GB 350 Essentials of Marketing Cascio FINAL

Culture

"the collective programming of the mind distinguishing the members of one group or category of people from others"

Obstacles facing societal orientation

- Justifying premium prices - Meeting customer performance expectations

Why study marketing?

- Marketing Affects You Every Day! - Important to Business - Important to Society - Good Career Opportunities

Market orientation builds relationships through:

- customer oriented personnel - effective training programs - Employees with the authority to make decisions and solve problems - Teamwork

Ethics Questions

-Can I rationally will that everyone act as I propose to act? -Does my action respect the goals of human beings rather than merely using them for my own purposes?

Modes of Social Control

-Ethics - moral principles/values that generally govern the conduct of an individual or group; the standard against which behavior is judged -Law - established rules for acceptable behavior that are enforced by governmental authorities -Formal/informal groups - businesses/families, professional associations -Self-regulation - voluntary efforts not required by law -Media - informs society of good and bad happenings -Active consumers - informed and engaged individuals that influence organizational and individual behavior

Factors influencing tendencies to behave unethically:

-Extent of ethical problems within the organization -Top management's actions on ethics -Potential magnitude of the consequences -Number of people to be affected -Social consensus -Probability of a harmful outcome

Motivations for self-regulation

-Foster consumer trust & confidence -Avoid future legal intervention

Cultural factors to consider:

-Language/slang -Customs and traditions -Expectations for appropriate behavior in business interactions

Demographics to consider:

-Population growth -Population density -Age trends -Household income -Household status (e.g., single, married, children) -Gender

Foreign Corrupt Practices Act (FCPA)

-Prohibits U.S. corporations from making illegal payments to public officials of foreign governments -Beyond money, and includes "items of value" -Applies to foreign subsidiaries of U.S. companies -Has been criticized for putting U.S. businesses at a competitive disadvantage (but is largely well-received)

global vision (Start of module 2)

-Recognizing and reacting to international marketing opportunities -Using effective global marketing strategies -Being aware of threats from foreign competitors in all markets

shared value

-When organizational operations benefit society and the bottom line -Based on the belief that business and social stakes are increasingly intertwined

Masculinity vs. Femininity

-extent to which members prioritize achievement, assertiveness, and material rewards for success (vs. cooperation, caring for the weak, and quality of life

Indulgence vs. Restraint

-extent to which members value need gratification

Target Market Strategy

-undifferentiated: appeal to the entire market with one marketing mix -niche/concentrated: concentrate on one marketing segment -differentiated/multi-segment: appeal to multiple market segments with multiple marketing mixes

Characteristics of SBU's

1. A distinct mission and specific target market 2. Control over its resources 3. Its own competitors 4. A single business or a collection of related businesses 5. Plans independent of other SBUs

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

Product lines

A group of products that are very similar - equivalent quality - advertising economies - standardized components - efficient sales and distribution −Product line extension: adding product items to an existing product line −Product line contraction: removing product items from an existing product line

market development

Attract new customers to existing products

Baldrige Performance Excellence Framework

Award Focuses on a Total Business Perspective

Marketing function

Balances equally important goals through long-term, mutually rewarding relationships with customers

Embargo

Ban on product/service trade activity with another country

Three bureaus operated by FTC

Bureau of Competition -Reviews mergers and acquisitions -Challenges anti-competitive conduct and promotes competition -Provides information and holds conferences and workshops on competition issues Bureau of Economics -Provides economic analysis and support to antitrust and consumer protection investigations Bureau of Consumer Protection -Enforces federal laws that protect consumers -Empowers consumers with information -Communicates with consumers

Regulatory bodies charged with ensuring legal marketing tactics

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 Communications Commission -Regulates interstate and international communications by radio, wire, television, satellite, and cable Federal Trade Commission (FTC) -Prevents persons or corporations from using unfair methods of competition in commerce

Cause-Related Marketing (CRM)

Cooperative marketing efforts between a for-profit firm and a non-profit organization Benefits: -For-profit gets image boost -Non-profit gets awareness & resources

Ethics

Ethics (as compared with morals) -Situation-specific & time-oriented -Should be expressed and available to all organizational members

product

Everything, both favorable and unfavorable, that a person receives in an exchange −Tangible goods −Services −Ideas

Benefit (B) Corporations

For-profit entities seeking a mission to balance economic goals with environmental and/or social goals

Evaluation and Control

Gauges the extent to which the marketing objectives have been achieved during the specified time period

code of ethics

Guideline to help marketing managers and other employees make better decisions -Helps employees identify acceptable business practices -Helps control behavior internally -Avoids confusion in decision making -Facilitates discussion among employees about right and wrong

convenience purchase

Inexpensive items that merit little shopping effort

Market Orientation

LONG TERM Satisfying customer wants and needs while meeting organizational objectives - What do customers want and need? - Aims at specific groups of people - Recognize that promotion decisions are only one of four basic marketing mix decisions that must be made

Societal Orientation

LONG TERM satisfying customer needs and wants while enhancing individual and societal well-being - What do customers want/need, and how can we benefit society?

The FTC has identified the following norms for the ethical use of consumer information:

Notice Consent Access Security Enforcement

Specialty purchase

Particular items for which consumers search extensively and are reluctant to accept substitutes

Institutional Theory

Posits that people and organizations exist within larger institutional environments with taken-for-granted social, cultural, and symbolic meaning systems that define their social reality

Unsought purchase

Products (a) unknown to the potential buyer or (b) known products that the buyer does not actively seek

shopping purchase

Require comparison shopping

Marketing Management Philosophy:Production Orientation (Philosophy)

SHORT TERM Internal Capabilities of the firm. does not consider whether the goods and services that a firm produces most efficiently meet the needs of the marketplace. -Weak competition -Demand exceeds supply -What can we make or do best?

