MARK 3000 4TH EditionFinal Exam Study Guide *She said there will only be major concepts from the previous chapters, and there willbe no new information from the book. 2-3 questions on each concept*Test 1Lecture 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 theneeds 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 rightconsumer 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 issue2.Gather information and identify stakeholders3.Think up ideas, evaluate alternatives4.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, controlsPersonal 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, educationcultural/social: values and beliefs economic: income and businesstechnology: innovationpolitical/legal: laws competitive: what other companies are doingList the generational cohorts and describe their characteristics.-baby boomers (1946-1964): control 80%+ of the country’s wealth, active, involved in theirkids’ and grandkids’ lives, postponing retirement-Gen X “helicopter parents” (1965-1976): kids are their main focus, biggest mass-merchandise 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 connectedLecture 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 Act1914: Clayton Act (prohibits combo of 2+ competing companies through pooling stock, etc)1914: Federal Trade Commission formed1936: 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 state2.Information search: internal