MKGT 330 exam 1

Target market selection process:

· 1. Identify the appropriate targeting strategy · 2. Determine which segmentation variables to use · 3. Develop market segment profiles · 4. Evaluate relevant market segments · 5. Select specific target markets

Marketing Research Process

1. Locating and defining issues of problems 2. Designing the research project 3. Collecting data 4. Interpreting research findings 5. Reporting research findings Hypothesis-an informed guess or assumption about a certain problem or set of circumstances. o Is based on all the insight and knowledge available about the problem or circumstances from previous research studies and other sources. o Accepted or rejected act as conclusions for the research effort. Reliability-A condition that exists when a research technique produces almost identical results in repeated trials o A reliable technique is not necessarily valid. Validity-A condition that exists when a research method measures what it is supposed to measure.

1.Failing to conduct research can help companies maintain a competitive advantage. 2.Dyson is known for product innovation and the creation of products that go beyond consumer expectations, such as the AirBlade hand dryer, AirMultiplier bladeless fan, and the Supersonic hair dryer. In order to develop and deliver products to consumers that are high in value and successful, the firm implements a variety of ________ activities in order to stay abreast of consumer trends and preferences and to determine the potential for success of new products. 3.If Little Caesars wants to determine the impact of different coupon offers on pizza unit sales, it needs to conduct 4.Survey and observation are considered secondary data collection techniques.

1.False 2.Marketing research 3.Experimental research 4.False

1.United Airlines introduced a new "basic economy" seat category to better compete with discount airlines like Southwest and Spirit. Which of the following aspects of the marketing mix is United likely altering? 2.A company's customers, employees, shareholders, suppliers, governments, communities, and competitors comprise its 3.Which of the following is NOT an example of the implementation of the marketing concept? 4Special K cereal is aimed at people concerned about their weight. These people represent the Special K 5.Dunkin' is introducing some of its products into supermarkets, vending machines, college campuses, and other locations to increase its product availability and convenience. One reason Dunkin' is doing so is to

1.Price 2.Stakeholders 3.McDonald's reduces the labor costs to produce its sausage-egg biscuits. 4.Target market 5.increase customer value

Buying Process

1.Recognize the problem 2. Develop product specifications to solve problem 3. Search for and evaluate possible products and supplies 4. Select product and supplier and order product 5. Evaluate product and supplier performance.

1.​A competitive advantage is created when a company matches its core competency to the opportunities it has discovered in the market. 2.Apple has been successful by anticipating what consumers would want in new technological advances, convenience, and ease of use. The introduction of the iPad was an example of a _____ for Apple, something that an organization does extremely well and may give a company an advantage over its competition. 3.Financial controls information will most likely be found in the performance evaluation section of the marketing plan. 4.​The long-term health of the firm depends solely on having products that generate cash and provide acceptable reported profits. 5.​A strategic business unit is not self-supporting in terms of sales, markets, production, and other resources.

1.True 2.Core Competency 3.True 4.False 5.False

1.A market segment profile describes the similarities among potential customers within a segment and explains the differences among people across market segments. 2.Surveys are sometimes used to forecast sales. 3.A disadvantage of the concentrated targeting strategy is that 4.Volkswagen markets its Atlas SUV to large families, its CC to those wanting a sports coupe, and its Jetta to young singles. What targeting approach is Volkswagen using? 5.Age, rate of product use, location, and gender are all examples of common

1.True 2.True 3.the firm's financial condition is tied to a single and specialized marketing mix. 4.Differentiated 5.segmentation variables.

Business Market (B2B):

A Business Market purchases items for business purposes. • Resale (Retail) • Produce other products • Use in general daily operations o A company that markets to another company must be aware of how its product will affect other firms in the marketing channel, such as resellers and other manufacturers. o Business products can also be technically complex, and the market often consists of sophisticated buyers.

