Marketing chapter 1 and 3 towards bottom

What Is Marketing?-1948 definition

Marketing is the performance of business activities directed towards, and incident to, the flow of goods and services from the producer to consumer or user.

What Is Marketing? 1985 American Marketing Association Definition

Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.

Which of the following represents the collection of tools used to create a positive response from predefined​ consumers?

Marketing mix

Marketing Mix: Product

The specific combination of features, functions, benefits, and uses sought by consumers. This includes: -Physical unit -Package -Warranty -Service -Brand -Image

main focus in management in 2005

delivering value ex. frequent flyer (builds relationship)

Making decisions about how to best allocate resources across a company's strategic business units (SBUs) to ensure growth for the total organization occurs during which step of strategic planning?

establishing a business portfolio

marketing concept...

everyone communicates now

exchange relationship....

exchange: give up in return for something conditions: -two parties -agree on value -free to accept/reject "Why is Bank robbery and movie piracy NOT considered valid exchanges?" answer: not valid exchange because no agreement ex. of valid exchange: vacation, politicians, buying a car.

Arguments For/Against Social Responsibility

for: It is the right thing to do Businesses have the resources to devote to fixing social problems Prevents government regulation and potential fines It can be profitable against: Takes focus away from making profits Business executives spend shareholder money on environmental initiatives Surveys indicate that consumers would be willing to pay more for a socially responsible company's product

Developing marketing strategies is the __________ step in the market planning process.

third

With the increased use of blogs and social​ media, _____ is expected to become more important than branded content marketing strategies of the past.

user-generated content Correct.​ Customers' demand for good content will continue to dominate online marketing.​ User-generated content will grow and overtake the importance of branded content.

According to the BCG growth-market share matrix, stars are strategic business units (SBUs) with __________.

with products that have a dominant market share in high-growth markets.

When focusing on social​ responsibility, the value of an​ organization's marketing activities are measured based on​ _____.

accountability In addition to building​ long-term relationships and focusing on social​ responsibility, triple-bottom-line firms place a much greater focus on accountabilitylong dashmeasuring just how much value an​ organization's marketing activities create. This means that marketers at these organizations ask hard questions about the true value of their efforts and their impact on the bottom line.

An individual support plan included in a marketing plan that provides the guidance for implementation and control of the various marketing strategies within the plan is a(n) __________.

action plan

"Why is Americans' approval of Congress at 16%?" Huntsville's representative

because most do not participate Kevin Brady

2013....

brought back EXCHANGE into definition set of institution : banks, wholesalers, etc...

Ethical Decisions in the Real World

"Screen addicts" are people who are literally addicted to their phones and tablets. The addiction interferes with their normal activities and productivity. Example: Nearly three-quarters of Americans use their smart phones in the bathroom, sleep with their smart phones, etc. "Should companies (i.e., "growth hackers" like Facebook) try to increase the amount of time consumers spend with their small screens? What is the cost to consumer and society?"

PROMOTION...

-INFORMING -EDUCATE -PERSUADE -REMIND -bring about exchanges with target markets by influencing attitude and/or behavior.

sales era

-focus on selling not producing when people got tires of the original black vehicle the changed to -colored cars -free tire -so much focus on selling turned into transactions

1948...

-industrial revolution -100 years old course

marketing is.....

-way of thinking -stress customer's needs -provide value -BENEFIT marketing is not the business of selling goods but from providing BENEFITS

Which of the following BEST describes a distinctive competency of a​ firm?

A capability that is superior to the competition A distinctive competency is a​ firm's capability that is superior to that of its competition.

A plan that focuses on the day-to-day execution of the marketing plan is an operational plan. Action plans are individual support plans included in a marketing plan that provide guidance for implementation and control of the various marketing strategies within the plan.

A control is a process that entails measuring actual performance, comparing this performance with the established marketing objectives, and then making adjustments to the strategies or objectives on the basis of the analysis. A return on marketing investment (ROMI) quantifies how an investment in marketing has an impact on the firm's success, financially and otherwise.

What is a market penetration strategy?

A growth strategy designed to increase sales of existing products to current customers, nonusers, and users of competitive brands in served markets

Markets and Marketplaces

A market consists of all consumers who share a common need that can be satisfied by a specific product, and who have RAW (Resources, Authority, and Willingness) to exchange. A marketplace is any location or medium used by sellers and buyers to facilitate an exchange. Face-to-face Locations include malls, farmer's markets, or retail stores Mediums include websites and phone apps (virtual), mail-order, TV shopping networks

The external environment is the uncontrollable elements outside an organization that may affect its performance either positively or negatively. The internal environment consists of the controllable elements inside an organization, including its people, its facilities, and how it does things, that influence the operations of the organization.

A mission statement is a formal statement in an organization's strategic plan that describes the overall purpose of the organization and what it intends to achieve in terms of its customers, products, and resources. A business portfolio is the group of different products or brands owned by an organization and characterized by different income-generating and growth capabilities.

In Summary: Marketing is ...

A philosophy, an attitude, a perspective, or a management orientation that stresses satisfying customer needs. Employee Satisfaction Customer Satisfaction An organizational activity, set of institutions, and processes that focus on delivering value and benefits to customers, not just selling goods and services. More than just sales and advertising Involves interactions with non-marketers: Finance, HR, MIS, Operations, Accounting, etc.

A SWOT analysis is an analysis of an organization's strengths and weaknesses and the opportunities and threats in its external environment. A situation analysis is an assessment of a firm's internal and external environments.

A portfolio analysis is a management tool for evaluating a firm's business mix and assessing the potential of an organization's strategic business units. A BCG growth-market share matrix is a portfolio analysis model that assesses the potential of successful products to generate cash, which a firm can then use to invest in new products.

What is a control?

A process that entails measuring actual performance, comparing this performance with the established marketing objectives, and then making adjustments to the strategies or objectives on the basis of this analysis

A market penetration strategy seeks to increase sales of existing products to existing markets. A market development strategy introduces existing products to new markets.

A product development strategy creates growth by selling new products in existing markets. A diversification strategy emphasizes both new products and new markets to achieve growth.

A market penetration strategy is a growth strategy designed to increase sales of existing products to current customers, nonusers, and users of competitive brands in served markets. A market development strategy is a growth strategy that introduces existing products to new markets.

A product development strategy is a growth strategy that focuses on selling new products in existing markets. A diversification strategy is a growth strategy that emphasizes both new products and new markets.

The Marketing Mix is...

A unique blend of product, place (distribution), promotion (communication), and pricing strategies designed to produce mutually satisfying exchanges with a target market. Interdependent set of tools (4P's) used by the organization to create a desired response among its target market

What is a SWOT analysis?

An analysis of an organization's strengths and weaknesses and the opportunities and threats in its external environment is a

A control is a process that entails measuring actual performance, comparing this performance with the established marketing objectives, and then making adjustments to the strategies or objectives on the basis of this analysis. An action plan is an individual support plan included in the marketing plan that provides the guidance for implementation and control of the various marketing strategies within the plan.

An operational plan focuses on the day-to-day execution of the marketing plan. A diversification strategy is a growth strategy that emphasizes both new products and new markets.

A marketing plan is a document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy. A business plan includes the decisions that guide the entire organization.

Business planning is an ongoing process of decision making that guides the firm in both the short term and the long term. Strategic planning is a managerial decision process that matches an organization's resources and capabilities to its market opportunities for long-term growth and survival.

What Can Marketers Market?

Business-to-Consumer (B2C) Goods and Services - these are tangible (goods) and intangible (service) products consumers purchase for personal or family use. Business-to-Business (B2B) Goods and Services - this is the marketing of industrial goods (e.g., raw materials) and services (e.g., legal) from one organization to another. Not-for-profit Organizations (NGOs) - they buy goods and services to conduct their business and serve their members. Universities, Churches, Museums, Zoos, YMCA, etc. Idea, Place, and People have to engage in marketing activities "Don't mess with Texas", Kardashians, Kevin Brady

According to the BCG growth-market share matrix, question marks are strategic business units (SBUs) with low market shares in fast-growth markets. Stars are SBUs with products that have a dominant market share in high-growth markets.

Cash cows are SBUs with a dominant market share in a low-growth-potential market. Dogs are SBUs with a small share of a slow-growth market.

Introducing existing products to new markets is part of a market development strategy. Seeking to increase sales of existing products to existing markets is part of a market penetration strategy.

Creating growth by selling new products in existing markets is part of a product development strategy. Emphasizing both new products and new markets to achieve growth is part of a diversification strategy.

Seeking to increase sales of existing products to existing markets is part of a market penetration strategy. Introducing existing products to new markets is part of a market development strategy.

Creating growth by selling new products in existing markets is part of a product development strategy. Emphasizing both new products and new markets to achieve growth is part of a diversification strategy.

