Marketing Exam One

Business culture & industry practice - recent high profile contraventions:

- insider trading (brokerage) - deceptive sales practices (insurance) - bribery (defense contracts)

The consumer makes his decision and buys a Nikon digital camera. If his experience is rewarding, he'll probably use his camera more and more, and his response will be reinforced. He forms a positive impression of Nikon products, based on his experience. The next time this consumer shops for a camera, or binoculars, or some such similar product, the probability is greater that he will buy a Nikon product.

brand loyalty

organizational direction

business goal (objectives) - long term - short term

Foremost is the organization itself, whose mission and objectives determine what?

business it is in and what goals it seeks.

Satisfying exchanges happen when both

customers and marketers benefit

Marketers often use what to better understand customer ideas?

customers surveys, concept tests, and other forms of marketing research

Marketers need to improve the balance between _______, ________ and _________

demographic; psychographic; behavioral research

describing a population according to selected characteristics like population size, density, age, gender, ethnicity, income, occupation & other statistics

demographics

least corrupt country? most corrupt country?

new zealand; somali

Where to buy? (i.e. from whom) When to buy?

purchase decisions

Finally, effective marketing benefits and enhances what?

society; competition

Providing choices leads to what?

the consumer satisfaction and quality of life

are formed at a young age, & usually remain fairly intact.

traits

"A marketing department both shapes and is shaped by its relationship with these internal and external groups."

true

Jobs/weather are reason people move seattle = starbucks=toothpaste UTAH = mormon =candy New Orleans = ketchup = cajun cooking Miami = prew juice = retiring moving from rural to metropolitan

true

Many businesses operate in environments where important forces change. Anticipating and responding to changes often means the difference between marketing success and failure

true

about 14% of Americans move house each year over past 25 years, Americans have moved towards Sunbelt states

true

The task is to translate the results of the SWOT analysis into specific marketing actions that will help the firm grow.

true

Choice of seller depends on return policies, terms of sale, past experience, reputation

where

Every organization must develop strategies to help what?

focus and direct its efforts to accomplish its goals.

The production of the product or service

form utility

There are four different utilities:

form, place, time, and possession

Ethical choices are all filtered through personal moral philosophies of individual decision-makers.

individual philosophy

Determining which products will be directed toward which customers is essential for developing an effective marketing program. This decision is often based on what?

market segmentation

markets to more than one culture at a time

multicultural marketing

These organizational strategies vary in at least two ways, depending on

(1) a strategy's level in the organization (2) the offerings an organization provides to its customers.

Strategies to avoid new product failure:

1. focus on consumer benefit 2. learn from past

Simon Sinek believes Millennials are the way they are for 4 reasons:

1. "Failed parenting" strategies 2. Technology 3. Impatience 4. Environment

To successfully measure success of mission:

1. Define mission narrowly 2. Research effectiveness of programs. 3. Develop 'micro level' goals, and extrapolate results.

Sociocultural Factors These also impact consumer behavior. 5 things

1. Personal influence 2. Reference groups 3. Family 4. Social class 5. Culture & subculture

A social audit consists of five steps

1. Recognition and rationale 2. Identification 3. Determination 4. Specification 5. Evaluation

Situational Influences

1. The purchase task 2. Social surroundings 3. Physical surroundings 4. Time 5. Pre-existing conditions

There are at least four possible reasons the state of perceived ethical business conduct is at its present levels:

1. increase pressure 2. being judged 3. increase public exposure 4. ethical business conduct has declined

How many choices do customers need?

5-6

is a privately owned organization such as Target, Nike, or Cree that serves its customers to earn a profit so that it can survive

A for-profit organization, often called a business firm

gen z

Age ±9 to 19 (or 23) years old Never known a world without Internet, cell phones, iPods Tech savvy Sense of social justice, philanthropy, maturity from growing up in a severe recession Prefer texting to holding a live conversation Digital Natives era of smaller families + protective parenting college should be a 'safe' space less risk-taking

feeling of post-purchase psychological tension or anxiety

Cognitive Dissonance

is charged with developing and implementing programs, advertising, and partnerships that promote responsible drinking; helping prevent drunk driving; and helping curb underage drinking before it starts

Corporate Social Responsibility

What companies think they are providing = what customers say they are receiving?

Customer experience: (Remember: Manage expectations.)

- membership is avoided, due to differences in values or behaviors

Dissociative group

secret collection of trade secrets or proprietary information about company's competitors - includes illegal trespassing, theft, fraud, misrepresentation, wire tapping, searching competitors' trash, violations of non-compete clauses - costs $300 billion in lost sales per year (to US companies) - most prevalent in high-tech industries, e.g. electronics, specialty chemicals, industrial equipment, aerospace, pharmaceuticals - Economic Espionage Act (1998

Economic espionage

people born between ±1977 and ±1995 or 1999; >72 million in USA; children of baby Boomers: 'echo boom'

Generation Y = Millennials

people born since 1996 or 2000; children of Generation X

Generation Z= iGen

What are essential to successful environmental scanning.

Identifying and interpreting trends, and developing explanations

means of delivering product to consumer

place

Reasons for ethics violations:

Lack of specificity

Visibly poor; often poorly educated unskilled laborers; often out of work; some depend on public assistance; tend to day-to-day existence

Lower Lowers (7%)

Earned high income or wealth through exceptional ability; active in civic affairs; buy expensive homes, education, cars

Lower Uppers (2%)

Who are these 20th century examples of extraordinary ethical behavior?

Mahatma Gandhi, Mother Theresa, Nelson Mandela

Diversification Analysis steps

Market Penetration Market Development Product Development Diversification

membership by choice or by birth e.g. social clubs, fraternities/sororities; family

Membership group

Average-pay white- & blue-collar workers; live on 'the better side of town'; buy popular products to keep up with trends; better living means owning a nice home in a nice neighborhood with good schools

Middle Class (32%)

These psychological factors affect consumer behavior 8 things

Motivation Personality Perception Learning Values Beliefs Attitudes Lifestyle

Concepts of Social Responsibility:

PROFIT STAKEHOLDER SOCIETY

Least respected occupations!

Politicians Car salespeople Advertising practitioners

analysis of consumer lifestyles combines psychology, lifestyle & demographics useful for segmenting & targeting markets

Psychographics

John Holland developed a model of 6 personality types (diagram above), that is mostly used in career counseling. His 6 personality types are:

Realistic Investigative Artistic Social Enterprising Conventional

tendency to interpret information in ways that support what a person already believes

Selective distortion / comprehension

remember good features of preferred brands; forget good features about competing brands

Selective retention

3 types of culture?

Societal culture Business culture Corporate culture

exposure to advertising messages without being aware of that exposure

Subliminal Perception

market segmentation allows what?

This enables an organization to focus specific marketing programs on its target market segments.

The working poor. Living standard is just above poverty; strive toward higher class; often lack education; poorly paid for unskilled work

Upper Lowers (9%)

Professionals, independent businesspeople, corporate managers with neither family status nor unusual wealth; believe in education, are joiners & highly civic-minded; want 'better things in life'

Upper Middles (12%)

Social elite; live on inherited wealth; give large sums to charity; own more than one home; children go to finest schools

Upper Uppers (1%)

"the greatest good for the greatest number if benefits > costs, then behavior is ethical e.g. Good Start

Utilitarianism -

Behavioral sciences help explain _____ AND _____ choices are made.

WHY AND HOW

actions data visualization is a what and does what?

a graph (1) spot deviations from plans during the evaluation phase and (2) take corrective

refers to a device or system that can be viewed only in terms of its input, output, and transfer characteristics, without having a complete understanding of its internal workings.

black box

growing affluence & sophistication; more price conscious; quality & selection important; most fashion-conscious ethnic group; enjoy shopping

african american

Marketing affects what 4 things?

all individuals, all organizations, all industries all countries.

Evaluative criteria objective & subjective attributes Consideration set group of brands consumer finds acceptable (i.e. short list)

asssessing value

Should marketing try to satisfy consumer needs or consumer wants?

both

fastest-growing & most affluent segment; shop frequently; most brand conscious but least brand loyal; most tech savvy segment

asian american

(= buyer beware): When you buy something, YOU are responsible for checking its quality is acceptable to you.

caveat emptor

means having the offering available where consumers need it,

place utility

formal statement of ethical principles & rules of conduct

code of ethics

are groupings of adjacent metropolitan and micropolitan areas

combined statistical areas

financial, media, government, citizen-action, local, general, internal community

communities

the actions taken by an individual to purchase & use products & services

consumer behavior

organization's special capabilities, i.e. skills, technologies, resources that distinguish it from other organizations, and provide customer value

core competency

Organizational culture derives from what?

core values

raised in an environment where every piece of technology is intuitive, logical, mature.

digital natives

raised in an environment where every piece of technology is intuitive, logical, mature. Gen. Z more likely from non-traditional households; their parents (Gen. X) are more likely to be divorced and to work outside the home. Gen. X's parenting style is driven by absenteeism - overindulgence. Gen. X parents want above all else to raise their children to have high self-esteem, even if this means never correcting them or challenging them to try for things beyond easy reach. So Gen. Z's experience independence from powerful mobile technology and sense of affirmation from their parents. This translates to a sense of entitlement which is a double-edged sword. They have the resources and initiative to make positive changes, but they may not have the experience with failure necessary to know what it takes to persevere

digital natives

discovering needs involves

discovering needs involves looking carefully at prospective customers

Search for new opportunities among current & new products, current & new markets

diversification analysis

forces also influence the demand for Facebook as the cost of smartphones and wireless connectivity declines and Internet access expands throughout the globe, making social networking increasingly affordable to more and more people.

economic

• Companies are increasing their focus on cost control as sales slow in emerging markets and competition increases in mature countries. • China and the U.S. are likely to account for a growing part of the world's economic growth. • The U.S. personal saving rate has increased to 5.8%, indicating reduced spending, although income has been growing at about 2%

economic

remote suburbs

exurbs

The marketing department is responsible for

facilitating relationships, partnerships, and alliances

criteria established by the International Fair Trade Labelling Organization for agricultural commodities such as cocoa beans.

fair trade

distinct phases through which a family moves, showing distinctive purchasing behaviors

family life cycle "at each stage family have different needs"

physical objects that satisfy consumer needs

goods

which is people with both the desire and the ability to buy a specific offering

market

tend to buy more branded, higher-quality, not generics family shopping; brand loyal

hispanic

AMA has an extensive Statement of Ethics for members (pp. 96-97). These ethical values include such as 5 things?

honesty, responsibility, fairness, respect, citizenship.

