Marketing 301 Study Guide

Firms develop products and services with the understanding that their ultimate goal is to ______ their customers' needs.

satisfy

1950s and 1960s

saw an upswing in prosecutions of anti-trust cases.

Organizational buyers ______.

sometimes purchase with the intent of reselling Form: The production of the good service Place: Having the product available where consumers need it Time: Having the product available when needed Possession: Making an item easy to purchase Production era: Buyers accept virtuality any goods because of the relative scarcity of goods Sales Era: Manufacturing can produce a surplus of goods and must find new buyers Marketing concept era: organization should satisfy the needs of consumers while also achieving the organizations goals Customer relationship relationship era: Firm needs constinously to satisfy the high expectations of those they serve.

When marketers _____, they take into account the fact that customers are different, customers change, competitors change and react, and organizational resources are limited.

. Enter into the strategic marketing process

Public Policy & Marketing

1. Legislation 2. Agency/Administration 3. Court Decisions 4. Treaties 5. Political Dialogs

Current Issues:

1. Mergers 2. Consumer Safety 3. E-Commerce 4. New Anti-Chain

Broad "eras" (4) of marketing (Evolution of Marketing in the U.S. and a brief history of the 4 eras.

1. Production: 1850-1930 Productions problems (industrial revolution era) till the end World War One. 2. Sales era: 1920-1962 Selling what they had made, sales were aggressive. 3. Marketing Concept era: 1959-1999 Companies needed to find out first what consumers wanted before producing. 4. Market orientation: era 1980-present Marketing control, but a more modern term is Relationship Marketing.

Which of the following factors is not required for marketing to occur?

A retail location

What are the four benefits received by buyers that help to create customer value.

Before-sale and after-sale service Quality Convenience On-time delivery

Which two techniques aid in decisions about where an organization wants to go?

Business portfolio analysis Diversification analysis

A cluster of benefits that an organization promises customers (or segments) to satisfy their needs is a ______.

Customer value proposition

Obtaining resources and defining tasks and deadlines are part of which phase in the strategic marketing process?

Implementation

An effective customer value proposition meets which three criteria?

It details points of difference. It is relevant. It details specific benefits in clear terms.

Monopolies

Lastly, monopolies were once again the targets of regulators in the 1990s up until today. Protecting competition was the focus, but the bad actors were now companies like Microsoft instead of steel companies and oil companies in the late 1800s.

The essence of marketing is that firms gain ________ customers by providing ________ value.

Loyal; unique

Select the four principles that underlie the strategic marketing process.

Organizational resources are limited. Customers are different. Customers change. Competitors change and react.

Performing a SWOT analysis, setting market and product goals, and developing a marketing program are all steps in the ________ phase of the strategic marketing process.

Planning

The ________ is the difference between the projection of the path to reach a new sales revenue goal and the projection of the path of a plan already in place.

Planning gap

In ______ analysis, management evaluates the firm's various products and businesses, and then allocates resources according to the organization's best growth opportunities.

Portfolio

Of the P's, _____ is whatever the buyer gives up in exchange for the product, like money, time, or energy.

Price

Which element of the marketing mix aims to create value for consumers by providing features and benefits to satisfy those consumers' needs?

Product

4 P's of Marketing

Product, Price, Place, Promotion

Deregulation Movement

The "deregulation" movement is often attributed to President Reagan in the 1980s but it actually started in the 1970s and was discussed earlier than that. The idea was to let firms compete and have the government get out of the way. The main 3 industries targeted were: transportation, telecommunication and financial services. Some results of deregulation were positive (service innovations, cheaper shipping rates) but many bankruptcies and mergers also resulted.

1970

The 1970s was an era protecting consumers, not competition and not certain businesses. The movement actually dates back to around 1900 with attempts to regulate the meat packing industry and the 1930s with attempts to regulate pharmaceuticals.

Definitions of Marketing pg 51

The American Marketing Association represents individuals and organizations involved in the development and practice of marketing worldwide. It defines marketing as 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.7 This definition shows that marketing is far more than simply advertising or personal selling. It stresses the need to deliver genuine value in the offerings of goods, services, and ideas marketed to customers. Also, notice that an organization's marketing activities should also create value for its partners and for society. What a Market Is Potential consumers make up a market, which is people with both the desire and the ability to buy a specific offering. All markets ultimately are people. Even when we say a firm bought a Xerox copier, we mean one or several people in the firm decided to buy it. People who are aware of their unmet needs may have the desire to buy the product, but that alone isn't sufficient. People must also have the ability to buy, such as the authority, time, and money. People may even "buy" an idea that results in an action, such as having their blood pressure checked annually or switching to a reusable water bottle.

Public Policy and Marketing Chapter 3

The definition of public policy and marketing is how marketing interacts with all levels of government.

Developing the marketing mix and its budget are part of which step in the planning phase of the strategic marketing process?

The marketing program

What is the final step in the planning phase of the strategic marketing process?

The marketing program

Court Decisions:

The ones from the Supreme Court but there are important lower courts decisions too. Most cases are done at lower cases only the most prominent cases make it to the Supreme Court.

