BCOR 2400 1st EditionExam 1 Study GuideChapter 1:The Four P’s of Marketing-Product-Price-Promotion-PlaceMarketing provides utility:Utility-The total satisfaction received from a good or service-The usefulness provided by a good or serviceForm utility-Size and stylePossession/ownership utility-Easy to buy, credit cards, apartment leaseTime utility-FedEx, fast food, express lanePlace utility-Bottled water outside a stadium, 7-11Service utility-Clean/fix a carControllable vs. uncontrollable factors:Controllable factors-Product-Price-Place-PromotionUncontrollable factors-Social-Facebook, Flickr, WhatsApp-Economic-Cost vs. value has changed-Technological-Smart phones-Competitive-Many devices-Regulatory-Privacy rights issuesChapter 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 basedStrategy-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/labelingChapter 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 standardsEthics 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, citizenshipEthics 4 P’s:Price- what’s the best price to charge?Place- exclusive distribution contractsPromotion-GreenwashingProduct- 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 generationsChapter 4:Global trade-Import and export of goods between continues to rise-Comparative advantageProtectionismTrade 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 goodsWTO (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 practicesBad: Reduces Competition/restricts free trade-Increases prices-Reduces export gains-Negative effect on the “freeness” and the success of the international marketplaceDumping-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 competitorGlobal Environment (Aspects of culture: values, customs, symbols, and language)Values-Consumer ethnocentrism-Beliefs that aspects of one’s culture are superior to another Not basedon 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-ConformityCustoms-Cultural relativism-Ex: