Marketing 302 Chapter One

Social Factors.

Social factors take in a wide swath of elements, such as cultural norms and expectations, health consciousness, population growth/decline, the age distribution of a population, and even career attitudes. Let's take one of these factors—age distribution—and examine how it impacts marketing. Baby boomers (born between 1946 and 1964) comprise approximately a quarter of the US population. It's largely as a result of this group's aging and retirement that active adult communities such as Del Webb and others have sprung up across the nation.33

Which of the marketing eras or concepts is most closely related to sustainability and environmental consciousness? Production concept Marketing concept Societal marketing concept Sales concept

Societal marketing concept

The production concept

Spurred on by the use of steam power, the Industrial Revolution began in the United States by the middle of the 19th century. This concept assumed that consumers were mostly interested in product availability and price, not necessarily product features. As a result, companies concentrated on high production, low costs, and mass distribution. In other words, to use the oft-used line from the movie Field of Dreams, "If you build it, they will come."

Identifying Customer Needs

Stated Needs. Real Needs. Unstated Needs. Delight Needs. Secret Needs.

The extent to which the supply chain adds value to our marketing strategy is best addressed by our evaluation of which of the 5Ms? Materials Money Machinery Minutes

materials

External interested parties

Include those outside the company, such as customers, creditors, suppliers, distributors, and even society at large. External groups don't have a direct say in the company's decision-making process.

Machinery (Equipment)

Machinery consists of the equipment and/or physical assets used to process materials into finished or semifinished products

Which of the 4Ps focuses on determining how much consumers would be willing to pay for a product or service? Product Price Place Promotion

Price

Marketing Mix (4 P's)

Product, Price, Place, Promotion

Time Utility

the increase in customer satisfaction gained by making a good or service available at the appropriate time Example -Consider how many stores are open evenings, weekends, or even 24/7 to make it convenient for customers to shop there!

The buyer

The buyer (or customer) initiates the exchange process. The buyer (who has a want or need) is the individual or business who is willing to pay money or provide other personal resources to satisfy this need or wan

Difference between customer and consumer

The customer is the individual or business that purchases the product or service. The consumer is the user of the product or service. To put this concept in simple terms, if a grandmother buys a toy for her grandson, she is the customer; her grandson (who will use the product) is the consumer. In the case of going out for lunch, you're both the customer and the consume

desired object

The desired object is the product or service itself. It may be a physical good, service, or experience that consumers expect will satisfy their wants and/or needs.

Customers.

Understanding who your customers are will enable you to effectively reach them, whether online, locally in retail stores, or internationally.

Unstated Needs

Unstated needs are what the customer also expects but doesn't ask for. Once again, using our phone example, the consumer may expect but not express the desire for good service from the carrier and/or the big box store.

. ________ is/are the benefit(s) to the customer or consumer relative to the cost of the product or service. Value The exchange process Stated needs Expectations

Value

Example of Company Where "Happiness" is part of organizational culture

Zappos, where happiness is at the core. Founder Tony Hsieh wrote a book on the topic and has said, "We're willing to give up short-term profits or revenue growth to make sure we have the best culture."

Customer relationship management is accomplished by all of the following EXCEPT ________. establishing and tracking customer interactions finding ways of improving customer satisfaction from prior customer experiences communicating with customers in a personalized way offering the lowest price of all the companies on the market

offering the lowest price of all companies on the market

Coca-Cola's mission is to refresh the world, and to that end, it has ensured that you can buy a Coke product at numerous locations—vending machines, convenience stores, restaurant fountains, stadiums, etc. What type of utility has marketing created through this process? Form utility Time utility Place utility Possession utility

place utility

A program that offers discounts and special incentives designed to attract and retain customers is called a ________. customer loyalty program sweepstakes discount plan CRM software

customer loyalty program

In the exchange process, the ________ is the individual who purchases the product or service, and the ________ is the individual who actually uses the product or service. buyer; seller buyer; customer customer; consumer consumer, customer

customer; consumer

. ________ needs are those that provide the "wow" factor in a customer's purchase. Stated Real Unstated Delight

delight

ethical marketing

ethical marketing involves companies not only trying to market their products and services but considering how society will benefit from the introduction of those offerings

Components of the Macro-Environment

factors can be used to understand current external influences so that marketers can more easily identify what might change in the future, mitigate the identified risks, and take advantage of competitive opportunities PESTLE analysis. PESTLE is an acronym for political, economic, social, technological, legal, and environmental factors

Types of Utility

form, place, time, possession

What activities can be defined as marketing

identifying consumer needs anticipating consumer needs satisfying consumer needs profitability

Customer retention

is a closely related concept; it refers to a company's ability to transform new customers into returning customers.