Big Data

Big Data makes use of both data analysis and analysis techniques and frequently builds upon the data in enterprise data warehouses. The Characteristics of Big Data are commonly referred to as the Four V's o Volume of BIG Data (amount of data) o Velocity of Big Data (speed oat which data is generated o Variety of Big Data (Different sources/formats-may need additional processing) o Veracity of Big Data (quality of the data)

Influencers on the Business Buying Decision Process:

Environmental: Competitive and economic factors, Political forces, Legal and regulatory forces, Technological changes, and Sociocultural issues Organization: The company's objectives, Purchasing policies, Resources, and the size and composition of the buying center Interpersonal: The relationships among people in the buying center, Trust is crucial, Interpersonal dynamics and varying communication abilities may complicate processes Individual: Age, Personality, Education level, and Tenure and position in the organization

Quantitative vs, Qualitative Data

Quantitative data: Represented as a number, explains what, who where, when Qualitative data: Represented as words, Explains how. o Examples: Customer interactions, written survey, focus groups etc.

Data Collection

Secondary data: is information which has been collected in the past for some other primary reason. This is data that is already available. Often, this data is collected by someone. o Previous sales information o Data collected for other reasons. o Outside Data Information (Internet sources, government/community sources) Primary data: is information collected through original or first-hand research. Specifically designed to collect information about the current problem o Customer Survey's o Focus Groups o Customer Interviews o Observations

Swot Analysis

Swot Analysis-assessment of an organization's strengths, weaknesses, opportunities, and threats. o Strengths: Competitive advantages, or core competencies, that give the company an advantage. o Weaknesses: Limitations a company faces in developing or implementing a market strategy o Opportunities: Favorable conditions in the environment that could produce rewards for the organization if acted upon o Threats: Barriers that could prevent the company from reaching its objectives

Organizational Buying Processes:

Time required: New- task buying= much, Modified rebuy= medium, and straight rebuy= little Multiple Influence: New- task buying=much, Modified rebuy=some, and straight rebuy= little Review of suppliers: New- task buying=much, Modified rebuy=some, and straight rebuy=none Information needed: New- task buying=much, Modified rebuy=some, and straight rebuy=little

Marketing Envrionment

· The marketing environment, which includes competitive, economic, political, legal, and regulatory, technological, and sociocultural forces, surrounds the customer and the marketing mix. These forces can create threats to marketers, but they also generate opportunities for new products and new methods of reaching customers. These forces can fluctuate dramatically.

Segmentation

· The process of dividing a broad consumer market, normally consisting of existing and potential customers, into sub-groups of consumers based on some type of characteristics.

Reference Group Influencers:

Families, work-related groups, fraternities or sororities, civic clubs, professional organizations, church related groups. · Decision-Making Type: o Husband Dominant: Male head of household Lawnmowers, hardware and tools, stereos, automobile parts o Wife dominant: Female head of household Children's clothing, women's clothing, groceries, household furnishings o Autonomic: Equally likely to be made by the husband or wife, but not by both Men's clothing, luggage, toys and games, sporting equipment, cameras o Syncratic: Made jointly by husband and wife Vacations, TVs, living room furniture, carpets, financial planning services, family cars

Market segmentation 4 Characteristics

Geographic- "Where are they?" · Neighborhood · Within so many miles of a location · Postal or ZIP code · Area code · City · Province or state · Region · Country (if your business is international) Demographics- "What are they?" •Gender •Age •Income level •Marital status •Education •Race •Religion Psychographics- "Who are they?" •Personality •Attitude •Personal values •Lifestyle •Social class (upper, middle, lower, etc) •AIOs (Activities, Interests, Opinions) Behavioral- "Why are they?" •Benefits sought •Buyer readiness •Degree of loyalty to a brand/product •User status •Occasions

Survey Methods

Marketing researchers often employ sampling to collect primary data through: o Mail surveys, Telephone surveys, Personal interview surveys, Online surveys, Social Networking surveys, Observations, and Focus groups The survey method chosen depends on the o Nature of the problem or issue o Data needed to test the hypothesis. o Resources, such as funding and personnel, available to the researcher Gathering information through surveys is becoming increasingly difficult because fewer people are willing to participate.

