Notes Flashcards
Social responsibility
Conerns a firm’s obligation to improve its positive effects on society and reduce its negative effects
_______________ are the moral standards that guide marketing decisions and actions
Marketing ethics
Micro-macro dilema
What is good for some producers and consumers may not be good for society as a whole
What is marketing?
Marketing is much more than selling and advertising
Provides needed direction for production and helps make sure that the right goods and services are produced and find their way to consumers
Why is marketing important to you?
- Important to every consumer
- You pay for the cost of marketing - Marketing will be important to your job
- many opportunities, evey résumé is marketing - Marketing affects innovation and standard of living
- marketing encourages research and innovation
Production vs. Marketing
Marketing: Make sure right goods and services are produced
Production: Making goods, performing services
=> create customer satsifaction
Differences between micro and macro marketing
Micro-Marketing: view as a set of activities performed by an organization
- when people talk about marketing, they are talking about micro
Macro-marketing: A social process that directs an economy’s flow of goods and services from producers to consumers in a way that effectively matches supply and demand and accomplishes the objectives of society
emphasis: how the marketing system works- looking at how marketing affects society and vice versa
- delivers goods and services that consumers want and need
- role: effectively match this heterogeneous supply and demand and at the same time accomplish society’s objectives
Universal functions of marketing
Buying, selling, transporting, storing, standardization and grading, financing, risk taking, and market information
They must be performed in all macro-marketing systems
How these functions are performed may differ among nations but they are needed
How has the marketing function changed over time?
- Simple trade era - a time when families traded or sold their “surplus” output to local distributors
-
Production era - a time when a company focuses on production of a few specific products - perhaps because few of these products are available in the market
- if we can make it, it will sell
- Eastern Europe continue to operate with this because of production shortages -
Sales era - A time when a company emphasizes selling becaused of increased competition
- continued to about 1950 - Marketing department era - a time when all marketing activities are brought under the control of one department to improve short-run policy planning and to try to integrate the firm’s activities
- Marketing company era - a time when in addition to short-run marketing planning, marketing people develop long-range plans and the whole company effort is guided by the marketing concept
What is meant by the marketing concept?
Means that an organization aims all its efforts at satisfying its customers—at a profit
Combines:
- Customer satisfaction
- Total Company effort
- Profit (or another measure of long-term success) as an objective
*Total Company effort
**says we are going to look at customer needs and match our product with that need to make a profit
What is the customer value equation?
Satisfied customer: Benefit - Cost = +
Dissatisfied customer: Benefit - Cost = -
Customer value: the difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits
*when customer value is higher => consumer more satisified
How is customer satisfaction linked to profit?
Sometimes it may cost more to satisfy some needs than any customers are willing to pay
Profit is the bottom-line measure of the firm’s success and ability to survice
The balancing point that helps the firm determine what needs it will try to satisfy with its total effort
Strategic (management) planning
What is marketing strategy planning?
The managerial process of developing and managing a match between an organization’s resources and its market opportunities
Top-management job
Includes planning not only for marketing but also for production, finance, human resources, and other areas
Marketing strategy
Specifies a target market and a related marketing mix
It is a big picture of what a firm will do in some market
two parts are needed: a target market and a marketing mix
What is the relationship between a target market and a marketing mix?
Target market - a fairly homogeneous (similar) group of customers to whom a company wishes to appeal
Marketing mix - the controllable variables the company puts together to satisfy this target group
The customer is surrounded by the controllable variables that we call the marketing mix
*target market in middle of circle and marketing mix on the outside of the circle
What is the difference between mass marketing and a mass marketer?
Mass marketing - typical production-oriented approach
- vaguely aims at “everyone” with the same marketing mix
- everyone is the same => considers everyone to be a potential customer
“shotgun approach”
Mass marketers - are aiming at clearly defined target markets
- their target markets usually are large and spread out
ex. Kraft Foods and Wal-Mart
What are the components of each of the 4 “p’s”
Product - concerned with developing the right “product” for the target market
Place - concerned with all the decisions involved in getting the “right” product to the target market’s place
Promotion - concerned with telling the target market or others in the channel of distribution about the “right” product
- includes personal selling, mass selling, and sales promotion
Price - must consider the kind of competition in the target market and the cost of the whole marketing mix
Which of the 4 p’s is most important?
All 4 P’s are needed in a marketing mix
In fact, they should all be tied together
They all contribute to a whole, decisions about Ps should be made at the same time
Product examples
Physical good
Service
Features
Benefits
Quality level
Accessories
Installation
Instructions
Warranty
Product lines
Packaging
Branding
Place
Objectives
Channel type market exposure
Kinds of intermediaries
Kinds and locations of stores
How to handle transporting and storing
Service levels
Recruiting intermediaries
Managing channels
Promotion
Objectives
Promoiton blend
Sales people: kind, number, selection, training, motivation
Advertising: targets, kinds of ads, media type, copy thrust, prepared by whom
sales promotion
publicity
Price
Objectives
Flexibility
Level over product life cycle
Geographic terms
Discounts
Allowances
Marketing plan
A written statement of a marketing strategy and the time-relatd details for carrying out the strategy
Should spell out:
- What marketing mix will be offered, to whom, and for how long?
- What company resources will be needed at what rate
- What results are expected
Marketing program
Blends all of the firm’s marketing plans into one “big” plan
This program, is the responsibilty of the whole company
Typically, the whole marketing program is an integrated part of the whole-company strategic plan