Organizational culture

is comprised of the shared values, attitudes, expectations, norms, and practices that guide the actions of all within the company.

the societal marketing concept

is simple. Companies make good marketing decisions by considering not only consumers' wants and needs but additionally the balance between those wants and needs and the company's capabilities and society's long-term interests

The seller

is the individual or organization that supplies the need-satisfying product, service, or experience. Once again, in the lunch example, the seller would be the dining hall or the restaurant.

Marketing Definition

made up of every process involved in moving a product or service from the organization to the consumer. It includes discerning the needs of customers, developing products or services to meet those needs, identifying who is likely to purchase the products or services, promoting them, and moving them through the appropriate distribution channels to reach those customers.

"Does marketing satisfy needs, or does it create needs?

marketing does not create needs; rather, it opens consumers' eyes to their wants, and it's up to marketers to understand those wants in order to guide consumers on the path to purchasing their products or services. Marketing creates value, and value speaks to the satisfaction of customer needs and the benefits customers receive from the product. It's the customer, however, who ultimately determines how well the product fulfills their needs and how much value the product creates.

Evolution of Marketing

production concept product concept sales concept marketing concept societal marketing concept

The Exchange Process

the act of obtaining a desired product or service from an individual or business by providing in return something of value

value

the benefit to the customer or consumer relative to the cost in the exchange. In other words, value is the monetary worth of the benefits the customer receives in exchange for the product or service.

Components of microenvironment

the company, suppliers, marketing intermediaries, competitors, general public, customers

. If you wanted to fill a gap in the marketplace, you would have to carefully consider ________ to see what is already available on the market. the competition the customers the public the resellers

the competition

How does marketing benefit external parties?

1. Marketing does for consumers. It draws out their needs, creates new demand, locates untapped opportunities, and determines the possibilities of selling new products. 2. Marketing creates form, time, place, and possession utilities for the company's goods and services.

three very tangible ways that your company's culture can make a positive impact on marketing:

1. Branding and marketing efforts emanate from the organization's core values and culture and guide the organization's marketing message. 2 .A strong culture strengthens your marketing message because it gives prospective customers a better idea of the values of your business, and customers who know what you believe and value are much more likely to do business with you. 3. A strong organizational culture is also key in attracting and retaining employees

The Value Proposition

A value proposition identifies the quantifiable benefits that customers can expect when they choose to purchase your company's product or service. A value proposition is, in effect, a promise from the company to the customer, and it can serve as a competitive differentiator to motivate customers to purchase your company's products or services. In other words, your value proposition should bring together in a brief, concise statement what your customer wants and/or needs and how your product or service will meet those wants and needs better than your competitors.40

place utility

Adding value to products by having them where people want them. Example - Consider the ease a company like Uber Eats adds to your life when you're craving tacos in the middle of the night and you don't feel like getting dressed and driving to go get them. You can have your food delivered to you!

General Public.

Because companies provide their offerings in communities that support them, they have an obligation to satisfy those communities. There's an old saying that "perception is reality," so marketers' actions must be evaluated through the perceptual lens of those communities, because the public's perception of you—your reputation—is essential to your success.

Examples of value propositions

Bill Ragan Roofing: "Let us take the stress of roof repairs or a roof replacement off your shoulders." Applied Educational Systems (AES): "Spend your time connecting with students, not planning and grading" DuckDuckGo: "Tired of being tracked online? We can help." HelloFresh: "Take the stress out of mealtime."

