MKTG 1-8
5-5 List the basic elements involved in developing a global marketing mix
A firm's major consideration is how much it will adjust the four Ps—product, promotion, place (distribution), and price—within each country. One strategy is to use one product and one promotion message worldwide. A second strategy is to create new products for global markets. A third strategy is to keep the product basically the same but alter the promotional message. A fourth strategy is to alter the product slightly to meet local conditions.
8-1 Describe the characteristics of markets and market segments
A market is composed of individuals or organizations with the ability and willingness to make purchases to fulfill their needs or wants. A market segment is a group of individuals or organizations with similar product needs as a result of one or more common characteristics.
4-7 Discuss the political and legal environment of marketing
All marketing activities are subject to state and federal laws and the rulings of regulatory agencies. Marketers are responsible for remaining aware of and abiding by such regulations. Some key federal laws that affect marketing are the Sherman Act, Clayton Act, Federal Trade Commission Act, Robinson-Patman Act, Wheeler-Lea Amendments to the FTC Act, Lanham Act, Celler-Kefauver Antimerger Act, and Hart-Scott-Rodino Act. Many laws, including privacy laws, have been passed to protect the consumer as well. The Consumer Product Safety Commission, the Federal Trade Commission, and the Food and Drug Administration are the three federal agencies most involved in regulating marketing activities.
6-1 Explain why marketing managers should understand consumer behavior
An understanding of consumer behavior reduces marketing managers' uncertainty when they are defining a target market and designing a marketing mix. The study of consumer behavior also includes factors that influence purchase decisions and product use. Value is a personal assessment of the net worth one obtains from making a purchase. Purchases are made based upon perceived value, which is what you expect to get.
2-3 Identify strategic alternatives and know a basic outline for a marketing plan
Ansoff's opportunity matrix presents four options to help management develop strategic alternatives: market penetration, market development, product development, and diversification. The layout of the innovation matrix demonstrates that as a company moves away from its core capabilities (the lower left) it traverses across a range of change and innovation rather than choosing one of the four sectors in Ansoff's matrix. The ranges are broken down into three levels: core innovation, adjacent innovation, and transformational innovation. In selecting a strategic alternative, managers may use a portfolio matrix, which classifies strategic business units as stars, cash cows, problem children (or question marks), and dogs, depending on their present or projected growth and market share. Alternatively, the General Electric model suggests that companies determine strategic alternatives based on the comparisons between business position and market attractiveness. A marketing plan should define the business mission, perform a situation analysis, define objectives, delineate a target market, and establish components of the marketing mix. Other elements that may be included in a plan are budgets, implementation timetables, required marketing research efforts, or elements of advanced strategic planning.
7-2 Describe trends in B-to-B Internet marketing
B-to-B companies use the Internet in three major ways. First, they use their websites to facilitate communication and orders. Second, they use digital marketing to increase brand awareness. Third, they use digital marketing—primarily in the form of content marketing—to position their businesses as thought leaders and therefore generate sales leads. Content marketing, a strategic marketing approach focused on creating and distributing valuable, relevant, and consistent content, has played an important role for B-to-B marketers. As they build reputations in their business areas, many B-to-B marketers use social media to share content, increase awareness, and build relationships and community. Some metrics that are particularly useful for increasing the success of a social media campaign are awareness, engagement, and conversion.
2-10 Explain why implementation, evaluation, and control of the marketing plan are necessary
Before deciding on whether a marketing plan can work, it must be implemented—that is, people must perform the actions in the plan. The plan should also be evaluated to see if it has achieved its objectives during the specified time period. Poor implementation can be a major factor in a plan's failure, but working to gain acceptance can be accomplished with task forces. Once implemented, one major aspect of control is the marketing audit, and ultimately continuing to apply what the audit uncovered through post-audit tasks.
