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Process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers in a dynamic environment
Marketing focuses on _________, the purchasers of orgs' products; focal point of all marketing activities
Essence of marketing
________ is to develop satisying exchanges from which both customers and marketers benefit.
Target Market
A specific group of customers on whom an org focuses its marketing efforts. Can be relatively small or large, some companies have diff. target markets for each individual product.
Marketing mix
The four marketing activities/variables [products, distribution, promotion, and pricing] that a firm can control to meet the needs of customers within its target market
Marketing mix
Before developing a ________ ___, marketers must collect specific, up-to-date info about their target market. This determines what type and how much of each element is used.
Product variable
The aspect of the marketing mix that deals with researching customers' products wants and designing a good, service, or idea that satisfies those wants.
A good, a service, or an idea
A physical entity you can touch
Application of human or mechanical effort to provide an intangible benefit
Concepts, images, philosophies, and issues
Product variable
Modifying packaging and brand names and decisions regarding warranty and repair services
Distribution variable
To reach and keep customers, products must be available at the right time and in convenient locations; make products available in desired quantities to as many customers as possible; internet access and e-commerce have greatly affected this
Promotion variable
Relates to activities used to inform individuals or groups about an org and its products; can be used to increase awareness about a new or existing product; can educate people about product usage or features or to take a stance on a political or social issue
Pricing variable
Relates to decisions and actions associated with establishing pricing objectives, policies, and determining product pricing; often used as a competitive tool; higher prices can establish a products reputation/image
The provision or transfer of goods, services, or ideas in return for something of value
In order for ________ to take place, these 4 conditions must exist: 1. 2+ individuals or groups must participate 2. each party must possess something of value 3. each party must be willing to ""give up"" 4. must be able to communicate
A customer will look for a/an ________ product or organization if dissatisfied with one's goods and services.
Relationship marketing
Establishing long-term, mutually satisfying buyer-seller relationships; customer becomes reliant on the company which increases confidence; company benefits from new, deeper understanding of customers needs
Marketing concept
A managerial philosophy that an org should try to satisfy customers' needs through a coordinated set of activities that also allows the org to achieve its goals; an org must satisfy its customers objectives and its own; important to consider current customers needs and long-term needs of …
Marketing orientation
An org wide commitment to researching and responding to customer needs; orgs found they must first determine what customers want and then produce it rather than make products and persuade customers they need it.
Product orientation
The Industrial Rev was in full force, electricity, rail transportation, mass production made it possible to manufacture products more efficiently; consumer demand for manufactured goods was strong
Sales orientation
Business people believe the most important marketing activities were personal selling, advertising, and distribution
To ________ the marketing concept, an org must accept some general conditions and recognize/deal with several problems; Demands support from top management, managers, and staff at all levels; First establish an info system to discover customer's needs and coordinate its activities w/in…
A customers' subjective assessment of benefits relative to costs in determining the worth of a product; marketing mix can be used to enhance perceptions of _____. customer _____ = customer benefits - customer costs
Anything a buyer receives in an exchange
Anything a buyer must give up to obtain the benefits provided by the product
Marketing management
Process of planning, organizing, implementing, and controlling marketing activities to facilitate exchanges effectively and efficiently.
Systematic process of assessing opportunities and resources, determining marketing objectives, and developing a marketing strategy and plans for implementation and control (one part of marketing management)
__________ marketing activities involves developing the internal structure of the marketing unit (one part of marketing management)
Marketing process that consists of establishing performance standards, comparing actual performance w/ established standards, and reducing the diff. bt desired and actual performance (one part of marketing management)
About one-half of a buyers' dollar goes toward marketing _____.
Importance of marketing to business and the economy
Businesses must sell products to grow and survive, and marketing can help sell products. In turn, financial resources generated from sales can be used to develop innovative products. Marketing activities are essential to the health ad ultimate survival of the global economy.
Global economic growth
Advances in technology, along with falling political and economic barriers and the universal desire for higher standard of living, have made marketing across national borders commonplace.
Responsible marketing
Can promote the welfare of customers and society; By managing concern about the impact of marketing on society, a firm can protect the interests of the general public and the natural environment.
