Intro to Business Chapter 11 Vocabulary

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

Marketing plan

is a written document that tells us what resources, objectives, strategies, implementation, and control efforts that are used to market a specific product

Sales forecast

is an estimate of the amount of product that an organization expects to sell during a certain period of time

Consumer buying behavior

centered around the purchases of products for household use (it is largely affected and determined by your income)

Institutional markets

churches, non for profits, schools .... Buying products to operate those businesses

Market segment

a group of individuals within a market that shares one or more characteristics

Concentrated

a single marketing mix is directed at a single market segment

Value

(marketing is how we convey that there is a value to our customers) is the customers definition of worth ^Value is going to look at a comparison of cost and benefits especially quality

Secondary data

- Commercial reports - Government reports Internal databases

Using technology to gather and analyze marketing information

- Data base - Single-source data - Online information services - Internet

Common bases of market segmentation

- Demographic (people) - Psychographic (personality attributes) - Geographic (based on location) - Behavioristic (consumer behavior... loyalty, price sensitivity)

A firm does not have control: ^ Make up the external marketing environment

- Economic forces - Sociocultural forces (different influences consumers are faced with) - Political forces (arise through the actions of political figures) - Competitive forces - Legal and regulatory forces (laws that protect consumers) - Technological forces (can create new marketing opportunities or cause some products to become obsolete)

Marketing research: Primary data directly from consumers

- Mail surveys - Telephone surveys - Personal interview - Online - Focus group - Social networking surveys - Direct observation of consumer behavior

A firm can control: ^internal forces

- Product - Price - Distribution - Promotion

Marketing mix

- Product - Price - Distribution - Promotion

Eight functions of marketing:

1) Buying 2) Selling 3) Transporting 4) storing 5) Financing/facilitating 6) Standardization 7) Risk taking 8) Gathering

Two market segmentation approaches

1) Concentrated 2) Differentiated

The 6 steps of marketing research

1) Define the problem 2) Make a preliminary investigation 3) Plant the research 4) Gather factual information 5) Interpret the information 6) Research a conclusion

Marketers consider income in three different ways

1) Personal income 2) Disposable income 3) Discriminatory income

Creating a Marketing Mix When combines, these four elements form a marketing mix

1) Product - All of the decisions of the product 2) Price - Base price as well as discounts 3) Distribution - Not only about the transportation and distribution of products but also how are we going to get it to the end user and intermediaries 4) Promotion - How we prove information to our target market - Advertising, personal selling, sales relationships

Evolution of customer orientation

1) Production orientation 2) Sales orientation 3) Customer orientation (where we are right now in society) 4) customer needs

How to implement the marketing concept (4 steps)

1) The business needs to learn about their present and potential customers (research oriented) - What are the customers' needs? - How do our products satisfy those needs? - How to the products of our competitors satisfy those needs? (Allows us to know how to make our product better) - How can we improve upon either of them? 2) We are going to use the information gathered to pinpoint the specific needs and potential customers towards our direct marketing activities 3) Mobilize our marketing resources - How we mobilize them? 1. Provide the product 2. Price the product 3. Promote the product 4. Distribute the product 4) Evaluate how we are doing - Go back and research the effectiveness of our efforts

Marketing concept process

1) The firm communicates with potential customers to assess their product needs 2) The firm develops a good or service to satisfy those needs 3) The firm continues to seek ways to provide customers satisfaction

Marketing approaches

1) Undifferentiated approach 2) Market segmentation approach 3) Market segment 4) Market segmentation

Components of a marketing plan

1. Executive summary 2. Environmental analysis 3. SWOT analysis (Strength, weakness, opportunities in the environment and industry, threats in the environment and industry)

Managers reliance on sales forecast

1. Helps to figure out how much raw materials need to be purchased 2. Higher personal 3. schedule production 4. secure financial resources 5. consider equipment purchases