8-2 Explain the importance of market segmentation
Before the 1960s, few businesses targeted specific market segments. Today, segmentation is a crucial marketing strategy for nearly all successful organizations. Segmentation helps marketers identify consumer needs and preferences. Because market segments differ in size and potential, segmentation helps decision makers to more accurately define marketing objectives and better allocate resources.
7-8 Discuss the unique aspects of business buying behavior
Business buying behavior is distinguished by five fundamental characteristics. First, buying is normally undertaken by a buying center consisting of many people who range widely in authority level. Second, business buyers typically evaluate alternative products and suppliers based on quality, service, and price—in that order. Third, business buying falls into three general categories: new buys, modified rebuys, and straight rebuys. Fourth, the ethics of business buyers and sellers are often scrutinized. Fifth, customer service before, during, and after the sale plays a big role in business purchase decisions.
7-1 Describe business marketing
Business marketing provides goods and services that are bought for use in business rather than for personal consumption. Intended use, not physical characteristics, distinguishes a business product from a consumer product.
5-1 Discuss the importance of global marketing
Businesspeople who adopt a global vision are better able to identify global marketing opportunities, understand the nature of global networks, create effective global marketing strategies, and compete against foreign competition in domestic markets. Large corporations have traditionally been the major global competitors, but more and more small businesses are entering the global marketplace. Despite fears of job losses to other countries with cheaper labor, there are many benefits to globalization, including the reduction of poverty and increased standards of living.
3-6 Explain cause-related marketing
Cause-related marketing is the cooperative effort between a for-profit firm and a nonprofit organization for mutual benefit. It is different from philanthropy, which is a specific, tax-deductible donation. Cause-related marketing is very popular because it can enhance the reputation of the corporation and also make additional profit for the company. However, consumers sometimes come to believe that every company is tied to a cause, resulting in consumer cause fatigue.
8-8 Explain how CRM can be used as a targeting tool
Companies that successfully implement CRM tend to customize the goods and services offered to their customers based on data generated through interactions between carefully defined groups of customers and the company. CRM relies on four things to be successful: personalization, time savings, loyalty, and technology. Although mass marketing will probably continue to be used, the advantage of CRM cannot be ignored.
6-4 Identify the types of consumer buying decisions and discuss the significance of consumer involvement
Consumer decision making falls into three broad categories: routine response behavior, limited decision making, and extensive decision making. High-involvement decisions usually include an extensive information search and a thorough evaluation of alternatives. By contrast, low-involvement decisions are characterized by brand loyalty and a lack of personal identification with the product. The main factors affecting the level of consumer involvement are previous experience, interest, perceived risk of negative consequences (financial, social, and psychological), and social visibility. A purchase decision can be highly involved due to a wide range of factors, including product involvement, situational involvement, shopping involvement, enduring involvement, and emotional involvement.
6-3 Explain the consumer's postpurchase evaluation process
Consumer postpurchase evaluation is influenced by prepurchase expectations, the prepurchase information search, and the consumer's general level of self-confidence. When a purchase creates cognitive dissonance, consumers tend to react by seeking positive reinforcement for the purchase decision, avoiding negative information about the purchase decision, or revoking the purchase decision by returning the product.
3-4 Discuss corporate social responsibility
Corporate social responsibility (CSR) is a business's concern for society's welfare. Responsibility in business refers to a firm's concern for the way its decisions affect society. Stakeholder theory says that social responsibility means paying attention to the interest of every affected stakeholder in every aspect of a firm's operation, including employees, management, customers, the local community, suppliers, and owners. According to the pyramid of corporate social responsibility, CSR has four components: economic, legal, ethical, and philanthropic. These are intertwined, yet the most fundamental is earning a profit. If a firm does not earn a profit, the other three responsibilities are moot.
6-6 Identify and understand the cultural factors that affect consumer buying decisions
Cultural influences on consumer buying decisions include culture and values, subculture, and social class. Culture is the essential character of a society that distinguishes it from other cultural groups. The underlying elements of every culture are the values, language, myths, customs, rituals, and laws that are transmitted from one generation to the next. The most defining element of a culture is its values. A culture can be divided into subcultures on the basis of demographic characteristics, geographic regions, national and ethnic background, political beliefs, and religious beliefs.