Sales Concept

By the 1950s, mass production had become the norm rather than the exception. Competition had increased over the years, and there was little unfulfilled demand in the marketplace. Marketing evolved from simply producing products that customers wanted to trying to persuade customers to buy through advertising and personal selling.

The Role of CRM in Building Customer Equity

CRM isn't a one-way communication street to customers. It's a two-way street that allows customers to define and consequently shape offerings in terms of their requirements. This paves the way for open, honest dialogue that can ultimately lead to benefits to customers, thus resulting in higher customer equity.

What do you call the process of managing customer information in order to maximize brand loyalty? Marketing Customer relationship management Consumer retention management Branding

Customer relationship management

Delight Needs

Delight needs are those that provide the "wow" factor. These needs, like unstated needs, can make some products more desirable than others if they meet those needs. Going back to our phone example, delight needs can be something like a phone case or other promotional gift.

At which step in the marketing process would the lifetime values to a company's customers be considered? Developing a customer-driven marketing strategy Delivering high customer value Growing profitable customer relations Capturing value from customers

Developing a customer-driven marketing strategy

Possession Utility

Doing whatever is necessary to transfer ownership from one party to another, including providing credit, delivery, installation, guarantees, and follow-up service. Example - many automobile manufacturers offer low (or sometimes no) interest rates on car loans to make it easy for you to walk out the door with a new set of car keys. Possession utility also encompasses the pride or satisfaction you get from owning a new product, such as a great-fitting pair of running shoes or a smartphone with all of the features you've been wanting.

Economic Factors.

Economic factors play a huge role in terms of a company's prospects in a market. For example, economic factors affect pricing and can even influence the supply/demand curve for a product or service. For example, high inflation causes consumers to have less spending power, which translates into lower sales and revenue. In 2022, consumers experienced both product shortages and higher prices, blamed largely on COVID-19, Russia's war on Ukraine, and the availability of certain commodities, such as corn, sunflower oil, and wheat.32

Which of the following is not an external interested party? Employees Customers Suppliers Society

Employees

Internal interested parties

Entities that reside within the organization and that affect—or are affected by—the actions of the company. These entities include employees, owners, managers, and investors (shareholders).

The product concept

From the 1920s until the 1950s, the product concept dominated. With product availability a thing of the past, consumers began to favor products that offered quality, performance, and/or innovative features. As a result, companies concentrated on making superior products and improving them over time. One of the problems with this type of thinking is that marketers may fall in love with a product (known as "marketing myopia") and may not realize what the market truly wants or needs.

What company has market dominance by creating optimal integration of marketing mix

Gatorade - dominates sports drink market 67.7% market share Saw exercise boom coming, created sports drink Lured back consumers who had concerns about sugar with Gatorade Zero Maintains market share lead by implementing competitive pricing Gatorade has continued to pump marketing dollars into advertising campaigns. For example, in 2020 it launched an iconic advertising campaign that featured some of the world's "greatest of all time (GOAT) athletes"

Environmental Factors.

In the context of a PESTLE analysis, environmental factors refer to variables affecting the physical environment, like climate change, pollution, the scarcity of raw materials, and the growing concern over companies' carbon footprints.

How does CRM impact customer loyalty and retention?

Leveraging Customer data Enhanced Customer communications Asserting Customer Needs Gathering Feedback Managing Customer Loyalty Patterns

. ________ consist of third-party sellers such as retailers, wholesalers, and other resellers in the distribution channel. Suppliers Market intermediaries Partners Customers

Market Intermediaries

Which of the following provides the most complete definition of marketing? Marketing creates value. Marketing is made up of every process involved in moving a product or service from your organization to the consumer. Marketing includes distribution decisions. Marketing is about building relationships.

Marketing is made up of every process involved in moving a product or service from your organization to the consumer

Materials (production)

Materials consist of the inputs needed to produce goods and services.

5Ms of marketing

Minds (Staffing) Minutes (Time) Machinery (Equipment) Materials (Production) Money (Finance)

Market Intermediaries.

Often, products are distributed by third-party sellers such as retailers, wholesalers, and others in the distribution channel Retailers (like Walmart or Target) purchase large quantities of goods from producers and then sell smaller quantities to end customers for personal use or consumption. Wholesalers purchase large quantities of products from producers and then sell to smaller businesses such as retail stores. A good example of a wholesaler is Gexpro, which sells electrical supplies for the construction industry.

Customer Loyalty

Ongoing positive relationship between a customer and a business.

Types of CRM software

Operational. Operational CRM software deals with three types of operations: marketing, sales, and service automation. Operational CRM software is intended to assist businesses in automating how they approach leads and potential customers in order to convert those potential customers into actual customers.47 Analytical. Analytical CRM software is all about data management and analysis. The software is designed to collect, organize, and analyze the inputted data, providing management with insights needed to better understand market trends, understand customer needs and wants, and make data-driven strategic decisions.48 Collaborative. No business functions on an island. When businesses share customer data with one another, they gain insights and additional perspectives on customer behavior that is mutually beneficial. This collaboration allows each business to obtain information that it would not otherwise have access to

The marketing environment defined

Organizations don't operate in a vacuum. They're not self-contained, self-sufficient machines; rather, they are complex systems that require interaction with facets of both their internal and external environments in order to survive and prosper.

Money (Finance)

Perhaps second only to staffing, money is a very critical resource because it's used to acquire and/or hire other resources.

. DiJuan, a marketer for a soft drink company, ensures that his company's products are available in numerous locations—vending machines, convenience stores, restaurants, and supermarkets. Which element of the 4Ps is DiJuan addressing? Product Price Promotion Place

Place

Which of the 4Ps of marketing focuses on how and where to deliver the product to the consumer most likely to buy it? Product Price Place Promotion

Place

1. Which of the following is NOT one of the 4Ps of marketing? Product Price Place Positioning

Positioning

Which of the following accurately represents the evolution of marketing? Production, product, sales, marketing, societal Product, sales, production, marketing, societal Marketing, production, sales, societal, product Societal, production, sales, marketing, product

Production, product, sales, marketing, societal

.You're a marketer trying to determine which trade shows you might want to include in your marketing mix. Which element of the marketing mix would address this concern? Product Price Place Promotion

Promotion

Real Needs

Real needs are one level above stated needs; they are more specific and define the parameters that are immediate to defining and fulfilling the need. In other words, real needs are what the stated needs actually mean. What are our phone buyer's real needs? Are they looking for a phone with long battery life, a high-resolution camera, or a lot of internal memory?

Utility

Refers to a product's usefulness to customers so that they are convinced enough to make a purchase. In other words, when you hear "utility" in marketing, think "usefulness to customers."

Secret Needs

Secret needs are those that a customer may not state or realize but can be one of the main reasons for choosing a particular product to fulfill the basic stated need. Do customers want a new cell phone as a status symbol but won't admit that status is important to them?

During which marketing era concept would companies not only produce products but also try to persuade customers through advertising and personal selling to purchase those products? Production concept Product concept Selling concept Marketing concept

Selling Concept

Stated Needs

Stated needs are those that are clearly specified by the customer. It's what the customer requests. For example, you go into a big box store such as Best Buy and tell the sales associate that you "need a new phone."

Marketing Process

Step 1: Understand Both the Marketplace and Customers Step 2: Develop a Customer-Driven Marketing Strategy Step 3: Deliver High Customer Value Step 4: Grow Profitable Customer Relations Step 5: Capture Customer Value in the Form of Profits

Competitors.

Successful marketing strategies must be implemented after consideration of your competition. Knowing who your competition is and what they are and are not offering allows you to find the gap in the market. You want to be where the competition is not, at least in the sense of offering something unique to a targeted market.

Suppliers

Suppliers (sometimes also called vendors) are those partners from whom we receive the parts and products necessary for our business

Which of the domains of the macroenvironment are most likely to be responsible for cutting-edge innovations? Economic Technological Political and legal Social and cultural

Technological

Components of Marketing Environment

The internal environment in marketing refers to those elements within the organization that define the atmosphere within the company's structure

The marketing mix defined

The marketing mix is commonly referred to as the tactics a company can use to promote its products or services in the market in order to influence consumers to buy. The marketing mix is also known as the 4Ps: product, price, place, and promotion The product is the good or service that the company provides. The price is what the consumer pays in exchange for the product. The place is where the product is purchased. Promotion is comprised of advertising, sales, and other communication efforts the company utilizes to attract the customer.

Components of the External Environment

There are two elements within the external marketing environment: the microenvironment and the macroenvironment.

Technological Factors.

These factors encompass the innovations and developments in technology that impact an organization's operations, as well as the rate of technological change. For example, look at one simple technological change with which we've all become comfortable in the public arena over the past decade or so: free WiFi. Starbucks was able to take advantage of this change and reposition its coffeehouses and differentiate itself from competitors by offering free WiFi.34

Legal Factors.

These factors include changes to legislation impacting employment, industry regulation, licenses and permits, and intellectual property.

Political Factors.

These factors include environmental and trade restrictions, political stability, and business policy. For example, Tesla announced in late 2021 that it is moving its headquarters out of California to Texas, following similar announcements by Hewlett Packard Enterprise (HPE) and Oracle, citing such things as lower housing costs and tax rates and fewer regulations, making it easier for companies to operate in Texas.

Minds (Sfaffing)

This "M" might well be considered the most important factor because it's people who make sure the rest of the 5Ms are utilized in a productive manner to achieve the goals of the organization

interested parties

Those persons or entities that have an interest in the success or failure of a company. These parties can be categorized into two types: internal and external.

Minutes (Time)

Time is another valuable asset. We've all heard the saying that time is money, and this is true within the marketing arena. For example, in formulating and implementing a new strategy, marketing needs to assess factors such as whether existing production processes are as efficient and effective as they can be, the length of time it takes the organization to introduce a new product to the market, and how responsive the organization is to competitive pressures

Which type of customer relationship management (CRM) system would pool data from outside companies and organizations in order to create even better experiences for their customers? Customer loyalty programs Operational CRM Analytical CRM Collaborative CRM

collaborative

Customer Relationship Management (CRM)

companies want to accomplish two things: improve customer service relationships and improve customer retention. It is typically easier and less expensive to retain a loyal customer than acquire a new one. One way to accomplish that is through customer relationship management (CRM)—the means through which companies track, manage, and analyze customer interactions.45

The total potential profits a company earns from its current and potential customers is known as ________. customer equity the value proposition customer value the marketing process

customer equity

An ongoing positive relationship between a customer and a business is known as ________. customer equity customer loyalty customer retention customer lifetime value (CLV)

customer loyalty

You want to target a market more narrowly than simply using demographic data. You are also considering segmenting on people's attitudes and interests. Which domain of the macroenvironment is most likely to be a relevant data source for your decision-making? Economic factors Natural factors Political and legal factors Social factors

social factors

The product concept focuses on ________. the quality of the product a company intends to sell the operations of manufacturing the product a company intends to sell the selling strategies a company will use to sell the product the needs of the customer

the quality of the product a company intends to sell

Form Utility

the value producers add to materials in the creation of finished goods and services Example - when you want a donut or a pastry, you don't want to buy the ingredients to make it; you want a donut in its final form so you can eat it. That's where the bakery and form utility come into play

CRM software

they link and analyze customer contact information. They store and track contact with company representatives, such as phone calls, emails, live chat conversations, service requests, purchases, and returns. One good example of CRM software is Salesforce,

During the societal marketing concept, ________. customers' wants and needs were first identified as essential trustfulness, honesty, and transparency became most important promotional efforts to move inventory were essential the customer was the focus

trustfulness, honesty, and transparency became most important

Which of the following terms refers to the promised value of a product or service? Valuation Value proposal Value assessment Value proposition

value proposition

The marketing concept

was built on the premise that an organization will achieve its goals when it satisfies the needs and wants of the consumer. As a result, firms began to focus on customer needs before developing products, rather than developing products and then trying to "sell" them to consumers. The marketing concept was also the start of relationship marketing— fostering long-term relationships with customers in order to ensure repeat sales and achieve stable relationships and reduced costs.