The second step in the operational planning process is to use marketing metrics to monitor how the plan is working. The first step in the operational planning process is to develop action plans to implement the marketing plan.

Developing growth strategies is the last step in the strategic planning process. Performing a situation analysis is the first step in the functional planning process.

In the operational planning process, using marketing metrics to monitor how the plan is working is the second step. In the operational planning process, developing action plans to implement the marketing plan is the first step.

Developing marketing strategies is the third step in the functional planning process. Establishing the business portfolio is the fourth step in the strategic planning process.

What is the second step in the strategic planning process?

Evaluate the internal and external environment.

Marketing Facilitates: Exchange Relationship

Exchange occurs when one party gives up something in return for receiving something else. Conditions necessary for exchange At least two people or organizations must be willing to make a trade (i.e., buyer, seller). Each must have something the other party wants Each must agree on the value of exchange and terms Each party is free to accept or reject exchange Exchange may NOT take place even if conditions are met. "Why is Bank robbery and movie piracy NOT considered valid exchanges?"

Marketing Concept

Firm's that embrace the marketing concept constantly seek information about current or changing needs from current and potential customers using company initiated research efforts. Focusing on customer wants and needs to distinguish products from competitors' offerings Integrating all the organization's activities to satisfy these wants and needs Achieving the organization's long-term goals by satisfying customer wants and needs legally and responsibly Most modern marketers practice the marketing concept

Marketing Mix: Promotion

Includes all activities marketers undertake to inform, educate, persuade, and remind consumers about their product. Role of promotion is to bring about exchanges with target markets by influencing attitude and/or behavior. Each element of the promotion mix is coordinated with the others to create an Integrated Marketing Communication (IMC) message. IMC includes integration of the Promotional Mix (e.g., Advertising, Public relations, Sales promotion, Personal selling, Social media

Value for Stakeholders

Marketers meet the needs of all "stakeholders" (not just customers) Example: sellers, business partners, investors, community Corporate social responsibility is a business's concern for society's welfare. Example: Corporate social responsibility at Target All seafood sold in the stores are sustainable and traceable Reusable bag program saves consumers $7 million/annually 50+% of apparel sold at Target is labeled "machine wash cold" to help reduce energy consumption.

Production Era(Popular 1900s-1940s

Marketing dominated by a production orientation A management philosophy that emphasizes the most efficient ways to produce (manufacturer) and distribute products Marketing promotion played a minor role Most popular during the beginning of the industrial revolution, when demand for products outstripped supply (sellers market) and consumer needs were thought to be homogeneous. Examples: Henry Ford's Model T, Ivory soap, Apple's Iphone

Sales Era(Popular: 1940s-1960s

Marketing dominated by selling orientation A managerial view of marketing as a sales function, or a way to reduce inventory. Emphasis on aggressive promotional activities Popular after World War II, when production capacity exceeded demand. Led businesses to focus on one-time sales (transactional marketing) of goods (customer acquisition) rather than repeat business (customer retention). "Marketing's image was damaged during this time." Examples: Automobile Dealerships, Time shares

Triple Bottom-Line Era(Popular: 1990s-Present

Marketing focused on societal marketing orientation An organization exists not only to satisfy customer needs and wants but also to preserve society's long-term interests. Management seeks to maximize ROI measurement across all three of the following areas The Financial Bottom Line (Profits): building long-term bonds with customers which emphasize financial gains to stakeholders. The Social Bottom Line (People): contributing to the communities in which the firm operates The Environmental Bottom Line (Planet): creating sustainable business practices that minimize damage to the environment. Examples: Investment firms like BlackRock donate time (volunteer), donate products (books), donate money (1% of profits)

Relationship Era(Popular: 1960s-1990s)

Marketing focused upon consumer orientation A management philosophy that emphasizes satisfying customers' needs and wants Here, marketing plays a central role in companies Brought about the emergence of the marketing concept Total Quality Management (TQM) gained wide acceptance as a philosophy that involves all employees from the assembly line onward in continuous product quality improvement efforts. This is given birth to the instapreneur (an Instant entrepreneur is someone who uses online retail outlets, like eBay and Amazon, to market products that would otherwise be too costly to promote).

What Is Marketing? 2005 American Marketing Association Definition

Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

What Is Marketing? 2013 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.

Which of the following is used by firms to outline marketing objectives and​ strategies, and identify who is responsible for carrying out each part of the​ strategy?

Marketing plan this is a document that describes the marketing​ environment, outlines the marketing objectives and​ strategy, and identifies who will be responsible for carrying out each part of the marketing strategy

Which part of the marketing process includes thoughts about the​ "big picture" and where the firm and products fit within​ it?

Marketing planning A big part of the marketing process is marketing​ planning, where we think carefully and strategically about the​ "big picture" and where our firm and its products fit within it.

What's Next in the Evolution of Marketing

Mobile marketing, which involves interacting with consumers through mobile devices (e.g., smart phones, tablets, wearables), will increase. User-generated content, where marketing is created by consumers and used in blogs, online reviews, and social media, will become more important than brand content. Corporate social responsibility, which refers to the responsibility to the community in which a business operates, will become a major marketing function. Greater use of Big data, which is the ability of marketers to create better products or improve customer service by using consumer data.

Needs, Wants, Benefits, and Demand

Needs Difference between actual and desired/ideal state Can be physiological (hunger) or psychological (mental) Wants Desire to satisfy a need in a particular way Influenced by history, past experience, culture, and society Big Mac and Coke, salad and water, rice and beans Benefits Consumer receive benefit when their need or want is satisfied McDonald's offering breakfast all day Demand Customers' desire for products coupled with the resources needed to obtain them

Examples of Valid Exchange Relationships

New car purchase Consumers exchange money and possibly a trade-in Dealership sells a physical auto, with warranty, and other add-ons Vacation resort Consumers exchange money and their precious/limited vacation time Resort exchanges lodging and potentially other services Politicians Consumers exchange their vote, time, effort, and money Politicians exchange promises in terms of how they intend to govern "Why is Americans' approval of Congress at 16%?"

Functional planning is a decision process that concentrates on developing detailed plans for strategies and tactics for the short term, supporting an organization's long-term strategic plan. Strategic planning is a managerial decision process that matches the firm's resources and capabilities to its marketing opportunities for long-term growth.

Operational planning is a decision process that focuses on developing plans for day-to-day activities that carry out an organization's functional plans. Business planning is an ongoing process of decision making that guides a firm in both the short term and the long term.

"15 Minutes of Fame"

People market themselves with their social media posts (e.g., Backpack kid). You may post something that goes "viral" Microcelebrity - is someone who is a celebrity for a very short period of time or someone who may not be known by millions of people, but may certainly have thousands of followers.

Marketing Mix: Price

Price is what a buyer must give up ($, product) to obtain a product. It is the assignment of value The most flexible of the "4 Ps" (quickest to change) Most important competitive weapon Total Revenues = Price x Units Sold Whereas higher prices may communicate higher quality, lower prices (sale, coupon) may increase demand.

Marketing Mix: Place

Product availability where (location) and when (time) customers want them Ensures products arrive in usable condition at designated places when needed All activities (supply chain) from raw materials to finished products. Place decisions are closely tied to the channel of distribution (the set of firms that work together to get a product from a producer to a consumer).

Evolution of Marketing

Production:Internal capabilities of the firm Sales:Aggressive selling techniques and belief that high sales result in high profits Relationship:Satisfying customer needs and wants while meeting objectives Triple Bottom-line:Satisfying customer needs and wants while enhancing individual and societal well-being

According to the BCG growth-market share matrix, stars are strategic business units (SBUs) with products that have a dominant market share in high-growth markets. Cash cows are SBUs with a dominant market share in a low-growth-potential market.

Question marks are SBUs with low market shares in fast-growth markets. Dogs are SBUs with a small share of a slow-growth market.

New Types of Markets: Shared Economy

Rentrepreneurs are entrepreneurs who are renting out their possessions when they are not using them. Examples: Ride-sharing services (e.g., Uber, Lyft), lodging--sharing services (e.g., Airbnb) Collaborative Consumption is when consumers would rather rent than purchase the products they use (e.g., U-Haul). Example 1: Vehicle-sharing services (e.g., Zipcar) Example 2: Rent the Runway rents high-end dresses for 1/10 the cost of buying

Which of the following is considered to be the key to successful​ marketing?

Satisfying consumer needs

Making decisions about how to best allocate resources across a company's strategic business units (SBUs) to ensure growth for the entire company occurs during the establish the business portfolio step of strategic planning. Evaluating the internal and external environment is the step in strategic planning in which management performs a situation analysis.

Setting organizational or SBU objectives is the step where top management translates a mission statement into organizational or SBU objectives. Developing growth strategies is the last stage in the strategic planning process and is where managers analyze how to make growth happen.

