MKTG 409Exam 1 Study Guide: Lectures 1-10Lecture 1Introduction to Marketing--Marketing is the process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers and develop and maintain favorable relationships with stakeholders in a dynamic environment--Companies can now engage in more instantaneous marketing via social media; more traditional forms have a time lapse, making them less effectiveEx. Database marketing: collect data on consumers and use it to project trends and make product more enjoyableLecture 2Chapter 1, Marketing Approach to Business--Give the customer what he wants; there are other businesses out there that will if you won’t--Customers don’t buy things; they buy perceptions (things that make themselves feel better, or that solve a problem)--Competition: if you can’t compete with price, then compete with quality--Marketing Mix: Price, Product, Promotion, Place/Distribution; all are interrelated and can becontrolled by marketers (know the details of each)1. Product: a good, service, or idea2. Place/Distribution: make products available in quantities desired (different levels of channel of distribution)3. Promotion: activities to inform people about the organization and its products4. Price: decisions and actions associated with establishing price; policies determining prices5. Outside control of marketers: competitive forces, sociocultural forces, technological forces, legal and regulatory forces, political forces, and economic forces--True customers/returning customers=investments in your business (satisfied)--Businesses are not afraid to spend money to track marketing trends (spend money to get money); long-term approach; must make a profit to survive--Treat employees well, so they treat customers well, so everyone’s happy--Exchange: the customer exchanges money, time, and effort for a product or service (the provision or transfer of goods, ideas, or services in return for something of value); customermust have a willingness to buy, as well as the means to buy the product/service/idea; supplier must have product/service/idea--Target Market: the purchasers of organizations’ products; the focal point of all marketing activities; the group toward whom a company focuses its marketing efforts--Marketing Strategy: some companies are reactive to the marketing environment, others try to influence it--Production: the creation of a product; sales: the process of getting the product to the customer; marketing business: everything from the production to the sale of the goodLecture 3Chapter 1 continuedDr. McDaniel came to talk to the class about the MS in marketing program and about a Study Abroad, which included trips to 7 or 8 European countries (such as England, France, Monte Carlo, Italy, Austria, Switzerland, and Germany); touted as super fun, get to visit many famous businesses and present your own projects on them; talked about Fat Tire Bike ToursChapter 1 continued--Marketing Concept: a philosophy that an organization should try to provide products that satisfy customers’ needs through a coordinated set of activities that also allows the organization to achieve its goals1. First stage (1850-1920s): Production orientation; companies made goods and the public bought what they could get (much demand)2. Second stage (1920s-1960s): Sales orientation; companies focused on selling the goods to the public (much demand)3. Third stage (1960s-current): Marketing orientation; companies attempt to produce goods that the public wants (much supply, greater competition)--Relationship marketing: create a relationship with the customer and with the stakeholders (personalize experience/get to know customer)--Customer Relationship Management: establishing long-term, mutually satisfying buyer-seller relationships (relations with existing customers)Vale Corp (video): used database marketing to make experience more enjoyable for returning/existing customers --Concept of Value: customer benefits minus customer cost (value≠ price)Lecture 4Chapter 3, The Marketing Environment--Environmental Scanning: the process of collecting pertinent information about the forces in the marketing environment via observation of different sources--Environmental analysis: synthesizing the data gathered in scanning into usable data that can be applied to marketing strategy--Types of competition: four different types1. Brand competitors: same basic product; most marketers concentrate efforts on this type of competition (ex. Coke and Pepsi)2. Product competitors: two products that satisfy the same need (ex. Coke and bottled water or juice)3. Generic competitors: something offered from a very different source that satisfies the same need (ex. Coke or tap water, or restaurant vs. frozen food)4. Total Budget competitors: anything else that the discretionary income could be spent on (ex. Coke or toy; a cruise or a Rolex)--Disposable income is income after taxes have been subtracted; discretionary income is disposable income after the basic necessities of food, clothing, and shelter have been subtracted--Competitive Structures/Market Structures: also four different types1. Pure competition: no one has enough influence to really change the market (ex. agricultural products) 2. Monopoly: you can sell the same amount at any price; no one else is even competing (ex. power companies)3. Oligopoly: mostly stable, homogenous or differentiated products (ex. cars)4. Monopolistic Competition: products differentiated, but with many substitutes (ex. jeans)--Buying power: resources, such as money, goods, and services, that can be traded in exchange; components: disposable and discretionary income, credit, and wealth--Economic cycle: prosperity, recession, depression, recovery--Willingness to spend: an inclination to buy because of expected satisfaction from a product, influenced by the ability to buy and numerous psychological and social forces--Pro-Competitive Legislation: The Sherman Act and the Robinson-Patman Act protects from monopolies and price discrimination, respectively--Consumer Protection Legislation: Federal Trade Commission Act makes companies disclose product information to consumers as well as prevent price discrimination--Self Regulation: ex. Better Business Bureau; a company or group of companies imposes restrictions on itself before the government has to; generally less strict than government regulation, but no real