Vocab- Exam 11. Ch 1a. Marketing- the process of creating, distributing, promoting, and pricing goods, services and ideas to facilitate satisfying exchange relationships with the customers and to develop and maintain favorable relationships with stakeholdersin a dynamic environmentb. Customers- the purchasers of organizations' products; the focal point of all marketing activitiesc. Target Market- a specific group of customers on whom an organization focuses its marketing effortsd. Marketing Mix- 4 marketing activities: product, pricing, place and promotion--that a firm can control to meet the needs of customers within its target markete. Product- a good, service or ideaf. Value- a customer's subjective assessment of benefits relative to costs in determining the worth of the productg. Exchange- the provision or transfer of goods, services, or ideas in return for something of valueh. Stakeholders- constituents who have a "stake" or claim, in some aspect of a company's products, operations, markets, industry, and outcomesi. Marketing Environment- the competitive, economic, political, legal, and regulatory, technological, and sociocultural forces that surround the customer and affect the marketing mixj. Marketing Concept- a managerial philosophy that an organization should try to satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goalk. Marketing Orientation- an organization wide commitment to researching and responding to customer needsl. marketing strategy- the selection and analysis of a target market and the creation and maintenance of an appropriate marketing mix that will satisfy those people.i. what is a marketing strategy?1. Identify a target market2. Develop an appropriate marketing mixm. Customer Relationship Management- using information about customers to create marketing strategies that develop and sustain desirable customer relationshipsn. Relationship Marketing- establishing long-term, mutually satisfying buyer-seller relationshipso. Green Marketing- a strategic process involving stakeholder assessment to create meaningful longer relationships with customers while maintaining, supporting, and enhancing the natural environment2. Ch 3a. Environmental scanning- the process of collecting information about forces in the marketing environment. b. Environmental analysis- the process of assessing and interpreting the information gathered through environmental scanning. c. Types of competitors:1. Competition- other organizations that market products that are similar to or can be substitutes for a marketers products in the same geographic areaii. Brand Competitors- firms that market products with similar features and benefits to the same customers at similar pricesiii. Product Competitors- firms that compete in the same product class but market products with different features, benefits, and pricesiv. Generic Competitors- firms that provide very different products that solve the same problem or satisfy the same basic customer needv. Total Budget Competitors- firms that compete for the limited financial resources of the same customers.d. Types of competitive structure:i. Monopoly- a competitive structure in which in organization offers a product that has no close substitutes, making that organization the sole source of supplyii. Oligopoly- a competitive structure in which a few sellers control the supply of a large proportion of a productiii. Monopolistic Competition- a competitive structure in which a firm has many potential competition and tries to develop a marketing strategy to differentiate its productsiv. Pure Competition- a market structure characterized by an extremely largenumber of sellers, none strong enough to significantly influence price or supplyv.e. Business Cycle- pattern of economic fluctuations that has 4 stages: prosperity, recession, depression, recoveryi. Prosperity- a stage of the business cycle characterized by low unemployment and relatively high total income, which together ensure high buying power (provided the inflation rate stays low)ii. Recession- a stage of the business cycle during which unemployment rises and total buying power declines, stifling both customers and business spendingiii. Depression- a stage of the business cycle when unemployment is extremely high, wages are very low, total disposable income is at a minimum, and consumers lack confidence in the economyiv. Recovery- a stage of the business cycle in which the economy moves fromrecession or depression toward prosperityf. Buying Power- resources, such as money, goods, and services, that can be tradedin an exchangeg. Income- for an individual, the amount of money received through wages, rent, investments, pensions, and subsidy payments for a given periodh. Disposable Income- after-tax incomei. Discretionary Income- disposable income available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelterj. Wealth- the accumulation of past income, natural resources and financial resourcesk. Willingness to Spend- an inclination to buy because of expected satisfaction from a product, influenced by the ability to buy and numerous psychological and social forcesl. FTC (Federal Trade Commission)i. Major regulatory agency- an agency that regulates a variety of business practices and curbs false advertising, misleading pricing, and deceptive packaging and labelingm. Better Business Bureau- a system of nongovernmental, independent, local regulatory agencies supported by local businesses that help settle problems between customers and specific business firmsn. NARB (National Advertising Review Board)- a self-regulatory unit that considers challenges to issues raised by the National Advertising Division about an advertisemento. Technology- the application of knowledge and tools to solve problems and perform tasks more efficientlyp. Sociocultural Forces- the influences in a society and its culture that change people's attitudes, beliefs, norms, customs and lifestylesq. Consumerism- organized efforts by individuals, groups, and organizations to protect consumer rights.2. Ch 4a. social responsibility- an organization's obligation to maximize its positive impact and minimize its negative impact on society i. deals with the total effect of marketing decisions on societyb. marketing citizenship- the adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic