Marketing 301

Ethics and Social Responsibility in Marketing

- Balancing the Interests of Different Groups - Guidelines for ethical and socially responsible behavior can help managers balance consumer, organizational, and societal interests

Who Buys and Uses What Is Marketed?

- Both individuals and organizations Ultimate consumers - people who use the products and services purchased for a household Organizational buyers - manufacturers, wholesalers, retailers, service companies, not-for-profit organizations, and government agencies that buy products and services for their own use or for resale

Who benefits from marketing?

- Consumers who buy - Organizations that sell Society as a whole

Competitors

- Distinctions are blurred - There is a lot of competition out there

Who Markets?

- Every organization markets - Business firms involved in manufacturing and providing services, nonprofits, and individuals such as political candidates

Step 3 of the Planning Phase of the Strategic Marketing Process: Marketing Program

- The how aspect - Involves developing the program's marketing mix (the four p's) and its budget

Social reponsibility

- The idea that organizations are accountable to a larger society - The well-being of society at large should also be recognized in an organization's marketing decisions

The Marketing Program

- a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers - Can be formed into market segments - regularly homogenous groups of prospective buyers that have common needs & will respond similarly to a marketing action

Competitive

- alternative forms of competition - small businesses

Technological

- changing technology - technology's impact on customer value - technology enabled data analytics inventions or innovations from applied science or engineering research

Challenges in doing market research

- completely new product - asking personal questions - accurate remembrance and reports

Social Force

- demographic shifts - cultural changes the demographic characteristics of the population and its culture

Uncontrollable, Environmental Forces

- forces that affect a marketing decision and consist of social, economic, technological, competitive, and regulatory forces - Ex = what consumers want and need, changing technology, the state of the economy, actions of competitors, government restrictions

Regulatory

- laws protecting competition - laws affecting marketing mix actions - self-regulation

Relationship marketing

- links the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit - Involves a personal, ongoing relationship between the organization and its individual customers that begins before the sale and may evolve through different types of relationships after the sale - IT and Data Analytics help build relationships

How Do Consumers Benefit?

- marketing creates utility

Target Market

- one or more specific groups of potential consumers toward which an organization directs its marketing program - Because an organization can't satisfy all consumer needs, it must concentrate its efforts on certain needs of a specific group of potential consumers

4 stages of marketing evolution

- production era - sales era - marketing concept era - customer relationship era

Environmental forces

- social - economic - technological - competitive - regulatory

Marketing

- 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 - delivering value to customers

Customer Value Proposition

- the cluster of benefits that an organization promises customers to satisfy their needs - An effective marketing mix conveys this clearly to potential buyers

Marketing seeks to

1. Discover the needs and wants of prospective customers 2. To satisfy these needs

How Marketing Discovers and Satisfies Consumer Needs

1. Discovering Consumer Needs - Customer surveys, concept tests, other forms of marketing research, crowdsourcing websites 2. Meeting Consumer Needs with New Products (the challenge) - 3000 raw ideas to generate one commercial success - Focus on what the customer benefit is & learn from past mistakes Solution to preventing product failures is simple -> find out what consumers need and want, and produce it

Kinds of Organizations

1. For-profit organization = a privately owned organization that serves its customers to earn a profit so that it can survive 2. Nonprofit organization = a nongovernmental organization that serves its customers but does not have profit as an organizational goal; instead, its goals may be operational efficiency or client satisfaction 3. Government agency: a federal, state, county, or city unit that provides a specific service to its constituents

Steps In Segmenting and Targeting Markets:

1. Group potential buyers into segments 2. Group products to be sold into categories 3. Develop a market-product grid and estimate size of markets 4. Select target markets 5. Take marketing actions to reach target markets

4 steps to gather data that make a perceptual map possible to develop

1. Identify the important attributes for a product or brand class 2. Discover how target customers rate competing products or brands with respect to these attributes 3. Discover where the company's product or brand is on these attributes in the minds of potential customers 4. Reposition the company's product or brand in the minds of potential customers

5 steps of marketing approach

1. define the problem 2. develop the research plan 3. collect relevant information 4. develop findings 5. take marketing actions

Managing a product through its life cycle

1. modifying the product 2. modifying the market 3. repositioning the product

multi branding strategy

A company gives each product a distinct name

private branding strategy

A company manufactures products but sells them under the brand name of a wholesaler or retailer

Perceptual Maps

A means of displaying in two dimensions the location of products or brands in the minds of consumers

modifying the product

Altering one or more of a product's characteristics, such as its quality, performance, or appearance, to increase the product's value to customers and increase sales

3. A student wants to buy a smartphone so she can share pictures with her friends. An insurance claims adjuster wants to buy a smartphone to document accidents (take pictures, write a report, etc.). If they both purchase the same model smartphone, such as an Apple iPhone, which statement is most accurate? A) The adjuster is a prospective customer because the smartphone will be used for work; the student is only a secondary user since the purpose of the smartphone is just for entertainment. B) Both the adjuster and the student are potential customers because in their own way, they both benefit from the smartphone. C) Neither the adjuster nor the student is a prospective customer since the company will pay for the adjuster's smartphone and the student's parents will pay for hers. D) The student is the prospective customer since there are more students buying smartphones for personal use than there are insurance adjusters buying smartphones for business use. E) Only a person who has bought a smartphone previously is a prospective customer because only previous owners of smartphones benefit from buying new ones.

B) Both the adjuster and the student are potential customers because in their own way, they both benefit from the smartphone.

6. Which of the following statements regarding environmental scanning is the most accurate? A) Environmental scanning changes the marketing environment. B) Environmental scanning identifies and interprets potential trends. C) Environmental scanning should be done about every five years. D) Environmental scanning focuses primarily on ecological factors. E) It is too costly and there is too much information generated from environmental scanning to make it viable for small firms

B) Environmental scanning identifies and interprets potential trends.

5. Which of the following statements about strategy is most accurate? A) An organization can be all things to all people because it has access to all the resources it needs to discover and satisfy the needs and wants of its target markets. B) The marketing department helps to both set an organization's direction and move it there. C) The American Marketing Association (AMA) recently has established the definition of strategy. D) Strategy is an organization's short-term course of action designed to deliver a specific customer experience while achieving its internal standards. E) Only start-up organizations must develop strategies to help them raise capital as well as focus and direct their efforts to accomplish their goals.

B) The marketing department helps to both set an organization's direction and move it there.

10. Culture refers to the _____. A) moral and ethical beliefs of a family passed down from generation to generation. B) set of values, ideas, and attitudes that are learned and shared among the members of a group. C) pastimes associated with the fine arts, such as ballet, music, and theater. D) standard or pattern of behaviors that is typical or expected of a group. E) description of a population according to selected characteristics such as age, gender, ethnicity, income, and occupation.

B) set of values, ideas, and attitudes that are learned and shared among the members of a group.

Three value strategies

Best price Best product Best service

11. Marketing research refers to _____. A) the process of systematically collecting and analyzing information in order to define a marketing problem. B) the use of information technology to find objective solutions to a marketing problem. C) the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions. D) the use of subjective data such as interviews and observation to complement empirical data obtained through the use of information technology. E) the science of using observable human behavior in order to identify and solve marketing problems.

C) the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions.

repositioning the product

Changing the place a product occupies in a consumer's mind relative to competitive products Done by changing one or more of the four marketing mix elements

Maturity

Characterized by a slowing of total industry sales or product class revenue Marginal competitors begin to leave the market Most consumers are repeat or abandoned Sales increase at a decreasing rate

Growth

Characterized by rapid increases in sales Competitors appear Profit usually peaks because of new people trying or using the product and a growing proportion of repeat purchasers Advertising shifts emphasis to stimulating selective demand Product benefits are compared with those of competitors' offerings for the purpose of gaining market share Changes occur in the product through improved versions/new features Broaden distribution

Obtaining secondary data occurs during which step of the five-step marketing research approach? A) Define the problem. B) Develop the research plan. C) Collect relevant information. D) Develop findings. E) Take marketing actions.

