Marketing Test 1
componets of a situation analysis
* production focus *strengths, weaknessess, internal, external - production costs -marketing skills- -financial resources -image -technology
unwritten rules governing interactions
* sharing resources * honoring contracts * waiting in line
tweens
- ages 8-14 - population of 29 million strong -attitudes of sophication and information well beyond their years -purchasing power of $21 billion in 2008 -view tv ads as just advertising - emerging as the "richest generatin" and the most influential generation in history.
other key federal laws affecting marketing:
- sherman act -clayton act -federal trade commission act -robinson-patman act -wheeler-lea amendments -lanham act -celler-kefauver antimerger act -hart scott rodino act
explain the importance to marketing managers of current demographic trends
-markets are offering more products that appeal to middle-aged and elderly consumers.
3 basic ways that ethical decision making is approached:
1) examines the consequences of decisions. 2) approach relies on rules and laws to guide decision making. 3) approach is based on a theory of moral devleopment that palces individuals or groups in one of three developmental stages: preconvential morality, conventional morality, or postconvential morality.
What the two facts of marketing?
1) it is a philosophy, an attitude, a perspective, o r management orientation that stresses customer satisfaction. 2) An organization function and a set of processes used to implement this philosophy.
identify several techniques that help make strategic planning effective
1) management must realize that strategic planning is an ongoing process and not a once a year exercise. 2) good strategic planning involves a high level of creativity 3) top management support and cooperation.
decribe the social factors that affect marketing
1) people of all ages have broader range of interests, defying tradtional consumer profiles. 2)changing gender roles are bringing more women into the workforce and increasing the number of men who shop. 3) a greater number of deul career families has created demand for time-saving goods and services.
Why write a marketing plan?
1) plan provides clearly stated activities that help employees and managers understand and work toward common goals. 2) allows you to examin the marketing environment in conjuctino with the inner workings of the business. 3) serves as a reference point for the success of future activities 4) allows the marketing manger to enter the marketplace with an awareness of possibilities and problems.
approximately _% of workage females are in the workforce.
63
_% of businesses in america will never break a million dollars in revenue.
85
identify the sources of a product/service differenation competitive advantage
A product/service differentiation competive advantage exists when a firm provides someting unique that is valuable to buyers beyond just low price.
Who said "marketing is too important to be left only to the marketing department?"
David Packard
in 1930
FDR establisehd social security and set mandatory retirment at 62.
The 4 P's
PRODUCT, PRICE, PROMOTION, PLACEMENT
purchasing power
a comparison of income versus the relative cost of a set standard of goods and services in different geopgrahic areas.
target market
a defined group most likely to buy a firms product * changes as consumers age * external elemtns change consumers desires.
Food and Drug Administration
a federal agency charged with enforcing regulations agasint selling and distributing adulterated misbranded or hazardous food and drug products.
federal trade commission (FTC)
a federal agency empowered to prevent persons or coporation form using unfair methods of compeition in commerce.
consumer product safety comission (CPSC)
a federal agency established to protect the health and safety of consumeres in and around their homes.
code of ethics
a guideline to help marketing managers and other employees make better decisions.
market development
a marketing strategy that entails attracting new customers to existing products
product development
a marketing strategy that entails the creation of new products for present markets
marketing penetration
a marketing strategy that tired to increase market share among existing customers.
inflation a
a measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year.
pyramid of corporate social responsibility
a model that suggests corporate social responsibility is composed of economic, legal, ethical and philanthropic responsibilties and that the firms economic performance suppots the entire structure.
recession
a period of economic activity characterized by negative growth, whcih reduces demand for goods and services.
competive advantage
a set of unique fatures of a company and its products that are preceived by the target market as significant and superior to the compeitition.
mission statement
a statement of the firms busienss based on a careful anlaysis of benefits sought by present and potential customers and an alaysis of existing and ancipated environmental conditions.
diversification
a strategy of increasing sales by introducing new prodcuts into new markets.
strategic business unit
a subgroup of a single business or collection of relted businesses withen the larger organization
marketing audit
a thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization.
portfolio matrix
a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate.
marketing mix
a unqiue blend of product, place, promotion, and pricing strategies designed to produce mutally satisfying exhanges with a target market.
marketing plan
a written document that acts as a guidebook of marketing activies for the marketing manager.
