MARK 3000 1ST EditionExam # 1 Study Guide Lectures: 1 - 7Lecture 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 theneeds 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 rightconsumer 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 consumer2.B2B marketing: business to business3.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 issue2.Gather information and identify stakeholders3.Think up ideas, evaluate alternatives4.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 ofthe 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, controlsPersonal 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 thisMacro/external environment: no control, but the company should be familiar with itDescribe the macro factors.Demographics: population statistics on age, gender, ethnicity, income, educationcultural/social: values and beliefs economic: income and businesstechnology: innovationpolitical/legal: laws competitive: what other companies are doingList the generational cohorts and describe their characteristics.-baby boomers (1946-1964): control 80%+ of the country’s wealth, active, involved in theirkids’ and grandkids’ lives, postponing retirement-Gen X