Collect relevant information.

Benefits of packaging

Communication Functional Perceptual

Cross-functional teams

Consist of a small number of people from different departments who are mutually accountable to accomplish a task or a common set of performance goals

A(n) ______ is a good, service, or idea that creates value for both the organization and its customers by satisfying their needs and wants. A) organization B) business firm C) nonprofit D) offering E) industry

D) offering

7. Local (print) newspaper readership has declined significantly in recent years. Not only are traditional newspapers losing subscribers, they are also losing advertisers. To combat these trends, many newspaper publishers now offer online versions of their printed newspapers. This is most likely a response to which environmental force? A) economic, since few can afford a newspaper today B) competitive, resulting from new, smaller local newspapers that are flourishing C) technological, since high-speed printing presses have become easier to use D) social, resulting from changing consumer preferences for information delivered online E) regulatory, since the government provides tax incentives for paper-based products

D) social, resulting from changing consumer preferences for information delivered online

2. Mizuno designs and sells high quality baseball gloves. Who benefits from the firm's marketing activities for its gloves? A) a baseball or softball player who purchases a new Mizuno glove B) the Dick's Sporting Goods salesperson who sells a customer a Mizuno glove C) the supplier who provided the leather to Mizuno D) the shareholder of Mizuno that designs and manufactures the gloves E) All stakeholders should benefit from Mizuno's marketing efforts, even society at large.

E) All stakeholders should benefit from Mizuno's marketing efforts, even society at large.

12. The last step in the marketing research process is _____. A) Take marketing actions. B) Define the problem. C) Develop the research plan. D) Collect relevant information. E) Develop findings.

E) Develop findings.

8. Pending federal legislation will require all online retailers to collect state sales taxes from customers. This would affect online sellers such as Virtual Vineyards, which now collects state sales taxes only from customers who reside in California, its home state. This pending legislation would be an example of which environmental force? A) social B) economic C) technological D) competitive E) regulatory

E) regulatory

1. Marketing refers to ______. A) the production of products or services that will generate the highest return on investment. B) the strategies used in the advertising and promotion of products and services to customers around the globe. C) the process of identifying target market segments for a product or service and using selling tactics to reach them. D) the activity involved in getting a product or service from the manufacturer to ultimate consumers and organizational buyers. E) 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

E) 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

Demographics refer to _____. A) the depiction of a population according to its core values or cultural beliefs and their rate of change. B) an objective measurement of a person's likelihood to purchase a product or service. C) the psychological profile of prospective consumers. D) the density of a population in a geographic area. E) the description of a population according to selected characteristics such as age, gender, ethnicity, income, and occupation.

E) the description of a population according to selected characteristics such as age, gender, ethnicity, income, and occupation.

Functional level

Each strategic business unit has a functional level, where groups of specialists actually create value for the organization - referred to as marketing and finance - at the functional level, the organizations strategic direction becomes its most specific and focused

Multiple Products and Multiple Market Segments:

Effective if it meets customers' needs better, doesn't reduce quality or increase price, and adds to sales revenues and profits Huge potential downside: raise prices and reduce quality

Four different utilities

Form - production of product or service Place - having the offering available where consumers need it Time - having it available when needed Possession - the value of making an item easy to purchase

Customers

Guarantees, commitment to customers and product qualities through unconditional words

The four "I" of service

Intangibility - Can't be held, touched, or seen before the purchase decision Inconsistency - Because services depend on the people who provide them, their quality varies with each person's capabilities and day-to-day job performance Inseparability - The consumer cannot separate the deliverer of the service from the service itself Inventory - Carrying costs are more subjective and related to idle production capacity When the service provider is available but there is no demand for the service

Segmentation

Linking Needs to Actions

Develop a Market-Product Grid and Estimate the Size of Markets

Market-product grid = framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization Size estimates are helpful in determining which target market segments to select and which product groupings to offer

At what point do we want government and society to step in to protect consumers?