The view that an organization should discover and satisfy the needs of its consumers in a way that also provides for society's well-being is called ______.

The societal marketing concept

An organization uses ______ to allocate its marketing mix resources to reach its target markets.

The strategic marketing process

Famous management professor Peter Drucker referred to marketing as:

The wholes business, seen from "the customers point view" the whole business seen from the customers point of view".

Myopia: Definition and current examples

This is about "Marketing Myopia." Myopia is an eye disease, roughly meaning to lose focus. In marketing, it refers to losing focus on your customers. "Marketing Myopia" is the title of a 1960 article by Theodore Levitt. It is probably the most prominent marketing article ever published.

Which statement supports the idea that good marketing is not an easy task?

Thousands of products fail in the marketplace each year.

The planning gap is an example of ______.

a comparison of projected sales for current plans and a new sales goal

A marketing plan is a road map for marketing actions for ______.

a future time period

For marketing to occur, parties involved in the transaction must have which two things?

a way to communicate Both the desire and ability to satisfy their needs.

A strategy can be defined as ______.

an organizations long term course of action allowing it to achieve its goals

Customer value reflects the relationship of a combination of ________ relative to a specific price, or what the customer gets for what she gives

benefits

The clear, broad, underlying industry category or market sector of an organization's offering defines its ______

business

The process of identifying prospective buyers, understanding them intimately, and developing favorable long-term favorable perceptions of the organization is called

customer relationship management

The unique combination of benefits received by targeted buyers at a specific price is known as ______.

customer value

The functional level is made up of ________, which provide specific and focused strategic direction.

departments

An organization's core values are best described as the

enduring principles that guide its conduct over time

To what does "opportunity" refer in SWOT analysis?

favorable aspects of the external environment

To what does "strength" refer in SWOT analysis?

favorable internal attributes of a firm

An organization's core values, mission, and culture will establish its philosophical reason for being, or its

foundation

At the ________ level, an organization's strategic direction becomes its most specific and focused.

functional

The lowest of the three organizational levels is the _______ level.

functional

Sam Walton:

had some famous quotes: The idea in the marketing Concept is to focus on the customer.

A marketing program is a plan that ______.

integrates the marketing mix to provide a good, service, or idea to prospective buyers

In a SWOT analysis, strengths and weaknesses are ________, and opportunities and threats are ________.

internal;external

FCC (Federal Communications Commission)

is important to marketers since they oversee the communications systems, including television and the internet. They were involved in the "net neutrality" debate recently. The head of the FCC is a political appointee, so their involvement varies with the political landscape. - Most agriculture and transportation are involved with legislation and research areas.

The essence of successful marketing is that firms provide unique value in order to gain

loyal Customers

_________ is the activity for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

marketing

A ______ is a visual display of the essential information related to achieving a marketing objective.

marketing dashboard

Product, price, promotion, and place are elements that make up the ______.

marketing mix

To better understand the needs of prospective customers, marketers use ____.

marketing research

(n) ______ is a legal entity that consists of people who share a common mission.

organization

Step 1 of the planning phase in the strategic marketing process involves ______.

performing a situation analysis using SWOT

The business orientations typical of organizations have evolved over time; in the early years of the United States, a ________ orientation that focused on creation of any type of good was common, while today firms often have a ________ orientation in which they seek to satisfy the high expectations of customers.

production, market

History of Marketing in the U.S

- 20 million people live in the country and they were clustered in the Northeast cities - Transportation was by rail, water and bycicle. - Macys first store was in Boston -Direct mail and franchising appeared after the Civil War. -First franchising was soft drinks in 1890 -first marketing academics and marketing courses date from about 1900. - agricultural economists from the Midwest were the first marketing academics - New York city focused on retailing - 1925-1930 development of grocery markets - Strip mall or small shopping area, "anchored by something called supermarket - other development refrigerators, freezers coolers -Print and radio more advertisement after World War One. - Transportation improved by 1925 - After World War Two - two major developments: Television, - Regional Malls big postwar development

1960 featured:

- Managerial Marketing - the notion of the 4 Ps was introduced - Social marketing became more prominent in the 1970s

1980

- an interest of services marketing - in 1980 a text like ours would not have had a chapter on the topic.

2000

- social media became prominent - Relationship marketing became a popular topic. - final era - the whole premise is that you sell the relationship not the product. - more profitable maybe 5-7 times more

1990

- the commercial internet took off

Misconceptions of Marketing:

-30% of adults have a college degree in the U.S -mostly people are ignorant about marketing. -They get their impressions from the media or their life experiences. - a more naive view of marketing is that is just applied psychology. - Marketing is not Mathematical Marketing = Advertising •Marketing = Sales• Marketing = Retailing •Not Mathematical

1800s

-In the late 1800's governments started regulating business in earnest. The bad actors of the time were oil companies, railroads, and steel companies. -legislation laws started appeared to prevent Monopoly - The anti-trust act in 1890 and the Federal Trade Commission Act in 1914 are the most important piece of marketing legislation. -1930 the country was in the Great Depression Retailers were falling during the Depression - Abusive power of chain stores, A & P was the leader. More power than Walmart 16000 chains. - Robinson Patman Act in 1936 this law prevented discrimination against small retailers in pricing and promotion.