2-2 Define strategic business units (SBUs)
Each SBU has its own rate of return on investment, growth potential, and associated risks, and requires its own strategies and funding. Each SBU should have these characteristics: a distinct mission and a specific target market; control over resources; its own competitors; a single business or a collection of related businesses; plans independent of the other SBUs in the total organization.
3-2 Explain the concept of ethical behavior
Ethics are the standards of behavior by which conduct is judged. Standards that are legal may not always be ethical, and vice versa. An ethics violation offends a person's sense of justice or fairness. Ethics basically constitute the unwritten rules developed to guide interactions. Many ethical questions arise from balancing a business's need to produce profit for shareholders against its desire to operate honestly and with concern for environmental and social issues. Several ethical theories apply to marketing. Deontological theory states that people should adhere to their obligations and duties when analyzing an ethical dilemma. Utilitarian ethical theory says that the choice that yields the greatest benefit to the most people is the choice that is ethically correct. The casuist ethical theory compares a current ethical dilemma with examples of similar ethical dilemmas and their outcomes. Moral relativists believe in time-and-place ethics, that is, ethical truths depend on the individuals and groups holding them. Virtue ethics suggests that individuals become able to solve ethical dilemmas when they develop and nurture a set of virtues.
5-4 Identify the various ways of entering the global marketplace
Firms use the following strategies to enter global markets, in descending order of risk: direct investment, joint venture, contract manufacturing, licensing and franchising, and exporting.
2-11 Identify several techniques that help make strategic planning effective
First, management must realize that strategic planning is an ongoing process and not an annual exercise. Second, good strategic planning involves a high level of creativity. The last requirement is top management's support and participation.
1-4 Describe several reasons for studying marketing
First, marketing affects the allocation of goods and services that influence a nation's economy and standard of living. Second, an understanding of marketing is crucial to understanding most businesses. Third, career opportunities in marketing are diverse. Marketing career opportunities also exist in a variety of nonbusiness organizations, including hospitals, museums, universities, the armed forces, and various government and social service agencies. Fourth, understanding marketing makes consumers more informed.
1-3 Discuss the differences between sales and market orientations
First, sales-oriented firms focus on their own needs; market-oriented firms focus on customers' needs and preferences. Second, sales-oriented companies consider themselves to be deliverers of goods and services, whereas market-oriented companies view themselves as satisfiers of customers. Third, sales-oriented firms direct their products to everyone; market-oriented firms aim at specific segments of the population. Fourth, sales-oriented organizations place a higher premium on making a sale, while market-oriented firms seek a long-term relationship with the customer. Finally, sales-oriented businesses pursue maximum sales volume through intensive promotion, whereas market-oriented businesses pursue customer satisfaction through interfunctionally coordinated activities.
8-4 Describe the bases commonly used to segment consumer markets
Five bases are commonly used for segmenting consumer markets. Geographic segmentation is based on region, size, density, and climate characteristics. Demographic segmentation is based on age, gender, income level, ethnicity, and family life cycle characteristics. Psychographic segmentation includes personality, motives, lifestyle, and geodemographic characteristics. Benefits sought is a type of segmentation that identifies customers according to the benefits they seek in a product. Finally, usage-rate segmentation divides a market by the amount of product purchased or consumed.
5-3 Describe the external environment facing global marketers
Global marketers face the same environmental factors as they do domestically: culture, economic development, the global economy, political structure and actions, demography, and natural resources. Cultural considerations include societal values, attitudes and beliefs, language, and customary business practices. A country's economic and technological status depends on its stage of industrial development, which, in turn, affects average family incomes. A global marketer today must be fully aware of the intertwined nature of the global economy. The political structure is shaped by political ideology and such policies as tariffs, quotas, boycotts, exchange controls, market groupings, and trade agreements. Demographic variables include the size of a population and geographic distribution. The distribution of natural resources also affects the external environment by dictating what is available and at what price.
