Marketing Exam 1

For marketing to occur

(1) two or more parties (individuals or organizations) with unsatisfied needs (2) a desire and ability on their part to have their needs satisfied (3) a way for the parties to communicate (4) something to exchange.

customer value proposition

A cluster of benefits that an organization promises customers to satisfy their needs.

External Forces?

A number of forces over which it has little or no control affect a company's marketing activities. Taken together, they make up its external marketing environment, which includes regulatory and political activity, economic conditions, competitive forces, changes in technology, and social and cultural influences.

What is Moral Idealism? Give examples

A personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome. Exists in the Consumer Bill of Rights EX: the right to know applies to probable defects in an automobile that relate to safety

What is a Competitive Advantage?

A unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation.

What is a Market Segmentation?

Aggregating prospective buyers into groups, or segments, that (1) have common needs (2) will respond similarly to a marketing action in order to focus on specific marketing programs on its target market segments.

What is a SWOT and it's sections?

An effective summary of a situation analysis, an acronym describing an organization's appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats. SWOT table has four cells formed by the combination of internal versus external factors (the rows) and favorable versus unfavorable factors (the columns) that strengths, weaknesses, opportunities, and threats. It is important because it: Identify trends in the organization's industry. Analyze the organization's competitors. Assess the organization itself. Research the organization's present and prospective customers.

What are ​organizations foundations?

An organization's Core values are the fundamental, passionate, and enduring principles that guide its conduct over time. By understanding its core values, an organization can take steps to define its Mission, a statement of the organization's function in society that often identifies its customers, markets, products, and technologies. Organizational culture—the set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization.

What is a Market Segment?

Are relatively homogeneous groups of prospective buyers that (1) have common needs and (2) will respond similarly to a marketing action. This action might be a product feature, a promotion, or a price. Target Market is a particular group of consumers at which a product or service is aimed by the marketing program.

What are Competitive Forces:

Barriers of entry, a firm must assess the likelihood of new entrants. Additional producers increase industry capacity and tend to lower prices. Power of Buyers and Suppliers. Existing Competitors and Substitutes Competitive pressures among existing firms depend on the rate of industry growth. In slow-growth settings, competition is more heated for any possible gains in market share. High fixed costs also create competitive pressures for firms to fill production capacity.

What is Caveat Emptor?

Before the 1960s, the legal concept of caveat emptor—let the buyer beware—was pervasive in the American business culture.

What is an Organization Direction(Business)

Describes the clear, broad, underlying industry or market sector of an organization's offering. To help define its business, an organization looks at the set of organizations that sell similar offerings.

Demographics

Describing a population according to selected characteristics such as age, gender, ethnicity, income, and occupation. Refer to Chapter 3 demographics chart.

The marketing department is responsible for

Facilitating relationships, partnerships, and alliances with the organization's customers, its shareholders (or often representatives of nonprofit organizations), its suppliers, and other organizations. Environmental forces involving social, economic, technological, competitive, and regulatory considerations also shape an organization's marketing actions. Look at figure 1-2 for more information

Global Competition- International Firms, Multinational Firms, Transnational Firms

Global competition exists when firms originate, produce, and market their products and services worldwide. The automobile, pharmaceutical, apparel, electronics, aerospace, and telecommunication fields represent well-known industries with sellers and buyers on every continent. : An international firm engages in trade and marketing in different countries as an extension of the marketing strategy in its home country. A multinational firm views the world as consisting of unique parts and markets to each part differently. A transnational firm views the world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants rather than differences. EX: P&G markets Mr. Clean in North America & Asia, but not anywhere else

What are Offerings?

Goods and services

what are the three Consumer incomes

Gross income- The total amount of money made in one year by a person, house- hold, or family unit. Disposable income, is the money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation. Discretionary income, the money that remains after paying for taxes and necessities. Which is used on luxury items.

What is the Consumer Bill of Rights

In 1962, President John F. Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers. These were the right to: Safety, Be informed, Choose, Be heard

Explain the Low, High, Medium Consumer Involvement

Low and high consumer involvement have important implications for marketing strategy. If a company markets a low-involvement product and its brand is a market leader, attention is placed on (1) maintaining product quality, (2) avoiding stockout situations so that buyers don't substitute a competing brand, and (3) using repetitive advertising messages that reinforce a consumer's knowledge or assure buyers they made the right choice.

Consumer Touch Points

Marketer's product, service, or brand points of contact with a consumer from start-to-finish in the purchase decision process. EX: consumers may see a company's offerings online, in print and digital advertisements, or in a catalog; shop for a company's products online or in a store; or call a company's customer service or technical support department.

