Final Exam Study Guide Marketing 301 1st Edition Chapter 1 Marketing An organizational function and a collection of processes designed to plan for create communicate and deliver value to customers and to build effective customer relationships in ways that benefit the organization and its stakeholders Value The benefits a customer receives from buying a good or service Production Orientation a business focus on efficient product and distribution with little emphasis on any marketing strategy A business can increase demand for its brand of products or services through marketing activities such as advertising During the last decade in the 2000s there has been an increased focus on social responsibility ethics and accountability in business Customer Lifetime Value the projected sales revenue and profitability that a customer could provide to a firm A brand is a promise to deliver to consumers specific benefits associated with products or services The marketing concept is an organizational philosophy dedicated to understanding and fulfilling consumer needs through the creation of value Utility is the sum of benefits a consumer receives when using a good or service Marketing mix refers to a collection of marketing variables that are managed to achieve the desired sales performance in a target market Marketing functions are activities performed within organizations that create value for specific products or services Activities performed within organizations that create value for specific products or services are known as marketing functions Financing and risk taking marketing information and research and the promise of services are examples of the facilitating function The 4Ps of the marketing mix include product price place and promotion These are the tools an organization uses to create a desired response among a set of predefined customers From the 1950s to the 1980s the business focus was on a consumer orientation From the early part of the twentieth century to the 1930s the business focus was on a production orientation These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute From the 1950s to the 1980s the business focus was on a consumer orientation From the 1930s to the 1950s the business focus was on a sales orientation In the 1980s businesses began to focus on a relationship orientation A need is the difference between a consumer s actual state and some ideal or desired state A want is a desire for a particular product used to satisfy a need in specific ways that are culturally and socially influenced Chapter 2 In a buying center the role of the initiator is to identify the need to buy a particular product or service to solve an organizational problem The economic social and cultural competitive legal political and technological subenvironments make up the greater macroenvironment Business markets include the individuals and organizations that are potential or actual buyers of goods and services that are used in or in support of the production of other products or services that are supplied to others The social and cultural environment includes factors that relate marketing to the needs and wants of society and culture Income levels are average consumer earnings used to relate to changes in demand A surplus reflects a marketer s missed opportunity to charge more for products or services and reflects an advantage to consumers A buying center is the collection of individuals who perform specific roles in the procurement process In a buying center the role of the gatekeeper is to control the flow of information to decision makers and influencers The economic environment includes factors that influence consumer purchase ability and buying behavior The demand for a product or service that results from the demand for another product or service is known as derived demand The microenvironment comprises entities such as customers suppliers competitors and other businesses that assist or influence a business s ability to sell distribute promote and develop products or services Consumer markets are the end user of the product or service and include individuals and households that are potential or actual buyers of products and services New Task buyclass category involves a first time or unique purchase decision that requires extensive effort The marketing environment is A set of forces some controllable and some uncontrollable that influences the ability of a business to create value and attract and serve customers The first step in the buyer purchase process is recognizing the organizational problem or need The second step is the determination of the characteristics of the item and quantity needed The third step is describing the characteristics of the item and quantity needed The fourth step is the search for and qualification of potential sources The last step is selection of an order routine Chapter 3 The purpose of a SWOT analysis is to identify business strengths weaknesses opportunities and threats The innovation and learning perspective of the balanced scored asks the question Can we continue to grow and generate value A product strategy identifies the product and service portfolio including packaging branding and warranty for its target market Is there a duration for attaining the objective is the question asked by the Timebound component of S M A R T A target market is a group of consumers that a business determines is the most viable for its product or services Cash cows are low growth high share businesses or products These established and successful strategic business units need less investment to hold their market share Question marks are low share business units in high growth markets that require a lot of cash to hold their share let alone increase it Dogs are low growth low share businesses and products that may generate enough cash to maintain themselves but do not promise to be large sources of cash According to the Boston Consulting Group BCG growth share matrix high growth high share businesses or products are known as stars Stars often need heavy investments to finance their rapid growth The series of steps businesses take to determine how they will achieve their goals is business planning Return on marketing investment ROMI measures the impact on business performance resulting from executing specific marketing activities An elevator pitch refers to a brief description