BUS 100 12-16

The activity, set of institutions, and processes for creating, communicating, delievering, and exchanging offerings that have value for customers, clients, partners, and society at large.

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

A combination of purchase frequency, average value of purchases, and brand-switching patterns over the entire span of a customer's relationship with a company.

• Form utility: Created by converting production inputs into finished products.
• Place utility: Created by making a product available at a location where customers wish to purchase it.
• Time utility: Created by making a product available when customers wish to purchase it.
• Possession utility: Created by transferring title or ownership of a product to a buyer.

A business philosophy that a firm should provide goods and services that satisfy customers' needs through a coordinated set of activities that allows the firm to achieve its objectives.

Sales Orientation

A group of individuals or organizations, or both, that need products in a given category and that have the ability, willingness, and authority to purchase such products.

A combination of product, price, distribution, and promotion developed to satisfy a particular target market.

A group of individuals, organizations, or both, for which a firm develops and maintains a marketing mix suitable for the specific needs and preferences of that group.

Demographic, psychographic, geographic, behavioristic

Economic forces, political forces, legal and regulatory forces, technological forces, socio-cultural forces, competitive forces.

Recognize problem, search for information, evalulate alternatives, purchase, evaluate after purchase.

• Personal income: Income an individual recieves from all sources less the social secuirity taxes the individual must pay
• Disposable income: Personal income less all additional personal taxes.
• Discretionary income: Disposable income + expenditure on food, clothing and housing.

A product purchased to satisfy personal and family needs

A product bought for resale, for making other products, or for use in a firm's operations.

• Convenience product: Inexpensive, frequently purchased item for buyers exert minimum effort.
• Shopping product: buyers willing to expend considerable effort on planning to make the buy.
• Specialty product: item that posseses one or more unique (group) or buyers consider significant money to spend.

Raw material, major equipment, accessory equipment, component part, process material, supply, business service.

• Introduction- Customer awareness and acceptance are low
• Growth- Sales increase rapidly as the product becomes well known
• Maturity- Sales are still increasing but at a slower rate; later in this stage, sale and profits begin to slowly decline.
• Decline stage-Sales volume decreases sharply and profits continue to fall.

• All products firm offers for sale
• Width: the number of product lines the mix contains.
• Depth: average number of individual products within each line.

The process of changing one or more of a product's characteristics such as quality, function, aesthetics.

Idea generation, screening, concept testing, business analysis, product development, testing market, comercialazion.

• Brand name:Part of a brand that can be spoken
• Brand mark: Symbol of brand
• Trademark: registred by U.S. patent
• Trade name: Complete and legal name of an organization.

• Brand loyalty: extent to which customer is favorable toward buying a specific brand.
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The number of units that must be sold for total revenue(from all units sold) to equal the total cost(of all units sold)

• Psychological Pricing: Odd-number pricing, multiple-unit pricing, reference prices, bundle prices, everyday low prices, customary price
• Promo Pricing: Price leader, special-event pricing, comparison discounting.

• A marketing organization that links a producer and user within a marketing channel.
• middle man (same term as pack)

• Producer to consumer(direct)
• Producer to retailer to consumer
• Product to wholesaler to retailer to consumer
• Producer to agent to wholesaler to retailer to consumer
• Producer to business user

• Intensive: Use of all available outlets for product to saturate the market
• Selective: use of only a portion of the available outlets for a product in each geographic location
• Exclusive: use of only a single retail outlet for a product in a larger geographic area.

• Retailers:Buy in large quantities/sell in smaller quantities
• Deliver goods
• Stock a variety of goods in one place
• promote product for retailer
• Market info.
• Manufacturers:Provide instant sales forces to makers
• reduce makers inventory costs by buying finished goods in sizable quantities
• assume credit risks

• Department store: a retail store, family apparel, furnishing appliances.
• Discount store: A self-service, general merchandise; lower prices
• Convenience store: small food store sells a limited variety extraopen hours
• Category Killer: Large specialty store concentrates on single product line and competes on basis of low prices and availabilty.

• Neighborhood: Several small convenience and specialty stores
• Community: includes one or two department stores and some specialty stores, along with convenience stores
• Regional: Large department stores, numerous specialty stores, movies, sometimes hotels.

• Stock-out costs: the costs of sales lost when items are not in inventory when needed.
• Holding costs: costs of storing products until they are purchased or shipped to customers.

• Inventory management: managing inventories in way to minimize inventory costs, including both stocking and holding cost.
• Order proccessing: activities involved in recieving and filling bought orders
• Warehousing: Set of activities involved in recieving and prepping goods for reshippment.
• Materials handling: physical handling of goods
• Transportation: shipment of products to customer.

• Common: for hire to all shippers
• Contract: for hire by one or several shippers;not available to general public
• Private: owned and operated by shipper

• Promotion: Commonly the object of two misconceptions. make up entire field of marketing, unnecessary and cause higher prices.
• Promotion mix: combination of promotion methods a firm uses to reach a target market.

A paid non-personal message communicated to a select audience through a mass medium.

Personal communication aimed at informing customers and persuading them to buy a firm's products.

use of activities or materials as direct inducements to customers or salespersons

Communication activities used to create and maintain favorable relationsbetween an organization and various public groups, both internal and external.

• Primary-demand: used to increase demand for all brands of a product in a specific industry.
• Institutional: Designed to enhance a firm's image or build its reputation.
• Selective-demand: used to sell particular brand, most common.

• identify, analyze target audience
• define advertising objectives
• create advertising platform
• develop media plan
• create advertising message
• execute campaign
• evaluate effectiveness

when amount of available information is high, managers tend to make better decisions. on the other hand when info is too low there is a high risk of a poor desicion.

• based on situational experience provide guidance in handling similar circumstances
• business research continuously looks for new rules since business conditions are always changing.