To convert these into foundation and direction into actual results the organizational strategies are concerned with the what?

how

are thoughts about concepts, actions, or causes

ideas

changes in a person's behavior resulting from experience + reasoning

learning

marketers can build up demand for a product by associating it with strong drives, using motivating cues, & providing positive reinforcement

learning

forces also influence the growth of Facebook. The company obtains trademark and patent rights to its name and many of its features, and it provides guidelines for a variety of topics such as privacy, data protection, protection of minors, and taxation

legal and regulatory

strategic variations

level/offering

mode of living identified by how people spend their time & resources, what they consider important in their environment, what they think of themselves & the world around them

lifestyle

Goals and objectives convert an organization's mission and business into what?

long- and short-term performance targets, in order to see how well it is doing.

Goal setting involves specifying

measurable marketing objectives to be achieved

has at least one urban area of 50,000 or more people; most Americans (83%) live in metropolitan areas

metropolitan statistical area

Suppliers/Natural resources Intermediaries Customers Competition Communities ('publics')

micro environment

includes consumer income & expenditure; gross income, disposable income, discretionary income

microeconomic factors

has at least one urban cluster of between 10,000 and 50,000 people

micropolitan statistical areas

Metrics MUST be linked to a what?

mission

nothing

nothing

social class formula

occupation + education + source of income

(goods, services, or ideas) that create value for both the organization and its customers by satisfying their needs and wants.4

offerings

organization's marketing activity focuses on

on assessing and satisfying consumer needs,

what motivates offerings

organization

process by which people select , organize & interpret information, to form a meaningful picture of the world

perception

unique consistent pattern of thinking, feeling & acting Market research: Compliant people prefer known brand names, and use more mouthwash & toilet soaps. Aggressive types use razors rather than electric shavers; they apply more cologne & aftershave lotions, and buy status-brands (conspicuous consumption).

personality

strategic marketing process phases

planning implementation evaluiation

characteristics of a product that make it superior to competitive substitutes

points of difference

is the value of making an item easy to purchase through the provision of credit cards or financial arrangements.

possession utility

Societal responsibility refers to obligations that organizations have

preservation of the ecological environment to the general public

amount consumer pays for good (can be cash or kind)

price

Ethics deal with personal moral what?

principles

can be stimulated by marketing activity, or by simple observation

problem recognition

A good, service, or idea to satisfy the consumer's needs.

product

is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value.

product

Four Ps

product price promotion place

list of offerings

product service idea

means of communication between buyer and seller

promotion

Companies use social class to identify & target good

prospects

people to whom an individual looks for self-appraisal or as a source of personal standards - affect luxury product & brand choices, but not necessities

reference groups

people to whom others look for self-appraisal, a source of personal standards, or approval

reference groups

online environment health

regulatory force

developing & maintaining effective customer relationships

relationship marketing

selective perception formula

selective attention + selective distortion + selective retention

tendency for people to screen out most information to which they are exposed.

selective attention/ selective exposure

Maslow hierarchy of needs

self actualization "self fulfillment" self esteem " psychological" (personal needs) love and belonging " (social needs) psychological" safety and security "basic" physiological needs "basic" water

the way people see themselves & the way they believe others see them

self concept

actual & ideal

self-concept

self actualization needs:

self-fullfillment

intangible items

services

understanding how a company's target consumers behave as shoppers, in different channels and formats, and leveraging this intelligence to the benefit of all stakeholders (i.e. brands, consumers, retailers and shoppers)

shopper marketing

people born between 1930 and 1939

silent generation "depression"

Smart goal setting meaning

specific measurable attainable (Achievable) relevant time-based

Two decision-making styles exist:

spouse-dominant and joint decision making

focuses on the obligations an organization has to those who can affect achievement of its objectives. These constituencies include consumers, employees, suppliers, and distributors

stakeholder responsbility

personal needs:

status,respect, prestige

group of businesses that markets related offerings to a particular market; usually a subset of a large multinational corporation

strategic business unit

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

sustainable development

Marketers have embraced societal responsibility through what?

sustainable marketing

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

sustainable marketing

an acronym describing an organization's appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats.

swot analysis

customer value proposition is a unique combination of benefits received by who?

target buyers

marketing effort focus on specific group(s) of potential consumers

target market

process of evaluating each market segment's attractiveness, and selecting one or more segments to enter

target market

smart tools big data connectivity

tech forces

point of difference

the match between market segments and products

All aspects of consumer behavior are rooted in CULTURE culture affects all consumer behavior.

true

All markets ultimately are people

true

An environmental scan of today's marketplace shows the many important trends that influence marketing

true

An organization is limited

true

Anticipating and responding to changes often means the difference between marketing success and failure.

true

Generally speaking, three major social class categories exist—upper, middle, and lower—with subcategories within each.

true

Ford and Bridgestone/Firestone: Who's to Blame? The Ford and Firestone debacle is bound to become a classic business story of corporate arrogance. It's an example of 2 companies that did not seem to grasp the marketing concept—blaming both consumers for not properly maintaining tire air pressure or not driving safely, and one another. Both companies seem oblivious to the fact that they themselves are responsible. 1. What moral philosophy appeared to guide the decision making at Ford? At Bridgestone/Firestone? Is there any evidence that either company changed its decision making model as lawsuits mounted? (a) Moral philosophy. Ford used a utilitarianism philosophy since all decisions appeared to hinge on costs: Not moving or redesigning the gas tanks or rear compartments in the Pinto and Crown Victoria. Using the least costly correction for design flaws on the Explorer. Continuing to use an unstable design platform (Bronco) for the Explorer. Launching the Explorer in spite of the poor reviews and lawsuits for the Bronco. Eliminating a higher quality but higher cost tire supplier (Goodyear) despite hard evidence that the Firestone product was inferior. However, Ford appeared to have underestimated the true costs of their decisions to the organization. Bridgestone/Firestone also appeared to operate under a utilitarian model for decision-making. The company appeared negligent in responding to early complaints of tire failure in a timely fashion. Public sources do not suggest that decisions were made to willfully market an unsafe product. (b) Evidence of change. Neither company appeared to deviate from the utilitarian model. The escalating finger-pointing and failure to get together to discuss and solve the common problem they were facing shows that the companies did not put the interests of the public at the forefront. 2. Do you see Ford's handling of the situation surrounding the development, marketing, and subsequent recall as ethical but illegal, ethical and legal, unethical but legal, or unethical and illegal? Why? The actions appear to be unethical and illegal. Ford appears to have knowingly marketed a product that was unsafe that consequently led to damage and injury, opening the door to issues of product liability. Ford's actions appear to be unethical under a moral idealism model and also possibly under a utilitarian model if all the true costs of the decisions could be calculated—lawsuits, loss of goodwill and reputation, impact of future sales, etc. 3. What actions would you recommend Ford take to deal with the aftermath of this situation? Re-establishing credibility for the brand and the product took time. The Explorer has been referred to as "The Exploder" and it may very difficult for Ford to regain consumer trust in the product. The first step must be to improve the design and safety of the Explorer and all Ford vehicles. Unless this step is taken, any attempts to rebuild its reputation will fail since there is no assurance that anything substantive has changed with respect to the product. Ford also should have a full complement of well-trained customer representatives available through the Internet or toll-free 800 numbers to answer any consumer concerns. Ford should fully disclose any information helpful to government investigations. Ford should take a lead role in the industry in pressing for stricter safety features for cars and trucks. Epilogue Ford and Firestone continue to settle lawsuits related to failures on the Explorer and Firestone tires. Ford continues to maintain that the Explorer is safe. However, U-Haul International, Inc. has issued a ban on renting its trailers to any Ford Explorer customers, citing liability issues. In addition, Ford overruled its own safety engineers' advice to recall up to 4.1 million pickups and SUV—F150, F250, Expedition, and Lincoln Navigators—that had substandard door latches that caused doors to fly open. Ford, unwilling to spend upwards of $527 million for a recall, claimed that the latches could pass a rarely used alternative compliance test; the National Highway Transportation Safety Administration does not accept a test that plaintiffs' lawyers contend. On the other hand, 290,000 Firestone Steeltex tires have been recalled that were installed on the Ford Excursion. Lawsuits have been filed on behalf of plaintiffs injured or killed. Former Firestone workers have testified or will testify that to reduce costs, Firestone made cutbacks on technicians and engineers qualified to inspect the tires. Rubber used to manufacture the tires was sometimes not tested. Said one 30-year employee, "I had complained to them that the test procedures they used were inadequate. These issues I was trying to bring up, nobody paid attention to."

true

Goods, services, and ideas are marketed.

true

Income + Occupation + Education + Wealth INCREASE as you move up the continuum

true

no

true

no consistency for terms consumers, buyers, and customers

true

online directory that connects people through social networks at colleges.

true

Marketing creates what?

utility

the benefits or customer value received by users of the product

utility

can be personal or group

value

quality, features and performance of a product, for a given price; should lead to satisfaction

value

Customers form expectations about the _______________ that various marketing offerings will deliver

value and satisfaction

Customer expectations revolve around

value, tasty food, dependable service

How can you change environmental forces?

via forward-looking, action-oriented firm

employees who report unethical or illegal actions of their employees

whistle-blowers

the organizational foundation sets the

why

If marketers set expectations too high, buyers

will be disappointed

Visionary organizations:

(1) establish a foundation; (2) set a direction; and (3) create strategies to successfully develop and market their offerings

Robert M. McMath, who has studied more than 110,000 of these new-product launches, has two key suggestions

(1) focus on what the customer benefit is, and (2) learn from past mistakes

Today's organizations are of three types:

(1) for-profit organizations, (2) nonprofit organizations (3) government agencies

Roles of individual family members in the purchase process are another element of family decision making. Five roles exist

(1) information gatherer (2) influencer (3) decision maker (4) purchaser (5) user.

three steps in the planning phase of the strategic marketing process

(1) situation (SWOT) analysis, (2) market-product focus and goal setting, and (3) the marketing program.

In studying today's organizations, it is important to recognize 3 things

(1) the kinds of organizations that exist, (2) what strategy is, and (3) how this strategy relates to the three levels of structure found in many large organizations.

consumer behavior indicates that these acts are rarely motivated by economic need. This behavior appears to be influenced by what?

(1) won't get caught (2) the rationalization

Related research shows that consumers what?

(1) won't sacrifice (2) and lack knowledge

Strategic Marketing Process: After an organization assesses where it is and where it wants to go, other questions emerge, such as:

1. Planning How do we allocate our resources? 2. Implementation How do we convert our plans into actions? 3. Evaluation How do our results compare with our plans, and do deviations require new plans?

Strategic Planning Questions

1. Where are we now? 2. Where do we want to go?

marketing to Hispanics has proven to be a challenge for two reasons

1. diversity 2. language barrier

purchase decision process

1. problem recognition "perceiving a need" 2. information search "seeking value" 3. alternative evaluation "assessing value" 4. purchase decision "buying value" 5. post purchase behavior consuming/using value"

If organizations are to achieve sustainable long-term growth, they must simultaneously improve:

1. the state of the people, 2. the state of the planet, and 3. profits

is a legal entity that consists of people who share a common mission.

