principles of marketing (chapters 1-4)

Social Forces

Definition: Demographics and characteristics of the population and its culture Places with similar cultural demographics such as Little Italy, China Town (they all share the same characteristics and can marketed to as such)

Demographics

Definition: Describing a population according to selected characteristics such as age, gender, ethnicity, income, and occupation A record label will find the demographic that resonates the most with that artist. For example: Loyola kids rapping and putting it on soundcloud for their peers

Social responsibility

Idea that organizations are part of a larger society and are accountable to that society for their actions i. Nike's ad supporting Colin Kaepernick

SWOT Analysis

A situation analysis. Strengths, weaknesses, opportunities, threats. The objective of a situation analysis is critical assessment. Analyzing how books and newspapers have become vulnerable to substitution and to come up with a solution to reduce this vulnerability.

place (4 p's of marketing mix)

Allows consumers to find products in the proper quantities and at the right place and time ex: A vending machine

Black Markets

An illegal market in which consumers pay unreasonably high prices for items not readily available i. Concert tickets, counterfeit bags

the sales era (4 eras of marketing)

As the market continued to become more saturated, competition increased among businesses. This created a need for marketing and sales techniques. Companies utilized persuasion techniques in order to convince customers to purchase their products, ex: Door to door salesmen were very common in this era though their pitches were often viewed as disingenuous and the product low quality

Leverage

Matching an internal strength with an external opportunity Example: companies like Uber and Lyft have leverage in the market place due to the upcoming trend of people's lack of interest in driving themselves places.

Problem

When a threat attacks a weakness If buyer changes tastes and you don't have the ability to pivot

Economy

Definition Pertains to the income, expenditures, and resources that affect the cost of running a business and household. In 2007, there was a recession in the economy.

Millennials

Definition: 1995 - 2012, no special name Freshmen, Sophomores and maybe juniors here at loyola could be considered a millennial

Blended Family

Definition: A family that is made up of 2 different cultures and backgrounds Example: Sydney's mom is white and her dad is Filipino, we are a blended family!

Zoomers

Definition: Elderly people who like to stay active. My grandpa works out every Friday morning and plays tennis.

Boomerangs

Definition: Grown children who have returned home to live with their parents My sister just graduated from UF and has been staying with my mom all summer. When my mom forced her to get a job, she moved to Dallas, Texas to stay with my grandmother for her job in February. My sister is considered a boomerang.

Generation X

Definition: Includes the 50 million people born between 1965 and 1976. Also called the baby bust This is probably one of your parents if they are around 40-50 years old

Generation Y

Definition: Includes the 75 million Americans born between 1977 and 1994. Also called the echo-boom People in their 30's that witnessed the progression technology.

Baby Boomers

Definition: Includes the generation of 73 million children born between 1946 and 1964 I. Are the generation that resulted after WWII

Seniors

Definition: People born between 1925- 1945 This is probably your grandma or great grandma

Disposable Income

Definition: The money a consumer has left after paying taxes to use for necessities such as food, housing, clothing and transportation After paying taxes, Jessica buys necessary groceries for her family with the extra money she has.

Environmental Scanning

Definition: The process of continually acquiring information on events happening outside of the company to discover potential trends Starbucks has been looking to what their consumers are interested through surveys and business in order to predict trends for the future, such as a colorful tumbler cup.

Unemployment Rate

Definition: The rate of people that are unemployed or working part time but are still currently looking for work Every college student ever

Culture

Definition: The set of values, ideas and attitudes that are learned and shared among the members of a group Mardi Gras in New Orleans is a cultural tradition practiced by locals every year.

Gross Domestic Product

Definition: The sum of all goods and services in one year At the end of the year, the U.S. will count all the sales made by companies in the country to help predict economic standing.

Cohort Effect

Definition: The tendency of members of a generation to be influenced and bound together by significant events in their formative years. The 9/11 attacks could be considered a cohort effect with people living in the Bush administration and those who were affected by the travesty. The making of the Iphone could also be seen as the cohort effect with a group of society who grew up with newer technology.

