MAR3023 STUDY GUIDE Chapter 1 TERMS Objective 1 The first and most important objective in this course is for every student to be able to accurately describe what marketing is and what roles it plays in organizations and to appreciate the importance of making responsible marketing decisions and the ramifications for firms that neglect this duty Objective 2 Students should be able to articulate at least three strategies firms can use to assess the environment around them and how factors in the environment influence marketing decisions Objective 3 Students should be able to distinguish between socially responsible and ethical business practices versus irresponsible and unethical practices Marketing The process of creating distributing promoting and pricing goods services and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment Customers The purchasers of organizations products the focal point of all marketing activities Target market A speci c group of customers on whom an organization focuses its marketing efforts Marketing mix Four marketing activities product pricing distribution and promotion that a rm can control to meet the needs of customers within its target market Product A good a service or an idea offered for sale Value A customer s subjective assessment of bene ts relative to costs in determining the worth of a product Exchange The provision or transfer of goods services or ideas in return for something of value Stakeholders Constituents who have a stake or claim in some aspect of a company s products operations markets industry and outcomes For example stockholders Marketing environment The competitive economic political legal and regulatory techno logical and sociocultural forces that surround the customer and affect the marketing mix Marketing concept A managerial philosophy that an organization should try to satisfy customers needs through a coordinated set of activities that also allows the organization to achieve its goals Market orientation An organization wide commitment to researching and responding to customer needs Customer relationship management CRM Using information about customers to create marketing strategies that develop and sustain desirable customer relationships Relationship marketing Establishing long term mutually satisfying buyer seller Relationships Green marketing A strategic process involving stakeholder assessment to create meaningful long term relationships with customers while maintaining supporting and enhancing the natural environment Chapter 2 TERMS Objective 1 Students should be able to articulate the process by which firms break down markets and position products to fill unmet consumer needs Objective 2 Students should be able to define the process of and three pitfalls associated with firms moving their products from domestic to international markets Strategic marketing management The process of planning implementing and evaluating the performance of marketing activities and strategies both effectively and ef ciently Strategic planning The process of establishing an organizational mission and formulating goals corporate strategy marketing objectives and marketing Strategy Corporate strategy A strategy that determines the means for utilizing resources in the various functional areas to reach the organization s goals Strategic business unit SBU A division product line or other pro t center within the parent company Market A group of individuals and or organizations that have needs for products in a product class and have the ability willingness and authority to purchase those products Market share The percentage of a market that actually buys a speci c product from a particular company Market growth market share matrix A helpful business tool based on the philosophy that a product s market growth rate and its market share are important considerations in determining its marketing strategy Core competencies Things a company does extremely well which sometimes give it an advantage over its competition Market opportunity A combination of circumstances and timing that permits an organization to take action to reach a particular target market Strategic windows Temporary periods of optimal t between the key requirements of a market and the particular capabilities of a company competing in that market Competitive advantage The result of a company matching a core competency to opportunities it has discovered in the marketplace SWOT analysis Assessment of an organization s strengths weaknesses opportunities and threats First mover advantage The ability of an innovative company to achieve long term competitive advantages by being the rst to offer a certain product in the marketplace Late mover advantage The ability of later market entrants to achieve long term competitive advantages by not being the rst to offer a certain product in a marketplace Marketing objective A statement of what is to be accomplished through marketing activities Marketing strategy A plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market Sustainable competitive advantage An advantage that the competition cannot copy Marketing implementation The process of putting marketing strategies into action Centralized organization A structure in which top level managers delegate little authority to lower levels Decentralized organization A structure in which decision making authority is delegated as far down the chain of command as possible Strategic performance evaluation Establishing performance standards measuring actual performance comparing actual performance with established standards and modifying the marketing strategy if needed Performance standard An expected level of performance against which actual performance can be compared Sales analysis Analysis of sales gures to evaluate a rm s performance Marketing cost analysis Analysis of costs to determine which are associated with speci c marketing efforts Marketing plan A written document that speci es the activities to be performed to implement and control the organization s marketing strategies Chapter 3 TERMS Objective 1 Students should be able to define the dimensions of a product mix depth and breadth of product lines and name three ways in which firms manage their product mixes to maximize market share Objective 2 Students should be able to list
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