An organization

- membership is desired in this group e.g. professional society, professional sports team

Aspiration group

Some major contemporary social responsibility issues:

Bribery & corruption Human rights & decent labor conditions No child labor, slave labor, human trafficking Fair trade practices 'Green' initiatives

The Ben & Jerry's SWOT analysis in Figure 2-7 can be the basis for these kinds of specific marketing actions. An action in each of the four cells might be:

Build on a strength. ● Correct a weakness. ● Exploit an opportunity. ● Avoid a disaster-laden threat.

Pro green movement companies print numbers on their products, representing the grams of CO² emitted from producing and transporting them to retailers. This number displays the environmental impact of all materials used in production and distribution of that product.

Carbon literacy training:

Charitable contributions of a company are directly ties to customer revenues from its product(s)

Cause marketing:

whistle-blowers will have more protection from their employers seeking revenge; they will also be rewarded financially at a much greater rate than before.

Dodd-Frank Wall Street Reform bill (2010)

The solution to preventing product failures

First, find out what consumers need and want. Second, produce what they need and want, and don't produce what they don't need and want

people born before 1930; came of age during Great Depression; fought in WW II

GI Generation "greatest"

mini earth project statistics

If the World were 100 PEOPLE: 50 would be female50 would be male Ages: 25 would be 0-14 66 would be 15-64 Geography: 60 Asians 16 Africans Religion: 31 Christians 23 Muslims Literacy: 86 would be able to read and write Education:7 would have a college education Technology: 65 cell phone users 47 active Internet users Shelter: 78 shelter from wind and rain Food & infectious disease :11 undernourished AIDS 1 tuberculosisLanguages 12 would speak a Chinese dialect Urban/rural: 54 would live in urban areas Poverty: 11 would live on < US$1.90 per day

Why is ethical conduct in US businesses so lax?

Pressure on businesspeople to make decisions in a society with diverse (and unreconciled) value systems Business decisions are being judged by groups or commentators with different values and sometimes conflicting interests Public expectations of ethical business behaviors has increased, mostly as a result of frequent abrogation of public trust (i.e. white collar crime) Ethical business conduct has declined - or maybe it's just become more publicized

strategy goals for for profit businesses/ non-profit businesss

These goals should include PROFIT (in for-profit businesses) or some other METRIC (in non-profits).

'Working-class lifestyle', whatever their income, school background or occupation; depend heavily on relatives for economic & emotional support, advice on purchases, assistance in times of trouble

Working Class (38%)

consumer's consistent or inconsistent feelings & tendencies toward a product; hard to change

attitudes

people born between ±1946 and ±1964; 76 million in USA 22% of population > 50% personal income lucrative new markets

baby boomers

consumer's subjective perception of product performance

beliefs

a couple and their children from this and all previous relationships

blended family

favorable attitude toward & consistent purchase of brand over time

brand loyalty

before a 'favor' is done

bribe

Marketing creates its utilities by

bridging space (place utility) and hours (time utility) to provide products (form utility) for consumers to own and use (possession utility).

- defines the 'rules of the game', the 'fine lines' between competitive & unethical conduct

business culture

quantify performance of SBUs on growth share matrix

business portfolio analysis

If marketers set expectations too low, they may satisfy those who

buy but fail to attract enough buyers

organizational strategies

by level by offering

• Established industries such as banking, insurance, and retailing will be challenged by new competitors such as peer-to-peer lenders, self-insurance groups, and direct-to-consumer food producers. • Companies will increase their use of data and data analytics to compete with personalized products, promotion, and pricing. • Competitors are moving away from loyalty programs based only on points toward rewards, cash, and promotions.

competitive

customer-generated content strategic alliances

competitive forces

such as the rivalry with Google, Twitter, and Snapchat, the ability of users to easily switch platforms, and the constant threat of new social networks targeted at specific interest groups, encourage rapid expansion.

competitive forces

codified ethics of exchange between buyers & sellers; established by JFK, 1962.

consumer bill of rights

Consumers also have responsibility to act ethically.

consumer responsbility

grassroots movement begun in 1960s to increase power and rights of consumers with regard to businesses

consumerism

In our free-enterprise society, there are three specific groups that benefit from effective marketing:

consumers who buy, organizations that sell, and society as a whole.

Experience versus Expectations Cognitive dissonance Customer satisfaction studies: satisfied - tell 3 people dissatisfied - tell 9 people

consuming using value

organization's fundamental and enduring principles that guide its conduct over time; affect everyone

core values

Organizational foundation

core values mission (vision) culture

set of values, ideas & attitudes that is learned & shared among members of an organization

corporate culture

where top management directs overall strategy for the entire organization

corporatve level

These consist of a small number of people from different departments who are mutually accountable to accomplish a task or a common set of performance goals. Sometimes these teams will have representatives from outside the organization, such as suppliers or customers, to assist them.

cross-functional teams

are minor stimuli that influence when, where, and how a person responds.

cues

set of values, ideas, attitudes, & norms of behavior, that are learned, shared and passed on, among members of a community (social community, business organization, etc.)

culture

wants take form when shaped by what?

culture & individual personality.

Customer will develop expectations about the seller's future behavior, based

current and past purchase experiences

utility derived from owning and using the product

customer gain

value customer getting out of product

customer value

Designing an effective marketing mix also conveys to potential buyers a clear

customer value proposition

what's because of world trade?

declining % of world's population in developed countries high growth rate of aging population changes in living standards

corporate culture examples

demonstrated in dress, mantras, ways of working evident in expectations of ethical behavior, especially the example of top management

generally refers to these specialized functions such as marketing and finance

department

Most common unethical conducts in business:

economic espionage bribery

Ethics of Competition:

economic espionage bribery

econ. crises global activities

economic forces

shoplifting reasons

economic pressure 'rush' belief that can get away with it dislike of large companies; "they'll never even feel it"

reduce perceived risk 5 things

endorsement seals of approval free trial / sample Instructions warranty / guarantee

that affect a marketing decision, which consist of social, economic, technological, competitive, and regulatory forces

environmental forces

the process of continually acquiring information on events occurring OUTSIDE the organization, to identify and interpret potential trends

environmental scanning

are the moral principles and values that govern the actions and decisions of an individual or group.2 They serve as guidelines on how to act rightly and justly when faced with moral dilemmas.

ethics

moral principles and values that govern the actions and decisions of an individual or group

ethics

Both buyers & sellers should be better off after a transaction

ethics of exchange

BUT - common unethical practices include:

filing late warranty claims mis-redeeming coupons ($1 billion cost to manufacturers per year) fraudulent merchandise returns ($9.6 billion cost to manufacturers per year) inaccurate information on credit applications tampering with utility meters pirating music, movies, software shoplifting ($30 billion cost to retailers per year) false insurance claims (>$10 billion cost to auto insurance companies per year)

marketing mix

four ps

safety needs

freedom from harm, financial security

- believed people are largely unconscious of real psychological forces shaping their behavior. Buying decisions are affected by subconscious motivation.

freud

An aging baby boomer buys a sporty convertible. He explains that he likes the feel of the wind in his (thinning) hair. At a deeper level, he may be trying to impress others with his success, i.e. conspicuous consumption demonstrates that he has the money to buy this expensive car. At a still deeper level, he may be buying the car to feel young, independent and carefree again. He may even feel more virile and attractive in this car.

freud

social needs

friendship,belonging, love

where groups of specialists actually create value for the organization.

functional level

"birth dearth" after baby boom 1st generation of latchkey kids due to rising divorce rates among their parents & more employment for mothers cautious economic outlook due to growing up in recession & corporate downsizing care about environment; appreciate socially responsible companies less materialistic, want better quality of life rather than acquisition skeptical of marketing smoothness; prefer word-of-mouth; impatient; highly mobile $1.4 trillion in annual purchasing power 2010: overtook baby boomers as primary market for most product categories

gen x

"echo boomers" = children of boomers large teen & young adult market new markets: toys & games, clothes; furniture; food; stores ( ave. disposable income of $103 per week; spend $175 billion per year, influence another $30 billion in family spending "Millennials are more interested in driving and buying cars than much research has led automakers to believe, according to a new study MTV released Friday at the annual convention of the National Automobile Dealers Association. Survey conducted in spring 2014 of 3,600 people age 18-34 (Detroit Free Press report, reported in Charlotte Observer 1/24/2015): 75% would rather give up social media for a day than their cars 72% would rather give up texting for a week than their cars

gen y

people born between ±1965 and ±1976; 15% of population in USA; 'baby bust'; 'Gen.X'

generation X

is a federal, state, county, or city unit that provides a specific service to its constituents

government agency

marketing efforts to produce, promote, and reclaim environmentally sensitive products

green marketing

the practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, technology, or company practice.

green washing

All organizations set a strategic direction. And marketing by doing what?

helps to both set this direction and move the organization there.

The planning phase of the strategic marketing process (discussed later) usually results

in a marketing plan that directs the marketing actions of an organization.

needs include what?

include basic physical needs ; social needs; individual needs

Organizations that develop similar offerings create an

industry

Internal search relevant information in memory External search personal sources public sources marketer sources

information search

How do companies overcome the fear of failure?

innovation

A principal activity of a firm's marketing department

is to scrutinize its consumers to understand what they need and want and the forces that shape those needs and wants

the unique psychological characteristics that lead to relatively consistent and enduring responses to an environment e.g. assertiveness, extroversion, compliance, dominance, aggression

key traits

after a 'favor' is done

kickbacks

represent society's values and standards, and are enforceable in courts of law

laws

A good starting point for understanding the nature and significance of ethics is the distinction between what?

legality and ethicality of marketing decisions

Demographics Culture Economy (macro- & micro- factors) Technology Legislation/Regulation/Political Competition

macro environment

includes inflation/recession & aggregate consumer spending

macroeconomic factors

set of actual & potential buyers of product/service

market

BCG's growth- share matrix evaluates SBUS in terms of what?

market growth rate and relative market share

ways to expand market size using current and new products, in current and new markets

market growth strategies

group of consumers who respond in a similar way to a given set of marketing efforts

market segment

which involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action.

market segmentation

price charged for the product.

marketer's gain

Large organizations are extremely complex. They usually consist of three organizational levels whose strategies are linked to what?

marketing

view that organization should try to satisfy needs of consumers, while achieving organization's goals

marketing concept

is the visual display of the essential information related to achieving a marketing objective

marketing dashboard

shows in one quick glance all essential information about status of key indicators, e.g. top customers, revenue, sales trends, prices.

marketing dashboard

visual computer display of essential information related to achieving a marketing objective.

marketing dashboard

utility is the result of

marketing exchange process and the way society benefits from marketing

quantitative measure of value or trend of a marketing activity or result

marketing metric

on dashboard are linked to marketing objectives, which come from the marketing plan.

marketing metrics

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

marketing plan

four ps are controllable factors used by marketing manager to solve what?

marketing problems

integrates a marketing mix to provide a good or service or idea to prospective buyers

marketing program

A person seeks to satisfy the most important need first. Once that need is satisfied, it will stop being a motivator. As each important need is satisfied, the next most important need will come into play. e.g. Starving people (physiological need) are focused on survival, and will not take an interest in the happenings of the art world (self-actualization need), nor in how they are seen or esteemed by others (social or esteem needs), nor even whether they are breathing clean air (safety needs).

maslow

wanted to explain why people are driven by particular needs at particular times. Human needs are arranged in a hierarchy, with most pressing at the bottom, and least pressing at the top.

maslow

more time & money - leisure marketers; anti-aging products & services

mature consumers

statement of organization's purpose, i.e. what it wants to accomplish in the world; clear, concise, enduring, inspirational

mission statement

certain individual rights/duties considered to be universal, no matter the outcome e.g. Scotchgard

moral idealism

derives from socialization, friends, family, & formal education Influenced by society, business & corporate culture of the moment

moral philosophy

n/a

n/a

physiological needs

necessary things to live/shelter

occurs when a person feels deprived of something that is necessary for them to live

need

biological & psychological

needs

The first objective in marketing is discovering the

needs of prospective customers

is a nongovernmental organization that serves its customers but does not have profit as an organizational goal Instead, its goals may be operational efficiency or client satisfaction

nonprofit organization

people who exert direct or indirect social influence over others considered knowledgeable about particular products, services or brands often sports figures or celebrities

opinion leaders

widespread in purchase of cars, entertainment, clothing, accessories, club membership, consumer electronics, vacations, food, financial services.

opinion leadership

are those manufacturers, wholesalers, retailers, service companies, not-for-profit organizations and government agencies that buy products and services for their own use or for resale.

organizational buyers

A key role of the marketing department is to look

outward by listening to customers, developing offerings, implementing marketing program actions, and then evaluating whether those actions are achieving the organization's goals.

• Privacy guidelines must find a balance to accommodate millennial consumers who do not mind their mobile devices being tracked if they receive timely and relevant advertising. • Net neutrality—that all Internet traffic should receive equal access and speed—is a growing issue for consumers, companies, content creators, and marketers. • The Federal Trade Commission is adding stricter requirements regarding promotions, disclosures, and substantiation studies.

regulatory

process of identifying prospective buyers, understanding them thoroughly, and developing favorable long-term perceptions of the organization so buyers will choose them in marketplace

relationship management "extend relationship as long as possible, tell friends"

Evaluative criteria for alternative evaluation formula

represent objective attributes of brand (physical capabilities) + subjective attributes (prestige)

Good example of marketing integrated with a social responsibility program: Ronald McDonald Houses serve families of children in hospitals. These houses are typically located near hospitals, and accommodate families who would otherwise have to endure hardship to remain near their hospitalized children. In 1997 Nike was the subject of the infamous sweatshop scandal, in which the company was accused (correctly) of not paying living wages to hundreds of thousands of workers manufacturing their premium shoe products abroad. As a result, Nike committed to: All Nike shoe factories meeting OSHA standards; no child labor; NGOs included in monitoring factory conditions; expand worker education program; expand micro-enterprise program in Vietnam, Indonesia, Pakistan, and Thailand (impacting 530,000 workers); funding academic research on responsible business practices Apple has many component parts of its machinery contract-manufactured in China. Its Shenzhen Foxconn factory suffered a rash of suicides and attempted suicides in 2010, attributed to the awful, slave-labor-type working conditions there. Have conditions improved?

ruet

consumer bill of rights list 4 things

safety information choice being heard

is taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization's marketing plans and the external forces and trends affecting it.

situation analysis

Binge-watching is becoming a common way for consumers to view television programming. • Video bloggers (vloggers) are growing in popularity and influence. • Consumers are placing a growing emphasis on personalized consideration lists (friend recommendations).

social

Let's take a look at the environmental forces that influence Facebook:

social economic tech competitive legal and regulatory forces

a systematic assessment of an organization's objectives, strategies, and performance, in terms of social responsibility.

social audit

are changing as people look for new ways to communicate, obtain information, and offer opinions. Simple online interactions that began on desktops have migrated to mobile devices and now include communication with photos, group and video chats, and instant messaging.

social changes

- almost everywhere in the world - media preferences differ: tabloids (lower & working); fashion, romance, celebrity (middle); literary, travel, news (upper)

social class

relatively permanent, homogeneous divisions in society, into which people sharing similar values, interests and behavior, can be grouped A subtler influence on consumer behavior than direct contact with others is the social class to which people belong

social class

relatively permanent, homogeneous divisions of society into which people sharing similar values, interests & behavior can be grouped

social class

social network communication values-based purchase decisions global media

social forces

organizations are part of society, and are accountable to society for their actions

social responsbility

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

social responsibility

how do environmental forces shape an organizations marketing actions thru

social, economic, technological, competitive, and regulatory considerations

managers set a more specific strategic direction for their businesses to exploit value-creating opportunities

strategic business unit level

how an organization allocates its marketing mix resources to reach its target markets

strategic marketing process

how to answer what an organization assesses

strategic marketing process

process of developing & maintaining a strategic fit between organization's goals & capabilities, and its changing market opportunities. Includes defining clear company mission, setting supporting objectives, designing appropriate businesses and products, and coordinating functional strategies.

strategic planning "big picture, match opportunities and develop them"

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

strategy

organization's long-term course of action designed to deliver value to customer while achieving organization's goals

strategy

group of people within a larger culture, differentiated in distinctive ways from that larger culture.

subculture

• Connectivity and mobility have combined to increase the use of mobile and wearable devices and to create connected cars, homes, and airplanes. • Addressable TV (IPTV) will soon allow advertising targeted to individual households based on their characteristics. • Social media such as Facebook and Twitter are adding new features such as a "Buy" button to allow marketers to sell directly to users

tech

advances in software integration, server speed, and data storage are making Facebook increasingly fast and convenient. New enhancements such as photo editing and an app development kit also increase use of Facebook.

tech advances

list of environmental forces

tech, economy, politics, regulations

means having it available when needed

time utility

Many firms also use "crowdsourcing" websites to what?

to solicit and evaluate ideas from customers.

Marketers use environmental scanning to track

trends and opportunities

recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously, if they are to achieve sustainable, long-term growth. Growing interest in green marketing, cause marketing, social audits, and sustainable development reflects this recognition.

triple-bottom line

"Corruption is a problem for all countries. A poor score is likely a sign of widespread bribery, lack of punishment for corruption and public institutions that don't respond to citizens' needs. Countries at the top of the index also need to act. Leading financial centres in the EU and US need to join with fast-growing economies to stop the corrupt from getting away with it. The G20 needs to prove its global leadership role and prevent money laundering and stop secret companies from masking corruption."

true

"Know when to say when" - Anheuser-Busch campaign

true

"Marketing Myopia" by Theodore Levitt: Captains of American railroad companies declared that they were "in the railroad business", rather than "in the transportation business". This narrow (myopic) vision limited their focus, and they failed to recognize their competitors in airlines, barges, ships, pipelines and trucks. Consequently, many railroad companies were unable to sustain their business. Some merged; many went bankrupt. NetFlix "is the world's leading Internet television network with over 86 million members". The company was launched 20 years ago, as a subscription-based DVD-rental-by-mail service. It has evolved into an on-demand Internet streaming media service, operating in the US and over 190 other countries. The company abruptly lost 800,000 subscribers and goodwill in the 3rd quarter of 2011. The troubles with NetFlix started in summer 2011 when prices were raised (e.g. $10/month package jumped up to $16/month), and separate DVD and streaming businesses were set up, which obviously didn't fly. Customers 'voted with their feet', i.e. left in droves. Stock prices fell 25%, then another 52% in the months following. "The last few months...have been difficult for shareholders, employees, and most unfortunately, many members of Netflix," Netflix CEO Reed Hastings wrote in a letter to shareholders. "We've hurt our hard-earned reputation, and stalled our domestic growth." This opened the door to competitors in the streaming business, like Apple, Amazon and Hulu.

true

"Nestlé USA's core values are the principles we want to characterize our culture. People Quality Brands Consumers Customers Performance

true

"Our mission of "Good Food, Good Life" is to provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night."

true

"The "salad bowl" theory...demonstrates a complete separate perspective that the newcomers bring different cultures, where each of these cultures is kept as an essential part to make up the whole. Every distinctive culture or belief is considered to be one of the tastes or ingredients that contributes in forming the whole; therefore its original shape and characteristics are maintained."

true

- Boomers have reached their peak earning & spending years - lucrative markets for new homes; remodeling; travel, entertainment & adventure; eating out; health & fitness; high-priced cars; other luxuries - e.g. spending on anti-aging products & services $30 billion per year Harley Davidson average age customer 51 years old; 2000 - 2012, Ford sold a Harley Davidson trimmed F-150 truck

true

. Culture also serves as a socializing force that dictates what is morally right and just. This means that moral standards are relative to particular societies. These standards often reflect the laws and regulations that affect social and economic behavior, which can create ethical dilemmas.

true

1. Question marks are SBUs with a low share of high-growth markets. They require large injections of cash just to maintain their market share, much less increase it. The name implies management's dilemma for these SBUs: choosing the right ones to invest in and phasing out the rest. 2. Stars are SBUs with a high share of high-growth markets that may need extra cash to finance their own rapid future growth. When their growth slows, they are likely to become cash cows. 3. Cash cows are SBUs that generate large amounts of cash, far more than they can use. They have dominant shares of slow-growth markets and provide cash to cover the organization's overhead and to invest in other SBUs Dogs are SBUs with low shares of slow-growth markets. Although they may generate enough cash to sustain themselves, they may no longer be or may not become real winners for the organization. Dropping SBUs that are dogs may be required if they consume more cash than they generate, except when relationships with other SBUs, competitive considerations, or potential strategic alliances exist 4.Pod (music players). Apple entered the music player market with its iPod device in 2001. The product became a cultural icon, selling more that 50 million units annually until 2010 when the iPhone integrated a music player. Since 2010 sales have been declining dramatically and in October 2014 Apple announced that it was discontinuing the iPod classic. Today Apple still sells three iPod product lines—the nano, the shuffle, and the touch—although declining sales and discontinued products suggest that this SBU is entering the dog category.

true

2017 Corruption Perception Index (above) measures perceived levels of public sector corruption in 180 countries and territories. 68% of countries in the world have a serious corruption problem. Half the G20 countries are included. Poor countries lose $1 trillion a year to corruption. 2017: #1 New Zealand; #2 Denmark; #3 Finland, Norway & Switzerland #16 USA (up from previous year) At the bottom (#180) in 2017: Somalia (again) Next to the bottom: South Sudan, Syria, Afghanistan, Yemen Corruption & conflict go hand in hand. 5/10 most corrupt countries are also among the 10 least peaceful places in the world. Lowest scores characterized by bloody and entrenched conflict.

true

332 million people in the USA 7.5 billion in the world 1.4 billion in china 1.3 billion in India By 2050> India will out grow china population wise Most populous states in the US (2017, latest from Census Bureau as of January, 2019) California (40 million people) Texas (28 million people) Florida (21 million people) NC (10 million people)

true

3M's Scotchgard Fabric Protector - company stopped making the product in 2000 "after tests showed that the chemical compounds used to make the products linger in the environment and in humans for years." ($300 million loss in annual sales). As reported in 2010, 3M company was making Scotchgard again, using updated technology: "under federal EPA guidelines, PFBS isn't toxic and doesn't accumulate the way the old chemical did". Nestlé's Good Start infant formula - promoted as hypoallergenic for infants allergic to cow's milk (2% of population). Side effect convulsive vomiting. Nestlé execs believed if their product helped most infants, that was fine. If they had intended the product to be suitable for all babies, they would have claimed it was allergy-free, rather than hypo- (i.e. less) allergenic.

true

86% US companies have codes of ethics; 25% big companies have ethics officers Topics: political contributions; relations with customers, suppliers, competitors, new recruits; conflicts of interest

true

= Marketing Environment = micro + macro environments = actors & forces outside marketing that affect management's ability to build & maintain successful relationships with target customers

true

A consumer decides to buy a digital camera. The consumer's response to the idea of buying a camera is conditioned by surrounding cues.

true

A formal practice is cause marketing, which occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products. This definition distinguishes cause marketing from a firm's standard charitable contributions, which are outright donations

true

A high number of visual options can prompt consumers to give up trying to choose: Asked to select among 27 types of crackers, participants in an experiment (by Barbara Kahn) were 5 times more likely to pick "none of the above" if the choices were presented visually rather than in words. Text prompts a slower, more systematic mental-processing style, the researchers say.

true

A hundred years ago, Henry Ford famously said, "Any customer can have a car painted any color that he wants so long as it is black". This reflects a distinct lack of market orientation.

true

A person has many NEEDS at any given time. These needs may be biological (or physiological), e.g. arising from hunger, thirst, discomfort, or psychological, e.g. recognition, esteem, etc. As a need becomes intense, it transitions into a MOTIVE, or DRIVE, which spurs a person to seek satisfaction.

true

A population pyramid illustrates the age and sex structure of a country's population and may provide insights about political and social stability, as well as economic development. The population is distributed along the horizontal axis, with males shown on the left and females on the right. The male and female populations are broken down into 5-year age groups represented as horizontal bars along the vertical axis, with the youngest age groups at the bottom and the oldest at the top. The shape of the population pyramid gradually evolves over time based on fertility, mortality, and international migration trends. The age structure of a population affects a nation's key socioeconomic issues. Countries with young populations (high percentage under age 15) need to invest more in schools, while countries with older populations (high percentage ages 65 and over) need to invest more in the health sector. The age structure can also be used to help predict potential political issues. For example, the rapid growth of a young adult population unable to find employment can lead to unrest.

true

Activities in step 2 tell the marketing manager which customers to target and which customer needs the firm's product offerings can satisfy step 3 in the planning phase—involves developing the program's marketing mix (the four Ps) and its budget.

true

Advertising should be impactful and clever without overpowering.

true

African Americans have the second-largest spending power of the three racial/ethnic subcultures in the United States. Consumer research on African American buying patterns has focused on similarities and differences with Caucasians. When socioeconomic status differences between African Americans and Caucasians are removed, there are more similarities than points of difference. Differences in buying patterns are greater within the African American subculture, due to levels of socioeconomic status, than between African Americans and Caucasians of similar status. Even though similarities outweigh differences, there are consumption patterns that do differ between African Americans and Caucasians.38 For example, African Americans spend far more than Caucasians on boys' clothing, rental goods smartphones, and audio equipment. African American women spend three times more on health and beauty products than Caucasian women. Furthermore, the typical African American family is five years younger than the typical Caucasian family. This factor alone accounts for some of the observed differences in preferences for clothing, music, shelter, cars, and many other products, services, and activities. Finally, it must be emphasized that, historically, African Americans have been deprived of employment and educational opportunities in the United States. Both factors have resulted in Why income disparities between African Americans and Caucasians, which influence purchase behavior. Recent research indicates that while African Americans are price conscious, they are strongly motivated by quality and choice. They respond more to products and advertising that appeal to African American cultural images, as well as address their ethnic features and needs regardless of socioeconomic status. African Americans are much more likely to tell their friends about products and services they like than the general public as a whole.

true

Agents keep the products they promote. They also earn points redeemable for books, CDs, and other items by filing detailed reports. Who are the agents? About 65 percent are older than 25 and 70 percent are women. All are gregarious and genuinely like the product or service, otherwise they wouldn't participate in the buzz campaign. Estée Lauder, Monster.com, Anheuser-Busch, Penguin Books, Lee, Michelin, Wrigley, Arby's, Nestlé, Hershey Foods, Procter & Gamble, Danone, and Volkswagen have used BzzAgent. But BzzAgent's buzz isn't cheap, and not everything is buzz worthy. Deploying 1,000 agents on a 12-week campaign can cost a company $95,000, exclusive of product samples. BzzAgent researches a product or service before committing to a campaign and rejects about 80 percent of the companies that seek its service. It also refuses campaigns for politicians, religious groups, and certain products, such as firearms.

true

American Express Company pioneered cause marketing when it sponsored the renovation of the Statue of Liberty. This effort raised $1.7 million for the renovation, increased card usage among cardholders, and attracted new cardholders. In 2001, U.S. companies raised more than $5 billion for causes they champion. It is estimated that cause marketing raised over $12 billion in 2013. Cause marketing benefits companies as well as causes. Research indicates that 85 percent of U.S. consumers say they have a more favorable opinion of companies that support causes they care about. Also, 80 percent of consumers say they will switch to a brand or retailer that supports a good cause if the price and quality of brands or retailers are equal. In short, cause marketing may be a valued point of difference for brands and companies, all other things being equal.

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Anheuser-Busch also implements programs to help prevent underage drinking by providing retailers with tools to properly check IDs and help prevent sales to minors. The company also helps parents start and continue conversations about alcohol with their children; supports law enforcement in upholding the law; and, through a variety of community speakers, assists schools in building self-esteem among teens.

true

Anheuser-Busch is committed to brewing the highest quality beers, improving its environmental performance, and making a positive impact in communities across the country. The company focuses environmental efforts both inside and outside its breweries on the key issues of water, energy, and recycling.

true

As shown in Figure 2-2, the organizational foundation sets the "why" of organizations and the organizational direction sets the "what." To convert these into actual results, the organizational strategies are concerned with the "how."

true

Asian Americans are the fastest-growing racial/ethnic subculture in the United States. About 70 percent of Asian Americans are immigrants. Most are under the age of 30.

true

At the functional level, the organization's strategic direction becomes its most specific and focused.

true

Baby Boomers one of most powerful forces shaping marketing environment: only 28% of population, but they earn > half of all personal income Boomers were a "demographic bulge which remodeled society as it passed through it" (Wikipedia) marketers have paid lot of attention to upper echelons of this group

true

Banks are not much different in the US: 37 banks became 4 banks (JPMorgan Chase, Bank of America, Wells Fargo and CitiGroup) in 20 years Media: 90% controlled by 6 companies (was 50 in 1983)

true

Both individuals and organizations buy and use products that are marketed

true

Bribery as a means to win and retain business varies widely by country. Transparency International periodically polls employees of multinational firms and institutions and political analysts and ranks countries on the basis of their perceived level of bribery to win business.

true

Buyer's 'black box: Buyer characteristics Buyer decision process

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Buyers & producers (farmers) work together, developing relationships of trust & mutual support. Both parties agree to follow Fair Trade rules. Buyer agrees to pay Fair Price, & guarantees minimum stable price for food products. Price must provide a living wage. Buyers must also help long-term development of producers. Producers agree to provide good working conditions, safety procedures & health standards.

true

CEO oversees the organization's daily operations to spearheading strategy planning efforts that may determine its very survival.

true

Cause marketing programs incorporate all three concepts of social responsibility by addressing public concerns and satisfying customer needs. They can also enhance corporate sales and profits as described in the Marketing Matters box

true

Changes in the world's demographic environment have major implications for business.

true

Choosing which marketing metrics to display is critical for a busy manager, who can be overwhelmed with irrelevant data

true

Companies that evidence sustainable marketing have been rewarded for their efforts. Research has shown that these companies (1) benefit from favorable word of mouth among consumers and (2) typically outperform less responsible companies in terms of financial performance

true

Companies use social class as a basis for identifying and reaching particularly good prospects for their products and services. For instance, JCPenney has historically appealed to the middle classes. New Yorker magazine reaches the upper classes. In general, people in the upper classes are targeted by companies for items such as financial investments, expensive cars, and formal evening wear. The middle classes represent a target market for home improvement centers, automobile parts stores, and personal hygiene products. Firms also recognize differences in media preferences among classes: lower and working classes prefer tabloid magazines; middle classes read fashion, romance, and celebrity (People) magazines; and upper classes tend to subscribe to literary, travel, and news magazines.

true

Consumer concern that subliminal advertising will affect them without their knowing it. Australia, Britain, Canada, California - banned subliminal advertising

true

Consumer purchases are often influenced by others.

true

Consumers alleviate cognitive dissonance by seeking affirmation ask friends to applaud choice read ads of rejected brands to confirm why they were not chosen companies follow up with phone calls or ads to reinforce or confirm buyer's good decision, e.g. "Aren't you really glad you bought a Buick?"

true

Core competencies competitive advantage? Unique Selling Point (USP)? Customer identification managing expectations, e.g. quality Competitors in different shapes and forms

true

Corporate attention to social audits will increase as companies seek to achieve sustainable development and improve the quality of life in a global economy.

true

Culture is most basic cause of a person's wants & behavior. Each culture contains subcultures = groups of people with shared value systems, based on common life experiences & situations

true

Culture provides the lens through which each consumer views his/her environment. Culture affects every purchase decision a consumer makes.

true

Culture serves as a "socializing force that dictates what is morally right and just".

true

Different cultures reflect different sets of morals and values. These are affected by local laws and regulations.

true

Easier to process horizontal versus vertical options. Twice as many different choices are made when display is horizontal. Perceived variety of visual is greater; too confusing Read more systematically

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Effective marketing will inform you of availability of suitable foods and relevant locations.

true

Effective marketing, in the form of creating an awareness of good products at fair prices and convenient locations, can clearly shape a person's wants

true

Environmental scanning also involves explaining trends

true

Environmental scanning requires the identification and interpretation of trends. This information is then compared to the organization's status quo, and management can make informed decisions about how and what to change.

true

Ethics serve as guidelines on how to act for the best when faced with moral dilemmas

true

Every organization markets

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Examples are what consumers themselves want and need, changing technology, the state of the economy in terms of whether it is expanding or contracting, actions that competitors take, and government restrictions. Covered in detail in Chapter 3, these five forces may serve as accelerators or brakes on marketing, sometimes expanding an organization's marketing opportunities and at other times restricting them

true

Facebook's challenge now is to keep growing by continuing to respond to changes in the marketing environment.

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Family Life Cycle = stages family passes through over time Young & single adults Married adults Child bearing & child rearing Launching adult children Empty nesters, retirement, aging At each stage, families have different needs

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Family buying patterns consider roles of husband, wife, children. 70% of US women work outside the home, and men are much more willing (and able) to do more of family's purchasing, role of woman/wife making majority of purchase decisions is changing. 40% of US drivers are women, but women influence > 80% of car-buying decisions. Children as young as 6 influence family car decisions. In the US, the wife traditionally made majority of purchase decisions about food, household products, clothing; now 31% of men are primary grocery shoppers for their households. Women are often the grocery decision-makers, although men may make the actual purchases. Family members assume different roles for different categories of products, e.g. 89% decisions about men's clothing purchases are influenced or made directly by wives. This information is useful to marketers.

true

Family is most important buying organization in society

true

Finally, individuals such as political candidates often use marketing to gain voter attention and preference.

true

For each SBU, it must decide whether to build, hold, harvest, or divest."

true

For example, 89 percent of wives either influence or make outright purchases of men's clothing. Even though women are often the grocery decision makers, they are not necessarily the purchasers. Today, 31 percent of men are the primary grocery shoppers in their households. Increasingly, preteens and teenagers are the information gatherers, influencers, decision makers, and purchasers of products and services for the family, given the prevalence of working parents and single-parent households. The market for products bought by or for preteens and teenagers surpasses $208 billion annually.

true

For example, Zuckerberg wants Facebook to become more intuitive, and to help users answer questions and solve problems. Another change may be related to Facebook's requirement that users login with their own names. In some parts of the world where Facebook hopes to expand, anonymity encourages users to speak freely. In addition, Facebook is currently testing large drones that are powered by solar panels to hover above remote communities and transmit Internet signals. Facebook also purchased virtual reality headset company Oculus VR for $2 billion in anticipation of consumer interest in 3-D communication. Finally, Facebook created a new division of the company called Creative Labs, which is charged with trying to predict the future and developing Facebook's future products!1

true

Giving and receiving bribes & kickbacks is illegal in the US and for all US citizens doing business anywhere in the world, also for foreign organizations quoted on a US stock exchange, even if the bribe occurred overseas - dressed up as gifts, consultant fees, various 'favors' - very much dependant on country's culture - Foreign Corrupt Practices Act (1977)

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Hispanics represent the largest racial/ethnic subculture in the United States in terms of population and spending power. About 36 percent of Hispanics in the United States are immigrants, and the majority are under the age of 29. One-half of Hispanics are younger than 18. Research on Hispanic buying practices has uncovered several consistent patterns:37 1. Hispanics are quality and brand conscious. They are willing to pay a premium price for premium quality and are often brand loyal. 2. Hispanics prefer buying American-made products, especially those offered by firms that cater to Hispanic needs. 3. Hispanic buying preferences are strongly influenced by family and peers. 4. Hispanics consider advertising a credible product information source, and U.S. firms spend about $10 billion annually on advertising to Hispanics. 5. Convenience is not an important product attribute to Hispanic homemakers with respect to food preparation or consumption, nor is low caffeine in coffee and soft drinks, low fat in dairy products, or low cholesterol in packaged foods.

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IRI's Targeting solutions will help you understand who is most likely to buy your products, so that you can minimize advertising waste and invest more in high-gain targets."

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In 2004 Mark Zuckerberg started Facebook in his Harvard dorm room. His vision was not just to be a company, but to connect everyone in the world. Today, with 1.4 billion active users, or one-fifth of the world's population, Facebook is well on its way to accomplishing that vision! Facebook's incredible success is the result of many things, including its ability to observe and adapt to a rapidly changing marketing environment.

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In 2004, the brewer began a new chapter in its awareness and education efforts with the launch of its "Responsibility Matters" campaign. This effort emphasized and implemented effective education and awareness programs that promoted responsibility and responsible behaviors. Anheuser-Busch believes these efforts have helped contribute—at least in part—to declines in drunk-driving fatalities, underage drinking, and other forms of alcohol misuse since 1982.

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In 2013, Budweiser launched its first-ever responsible drinking blimp. The airship, which carried the "Designate a Driver" message, embarked on a 17-week tour across much of the country. The blimp's flight plan coincided with major festivals, outdoor celebrations, and sporting events in tour cities. Adults could also log on to www.budblimp.com to pledge to drink responsibly and always designate a driver and then share their pledge through Facebook to encourage friends to do the same.

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In addition, democratic working processes must be available for groups receiving a Fair Trade premium. The use of this premium money is decided upon by the democratically-elected workers committee. Producers also agree to use environmentally sound production methods. Both the buyer and the producer group agree to promote human rights, especially those of women, children and people with disabilities. As buyers and producers meet milestones, they are expected to continuously improve upon these standards. Interesting observation: (www.mtholyoke.edu) "Fair Trade, through providing increased assets to small farmers, has the capacity to change the class structure in societies such as Peru, Brazil, and Indonesia, which are marred by extreme inequality in land and asset ownership. The resulting increase in small farmers' political power can usher in a new era of socialist political organization, as the election of Evo Morales in Bolivia has recently shown us." Fair Trade seems like a good idea, but it's curious that the amount of chocolate manufacturers claim is made using Fair Trade chocolate far exceeds the quantity of chocolate that can actually be produced by Fair Trade cocoa beans sold.

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In recent years, many large firms have changed the title of the head of marketing from vice president of marketing to chief marketing officer (CMO). These CMOs have an increasingly important role in top management because of their ability to think strategically. Most bring multi industry backgrounds, cross-functional management expertise, analytical skills, and intuitive marketing insights to their job. These CMOs are increasingly called upon to be their organizations' "visionaries for the future" by staying in touch with consumers' needs and wants.9

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Individuals create personal mission statements too.

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John F. Kennedy: "One person can make a difference, and everyone should try."

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Like ethics, agreement on the nature and scope of social responsibility is often difficult to come by, given the diversity of values present in different societal, business, and corporate cultures.

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Many consumers unwilling to forgo personal convenience to improve the environment

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Marketers are interested in social class because people within a given class tend to exhibit similar and sometimes predictable buying behavior. Social classes show distinct product and brand preferences in areas like clothing, home furnishings, leisure activities, cars.

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Marketing doesn't stop with the discovery of consumer needs. Because the organization obviously can't satisfy all consumer needs, it must concentrate its efforts on certain needs of a specific group of potential consumers

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Marketing seeks first to discover consumer 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—the four Ps.

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Marketing today affects every person and organization.

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Marketing tries to discover consumer needs through research, and then satisfy them with a marketing program

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Maslow's hierarchy is a good basic theory for marketers to understand consumers' motives for action.

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Medtronic, founded in 1949 as a medical equipment repair shop, is now a multinational company, and the world leader in producing heart pacemakers and other medical devices. Earl Bakken, its founder, wrote this mission statement for Medtronic, and it is essentially unchanged today, over half a century later: "To contribute to human welfare by application of biomedical engineering in the research, design, manufacture, and sale of instruments or appliances that alleviate pain, restore health, and extend life. To direct our growth in the areas of biomedical engineering where we display maximum strength and ability; to gather people and facilities that tend to augment these areas; to continuously build on these areas through education and knowledge assimilation; to avoid participation in areas where we cannot make unique and worthy contributions. To strive without reserve for the greatest possible reliability and quality in our products; to be the unsurpassed standard of comparison and to be recognized as a company of dedication, honesty, integrity, and service. To make a fair profit on current operations to meet our obligations, sustain our growth, and reach our goals. To recognize the personal worth of employees by providing an employment framework that allows personal satisfaction in work accomplished, security, advancement opportunity, and means to share in the company's success. To maintain good citizenship as a company." www.medtronic.com "Rising fig." mural (above) is in Medtronic's Minneapolis, MN, headquarters

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More CEOs have marketing backgrounds these days than any other discipline. (Used to be dominated by financially-trained people.) When companies are very large and complex, e.g. multi-market, multi-product, multi-national, the various component businesses commonly are divided into groups (subsets). Each group is a Strategic Business Unit (SBU). SBU = group of businesses that markets related offerings to a particular market.

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Most new products fail: - 94% fail - 33,000 consumable products introduced in US annually Annual cost of new product failures in US estimated at $100 billion. In general, consumer (B2C) products fail more than business (B2B) products. How do companies overcome the fear of failure? Some reward risk-taking and trying innovative ideas. Cultivate a culture of innovation.

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Much of an organization's marketing strategy is having a clear understanding of the industry within which it competes.

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N/A

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Nearly one out of every six beers made by Anheuser-Busch is brewed with renewable fuels, including biogas and landfill gas. The company is one of the world's largest operators of the Bio-Energy Recovery System (BERS), a method of turning the nutrients in wastewater from the brewing process into renewable biogas. Anheuser-Busch clearly acts on what it views as an ethical obligation to its customers and the general public with its alcohol awareness and education programs and community support. At the same time, the company's efforts to protect the natural environment and improve societal well-being reflect its broader social responsibility

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Nestlé is committed to the following Business Principles in all countries, taking into account local legislation, cultural and religious practices: 1. Nutrition, Health and Wellness 2. Quality Assurance and product safety 3. Consumer Communication 4. Human rights in our business activities 5. Leadership and personal responsibility 6. Safety and health at work 7. Supplier and customer relations 8. Agriculture and rural development 9. Environmental sustainability 10. Water

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Often we remain loyal to brands because of the values we associate with those brands. The best brands (i.e. most durable, successful) recognize that staying true to core values in the long term drives brand loyalty. They don't do it because it sounds good; they do it because they really believe.