7-6 Explain the major differences between business and consumer markets
In business markets, demand is derived, inelastic, joint, and fluctuating. Purchase volume is much larger than in consumer markets, customers are fewer and more geographically concentrated, and distribution channels are more direct. Buying is approached more formally using professional purchasing agents, more people are involved in the buying process, negotiation is more complex, and reciprocity and leasing are more common. And, finally, selling strategy in business markets normally focuses on personal contact rather than on advertising.
4-5 Identify consumer and marketer reactions to the state of the economy
In recent years, U.S. incomes have risen at a slow pace. When income is high relative to the cost of living, people have more discretionary income and this increases their purchasing power. During a time of inflation, marketers generally attempt to maintain level pricing to avoid losing customer brand loyalty. During times of recession, many marketers maintain or reduce prices to counter the effects of decreased demand.
2-5 Describe the components of a situation analysis
In the situation (or SWOT) analysis, the firm should identify its internal strengths (S) and weaknesses (W) and also examine external opportunities (O) and threats (T). When examining external opportunities and threats, marketing managers must analyze aspects of the marketing environment in a process called environmental scanning. The six macroenvironmental forces studied most often are social, demographic, economic, technological, political and legal, and competitive.
6-8 Identify and understand the individual factors that affect consumer buying decisions
Individual factors that affect consumer buying decisions include gender; age and family life cycle stage; and personality, self-concept, and lifestyle. Beyond obvious physiological differences, men and women differ in their social and economic roles, and that affects consumer buying decisions. A consumer's age generally indicates what products he or she may be interested in purchasing. Marketers often define their target markets in terms of consumers' life cycle stage, following changes in consumers' attitudes and behavioral tendencies as they mature. Finally, certain products and brands reflect consumers' personality, self-concept, and lifestyle.
7-7 Describe the seven types of business goods and services
Major equipment includes capital goods such as heavy machinery. Accessory equipment is typically less expensive and shorter lived than major equipment. Raw materials are extractive or agricultural products that have not been processed. Component parts are finished or near-finished items to be used as parts of other products. Processed materials are used to manufacture other products. Supplies are consumable and not used as part of a final product. Business services are intangible products that many companies use in their operations.
4-1 Discuss the external environment of marketing and explain how it affects a firm
Marketers generally cannot control the elements of the external environment. Instead, they must understand how the external environment is changing and the impact of that change on the target market. Then marketing managers can create a marketing mix to effectively meet the needs of target customers. The external marketing environment consists of social, demographic, economic, technological, political and legal, and competitive variables.
8-7 Discuss alternative strategies for selecting target markets
Marketers select target markets using three different strategies: undifferentiated targeting, concentrated targeting, and multisegment targeting. An undifferentiated targeting strategy assumes that all members of a market have similar needs that can be met with a common marketing mix. A concentrated targeting strategy focuses all marketing efforts on a single market segment. Multisegment targeting is a strategy that uses two or more marketing mixes to target two or more market segments.
1-1 Define the term marketing
Marketing is 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. Marketing has two facets. First, it is a philosophy, an attitude, a perspective, or a management orientation that stresses customer satisfaction. Second, marketing is an organization function and a set of processes used to implement this philosophy. One desired outcome of marketing is an exchange. An exchange has five conditions, as listed below. Even if all five conditions are met, an exchange might not occur. People engage in marketing whether or not an exchange happens. The five conditions of exchange are as follows: There must be at least two parties. Each party has something that might be of value to the other party. Each party is capable of communication and delivery. Each party is free to accept or reject the exchange offer. Each party believes it is appropriate or desirable to deal with the other party.
4-6 Identify the impact of technology on a firm
Monitoring new technology is essential to keeping up with competitors in today's marketing environment. The United States excels in basic research and, in recent years, has dramatically improved its track record in applied research. Innovation is increasingly becoming a global process. Without innovation, U.S. companies can't compete in global markets.
3-3 Describe ethical behavior in business
Morals are the rules people develop as a result of cultural values and norms. Business ethics may be viewed as a subset of the values of society as a whole, with a foundation based on the cultural values and norms that constitute a culture's morals. The ethical conduct of businesspeople is shaped by societal elements, including family, education, and religious institutions. As members of society, businesspeople are morally obligated to consider the ethical implications of their decisions. Ethical decision making can be grouped into three basic approaches. The first approach examines the consequences of decisions. The second approach relies on rules and laws to guide decision making. The third approach is based on a theory of moral development that places individuals or groups in one of three developmental stages: preconventional morality, conventional morality, or postconventional morality. In addition to personal influences, there are many business influences on ethical decision making. Some of the most influential include the extent of ethical problems within the organization, top management's actions on ethics, potential magnitude of the consequences, social consensus, probability of a harmful outcome, length of time between the decision and the onset of consequences, and the number of people to be affected. Many companies develop a code of ethics to help their employees make ethical decisions. A code of ethics can help employees identify acceptable business practices, be an effective internal control on behavior, help employees avoid confusion when determining whether decisions are ethical, and facilitate discussion about what is right and wrong. Studies show that ethical beliefs vary little from country to country. However, there are enough cultural differences, such as the practice of bribery or gift giving, that laws such as the Foreign Corrupt Practices Act (FCPA) have been put in place to discourage and attempt to modify the current acceptance of such practices.
3-5 Describe the arguments for and against social responsibility
Most businesspeople believe they should do more than pursue profits. Although a company must consider its economic needs first, it must also operate within the law, do what is ethical and fair, and be a good corporate citizen. Sustainability is the concept that socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as an opportunity to earn profits and help the world at the same time. Social responsibility is growing, but it can be costly and the benefits are not always immediate. In addition, some surveys report that consumer desire to purchase responsible products does not always translate to actually purchasing those products. One branch of social responsibility is green marketing, which aids the environment and often the bottom line of a business.
5-2 Discuss the impact of multinational firms on the world economy
Multinational corporations are international traders that regularly operate across national borders. Because of their vast size and financial, technological, and material resources, multinational corporations have great influence on the world economy. They have the ability to overcome trade problems, save on labor costs, and tap new technology. There are critics and supporters of multinational corporations, and the critics question the actual benefits of bringing capital-intensive technology to impoverished nations. Some companies presume that markets throughout the world are more and more similar, so some global products can be standardized across global markets.
2-7 Explain the criteria for stating good marketing objectives
Objectives should be realistic, measurable, time-specific, and compared to a benchmark. They must also be consistent and indicate the priorities of the organization. Good marketing objectives communicate marketing management philosophies, provide management direction, motivate employees, force executives to think clearly, and form a basis for control.
8-9 Explain how and why firms implement positioning strategies and how product differentiation plays a role
Positioning is used to influence consumer perceptions of a particular brand, product line, or organization in relation to competitors. Position is the place a product, brand, or group of products occupies in consumers' minds relative to competing offerings. One positioning strategy that many firms use to distinguish their products from competitors is based on product differentiation. The distinctions between products can be either real or perceived. Products may be positioned on the basis of attribute, price and quality, use or application, product user, product class, competitor, or consumer emotion.
7-4 Identify the four major categories of business market customers
Producer markets consist of for-profit individuals and organizations that buy products to use in producing other products, as components of other products, or in facilitating business operations. Reseller markets consist of wholesalers and retailers that buy finished products to resell for profit. Government markets include federal, state, county, and city governments that buy goods and services to support their own operations and serve the needs of citizens. Institutional markets consist of very diverse nonbusiness institutions whose main goals do not include profit.
6-9 Identify and understand the psychological factors that affect consumer buying decisions
Psychological factors include perception, motivation, and learning. These factors allow consumers to interact with the world around them, recognize their feelings, gather and analyze information, formulate thoughts and opinions, and take action. Perception allows consumers to recognize their consumption problems. Motivation is what drives consumers to take action to satisfy specific consumption needs. Almost all consumer behavior results from learning, which is the process that creates changes in behavior through experience and practice.
6-5 Describe how some marketers are reconceptualizing the consumer decision making process
Rapid changes in digital technology have given consumers unprecedented power to express likes and dislikes, compare prices, find the best deals, and sift through huge numbers of recommendations on Web sites. Another way firms are keeping customers in the loyalty loop is by using automated reordering.
7-3 Discuss the role of relationship marketing and strategic alliances in business marketing
Relationship marketing entails seeking and establishing on-going partnerships with customers. A strategic alliance is a cooperative agreement between business firms. Business marketers form strategic alliances to strengthen operations and better compete. Although the concepts of relationship marketing and strategic alliances are relatively new to American marketers, these ideas have long been used by marketers in other cultures.
5-6 Discover how the Internet is affecting global marketing
Simply opening an e-commerce site can open the door for international sales. Global shippers such as UPS, FedEx, and DHL can help solve logistics problems. Language translation software can help an e-commerce business become multilingual. Global marketers use social media not only for understanding consumers but also to build their brands as they expand internationally.
8-6 List the steps involved in segmenting markets
Six steps are involved when segmenting markets: 1) selecting a market or product category for study; 2) choosing a basis or bases for segmenting the market; 3) selecting segmentation descriptors; 4) profiling and analyzing segments; 5) selecting target markets; and 6) designing, implementing, and maintaining appropriate marketing mixes.
6-7 Identify and understand the social factors that affect consumer buying decisions
Social factors include such external influences as reference groups, opinion leaders, and family. Consumers seek out others' opinions for guidance on new products or services and products with image-related attributes or because attribute information is lacking or uninformative. Consumers may use products or brands to identify with or become a member of a reference group, or to follow an opinion leader. Family members also influence purchase decisions; children tend to shop in similar patterns as their parents. Social influence also plays an important role in consumer behavior especially when the consumer knows or feels that he or she is being watched.
3-1 Explain the determinants of a civil society
Societal order is created through the six modes of social control. Ethics are the moral principles or values that generally govern the conduct of an individual or a group. Laws come into being when ethical rules and guidelines are codified into law. Formal and informal groups have codes of conduct that prescribe acceptable and desired behaviors of their members. Self-regulation involves the voluntary acceptance of standards established by nongovernmental entities. The media play a key role in informing the public about the actions of individuals and organizations—both good and bad. An informed and engaged society can help mold individual and corporate behavior.
2-1 Understand the importance of strategic planning
Strategic planning is the managerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities. These decisions affect the allocation of resources and ultimately the financial success of the company.
8-3 Discuss the criteria for successful market segmentation
Successful market segmentation depends on four basic criteria: 1) a market segment must be substantial and have enough potential customers to be viable, 2) a market segment must be identifiable and measurable, 3) members of a market segment must be accessible to marketing efforts, and 4) a market segment must respond to particular marketing efforts in a way that distinguishes it from other segments.
2-8 Discuss target market strategies
Targeting markets begins with a market opportunity analysis, or MOA, which describes and estimates the size and sales potential of market segments that are of interest to the firm. In addition, an assessment of key competitors in these market segments is performed. After the market segments are described, one or more may be targeted by the firm.
7-5 Explain the North American Industry Classification System
The North American Industry Classification System (NAICS) is an industry classification system introduced in 1997 to replace the standard industrial classification system (SIC). Organizations can be identified and compared by a numeric code indicating business sector, subsector, industry group, industry, and industry subdivision. NAICS is a valuable tool for analyzing, segmenting, and targeting business markets.
