Study Guide (Exam 1)

Chapter 1 1) What is marketing? (e.g., marketing mix, exchanges, factors influencing marketing activities, requirements for marketing to occur) Marketing-the activity for creating communicating, delivering, and exchanging offerings that benefit the organization, its stakeholders and society at large. -goods, services, ideas -discover needs and wants of customers satisfy them Exchange- trade of things of value btw buyers and sellers so that each is better off after the trade. For marketing to occur -two or more parties with unsatisfied needs -desire and ability on their part to be satisfied -a way for the parties to communicate --how benefits the customer, learning from the past 4ps of marketing- Product-good, service, idea/Price-what is exchanged for the product/Promotion-communication btw seller and buyer/Place- means of getting a product to the consumer 2) Market, target market Market-made up of potential consumers who desire and have the ability to buy specific offering. Target Market- concentration on certain needs of a specific group of potential consumers 3) Need, want, demand Need- when a person feels deprived of basic necessities such as food, clothing, and shelter Want-a need shaped by a persons knowledge, culture, and personality. 4) environmental factors uncontrollable forces- social, economic, technological, competitive, and regulatory forces 5)the marketing program (e.g., demarketing, marketings first and second task) Customer Value- the unique combination of benefits received y targeted buyers that includes quality, convenience, on time delivery, and both before and after sale service at a specific price. 6) relationship marketing -something to exchange

Relationship Marketing- linking a organization to its individual customers, employees, suppliers, and other partners for their mutual long term benefits 7) evolution of the market orientation (i.e., the four eras) Production Era(1800-1930s)- sell what produced Sales Era(1930- 1970s)- sales promoting- inside/out concept Marketing concept Era(1970s- 1990s)- outside in concept satisfy needs and wants Customer Relation Era(1990s- current)- Market orientation (Collecting, sharing and using information)Customer relationship management (CRM): building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. Marketing Program- plan that integrates marketing mix to provide a good, service, or idea to prospective buyers Marketing concept- the idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organizations goals Marketing orientation- focus its efforts on continuously collecting information about customers needs, sharing this information across departments, and using it to create customer value social responsibility Chapter 2 1) Levels of strategy in organizations -Corporate level strategy- top management directs over all strategy for the entire organization -business unit level strategy-SBU-subsidiary division or unit of an organization the markets a set of related offerings to a clearly defined group of customers. managers set a more specific strategic direction for their businesses to exploit value creating opportunities. -functional Level strategy- groups of specialist actually create value for the organization. The different departments ( IS, Fin, R&D, MKT, Man, HR) 2) Companies position in an industry (refer to your notes) 3) Mission statement, goals/objectives The Mission: the organizations function in society Goals or objectives: convert the mission into targeted levels of performance to be achieved Good objectives are specific, Good objectives are measurable, Good objectives are attainable, Good objectives are relevant, Good objectives are time-based 4) Competencies, competitive advantage, business portfolio Competencies- special capabilities-skills, tech, and resources that distinguish it from other organizations and provide customer value. Competitive advantage- a unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation. Business Portfolio- The range of products owned by a large firm

5) BCG analysis- The Boston Consulting Group- quantifies performance measures and growth targets to analyze its clients strategic business units. To determine the amount of cash , if any, each should receive. 6) Diversification analysis- A portfolio-planning tool for identifying company growth opportunities 7) The strategic marketing process (different phases/steps, important concepts such as market segmentation, marketing strategy, planning gap, and marketing plan) Planning, Implementing, Evaluation Step 1: SWOT- strength, weakness, opportunities, threats Step 2: Market-Product Focus and Goal Setting Step 3: Marketing Program (the who, what, and how aspects of the strategic marketing process) Implementation Phase Obtaining Resources Designing the Marketing Organization Developing Schedules Executing the Marketing Program Evaluation Phase Comparing Results with Plans to identify Deviations Acting on Deviations Market Segmentation- aggregating prospective buyers into groups or segments that have common needs and will respond similarly to marketing action Marketing Strategy- marketing goal is to be achieved usually characterized by a specified target market and a marketing program to reach it. Planning GapMarketing Plan Chapter 3 1) Environmental scanning- the process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends. 2) Social forces (all the topics we discussed in class. Also pay attention to the concepts we didnt talk about in class in this section) - demographic characteristics of the population and its values Social, Economic, Technological, Competitive, Regulatory -Baby boomers (generation born between 1946 and 1964): 56-58% purchases -Generation X: lies in the shadow of the boomers (15%, born between 1965 and 1976) -Generation Y: the large growing kid and teen market (born after 1977) -The term millennials refers to younger members of Generation Y born since 1994. 3) Economic forces (e.g., consumer income) Changes in income, Value marketing, Income distribution - very skewed

4) Technological forces (e.g., electronic business technologies, recycling/precycling) New markets and opportunities, Challenge technical and commercial, E-commerce-Internet, Intranet, Extranet 5) Competitive forces (e.g., forms of competition, entry) Pure Monopoly, Oligopoly, Monopolistic Competition, Pure Competition 6) Regulatory forces -- In this section, only pay attention to the important concepts (e.g., exclusive dealing, corrective advertising). You dont need to remember the names of any particular laws and regulations. -Increasing legislation to protect companies, consumers, and interests of society. -Changing government agency enforcement. Increased emphasis on ethics and socially responsible actions Chapter 4 Culture, business culture, whistleblower Codes of ethics Ethics of exchange Ethics of competition Ethics in the marketing mix (e.g., deceptive advertising, slotting allowances) Personal moral philosophy Concepts of social responsibility Sustainable development Chapter 5 1) Consumer purchase decision process- problem recognition, information search, alternative evaluation, purchase decision, Postpurchases 2) Involvement, motivation and personality (e.g., Maslows Hierarchy of Needs, self-concept) 3) Perception-the process by which an individual selects organizes, and interprets information to create a meaningful picture of the world 4) Perceived risk-the anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may e negative consequences. 5) Learning, attitude, beliefs Learning- refers to those behaviors that result from repeated experience and reasoning. Attitude- learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way. Beliefs- consumer;s subjective perception of how a product or brand performs on different attributs. 6) Sociocultural influences on consumer behavior (personal influence, cultures and subcultures) -Personal influence- views, opinions, or behaviors of others -cultures-set values, ideas and attitudes that are learned and shared among the members of a group. -subcultures- subgroup in main cultures.