BUS M 300 1nd Edition Exam 1 Study Guide Lectures 1 6 Lecture 1 August 28 Chapter One Creating Customer Relationships and Value through Marketing What is marketing Marketing is the activity for creating and delivering offerings that benefit the organization its stakeholders and society It is the process of planning and executing the conception and pricing promotion and distribution of ideas goods and services to create exchanges that satisfy individual and organizational objectives It seeks to discover and satisfy consumer s needs What ISN T marketing Fraud and promotion are sometimes confused as marketing They are NOT marketing What is customer value creation CVC and what three business functions fall under it CVC is the unique combination of benefits received by target buyers that include quality convenience on time delivery and both before sale and after sale service at a specific price The three business functions under CVC are product development customer relationship management and supply chain management Product development is the design and implementation of new products services and the management of existing products Customer relationship management is customer attraction and retention communication of information to customers and the development of customer relationships Supply chain management is the selection and management of suppliers the distribution channel and channel pricing What are some elements that influencing marketing Some elements are economic environment political environment technical environment social cultural environment and competitive environment What are the 4 P s of the marketing mix They are product price place and promotion Product is a good service idea place or person Price refers to assignment of value Place is the availability of product while promotion is activities to inform consumers Know the general marketing model General marketing model 1 2 3 4 5 6 Marketing research trying to determine opportunities Customer needs The offering product place price promotion used as levers for success Retaining customers cheaper to keep Attract new customers 5 times more expensive Financial outcomes sales market share profit stock price cash flow Define the following vocab Product orientation marketing products not selling them gets product to market in most cost effective manner possible Selling concept movement of products generates profits for the firm by moving products and services Marketing orientation focusing organizational efforts to collect and use information about customer needs to create customer value generates profits for the firm by creating long term relationships with customers Name and describe the six different types of marketing The six different types of marketing are services places ideas organization event and person Service marketing is building sales and profit for a dry cleaner dentist or lawyer Place marketing is attracting people to a particular place Idea marketing is cultivating support for an idea Organization marketing is cultivating support for an organization Event marketing is building interest in rock concert or art auction Person marketing is building interest in a candidate or celebrity What four factors are needed for marketing to occur The four factors are that at least two or more parties with unsatisfied needs must exist the desire and ability to satisfy those needs a way for the parties to communicate and something to exchange What is a target market A target market is one or more specific groups of potential consumers toward which an organization directs its marketing program What are environmental forces They are uncontrollable social economic technological competitive and regulatory forces that affect the result of a marketing decision Lecture 2 September 4 Chapter Four Understanding Consumer Behavior What is consumer behavior Consumer behavior is the actions a person takes in purchasing and using products and services Know the consumer purchase decision process The consumer purchase decision process is five stages and it is not always linear It includes problem recognition information search alternative evaluation purchase decision and post purchase behavior Problem recognition perceives a difference between a person s ideal and actual situations big enough to trigger a decision Alternative evaluation is comparing and contrasting different products and brands Purchase decision is a simultaneous evaluation of product attributes and seller characteristics Post purchase behavior is when a consumer compares purchases with expectations and is either satisfied or not What are the different types of problem solving They are extended problem solving limited problem solving and routine problem solving Extended problem solving involves all five stages of the consumer purchase decision process It is high involvement purchases like cars college and house Limited problem solving is when consumers typically seek some information or rely on friends to help evaluate alternatives like where to go to dinner Routine problem solving is when consumers recognize problem make decision spend little effort seeking external information and evaluating alternatives like buying a soda Define the following vocabulary Evoked set brands actually considered during a choice process Evaluative criteria represent both the object attributes of a brand and the subjective ones used to compare different products and brands Consideration set the group of brands that one would consider from among all the brands of which they are aware in the product class Heuristics mental shortcuts to simplify a decision Brand loyalty repeated purchasing based on a conscious decision to continue buying a specific brand What does an evoke set allow consumers to do It allows them to compare products and make decisions based on their needs and wants Referring to the psychological influence needs have on consumers where do marketers aim when trying to make a sale They aim at the self actualization section of the hierarchy of needs triangle What are some situational influences and social influences on consumer decisions Some situational influences are the physical environment time and antecedent The physical environment includes the d cor smells and temperature Time refers to the availability to make a decision and antecedent is a consumer s mood or amount of cash on hand Social influences include subculture social class and opinion leaders Subculture are