sustainable competitive advantage
an advantage that cannot be copied by the competition
applied research
an attempt to develop new or improved products.
explain why implementation, evaluation, and control of marketing plan are necessary?
before a marketing plan can work ,i tmust be implemented; that is, people must perform the actions in the plan. The plan should also be evaluated to see if it has achieved its objectives. Poor implmenation can be a major factor in a plans failure. Control provides the mechanisms for evaluating marketing results in light of the plans objectives and for correcting actions that do not help the organiation reach those objectives within budget guidelines.
cost competitive advantage
being the low cost competitor in an industry while maintaining satisfactory profit margins.
cost competitve advantage
being the low-cost competitor in an industry while maintaining satisfactory profit margins
corporate and social responsibility
business concern for society welfare
decribe the ethical behavior in business
business ethics may be viewed as a subject of the values of society as a whole. The ethical conduct of business people is shaped by societal elements, including family, education, religion, and social movements. As members of scoiety, businesspeople are morally obligated to consider the ehtical implications of thier decisions.
environmental scanning
collection and interpretation of information about forces, events, and relationships in the external environment taht may affect the future of hte orgnization or the implemenation of the marketing plan.
indentify the sources of niche competitive advantage
come from targeting unique segments wiht specific needs and wants. The goal of all these sources of competitive advantage is to be sustainable.
3 types of competitive advantages:
cost, product service differtiation, and niche strategies.
experience curves
curves that show osts declining at a predictable rate as experience with a product increase.
marketing myopia
defining a business in terms of goods and services rather than in terms of the benefits customer seek.
marketing planning
designing activities relating to marketing objectives and the changing marketing environment.
DINK
duel income- no kid.
pro forma
educated guess
concept of ethical behavior
ethical decision making examine consequences follow rules and laws moral development
FMA
first movers advantage: first one to have something so now you have to market (wont have it for too long).
evaluation
gauging the extent to which the marketing objectives have been achieved during the specified time period.
_ are the fastest grwoing segment of the population followed by _
hispanics, african americans
SWOT (situation) analysis
identify internal strengths and weakness and examine external opportunities. S trengths- things the company does wel W eaknessess- things the company does not do well O pportunitiy- conditions in the external environment that favor strengths T hreats- conditions in the external environment that do not relate to existing strengths or favor areas of current weakness.
cash cow
in the portfolio martrix, a business unit that generates more cash than it needs to maintain its market share.
dog
in the portfolio matrix, a business unit that has low growth potential and a small market share.
star
in the portfolio matrix, a business unit that is a fast growing market leader.
problem child (question mark)
in the portfolio matrix, a business unit that shows rapid growth but poor profit margins.
identify the impact of technology on a firm
monitoring new technology is essential to keeping up with competitors in today smarketing environment. The United States excels in basic research and in recent yeras, has dramatically imporved its track record in applied research. Innovation is increasingly becoming a global process. WIthout innovation, U.S. companies cant compete in global markets.
explain the importance to marketing managers of multiculturalism and growing ethnic markets
multiculturalism occures when all major ethnic groups in an area are roughly equally represented. Grwoing mulitculturalism makes the marketers task more challenging.
marketing objective
objectives should be realistic, measurable, time specific, consistent, and indicate the priorities of the organization. Good marketing objectivse: 1) communicate marketing managemet philosophy 2) provide management direction 3) motivate employees 4) force executives to think clearly 5) allow for better evaluation of results.
generation x
people born between 1965 and 1978 - products of dualcareer households or divorced or seperated parents - been bonbarded by multiple media since their cradle days -companies still tend to ignore them and concentrate on the larger demographic baby boomers and gen y.
generation y
people born between 1979 and 1994 - 60 million strong -children of baby boomers "echo boomers" -range from college graduates to kids in their teenage years -spend nearly $200 billion annually -impatient, family orineted, inquistive, diverse, good time managers, street smart, connected.
baby boomers
people born in 1946 and 1964 - 77 million baby boomers
exchange
people giving up something to receive someting they would rather have
four p's
product, place, promotion, and price, which together make up the marketing mix.
control
provides the mechanisms for evaluating marketing results in light of the plans objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines.
basic research
pure research that aims to conform an existing theory or ot learn more about a concept or phenomenon.
some factors attributing to ethical conduct
religion family social movements education
core american values
self sufficiency upward mobility work ethic comformity
6 most often studied macroenvironmental forces are:
social, demographic, economic, technological, political and legal, and competitive.
identify the sources of cost competitive advantage
sources of cost competitve advantages include epxerience curves, efficient labor, no frills goods and services, government subsidies, product design, reenginering, product, innovations, and new methods of service delivery.
