Intro to Marketing Exam 1

Definition of Marketing
the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
Concept of exchange
people giving up something in order to receive something that they would rather have
Different orientations of marketing
Production orientation
Sales orientation
Market orientation
Societal orientation
Production orientation
a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace
Sales orientation
the ideas that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits
Market orientation
a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer’s decision to purchase a product; it is synonymous with the marketing concept
Societal orientation
the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals’ and society’s long-term best interests
Elements of an organization’s focus
Customer value
Customer satisfaction
Relationship marketing
Empowerment
Teamwork
Customer value
the relationship between benefits and the sacrifice necessary to obtain those benefits
Customer satisfaction
customers’ evaluation of a good or service in terms of whether it has met their needs and expectations
Relationship marketing
a strategy that focuses on keeping and improving relationships with current customers
Empowerment
delegation of authority to solve customers’ problems quickly— usually by the first person the customer notifies regarding a problem
Teamwork
collaborative efforts of people to accomplish common objectives
4 P’s of marketing
Product
Price
Promotion
Place
Strategic Planning
the managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities
Marketing Plan
a written document that acts as a guidebook of marketing activities for the marketing manager
Planning
the process of anticipating future events and determining strategies to achieve organizational objectives in the future
Purpose of a Marketing Plan
allows you to examine the marketing environment in conjunction with the inner workings of the business.

serves as a reference point for the success of future activities.

allows the marketing manager to enter the market-place with an awareness of possibilities and problems.

Mission Statement
a statement of the firm’s business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions
SBU
Strategic Business Unit – a subgroup of a single business or collection of related businesses within the larger organization
Competitive advantage
a set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition
Ethics
the moral principles or values that generally govern the conduct of an individual or a group
Code of ethics
a guideline to help marketing managers and other employees make better decisions
Corporate social responsibility
a business’s concern for society’s welfare
Target Market
a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the need of that group, resulting in mutually satisfying exchanges
Internal environment
Strengths & Weaknesses
Environmental factors
social, demographic, economic, technological, political and legal, and competitive.`
P.E.S.T. Analysis
Political & Legal
Economic
Sociocultural
Technological
External Environment
Opportunities & Threats (PEST Analysis)
Basic Demographic Characteristics
age, race and ethnicity, and loca-tion.
Different generations
Tweens (8-12)
Teens – spend 72 hours a week electronically
Gen Y – born between 1979 & 1994
Gen X – 1965-1978
Baby Boomers – 1946 – 1964
Global vision
recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets
Quota
a limit on the amount of a spe-cific product that can enter a country. Several U. S. companies have sought quotas as a means of protection from foreign competition.
Boycott
the exclusion of all products from certain countries or companies. Governments use boycotts to exclude companies from countries with which they have a political dispute.
Licensing
the legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge
Routine, Limited, & Extensive Searches
Routine – low involvement, short time, low cost, internal information search only, one alternative

Limited – low to moderate involvement, short to moderate time, low to moderate cost, mostly internal information search, few alternatives

Extensive – high involvement, long time, high cost, internal & external information search, many alternatives

Family life cycle
an orderly series of stages through which consumers’ attitudes and behavioral tendencies evolve through maturity, experience, and changing income and status.
Maslow’s hierarchy of needs
Self actualization needs
Esteem needs
Social needs
Safety needs
Physiological needs`
Self-actualization needs
“Be all that you can be” – Army
“I’m a PC and Windows 7 was my idea” – Microsoft
American Express – having this card is a high attainment in life
Consumer decision-making process
Need recognition
Information search
Evaluation of alternatives
Purchase
Postpurchase behavior