Marketing:

The process of creating something, disturbing, promoting, and pricing goods and services, and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment. · The essence of marketing is to develop satisfying exchanges from which both customers and marketers benefit. · Organizations generally focus on their marketing efforts on a specific group of customers called a Target Market. A Target market is the group of customers toward which a company directs a set of marketing efforts. · American Marketing Association Definition: 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. · Merriam-Webster Definition: The process or technique of promoting, selling, and distributing a product or service. · Andrew Felix Definition: Everything that happens to a good, service, or concept after it has been established, designed or manufactured. o Robbie the bink

Explain why Marketing is important to our global economy. Marketing careers

· Marketing costs absorb about a half of each buyer's dollar. · Marking activities are performed in both business and nonprofit organizations. These activities help business organizations to generate profits, and they help fuel the increasingly global economy. · From 25 to 33% of all civilians in the United States perform marketing activities

Buying Behavior:

-Marketers attempt to understand buying behavior for several reasons: • Learn opinions and attitudes towards a firm's products • Learn what satisfies buyers • Determine what, where, when, and how consumers buy • Find ways to better position products and services • Gain a deeper understanding of factors that affect buying behavior

Questionnaire Construction

-Questions must be clear, easy to understand, and directed toward a specific objective. -Questions must be designed to elicit information that meets the study's data requirements. -The most important rule in composing questions is to maintain impartiality. o Avoid "leading" questions. (a question that prompts the desired answer) -Questions are usually of three kinds: open-ended, dichotomous, and multiple-choice.

Company Long-Term Health

-The long-term of an organization depends on having some products that generate cash and others that use cash to support growth -The major indicators of a firm's overall health are the o Size vulnerability of the cash cows o Prospects for the stars o Number of questions marks and dogs -If resources are spread too thin, the company will be unable to finance promising new product entries or acquisitions.

The buyer Center

-Users: Organizational members who frequently initiate the purchase process and/or generate purchase specifications, use the product, and evaluate performance relative to specifications -Influencers: Technical personnel who help develop product specifications and evaluate alternatives -Buyers: Select suppliers and negotiate terms of purchase and may also be involved in developing specifications -Deciders: Actually choose the products -Gatekeepers: Control the flow of information to and among the different roles in the buying center

1.​For most firms, the costs of marketing activities consume approximately what portion of the consumer's dollar? 2.It is a good idea to consider parents as part of the target market when marketing new children's lunchboxes that stay colder longer. 3.​Marketing efforts do not involve the design and development of products. 4.Coca-Cola has in recent years developed or acquired new non-cola products to appeal to changing consumer preferences for less sugar in their products. The most likely factor in this change is changes in 5.Amazon Prime has one of the highest customer loyalty ratings in the entertainment industry with a significant percentage of current video streaming subscribers continuing to renew their subscription with Amazon on a yearly or month-to-month basis. In addition, many customers have cancelled their cable or satellite subscriptions and rely almost exclusively on streaming services such as Amazon Prime and Netflix for their entertainment. Amazon Prime video streaming is available as part of Amazon's $99/year Amazon Prime suite of offerings that includes free 2-day shipping on many Amazon.com orders. Customers can also choose to pay by the month for $12.99/month. If a significant percentage of subscribers continue their service on an annual basis, Amazon is able to build a stable revenue stream based on repeat purchasers. A quick snapshot of one customer revealed that the customer had subscribed to Prime for five years and generated over $700 in revenue to Amazon. Which of the following marketing terms best captures the importance of customer loyalty and its impact on Amazon?

1. 1/5 2.True 3.False 4.the sociocultural forces of the marketing environment. 5.Customer lifetime value

1.A targeting strategy in which an organization targets a single market segment using one marketing mix is called a(n) ____ strategy. 2.Demographic variables such as income and occupation, as well as how people spend their time and the importance of things in their surroundings, are all factors considered in ____ segmentation. 3.A business advantage of the concentrated targeting strategy for any company is that it 4.A person may perform more than one role related to making buying decisions 5.Just as attitudes are learned, they can be changed.

1. Concentrated 2.Lifestyle 3.allows a firm to develop a special marketing mix for a single market segment. 4.True 5.True

1.Peet's Coffee will spend $500,000 marketing its newest latte drink. It expects to sell 1 million of these lattes over the next year. These 1 million lattes are a _____________ for Peet's Coffee. 2.The ways in which customers use a particular product may be a basis for segmenting the market. 3.After an organization has determined which of the many segmentation variables it will use, the next step in the target market selection process is 4.You are shopping for a laptop or tablet to use for taking notes, research, and studying. In this case, you belong to a(n) 5.Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called ____ variables.

1. Sales forecast 2. True 3. developing market segment profiles. 4.Consumer Market 5.Segmentation

1.​Consumers buying products online have dramatically affected the ____ variable of the marketing mix. 2.Deciding to add gel insoles to its running shoes would be a change in the ____ element of the marketing mix for Nike. 3.Value = customer costs−customer benefits.

1.Distribution 2.Product 3.False (switch the customer and benefits around)

1.Consumer fraud is any behavior that violates the norms of society. 2.People determine their own lifestyles, but marketers can shape them. 3.An attitude consists of one's evaluation of his or her feelings and behavioral tendencies toward an object or idea. 4.A business customer evaluates the characteristics and quality of the products being considered to determine whether they 5.Which method of business buying is most likely to be used when the products being purchased are standardized based on certain characteristics?

1.False 2.False 3.True 4.meet specifications. 5.Description

1.The four categories of consumer markets are producer, reseller, government, and institutional. 2.Many suppliers and their customers invest time and resources to build and maintain mutually beneficial relationships which are often called 3.Institutional markets are 4.The second stage in the business buying decision process is to 5.After deciding to order replacement parts for aging machinery, the buyer for a construction company examines catalogs and trade publications looking for these parts. The buyer is at which stage in the business buying decision process? 6.Value analysis examines quality, design, and materials as well as current and potential vendors. 7.Seattle Grace Hospital administrators decide to redo its kitchen with new flooring, cabinets, counters, and appliances. The hospital compiles a description of the project and then asks sellers to submit bids. After determining the most attractive bids, the hospital will then work with two or three companies to determine which will get the contract. This is an example of using ____ for a purchase decision. 8.All of the following are important concerns of business customers except

1.False 2.Partnerships 3.organizations that seek nonbusiness goals. 4.develop product specifications. 5.Product-supplier search and evaluation 6.False 7.Negotiation 8.obtaining products that exceed specifications to ensure the best possible product performance.

1.​The actual physical production of goods is a marketing activity. 2.Ace Manufacturing Company is not attracting sufficient customers. It has long defined itself as being a maker of shelving products. To improve its sales and long-term viability, it should perhaps consider redefining itself as 3.Kraft made the announcement that it was eliminating artificial food additives. Which of the following most likely influenced Kraft's decision? 4.​The marketing mix is built around the 5.Which of the following statements about marketing environment forces is NOT true?

1.False 2.helping potential customers satisfy their needs with Ace shelving products. 3.Marketing environment 4.Customer 5.They do not influence customers' reactions to a firm's marketing mix.

1.For which of the following products would a consumer most likely use limited decision making? 2.Marketers must consider the different nationalities represented within the Hispanic and Asian-American subcultures because of the unique culture, history, and buying patterns of each ethnic group. 3.Once initiated, the consumer buying decision process always leads to a purchase. 4.What stage of the consumer buying decision process comes after problem recognition? 5.A consumer belongs to only one subculture

1.Hair Dryer 2.True 3.False 4.Information search 5.False

1.________ data, or the facts and figures that have already been collected about the Coffee Collective prior to the research at hand, would include information relating to budgets, previous marketing activities, sales and customer communications. 2. If Martha is trying to determine whether or not she should offer open mic night at the Coffee Collective as part of the coffee experience, this would be an example of _____________. 3. Which of the following would allow Gabby the most flexibility in asking probing questions about why customers would want an open mic night? 4. Gabby used a structured process and gathered data from a larger and more random sample than the group Marco used. As a result, Gabby's data should have more _______ than Marco's data.

1.Secondary 2.Defining the problem 3.Personal interviews 4.Validity

1.​Successful business organizations should take actions to convert internal weaknesses into ____ and external threats into ____. 2.​Business decisions made in creating a marketing mix 3.Regardless of how sales are measured, the basic unit of measurement is the 4.ACME was not the first to bring a selfie stick to market, but it is now introducing a selfie stick that can also be used as a cane, an umbrella, and a knife for self-defense. Which of the following is ACME benefiting from as a late mover? 5.When Coca-Cola initiated a telephone survey to determine the effectiveness of a recent advertising campaign, one of the questions the interviewer asked was, "Have you ever heard of a cola made with zero-calorie, plant-based stevia?" This is an example of which of the following kinds of questions?

1.Strengths and opportunities 2.​are only as good as the organization's understanding of the needs of the target market. 3.Sales Transaction 4.Being able to improve on the product design and marketing strategy 5.Dichotomous

1.Your company is seeking to hire a consultant to assist with completing a specialized marketing research project that is focused on tech-savvy, young consumers. One of the firms describes its state-of-the-art marketing research system as follows: "It's a social intelligence system that provides insightful, actionable information about what people are saying about your brand. It integrates information from millions of sources and empowers you to, among other things, help your organization understand and even shape relevant conversations in the social media sphere." 2.Decreasing sales, increasing expenses, or decreasing profits 3.If Kashi, the maker of Go Lean breakfast cereal, wants to know what percentage of customers examine product labels before making a product selection in the grocery store, it can best gain this information through 4.In reporting marketing research findings, the researcher should 5.A few months ago, Costco adopted a new brand of organic cheese. However, sales have been lower than expected. Costco decides to survey some of its customers at its stores to try and understand this issue. It set up demonstrations in several stores and asked consumers to try samples of its organic cheese product. It then asked them how they liked the cheese. The majority of respondents indicated they were very satisfied with the cheese's flavor. This occurred in trial after trial. Costco is confused. Satisfaction with the cheese is positive, yet sales continued to remain low. They ask you, a marketing consultant, why you think this is. You reply that while the tests had strong ___________, they did not have strong ____________. You recommend that Costco survey customers on their purchase intentions rather than their satisfaction with the product's taste.

1.This company's expertise and information systems are a good fit for the project. 2.are examples of symptoms that point to larger problems. 3.Observation 4.provide explanations in language that those who use the report to make decisions can understand. 5.reliability; validity

1.Road King Cycles Inc. is a manufacturer of bicycles and sells its bikes to retail outlets that serve the consumer market. Road King bicycles are priced at $900 and over and are typically sold to consumers who are recreational riders or those aspiring to compete in amateur cycling or triathlon events. Road King has enjoyed a steady stream of revenue from its line of road bicycles which are more traditional, multispeed bicycles for those who enjoy long rides on city or rural roads. Sales of road bikes are relatively stable and Road King does little to market the bikes to consumers because it has a dominant share of the market. However, hybrid bikes represent a growing segment as younger consumers prefer the upright riding position of the bikes and they can be utilized for either road or mountain biking. Road King is introducing a hybrid line of bikes and supporting it with extensive advertising in specialty magazines as well as social media marketing. Road King believes the category of hybrid bikes is growing but its market position is not as strong as other manufacturers, such as Cannondale. Using the Boston Consulting Group's Growth Share Matrix, road bicycles would be categorized as __________ while hybrid bikes would fall into the ___________ category. 2.Herbal Organics used actor and former NFL player Sweet Dave Brown to act as its spokesperson as the "Herbal Organics Man." It filmed humorous videos of the actor that went viral online. Herbal Organics saw sales of its deodorants increase substantially from the previous year. What type of competitive growth strategy did Herbal Organics use? 3.The marketing plan is 4.​Which of the following statements is incorrect? 5.Marketing cost analysis uses sales figures to evaluate a firm's current performance.

1.cash cows; question marks 2.Market Penetration 3.a written document detailing activities to be performed to implement and control marketing actions. 4.​Strategic planning begins at the marketing level and proceeds through business-unit and corporate levels. 5.False

Marketing Plan

Marketing Plan A written document that specifies the activities to be performed to implement and evaluate the organization's marketing strategies. A clear and well-written marketing plan: o Provides a uniform marketing vision for the firm and is the basis for internal communications. o Delineates (describes) marketing responsibilities and tasks and outlines schedules for implementation. o Presents objectives and specifies how resources are to be allocated to achieve them. o Helps marketing managers monitor and evaluate the performance of a marketing strategy. o Organizations should make sure that the marketing plan aligns with corporate and business unit strategies and is accessible to and shared with all key employees.

Sources of Information:

Marketing sources · Personal Sources: Salespeople, Others from supplier firms, and Trade shows · Impersonal Sources: Online events and virtual trade shows, Sales literature and catalogs, Emails and newsletters, Website content (blogs, videos, case studies, and white papers), social media Nonmarketing sources · Personal Sources: Buying center members, Outside business associates, Consultants and outside experts. · Impersonal Sources: Outside researches, Rating services, Trade associations, News publications, Product directories, Online communities, Online review sites, and Social media

4 Types of Business Markets (B2B):

Producer, Reseller, Government, and Institutional Producer Markets-Organizations that purchase products to make profits by using them to produce other products or using them in their operations · Include buyers of raw materials, as well as purchasers of semi-finished and finished items, used to produce other products. · Producer markets include a broad array of industries. Reseller Markets- Intermediaries that buy finished goods and resell them. Government Markets-Federal, state, county, or local governments that buy goods and services to support their internal operations and provide products to their constituencies. Institutional markets - Organizations with charitable, educational, community, or other nonbusiness goals (non-profit businesses) • Churches, Hospitals, Charities, and Schools

Purchase Behavior:

Routinized response behavior - A consumer decision-making process used when buying frequently purchased, low cost items that require very little search-and-decision effort. o Product cost: Low o Search effort: Little o Time spent: Short. o Brand preference: More than one is acceptable, although one is preferred. Limited decision making - A consumer decision-making process used when purchasing products occasionally or needing information about an unfamiliar brand in a familiar product category. For example, new toothpaste brand. o Product cost: Low to moderate o Search effort: Little to moderate o Time spent: Short to medium o Brand preference: Several Extended decision making - A consumer decision-making process employed when purchasing unfamiliar, expensive, or infrequently bought products. For example: buying expensive things like a house or car o Product cost: High o Search effort: Extensive o Time spent: Lengthy. o Brand preference: Varies, usually many. Impulse buying - An unplanned buying behavior, involving no conscious planning, resulting from a powerful urge to buy something immediately. For example, junk food. No planning and all and you do it.

Value

· A customer's subjective assessment of benefits relative to costs in determining the worth of a product. o Customers' benefits include anything a buyer receives in an exchange. o Customer costs include anything a buyer must give up obtaining the benefits the product provides, including cost, time, effort, and risk. o A product that demonstrates value usually has a feature or an enhancement that provides benefits: *Lowest price *Convenience *Availability

Target Market

· A group of people or organizations for which a business creates and maintains a marketing mix specifically designed to satisfy the need of group members. · The strategy used to select a target market is affected by: o Target marked characteristics. o Products attributes o The organization's objectives and resources · Targeting marketing involves breaking a market into segments and then concentrating your marketing efforts on one or a few key segments · Target market is in the middle of the marketing mixes because different targeting markets have different marketing mix.

Mission statement Levels of strategic planning

· A long-term view, or vision, of what the organization wants to become. o The goals of any organization should derive from its mission statement o An organization's mission statement should answer two questions: *Who are our customers? *What is our core competency? *Usually under 250 words. -Strategic planning often begins at the corporate level and proceeds downward to the business-unit and marketing levels.

Market Types of markets

· A market is a group of individuals and/or organizations that have: o A desire or need for products in a product class. o The ability, willingness, and authority to purchase such products. · Consumer market: Purchasers and household members who intend to consume or benefit from the purchased product and do not buy products to make a profit o Also referred to as business-to-consumer (B2C) markets o Each of us belongs to numerous consumer markets for all the purposes we make · Business market: Individuals, organizations, or groups that purchase a specific kind of product for resale, direct use in producing other products, or use in general daily operations o Also referred to as business-to-business (B2B), industrial, or organizational markets o Can be sub-classified into producer, reseller, government, and institutional markets.

Differentiated Targeting

· A strategy in which an organization targets two or more segments by developing a marketing mix for each segment mix. o For example, sunscreen products

Understanding the market concept

· An organization should try to provide products that satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals. Customer satisfaction is the marketing concept's major objective. o A firm that adopts the marketing concept must satisfy not only its customers' objectives but also its own objectives.

Before and after deciding to produce and sell a bike

· Analyze Needs: What do people need. · Determine Wants: What do the people want. · Identify Competition · Predict Designs · Determine where: Where are you going to sell this product · Decide promotion: how to tell people about this product. · Estimate price: people are willing to pay for it. · Provide service: instructions and warranty and support.

Universal function of marketing

· Buying · Selling · Storing: Why is V-day stuff available today? have shelf space, ready to go when we need it and available, and remind us to do it. · Transporting · Standardization and Grading: Think about produce when you do that · Financing · Risk Taking, why? you don't know if your product is going to work out Market Information: Understanding the people and where they live, the demographics

Stakeholders

· Constituents who have a "stake," or claim, in some aspect of a company's products, operations, markets, industry, and outcomes o Customers (Customer feedback and fund everything you do, if you lose them not as successful), Employees (Need to get paid), Investors and Shareholders (want their money back), Suppliers (Bring in Revenue), Government(taxes and following regulation), Communities (property value, environmental concerns, give back to communities), Competitors (Ben and Jerrys, Blue Moon, and Kemps, how to know industry, can be on a same side on an issue and team up and also supply the need of the market) o Ice cream shop example and why it's important to these stakeholders.

Decision Making Process:

· Consumer buying decision process-A five-stage purchase decision process that includes. o Problem recognition-First thing for buying an item is because we have a problem. o Information Search o Evaluation of Alternatives o Purchase o Post purchase Evaluation 1. Problem Recognition · Problem recognition occurs when a buyer becomes aware of a difference between a desired state and an actual condition. o The speed of consumer problem recognition can be quite rapid or rather slow. o Sometimes a pension has a problem or need but is unaware of it. *Marketers use sale personnel, advertising, and packaging to help trigger recognition of such needs or problems. 2. Information Search · After recognizing the problem or need, a buyer will decide whether to pursue satisfying that need. o An information search has two aspects: *Repetition, a technique often used by advertisers, increase consumers' recall o External search-an information search in which buyers seek information from sources other than their memories. 3. Evaluation of Alternatives · Consideration set (evoked set)-A group of brands within a product category that a buyer views as alternatives for possible purchase. · Evaluative Criteria-Objective and subjective product characteristics that are important to a buyer o Price o Quality o Features o Style/Color o Trends o Warranty o Compatibility 4. Purchase · In the purchase stage, the buyer. o Chooses to purchase the product or brand yielded by the evaluation of alternatives. o Picks the seller from which they will buy the product. o Negotiates the terms of the sale. o Settles other issues, such as price, delivery, warranties, maintenance agreements, installation, and credit arrangements. o Makes the actual purchases or terminates the buying decision process. 5. Post-Purchase Evaluation · After the purchase the buyer evaluates the products to ascertain if their actual performance meets expected levels. o The outcome of this stage is either satisfaction or dissatisfaction. o Cognitive dissonance-A buyer's doubts shortly after a purchase about whether the decision was the right one. o Most likely to arise when a person recently bought an expensive, high-involvement product that is found to be lacking some of the desirable features of competing brands. o A buyer who is experiencing cognitive dissonance may attempt to return the product or seek out positive information, such as reviews, to justify choosing it.

Marking is more than simply advertising or selling a product; it involves:

· Developing and managing a product that will satisfy customer needs. · Promoting to help customers learn about the product and determine if the product will satisfy their needs · Making the product available in the right place · Pricing the product at an acceptable level for buyers · Communicating information to help customers determine if the product will satisfy their needs.

Concentrated Targeting:

· Heterogeneous market: A market made up of individuals or organizations with diverse needs for products in a specific product class **Some organizations use one market segmentation to best satisfy their customers.** o Market segmentation: The process of dividing a total market into groups consisting of people or organizations with relatively similar product needs in order to design a marketing mix that matches those needs. o Market segment: Individuals, groups, or organizations, sharing one or more similar characteristics that cause them to have similar product needs. 1.A targeting strategy in which an organization targets a single market segment using one marketing mix.

Undifferentiated-Mass market

· Homogeneous market: A market in which a large proportion of customers have similar needs for a product. · A strategy in which an organization designs a single marketing mix and directs it at the entire market for a particular product. · The organization must be able to develop and maintain a single marketing mix that satisfies the customer's needs.

Marketing is important

· Important to every customer · Important to your job (and your next job, too) · Affects innovation and the standard of living. Motivates someone to create a better product or service. Example Iphone vs Android

Situational influences:

· Influences that result from circumstances, time, and location that affect the consumer buying decision process. o Physical Surroundings: o Social Surroundings: o Time Perspective: o Reason for Purchase: o Buyer's Momentary Mood and Condition

Market/Market Share Apple Products:

· Market-a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products · Market share: The percentage of a market that actually buys a specific product from a particular company. -Stars: Dominant share of the market, good prospects for growth, use more cash than they generate to finance growth, add capacity, increase market share -Cash cows: Dominant share of the market, low prospects for growth, and generate more cash than is required to maintain market share. -Dogs: Subordinate share of the market, and low prospects for growth -Question marks: Small share of a growing market and require a large amount of cash to build market share

Marketing-What's it all about?

· More than selling and advertising · Bike example: Huffy white heat. Right size, trendy colors, adjustable speed, cool name, and design features. Targeted towards middle school kids and put it in places looking for middle school kids would look to buy a bike, like Walmart, Kmart or Target. 1992: $99. Put promotions on Nickelodeon.

Component of Strategic planning

· Organizational mission and goals · Corporate and business-unit strategies · Analysis of organization's strengths and weaknesses. Identification of organization's opportunities and threats · Happens from the top-down. o Marking: Objective, strategy, and marketing plan o Production: Objectives, Strategy, and production plan o Finance: Objectives, strategy, and finance plan o Human resources: Objective, strategy, and human resources plan · Often begins at the corporate level and proceeds downward to the business-unit and marketing levels o Mission statement, corporate strategy, business strategy, marketing strategy, marketing mix elements: 4 Ps

Marlow's Hierarchy of Needs

· Physiological Needs: Things that we need to live. Food, water, sleep, warmth. Shelter · Safety Needs: Secondary things we need to live. Medicine, general feelings, protection, and comfort. · Social Needs: Friendship, bonding love, the ability to connect to others. · Personal needs: Important to us specifically. I need this for myself. o Why pyramid. Have to have the foundation first. Got to fulfill the first one to move forward

Marketing Mix (The 4 Ps)

· Product: deals with researching customer's needs and wants and designing a product that satisfies them. Can be a good or service, or idea. · Place (Distribution): Marketing managers tries to make products available in the quantities desired to as many customers as possible. · Promotion: relates to the activities used to inform individuals or groups about an organization and its products. · Price: involves decision and actions associated with establishing pricing policies and determining product prices · Why might the same product have multiple marketing mixes? Different target audiences. o Before they can create a marketing mix, they must collect in-depth up-to-date information about the customer's needs. o These variables of the marketing mix are controllable because they can be changed but are limits on how much they can alter.

Identifying the importance of building customer relationships

· Relationship marketing involves establishing long-term, mutually satisfying buyer-seller relationships. · Customer relationship management (CRM) focuses on using information about customers to create marketing strategies that develop and sustain desirable customer relationships Requires identifying buying behavior and using that information to focus on the most promising and profitable customer. · Knowing a customer's potential lifetime value can help marketers determine how to best allocate resources to marketing strategies to sustain that customer over a lifetime.

Marketing History

· Simple Trade Era, focus: sell surplus. · Production Era, focus: increase supply. · Sale Era, focus: beat competition. 1930s-60s · Marketing Department Era, focus: coordinate and control. This is advertising and public relations. The first ever promotion was a sign. 1950s-1980s · Marketing company Era, focus: long-run customer satisfaction. 1980s-today. Marketing is not just a department, it's an entire company. Marketing is everything that happens to the product before it's released to the public.

Consumer Buying Behavior:

· The Decision processes and purchasing activities of people who purchase products for personal or household use and not for business purposes.

Strategic Market Management Strategic Planning

· The process of planning, implementing, and evaluating the performance of marketing activities and strategies, both effectively and efficiently o Effectiveness: the degree to which long-term customer relationships help achieve an organization's objectives o Efficiency: minimizing the resources an organization uses to achieve a specific level of desired customer relationships. It means we want to have the most number of relationships with customers without spending more money to maintain. · The process of establishing an organizational mission and formulating goals, a corporate strategy, marketing objectives, and a marketing strategy

Exchange

· The provision or transfer of goods, services, or ideas in return for something of value · Four conditions must happen for an exchange to happen. o Two or more individuals (Buyer & Seller), groups, or organizations must participate, and each must possess something of value that the other party desires. o The exchange should provide a benefit or satisfaction to both parties involved in the transaction. o Each party must have confidence in the promise of the "something of value" held by the other o To build trust, the parties to the exchange must meet expectations.

Differences Between Businesses and Consumers:

·Business & organizational markets are different: Multiple buying influence, Fewer but larger customers, Economic needs are primary, Behavioral needs still matter, Societal concerns can matter, Ethical issues arise, purchasing managers are specialists, and Buyers follow procedures.