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Often, consumers themselves don't know what influences their purchases. "Ninety-five percent of the thought, emotion, and learning [that drive our purchases] occur in the unconscious mind - that is, without our awareness." - consumer behavior expert, Brad Weiners, "Getting Inside - Way Inside - Your Customer's Head" Business 2.0, April 2003, pp.54-55

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Olay - Boomers - want anti-aging and restoration products & services Hyatt - Gen.X - replacing boomers as biggest segment of business travelers - they want casual, tech-friendly lodging with 24 hour access to refreshments Motorola - Gen.Y - wireless communication devices are lifelines to friends & family; first to use smart phones for all purposes

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Online shoppers love seeing images of products, but when the number of choices is high, visuals become confusing and presentation of the options in text form helps consumers make better decisions Marketing professionals can intentionally alter customers' perceptions, and exert more control over consumer behavior than we realize or than may want to admit. Marketing subtly—and not so subtly—influences customers' choices.

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Organizations make strategic decisions that reflect the dynamics of the industry to create a compelling and sustainable advantage for their offerings relative to those of competitors to achieve a superior level of performance.

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Organizations use consumer behavior to provide value to consumers, and to influence their choices.

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Organizations will be fundamentally committed to market orientation, which will facilitate relationship management.

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P&G is trying to court the rapidly growing Hispanic market in the US. The buying power of Hispanics is estimated to be $1.7 trillion by 2020. This provides a massive contribution to national growth. http://www.latinpost.com/articles/82555/20150928/hispanic-consumers-will-spend-1-3-trillion-in-2015-prompting-overall-economic-growth.htm P&G delves deeply into NEEDS of ethnic consumers Gillette ran a campaign to persuade Hispanic consumers to trade up from disposable razors to grooming systems. Salsa has replaced ketchup as the top US condiment. Humor is different in different communities/ethnic groups. P&G is using Spanish labeling and products customized toward Hispnaic tastes, such as lavender-scented Downy detergent.

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PHYSIOLOGICAL - food, water, sex, sleep (as in Maslow's original work); restaurants, grocery stores SAFETY - self-preservation, physical & financial well-being; home security systems, insurance companies, retirement planning advisors SOCIAL - dating services, affinity groups PERSONAL - achievement, status, self-respect; preferential levels of service (e.g. AmEx platinum card) SELF-ACTUALIZATION - personal fulfillment; profound moments of love, happiness, understanding, rapture; e.g. "Be all you can be" (US Army recruiting advertisement)

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People in different regions buy differently

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Pepsico has been calculating the carbon footprint of its Walkers Crisps potato chips in the UK since 2007. Walkers cheese & onion crisps (chips) carry the Carbon Reduction Label. PepsiCo also has put the label on 1 kg packages of Quaker Oats, and several other products. Step 1: Develop a map showing the stages of the supply chain, from growing raw materials to making the product to getting it on the shelf and finally disposing of the packaging. Step 2: Evaluate the energy consumed at each stage, and convert it into the amount of emissions associated with each stage, finally adding up all these elements to determine the carbon footprint of each unit sold. In the case of Walkers Crisps, PepsiCo revealed the following amounts of emissions: 53% raw materials 34% manufacturing 10% distribution 3% disposal of used packaging Martyn Seal, Sustainability Director of PepsiCo Europe, said "the most notable finding was that the majority of the emissions happen outside the scope of Pepsi's operations, meaning that it must work with suppliers or raw materials and distribution partners to most effectively reduce the product's carbon footprint." In doing so, PepsiCo was able to reduce the carbon footprint of Walkers Crisps 7% from 2007 to 2009, saving about 4,800 tons of emissions. The company had originally hoped to cut the footprint by 3%. "Our experience has proven that introducing the Carbon Reduction Label, and making a public commitment to reduce carbon emissions, is a powerful means of galvanising action throughout the business." In the UK, about 52% of those polled said they were more likely to buy a product carrying the Carbon Reduction Label. October 5, 2009 PepsiCo Reveals Method for Calculating Carbon Footprint of Products www.environmentalleader.com Carbon footprint logo: A black footprint with a white CO² on the ball of the foot is a badge that may only be worn by those United Kingdom companies which take approved steps to reduce their carbon emissions. Clearly, PepsiCo is committed to global environmental protection. The company is also in the news for reasons of saving water in China. http://www.greenlaunches.com/other-stuff/pepsicos-first-green-plant-in-china-will-help-to-save-water-and-energy.php

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Primary focus on brick and mortar stores.

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Profit is company's reward for undertaking risk of doing business, i.e. risk of marketing its goods, services, ideas to customers

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Profit responsibility holds that companies have a simple duty: to maximize profits for their owners or stockholders. This view is expressed by Nobel Laureate Milton Friedman, who said, "There is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud."

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Public perception that ethics in US businesses are lax

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Related research shows that consumers (1) may be unwilling to sacrifice convenience and pay higher prices to protect the environment and (2) lack the knowledge to make informed decisions dealing with the purchase, use, and disposition of products.

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Research indicates that wives tend to have more say when purchasing groceries, children's toys, clothing, and medicines. Husbands tend to be more influential in home and car maintenance purchases. Joint decision making is common for cars, vacations, houses, home appliances and electronics, family finances, and medical care. As a rule, joint decision making increases with the education of the spouses.

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SMART is a mnemonic used for goal-setting.

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Sensitivity to the unique needs of Hispanics by firms has paid huge dividends. For example, Metropolitan Life Insurance is the largest insurer of Hispanics. Goya Foods dominates the market for ethnic food products sold to Hispanics. Mazola Corn Oil captures two-thirds of the Hispanic market for this product category. Time, Inc. has more than 750,000 subscribers to its People en Español.

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Several sophisticated, specialized organizations offer analytical services to better understand what drives the purchase decision. IRI is one of the best: "IRI brings together the richest and broadest purchase, consumer, media, social and causal data sets in the world. With this data set, we develop end-to-end customized solutions to help clients understand the changing shopper landscape and find new pockets of growth." Excellent big data analytics. "The future of CPG is about bringing a one-to-one, shopper-centric marketing strategy to drive growth. Our Consumer and Shopper Intelligence solutions help you understand, plan, target, activate, measure and optimize your consumers and shoppers with unparalleled precision through:

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Shopper insight ≠ consumer insight

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Shopper marketing is used most in CPG companies, but increasingly in all other consumer categories.

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Since 1982, Anheuser-Busch has spent: > $750 million to convince people not to abuse its products millions of dollars more to decrease litter and solid waste In 1982, Anheuser-Busch began its "Know When to Say When" campaign to aggressively fight alcohol abuse and underage drinking. In 1989, Anheuser-Busch established a Consumer Awareness and Education Department to develop and implement programs and advertising to promote responsible drinking. It's now called the Corporate Social Responsibility (CSR) Department. Its Family Talk About Drinking Guidebook has been distributed to 7 million parents and educators. In 2004, Anheuser-Busch launched its "Responsibility Matters" campaign. This effort promotes responsible behaviors such as: parents talking with their children about underage drinking adults being designated drivers retailers checking IDs 2. Anheuser-Busch believes these efforts are partly responsible for the sizable decline in drunk-driving accidents, underage drinking, and other forms of alcohol abuse. Anheuser-Busch is also an advocate and sponsor of efforts to preserve the natural environment. The Anheuser-Busch Recycling Corporation (ABRC) is the world's largest recycler of aluminum cans: > 27 billion cans annually This effort to protect the environment reflects its broader social responsibility 2012 interview with Carol Clark, then-global VP, beer & better world, in Forbes: Beer, Community, and Aliens: Social Responsibility at Anheuser-Busch InBev by Aman Singh, May 15, 2012 "AB InBev today has over 116,000 employees operating globally. We live on this planet and share the same concerns as our friends and neighbors. Many of us are parents and understand how important it is to talk with our children to help prevent underage drinking. Similarly, we don't want to be on the road with drunk drivers, and we're committed to supporting prevention efforts such as encouraging the use of designated drivers. We're committed to addressing these issues not only from a business perspective, but also from a personal perspective."

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Small businesses also offer marketing careers. Small businesses are the source of the majority of new U.S. jobs. So you might become your own boss by being an entrepreneur and starting yourown business.

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Social responsibility means organizations are part of society, and are accountable to society for their actions.

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Societal culture & norms affect ethical & legal relationships.

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Societal values and attitudes also affect ethical and legal relationships among individuals, groups, and business institutions and organizations. Consider the copying of another's copyright, trademark, or patent. These are viewed as intellectual property. Unauthorized use, reproduction, or distribution of intellectual property is illegal in the United States and most countries and can result in fines and prison terms for perpetrators. The owners of intellectual property also lose.

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Specific software is used to customize dashboards for different companies. Dashboards are generally set up to present relevant dynamic information, where data is plotted over time to show trends. This is ideal for visual learners! Some people - in fact, two thirds of the population - find it easier to respond to visual cues, rather than reams of prose.

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Starbucks Corporation: Serving More Than Coffee Most students know Starbucks for its friendly neighborhood atmosphere and great coffee. However, few know about the company's deep commitment to ethics and social responsibility. This commitment is expressed by Starbucks founder, Howard Schultz, who notes, "From the beginning, Starbucks has built a company that balances profitability with a social conscience." Starbucks' emphasis on social responsibility isn't separate from the company's marketing efforts. Instead, they are an integral part of these efforts, which have made Starbucks one of the most successful and admired companies and respected brand in the world. Starbucks' Green Team is a select group of store managers who are focused on addressing energy use, water recycling, and waste reduction opportunities at the store level. They have made reduction suggestions that have resulted in economic and environmental savings, for example, by reducing the thickness of their garbage bags and looking at the use of air conditioning, lighting, and water.

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Subliminal advertising means 'below the threshold for conscious perception'. These messages are present for too little time for the brain to process them properly. Substantial research has shown that subliminal advertising does not produce lasting or strong changes in behavior.

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Target market can be a huge group or a very small, select group.

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The Life is Good brand is about more than spreading optimism -- although, with uplifting T-shirt slogans like "Seas The Day" and "Forecast: Mostly Sunny," it's hard not to crack a smile. There are a ton of T-shirt companies in the world, but Life is Good's mission sets itself apart with a mission statement that goes beyond fun clothing: to spread the power of optimism. This mission is perhaps a little unexpected if you're not familiar with the company's public charity

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The Maslow hierarchy of needs is based on the idea that motivation comes from a need. If a need is met, it's no longer a motivator, so a higher-level need becomes the motivator. Higher-level needs demand support of lower-level needs.

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The U.S. government is sharpening its whistleblower protection program, hiring and training more OSHA agents to cultivate employee complaints against their companies. The Occupational Safety and Health Administration (OSHA) wants to increase the number of "whistleblower managers," who work with disgruntled employees to dig up dirt on companies for alleged violations of workplace laws." Todd Leeuwenburgh, Sept.23, 2011

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The board of directors oversees the three levels of strategy in organizations: corporate, strategicbusiness unit, and functional.