Importance of developing a marketing plan

1. High importance 2. Need a clear plan 3. Establishes a unified vision 4. Cover all responsibilities tasks schedules for implementation 5. Outlines how resources are allocated 6. Helps to monitor and evaluate the performance of a marketing strategy

Forecasting methods

1. Historical data 2. Executive judgment 3. Survey of buyers or sales personal 4. Market tests 5. Correlation analysis

· Is a product a consumer buy or a business buy

Buying for a home business answer would be business buying since it is for the business and not the home

Internal data

Gives us data Inventory costs Marketing costs

External data

How suppliers are doing How intermediaries are doing How are the competitors are doing

If there was a 5th step, what do you think that marketers would do next?

Pivot...if our methods were not effective we need to go back and determine what we should do to get the result we desire BUT if we are doing good then we should keep doing what we are doing

Measuring market segments

Why? It can help a firm determine the feasibility of entering an new segment and how best to allocate its marketing resources.

Target Market

a group of individuals or organizations that a company has chosen to develop their marketing mix around - Selection - Resources

Marketing information systems (MIS)

allows us to manage the information from both internal and external sources in order to make our objectives in the most effective manor

Market

and is a group of people or organizations that need products and have the ability to buy them

Governmental markets

are markets where items are being purchases (federal, state, local, county) are buying the goods and services that go into providing the supply needed for the community

Different types of markets

consumer, reseller, and institutional markets

2 types of buyers

consumers and business buyers

Possession utility

created by transferring the title or ownership of a product to a buyer

Customer orientation (where we are right now in society)

determine customer needs - develop products to fill these needs - achieve the organizations goals

Market segmentation approach

determines a market segment

Relationship Marketing

establishing long term relationships that are beneficial for both the buyer and the seller

Producer markets

in which we are going to buy certain products to use in the manufacturing of another product

Sales orientation

increase advertising - enlarge sales force - intensify sales techniques

marketing strategy

is a plan that will help a business make the best use of their resources in order to meet its objectives ^consist of the selection of analysis of a target market ^create and maintain your marketing mix

Consumer

is made up of household members who intend to buy products for their own personal use, you do not buy it to make a profit...consists of purchasers who buys products for their own benefit not wanting to make a profit (do not make a profit)

Form utility

is one we create a value by creating production and input into a finished product (turning product (example: only your size shoe will satisfy your need)

Business - to - business or industrial

is one when they are purchasing a product to make a profit for resale or day to day operations (buy to resell product to make a profit or use in day to day operations)

Utility

is the ability of a good or service to satisfy a need

Marketing concept

is the idea that a business should provide goods or services that satisfies needs through a set of coordinated activities

Business buying behavior

is the purchasing of products by producers, resellers, governmental units, and institutions (NOT consumers) ^goes through a similar process but it is surrounded on the purchasing of goods and services for the businesses

Buying behavior

looking at the decision and actions of people involved in buying and using products

Place utility

making a product available where we need it to be available for purchase (AKA place value)

Differentiated

multiple marketing mixes are focused on a multiple market segment

4 elements of a marketing mix

product, price, distribution, and promotion

Production orientation

take order - distribute goods

Consumer Buying Decision Process

recognize problem, search for information, evaluate alternatives, purchase, and evaluate after purchase

Undifferentiated approach

selects one marketing mix for the entire market for a particular product (exp. sugar, salt)

Consumers values

social, cultural, economic, sociocultural forces

Market segmentation

the process of dividing a market into segments and directing a marketing mix at a specific segment and not the whole

Time utility

value created by the product being available when the customer wants to purchase the product

Customer lifetime value

what a company does to determines a customer's worth over their lifetime (one transaction as profitable as possible)^a measure of a customer's worth (sales minus costs) to a business over one's lifetimes

Customer relationship management (CRM)

when companies use information about customers to create specific strategies that will help them develop the relationships

Reseller market

when we are looking at a intermediary (wholesalers, retailers) to buy something ... those groups are buying a product to resell them