MARK 3000 1ST Edition Exam 1 Study Guide Lectures 1 7 Lecture 1 August 21 Introduction to Marketing 15 of the test What is marketing Marketing is everything that goes into creating capturing communicating and delivering value to customers in order to benefit the company and its stakeholders Basically it s anticipating the needs of your target market and then satisfying them through the marketing mix You re creating an immediate exchange but you want your customer to keep buying your product service Exchanges require value What is the definition of value and how is it created Value is what is given up versus what is gained Unless it s a crazy emergency situation like a hurricane both sides of the exchange have to think that they re getting value Value is created through the marketing mix Explain the marketing mix aka the 4 P s of marketing possible essay question Product is creating value by producing various offerings such as developing a restaurant menu designing clothes or coming up with political ideas Place aka supply chain management is delivering value by getting the merchandise to the right consumer at the right time Promotion is communicating value by informing persuading and reminding potential customers about your product service or message Price is capturing value by figuring out how much customers are okay with paying Marketing can be done by both individuals and organizations What are the three kinds of marketing 1 B2C marketing business to consumer 2 B2B marketing business to business 3 C2C consumer to consumer i e eBay and Etsy Define corporate orientation What are the 3 orientations and the eras they were used in Corporate orientations are the different philosophies that a company might have The first is the production philosophy 1800s early 1900s which focused on what the company could do best aka the Field of Dreams philosophy If I build it they will come Concerned with product innovation not customer needs The second is the sales philosophy 1920s 1950s which focused on aggressive and super persuasive sales tactics basically selling more of what the company already had Finally the marketing philosophy 1950s now is focused on what the customer wants while satisfying the goals of your company Today this has expanded to value based marketing which focuses on not just meeting customer needs but beating out competitors on value basically making what you can sell instead of selling what you can make Value cocreation customers collaborate with a company to create a product of service like personalized Nikes She really emphasized this point marketing orientation marketing concept making what you can sell What is customer relationship management CRM It s a set of strategies and programs that focus on identifying and building loyalty among a company s most valuable customers Why is marketing important It enhances society expands global presence strengthens channel relationships and can be entrepreneurial Lecture 2 August 26 Marketing Ethics 15 Define ethics and laws Ethics are moral principles values that guide actions Laws are the values of society that the court enforces Under these actions can be ethical and legal selling sweaters you knitted from your own pattern ethical and illegal scalping tickets unethical and legal jacking up food prices after a hurricane or unethical and illegal a pharmaceutical company saying their pill cures cancer when it s just a sugar pill Define ethical climate It s a marketing company s values that guide its decisions and behaviors What is the framework for ethical decision making 1 Identify the issue 2 Gather information and identify stakeholders 3 Think up ideas evaluate alternatives 4 Decide on an action What is corporate social responsibility It s the voluntary actions that a company takes to address the impact of its operations on its employees customers partners competitors and the community and environment Ideally companies should have socially responsible programs AND its employees should behave ethically How do you choose among alternatives when making a decision By using norms to help you determine the most sensible course of action What are the kinds of norms Societal Cultural basic set of a society s values Involves 2 kinds of tests publicity transparency test would you be okay if what you did was on the front page of the AJC moral mentor admired observer test would your idol approve General business norms what is standard practice in business customer has right to safety info and to choose and be heard no more caveat emptor buyer beware except in as is situations industry standards American Market Association Code of Ethics do no harm foster trust consumer confidence in the marketing system values of honesty responsibility etc Company norms values rules controls Personal norms family religion values personal morals moral idealism If anything bad happens then the action is unethical utilitarianism balance of good vs bad golden rule test do unto others as you would have done to you person in the mirror test can you face yourself and feel good Who is a company responsible to Companies are supposed to make a profit so they are responsible to stockholders investors and owners but they have to consider if they have responsibility besides legal to anyone else Lecture 3 August 28 Marketing Environment 20 Define the marketing environment The marketing environment is all the uncontrollable elements surrounding any company that might affect how well it does How can you keep up with the marketing environment You can employ environmental scanning which is a way to analyze those uncontrollable elements Name the two kinds of environments Immediate corporate environment company has some control over this Macro external environment no control but the company should be familiar with it Describe the macro factors Demographics population statistics on age gender ethnicity income education cultural social values and beliefs economic income and business technology innovation political legal laws competitive what other companies are doing List the generational cohorts and describe their characteristics baby boomers 1946 1964 control 80 of the country s wealth active involved in their kids and grandkids lives postponing retirement Gen X helicopter parents 1965 1976 kids are their main focus biggest massmerchandise spenders value education convenience is important Gen Y millennials 1977 2000 largest group wide range of life cycles the golden target