Marketing 351 Exam 1
Study Guide
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.
Marketing Mix (The
Four P’s):
Product, Place (distribution), Promotion,
and Pricing strategies designed to produce mutually satisfying exchanges
with a target market.
Notion of an
Exchange:
The conditions of an exchange are - There must be at least
two parties that communicate and deliver something of value. These parties must
have a desire to deal with each other and have the freedom to accept or reject
the exchange.
The exchange may not take place even if all conditions are
met, and marketing does end up taking place whether or not the exchange takes
place.
Marketing Concept:
Marketing Concept – is the idea that the social and
economic justification for an organization’s existence is the satisfaction of
customer wants and needs while meeting organizational objectives.
-
Focuses on customer wants and needs to
distinguish products from competitors’ offerings.
-
Integrates all the organization’s activities to
satisfy these wants.
-
Achieving the organization’s long-term goals by
satisfying customer wants and needs legally and responsibly.
Corporate Social
Responsibility:
(First) Philanthropic responsibilities – be a good corporate
citizen and contribute resources to the community to improve quality of life.
(Second) Ethical Responsibilities – Do what is right, just
and fair. Avoid harm.
(Third) Legal Responsibilities – Obey the law.
(Fourth) Economic Responsibilities – Be profitable.
-
Socially responsible companies will outperform
their peers.
-
It is in a business’s best interest to find ways
to attack society’s ills.
-
“Green Marketing” development of products
designed to be “green”
Ethics and Morals:
Ethical Behavior – moral principles or values that
generally govern the conduct of an individual or a group.
Morals – the rules that develop as a result of cultural
values and norms.
Foreign Corrupt Practices Act (FCPA) – prohibits U.S.
corporations from making illegal payments to foreign officials. It is often
criticized for putting the U.S. at a disadvantage and has encouraged some
countries to implement their own anti-bribery laws.
External
Environmental Factors Not Within Control of Marketing Managers:
-
Culture – common set of values shared by
citizens that determines what is socially acceptable.
-
Economic & Technological Development
o
Developed Country à
Complex and sophisticated industries
o
Undeveloped Country à Basic Industries
-
Political Structure
o
No private ownership and minimal individual
freedom
o
Little central government and maximum personal
freedom
§
Legal Considerations:
·
Tariff – tax levied on goods entering a country
·
Quota – a limitation on the amount of product
entering a country
·
Boycott – complete severance from another
country’s products
·
Exchange Control – foreign exchange must be sold
to a control agency
·
Market Grouping – common trade alliance
·
Trade Agreement – an agreement to stimulate
international trade.
-
Natural Resources
o
Shortages in resources can create a shifting of
wealth, inflation or recession, and possible stimulus for military
intervention.
-
Demographic Makeup
o
Population density, urban or rural, and age.
Types of Business
Products & Why Businesses Exist:
-
Major equipment
-
Accessory equipment
-
Raw materials
-
Component parts
-
Processed materials
-
Supplies
-
Business services
Consumer Decision
Making Process:
Five step process used by consumers when buying goods or
services.
1)
Need recognition – result of imbalance between
actual and desired states.
2)
Information Search – internal and external
seeking of information
a.
Evoked Set – group of brands, resulting from an
information search, from which a buyer can choose.
3)
Evaluation of alternatives – analysis of
products, uses cutoff criteria and ranks each accordingly.
4)
Purchase
5)
Post purchase behavior
a.
Cognitive Dissonance – inner tension that a
consumer experiences after recognizing an inconsistency between behavior and
values or opinions.
Definitions:
Marketing Concept – is the idea that the social and economic
justification for an organization’s existence is the satisfaction of customer
wants and needs while meeting organizational objectives.
Production Orientation – is a philosophy that focuses on the
internal capabilities of the firm rather than on the desires and needs of the
marketplace.
Relationship Marketing – is a strategy that focuses on
keeping and improving relationships with current customers.
Sales Orientation – the ideas that people will buy more
goods and services if aggressive sales techniques are used and that high sales
result in high profits.
Societal Marketing Orientation – the idea that an
organization exists not only to satisfy customer wants and needs and to meet
organizational objectives by also to preserve or enhance the individuals’ and
society’s long-term best interests.
Teamwork – collaborative efforts of people to accomplish
common objectives.
Customer Relationship Management (CRM) – a companywide
business strategy designed to optimize profitability, revenue, and customer
satisfaction by focusing on highly defined precise customer groups.
Customer Satisfaction – customer’s evaluation of a good or
service in terms of whether it has met their needs and expectations.
Customer Value – the relationship between benefits and the
sacrifice necessary to obtain those benefits.
Empowerment – delegation of authority to solve customers’
problems quickly – usually by the first person the customer notifies regarding
a problem.
Exchange – people giving up something in order to receive
something they would rather have.
Market Orientation – a philosophy that assumes that a sale
does not depend on an aggressive sales force but rather on a customer’s
decision to purchase a product; it is synonymous with the marketing concept.
this is really helpful, thanks for sharing.
ReplyDeleteThis was really helpful thank you Chris
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