MARK 3000 4TH Edition Final Exam Study Guide She said there will only be major concepts from the previous chapters and there will be no new information from the book 2 3 questions on each concept Test 1 Lecture 1 August 21 Introduction to Marketing What is marketing Marketing is everything that goes into creating capturing communicating and delivering value to customers in order to benefit the company and its stakeholders Basically it s anticipating the needs of your target market and then satisfying them through the marketing mix You re creating an immediate exchange but you want your customer to keep buying your product service Explain the marketing mix aka the 4 P s of marketing Product is creating value by producing various offerings such as developing a restaurant menu designing clothes or coming up with political ideas Place aka supply chain management is delivering value by getting the merchandise to the right consumer at the right time Promotion is communicating value by informing persuading and reminding potential customers about your product service or message Price is capturing value by figuring out how much customers are okay with paying Define corporate orientation What are the 3 orientations and the eras they were used in Corporate orientations are the different philosophies that a company might have The first is the production philosophy 1800s early 1900s which focused on what the company could do best aka the Field of Dreams philosophy If I build it they will come Concerned with product innovation not customer needs The second is the sales philosophy 1920s 1950s which focused on aggressive and super persuasive sales tactics basically selling more of what the company already had Finally the marketing philosophy 1950s now is focused on what the customer wants while satisfying the goals of your company Today this has expanded to value based marketing which focuses on not just meeting customer needs but beating out competitors on value basically making what you can sell instead of selling what you can make Value cocreation customers collaborate with a company to create a product of service like personalized Nikes She really emphasized this point marketing orientation marketing concept making what you can sell Lecture 2 August 26 Marketing Ethics Define ethics and laws Ethics are moral principles values that guide actions Laws are the values of society that the court enforces Under these actions can be ethical and legal selling sweaters you knitted from your own pattern ethical and illegal scalping tickets unethical and legal jacking up food prices after a hurricane or unethical and illegal a pharmaceutical company saying their pill cures cancer when it s just a sugar pill What is the framework for ethical decision making 1 Identify the issue 2 Gather information and identify stakeholders 3 Think up ideas evaluate alternatives 4 Decide on an action What are the kinds of norms Societal Cultural basic set of a society s values Involves 2 kinds of tests publicity transparency test would you be okay if what you did was on the front page of the AJC moral mentor admired observer test would your idol approve General business norms what is standard practice in business customer has right to safety info and to choose and be heard no more caveat emptor buyer beware except in as is situations industry standards American Market Association Code of Ethics do no harm foster trust consumer confidence in the marketing system values of honesty responsibility etc Company norms values rules controls Personal norms family religion values personal morals moral idealism If anything bad happens then the action is unethical utilitarianism balance of good vs bad golden rule test do unto others as you would have done to you person in the mirror test can you face yourself and feel good Lecture 3 August 28 Marketing Environment Define the marketing environment The marketing environment is all the uncontrollable elements surrounding any company that might affect how well it does Describe the macro factors Demographics population statistics on age gender ethnicity income education cultural social values and beliefs economic income and business technology innovation political legal laws competitive what other companies are doing List the generational cohorts and describe their characteristics baby boomers 1946 1964 control 80 of the country s wealth active involved in their kids and grandkids lives postponing retirement Gen X helicopter parents 1965 1976 kids are their main focus biggest massmerchandise spenders value education convenience is important Gen Y millennials 1977 2000 largest group wide range of life cycles the golden target market diverse like to multitask identify with brands Gen Z digital natives 2001 2014 already cynical about advertising information access socially connected Lecture 4 5 September 2 4 Marketing Environment con t and Consumer Behavior 30 What is involved in the economic situation The economy as a whole business cycles employment levels the strength of the dollar and inflation and interest rates What are political legal factors Name some of the important business legislation acts agreements They are the laws and regulations that protect both competition and consumers 1890 Sherman Antitrust Act 1914 Clayton Act prohibits combo of 2 competing companies through pooling stock etc 1914 Federal Trade Commission formed 1936 Robinson Patman Act against price discrimination 1938 Wheeler Lee Act must be truthful in promotion and be able to back up claims 1993 NAFTA North American Free Trade Agreement Explain the two types of involvement when making purchases High involvement you pay more attention to ads and process them more deeply You develop strong attitudes and purchase intentions Risk is involved and you feel a sense of control Used when buying cars etc Low involvement less attention to ads and you process them less deeply Develop weaker attitudes and use cues more Used when making low cost purchases like soap Marketer influence strategy promote in store link purchase to high involvement issue like tooth decay What is the extended decision making process 1 Need recognition going from present state to preferred state 2 Information search internal memories experiences and external research search for info family friends get most input 3 Alternative evaluation attribute sets universal all brands of what you want retrieval all the brands you know of evoked the brands you