8-5 Describe the bases for segmenting business markets
The business market consists of four broad segments: producers, resellers, government, and institutions. Company characteristics, such as geographic location, type of company, company size, and product use, can be important segmentation variables. Many business marketers find it helpful to segment customers and prospective customers on the basis of how they buy.
4-8 Explain the basics of foreign and domestic competition
The competitive environment encompasses the number of competitors a firm must face, the relative size of the competitors, and the degree of interdependence within the industry. Declining population growth, rising costs, and shortages of resources have heightened domestic competition. Many foreign competitors also consider the United States to be a ripe target market. In the past, foreign firms penetrated U.S. markets by concentrating on price, but the emphasis has switched to product quality.
6-2 Analyze the components of the consumer decision-making process
The consumer decision-making process begins with need recognition, when stimuli trigger awareness of an unfulfilled want. If additional information is required to make a purchase decision, the consumer may engage in an internal or external information search. The consumer then evaluates the additional information and establishes purchase guidelines. Finally, a purchase decision is made.
2-4 Develop an appropriate business mission statement
The firm's mission statement establishes boundaries for all subsequent decisions, objectives, and strategies. A mission statement should focus on the market(s) the organization is attempting to serve rather than on the good or service offered.
2-9 Describe the elements of the marketing mix
The marketing mix is a blend of product, place, promotion, and pricing strategies (the four Ps) designed to produce mutually satisfying exchanges with a target market. The starting point of the marketing mix is the product offering—tangible goods, ideas, or services—and product strategy. Place (distribution) strategies are concerned with making products available when and where customers want them. Promotion includes advertising, public relations, sales promotion, and personal selling. Price is what a buyer must give up in order to obtain a product and is often the most flexible of the four marketing mix elements.
4-4 Explain the importance to marketing managers of growing ethnic markets
The minority population today is about 118 million. By 2050, around one in three U.S. residents will be Hispanic. The United States will flip completely to a majority-minority makeup in 2041. Many companies are now creating departments and product lines to effectively target multicultural market segments. Companies have quickly found that ethnic markets are not homogeneous.
1-2 Describe four marketing management philosophies
The role of marketing and the character of marketing activities within an organization are strongly influenced by its philosophy and orientation. A production-oriented organization focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace. A sales orientation is based on the beliefs that people will buy more products if aggressive sales techniques are used and that high sales volumes produce high profits. A market-oriented organization focuses on satisfying customer wants and needs while meeting organizational objectives. A societal marketing orientation goes beyond a market orientation to include the preservation or enhancement of individuals' and society's long-term best interests.
2-6 Identify sources of competitive advantage
There are three types of competitive advantage: cost, product/service differentiation, and niche. Sources of cost competitive advantage include experience curves, efficient labor, no-frills goods and services, government subsidies, product design, reengineering, production innovations, and new methods of service delivery. A product/service differentiation competitive advantage exists when a firm provides something that is unique and valuable to buyers beyond simply offering lower price than that of the competition. Niche competitive advantages come from targeting unique segments with specific needs and wants. The goal of all these sources of competitive advantage is to be sustainable.
4-3 Explain the importance to marketing managers of current demographic trends
Today, several basic demographic patterns are influencing marketing mixes. Because the U.S. population is growing at a slower rate, marketers can no longer rely on profits from generally expanding markets. Marketers are also faced with increasingly experienced consumers among the younger generations such as tweens and teens. And because the population is also growing older, marketers are offering more products that appeal to middle-aged and older consumers.
4-2 Describe the social factors that affect marketing
Within the external environment, social factors are perhaps the most difficult for marketers to anticipate. Component lifestyles increase the complexity of consumers' buying habits. Social media are making profound changes in the way people obtain and consume information. Marketers have learned that social media are not like network television, where a message is pushed out to a mass audience. Instead, social media enable firms to create conversations with customers and establish meaningful connections. In other words, social media marketing can humanize brands.
