envrionment, time
    • Social influences: culture, subculture, social class, group memberships
  127. Perception
    Process by which we select, organize, and interpret information fromt he outside world
  128. Three factores for perception occure
    • Exposure: capable of resistering a stimulus
    • Attention: mental processing activity
    • Interpretation: assignimgn meaning to a stimulus
  129. Interpretation
    Process of assigning meaning to a stimulus bases on priaor association a person has with it and sassumption he makes aobu it
  130. Motivation
    • Internal state that drives us to satisfy needs by activation goal-oriented behvior
    • Categoraized by hierarchy of needs as being realeted to five differnt types of needs
  131. Hierarchy of Needs
    • Self-Actualization: self fulfiling and enriching experiences-travel, hobbies
    • Ego Needs: prestige, status-cars, stores, liquore
    • Belonginness: love, friendship-clothing, clubs, drinks
    • Safety: security, shelter-alarm system, retiremetn
    • Physicolgical: water, sleep food
  132. Learning
    A relatively permanent change in behavior caused by information or experience
  133. Behavioral learning
    • Classical Conditional: puts stimuli together, hot stove
    • Operant conditionaing: reward
    • Stimulus generalization: rub off on other products resembleing
  134. Cognitive learning theory
    Stresses the importance of interanl mental processes and that view people as problem solvers who actively use inofo from the world around them to master their enviormnet
  135. Observational learning
    People watch the actions of thers and notw what happens to them as a result
  136. Attitudess
    Lasting evaluations of a person, object, or issure
  137. Attitude components
    • Affect: feeling-emotional response
    • Cognition: knowing-beliefs or knowledge
    • Behaviro: doing-intential to do smoething
  138. Personality
    The set of unique psychological characteristi s that consistently influence the way a person responds to situatuions in the enviornment
  139. Family life cycle
    Related to age groups, our purchases also depend on our current position in the family life cycle
  140. Lifestlye
    A pattern of living that determins how pepole choose to spend their time, money, and energy
  141. Psychographics
    Groups conusumers accorging ot pyschological and behavioral simlilarities
  142. Situational Influneces
    • Of enviornment: decor, smeslls, lighting
    • Time is situational factor
  143. Culture
    • The values, beliefs, cusoms, and tastes produced or practiced bya gropuf of people
    • Includes key rigtuals ike weddins and funerasls
  144. Subculture
    A group within a society who share a distincite set of beliefs, characteristics or common experiences
  145. Consumerism
    • A social monment that attemps to protect consumers form harmful business practices
    • Resultid in the consumer bill oif rights
  146. Environmentalism
    • Seeks conservation and imporvement of the natureal enviorment
    • Kyoto protocol, enviromnemtn stewadship, greeen marketing, greenwashing
  147. Social Class
    • The overall rank or social standing of groups of people within a society, accoring to factofs such as family background education, occupations, andc income
    • Status symbols sucha s luxury product allow pepole tno falunt their social classes
  148. Reference Group
    • Set of people a consumer wnts to please or imitate that there for ahs an effect on an indiviuals evaluations, aspirations or behavior
    • conformigty mens that people chagne behaviro due to group pressure (bandwagen affect)
  149. Consumer sopcializtion
    The process by which people acquire the skills, knlowledge, and the attituds necisarry to function as consumers
  150. Opiniona Leaders
    People who influnece others;'s attitudes or behaviors becaue others percieve tham as possesssing expertize about the product
Card Set
MKTG Test 1