MARK 3000: EXAM 1
42 Cards in this Set
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Marketing
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Determining the needs of a targeted group of consumers and satisfying those needs by using the 4P's of marketing to create an immediate exchange of value and a long term relationship
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Targeted Group
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A specific set of consumers who share similar wants/needs
Target Market
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4P's
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Product- physical good or service
Price- value to be exchanged Promotion- how communicated Place-where available
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Lifetime value of a customer
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the series of transactions that occur over the life of the customer.
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Marketing concept/orientation
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purpose of an organization is to satisfy consumer wants/needs while meeting organizational objectives.
the key question is "What does the consumer want?"
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Production orientation
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focus is on internal capability.
what can the firm do best?
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Sales Orientation
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focus is on aggressive sales techniques.
coupons, deep discounts, etc. erodes brand equity. how do we sell more of what we have?
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Marketing concept
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Make what you can sell rather than selling what you can make.
focus on customer demand
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societal marketing orientation
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focus is on enhancing benefits to society
proactive position to benefit society
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Influential Factors on Ethical Decision Making
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extent of problems
top management actions number of people affected political consequences social consensus probability of harm time until consequences
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Set of Norms
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Societal
General Business Company Personal
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Societal Norms
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basic set of values of society
AJC test varies from one culture to the next
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General Business Norms
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consumer has the right to safety, the right to be informed, the right to choose, and the right to be heard.
seller no longer always has the upper hand AMA code of ethics
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AMA Code of ethics
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Basic norms: first do no harm, foster trust in the marketing system, practice ethical values that will improve customer confidence in the integrity of the marketing exchange system.
basic values: honesty, responsibility, fairness, respect, openness, citizenship
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Company Norms
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what would the company say about the decision?
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Personal Values
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How do you feel about the decision?
Moral Idealism vs Utlitarianism
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Moral Idealism
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if any potential bad occurs, then the action is unethical
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Utlitarianism
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balance good vs. bad
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Morality stages
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Preconventional- scared of being caught
Conventional- follow boundaries postconventional- follow feelings of right and wrong
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Ethical Issues with 4P
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Product- planned obsolescence; target vulnerable markets; vice products
Place: obligation to serve segments that may be less profitable Price: reasonable price Promotion: puffery ok?
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Marketing Environment
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uncontrollable elements outside of any organization that may affect its performance
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Environmental Scanning
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systematic analysis of these elements
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External Environmental Factors
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Demographics
social economic technological political and legal competitive
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Tweens
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tune out commercials
access to info attitudes
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Generation Y
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impatient
family oriented diverse good time management street smart connected inquistive opinionated
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Generation X
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latchkey
time pressure, so they outsource
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Baby Boomers
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active, affluent
vigorous consumers never age
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Social Factors
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values: self sufficiency, work ethic, upward mobility, conformity, individuality, work to live.
lifestyles: how a person spends time and money, squeezed for time, moving away from one traditional lifestyle per person
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economic Factors
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ability to purchase is influence by income, business cycles/perceptions
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Business Cycles
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Prosperity (high income, employment, and production): focus on reward and conveinence
Recession (falling income, employment, and production): focus on value Recovery (rising income, etc): buy now, better times are coming Depression: focus on basic needs
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Federal Legislation
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Protect competitive environment: Clayton Act, Sherman Act, Federal Trade Commission Act
Protect false advertising: Wheeler-Lea Act Protect pricing: Robinson-Patman Act
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Regulatory Agencies
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Federal Trade Commission: prevents unfair competition
Consumer product safety commission: protects safety in and around homes Food and Drug Administration: enforces safety regulation
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Types of Competition
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Direct Competition (brand): similar/same product
indirect (product): substitutable items that perform the same function competition for discretionary spending: other uses of money
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Consumer Behavior
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processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods/services, and includes factors that influence purchase decisions.
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Purchase Involvement
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the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior.
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Low Involvement Purchases
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low in price
purchased frequently little risk little interest in the purchase use routine response behavior Marketers create brand loyalty, use in store cues, and enforce the "wrong decision"
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High Involvement purchases
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social, financial, or performance risk
purchase is important see differences in alternatives
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Decision Making process
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need recognition
information search evaluation of alternatives purchase post purchase behaviors
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Market
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people or organizations with wants, needs, willingness, and ability to buy
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Market Segment
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a subgroup of people that share characteristics that cause them to have similar product needs
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Market Segmentation
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the process of dividing the market into meaningful, relatively similar, identifiable segments or groups
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Culture
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values, languages, myths, customs, rituals, laws, material artifacts
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MARK 3000: EXAM 1