BCOR 2400 1st Edition Exam 1 Study Guide Chapter 1 The Four P s of Marketing Product Price Promotion Place Marketing provides utility Utility The total satisfaction received from a good or service The usefulness provided by a good or service Form utility Size and style Possession ownership utility Easy to buy credit cards apartment lease Time utility FedEx fast food express lane Place utility Bottled water outside a stadium 7 11 Service utility Clean fix a car Controllable vs uncontrollable factors Controllable factors Product Price Place Promotion Uncontrollable factors Social Facebook Flickr WhatsApp Economic Cost vs value has changed Technological Smart phones Competitive Many devices Regulatory Privacy rights issues Chapter 2 The Organization Foundation What is the purpose of the business Core Values The fundamental passionate and enduring principles of an organization that guide its conduct over time Defines who we are and we they stand for Mission The organization s function in society often identifying its customers markets products and technologies Defines Why do we exist for what purpose who do we want to be Culture A set of values ideas attitudes and norms of behavior that is learned and shared among the members of an organization A strong culture Guides behavior consistent with values May increase profitability for employees customers Direction What are our goals S M A R T Specific Measurable Attainable Relevant Time based Strategy How will we achieve it Strategic Business Units A unit of a company that has a separate mission and objectives and that can be planned independently from other company businesses Characteristics A distinct mission and a specific target market Control over their own resources Their own competition A single business or a collection of related businesses Plans independent of the other businesses of the organization Strategic planning Where are we now The 5 C s 1 Company 2 Customers 3 Competitors 4 Collaborators 5 Context climate Kerin Text 3 C s 1 Competencies 2 Customers 3 Competitors Where do we want to go Business Portfolio Analysis BCG Stars high market growth rate and market share Question Marks High market growth rate and low market share Cash cows Low market growth rate and high market share Dogs Low market growth rate and low market share Investment options Grow build Maintain Harvest Divest Situation SWOT analysis Strengths build Weaknesses fix Opportunities exploit Threats avoid Look both inside and outside organization Identify industry trends Analyze Competitors Assess the Organization Research present and prospective customers Strategic Planning Process Points of difference Attributes of superiority Ex Taste speed comfort durability Product positioning A promise you own in the consumer s mind Ex Walmart lowest price Market segmentation Target markets Which products to which markets Market Environment victim to change Social Demographics Aging population More women in the workforce The end of the majority Marriage delayed Rise of the self employed Culture Green movement Conspicuous consumption Gender roles Economic Unemployment Inflation Oil Food GDP Income levels Productivity Housing starts Durable goods orders Car sales Technological The cloud Localization of the Internet Going mobile Data synthesis Pay anywhere Competitive Nature of your market Monopoly Oligopoly Monopolistic competition Pure competition Other competitive reconnaissance New products Pricing Sales tactics Advertising Product features Distribution Market share sales performance Regulatory Phone use in vehicles Dodd Frank oversight in financial industry FDA labeling for ingredients organic Tobacco packaging labeling Chapter 3 Ethics Beliefs about what is right and wrong or good or bad in actions that affect others Ethics vs Law Ethics your personal principles and values Laws Society s values and standards Ethics frameworks Utilitarianism Greatest good Deontology Duties principles and obligations AMA American marketing association Do not harm Foster trust in the marketing system Embrace ethical values Honesty responsibility fairness respect transparency openess citizenship Ethics 4 P s Price what s the best price to charge Place exclusive distribution contracts Promotion Greenwashing Product Placebo effect Predictably irrational chapter 11 The Role of a Business in Society Classical view Maximize shareholder wealth Enlightened self interest Stakeholder view Add value to all stakeholders Reduces Shareholder wealth Sustainability People planet profit Future generations Chapter 4 Global trade Import and export of goods between continues to rise Comparative advantage Protectionism Trade protectionism the use of government regulation to limit the import of goods and services Tariffs Tax on imports Quotas Limits on imports sugar beets Embargos Complete ban on import or export Subsidies Support of an industry agriculture 1930 Smoot Hawley Act Raised 900 duties Reduced Imports Damaged relations 2009 Buy America Stimulus money steered to US goods WTO World trade organization Only global international organization dealing with the rules of trade between nations Good vs Bad Good Protects domestic industries Jobs Emerging industries National security Counter Foreign practices Bad Reduces Competition restricts free trade Increases prices Reduces export gains Negative effect on the freeness and the success of the international marketplace Dumping When a firm sells a product in a foreign country below its domestic price or below its actual cost Or a way to differentiate price based on economic conditions and opportunity Price avg fixed costs variable costs profit Companies dump to Gain share market entry Get rid of inventory perhaps old stuff Recoup some costs Disrupt a competitor Global Environment Aspects of culture values customs symbols and language Values Consumer ethnocentrism Beliefs that aspects of one s culture are superior to another Not based on product attributes features but that it s inappropriate immoral to purchase foreign made goods Because it hurts US business Provides sense of identity Country of Origin effects The belief that a product is superior based on merits specific attributes quality service price Predictably Irrational chapter 15 global differences Individuality Conformity Customs Cultural relativism Ex Japanese gift giving Foreign Corrupt Practices Act FCPA Anti bribery provisions make it illegal to offer or provide money or anything of value to with