What is the importanance of stategic marketing?
strategic marking planning is the basis for all marketing strategies and decisions. By specifying objectives and defining teh actions required to attain them, a marketing plan provides the basis on which actual and expected performance can be compared.
discuss target market strategies
targeting markets begins with a market opportunity analysis (MOA) which describes and estimates the size and sales potential of market segments that are of interest to the firm. In addition, an assessment of key competitors in these market segments is performed. After the market segments are described, one or more may be targeted by the firm. The three strategies for selecting target markets are appealing to the entire market with one marketing mix, concentrating on one segment, or appealing to multiple market segments using multiple marketing mixes.
identify consumer and marketer reactions to the state of the economy:
the 2007-2009 recession has drastically reduced the spending power of many people. During a time of inflatin, marketers generally attempt to maintain level pricing to avoid losing customer brand loyalty. During times of recession, many marketers maintain or reduce prices to counter the effects of decreased demand; they also concentrate on increasing production efficiency and improving customer service.
marketing strategy
the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets.
What is marketing?
the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners and society at large.
niche competitive advantage
the advantage achieved when a firm seeks to target and effectively serve a small segment of the market. * very expensive product *very small target market
explain the basics of competition
the competitive environment encompasses the number of competitors a firm must face, the relative sie of the competitors, and the degree of interdependence within the industry.
market opportunity analysis (MOA)
the description and estimation of the size and sales potential of market segements that are of interest to the firm and the assessment of key compeitors in these market segments.
green marketing
the development and marketing of products designed to minimize negative effecs on the physical enviornment or to improve the environment.
How to develop an appropriate business mission statement
the firms mission statement establisehs boundaries for all subsequent decisions, obejctives and strategies. A mission statement should focus on the market or markets the organization is attempting to serve rather than on the good or service offered.
sustainability
the idea that socially responsbile companies will outperform their peers by focusing on the worlds social problems and viewing them as opportunities to build profits and help the world at the same time.
strategic planning
the managerial process of creating adn maintaining a fit between the organizations objectives and resources and the evolving market opportunities.
decribe the elemtns of the marketing mix
the marketing mix (or four ps) is a blend of product, place, promotion and pricing strategies designed to produce mutually satisfying exchanges wiht a target market. The starting point of the marketing mix is the product offering- tangible goods, ideas, or services. Place (disribution) strategies are concerned with making products available when and where customers want them. Promotion incldues advertising, public relations, sales promotion, and personal selling. Price is what a buyer must give up to obtain a product and is often the easiest to change of the four marketing mix elements.
ethics
the moral principles or values that generally govern the conduct of an individual or a group.
component lifestyles
the practice of choosing goods and services that meet ones diverse needs and interests rather than conforming to a single , traditional lifestyle.
planning
the process of anticipating future events and determing strategies to achieve organizational objectives in the future.
implementation
the process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan's objectives.
product/service differentiation competitive advantage
the provision of something that is unique and valuable to buyers beyond simply offering a lower price than the competitions.
morals
the rules people devleop as result of cultural values and norms
indentify strategic alternative
the strategic opportunity matrix can be used to hlep management develop strategic alternatives. The four options are market penetration, product development, market development, and diversification.
demography
the study of peoples vital statistics, such as their age, race and ethnicity and location.
Basic outline for a marketing plan
there is no set formula for a marketing plan but there are certain elements that should be included: 1) stating the business mission 2) setting objectives 3) perofrming a situation analysis of internal and external environmental forces 4) selecting target markets, delineating a marketing mix (product, place, promotion, and price), and establishing ways to implement, evaluate and control the plan.
what is the most fundamental component of social responsibilty is:
to earn profit
external marketing environment
unless marketing mangers understand the external environment, the firm cannot intelligently plan for the future. Thus, many organizations assemble a team of specialists to continually collect and evaluate environmental information.
environmental management
when a company implements strategies that attempt to shape the external environment within which it operates.
multiculturalism
when all major ethnic groups in an aera, such as a city, county or census tract are roughly equally represented.
