CH 1 Flash cards Marketing a strategy that creates communicates captures delivers and exchanges items of value for customers and society at large Relational orientation creating long term customer relationships to generate sales Marketing Mix 4 Ps product price place promotion the four areas marketers focus on to fulfill customer needs Transactional orientation only worry about what happens at the time of sale do not focus on what happens before of after the sale No focus on the customer needs C2C consumer to consumer A sale that occurs between two consumers Ex a student reselling their textbook on amazon com Value something that provides benefits to the consumer and fulfills their needs Relationship between benefits and costs Reflects what a consumer gets for what they give B2C business to consumers A sale between a business to a consumer ex Gap selling a t shirt to a woman B2B business to business A sale between a business to a business ex Suppliers selling raw materials to a manufacturer Ideas concepts thoughts opinions or philosophies that can be marketed to consumers Not a tangible product Good a tangible product that adds value for the consumer Marketing plan includes the 4ps A company s strategy for selling their good service to the consumer Exchange the consumer gives their time money and information to a company in exchange for a product service that will fulfill their need A trade of something of value between the buyer and seller so that they are both better off as a result Service cannot be separated from the producer Intangible benefit provided to the consumer Price monetary value given to a product or service that satisfies the amount a customer is willing to pay and will still provide a profit for the seller Customer Relationship Management CRM the process that oversees that a long term relationship is built with the customer part of the marketing strategy A strategy that focuses on identifying and building loyalty amongst the company s most valued customers Supply chain everyone involved in the manufacturing and delivery of a product CHAPTER 2 Sustainable competitive advantage something a firm can persistently do better than its competitors Supply chain efficiency brand name customer satisfaction and patented technology are all potential sources of sustainable competitive advantage Product excellence one of the overarching strategies and a firm may use the product itself branding and positioning to create an advantage difficult for a competitor to copy Components of a marketing strategy 1 ID firm s target market 2 Related marketing mix 3 Basis upon which the firm plans to build a sustainable competitive advantage a Customer excellence b Operational excellence c Product excellence d Locational excellence CHAPTER 3 Ethical climate creating an environment in the workplace where all employees are aware of the code of ethics it is part of the company s mission and employees make decisions based on the code of ethics Corporate social responsibility a company s commitment to enriching society Goes beyond the stakeholders of the company Business ethics ensuring that profits are gained in an ethical manner and that business decisions and behaviors are done ethically Marketing ethics concerns issues that arise within the marketing aspects of a company Involves asking questions such as should we market this product to these consumers are we doing it in the right way CHAPTER 4 The consumer is always in the center of the marketing environment Components of the immediate environment 1 Company capabilities 2 Competitors competitor intelligence 3 Corporate partners to ensure on time delivery of goods Components of the macro environment 1 Political regulations agencies creating new rules political parties laws legislation government agencies 2 Technology advancements in technology 3 Social trends green consumers marketing to children time poor society and privacy concerns 4 Economic Changes inflation interest rates fluctuations in foreign currency 5 Demographics age gender personal income 6 Culture regional vs country CHAPTER 5 Types of consumer goods 1 convenience consumer is not willing to spend any effort to evaluate 2 shopping consumers will spend time comparing alternatives apparel prior to purchase fragrances appliances 3 specialty consumer shows a strong preference and will expend considerate effort to search for best suppliers Evaluation of Alternatives Determinant attributes features that are important to the buyer and on which competing brands or store are perceived to differ Evaluative criteria consist of a set of salient or important attributes about a particular product Decision heuristics mental shortcuts that help consumers narrow down choices ex Price product presentation and brand Post purchase dissonance aka Buyer s remorse marketers try to avoid this by sending thank you cards to consumers to reinforce the decision to purchase Stages in the consumer decision process 1 Need recognition functional vs psychological needs 2 Information seeking on alternatives 3 Evaluate alternatives 4 Purchase 5 Post purchase Factors influencing consumer decision process 1 Social reference groups family culture 2 Psychological a motives b attitudes cognitive affective and behavioral Enduring evaluation of his her feelings abt an object or idea c perceptions d learning and lifestyle 3 Situational a purchase situation habitual new emergency gift b shopping situation in store demos packaging store atmosphere 4 Marketing Mix price product place promotion Types of buying decisions 1 habitual consumers engage with little conscious effort 2 limited problem solving a purchase decision that involves moderate time and effort 3 extended problem solving a purchase decision process during which the consumer devotes considerable time and effort to analyzing alternatives Consumer perceives the purchase decision entails a lot of risk 4 Impulse the consumer decides to buy merchandise on the spot Compensatory decision rule when evaluating alternatives consumers decide that the good attributes of a product overrule the bad attributes Noncompensatory decision rule when evaluating alternatives consumers choose a product service on the basis of a subset of its characteristics regardless of the values of other attributes CHAPTER 6 Look at notes on B2B CHAPTER 8 Steps in the segmentation process 1 Identify strategy 2 Segmentation a Create segments b Describe segments c Create a segmentation tree grid 3