Strat Mk Mgt Ch 1-7

Ch2: Strategic Marketing Process: Planning

1. SWOT ID trends in industry Analyze competition Assess own organization Research present and prospective customers 2. Market-product focus and goal setting determine which products to direct toward which customers decision based on market segmentation match between products and segments is POINTS OF DIFFERENCE or characteristics that make product superior to substitutes 3. Marketing Program the how aspect involves developing marketing mix and its budget

Ch2: Growth Strategies - Where Do We Want to Go?

1. business portfolio analysis and 2. diversification analysis Business portfolio analysis - quantify performance measures and growth targets to analyze firm's SBUs as though they are separate investments. Purpose is to determine which SBU generates cash and which one requires cash to fund growth opportunities Diversification analysis - technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products

Ch1: The solution to preventing product failures

1. find out what consumers need and want. 2. produce what they need and want and don't product what they don't.

LO 2-5 Explain the three steps of the planning phase of the strategic marketing process

1. how do we allocate our resources to get where we want to go? 2. how do we convert our plans into actions? 3. how do our results compare with our plans, and do deviations require new plans? 1. SWOT 2. Market-product focus and goal setting 3. Marketing program

LO 5-1 Describe the stages in the consumer purchase decision process

1. problem recognition - perceiving the difference between a person's ideal and actual situation enough to trigger a decisions 2. info search - remembering previous purchase experiences (internal search) and external search behavior such as seeking info from other sources 3. alternative evaluation - clarifies the problem for the consumer by a. suggesting the evaluative criteria to use for the purchase and b. yielding brand names that might meet the criteria and c. developing consumer value perceptions 4. purchase decision - involves the choice of an alternative including from whom to buy and when to buy 5. postpurchase behavior - involves comparison of the chosen alternative with a consumer's expectations, which leads to satisfaction or dissatisfaction and subsequent purchase behavior

LO 4-3 Describe the different concepts of social responsbility

1. profit responsibility holds that companies have a simple duty to max profits for owners or shareholders 2. stakeholder responsibility focuses on the obligations an organization has to those who can affect achievement of its objectives 3. societal responsibility focuses on obligations that organizations have to the preservation of the ecological environment and the general public

LO 4-2 Identify factors that influences ethical and unethical marketing decisions

1. societal culture and norms serve as socializing forces that dictate what is morally right and just 2. business culture and industry practices affect ethical conduct in both the exchange relationships between buyers and sellers and the competitive behavior among sellers 3. corporate culture and expectations are often defined by corporate ethics codes and the ethical behavior of top management and coworkers. 4. ethical behavior rests with the individual, but the consequences affect many

Ch3:Baby Boomers

1946-1964, retiring at rate of 10,000/day, wealthiest generation in US history and account for 50% of consumer spending power

Ch4: Consumer Bill of Rights

1962, JFK, codified ethics of exchange between buyers and sellers. These were the right to safety be informed choose to be heard Consumer expect and often demand that these rights be protected, as have American businesses.

LO 1-5: Describe how today's customer relationship era differs from prior eras.

1st stage: Production era in early years of US through 1920s. Goods were scare and buyers were willing to take any goods that were available and make do with them. 2nd stage: Sales era from 20s to 1960s, manufacturers found they could product more goods than buyers could consumer. Competition grew. Firms hired more salespeople to find new buyers. This era continued into 60s for some firms. 3rd stage: Marketing Concept era from late 50s to 00s. Current stage: Customer Relationship era, occurs as firms continuously seek to satisfy high expectations of customers

Chapter 1 Figure 1-2

A marketing department relates to many people, organizations, and forces. Note that the marketing department both shapes and is shaped by its relationship with these internal and external groups.

Ch2: Kinds of Organizations

An organization is a legal entity that consists of people who share a common mission. This motivates them to develop offerings that create value for both the organization and its customers by satisfying their needs and wants. For profit, AKA business firm NPO Government agencies

Ch1: What Is Needed for Marketing to Occur

At least 4 factors are required: 1. 2+ parties with unsatisfied needs 2. a desire and ability on their part to have their needs satisfied 3. a way for the parties to communicate 4. something to exchange

LO 2-2: Describe core values, mission, organizational culture, business and goals.

