MKT 300 1nd Edition Final Exam Study Guide Lectures 1 26 II Chapter 1 Terms III Chapter 1 Concepts to Apply IV VIII Chapter 2 Terms V IX Chapter 2 Concepts to Apply X XII Chapter 4 Terms XI XIII Chapter 4 Concepts to Apply XIV XVII Chapter 5 Terms XV XVIII Chapter 5 Concepts to Apply XIX Chapter 7 Terms XX Chapter 7 Concepts to Apply XXI Chapter 10 Terms XXII Chapter 10 Concepts to Apply XXIII XXV Chapter 11 Terms XXIV XXVI Chapter 11 Concepts to Apply Chapter 1 II Chapter 1 Terms Production actually making goods or performing services Customer Satisfaction the extent to which a firm fulfills a customer s needs desires and expectations Innovation the development and spread of new ideas goods and services Marketing performance of activities that seek to accomplish an organization s objectives by anticipating customer or client needs and directly a flow of need satisfying goods and services from producer to consumer or client Macro Marketing 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 on how the whole marketing system works a k a affecting society and vice versa Economies of Scale As a company produces larger numbers of a particular product the cost of each unit of the product goes down Buying looking for and evaluating goods and services Selling Promoting the product advertising etc Transporting movement of goods from one place to another Storing holding goods until customers need them Standardization and Grading Sorting products according to size and quality reduces need for inspection and sampling Financing necessary cash and credit to produce transport store promote sell and buy products Risk Taking bearing the uncertainties that are part of the marketing process Simple Trade Era a time when families traded or sole their surplus output to local distributors these specialists resold the goods to other consumers or other distributors think less developed countries Production Era Industrial Revolution until 1920 s time when a company focused on production of a few specific products if we can make it it will sell Sales Era 1930 time when a company emphasizes selling because of increase competition a k a beat competitors and win consumers Marketing Department Era time when all marketing activities are brought under the control of one department to improve sort run policy planning and to try to integrate the firm s activities Marketing Company Era time when in addition to short run marketing planning marketing people developed long range plans sometimes five or more years ahead and the whole company effort is guided by the marketing concept Marketing Concept an organization aims all of its efforts at satisfying its customers at a profit Three basic ideas customer satisfaction total company effort and profit Production Orientation when managers show little interest in customers needs making whatever products are easy to produce and then trying to sell them think customers by output instead of trying to serve customers Marketing Orientation when companies try to carry out the marketing concept tries to offer customers what they need Customer Value the difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits Micro Macro Dilemma when a firm focuses its efforts on satisfying some consumers to achieve its objectives there may be negative effects on society Producers and consumers making free choices can cause conflicts and difficulties What is good for some companies might not be good for society as a whole I e NYC water bottles vs good tasting safe tap water Social Responsibility a firm s obligation to improve its positive effects on society and reduce its negative effects Marketing Ethics the moral standards that guide marketing decisions and actions III Chapter 1 Concepts to Apply 1 What is marketing a The performance of activities that seek to accomplish an organization s objectives by anticipating customer or client needs and directing a flow of needsatisfying goods and services from producer to customer or client 2 What is marketing Important to you a I ll be a consumer the rest of my life things available when and where I want them I pay for cost of marketing activities as a consumer career opportunities 3 How does marketing differ from production Why is this distinction important a Marketing should begin with potential customer needs marketing should try to anticipate needs marketing rather than production should determine what goods and services are to be developed 4 How is customer satisfaction linked to the marketing concept a Customer satisfaction guides the whole system companies used to fence in their area in the company but that s not good better to work together to get the ultimate goal 5 Explain the relationship between customer satisfaction and profit a Customers who are satisfied are more likely to be loyal increase customer lifetime value and increase customer willingness to pay premium costs b Firms must satisfy customers even if it can be more costly c Profit difference between a firm s revenue and its total costs It is the bottom line measure of the firm s success and ability to survive it is the balancing point that helps the firm determine what needs it will try to satisfy with total effort 6 What is the micro macro dilemma Examples How can you resolve it ethically a What is good for some firms and consumers may not be good for society as a whole consumers and producers making free choices can cause conflicts and difficulties NYC water bottle issue b Terrain vehicles are fun for some people but may result in damage of wilderness area and injuries killing productive people to society 7 Name a recent product evolution Why do you feel it is an evolution not a revolution a Purina Dog Food Zip lock top is an evolution of hard dog food A revolution would be the breakthrough invention of preservative hard dog food Diagrams from Chapter 1 Lecture Notes Chapter 2 IV Chapter 2 Terms Strategic management Planning Planning strategies to guide a whole company Managerial process of developing and maintain an organization s resources and its market opportunities Target Market A fairly homogenous group of customers to whom a company wishes to appeal Marketing Mix The controllable variables the company puts together to satisfy this target group 4 P s Product Place