How do you discover consumer needs?

Marketers often use customer surveys, concept tests, and other forms of marketing research to better understand customer ideas. Many firms also use "crowdsourcing" websites to solicit and evaluate ideas from customers.

Green Marketing

Marketing efforts to produce, promote, and reclaim environmentally sensitive products—takes many forms.

Influences on the Consumer Purchase Decision Process- Marketing Mix, Sociocultural, Situational, Psychological

Marketing mix influences- •Product • Price • Promotion • Place Sociocultural influences- • Personal influence • Reference groups • Family • Social class • Culture and subculture Psychological influences - • Motivation and personality • Perception • Learning • Values, beliefs, and attitudes • Lifestyle Situational influences- • Purchase task • Social surroundings • Physical surrounding • Temporal effects • Antecedent states

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. 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.

What is GDP

Monetary value of all products and services produced in a country during one year.

• Motivation & Maslow Hierarchy of Needs

Motivation is the energizing force that stimulates behavior to satisfy a need. Because consumer needs are the focus of the marketing concept, marketers try to arouse these needs.The Maslow hierarchy of needs is based on the idea that motivation comes from a need. If a need is met, it's no longer a motivator, so a higher-level need becomes the motivator. Higher-level needs demand support of lower-level needs bottom to top: 5.Self-actualization needs: Self-fulfillment 4.Personal needs: Status, respect, prestige 3.Social needs: Friendship, belonging, love 2.Safety needs: Freedom from harm, financial security 1.Physiological needs: Food, water, shelter, oxygen

what are Organizational Strategies(by level)

Moving down the levels in an organization involves creating increasingly specific, detailed strategies and plans. So, at the corporate level, top managers may struggle with writing a meaningful mission statement; while at the functional level, the issue is who makes tomorrow's sales call.

Multi-domestic Marketing Strategy

Multinationals use a marketing strategy, that has as many different product variations, brand names, and advertising programs as countries in which they do business.

What is Cause Marketing, Give examples

Occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products. EX: when consumers purchase selected company products, Procter & Gamble directs part of that revenue toward programs that support disadvantaged youth and provide disaster relief. EX: MasterCard International links usage of its card with fund-raising for institutions that combat cancer, heart disease, child abuse, drug abuse, and muscular dystrophy.

Exporting, Licensing, JV's, Direct Investment- how to grow your business, level of commitment, pro's and con's

Once a company has decided to enter the global marketplace, it must select a means of market entry. Four general options exist: (1) exporting-Exporting is producing products in one country and selling them in another country. (2) licensing-Under licensing, a company offers the right to a trademark, patent, trade secret, or other similarly valued items of intellectual property in return for a royalty or a fee. (3) joint venture-When a foreign company and a local firm invest together to create a local business, it is called a joint venture. These two companies share the ownership, control, and profits of the new company. (4) direct investment-Direct investment entails a domestic firm actually investing in and owning a foreign subsidiary or division.

What is a market?

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.

Explain the three Concepts of Social Responsibility

Profit: to maximize profits for their owners or stockholders. "There is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud." by Nobel Laureate Milton Friedman Stakeholder: obligations than an organization has to those who can affect achievement of its objectives. These include consumers, employees, suppliers, and distributors. Failure to consider a company's broader constituencies when making decisions can have dire consequences. Societal: obligations that organizations have (1) to the preservation of the ecological environment and (2) to the general public.

What is Multicultural Marketing

Program that use combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races. Because businesses must now market their products to a consumer base with many racial and ethnic identities, in- depth marketing research that allows an accurate understanding of each culture is essential.

What are Alternative forms of competition?

Pure competition-in which there are many sellers and each has a similar product. Monopolistic competition-many sellers compete with substitutable products within a price range. Oligopoly-a common industry structure, occurs when a few companies control the majority of industry sales. Pure monopoly-occurs when only one firm sells the product.

Triple Bottom Line

Recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth.

Environmental Forces

Social forces are changing as people look for new ways to communicate, obtain information, and offer opinions. Economic forces such as the cost of smartphones and wireless connectivity declines and Internet access expands throughout the globe. Technological advances in software integration, server speed, and data storage are making Facebook increasingly fast and convenient. Competitive forces such as other social media platforms and new social networks targeted at specific interest groups, encourage rapid expansion. Legal and regulatory forces also influence the growth of Facebook. The company has obtained trademark and patent rights to its name and many of its features, and it provides guidelines for a variety of topics such as privacy, data protection, protection of minors, and taxation.

What are laws?

Society's values and standards that are enforceable in the courts.

