barriers to entry business practice or condition that makes it difficult for new firms to enter the market Per se illegal means that courts see it illegal ex courts see price fixing as per se illegal which means the courts see price fixing itself as the legal Business marketing ethics in class we noted that managers give a variety of reasons for not bothering with ethics in the workplace some of the reasons are is for philosophers not managers our people are ethical it s obvious just do good it s preaching Business ethics from the perspective of our guests during lecture business ethics starts at the top of the organization were managers need to be ethical Brand competition a good example is a consumer deciding whether to buy Ford and GM or Toyota Marketing exchange the exchange between buyer and seller so that each is better off after the trade Best Buy success has to do with listening to the customer Customer relationship management CRM the process of identifying prospective buyers understanding them intimately and developing favorable long term perceptions of the organization and its offerings so that buyers will choose them in the marketplace Cash cow are sbu s that generate large amounts of cash far more than they can invest profitably in themselves they have dominant shares of slow growth market and provides cash to cover the organization s overhead and to invest in other Sbu Competitive advantage is a unique strength relative to competitors often based on quality time cost or innovation Classic economic theory assumes a firm seeks to maximize its long run profit achieving a high financial return on its investment is as possible Clayton act 1914 forbid certain actions that are likely to lessen competition although no actual harm has yet occurred Culture refers to the set of values ideas and attitudes that are learned and shared among the members of a group Consumer protectionism the infant formula act the nutritional labeling and education act Marketing mix the tools that marketers have to satisfy customers needs and wants and desires ie Price product promotion and place Competitive advantage is a unique strength relative to competitors often based on quality time cost or Marketing concept the idea that an organization should one strive to satisfy the needs of the customers to while also trying to achieve the organizational goals Company and consumer protectionism trademarks are intended to protect both the firm selling a trademark product and consumer buying it ex Lanham Act 1946 and the trademark Law revision act federal dilution act 1995 Clearasil in class reviewed some commercials from Clearasil that commentators felt showed very questionable judgment the instructor s view of such ads is the response of consumers should be the main influence on whether marketers do or do not use such ads Competitive pressures among existing firms depend on the rate of industry growth Consumers expectations about how the product will perform a set by the marketer Comparative advertising in which one brand is compared to another is intended to cause consumers to perceive differences between the product featured in the advertising marketers who use comparative advertising are trying to use stimulus discrimination to make consumers believe that its product is better than other ones Consumer Bill of Rights estate in the ethics of exchange between buyers and sellers these rights were 1 the right to safety 2 the right to be informed 3 the right to choose 4the right to be heard Counter trade the use of barter rather than money in making global sales Consumer ethics consumers complained about online auction fraud outnumber all reports of online crime the cost to marketers of unethical consumer behavior is huge in terms of lost sales the cost to marketers of unethical consumer behavior is huge in terms of prevention expense retailers lose about 30 billion yearly from shoplifting Data mining is the term that describes the extraction of hidden pre picked his information from large databases Direct exporting is when a US airplane manufacturer sells its airplanes to businesses executives in Germany without using intermediaries Dichotomous questions the simplest form of a fixed alternative question that allows only a yes or a no response Ethnographic research ex and class reviewed a PBS segment on research done by MTV in this example we saw MTV researchers visiting a typical consumer house and doing personal in depth interviewing of the consumer and determined how he lived what he wore what issues were important to him E marketplace eBay is the predominant person to person trading can unity in this world be big business website is a E marketplace Economize winner taxes raised at a faster rate than income does consumer must economize Four p s a marketing product price promotion place Pg 13 Factors that drive competition entry bargaining powers of buyers and suppliers existing rivalries and substitution possibilities Fighting Brand the chief purpose is to confront competitors brand and fair packaging and labeling act 1966 the child protection act 1966 in the consumer products safety act 1972 Ford and the economy Ford would respond to high gas prices by building six new small car models in the US by 2012 Generation Y is known as a demanding group of consumers feels personally responsible for making a difference in the world many members of generation why are becoming entrepreneurs and have an Go daddy com uses buxom women to promote the go daddy Web service and based on responses from the consumers go daddy is likely to continue with these types of ads because consumers react favorably to them Gap Inc the gap brand targets consumers who were interested in the classic American style Identifying illusive consumer tastes or trends by using fuzzy a front end techniques have consumers take a photo of themselves every time they snack have teenagers complete a growing and higher cool hunters ISO 9000 our standards for registration and certification of a manufactures quality management insurance system Information overload can slow down when decision making Life stage analytic matrix a key concept is that age is not the key factor but rather the defining moments in a cohort s formative years Likert scale in which the respondent indicates the extent to which he or she agrees or disagrees with a statement Motivation techniques Psychological needs are basic to survival and must be satisfied first a red lobster