Sales Orientation

SHORT TERM the belief that people will buy more goods and services if AGGRESSIVE SALES techniques are used and that high sales result in high profits - How can we sell more aggressively with promotional tactics? - Targets products at everybody or the average customer - Seek to generate sales volume through intensive promotional activities

Mission Statement

The declaration of an organization's overall purpose. It forms the foundation for setting the objectives of a business.

captive brand

a brand manufactured by a third party for an exclusive retailer, without evidence of that retailer's affiliation

Problem Child/Question Mark(BCG Matrix)

a business unit that shows rapid growth but poor profit margins -Low market share -High growth -Invest heavily to gain market share -Acquire competitors -Or drop SBU

Corporate Social Responsibility

a business's concern for society's welfare

Dog (BCG Matrix)

a company with a small share of a slow-growing market -Low market share -Low growth -Usually divest or harvest

Customer realtionship management (CRM)

a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups CRM Accomplished by: -organizing the company around customer segments -tracking customer interactions -Fostering customer satisfying behavior -linking all processes of the company from its customer through its suppliers

consumer product

a product bought to satisfy an individual's personal wants

business product

a product used to manufacture other goods or services, to facilitate an organization's operations, or to resell to other customers

competitive advantage

a set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition

Product items

a specific version of a product that can be designated as a distinct offering among an organization's products -Product modification -Product repositioning

Marketing Objective

a statement of what is to be accomplished through marketing activities -realistic -measurable -time specific -compared to a benchmark

Diversification

a strategy of increasing sales by introducing new products into new markets

Strategic Business Unit (SBU)

a subgroup of a single business or collection of related businesses within the larger organization

product mixes

all products that an organization sells -Add product line -Remove product line

Boston Consulting Group Matrix

an analysis method of a firm's product portfolio regarding its market share and market growth

social control

any means used to maintain behavioral norms and regulate conflict

Touchpoints

any point of interaction between the potential/current customer and the organization

Sustainability theory

businesses that engage in socially responsible business practices tend to outperform their competitors

customer satisfaction

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

Marketing Myopia

defining a business in terms of goods and services rather than in terms of the benefits customers seek

on-demand marketing

delivering relevant experiences, integrated across both physical and virtual environments, throughout the consumer's decision and buying process

product development

develop new offerings to create value for existing customers

Balance of trade

exports - imports

Power Distance Index

extent to which less powerful members of a society accept and expect that power is to be distributed unequally

Individualism vs. Collectivism

extent to which member feel responsibility to themselves and immediate families (vs. others in the group)

long-term orientation

extent to which members value adapting to current changes in the environment to prepare for the future

Uncertainty Avoidance Index

extent to which members want to maintain control over future events (even if they cannot)

Multinationals

firms that engage in international trade beyond exporting and importing

Cash Cows (BCG Matrix)

generates more cash than it needs to maintain its market share -high market share -low growth -allocate excess cash to high growth products/price leader -hold and leave alone

SWOT analysis

identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T)

Star (BCG Matrix)

in the portfolio matrix, a business unit that is a fast-growing market leader -high market share -high growth -reinvest earnings into product improvement

market penetration

increase market share of existing offerings among existing customers

Ansoff's Opportunity Matrix

market penetration, market development, product development, diversification

Tariff Rate Quota

maximum number of products that can be imported at a reduced tariff

Absolute Quota

maximum number of products that can be imported in a given time period

transformational innovations

new products that disrupt the way we do things - roomba cleaning robot - covid vaccines

niche advantage

organization effectively serves a small, specialized, customer segment and competition either can't or doesn't see the value in entering

cost advantage

organization is efficient enough to offer low prices for quality products and still earn high profit margins

Morals

rules as to what is good or bad; developed as a result of cultural values and norms -Considered a foundation of ethical behavior -Enduring across situations

Tariff

tax on particular class of product or service to protect domestic competition

Marketing (AMA) (Start of Module 1)

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

customer experience

the impression you leave with your customer, resulting in how they think of your brand, across every stage of the customer journey. Multiple touchpoints factor into the customer experience, and these touchpoints occur on a cross-functional basis

company culture

the invisible set of rules which guides behavior inside a company and therefore its the foundation which business results rest on

adjacent innovations

the marketer develops a value proposition in a market that is not a far stretch from where it has traditionally competed

core innovations

the marketer works with its existing products to enhance the appeal to its existing market of customers. This can include product reformulations, enhancements, extensions, and other easily recognizable versions of the existing value proposition.

product line depth

the number of product items in a product line

product mix width

the number of product lines an organization offers

Strategic Planning

the process of developing and maintaining a strategic fit between the organization's objectives and resources and its changing marketing opportunities - What is the organizations main activity at a particular time? -How will the organization facilitate mutually beneficial exchanges?

Implementation

the process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan's objectives -establishing timelines -establishing budgets -gaining acceptance from those involved

Customer Value

the relationship between benefits and the sacrifice necessary to obtain those benefits

Gross Domestic Product (GDP)

the total market value of all final goods and services produced in a country for a given period

Exchange rate

the value of one nation's currency expressed in terms of another nation's currency

Marketing Plan

to achieve SUSTAINABLE competitive advantage which cannot be copied by competition

product/service differentiation

value offering is superior to what competitors provide, usually (but not always) at a premium price

Ethnocentrism

viewing outside others and their cultural traditions through the lens of our own culture