Core values - fundamental, passionate, enduring principles that guide organization's conduct over time Mission - statement of organization's function in society Organizational culture - set of values, ideas, attitudes, norms of behavior that is learned and shared among the members of an organization

LO 3-1 Explain how environmental scanning provides info about social, economic, tech, competitive and regulatory forces

Environmental scanning - process of continually acquiring info on events occurring outside the organization to identify and interpret potential trends

LO 2-6: Describe the four components of the implementation phase of the strategic marketing process

Implementation involves carrying out the marketing plan that emerges from planning phase. 1. obtaining resources 2. designing marketing organization 3. defining precise tasks, responsibilities and deadlines 4. actually executing the marketing program designed in the planning phase 1. finding adequate human and financial resources to execute marketing plan successfully 2. see photo 3. make action item list (task, person responsible, due date, what is to be delivered) 4. Marketing strategy - means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it. Need marketing tactics - detailed day-to-day operation marketing actions for each element of the marketing mix that contribute to the overall success of marketing strategies

LO 3-3 Discuss how economic forces such as macroeconomic conditions and consumer income affect marketing

In an inflationary economy, the cost to product and buy products and services escalates as prices increase. From a marketing standpoint, if prices rise faster than consumer incomes, the number of items consumers can buy decreases. This relationship is evident in the cost of college. Consumer spending which accounting for 2/3 of US economic activity, is affected by expectations of the future.

LO 1-4: Explain how organizations build strong customer relationships and customer value through marketing.

Intense competition in today's fast-paced global markets has prompted many successful U.S. firms to focus on "customer value". Gaining loyal customers by providing unique value is the essence of successful marketing. A firm achieves meaningful customer relationships by creating connections with its customers through careful coordination of the 4 Ps.

LO 1-2: Explain how marketing discovers and satisfies consumer needs.

Marketers often use customers surveys, concept tests, and other forms of marketing research to better understand customer ideas. While marketers are improving the ways they can generate new product ideas, experts estimate that it takes 3,000 raw ideas to generate one commercial success. Mintel estimates 33,000 new products are introduced worldwide each month.

LO 1-1: Define marketing and ID the diverse factors that influence marketing actions

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offers that have value for customers, clients, partners, and society at large. It stresses the need to deliver genuine value in the offerings of goods, services and ideas marketed to customers. An organization's marketing activities should also create value for its partners and society. To serve both buyers and sellers, marketing seeks (1) to discover the needs and wants of prospective customers and (2) to satisfy them. These prospective customers include both individuals, buying for themselves and their households, and organizations, buying for their own use or for resale. The key to achieving these two objectives is the idea of exchange. p.5

Chapter 1 Figure 1-3

Marketing seeks first to discover the needs through extensive research. It then seeks to satisfy those needs by successfully implementing a marketing program possessing the right combination of the marketing mix.

Ch2: Organizational Direction - What Will It Do?

Organization's foundation enables it to set a direction in terms of 1. the "business" it's in and 2. its specific goals Business - clear, broad, underlying industry or market sector Goals - convert mission and business into long- and short-term performance targets Types of Goals: profit, sales, market share, quality, customer satisfaction, employee welfare, social responsibility

Ch1: What a Market Is

Potential consumers make up a market, which is people with both the desire and ability to buy a specific offering. People who are aware of their unmet needs may have the desire to buy the product, but that alone isn't sufficient. People must also have the ability to buy, such as the authority, time and money.

LO 3-4 Describe how technological changes can affect marketing

Technology refers to the inventions of innovations. Each new wave of tech innovation can replace existing products and companies The cost of tech is plummeting, causing the customer value assessment of tech-based products to focus on other dimensions such as quality, service and relationships. Tech also provides value through the development of new products. Tech can also change existing products and the way that they are produced.

LO 1-3: Distinguish between marketing mix factors and environmental forces.

The Four Ps 1. Product 2. Price 3. Promotion - means of communication between buyer and seller 4. Place - means of getting product to consumer These are controllable factors because they are under the control of the marketing dept. Designing an effective marketing mix also conveys to potential buyers a clear "customer value proposition"

LO 2-7 Discuss how managers identify and act on deviations from plans

The evaluation phase of the strategic marketing process seeks to keep the program moving in the direction it set for it. This requires the marketing manager to 1. compare the results of the marketing program with the goals in the written plans to ID deviations and 2. act on these deviations - exploit positive and correct negative ones

Ch1: Utility definitions

Utility: the benefits or customer value received by users of the product form utility - production of p/s place utility - having the offering available where consumer needs it time utility - having it available when needed possession utility - value of making an item easy to purchase through the provision of credit cards or financial arrangements Marketing creates its utilities by bridging space (place) and hours (time) to provide products (form) for consumers to own and use (possession).

Ch1: The Breadth and Depth of Marketing

Who markets What is marketed Who buys and uses what is marketed Who benefits from marketing activities How consumers benefit

Ch3: Gen X and Gen Y

X - 50 million born between 65-76, not prone to extravagance and likely to be cautious and traditional in lifestyle Y - 72 million born between 77-94

Ch3: Consumerism

a grassroots movement started in the 60s to increase the influence, power and rights of consumers in dealing with institutions

Ch1: Needs and Wants

a need occurs when a person feels deprived of basic necessities. A want is a need that is shaped by a person's knowledge, culture, and personality.