No central answer, which is why there are legal and ethical issues central to marketing

The Four Ps

Product - a good, service, or idea to satisfy the consumer's needs Price - what is exchanged for the product Promotion - a means of communication between the seller and buyer Place - a means of getting the product to the consumer

What is Marketed?

Products - tangible and intangible attributes that satisfy customer needs in exchange for money or something else of value 1. goods = physical objects 2. services = intangible objects 3. ideas = thoughts about concepts, actions, or causes

Decline

Sales drop Usually due to environmental changes Leads to: Deletion: dropping the product from the company's product line Harvesting: retaining the product but reducing marketing costs

Different properties of products

Search - Color, size, style Experience - Discerned only after purchase or during consumption Credence - Characteristics that the consumer may find impossible to evaluate even after purchase and consumption

Why Segment Markets?

So a firm can respond more effectively to the wants of groups of potential buyers and thus increase its sales and profits

Competencies

Special capabilities that distinguish an organization from others and provide customer value

Segments of One: Mass Customization

Tailoring products or services to the tastes of individual customers on a high-volume scale

service in the future

There are environmental forces and trends that can influence the makeup of a service, and consumer expectations about services: Technological New data and information Sustainability and "green" businesses

modifying the market

Trying to find new customers, increase a product's use among existing customers, or create new use situations

What is Needed for Marketing to Occur

Two or more parties with unsatisfied needs Desire and ability to satisfy these needs A way for the parties to communicate Something to exchange

Select Target Markets

Use the following criteria - Market size - Expected growth - Competitive position - Cost of reaching the system - Compatibility with the organization's objectives and resources

Introduction

When a product is introduced to its intended target market Sales grow slowly, profit is minimal as a result of large investment costs in product development Goal to create consumer awareness and stimulate trial

One Product and Multiple Market Segments

When an organization produces only a single product or service and attempts to sell it to two or more market segments, it avoids the extra costs of developing and producing additional versions of the product

Trade name

a commercial, legal name under which a company does business

Market-Product Grid

a framework to relate the market segments of potential buyers to products offered or potential marketing actions

Organization

a legal entity that consists of people who share a common mission that motivates them to develop offerings that create value for both the organization and its consumers by satisfying their needs and wants

The diverse elements influencing marketing actions

a marketing department relates to many people, organizations, and forces

Wants

a need that is shaped by a person's knowledge, culture, and personality Effective marketing can clearly shape a person's wants

Brand personality

a set of human characteristics associated with a brand name

warranty

a statement indicating the liability of the manufacturer for product deficiencies Important for liability claims, evaluations, etc.

Secondary data

acts and figures that have already been recorded prior to the project at hand

Market Segmentation

aggregating prospective buyers into groups, or segments, that have common needs & will respond similarly to a marketing action

Mission

an inspirational statement of an organization's function in society that often identifies its customers, markets, products, and technologies (use core values to create)

label

an integral part of the package and typically identifies the product or brand, who made it, where and when it was made, how it is to be used

Branding

an organization uses a name, phrase, design, symbols, or combination of these to identify its products and distinguish them from those of competitors

Strategy

an organization's long term course of action designed to deliver a unique customer experience while achieving its goals

packaging

any container in which a product is offered for sale and on which label information is conveyed

Gap analysis

compares differences between the consumer's expectations and experience with a service based on dimensions of service quality

Head-to-head positioning

competing directly with competitors on similar product attributes in the same target market

Business

describes the clear, broad, underlying industry or market sector of an organization's offering

Research that involves trying to find the frequency with which something occurs or the extent of a relationship between two factors is referred to as _____. A) virtual research. B) interactive research. C) causal research. D) descriptive research. E) exploratory research.

descriptive research.