In operational planning, who is responsible for the planning?

Supervisory managers

Achieving Societal Marketing Orientation

Sustainability is about creating products that meet present needs while ensuring future generations can have their needs met. Some initiatives include: "Cradle-to-Cradle" philosophy is where a product is made from natural materials and is fully reusable, recyclable, and biodegradable, leading to net resource depletion rate of zero. Green marketing is the development and marketing of products designed to minimize negative effects on the environment or improve the environment. Marketing accountability (ROI) is the process of measuring how much value an organization's marketing activities create and their impact on the three bottom-lines.

examples

Target: gives back to local schools hotels: recommend hanging towels to help decrease the amount of washing and environmental harm

Developing marketing strategies—making decisions about what activities must be accomplished to achieve the marketing objectives—is the third step in the market planning process. The first step in market planning is to perform a situation analysis.

The second step in market planning is to set marketing objectives. The fourth step in market planning is to implement and control the marketing plan.

The first step in market planning is to perform a situation analysis. To do this, managers build on the company's SWOT analysis and search out information about the environment that specifically affects the marketing plan. The second step in market planning is to set marketing objectives.

The third step in market planning is to develop marketing strategies. The fourth step in market planning is to implement and control the marketing plan.

The second step in the strategic planning process is to evaluate the internal and external environment. This process is known as a situation analysis. The first step is to define the mission.

The third step is to set organizational or SBU objectives. The fourth step is to establish the business portfolio.

The second step in the strategic planning process is to evaluate the internal and external environment. This process is known as a situation analysis. The first step is to define the mission.

The third step is to set organizational or SBU objectives. The fourth step is to establish the business portfolio. previous

Which of the following describes the external environment?

The uncontrollable elements outside an organization that may affect its performance either positively or negatively are known as the

In operational planning, supervisory managers are charged with the planning. Top-level corporate management is responsible for strategic planning.

Top functional-level management, such as the chief marketing officer (CMO), is responsible for functional planning. Human Resources management is not involved in the various of levels of planning.

What is the second step in the operational planning process? ANSWER Unselected

Use marketing metrics to monitor how the plan is working.

Marketing Creates Utility

Utility represents the sum of benefits a consumer receives from the use of a good or service. Utility creates value in the following ways: Form utility is benefit provided by marketing when raw materials are transformed into finished goods (Raw oats into Oatmeal) Place utility is benefit provided when marketing makes goods available where customers want them (Internet vs Retail store) Time utility is benefit provided by marketing when products are stored (or inventoried) until they are needed (wholesalers) Possession utility is benefit marketing provides by allowing the consumer to enjoy, use, and own the product (renting vs leasing vs buying a car).

What is considered to be the benefit that a customer will realize if he or she purchases a specific product being​ marketed?

Value proposition the value proposition includes the whole bundle of benefits the firm promises to​ deliver, not just the benefits of the product itself.

Functional planning is __________.

a decision process that concentrates on developing detailed plans for strategies and tactics for the short term, supporting an organization's long-term strategic plan

A document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy is known as __________.

a marketing plan

According to the BCG growth-market share matrix, question marks are strategic business units (SBUs) with __________.

low market shares in fast-growth markets

primary function pf business marketing

making wealth

Introducing existing products to new markets is part of a __________ strategy.

market development

Seeking to increase sales of existing products to existing markets is part of a __________ strategy.

market penetration

Which growth strategy is designed to increase sales of existing products to current customers, nonusers, and users of competitive brands in served markets?

market penetration

needs, wants, benefits, and demand

marketers have challenges to promote something against beliefs ex. monks have a hard time marketing things because they really believe in a non materialist life

A(n) __________ describes the overall purpose of the organization and what it intends to achieve in terms of its customers, products, and resources.

mission statement

A plan that focuses on the day-to-day execution of the marketing plan is a(n) __________.

operational plan

What is the first step in market planning?

perform a situation analysis

4 P's of Marketing

product, place- (distribution), price, promotion- (COMMUNITY)

The __________ step in the strategic planning process is to evaluate the internal and external environment

second

A market penetration strategy __________.

seeks to increase sales of existing products to existing markets

price....

something you give up to obtain -price: most flexible -higher price=higher quality -lower prices = increase demand yield system management: hotels, flights, etc -ex. every university ranks own price

__________ planning is a managerial decision process that matches an organization's resources and capabilities to its market opportunities for long-term growth and survival.

strategic planning