Ch1: Marketing program definition

a plan that integrates the marketing mix to provide a good,service, or idea to prospective buyers.

Ch5: word of mouth

about 75% over all consumer conversations about brands are F2Face, 67% of US consumer product sales are directly based on word-of-mouth activity among friends, family, colleagues

Ch5: consumer behavior

actions a person takes in purchasing and using p/s

Ch3: Competition

alternative firms that could provide a product to satisfy a specific market's needs pure competition - many sellers with similar products monopolistic -many sellers with substitutible products within a price range oligopoly - common industry structure, when few control a majority of industry sales pure monopoly - only one firm sells the product

Ch4: utilitarianism

alternative to perspective on moral philosophy a personal moral philosophy that focuses on the greatest good for the greatest number by assessing the costs and benefits of the consequences of ethical behavior

Ch5: attitude and beliefs

attitude - learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way beliefs- consumer's subjective perception of how a product or brand performs on different attributes

Ch5: learning

behaviors resulting from: repeated experience reasoning

Ch5: brand community and brand loyalty

brand loyalty- favorable attitude toward and consistent purchasing of single brand over time

Ch3: Barriers to Entry

business practices or conditions that make it hard for new firms to enter market, can be in form of capital requirements, advertising expenditures, product identity, distribution access, or the cost to customers of switching suppliers

Ch4: caveat emptor

buyer beware, before 60s was pervasive in US

Ch4: economic espionage

clandestine collection of trade secrets or proprietary info about a company's competitors

Ch1: Customer Value Proposition definition

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

Ch3: Multicultural marketing

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

Ch3: value consciousness

concern for obtaining the best quality, features, and performance of a p/s for a given price. Is driving consumption behavior for many products at all price levels.

Ch3: Demographics

describing a population according to selected characteristics such as age, gender, ethnicity, income and occupation

Ch3: Discretionary / Disposable / Gross income

discretionary - money after taxes and necessities disposable - left after taxes for necessities

Ch3: Electronic Commerce

e-commerce activities that use electronic communication in the inventory, promotion, distribution, purchase and exchange of products and services Internet-based tech also allows companies to create intranets to communicate within the organization, and extranets to communicate with suppliers, distributors, and other partners such as advertising agencies

LO 4-1 Explain the differences between legal and ethical behavior in marketing

ethics deal with personal moral principles and standards are enforceable in courts.

Ch5: opinion leaders

exert direct or indirect social influence over others. considered to be knowledgeable about or users of particular p/s, so their opinions influence others.

LO 5-2 Distinguish among three variations of the consumer purchase decision process: extended, limited and routine problem solving

extended - use five stages of purchase decision limited - typically seek more info or rely on friend to help evaluate alternatives routine -spend little effort seeking external info and evaluating alternatives

LO 5-4 ID the major sociocultural influences on consumer behavior

family, social class, culture, subcultre

Ch1: Market Orientation definition

focuses its efforts on 1. continuously collecting info about customers' needs, 2. sharing this info across depts, 3. using it to create customer value

Ch4: ethics and code of ethics

formal statement of ethical principles and rules of conduct

LO 3-5 Discuss the forms of competition that exist in a market and the key components of competition

four forms of competition pure competition - many sellers with similar products monopolistic -many sellers with substitutible products within a price range oligopoly - common industry structure, when few control a majority of industry sales pure monopoly - only one firm sells the product

Ch1: Marketing Concept definition

idea that an organization should 1. strive to satisfy needs of consumers while also 2. trying to achieve organization's goals.

Ch3: self-regulation

industry attempts to police itself

Ch3: marketspace

info- and communication-based electronic exchange environment occupied by sophisticated computer and telecommunications tech and digital offerings

Ch1: Customer Experience definition

internal response that customers have to all aspects of an organization and its offering. This response including both the direct and indirect contacts of the customer with the company. Direct contacts include customer's contacting the seller through buying, using, and obtaining service. Indirect contacts most often involve unplanned "touches" with the company through word-of-mouth comments from other customers, reviewers, and news reports.