Gross Income

Definition: The total amount of money made in one year by a person, household, or family unit. Also known as money income at the Census Bureau. My mom makes $60,000 a year my dad earns $20,000 together this household has a gross income of $80,000

relationship marketing era (4 eras of marketing)

During the relationship marketing era, the focus is not only on creating relationships with customers but also long-term relationships. The ultimate goal for businesses is to create customer loyalty. Businesses want to create products that will ensure their customers come back every time. ex: An example would be a company that offers lifetime warranties or returns/exchanges on faulty products to ensure that customers stay with them

Economic Espionage

Economic espionage is the unlawful targeting and theft of critical economic intelligence, such as trade secrets and intellectual property. i. Example- Plankton wants nothing more than to steal the secret recipe of the Krusty Krab's Krabby Patty. One day, he hires an inside man to steal the recipe by any means necessary. As a result, Plankton is committing economic espionage.

Code of Ethics

Formal Statement of ethical principles and rules of conduct i. Our commitment to the highest standards helps us hire great people, build great products, and attract loyal users. - One of Google's code of ethics

Product Development

Introduction of new products into established markets ex: Selling new products such as T-shirts under the Ben and Jerry's brand to Americans.

Diversification Analysis

Introduction of new products into new markets. Selling new products such as T-shirts under the Ben and Jerry's brand to a new Brazilian market.

Discretionary Income

Is the money left over after paying taxes and necessities. Ex: excess clothes, computer devices, gifts, make up, toys, luxury items.

Monopolistic Competition

Many sellers compete with substituables products within a price range. These are relatively well-differentiated products, giving markets some control of prices. Ex: The sports shoes companies like Adidas, Puma, New Balance, Nike, both have a similar product but there are so many that they don't influence the price.

Need

Require something because it is essential or very important. An example would be essentials in life such as food and water.

product (4 p's of marketing mix)

What the firm is offering/what it should offer, ex: Selling a drink to someone who is thirsty

Constraint

When a weakness prevents you from taking advantage of an opportunity Example: Mis-promoting your brand, causing lack of appeal and interest in the products that consumers are trying to sell.

Mission and Vision

a statement or vision of an organization's function in society

diversification analysis

a technique a firm uses to search for growth opportunities from among current and new products and markets

place (type of utility)

allows consumers to find products in the right places ex: Starbucks has higher end locations in certain areas to attract a different customer base

organization

an organized body of people with particular purpose, especially in business, society, association, etc. ex: World Wide Fund for Nature - Non Profit Organization

Goals (Objectives)

are the statements of an accomplishment of a task to be achieved, often by a specific time. ex: Ex. We aim to profit $1,000,000 within 6 months.

For-profit organizations

business firm), Non-Profit Organization, Government Agency ex: Coca Cola - For Profit Organization

Market development

concentrates on finding new markets for existing products. Ex: selling ben & jerrys ice cream to Brazilians for the first time

Regulations

consists of the restrictions, city, state, and federal laws placed on business with regard to the conduct of its activities. Example: protecting competition, price regulated laws, promotion regulative laws.

Organizational Culture

consists of the set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization. ex: the overall culture and environment that an organization wants to have. Keeping employees that are committed to the orginazation's goals and getting rid of employees only there for money

Exchange

he trade of things of value between buyer and seller so that each is better off after the trade. i. An example would be a supplier offering a good or service and a customer being willing to buy it.

Indirect competition

involves easily substitutable products Example: coke, water, and coffee

Regulatory forces that are promotion related

it regulates unfair business practice and stops false and deceptive advertisement. Example- The FTC Act of 1914, The Telephone Consumer Act.

Regulatory forces protecting competition-

major federal legislation has been passed to encourage fair competition because it permits the customer to determine which competitor will succeed or fail. Example: Sherman Antitrust Act, Clayton Act, and the Robison-Patman Act

Green Marketing

marketing efforts to produce, promote, and reclaim environmentally sensitive products—takes many forms i. Levi Strauss & Co. uses eight recycled plastic bottles in each pair of jeans, which are composed of at least 20 percent recycled plastic. This practice has eliminated millions of discarded plastic bottles from landfills and reduced the water consumed in the manufacturing process.

Direct competition

occurs among seller of similar products. Ex:cell phone industry (sprint, t-mobile)

Monopoly

only one seller of the product exists if which there are no close substitutes. Ex: oil industry, steel industry, utility companies

form (type of utility)

refers to product that the organization offers to its consumer base ex: cars, electronics, any product

time (type of utility)

related to the difference of time between the creation of the product and its final consumption by the consumer ex: Amazon's quickness with delivery attracts customers

price (4 p's of marketing mix)

setting a profitable and justifiable price ex: Charging more for a travel sized bottle,

Marketing Myopia

short sighted and inward looking approach to marketing that focuses on the needs of the company over the needs of the customer. An example would be the failure of train companies due to them failing to recognize that they were not simply in the "business of trains" but transportation in general.

