MKTG EXAM 109 23 2013 Principles of Marketing Chapter 1 1 4 P s of Marketing product price place promotion 2 Definition of marketing 2 parts the process by which companies create value for customers and build strong relationships in order to capture value from customers in return 3 Marketing Myopia the mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products 4 What are customers 5 Selling Concept anyone in the supply chain but specifically the end user idea that customers will not buy enough of the firms products unless the firm undertakes a large scale selling and promotion effort profits through sales volume 6 Marketing Concept a philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do 7 Product Concept idea that consumers will favor products that offer most quality performance and features therefore companies should devote energy in continuous product improvements 8 Production Concept idea that consumers will favor products that are available and affordable companies should focus energy on improving product and distribution efficiency 9 Marketing Mix how marketers implement marketing strategies 10 Societal Marketing Concept idea that a company s marketing decisions should consider consumers wants the company s requirements the consumers and society s long run interests 11 Marketing Environment the actors and forces outside marketing that affect marketing MGMT ability to build and maintain successful relationships with target customers 12 Customer Relationship Management the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction 13 Customer Perceived Value the customers evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers 14 Customer Satisfaction the extent to which a products perceived performance matches a buyer s expectations 15 Customer Managed Relationships marketing relationships in which customers empowered by today s new digital tech interact with companies and each other to shape brand 16 Consumer generated market brand exchanges created by consumers by which consumers are playing an increasing role in shaping their own brand experiences and those of other customers 17 Customer Equity the total combined customer lifetime values of all the company s customers Chapter 3 customers 18 Actors in the microenvironment the company suppliers marketing intermediaries competitiors publics A The company all departments must think consumer and cooperate inter functionally to provide superior customer value outward facing B Suppliers provide resources needed for production and innovation C Intermediaries help company promote sell and distribute the products to end users D Competitors Who might the customer choose instead Provide reasonable substitute for customers i Competitive advantage ii Point of difference iii Law of Color a brand should use color that is opposite of competitor to create own identity E Publics any group that has an interest in or impact on an Org s ability to achieve its objective i Financial media gov local general internal F Customers consumer business buyer reseller gov non profit international martkets 19 Forces in the Macroenvironment demographic economic natural technological political cultural A Demographic marketers track measurable census type date on consumers household structure age geographic populations education population diversity occupations i Age Structure Baby Boomers btwn 1946 and 1964 most affluent postpone retirement stay active Gen X btwn 1965 and 1976 less materialistic cutting and pasting care about environment Gen Y 1977 and 200 echo boom large income tech saavy now oriented and millenials B Economic Forces consists of factors that affect consumer purchasing power and spending patterns C Natural Forces natural resources that are needed as inputs by marketers or that are affected by marketing activities ex Shortage of materials increased pollution change in environment D Technological Forces factors hat create new tech creating new product and market opportunities making other products obsolete ex Augmented Reality E Political Forces laws regulations and pressure groups that influence and limit various organizations and individuals in a given society F Cultural Forces the forces that affect a society s basic values perceptions preferences and behavior 20 Marketing Laws most laws have been passed to protect consumer Fair packaging and labeling act federal food and drug truth in advertising allowed to exaggerate Sherman Antitrust Act price fixing predatory pricing Robinson Patman Act price discrimination 21 Current Cultural Trends Hypertasking multi tasking in overdrive Duty and Fun responsible fun Adventurers doing what others wouldn t do Mass Mingling digital technologies affect offline mingling Cocooning Nesting improve safe haven Chore of Work declining job satisfaction and company loyalty American Patriotism sense of national pride LOHAS Lifestyles of Health and Sustainability concern for natural world Renewed Spirituality greater meaning of life less materialism 22 Legislation Regulating Business Sherman Antitrust Act prohibits monopolies and predatory pricing price fixing Federal Food and Drug Act forbids the manufacture or sale of adulterated or fraudulently labeled food and drugs Fair Packaging and Labeling requires manufacturer to state what it is who made it how much it contains Truth in Advertising prevents fraud labeling but allows exaggeration Chapter 3 23 Strengths and Weaknesses of Contact Method Mail not flexible unbiased poor response lowest cost Phone flexible somewhat biased poor response low cost Interview highly flexible biased good response high cost 24 What is the difference between a judgement sample and a quota sample 25 Law of Fellowship business and marketing info 26 Marketing Research companies in some industries keep each other close which brings in more systematic design collection analysis and reporting of date relevant to a specific marketing situation facing an organization 27 Types of Research A Exploratory gathers preliminary info that will help define the problem and suggest hypothesis B Descriptive describes things C Casual tests hypotheses about