BUAD301 Test 4 Chapter 1 Marketing s Value to Consumers Firms and Society Characteristics of how we define marketing Society needs some sort of marketing system to organize the efforts of all the producers wholesalers and retailers needed to satisfy the varied needs of all its citizens Micro view set of activities formed by organizations Macro view social process Marketing o Identify and meet needs o Anticipates and begins with needs o Provides direction for production accounting and financial activities o Facilities exchanges o Doesn t occur unless two or more parties are willing to pay Aim is to identify customers needs and meet those needs so well that the product almost Marketing doesn t occur unless two or more parties are willing to exchange something Pure substance economy each family unit produces everything it consumers not sells itself for something else marketing involved Marketing part of an ongoing relationship not a single transaction Characteristics of the different eras in marketing Marketing evolution not everyone at final stages 1 simple trade era trade sold surplus 2 production era few specific products Industrial Revolution 1920s 3 sales era increased competition 1930 1950 4 marketing department era short run plans marketing activities brought under control of one department and try to integrated firm s activities 5 marketing company era short and long run plans guides whole company effort 1960s Characteristics of the marketing concept Marketing concept organization aims all efforts at satisfying its customers at a profit customer satisfaction total company effort and profit Production orientation making easy products and then selling them customer s exist to Marketing orientation try to carry out the marketing concept well managed firms tries buy firm s output to offer customers what they need Profit difference between revenue and total costs bottom line measure of success and ability to survive Marketing concept forces company to think through what it is doing and why Chapter 2 Marketing Strategy Planning Characteristics of the 4 Ps Marketing mix product place promotion price Customer is the target of all marketing efforts but not part of the marketing mix Product o Developing the right product for the target market o Physical good service or blend of both o Branding packaging warranties new products quality whole product lines Place o Decisions involved in getting the right product to the target market s place o Channel of distribution any series of firms or individuals that participate in the flow of products from producer to final user or consumer can be direct or indirect o Physical distribution service levels transporting storing handling products Promotion production Price o Telling the target market or others in the channel of distribution about the right o Focused on acquiring new customers and retaining current customers o Personal selling mass selling advertising and publicity sales promotion o Must consider the kind of competition in the target market and the cost of the o Estimate expected customer reaction to the total offering and the cost of getting it whole marketing mix to them All are equally important and decisions should be made at the same time Selecting a target market and developing a marketing mix are interrelated Strategies must be evaluated against the company s objective Characteristics of a marketing plan Guide to implementation and control Marketing plan written statement of a marketing strategy and the time related details for carrying out the strategy o What marketing mix will be offered to whom and for how long o What company resources will be needed at what rate o What results are expected Implementation putting marketing plans into operation Operational decisions short run decisions to help implement strategies Marketing program blends all of the firms marketing plans into one big plan success depends on the care that goes into planning the individual strategies and how well they work together to create value for the customers and the firm Customer equity expected earnings stream profitability of a firm s current and prospective customers over some period of time Characteristics of international opportunities Technology advances make it easier and cheaper to reach international customers Firm may get fresh start in a new country where its product is just beginning to grow Serving international countries in addition to the home country could improve economies Unfavorable trends in the market environment at home may make international marketing of scale and lower costs more attractive Risks are often higher in foreign markets Chapter 3 Evaluating Opportunities in the Changing Marketing Environment Characteristics of the economic and technological environment Economic environment refers to macro economic factors including national income economic growth and inflation that affect patterns of customers and business spending changes rapidly When the economy declines consumers spend less in categories that are not necessities Changes in the economy are also accompanied by changes in the interest rate charge for borrowing money affects pricing and therefore when if someone will buy Changes in one economy affect others Technology application of science to convert an economy s resources to output creates opportunities for new products and new processes Technology has created new approaches to product price place and promotion May raise ethical issues Characteristics of the legal environment Attempts by businesses to limit competition are considered contrary to public interest Business and individual managers are subject to both criminal and civil laws Antimonopoly laws focus on protecting competition but over time has moved to protecting customers Food drugs and product safety are controlled State local and governmental laws vary Characteristics of the population trends in the United States consumer market Growth rates in different areas create demand for new products and bigger markets Baby boomers 1946 1964 currently creating opportunities in health care and financial services because they are of middle age retired Generation X 1965 1977 coming after the boomers colleges had lots of open space so this generation was better educated than previous ones Generation Y 1978 1994 kids of the baby boomers grew up with technology Chapter 4 Focusing Marketing Strategy with Segmenting and Positioning Characteristics of markets generic