BMGT350 Marketing Chapter Outline Chapter One An Overview of Marketing Marketing o The activity set of institutions and processes for creating communicating delivering and exchanging offerings that have value for customers clients partners and society at large Production orientation o A philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace Sales orientation o The ideas that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits Marketing concept o The idea that the social and economic justification for an organization s existence is the satisfaction of customer wants and needs while meeting organizational objectives PROFITS Market orientation o A philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer s decision to purchase a product it is synonymous with the marketing concept Societal marketing orientation o The idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals and society s long term best interests o The relationship between benefits and the sacrifice necessary t obtain Customer value those benefits Empowerment o Delegation of authority to solve customers problems quickly usually by the first person the customer notifies regarding a problem Chapter Two Strategic Planning for Competitive Advantage Strategic planning o The managerial process of creating and maintaining a fit between the organization s objectives and resources and the evolving market opportunities SBUs Marketing Plan Strategic Alternatives Strategic Business unit SBU o A subgroup of a single business or collection of related businesses within the larger organization Ansoff s Opportunity Matrix easy to understand MAKE 2 X 2 CHART o Market penetration marketing strategy that tries to increase market share among existing customers MOVIE SUPER SIZE ME o Market development marketing strategy that entails attracting new customers to existing products o Product development marketing strategy that entails the creation of new products for present markets o Diversification a strategy of increasing sales by introducing new products into new markets Portfolio matrix A tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate o Star o Cash cow o Dog In the portfolio matrix a business unit that is fast growing market leader In the portfolio matrix a business unit that generates more cash than it needs to maintain its market share o Problem child Question market In the portfolio matrix a business unit that shows rapid growth but poor profit margins In the portfolio matrix a business unit that has low growth potential and a small market share o Strategies Build Hold Harvest Divest Marketing Plan o A written document that acts as a guidebook of marketing activities for the marketing manager Marketing Myopia o Defining a business in terms of goods and services rather than in terms of the benefits customers seek SWOT Analysis o Internal capitalize Strengths neutralize Weaknesses o External Opportunities Threats Competitive advantage o A set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition o Types Cost Product Service Differentiation Niche Cost competitive advantage o Being the low cost competitor in an industry while maintaining satisfactory profit margins Experience curves o Curves that show costs declining at a predictable rate as a experience with a product increases Product service differentiation competitive advantage o The provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition Niche competitive advantage o The advantage achieved when a firm seeks to target and effectively serve a small segment of the market small companies Sustainable competitive advantage o An advantage that could not be copied by the competition patent Marketing strategy o The activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets Market opportunity analysis MOA o The description and estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in the market segments Marketing mix o A unique blend of product place distribution promotion and pricing strategies designed to produce mutually satisfying exchanges with a target market Four P s Implementation o The process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan s objectives Marketing audit o A thorough systematic periodic evaluation of the objectives strategies structure and performance of the marketing organization Comprehensive systematic independent periodic Chapter Three Ethics and Social Responsibility Ethics Morals o The moral principles or values that generally govern the conduct of an individual or a group o The rules people develop as a result of cultural values and norms Morality and Business Ethics and selfish DELL CASE o Preconventional morality most basic level childlike self centered o Conventional morality moves from an egocentric viewpoint toward the expectation of society Loyalty and obedience to organization or society become paramount Marketing decision is legal and how others will view it o Postconventional morality morality of the mature adult Concerned about the long run Ethical Decision Making o Extent of ethic problems within the organization o Top management s actions on ethics o Potential magnitude of the consequences o Social consensus o Probability of a harmful outcome o Length of tune between the decision and the onset of consequences o Number of people to be affected Code of Ethics better decisions o Guideline to help marketing managers and other employees make Foreign Corrupt Practices Act FCPA o A law that prohibits U S corporations from making illegal payments to public officials of foreign governments to obtain business rights or to enhance their business dealings in those countries Corporate social responsibility CSR o A business s concern with society s welfare
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