Environment is always changing
Environmental scanning
The process of collecting info about forces in the mktg environment; observation, secondary sources (business, trade, govt, and general interest publications, and mktg research); internet very useful tool for this, must know how to use info obtained
Environmental analysis
The process of assessing/interpreting the info gathered through environmental scanning; should be able to identify threats and opportunities linked to environmental changes
Passive and reactive
Responding to environmental forces by accepting forces as uncontrollable (org type and situation determines which response is better)
Responding to environmental forces by attempting to influence and shape the environment (org type and situation determines which response is better)
Orgs mktg products that are similar to or can be substituted for a marketer's product in the same geographic area
One type of competition where firms that market products with similar features and benefits to the same customers at similar prices (most significant)
One type of competition where firms that compete in the same product class, but whose products have diff. features, benefits, and prices
One type of competition where firms that provide very diff. products that solve the same problem or satisfy the same basic customer need
Total budget
One type of competition where firms that compete for limited financial resources of the same customers
A market structure in which an org offers a product that has no close substitutes, making the org the sole source of supply (Type of competitive structure) Ex: local cable and utilities
A competitive structure in which a few sellers control the supply of a large proportion of a product; each seller considers the reaction of the other sellers to changes in mktg activity (Type of competitive structure) Ex: General Mills
Monopolistic competition
A market structure in which a firm has many potential competitors attempt to develop a mktg strategy to differentiate its product in order to compete (Type of competitive structure) Ex: Levi Jeans, well known and recognizable
Pure competition
A market structure characterized by an extremely large number of sellers, none of them strong enough to significantly influence price or supply; easy entry into market, homogeneous products (Type of competitive structure) Ex: unregulated farmers market with local growers
_________ competition guides marketers in developing competitive advantages and aids them in adjusting current market strategies and planning new ones; price is most commonly (watched) variable
Business cycle
A pattern of economic fluctuations that has 4 stages related to economic conditions
A stage of the business cycle characterized by: low unemployment relatively high total income high buying power (if inflation rate stays low)
A stage of the business cycle characterized by: unemployment rises total buying power declines consumer and business spending stifling
A stage of the business cycle characterized by: extremely high unemployment very low wages total disposable income is at a minimum consumers lack confidence in economy
A stage of the business cycle characterized by: economy moving from Recession toward Prosperity
Buying Power
Resources such as money, goods, and services that can be traded in an exchange situation
Inflationary Period
Buying power is low because prices are rising
Amount of money received through wages, rents, investments, pensions, and subsidiary payments for a given period
Disposable Income
After-tax income; determined by: total amt of income, wage levels, rate of unemployment, interest rates, dividend rates, and *when taxes rise, this declines - when taxes fall, this increases
Discretionary Income
Disposable income available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter.
Accumulation of past income, natural resources, and financial resources
Economic Forces
Economic conditions, buying power, willingness to spend
Political Forces
-Legal and regulatory forces -Procompetitive legislation (Clayton Act, Sherman Antitrust Act, Wheeler-Lea Act, Robinson-Patman Act) -Consumer protection legislation (prohibits sale of flammable fabrics, consumer safety) -Self-regulatory forces (BBB, Nat'l Advertising Review Board) -Re…
Marketing Environment
Economic, political, technological, sociocultural, competitive, examining/responding
Willingness to buy
An inclination to buy because of expected satisfaction from a product, influenced by the ability to buy, and numerous psychological and social forces; Other affecting factors: expectations about future employment, income levels, price, family size, general economic conditions, and expec…
Self-regulatory forces
"Businesses try to regulate themselves by establishing ethic codes Advantages: establishment and implementation usually less expensive and guidelines generally more realistic and operational; effective programs reduce need to expand govt bureaucracy Limitations: lack tools to enforce gu…
Application of knowledge and tools to solve problems and perform tasks more efficiently; Impact helps marketers become more productive, lower prices, and improve ability to deliver
Technology Assessment
A procedure for anticipating the effects of new products and processes on a firm's operation, other business orgs, and society
Sociocultural Forces
The influences in a society and its cultures that change people's attitudes, beliefs, norms, customs, and lifestyles; Determines what, where, how, and when people buy products
Demographic and diversity characteristics
age, gender, race, income, martial status, ethnicity; number of elderly and singles is rising - buy smaller amt of food, where as families buy in bulk; multicultural nature is increasing and the young are having kids (another baby boom)
Culture values
