Marketing 101 Midterm exam

Marketing
the Anticipation, Management, and Satisfaction of Demand through the Exchange Process.

ANTICIPATION of Demand requires a firm to do consumer research in anticipation of market’s potential and consumers’ desires.

MANAGEMENT of Demand includes Stimulation (motivates consumers to want firm’s offerings), Facilitation (makes it easy to buy offerings), and Regulation (involves balancing inventory to consumer demand)

Sales era
when supply = demand and Customers resist nonessential goods and services. Selling becomes extremely important

— In Production Era, if demand exceeds supply, then you don’t need to be so marketing-focused.

–In Sales Era, “You’re gonna buy the product, but probably for the wrong reasons.”

You SELL reliability, safety, gas mileage and you MARKET sales, free options, financing

marketing concept
A consumer-oriented, market-driven, value-based, integrated, goal-oriented philosophy for a firm, institution, or person.

Example: When a firms adopts the marketing concept, it focuses on identifying and satisfying consumer needs, it studies the competitive marketplace, it offers prices that consumers believe are fair, makes sure all marketing activities are consistent with one another, and sets very clear performance goals.

Empowering employees
giving more power within the lower tiers of the hierarchy so as not to slow down the system with “i’ve gotta ask my boss, etc”
Relationship marketing
Exists when marketing activities are performed with the conscious intention of developing and managing long-term, trusting relationships with customers

Example: With relationship marketing, a firm seeks to achieve long-term repeat business with existing customers through such strategies as superior post-sales service, technical support, and special inventory management strategies. The opposite of relationship marketing is transactional marketing.

Controllable factors
Decision elements internally directed by an organization and its marketers. Some of these factors are directed by top management; others are directed by marketers.

Marketers control:
• Target market
• Marketing organization
• 4Ps
o Product
o Price
o Promotion
o Place

Uncontrollable Factors
• Consumer
• Competition
• Suppliers and Distributors
• Government
• Economy
• Technology
• Independent Media
Corporate culture
what range of behavior is acceptable in a company (how much risk, dealing w employees, dress code)
Differential advantages
what do I offer as a marketer that makes me different/favorable over a competitor? There has to be something or you’ll never succeed.
Marketing myopia
an ineffective marketing approach that is a shortsighted, narrow-minded view of marketing and its environment.

Avoid myopia by thoroughly studying and adapting to the environment.

Define your company broadly enough that you can move along with technology (railroads arent in railroad business – they’re in transportation business, publisher isn’t in book business – they’re in information conveyance business)

Scientific method
It is imperative, when collecting and analyzing marketing information, to use the Scientific Method and to be OAT:
Objective, Accurate, and Thorough
Exploratory research
aka Qualitative research, used to gain ideas and insights and/or conclusive research related to a specific problem/issue
Research design
• Who collects data?
• What information: exploratory/conclusive?
• Who or what to be studied?
• Technique to be used? (survey/observation experiment/simulation)
• Other considerations: Cost Factors? Methodology? Time Frame? When & Where?
Semantic differential
research method using “bipolar adjectives” to describe product/place
Social-ecological view of marketing
when we build a product, there are several levels of the product to look at. what resources went into making the good? (recycled, energy used) What is the environmental impact of using the product?
Planned obsolescence
marketers trying to get people to replace on a faster cycle than they should be
Consumerism
Encompasses the wide range of activities of government, business, and independent organizations designed to protect people from practices that infringe upon their rights as consumers.

Example: Several efforts on the part of government agencies, consumer protection groups, health care experts and others have been undertaken to encourage healthier eating habits among consumers.

Local content laws
Many trade restrictions are meant to encourage local employment/sponsorship.
TERM: a certain percent of the product value must be come from a specific place (generally this is labor, give someone a job reassembling cameras)
European Union
facilitates trade among member countries by establishing common currency, product standards, and the free flow of people and capital.
North American Free Trade Agreement
has created an economic community to link the U.S., Canada, and Mexico.
Standardized (global) marketing approach
A common marketing plan is used for each nation because assumes worldwide markets are more homogeneous due to better communications, more open borders, free-market economies, etc.
Bricks-and-Clicks firms
Companies that operate in both a traditional setting and on the Internet
Example: Those wanting to do business with Charles Schwab can “Call, click, or visit Schwab”
Mass customization
A process by which mass-market goods and services are individualized to satisfy a specific customer need, at a reasonable price
Objective, Accurate, Thorough
Three characteristics of scientific method: