MKT 338 Chapter 1

Five conditions of exchange

1. There must be at least two parties. 2. Each party has something that might be of value to the other party. 3. Each party is capable of communication and delivery. 4. Each party is free to accept or reject the exchange offer. 5. Each party believes it is appropriate or desirable to deal with the other party.

Metamarket

A cluster of closely related goods and services that center around a specific consumption activity automobile, home ownership, wedding planning, parenting

Place

Channels Coverage Assortments Locations Inventory Transport

Value

Combination of quality, service, and price (benefits)

Commodization

Consequence of mature industry. Slowing innovation, extensive product assortment, excess supply, and frugal consumers force margins to floor.

Different types of markets (4)

Consumer Market Business Market Global Market Nonprofit & Governmental Market

Positive experienced performance + no prior expectations

Delight

Negative experienced performance + existing expectation

Dissatisfaction

Marketspace

Electronic marketplaces unbound by time or space (AMAZON)

Types of Utility (5)

Form Time Place Possession Psychological

marketing exchange system

Picture on Slide

The Challenges and Opportunities of Marketing in Today's Economy (7)

Power Shift to Customers (Airlines and Broken Guitar) Massive Increase in product selection Audience and media fragmentation (TV adds are superior) changing value proposition (Pizza hut commercial with pizza table) shifting demand patterns (Toyota car selections for different needs) privacy, security, and ethical issues unclear legal jurisdiction (google face art, blocked use of biometrics)

Exchange

Process of obtaining something of value by offering something in return; products for money

Product

Product Variety Quality Design Features Brand Name Packaging Sizes Services Warranties Returns

Marketing Mix

Product, Price, Place, Promotion

Company Orientation Toward the Marketplace (4)

Production Concept - Product Concept - Selling Concept - Marketing Concept

Metamediary

Provides a single access point where buyers can locate and contact many different sellers in the metamarket Zillow

Promotion

Sales Promotion Advertising sales force public relations direct marketing

Positive experienced performance + Existing Expectations

Satisfaction

Power shift to customers

Video about broken guitar on Airlines

satisfaction

a person's judgment of a product's perceived performance in relationship to expectations

Many firms attempt to distinguish or differentiate their product offerings through the use of _____ strategies. This involves establishing a mental image of the product offering relative to competing offerings in the minds of target buyers. a. product positioning b. branding c. perceptual marketing d. image marketing e. comparative

a. product positioning

Utility

ability of a product to satisfy a customer's wants

Corporate Social Responsibility (CSR)

an organization's obligation to consider the interest of their stakeholders and the social and environmental consequences of their business activities

Form Utility

attributes or features that set the product apart

_____ involves the analysis of economic, political, legal, technological, and cultural events and trends that may affect the future of the organization and its marketing efforts. a. Competitive intelligence b. Environmental scanning c. Tactical planning d. Marketing research e. External analysis

b. Environmental scanning

Which of the following statements about pricing decisions in marketing strategy is TRUE? a. Price is one of two elements of the marketing mix that leads to revenue. b. Price has a direct connection with customer demand. c. Pricing is the least manipulated element of the marketing mix. d. Pricing is the most difficult element of the marketing mix to change. e. Customers will always equate higher prices with higher quality products.

b. Price has a direct connection with customer demand.

In the airline industry, companies like American, Delta, and United have a difficult time competing because their industry has become commoditized. What does this mean for firms in the airline industry? a. Airline firms compete in a declining industry. b. Airline customers have become increasingly demanding. c. There is very little differentiation among product offerings in the industry. d. The industry experiences very little change over time. e. Airlines have been forced to develop partnerships to remain competitive.

c. There is very little differentiation among product offerings in the industry.

offerings

combo of products, services, info and experiences

integration CSR into business process can:

create both social value and corporate value

All of the following are reasons for the general decline in customer satisfaction over the past 20 years EXCEPT: a. Customers are much less brand loyal than in the past. b. Today's customers are very price sensitive. c. Today's customers are exceptionally demanding. d. Product quality is much lower now than at any time in the past. e. Customers are more cynical, have more information, and have more attitude than ever before.

d. Product quality is much lower now than at any time in the past.

In the traditional transactional marketing approach, the ultimate goal of marketing is to: a. serve customers' needs and wants. b. develop long-term customer relationships. c. create value in the buyer-seller relationship. d. acquire new customers and complete a large number of exchanges. e. All of the above are goals of transactional marketing.

d. acquire new customers and complete a large number of exchanges.

What type of planning concerns itself with specific markets or market segments and the development of marketing programs that will fulfill the needs of customers in those markets? a. market planning b. strategic planning c. local planning d. lower-level planning e. tactical planning

e. tactical planning

Marketing Concept

identify a customer need, develop offering that satisfies it, in a way that meets organizational objectives

Price

list price, discounts, allowances, payment period, credit terms

Negative experienced performance + no prior expectation

outrage and pain

Psychological Utility

positive experiential attributes that customers find satisfying

Time Utility

products available when customers want them

place utility

products available where customers want them

Value Proposition

set of benefits that satisfy needs

Marketing Definition

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

cause-related marketing

the public association of a for-profit company with a nonprofit organization

posession utility

transfer of ownership or title, ease of acquisition