The way society views themselves affects the way a product is branded, priced, promoted, and distributed -more casual workplace, more concern with health/exercising, major source is family, concerns for natural environment, whether 1 or 2 parents are working, single parent families
Organized efforts by individuals, groups, and orgs to protect their rights; To achieve their objectives, consumers and their advocates write letters to companies, lobby govt agencies, broadcast public service announ., and boycott companies whose activities they deem irresponsible
Social responsibility
An org's obligation to maximize its positive impact and minimize its negative impact on society; total affect of all mktg decisions on society
Dimensions of Social Responsibility
Mktg citizenship, pyramid of corporate social resp. (economic, legal, ethical, and philanthropic), mktg ethics, cause-related mktg
Marketing citizenship
The incorporation of economical, legal, ethical, and philanthropic concerns into a firm's mktg strategies; Describes how one company's efforts to improve its performance affected its relationship with stockholders and employees
Pyramid of Corporate Social Responsibility
1. Economic - to be profitable is the foundation on which everything else rests 2. Legal - to obey the law, law is society's codification of right and wrong, company must play by the rules 3. Ethical - company must have obligation to do what is right, just, and fair, and must avoid harm…
Marketing Ethics
Principles and standards that define acceptable mktg conduct as determined by various stakeholders
Cause-related marketing
The practice of linking products to a particular social cause on an ongoing or short-term basis
Social Responsibility Issues
Natural environment, consumerism, diversity, community relations
Natural Environment
Consumers insist not only quality of life, but also healthful environment so they can maintain high standard of living during their lifetimes; Marketers demonstrate social responsibility through programs designed to protect and preserve the _______ ___________.
Employees and consumers pressing for greater awareness and acknowledgement of demographic and lifestyle ________ issues, which are increasing in importance for orgs as ________ in the work force and guerilla population grows The more closely the workforce matches the population, the bett…
Community Relations
society anxious to have marketers contribute to its well-being, wishing to know what marketers do to help solve social problems
Green Marketing
The specific development, pricing, promotion, and distribution of products that do not harm the natural environment; Marketers believe orgs should work together to protect and preserve this by implementing goals such as: 1. eliminate the concept of waste 2. reinvent the concept of a p…
Consumer bill of rights
Right to safety, right to be informed, right to choose, right to be heard
Marketing Ethics
Principles that define acceptable conduct in mktg; The study of ________ _____ helps us recognize, understand, and resolve conflicts of ethical nature; Legal ramifications of some issues and problems must be resolved through litigation
Ethical Issue
An identification problem, situation, or opportunity requiring a choice among several actions that must be evaluated as right or wrong
Product Issue
Mktg mix ethical issue that arises when marketers fail to disclose risks associated with product or info regarding the function, value, or use of product
Promotion Issue
Mktg mix ethical issue that arises when marketers use false and misleading advertising and manipulative or deceptive sales promos, tactics, or publicity efforts
Marketing Strategy
Selection and analysis of a target market and the creation and maintenance of an appropriate mktg mix that will satisfy the people in the target market
Pricing Issue
Mtkg mix ethical issue that arises when orgs employ such tactics as price fixing, predatory pricing, and failure to disclose the full price associated with a purchase
Distribution Issue
Mktg mix ethical issue that involves relationships among producers and mktg middlemen or intermediates; Manipulating a products availability for purposes of exploitation and using coercion to force intermediates to behave in a specific manner are serious ___________ _____(s).
Ethical Decision-Making Process
Individual factors, organizational factors, and opportunity
Individual factors
People try to resolve ethical conflicts in their daily lives, they often base their decision on their own values and principles of right or wrong
Organizational factors
Corporate culture (set of values, beliefs, goals, etc shared by members of an org); Chief executive officer or mktg sets the ethical tone for entire org; Org pressure plays a key role in creating ethical issues
Codes of Conduct
Formalized rules and standards that describe what the company expects of its employees; provide guidelines that enable employees to achieve organizational objectives in an ethical, acceptable manner
Ethics officer
"High-ranking person in the org who is known to abide by legal and common ethical standards; Job includes: provide advice about issues and identify potential ethical risks, draft code of conduct, trainemployees, create and maintain confidential system to answer questions about issues, ta…
Steps to Ethical Compliance
1. establish codes of conduct 2. appoint high level compliance manager (ethics officer) 3. take care in delegating authority 4. institute training program and communication system 5. monitor and audit for misconduct 6. enforce and discipline 7. revise program
Marketing Performance
Long-term value of conducting business in a socially responsible manner far outweigh short-term costs which improves _________ ___________; Being socially resp. and ethical provides good benefits: enhance public reputation, increase in market share, cost savings, profits

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