Marketing 1-5

Production
-actually making goods or performing services
Customer Satisfaction
-extent to which a firm fulfills a customer’s needs, desires, and expectations
Innovation
-the development and spread of new ideas, goods, and services
-plays a part in economic growth and development
Marketing
-performance of activities that seek to accomplish an organization’s objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to customer or client
Pure subsistence economy
-each family unit produces everything it consumes
-no need to exchange goods and no marketing involved
Macro-marketing
-social process that directs an economy’s flow of goods and services from producers to consumers in a way that effectively matches supply and demand and accomplishes the objectives of society
Economies of Scale
-as a company produces larger numbers of a particular product, the cost of each unit of the product goes down
Universal functions of marketing
-buying, selling, transporting, storing, standardization and grading, financing, risk taking, and market information
Buying function
-looking for and evaluating goods and services
Selling function
-involves promoting the product
Transporting function
-movement of goods from one place to another
Storing function
-involves holding goods until customers need them
Standardization and grading
-involves sorting products according to size and quality
-reduces need for inspection and sampling
Financing
-provides necessary cash and credit to produce, transport, store, promote, sell, and buy products
Risk taking
-involves bearing the uncertainties that are part of the marketing process
Market information function
-involves collection, analysis, and distribution of all the information needed to plan, carry out, and control marketing activities, whether in the firm’s own neighborhood or in a market overseas
Intermediary
-someone who specials in trade rather than production
Collaborators
-forms that facilitate or provide one or more of the marketing functions other than buying or selling
E-commerce
-exchanges between individuals or organizations (and activities that facilitate these exchanges) bases on application of information technology
Economic system
-the way an economy organizes to use scarce resources to produce goods and serves and distribute them for consumption by various people and group son the society
Command economy
-government officials decide what and how much is to be produced and distributed by whom, when, to whom, and why
Market-directed economy
-individual decisions of the many producers and consumers make the macro-level decisions for the whole economy
Simple trade era
-time when families traded or sold their “surplus” output to local distributors
Production era
-time when a company focuses on production of a few specific products, perhaps because a few of these products are available in the market
-“If we an make it, it will sell”
Sales era
-time when a company emphasizes selling because of increased competition
Marketing department era
-a time when all marketing activities are brought under the control of one department to improve short-run policy planning and to try to integrate the firm’s activities
Marketing company era
-time when, in addition to short-run marketing planning, marketing people develop long-range planes and the whole company effort is guided by the marketing concept
Marketing concept
-an organization aims all of its efforts at satisfying its customers at a profit
-customer satisfaction, total company effort, profit
Production orientation
-making whatever products are easy to produce and then trying to sell them
Marketing orientation
-trying to carry out the marketing concept, tries to offer customers what they need
Tiple bottom line
-measures an organization’s economic, social, and environmental outcomes
-a measure of long-term success
Customer value
-difference between the benefits a customer sees from a market offer and the costs of obtaining those benefits
Micro-macro dilemma
-what is good for some firms and consumers may bot be good for society as a whole
Social responsibility
-firm’s obligation to improve its positive effects on society and reduce its negative effects
Marketing ethics
-moral standards that guide marketing decisions and actions
Marketing management process
-process of planning marketing activities, directing the implementation of the plans, and controlling these plans
Strategic (management) planning
-managerial process of developing and maintaining a match between an organization’s resources and its market opportunities
Marketing strategy
-specifies a target market and related marketing mix
Target market
-fairly homogenous (similar) group of customers to whom a company wishes to appeal
Marketing mix
-controllable variables the company puts together to satisfy this target group
Target marketing
-says that a marketing mix is tailored to fit some specific target customers
Mass marketing
-the typical production-oriented approach
-vaguely aims at “everyone” with the same marketing mix
The four P’s
-product
-place
-promotion
-price
-customer is not part of the 4 P’s
Channel of distribution
-any series of firms (or individuals) that participate in the flow of products from producer to final user or consumer
Personal selling
-involves direct spoken communication between sellers and potential customers
Customer service
-a personal communication between a seller and a customer who wants the seller to resolve a problem with a purchase
-often key to building repeat customers
Mass selling
-communicating with large numbers of customers at the same time
Advertising
-main form of mass selling