Casual Research

determines the extent to which the change in one factor changes another one

Deletion

dropping the product from the company's product line

relationship marketing

establishing long-term, mutually satisfying buyer-seller relationships

Primary data

facts and figures that are newly collected for the project

Take Marketing Actions to Reach Target Markets

fifth step in segmenting and targeting markets; the purpose of segmenting a market and then selecting target segments is to trigger marketing actions to increase sales and profits (this means that someone must develop an action plan)

Customer relationship era

firms continuously seek to satisfy the high expectations of customers; era we are in today

Group Potential Buyers into Segments

first step in segmenting and targeting markets; involves meeting some specific criteria that answer the question: would segmentation be worth doing and is it possible?

Market Orientation

focuses its efforts on continuously collecting information about customers' needs, sharing this information across departments, and using it to create customer value

Trademark

identifies that a firm has legally registered its brand name or trade name so the firm has its exclusive use, thereby preventing others from using it

services

intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value

product differentiation

involves a firm using different marketing mix actions, such as product features and advertising, to help consumers perceive the product as being different and better than competing products

Key role of marketing department

look outward by listening to customers, developing offerings, implementing marketing program actions, and then evaluating whether those actions are achieving the organization's goals

Economic

macroeconomic conditions, consumer income the income, expenditures, and resources that affect the cost of running a business and household

Sales era

manufacturers found they could produce more goods than buyers could consume; competition grew; firms hired more salespeople to find new buyers

The marketing concept era

marketing became the motivating force among many american firms

Needs

occurs when a person feels deprived of basic necessities such as food, clothing, and water

Market

people with both the desire and ability to buy a specific offering; made up of potential consumers

The two main types of data are _____. A) independent and dependent. B) primary and secondary. C) comprehension and case specific. D) extraneous and experimental. E) measurable and non-measurable.

primary and secondary.

7 P's of Service Marketing

product, price, place, promotion, people, physical environment, process

Exploratory Research

provides ideas about a vague problem or question

The service continuum

range of product-dominant to service-dominant offerings

marketing department

responsible for facilitating relationships, partnerships, and alliances with the organization's customers, its' shareholders, its suppliers, and other organizations

Harvesting

retaining the product but reducing marketing costs

Production era

scare goods; buyers were willing to accept virtually any goods that were available and make do with them

Group Products to Be Sold into Categories

second step in segmenting and targeting markets; a firm's products must be grouped into meaningful categories so that customers can relate to them; the reason supermarkets and department stores are organized into product groups with departments or aisle containing related merchandise; products are grouped by judgment, the qualitative aspect of marketing

Differentiation positioning

seeking a less-competitive, smaller market niche in which to locate a brand

Brand Equity

the added value a brand name gives to a product beyond the functional benefits provided

Marketing Mix

the controllable factors that can be used to solve a marketing problem

Core Values

the fundamental, passionate, and enduring principles that guide an organization's conduct over time

Marketing concept

the idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organization's goals

customer experience

the internal response that customers have to all aspects of an organization and its offering

Product positioning

the place a product occupies in consumers' minds based on important attributes relative to competitive products

Marketing research

the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions

Customer Relationship Management (CRM)

the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace and become advocates after their purchase

Constraints

the restrictions placed on potential solutions to a problem

Charting the Product Life Cycle

the stages a new product goes through in the marketplace

Exchange

the trade of things of value between a buyer and a seller so that each is better off after the trade

Customer value

the unique combination of benefits received by targeted buyers that includes quantity, convenience, on-time delivery, and both before-sale and after-sale service at a specific price

Societal marketing concept

the view that organizations should satisfy the needs of consumers in a way that provides for society's well-being

Descriptive research

trying to find the frequency with which something occurs or the extent of a relationship between two factors