Marketing Test 1 Study Guide Marketing identifying understand and satisfying buyer demands through exchanges Difference between satisfied vs very satisfied will customer come back refer to friend 3 kinds of customers 1 give you money 2 cost you money 3 could make you money 80 20 principle 80 of profit come from 20 of customers repeat customers AMA organizational function and set of processes for creating product communicating promotion capturing place and delivering value price to customers and managing customer relationships Components for all definitions satisfy buyers exchange process advertising and selling are not crucial in marketing process voluntary exchange marketing is taking place satisfying customers occurs whether or not marketing is understood approved of and formally recognized much of marketing is done by middlemen manufacturer wholeseller retailer consumer utility satisfaction value and benefits only matters what consumers think of the products form utility changing the physical appearance of the product to make it more attractive to the consumers marketing activites contribute directly to time utility enhancing product by making it available at a convenient time 1 2 place utility where product is made available 3 possession utility allowing easy transfer of the item s ownership evolution of orientations production orientation stress on making products product orientation offer highest quality as expert producer sees it o marketing myopia mistake on focusing on product s form instead of benefits consumers see think there s always demand for your product o EXCESS DEMAND o Not important to consumers o Selling orientation promoting products is crucial strong ads and selling o Marketing orientation customer satisfaction focus opposite of selling orientation ideal Southwest airlines has internal marketing Environmental forces are uncontrollable organizations try to anticipate and adapt to environmental forces there is a constant change Top management o Overall goals o Lines of business o Role and importance of marketing Marketing managers decide on o 4 ps o target markets o own goals o own structure o go go o go slow o no go generations three kinds of seniors depends on health education income o seniors 13 o baby boom 26 o baby bust generation x 13 o baby boomlet our generation extreme purchasing power boomerang 27 increasing LFPRMW labor force participation for married women o time poverty o instant gratification o life simplification o changing gender roles what women want o cleanliness o control o safety o consideration o attention to detail o female only easier for Latinos to keep their culture rather than assimilating into ours biggest subculture Asians Americans most frequent shoppers brand conscious least brand loyal most concerned on appearance Black Americans most fashion conscious willing to travel to favorite store and new store most enjoyment in shopping Latinos most likely to shop as family influence of children on purchases Other demographic trends more education slow overall population growth splitting of middle class Median age in US is increasing Economic environment overall climate for marketing American economy since 1990 slow economic growth and low rates of inflation longest period of prosperity in US major chains have gone out of business less interest in shopping and decline of malls Forces of competition model intensification of competition 1 2 deregulation 3 globalization 4 scrambled retailing 5 much easier to compare prices technological improvements tends to reduce prices o cost effect o substitution effect take the place of o on line effect allows you to compare prices Culture is the broadest influence on behavior Differences in everyday behaviors o physical distances o importance of time o friendliness transfusive triad family religion and education opinion leaders are o not brand loyal o attentive to specialized media o same social class o early adapters What motivates you o Maslow hierarchy o Physiological o Safety o Social o Personal Family life cycle is the most important single social influence on consumer behavior Perception process of exposure attention reception and interpretation of sensory stimuli Perception is highly selection Personality as influence on consumer behavior Self monitoring ability to see yourself the way others see you sales people Lifestyles patterns in which people spend their time and money along with basic orientations o General overall picture of how people want to live spend money o Product specific asking about patterns in how people spend their time and money in specific product category Distinct Stages o Need recognition o Info search o Consideration of options o Purchase o Post purchase evaluation Situational factors o Physical surroundings o Social surroundings o Temporal perspective Time o Task definition Purpose o Antecedent state mood Organizational marketing vs B2B marketing 1 Buyers a buyer types people purchasing in and for various kinds of organizations b producers intermediaries governments institutions c fewer in larger in size geographically concentrated 2 4 ps o place fewer middlemen sellers go to buyers o promotion selling is critical advertising is less important o price less price sensitivity subject to negotiation government is 3 demand derived dependent fluctuates more rational 4 purchasing process takes longer lasts longer involves more people more special case formal Chapter 8 Segmentation process of identifying smaller more homogeneous segments Specialization is limited by the size of the market Segmentation alternatives o concentration small organizations o mass marketing undifferentiated o multiple segments differentiation large organizations Bases for segmentation o demographic o geographic o psychographic o behavioristic