-any pairs form of non personal presentation of ideas, goods, or services by an identified sponsor
Publicity
-any unpaid for of no personal presentation of ideas, goods, or services
-including getting favorable coverage in newspaper stories or on television
Sales promotion
-refers to those promotions activities (other than advertising, publicity, and sales) that stimulate interest, trail, or purchase by final customers or others in the channel
Marketing plan
-written statement of a marketing strategy and the time-related details for carrying out the strategy
Implementation
-putting marketing plans into operation
Operations decisions
-short-run decisions to help implement strategies
-many many be needed
Marketing program
-blends all the firm’s marketing plans into one “big” plane
Customer lifetime value
-total stream of purchases that a customer could contribute to the company over the length of the relationship
Customer equity
-expected earnings stream (profitability) of a firm’s current and prospective customers over one period of time
Breakthrough opportunities
-opportunities that help innovators develop hard-to-copy marketing strategies that will be very profitable for a long time
Competitive advantage
-means that a firm has a marketing mix that the target market sees as better than a competitor’s mix
SWOT analysis
-identifies and lists the firm’s strengths, weaknesses, opportunities, and threats
Differentiation
-means that the marketing mix is distinct from what is available from a competitor
Market penetration
-means trying to increase sales of a firm’s present products in its present market, probably through a more aggressive marketing mix
Market development
-trying to increase sales by selling present products in new markets
Product development
-offering new or improved products for present markets
Diversification
-moving into totally different lines of business, perhaps entirely unfamiliar products, markets, or even level sin the production-marketing system
Mission Statement
-sets out the organizations basic purpose for being
-makes objectives clear from the start so different angers don’t hold unspoken and conflicting objectives
Competitive Environment
-affects the number and types of competitors the marketing manager faces and how they may behave
Sustainable competitive advantage
-marketing mix that customers see as better than a competitor’s mic an cannot be quickly or easily copied
-marketing managers should actively seek this
Competitor analysis
-organized approach for evaluation the strengths and weaknesses of current or potential competitors’ marketing strategies
Competitive rivals
-closest competitors
-marketing managers usually narrow focus of their analysis on them
Competitor matrix
-organized table that compares the strengths and weaknesses of a company with those if its competitive rivals
-useful tool for organizing the competitor analysis
Economic environment
-macro-economic factors (including national income, economic growth, and inflation) that affect patterns of consumers and business spending
Technology
-application of science to convert an economy’s resources to output
Nationalism
-emphasis on a country’s interests before everything else
-strong sentiments affect how mark-marketing works
North American Free Trade Agreement (NAFTA)
-lays out plan to reshape the rules of trade among the United States, Canada, and Mexico
Cultural and social environment
-affects how and why people live and behave as they do, which affects customers buying behavior and eventually the economic, political, and legal environments.
-literacy rates affect promotion
-technology adoption rates are different across the globe AKA Cell Phones
-different rate of growth in different regions of USA
-changes in cultural values and social attitudes come slowly, so should be anticipated
Gross domestic product (GDP)
-the total market values of all goods and services provided in a country’s economy in a year by both residents and nonresidents of that country
-measure of national income
Gross national income (GNI)
-measure similar to GDP, but doesn’t include income earned by foreigners who own resources in that nation
-measure of national income
Senior citizens
-people over 65
-increase sure to better health care and American’s living longer lives
Baby boomers
-born between 1946-1964
-powerful demographic force because of their large numbers
ex) tourism, health care, and financial searches are morte important to middle-aged and retired
Generation X
-Gen X, born immediately following baby boom 1965-1977
-smaller in numbers than baby boomers, better educated
Generation Y
-Millennials, born 1978-1994
-echo boom, when baby boomers had kids
-attractive market for housing, appliances, furniture, and electronics
Generation Z
-born since 1995
-still young so emerging values are speculative
-born into world of technology and ethnically diverse so more accepting
-realistic worldview vs optimistic, prefer brands with long-term value/safety/security
Sustainability
-idea that its important to meet present needs without compromising the ability of future generations to meet their own needs
Market
-group of potential customers with similar needs who are willings to exchange something of value with sellers offering various goods or services, way of satisfying those needs
Generic market
-market with broadly similar needs and sellers offering various, diverse, ways of satisfying those needs
Product-market
-market with very similar needs and sellers offering various close substitute ways of satisfying those needs
Market segmentation
-two-step process of 1) naming broad product-markets and 2) segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes
Segmenting
-aggregating process closeting people with similar needs into a “market segment”
Market segment
-relatively homogenous group of customers who will respond to a marketing mix in a similar way
Single target market approach
-segmenting the market and picking one of the homogenous segments as the firm’s target market
Multiple target market approach
-segmenting the market and choosing two or more segments, and then treating each as a separate target markets needing a different marketing mix
Combined target market approach
-combining two or more submarkets into one larger target market as a basis for one strategy
Combiners
-try to increase the size of their target markets by combining two or more segments
Segmenters
-aim at one or more homogenous segments and try to develop a different marketing mix for each segment
Qualifying dimensions
-those relevant to including a customer type in a product-market
Determining dimensions
-those that actually affect the customer’s purchase of a specific product or brand in a product-market
Clustering techniques
-try to find similar patterns within sets of data
Customer relationship management (CRM)
-variation of the clustering approach
-where the seller fine-tunes the marketing effort with information from a detailed customer database
Positioning
-refers to how customers think about proposed or present brands in a market
Economic buyers
-people who know all the facts and logically compare choices to get the greatest satisfaction from spending their time and money
-economists assumer all consumers are this
Economic needs
-concerned with making the best use of a consumer’s time and money, as the consumer judges it
-what the economic-buyer theory says that consumers decide what to buy based on
Discretionary income
-what is left of income after paying taxes and paying for necessities
-where a family’s purchase of “luxuries” comes from
Needs
-the basic forces that motivate a person to do something
Wants
-“needs” that are learned during a person’s life
Drive
-a strong stimulus that encourages action to reduce a need
Physiological needs
-concerned with biological needs: food, liquid, rest, and sex
Safety needs
-concerned with protection and physical well-being involving health, financial security, medicine, and exercise.
Social needs
-concerned with love, friendship, status, and esteem (things that involve a person’s interaction with others)
Personal needs
-concerned with an individuals need for personal satisfaction, unrelated to what others think or do
Perception
-how we gather and interpret information from the worlds around us
-consumers select varying ways to meet their needs sometimes bc of differences in perceptions
Selective exposure
-our eyes and minds seek out and notice only information that interests us
Selective perception
-we screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs
Selective retention
-we remember only what we want to remember
Learning
-a change in a peron’s though process caused by prior experience
Cues
-products, signs, ads, and other stimuli in the environment
-makes consumer chose different responses
Response
-effort to satisfy a drive
Reinforcement
-the learning process occurs when the response is followed by satisfaction, reduction in the drive
Attitude
-person’s point of view toward something
Belief
-a person’s opinion about something
Expectation
-an outcome or event that a person anticipates or looks forward to
-attitudes and beliefs combine to form this
Trust
-confidence a person has in the promises or actions of another person, brand, or company
Psychographics or Lifestyle analysis
-the analysis of a person’s day-to-days pattern of living as expressed in the person’s activities, interests, and opinions (AIO’s)
Empty nesters
-people whose children are gown and who are now able to spend their money in other ways
Social class
-group of people who have approximately equal social positions as viewed by others in the society
Reference group
-refers to the people to whom an individual looks when forming attitudes about a particular topic
Opinon leader
-person who influences others
Culture
-whole set of beliefs, attitudes, and ways of doing things of a reasonably homogenous set of people
Extensive problem solving
-consumers use this when they put much effort into deciding how to satisfy a needs, as is likely for a completely new purchaser or to satisfy an important need
Limited problem solving
-used by consumers when some effort is required in decided the best way to satisfy a need
Routinized response behavior
-consumers uses this when he or she regularly sleets a particular way of satisfying a need when it occurs
Low-involvement purchases
-purchases that have little importance or relevance for the customers
-typical for routinized response behavior
Dissonance
-feeling of uncertainty about whether the correct decision was made
-buyers have second thoughts and wonder if they made the correct decision after a purchase
Adoption process
-the steps individuals go through on the way to accepting or rejecting a new idea
-when consumers face a really new concept and their previous experience isn’t relevant
1) awareness: comes to know about product but lacks details, may not know how it works or what it does
2) interest: becomes interested, gathers general information and facts about product
3) evaluation: begins to give product a mental trial, applying it to her situation
4) trial: buy the product to experiment with, if to expensive may never reach this phase
5) decision: decides to either adopt or reject, reinforcement leads to adoption
6) confirmation: adopter continues to rethink decision and searches for support on decisions, aka further reinforcement