Ch4: sustainable development

involves conducting business in a way that protects the natural environment while making economic progress

Ch4: green marketing

marketing efforts to produce, promote, and reclaim environmentally sensitive products -take many forms

Ch2: Diversification definition

marketing strategy of developing new products and selling them in new markets

Ch2: Marketing Metric definition

measure of the quantitative value or trend of a marketing action or result

Ch1: Target Market definition

one or more specific groups of potential consumers toward which an organization directs its marketing program

Ch2: Strategic Marketing Process definition

organization allocates its marketing mix resources to reach its target markets. Three phase process 1. planning 2. implementation 3. evaluation

Ch2: Strategy definition

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

Ch2: Organization Strategies - How Will It Do It?

organizational strategies vary in at least two ways, depending on 1. a strategy's level in the organization and 2. the offerings an organization provides to its customers 1. variation by level - moving down the levels in an organization involves creating increasing specific, detailed strategies and plans. 2. variation by product - through a marketing plan

Ch1: Ultimate consumer definition

people who use the products and services purchased for a household

Ch5: perceived risk and perception

perceived risk - anxiety felt because consumer cannot anticipate outcomes of purchase but thinks there will be bad consequences

Ch4: moral idealism

personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome

Ch5: involvement

personal, social, economic significance of purchase to consumer

Ch1: CRM definition

process of IDing prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace. This process requires the involvement and commitment of managers and employees throughout the organization and a growing application of info, communication and tech.

LO 5-3 Identify the major psychological influences on consumer behavior

psychological concepts such as motivation and personality, perception, learning, values, beliefs, attitudes and lifestyle are useful for interpreting buying processes. motivation - energizing force that stimulates behavior to satisfy a need personality - consistent behavior or responses perception - process to select, organize, interpret info

Ch4: triple-bottom line

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

LO 3-6 Explain the major legislation that ensures competition and regulates the elements of the marketing mix

regulation - state and federal laws on business with regard to conduct of activities, exist to protect companies and consumers. much of regulation is result of active political process and has been passed to ensure competition and fair business practices for consumer, the focus of legislation is to protect them from unfair trade practices and ensure their safety

Ch1: Market Segments definition

relatively homogeneous groups of prospective buyers that (1) have common needs and (2) will respond similarly to a marketing action. This action might be a product feature, a promotion, or a price. Consumers needs trigger products that are translated into actual products that stimulate further discovery of consumer needs.

Ch2: Marketing Plan definition

road map for the marketing actions of an organization for a specified future time period.

Ch3: Economy

second part of environmental scan - pertains to income, expenditures, resources that affect the cost of running a business and household

Ch4: sustainable marketing

seeks to meet today's global economic, environmental, social needs without compromising the opportunity for future generations to meet theirs

Ch4: social audit and social responsibility

social audit - systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility

Ch5: social class and subcultures

social class - relatively permanent, homogeneous divisions in a society which people share similar values, interests, and behaviors can be grouped subcultures- within larger culture with unique values, ideas, and attitudes. 3 largest US racial/ethnic subcultures are Hispanics, Blacks and Asians, they are expected to account for more than 1/4 of US consumers and spend almost $4T in 2019, and represent almost 20% of US buying power

Ch3: Culture

social force that incorporates set of values, ideas and attitudes that are learned and shared among group members

Ch1: environmental forces definition

social, economic, tech, competitive, regulatory Traditionally, many marketing execs have treated environmental forces as rigid, absolute constraints that are entirely outside their influence. However, in recent studies and marketing successes have show that a forward-looking, action-oriented firm can often affect some environmental forces by achieving tech or competitive breakthroughs, like Apple's Watch.

Ch4: laws

society's values and standards that are enforceable in courts

Ch1: Relationship marketing definition

the hallmark of developing and maintaining effective customer relationships which links the organizations to its individual customers, employees, suppliers and other partners for their mutual long-term benefit. Relationship marketing involves a personal, ongoing relationship between the organization and its individual customers that begins before and continues after the sale. New tech helps make all of this possible.

Ch1: Customer Value definition

the unique combo of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price. Firms now actually try to place a dollar value on the purchases of loyal, satisfied customers during their lifetimes.

Ch1: societal marketing concept

the view that organizations should satisfy the needs of consumers in a way that provides for society's well-being.

Ch3: techonology

third environmental force

Ch1: Organizational buyers definition

those manufacturers, wholesales, retailers, service companies, NPOs and government agencies that buy p/s for their own use or for resale

LO 2-4: Discuss how an organization assesses where it is now and where it seeks to be.

to set a strategic direction, an organization needs to answer two difficult questions, 1. where are we now and 2. where do we want to go? This means IDing competencies, customers, and competitors. Competencies - what do we do best, should be distinctive enough to provide a competitive advantage Customers - provide genuine value to customers

LO 4-4 Recognize unethical and socially irresponsible consumer behavior

unethical consumer behavior includes filing warranty claims after claim period, pirating music and movies, submitting phony insurance claims

Ch2: Marketing Dashboard definition

visual display of essential info related to achieving a marketing objective

Ch4: Cause Marketing

when charitable contributions of a firm are tied directly to the customer revenues through the promotion of one of its products