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The demographic environment is especially interesting to marketers because it involves people, and people make up markets.

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The diversity of the Asian subculture is so great that generalizations about buying patterns of this group are difficult to make.39 Consumer research on Asian Americans suggests that individuals and families can be divided into two groups. Assimilated Asian Americans are conversant in English, highly educated, hold professional and managerial positions, and exhibit buying patterns very much like the typical American consumer. Non Assimilated Asian Americans are recent immigrants who still cling to their native languages and customs. The diversity of Asian Americans evident in language, customs, and tastes requires marketers to be sensitive to different Asian nationalities. For example, Anheuser Busch's agricultural products division sells eight varieties of California-grown rice, each with a different Asian label to cover a range of nationalities and tastes. The company's advertising also addresses the preferences of Chinese, Japanese, and Koreans for different kinds of rice bowls. McDonald's actively markets to Asian Americans. According to a company executive, "We recognize diversity in this market. We try to make our messages in the language they prefer to see them." Studies show that the Asian American subculture as a whole is characterized by hard work, strong family ties, appreciation for education, and median family incomes exceeding those of any other ethnic group. This subculture is also the most entrepreneurial in the United States, as evidenced by the number of Asian-owned businesses. These qualities led Metropolitan Life Insurance to identify Asian Americans as a target for insurance following the company's success in marketing to Hispanics.

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The four Ps elements of the marketing mix must be blended to produce a cohesive marketing program.

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The idea of a marketing dashboard really comes from the display of information

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The importance of discovering and satisfying consumer needs in order to develop and offer successful products is so critical to understanding marketing that we look at each of these two steps in detail next.

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The marketing department works closely with a network of other departments and employees to help providethe customer-satisfying products required for the organization to survive and prosper.

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The organization must strike a balance among the sometimes differing interests of these groups.

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The social forces of the environment include the demographic characteristics of the population and its culture. Changes in these forces can have a dramatic impact on marketing strategy

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The three largest racial/ethnic subcultures in the United States are Hispanics, African Americans, and Asian Americans. Collectively, they are expected to account for more than one in four U.S. consumers and to spend almost $4 trillion for goods and services in 2019, which will represent almost one-fifth percent of the United States' total buying power.36

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These environmental trends will be identified by an environmental scan.

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To some degree, persons within social classes exhibit common values, attitudes, beliefs, lifestyles, and buying behaviors. Compared with the middle classes, people in the lower classes have a more short-term time orientation, think in concrete rather than abstract terms, and see fewer personal opportunities. Members of the upper classes focus on achievements and the future and think in abstract or symbolic terms.

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Today there is much more pressure on brands from many quarters - retailers want more revenue; store brands these days are higher quality which spurs the need for brand differentiation; economic constraints make consumers more willing to substitute brands and trade down. Within CPG, the activity is most pronounced in high spend categories like soft drinks, refrigerated, laundry, household cleaners, cereals, and convenience foods with high margins.

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Today, 1 of 3 Americans is a member of a blended family Children in an average blended family take ±7 years to blend fully. 40% of marriages are remarriages in the US (report by Pew Research Center - Washington Post; Frederick Kunkle; Nov.14, 2014)

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Too many pictures are overwhelming. Reading words is more systematic, helping the brain process choice more efficiently

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Transparency International produces annual indices for 180 countries and territories in the world, including the Bribe Payers Index and the Corruption Perceptions Index. "First launched in 1995, it has been widely credited with putting the issue of corruption on the international policy agenda."

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US population is becoming better educated US workforce becoming more white collar Diversity by ethnicity, race, & beyond

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Under the classic BCG portfolio approach, the company invests funds from mature, successful products and businesses (cash cows) to support promising products and businesses in faster-growing markets (starts and question marks), hoping to turn them into future cash cows.

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Walkers chips ( ) packaging carries a Carbon Reduction Label. This shows how much energy was used to grow the raw materials, make the product, transport it to the retailer, and dispose of the used packaging.

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Wants become DEMANDS when wants are backed by buying power.

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Water is a key ingredient in beer, and Anheuser-Busch strives to protect this natural resource. In 2013, the company reported that its breweries had reduced water use by 40 percent over the prior five years and had a 99.6 percent recycling rate. In fact, 130 of its operations worldwide are zero-waste. Anheuser-Busch has been a leading recycler of aluminum cans for more than 30 years, recycling nearly 15 billion cans annually. Other items, such as grain, beechwood chips, plastic, cardboard, glass, and metals, also are being reduced, reused, and recycled by the company. In fact, from 2009 to 2012, Anheuser-Busch reduced its packaging materials by nearly 73,000 tons.

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What does the American household look like? In 1960, 75% of households consisted of married couples. Today this is only 48% of the population.

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What kind of learner are you? Visual / Auditory / Kinesthetic (also called Tactile) Most people are a mixture, but have one dominant mode.

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What the shopper marketing "revolution" is really about is taking a more integrated and strategic approach to in-store experiences as a driver of both sales and brand equity; that every program should strongly deliver on sales objectives while driving differentiation and brand appeal.

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When developing marketing programs for new or improved offerings, an organization's senior management may form cross-functional teams

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When does Gen. Y end and Gen. Z begin? 1996 or 2000? Prefer texting to holding a live conversation. # of teens who use text messaging to communicate has increased from 38% to 54% in just 18 months. They crave constant and immediate feedback. Don't leave voicemails or wait for email replies; want feedback NOW, and they have the tools to get it. They see themselves as the solution to societal problems they've witnessed, e.g. global warming, terror alerts, economic crisis, financial instability. They are more likely to pursue careers they think will help society. Social networking can alert them to a particular need, and they are quick to jump in to help. Learning trend - pursue speed rather than accuracy. Gen. Z more likely from non-traditional households; their parents (Gen. X) are more likely to be divorced and to work outside the home. Gen. X's parenting style is driven by absenteeism - overindulgence. Gen. X parents want above all else to raise their children to have high self-esteem, even if this means never correcting them or challenging them to try for things beyond easy reach. So Gen. Z's experience independence from powerful mobile technology and sense of affirmation from their parents. This translates to a sense of entitlement which is a double-edged sword. They have the resources and initiative to make positive changes, but they may not have the experience with failure necessary to know what it takes to persevere. How Generation Z Works by Lance Cooper

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Word-of-mouth is recognized as a powerful influence, and many consumer product companies engage professional 'chatters' to promote their products in this manner, e.g. BzzAgent & Big Fat Promotions are companies promote this mode of communication in specific applications. BzzAgent has built a volunteer "network that will turn passionate customers into brand evangelists"- David Baiter, founder BzzAgent About 10% of US adults are considered to be opinion leaders, e.g. celebrities

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Zuckerberg's rapid responses to changes in the environment and his willingness to try new things has resulted in the world's largest social network—one that is quickly connecting the world.

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alleviate cognitive dissoance via affirmation

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beliefs harden into values

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benefits flow two ways: value must be recognized and received

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cognitive dissonance is not buyers remorse

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consumer behavior Actions include mental & social processes that come before & after these actions.

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desire to buy something isn't enough. People must also have the ability to buy.

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discover consumer needs then concepts for products then satisfy consumer needs then goods, services, ideas then The market then information about needs then back to beginning

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environmental forces can't be controlled

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goals are general objectives are specific and must be quantified (needs metrics)

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legal and ethical issues are central to marketing.

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marketing creates utlity

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marketing dicates choice 50% of purchases are made in the store

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most human behavior is learned

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mouth experience. Marketers recognize the power of word of mouth. The challenge has been to harness that power. BzzAgent Inc. does just that. Its worldwide volunteer army of one million natural-born talkers channel their chatter toward products and services they deem authentically worth talking about, either online or in person. "Our goal is to capture honest word of mouth," says David Balter, Bzz Agent's founder, "and to build a network that turns passionate customers into brand evangelists." Bzz Agent's method is simple. Once a client signs on with BzzAgent, the company searches its "agent" database for those who match the demographic and psychographic profile of the target market for a client's offering. Agents then can sign up for a buzz campaign and receive a sample product and a training manual for buzz-creating strategies. Each time an agent completes an activity, he or she is expected to file an online report describing the nature of the buzz and its effectiveness. BzzAgent coaches respond with encouragement and feedback on additional techniques.

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ng decisions. Figure 4-1 helps visualize the relationship between laws and ethics.3 Whereas ethics deal with personal moral principles and values, laws are society's values and standards that are enforceable in the courts. This distinction can sometimes lead to the rationalization that if a behavior is within reasonable ethical and legal limits, then it is not really illegal or unethical.

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organization's marketing decisions are affected by and, in turn,often have an important impact on society as a whole.

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resources include money and time

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social audits go and visually see workers job conditions unannounced

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step 2 in the planning phase of the strategic marketing process is the foundation for step 3

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study baby boomer/ millenials percentages

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subliminal ad can also mean subtle advertising often very clever

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there's direct and indirect competition

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traits describe personaltiy

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you can buy an idea which results in an action

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when expectations are met, what is built?

trust

are the people—whether 80 years or eight months old—who use the products and services purchased for a household.

ultimate consumers

Marketing Process

understand the marketplace understand customer needs and wants design marketing strategy with focus on customer construct marketing program to deliver superior value build profitable relationships and build customer satisfaction capture value from customers to create profits and customer quality

marketing process:

understand, design, construct, build, capture

point that differentiates a product/service from others in a very compelling way

unique selling point/ proposition/ USP

Who dictates choices?

variety, shape, size, completeness of product, expectations (e.g. Swiss cheese)

is a need that is shaped by a person's knowledge, culture, and personality.

want

the organizational direction sets the

what

Sale or rebate offer; shopping experience; sales pressure; financial considerations

when

Have you recently heard about a new product, movie, website, book, or restaurant from someone you know . . . or a complete stranger? If so, you may have had

word of-mouth experience

influence via communications between target buyers and their circle of acquaintance (friends, family, neighbors, associates)

word-of-mouth

has spurred several markets. (Remember, only 10% households in 2018 have working fathers and stay-at-home mothers.) child care business convenience foods & services career clothing extended shopping hours at malls personal shoppers & call-ahead preferences

working woman pheneomen

In 2012, Anheuser-Busch launched NationofResponsibleDrinkers.com, an online responsible drinking campaign with social media components to engage adult drinkers and raise awareness. The website asks adults to pledge their commitment to drink responsibly and then share it through Facebook to encourage friends to do the same. The pledge is threefold:

∙ Respect the legal drinking age. ∙ Enjoy responsibly and know when to say when. ∙ Be or use a designated driver.

The SWOT analysis is based on an exhaustive study of four areas that form the foundation upon which the firm builds its marketing program:

● Identify trends in the organization's industry. ● Analyze the organization's competitors. ● Assess the organization itself. ● Research the organization's present and prospective customers.