MKTG Exam 1 Review - IN CLASS DISCUSSION

Maslow's Hierarchy of Needs

(level 1) Physiological Needs, (level 2) Safety and Security, (level 3) Relationships, Love and Affection, (level 4) Self Esteem, (level 5) Self Actualization

Purchaser

the person who actually negotiates the purchase

Decider

the person who has the formal or informal power to choose or approve the selection of the supplier or brand

Perceived Value

the value a consumer expects to obtain from a purchase

Roles in the Buying Center

users, influencers, buyers, deciders, gatekeepers, initiators

Absolute advantage

when one country can use fewer resources to produce a good compared to another country; when a country is more productive compared to another country

Pyramid of Corporate Social Responsibility (CSR)

a model that suggests corporate social responsibility is composed of economic, legal, ethical, and philanthropic responsibilities and that the firm's economic performance supports the entire structure

Value

a personal assessment of the net worth one obtains from making a purchase, or the enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct

Market Orientation

a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product; it is synonymous with the marketing concept

Straight Rebuy

a situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers - an order is placed with the existing supplier and the product is provided as in previous orders - vendors prefer

Modified Rebuy

a situation in which the purchaser wants some change in the original good or service - less critical and less time consuming than a new buy P a purchaser may open the modified rebuy to outside bidders to ensure competitive terms and pricing

New Buy

a situation requiring the purchase of a product for the first time - greatest opportunity for new vendors

BCG Portfolio Matrix

a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate - star: has high growth rate and high market share (consolidate or expand) - cash cow: high market share but not fast market growth, still generates (harvest) - question mark: low market share, high growth rate (invest/improve) - dog: low market share and market growth (divest)

Consumer Decision Making Process

1. need recognition 2. information search 3. evaluation of alternatives 4. purchase 5. post purchase behavior

Gatekeeper

A group member who regulate the flow of information

Henry Ford's Model T AVAILABLE IN ANY COLOR - as long its black. This is an example of what type of management philosophy

Production Orientation

belongingness and love needs

intimate relationships, friends

routine decision making

low involvement, have product and brand knowledge spend little time on search and decision when making purchases Extensive distribution

Users

members of the buying organization who will actually use the purchased product or service

influencer/evaluator

people who influence the buying decision. They often help define specifications and provide information for evaluating options. ex: technical personnel

Esteem Needs

prestige and feeling of accomplishment

Consumer Behavior

processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and product use

limited buying decision

purchase that requires some amount of research and planning

Continuum of Consumer Buying Decisions

routine, limited, extensive

Safety Needs

security, safety

The Marketing Environment

the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers

Sales Orientation

the belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits

Intiator

the buying center participant who first suggests buying the particular product or service

Demand

- derived - comes from the demand of product - inelastic - insensitive to changes in price, demand remains the same - joint - when they go together, apple and apple operating systems - fluctuating - doesn't change until a certain. Level then shoots up

What is marketing?

- entails processes that focuses on delivering value and benefits to customers - uses communication, distribution, and pricing strategies to provide customers and other stakeholders with the goods, services, ideas, values, and benefits they desire when and where they want them - involves building long-term, mutually rewarding relationships when these benefits all parties covered - entails an understanding that organizations have many connected stakeholder "partners" including employees, suppliers, stockholders, distributors, and other - PRIMARY FOCUS: satisfying customer's needs and wants

Environmental Factors

- social factors - demographic factors - growing ethnic markets - economic factors - technological factors - political and legal factors - competitive factors

Marketing Management Philosophies (orientation)

1. Production 2. Sales 3. Market 4. Societal Marketing

Ethical Responsibilities

Be ethical. Do what is right, just, and fair. Avoid harm.

Economic Responsibility

Be profitable. Profit is the foundation on which all other responsibilities rest.

The best way to market a product to focus on:

Benfits

Marketing Plan for Strategic Planning

Business Mission Situation or SWOT Analysis Business Objectives Marketing Strategy Implementation and Control

Coca Cola has a market orientation and follows the marketing concept. Most likely, the company would react to consumer dissatisfaction to its products by first

D) Conducting research to determine if its the customers' need have changed

Risk Levels for Five Methods of Entering the Global Marketplace

Firms use the following strategies to enter global markets, in descending order of high risk and profit: direct investment, joint venture, contract manufacturing, licensing and franchising, and exporting.

Societal Market Orientation

Focus is on enhancing benefits to society Key Question: How do I meet customer needs and benefit society?

Why Nations Trade

Free trade creates opportunities for mutual gain.

Business Situations

Must decide whether to make something or buy it from an outside supplier

Legal Responsibilities

Obey the law. Law is society's codification of right and wrong. Play by the rules of the game.

MAREKTING MIX

Product, Price, Place, Promotion

Ansoff's Strategic Opportunity Matrix

Where your SBU is and where it should be going

Strategic Business Unit

a division of the firm itself that can be managed and operated somewhat independently from other divisions and may have a different mission or objectives

extensive buying decision

a great deal of research, time, and planning; usually an expensive good or service

Production Orientation

a management philosophy that emphasizes the most efficient ways to produce and distribute products - less supply, high demand

Utilitarian Value

a value derived from a product or service that helps the consumer solve problems and accomplish tasks

Hedonic Value

a value that acts as an end in itself rather than as a means to an end

self-actualization needs

achieving one's full potential, including creative activities

Cognitive Dissonance

an unpleasant state that arises when a person recognizes the inconsistency of his or her actions, attitudes, or beliefs

Philanthropic Responsibility

be a good global corporate citizen, do what is desired by global stakeholders, contribute resources to the community

Strategic Planning

the managerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities (amazon, Walmart) - long term planning, what company is good at and the respources that they have

Business Marketing

the marketing of goods and services to individuals and organizations for purposes other than personal consumption - businesses, retailers, government - fewer, larger customers - geographically concentrated - shorter channels, online exchanges

General Electric Model

determines resources allocation to SBUs by determining market attractiveness and company strength 1. Low: harvest/divest 2. Med: cautiously invest 3. High: invest/grow

Principle of Comparative Advantage

each country should specialize in the products or services that it can produce most readily and cheaply and trade those products or services for goods and services that foreign countries can produce most readily and cheaply

Physiological needs

food, water, warmth, rest