Heidt 1Marketing Final Review – Chapters 1, 4, 5, 9, 13 & 14, 15, 17 & 18Chapter 1Marketing – activity for creating, communicating, delivering and exchanging offerings that benefits its customers, the organization, its stakeholders and society at large. a) Marketing – social managerial process through which individuals and groups obtain what they want or need by creating or exchanging value. Marketing seeks to: 1. Discover needs and wants of customers2. Satisfy the needs of customersExchange – trade of things of value between buyers and sellers, so that each is better off after the trade.Marketing success – stand out rather than fit in: make old things new and new things known. Our souls are programmed to WANT. Like a Leech – like a Grave – like a Womb – like a Fire Hedonic Treadmill – temporarily satisfied with whatever new thing they wanted but find themselves moving toward something else new. For Marketing to occur: 1. Two or more parties with unsatisfied needs2. A desire and ability to be satisfied3. Way for parties to communicate4. Something to exchange10 Marketing Laws: 1) Leadership – Be first 2) Category – be first in the category 3) Mind – be first in the mind of the consumer4) Perception – The way the customers interpret the firm or product5) Focus – own something in the mind of the consumer6) Attributes – have appealing features7) Concentration - 8) Candor – obtain ownership when something goes wrong9) Opposite10) Unpredictability 24% of college students take depression meds compared to 11% in 1997Once a SOLUTION was found, more PROBLEMS were diagnosed.Heidt 2New products – in order to succeed a new product must focus on customer benefit and learn from the past.Needs VS Wants – marketers try to satisfy bothNeed- when a person feels deprived of basic necessities Want – need that is shaped by a person’s knowledge, culture, and personalityMarket – people with both the desire and ability to buy a specific offeringTarget Market – one or more specific groups of potential consumers toward which an organization directs it marketing program Marketing solutions offer benefits that deliver value. Marketing concept – customers and their needs are put firstPositioning – place a product or brand occupies within a customer’s mind (Coke VS Pepsi)Brands – distinguish one product apart from anotherInnovation – use new ideas to improve anything and to keep moving forwardDifferentiation – the certain product in question is different from or better thanDecision Making: 1) Perceive the situation ** 2) Think of courses for action3) Which action is in your best interest?4) DecideThe Four P’s: (all the controllable factors of the MARKETING MIX)1) Product **always first**2) Price3) Promotion4) Place Customer value – Benefits received by targeting buyers, keeps them coming backRelationship Marketing – links the organization to individual customers, employees, suppliers, and other partners for their long-term benefitHeidt 3Evolution of the Market: Production Era – 1920s: Sales Era – 1920s-1960s: Marketing Concept Era 1950s to Today. Marketing Concept - 1) Strive to satisfy needs of customers2) Achieve the organizations goals Market Orientation - 1) Continuously collecting information about customers’ needs 2) Share this information across departments3) Using it to create customer valueSocial Responsibility – the idea that organizations are accountable to a larger society Product – good, service or ideas Ultimate Consumers – use products and services purchased for a householdOrganizational Buyers – buy products and services for their own use or resale Utility – benefits or customer value from a product.Chapter 4 Giving People what they want as opposed to what they should want is an ongoing ethical conflict in contemporary marketing and Western Consumer worlds. 3 Factors Contribute to more Professional Success: 1. IQ2. Birth Family Socioeconomic Status3. Self-ControlEthics – Addresses issues involving decisions regarding what is right or wrong, moral or immoral. Common Examples of Ethical Issues: Product testing on animals, marketing addictive products, donations to good causes, and the level of a firm’s involvement with a community or campaign.People’s perception on Ethics is not likely to be changed or taught to become more ethical, those standards are established prior to an advanced educationEthics can be examined from different perspectives: 1. By Employees/Managers/Executives and their decision making2. The firm and the impact that one firm can have on other firms3. The impact of marketing decision making for consumers/economy/society/cultureHeidt 4*Customers can act unethically too*Marketing Examples of where Ethical issues tend to arise:Pricing – Price fixing, price discriminations, and price skimming.Anti-Competitive Practices – Firms that knowingly engage in practices that eliminate or lessen competition, Collusion, or dumping.Specific marketing promotional strategies: 1. Green Washing – suggesting a product is environmentally friendly when it is not.2. Pink Washing – suggesting a product supports a good cause when it does not. 3. Bait & Switch Practices4. Spam5. Pyramid Schemes – Mary Kay or Bernie MadoffAdvertising Content: Attack ads, too much sex appeal, advertisements of products as immoral orharmful. Cheating Occurs if:1. The stakes involved must be sufficiently high2. Probability of getting caught is relatively low*Disney stopped allowing people to the head of the line because people were hiring handicapped people to join their group. - Marketing firms are constantly subject to substantial criticism from various quarters.o Ethical Criticisms arise from 3 Areas The Consumer and The Societal and Business/Economic CornersConsumer Related Criticisms – 1. Consumers are “harmed” by high prices (although no one is forced to buy high priced items)2. Marketers Engage in Deceptive Practices- Some Do. 3. Marketers Engage in High Pressure Selling – Persuasion – Marketers have been known to push people to buy things they don’t really need or to buy them now, consumers have also been known to want things they don’t need. a. This is the reason for “cooling off laws” purchase a home or automobile 3 days to give back and return product.4. Marketing firms market shoddy or unsafe products – “lower quality” a. High Quality – free from defects, also this is an era