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Flashcards in Notes Deck (116):
1

Social responsibility

Conerns a firm's obligation to improve its positive effects on society and reduce its negative effects

2

_______________ are the moral standards that guide marketing decisions and actions

Marketing ethics

3

Micro-macro dilema

What is good for some producers and consumers may not be good for society as a whole

 

4

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

5

Why is marketing important to you?

1. Important to every consumer

- You pay for the cost of marketing

2. Marketing will be important to your job

- many opportunities, evey résumé is marketing

3. Marketing affects innovation and standard of living

- marketing encourages research and innovation

 

6

Production vs. Marketing

Marketing: Make sure right goods and services are produced

Production: Making goods, performing services

=> create customer satsifaction

7

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

8

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

9

How has the marketing function changed over time?

1. Simple trade era - a time when families traded or sold their "surplus" output to local distributors

2. 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

3. Sales era - A time when a company emphasizes selling becaused of increased competition

-continued to about 1950

4. 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

5. 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

10

What is meant by the marketing concept?

Means that an organization aims all its efforts at satisfying its customers---at a profit

Combines:

1. Customer satisfaction

2. Total Company effort

3. 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

11

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

12

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

13

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

14

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

15

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

 

16

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

17

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

18

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

19

Product examples

Physical good

Service

Features

Benefits

Quality level

Accessories

Installation

Instructions

Warranty

Product lines

Packaging

Branding

20

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

21

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

22

Price

Objectives

Flexibility

Level over product life cycle

Geographic terms

Discounts

Allowances

23

Marketing plan

A written statement of a marketing strategy and the time-relatd details for carrying out the strategy

Should spell out:

1. What marketing mix will be offered, to whom, and for how long?

2. What company resources will be needed at what rate

3. What results are expected

24

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

25

Firm's marketing program = 

Marketing plan (marketing strategy + time related details and control procedures) + other marketing plans

26

Breakthrough opportunities

Opportunities that help innovators develop hard-to-copy marketing strategies that will be very profitable for a long time

It is hard to provide superior value to target customers if competitors can easily copy your marketing mix

 

27

4 basic types of opportunities

Present prodcuts vs. present markets: market penetration

new products vs. present markets: product development

present products vs. new markets: market development

new products vs. new markets: diversification

28

SWOT analysis

Identifies and lists the firm's strengths and weaknesses and its opportunities and threats

Helps managers focus on a strategy that takes advantage of the firm's strengths and opportunities while avoiding its weaknesses and threats to its success

A useful aid for identifying relevant screening criteria and for zoning in on a feasible strategy

 

29

4 types of market opportunities

1. Market penetration

2. Market development

3. Product development

4. Diversification

30

Market development

Trying to increase sales by selling present products in new markets

*could involve searching for new uses for a product

Firms may also try advertising in different media to reach new target customers

ex. Dunkin Donuts now sells its popular coffee at grocey stores and not just at its own outlets

31

Prodcut development

Means offering new or improved products for present markets

Firms seek new ways to satisfy customers

ex. Campbell's came out with a new line of soups

ex.. ski resports have develpped trails for hiking and biking for the summer

32

Diversification

Means moving into totally different lines of business - perhaps entirely unfamilar products, markets, or even levels in the production-marketing system

ex. Mcdonald's opening hotels in switzerland

 

33

Market penetration

Means trying to increase sales of a firm's present products in its present markets - probably through a more aggressive marketing mix

Try to strengthen its relationship with customers to increase their rate of use or repeat purchases, or try to attract competitors customers or current nonusers

ex. Coleman increased its sale of outdoor equipment by promtoinal displays at outdoor events

34

well defined business and marketing objectives must be:

Specific

Measurable

Attainable

Relevant to the target

Timely

 

35

Direct/internal marketing environment

Company

Competition

Customers

36

Know the market situation: competitive environment

Monopoly

Monopolistic competition

Oligopoly

Pure competition

37

External marketing assessment

Legal

Economic

Technological

Cultural

38

Marketing mix is used to _________________________

address the target market

39

Good market plan:

Specific, measurable, attainable to the target and timely

Strategies (broad)

Tactics (specific)

40

Breakthrough opportunities are difficult without _________________

planning

41

Planning helps define:

competitive advantage

42

Hit or miss marketing

Not planning, just reacting to the market

43

Gross Domestic Product (GDP) = 

Gross National Income (GNI)

+ Income earned by foreginers who own resources in the nation

44

Total income

- taxes

- necessities

Discretionary income

45

Big Three American Subcultures

Hispanic population is now the largest ethnic subculture (12.5%)

African American subculture is at 12.3%

Asian Americans fastest growing racial group 3.6%

46

Characteristics of the Hispanic Market

Looking for spirituality, stronger family ties, more color in lives

Spend more on groceries

shopping is afamily affair

clothing children well as a matter of pride

conveince not importan

47

Key Trends in the U.S. Consumer Market

Graying of America

Generation X - fewer in number

Generation Y - tech savy

48

Gray Market

Traditionally neglected by marketers

People are now living longer/healthier lives

Zoomers = active, intieresed in life, enthusiastic consumers with buying power - fasterst growing group of internet users

49

Strategy for Strategy

Exploit your strengths and opportunities

Mitigate your weaknesses and threats

Go with your strenths

Attack your competitor's weaknesses

50

4 major areas of the external marketing environment:

1. Economic environment

2. Technological environment

3. Political and legal environment

4. Cultural and social environment

51

Mission statement

Sets out the organization's basic purpose for being - should focus on a few key goals rather than embracing everyything

Company objectives - provides bguidance in screening possible opportunities

- guide managers as they search and evaluate opportunities

marketing objectives - should be set within the framework of larger company objectives

52

3 main categories of company resources:

1. Financial strength

2. Producing capability and flexibilty

3. Marketing strengths

53

4 types of classifications of the competitive enviornment:

1. Pure competition - most products head toward pure competition. Customers see the different available products as close substitutes, managers just compete with lower and loweer prices, and profit margins shrink, sometimes they cut prices too quickly

2. Oligopoly - very similar to pure competition

3. Monopolistic competition - A number of different firms offer marketing mixes that at least some customers see as different. Each competitor tries to get control in its own target market but competition exists

ex. clorox bleach uses same chemicals but marketing managers help seperate it by using improved poourg spout

4. Monopoly - firm completely controls a broad product market, are rare in market-directed economies.

 - governments regulate monopolies

54

Competitive barrier

The conditions that may make it difficult, or even impossible, for a firm to compete in a market

Such barriers may limit your plans or, alternatively, block competitors responses to an innovative strategy

 

55

Sherman Act 1890

Monopoly or conspiracy in restraint of trade

- Monopoly or conspiracy to control a product

- Monopoly or conspiracy to control distribution channels

 - monopoly or conspiracy to fix or control prices

56

Clayton Act 1914

Substantially lessens competition

- Forcing sale of some products with others - tying contracts

Exclusive dealing contracts (limiting buyers' sources of supply)

Price discrimination by manufacturers

Anti trust

57

Federal Trade Commission Act 1914

Unfair methods of competition

- Unfair policies

- Deceptive ads or selling practices

- Deceptive pricing

*if you put ads out, they have to review them

58

Robinson-Patman Act 1936

Tends to injure competition

Prohibits "fake" advertising allowances or discrimination in help offered

Prohibits price discrimination on goods of "like grade and quality" without cost justification, and limits quanity discounts

*price discrimination legal if you meet basic criteria

59

Wheeler-Lea Amendment 1938

 

Unfair or deceptive practices

Deceptive packaging or branding

Deceptive ads or selling claims

Deceptive pricing

60

Antimerger Act 1950

Lessens competion

Buying competitors

Buying producers or distributors

61

MAguson-Moss Act

Unreasonable practices

Product warranties

62

Consumer Products Safety Commission

Recall products

63

Food and Drug Administration

Deal with labeling laws

If you make health claims, better justify them or FDA gets involved

*FDA has not improved vitamins or cosmetics

64

Changing social and cultural environment:

Role of women

More people live in urban areas

65

Difference between GDP and GNI

GDP - total market value of all goods and services provided in a country's economy in a year by both residents and nonresidents of that country

GNI - Does not include income earned by foreigners who own resources 

66

Population trends by region

Greatest growth: western states like Nevada, arizona, idaho, and utah, sun belt

Texas, georgia, north carolina and virgina arre also growing rapidly

Senior Citizen group is increasing quickly

67

What are three key criteria to be used when determining which opportunities to pursue?

Growth potential

competitive superiority

Fit with company resources

68

4 components of a product market

What: Product type (type of good and type of service)

To meet what: Customer (user) needs

For whom: Customer types

Where: Geographic area

69

How does a product market different from a generic market?

Generic market - a market with broadly similar needs - and sellers offering various, often diverse, ways of satsifying those needs

Product market - a market with very similar needs and sellers offering various close substitute ways of satisfying those needs

70

Segmenting

Marketing-oriented managers think of segmenting as an aggregating process - clustering people with similar needs into a "market segment"

market segment - a relatively homogeneous group of customers who will respond to a marketing mix in a similar way

71

4 key features of a good segment:

1. Homogeneous (similar) within - the customers in a market segment should be as similar as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions

2. Heterogeneous (different) between - the customers in different segments should be as different as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions

3. Substantial - the segment should be big enough to be profitable

4. Operational - the segmenting dimensions should be useful for identifying customers and deciding on marketing mix variables

72

3 key market oriented strategies with respect to segmentation:

1. single target market approach - segmenting the market and picking one of the homogeneous segments as the firm's target market

2. multiple target market approach - segmenting the market and choosing two or more segments, and then treating each as a seperate target market needing a different marketing mix

3. combined target market approach - combining two or more submarkets into one larger target market as a basis for one strategy

73

Combined tarket market approach

MAy help achieve some economies of scale and require less investment than developing different marketing mixes for different segments

 

Cons: makes it harder to develop marketing mixes that best satisfy potential customers

74

Segmenters pros and cons

Pros: usually fine tune their marketing mixes for each target market - perhaps making basic changes in the product itself - because they want to satisfy each segment very well

Cons: may not be effective for a smaller firm with more limited resources

*they would use single target market approach

 

75

Why is it important to segment?

Hoping to increase sales by getting a much larger share of the business in the markets they target

They can provide superior value and satisfy their customers better

Provides greater profit potential for the firm

 

76

How does a product market differ from a generic market?

Generic market does not include the product type

77

Potential Target Market Dimensions

Behavioral needs, attitudes and how present and how potential good/services fit into customers consumption patterns

Urgency: to get need satisfied and desire and wilingness to seek information, compare, and shop

Geographic location: and other demographic characteristics of potential customers

78

WHy is it important to segment?

Segmenting can help better meet the needs of the target

 

79

How do you know when to stop segmenting

Steop when profits are too low - less sales lower economies

80

Qualifying dimensions

Those relevant to including a customer type in a product market

81

Determining dimensions

Those that actual affect the purchase of a specific product or brand in the product market

Determining can vary over time 

82

Steps of Market Segmentation

1. Naming broad product markets

2. Segmenting these head product markets in order to select target markets and develp marketing mixes

83

Positioning

How customers think about proposed brands

Without positioning it would be hard to differentiate

84

Negative Word of Mouth (WOM) and Power of Rumors


We weight negative WOM more heavily than we do positve comments

-Negative WOM is easy to spread, especially online

-determined detractors

-information/rumor distortion

85

Cutting-Edge WOM Influences


Social Networking

Crowd Power

Guerilla Marketing

Viral Marketing (pyramid scheme)

86

PSSP Hierarchy of Needs


Personal Needs

Social Needs

Safety Needs

Physiological Needs

87

Selective Exposure

 


We notice things via our senses: sight, sound, touch, smell, taste

88

Stimulus generalization:


tendency for stimuli similar to a conditioned stimulus to evoke similar, unconditioined responses

ex. family branding, pdouct line extensions, licensing, look alike packagin

89

There are more purchases to:


There are more purchase to businesses and organizationla customers

90


4 types of business customers


1. Producers of goods and services

2. Intermediaries

3. Government units

4. Non Profit Organizations

91

Driving motivation in the business purchases:


Focus on economic factors - less emotional

Look at total cost of ownership

92


Key roles in the business buying process


Users - people who use the product

Influences - people who write specifications   R&D, and engineers

Buyers - purchasing managers

Deciders - people with approved - top management

Gatekeepers - control flow of info (secretary)

93


POQ

Purchase Order Request


Request for management to approve a buy

extensive, routinized, limited

94

3 types of business buying processes


New task buying - new needs and wants info

Straight rebuy - routine purchase made before

modified rebuy - the in-between

*opportunities with a new rask

95


Benefits of exclusive vendor relationship


Lower costs

Less likely to lose order/get cut

96


Disadvnatage of exclusive vendor relationships


Reduce flexibility

Joint Problems

Shared information

97

Role of E-Commerce in Business to Business


Search engines

Online forums

Competitive bids

Post requirements and invite bids

Case studies

Social networking

98


Firmagraphics of manufactuerers, services,govnt, retailers,and wholesalers?


Manufactuers - not many big ones, clustered in certain areas,

services - smaller and more fragmented

government - very big and a lot of GDP

retailers and wholesalers - buying committee, reorders are straight rebuys, inventory replenishment

99


FCPA

Foregin Corrupt Practice Act

 


1977

Prohibits U.S. firms from paying bribes to foreign officials

100

True or False: Marketing research provides "the answer"

False

101

Advantages/Disadvantages of in house vs. outside Market Research

In house - more control

Outside - costly - they know the info

102

True or False: Marketing Managers do not need to ve involved in the decision and scope of market research

False

103

Five-Step Approach to Marketing Research Process

1. Defining the problem

2. Analyzing the situation

3. Getting problem-specific data

4. Interpreting the data

5. Solving the problem

*most important step is defining the goal/problem

104

Partnership

A good market researcher is a "consulting partner"

Can successfully translate the numbers into actionable results

105

Quantitative research

Research involving the use of structured questions in which response options have been predetermined and a large number of respondents involved

If properly structured, results are projectable to the total population

Open ended, covers more

Not projectable

106

Qualitative research

Research involving collecting, analyzing, and interpreting data by observing what people do and say

Results are not projectable

Structured, numbers, easier to analyze

107

Key to projectability

Random sample

Every respondent has an = chance to particpate in the survey

Therefore, your sample will accurately reflect teh population

108

Ken Concerns in Data Interpretation

Popuation

Validity

Sample

Confidence Intervals

109

Sampling error

Concerns how the sample was drawn and the size of the sample

Non-sampling error is everything else that can affect the results

110

Validity

Are you asking the right questions to measure what you want to measure?

Are you missing a critical question?

Are the questions worded propertly?

Is the question order appropriate?

- sensitive should be last

Are you asking the right people and the right number of people?

 

111

What determines methodology?

The nature of the problem

The time available to conduct the research

The budget available for the research

The risk of wrong information

112

Qualitative techniques

Focus group interview, telephone surveys, personal

113

Quantitative technique

surveys, questionaires

114

Difference between a population and a sample

Population - total group of interest

Sample - part of the population (less costly)

115

Validity

Concerns the extent to which data measure they were intended to measure

116

Confidence Interval

A range around a measurement that conveys how precise the measruement is

Often seen on the news when the results of polls are released