Some agreement between treaties:

-Intellectual property protection -NAICS system of classifying industries which was part of NAFTA -

Which of the following are true of the portfolio analysis?

-Management evaluates the firm's various products and businesses. -Management allocates its resources to products based on growth opportunities. -Firms typically perform it at the SBU or product line level of the firm.

FTC / Federal Trade Commission (1914)

-Most important agency -Constantly reviewing advertising, and consumer issues and involved with mergers along with the DOJ.

Marketing Revolution

-an article from 1960. - Very pro-marketing -reflects the tenor of the times (prosperous) at the end of the 1950s. - The Author Robert Keith was the CEO of Pillsbury -the article was oriented towards consumer marketing. - His basic thesis is that marketing has evolved in the U.S through distinct steps or eras.

Short History of Marketing

1850: Department Stores: Macys open their first store in 1858 1900: Academic Studies 1930: Supermarkets 1950: Television, Malls 1980: Services 2000: Internet, Relationships

Of the following, which two are principles contained in the marketing concept?

An organization should strive to satisfy the needs of consumers An organization should try to achieve its own goals.

THE MARKETING PROGRAM: HOW CUSTOMER RELATIONSHIPS ARE BUILT pg 58

An organization's marketing program connects it with its customers. 1. Customer Value 2. Customer Relationships 3. Relationship Marketing

Firms that employ ________ systematically collect information about their customers' needs. It is sometimes possible to use that information to target their best customers with the goods, services, and special promotions that appear most important to those customers.

CRM (customer relationship management)

Identifying which three items allow an organization to determine where it is at the present time, as it begins to set a strategic direction?

Competencies Customers Customers

Agency/Administrative Decisions.

Congress lacks the special expertise needed in most cases, so they set up the framework with legislation, then agencies with experts administer the laws. -Some Agencies important for marketing are: FTC (Federal Trade Commission), the DOJ (Justice Department), FCC (Federal Communications Commission), and the FDA (Food and Drug Administration) (they have been in the news a lot lately).

A technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products is called

Diversification analysis

Listening to your customers in order to develop a better product is an example of

Effective marketing research

When marketers _____, they take into account the fact that customers are different, customers change, competitors change and react, and organizational resources are limited.

Enter into the strategic marketing process

Brad "Eras" of Policy

Era: Anti-Monopoly + Competition = Sherman, FTC Anti-Chain + Independent Retailers = R-P Act Anti-Trust + Competition = Court Decisions Consumerism + Consumers = Environmental Legislation Deregulation + Regulation =Various New Anti-Monopoly + Competition = Court Cases

A market penetration strategy attempts to increase sales of present products among ______.

Existing customers

Which marketing strategy would use advertising to encourage existing customers to buy more of a product each time they visit a store?

Market penetration

The marketing manager's controllable factors that can be used to solve a marketing problem is known as the

Marketing Mix

TeaTime, a manufacturer of tea, has a new product that is currently only available in stores located in China. Knowing that it has customers around the world, TeaTime advertises the product on its Facebook page and will ship the product to customers via FedEx until the product is made available for purchase in other stores worldwide. In this scenario, Facebook serves as a ______ element and FedEx serves as a ______ element in TeaTime's marketing mix.

Promotion, place

Environmental forces that shape the nature of an organization's actions include social, economic, technological, competitive, and ______ forces.

Regulatory

________ marketing connects the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit.

Relationship

Which tool serves as an effective summary of a situation analysis?

SWOT analysis

Customer Orientation/Satisfaction

Since exchange can sometimes not be what a customers is looking for, customer satisfactions should be the reason to focus first.

According to the AMA definition of marketing, who benefits from marketing activities? (Select all that apply)

Society at large parteners customers

Planning, implementation, and evaluation are considered parts of the ______.

Strategic marketing process

Exchange

To serve both buyers and sellers, marketing seeks (1) to discover the needs and wants of prospective customers and (2) to satisfy them. These prospective customers include both individuals, buying for themselves and their households, and organizations, buying for their own use (such as manufacturers) or for resale (such as wholesalers and retailers). The key to achieving these two objectives is the idea of exchange, which is the trade of things of value between a buyer and a seller so that each is better off after the trade. exchange and Customer Orientation/Satisfaction

Treaties

Treaties usually get buried in the middle pages of the Wall Street Journal. However, President Trump has brought them into the spotlight, focusing on NAFTA, the "new" NAFTA, and the TPP in the Pacific.

current examples: Railroading or Transportation

What business are they in? Railroading or transportation? They misread that fact and it almost lead to their demise.

Identifying one's competencies, customers, and competitors helps an organization answer what important question in setting a strategic direction?

Where are we now?

Business portfolio analysis and diversification analysis help an organization to answer what important strategic question?

Where do we want to go for growth?

What three questions would a visionary organization seek to answer?

Why does it exist? What will it do? How will it do it?

A(n) ______ market is a specific group of potential customers toward which an organization directs its marketing program target

target

Ultimate consumers _______.

use goods and services purchased for a household