Core Values

the fundamental, passionate, and enduring principles of an organization that guide its conduct over time

Regulatory forces that are distribution related -

the government has four concerns to maintain competition which includes exclusive dealing, requirement contracts, exclusive territorial distributorships, tying arrangements. Examples: require a buyer to purchase all or part of its needs for a product from one seller for a period of time.

Ethics

the moral principles and values that govern the actions and decisions of an individual group i. Example: Someone's beliefs, saving an orphan child from a burning building

Market penetration

the objective is to increase sales of existing products in existing markets. Ex: : Hyundai - was initially the "inexpensive" car option, but through successful repositioning the brand is becoming known for ecofriendliness and quality/safety.

4 stages of the business cycle

the rise and fall of economic activity over time. 1. prosperity 2. recession 3. depression 4. recovery

organizational culture

the set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization

ownership (type of utility)

the value that consumers give the product. ex: a customer switching grocery stores simply because it is easy and not difficult for them to do so.

Want

A desire that becomes a need; shaped by culture, history, and background. i. An example would be any discretionary good that someone wants to purchase. (ex. Fancy clothing, luxury items)

BCG Matrix

A growth strategy that consists of a chart that evaluates a company's products & services & categorizes them based on how well they sell, & how much competition it has.

Competition

Consist of the alternative firms that could provide a product to satisfy a specific market's need. Ex: Apple and Microsoft both sell technological products to a similar target.

5 Environmental Forces

Social: Demographic Shifts, cultural changes Economic: macroeconomic conditions, consumer income Technological: Changing technology, technology impact on consumer value Competitive: Alternative forms of competition, small business Regulatory: Laws protecting competition, laws affecting marketing mix actions, self-regulation

Marketing

The activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large ex: A company advertising a new shoe by displaying it on a billboard in an area where shoes are commonly purchased.

Utility

The benefit or customer value received by users of the product. i. An example would be the benefits received from electronics such as computers, or other items.

promotion (4 p's of marketing mix)

The communication link between buyers and sellers ex: A special offer or relatable advertisements

Consumer Bill of Rights (1962)

The consumer Bill of Rights, signed in 1962, was a document that ensured the safety of consumers against injuries caused by products when purchased. The four foundational rights included in the document are: The right to safety, the right to be informed, the right to choose, and the right to be heard. i. Example- Timmy would like to complain about the awful service he received at Wendy's. He files a complaint with the manager, exercising his Consumer Bill of Rights to be heard.

the production era (4 eras of marketing)

The production era began during the Industrial Revolution. Products were produced in mass and at a low cost. Typically businesses only produced one product at a time. Also during this era, businesses had the mindset of, "if produced, someone will buy" ex: The Production Era- Henry Ford initially only selling one color of car since he knew people would buy them anyway,

Rule of three

The three strongest companies control 70-90% of the market. Ex: supermarkets ; Walmart, Cotsco, and Kroger.

Pure competition

There are many sellers and they each have a similar (same) product. No single participant can significantly influence the price. Ex: Agricultural world, where the sellers offer the same corn to the market

Oligopoly

There are relatively few sellers and each has a large influence in price. Ex: Wireless phone companies dominated by Verizon, At&T, sprint and T-Mobile

marketing concept era (4 eras of marketing)

This is an era where the marketing department took control. The marketing department helped guide a company's direction. All employees were also involved in marketing, making it important for the success of the company ex: Companies such as big tobacco and airline companies focused heavily on advertisements whether it be commercials, billboards, etc,

Regulatory forces that are product related-

customer oriented federal law regarding products that address the product component of the marketing mix. Examples: patent law, copyright law, trademarks

Relationship Marketing

focuses on customer loyalty and long-term customer engagement rather than shorter-term goals like customer acquisition and individual sales. i. An example of this would be providing rewards to customers who continually use/purchase a company's good or service.

Vulnerability

when a threat attacks a strength ex: Newspapers, printed articles, books, or any printed readings have become vulnerable due to people reading these things on the internet