What is an Organization Direction(goals)

Statements of an accomplishment of a task to be achieved, often by a specific time. Goals convert an organization's mission and business into long- and short-term performance targets. Business firms can pursue several different types of goals: Profit, Sales, Market share, Quality, Customer satisfaction, Employee welfare, Social responsibility.

what are Organizational Strategies(by product)

Strategies also vary by the organization's products. The strategy will be far different when marketing a very tangible physical good, a service, or an idea.

Consumer Ethnocentrism

Tendency to believe that it is inappropriate, indeed immoral, to purchase foreign-made products. Ethnocentric consumers believe that buying imported products is wrong because such purchases are unpatriotic, harm domestic industries, and cause domestic unemployment.

What is the structure of an organization?

The Corporate level is where top management directs overall strategy for the entire organization. A Strategic business unit(SBU), which is a subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined target market. Focus on exploiting value-creating opportunities. A Functional level is where groups of specialists actually create value for the organization.

Perceived Risk

The anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences.

Balance of Trade

The difference between the monetary value of a nation's exports and imports. When exports > imports: results in surplus. When imports > exports, results in deficit.

What is points of difference?

The match between products and segments is often related to the characteristics of a product that make it superior to competitive substitutes.

Profit is

The money left after a for-profit organization subtracts its total expenses(sales-Expenses=profit).

What are ethics?

The moral principles and values that govern the actions and decisions of an individual or group. They serve as guidelines on how to act rightly and justly when faced with moral dilemmas.

What is a macroeconomic level?

The performance of the economy based on indicators such as GDP (gross domestic product), unemployment, and price changes (inflation or deflation). In an inflationary economy, the cost to produce and buy products and services escalates as prices increase. From a marketing standpoint, if prices rise faster than consumer incomes, the number of items consumers can buy decreases.

What's a Competitor example?

The point is that Lands' End's strategy must provide genuine value to customers to ensure that they have a satisfying experience. Lands' End competes with not only other clothing catalog retailers but also traditional department stores, mass merchandisers, and specialty shops. This means there's a lot of competition out there.

Greenwashing

The practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, technology, or company practice.

Environmental Scanning

The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends. A firm conducting an environmental scan of the marketplace might uncover key trends in the marketplace, such as those listed in Figure 3-2 for each of the five environmental forces.

What is the 5 steps of the Purchase Decision Process

The stages a buyer passes through in making choices about which products and services to buy. 1.Problem recognition: perceiving a need. 2.Information search: seeking value. 3.Alternative evaluation: Assessing value. 4.Purchase decision: buying value. 5.Post-purchase behavior: realizing value

Consumer Journey Map

Visual representation of all the touchpoints for a consumer who comes into contact with a company's products, services, or brands before, during, and after a purchase.

A want is

a need that is shaped by a person's knowledge, culture, and personality.

A government agency

is a federal, state, county, or city unit that provides a specific service to its constituents. For example, the Census Bureau, a unit of the U.S. Department of Commerce, is a federal government agency that provides population and economic data.

A nonprofit organization

is 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 such as organizations like Swipe Out Hunger and Teach For America.

What is Strategy?

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

A need

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

A for-profit organization

often called a business firm, is a privately owned organization such as Target, Nike, or Brita that serves its customers to earn a profit so that it can survive.

What are Competencies?

special capabilities—the skills, technologies, and resources—that distinguish it from other organizations and provide customer value.

What are the 5 P's?

that can be used by the marketing manager to solve a marketing problem. 1.Product = good, service or idea to satisfy consumer needs 2.Packaging = function of the packaging for product 3.Promotion = communication between buyer & seller 4.Price = what is exchanged for your product 5.Place = where you get that product to consumer

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.

What are some Technology Forces?

the third environmental force in Figure 3-2, refers to inventions or innovations from applied science or engineering research. Each new wave of technological innovation can replace existing products and companies. Some of the most dramatic technological changes occurring now, such as: Artificial intelligence capabilities. Automation such as autonomous cars, to delivery drones, to robots in the home and office. The Internet of Things (IoT)will become a reality as digital assistants such as Amazon's Alexa. Wearable technology

Brand strategies

• Brand Loyalty-A favorable attitude toward and consistent purchase of a single brand over time; results from the positive reinforcement of previous actions. • Reference Groups-People to whom an individual looks as a basis for self-appraisal or as a source of personal standards; affect consumer purchases because they influence the information, attitudes, and aspiration levels that help set a consumer's standards. EX: one of the first questions one asks others when planning to attend a social occasion is, "What are you going to wear?"