Marketing 310 (KU) Exam 1 Study Guide

Chapter 1
Marketing
The activity, set of instructions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
Exchange
The trade of things of value between buyer and seller so that each is better off after trade.
For marketing to occur…
1) Two or more parties with unsatisfied
2) A desire and ability on their part to have their needs satisfied.
3) A way for the parties to communicate.
4) Something to exchange.
Market
People with both the desire and the ability to buy a specific offering.
Target market
One or more specific groups of potential consumers toward which an organization directs its marketing program.
The four P’s
Product- A good, service, or idea to satisfy the consumer’s needs.
Price- What is exchanged for the product.
Promotion- A means of communication between the seller and buyer.
Place- A means of getting the product to the consumer.
Marketing Mix
The controllable factors- product, price, promotion, and place- that can be used by the marketing manager to solve a marketing problem.
Customer value proposition
The cluster of benefits that an organization promises customers to satisfy their needs.
Environmental forces
The uncontrollable forces that affects a marketing decision and consist of social, economic, technological, competitive, and regulatory forces.
Customer value
The unique combination of benefits received by targeted buyers that include quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.
Relationship marketing
Links the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit.
Marketing program
A plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.
Market segements
The relatively homogeneous groups of prospective buyers that 1) have common needs and 2) will respond similarly to a marketing action.
Evolution of the Market
Production era- 1920 and before
Sales era- 1920-1960s
Marketing concept era 1950s- present
Marketing concept
The idea that an organization should 1) strive to satisfy the needs of consumers while also 2) trying to achieve the organization’s goals.
Market Orientation
An organization with a market orientation focuses its efforts on 1) continuously collecting information about customers’ needs 2) sharing this information across departments and 3) using it to create customer value.
Customer relationship management
The process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and offering so that buyers will choose them in the marketplace.
Customer experience
The internal response that customers have to all aspects of an organization and its offering.
Social marketing concept
The view that organizations should satisfy the needs of consumers in a way that provides for society’s well-being
Chapter 2
Core values
The fundamental, passionate, and enduring principles of an organization that guide its conduct over time.
Organizational culture
The set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization.
Goals/objectives
Statements of an accomplishment of a task to be achieved, often by a specific time.
Marketing plan
A road map for the marketing actions of an organizations for a specified future time period, such as one year or five years.
Marketing dashboard
The visual display of the essential information related to achieving a marketing objective.
Marketing metric
A measure of the quantitative value or trend of a marketing action or result.
Core competencies
The skills, technologies, and resources- that distinguish it from other organizations and provide customer value.
Competitive advantage
A unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation.
Business portfolio analysis
A technique that managers use to quantify performance measures and growth targets to analyze their firm’s strategic business units as though they were a collection of separate investments.
Diversification analysis
A technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products.
Market penetration
A marketing strategy to increase sales of current products in current markets.
Market development
A marketing strategy to sell current products to new markets.
Product development
A marketing strategy of selling new products to current markets.
Diversification
A marketing strategy of developing new products and selling them in new markets.
Strategic marketing mix
The approach whereby an organization allocates its marketing mix resources to reach its target market.
SWOT
Strength
Weakness
Opportunities
Threats
Chapter 3
Environmental scanning
The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends.
Environmental forces
Social
Economic
Technological
Competitive
Regulatory
Demographics
Describing a population according to selected characteristics such as age, gender, ethnicity, income, and occupation,
Generational Cohorts
Baby boomers- 1946-1964
Generation X- 1965-1976
Generation Y- 1977-1994
Culture
The set of value, ideas, and attitudes that are learned and shared among the members of a group.
Value Conciousness
The concern for obtaining the best quality, features, and performance of a product or service for a given price that drives consumption behavior.
Consumerism
A grassroots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions.
Chapter 4
Ethics
The moral principles and values that govern the actions and decisions of an individual or group.
Caveat emptor
“let the buyer beware”
Economic espionage
The clandestine collection of trade secrets or proprietary information about competitors.
Moral idealism
A personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome.
Utilitarianism
A personal moral philosophy that focuses on “the greatest good for the greatest number” by assessing the costs and benefits of the consequences of ethical behavior.
Social responsibility
The idea that organizations are part of a larger society and are accountable to that society for their actions.
Profit responsibility
holds that companies have a simple duty: to maximize profits for their owners or stockholders.
Stakeholders responsibility
focuses on the obligations an organization has to those who can affect achievement of its objectives.
Sustainable marketing
The effort to meet today’s economic, environmental, and social needs without compromising the opportunity for future generations to meet theirs.
Green marketing
Marketing efforts to produce, promote, and reclaim environmentally sensitive products.
Sustainable development
Conducting business in a way that protects the natural environment while making economic progress.
Chapter 5
Consumer behavior
The actions a person takes in purchasing and using products and services, including the mental ans social processes that come before and after these actions.
Purchase decision process
1) Problem recognition
2) Information search
3) Alternative evaluation
4) Purchase decision
5) Post-purchase behavior
Evaluative criteria
Represent both the objective attributes of a brand (such as display) and the subjective ones (such as prestige) you use to compare different products and brands.
Perception
The process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.
Perceived risk
The anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences.
Cognitive learning
Involves making connections between two or more ideas or simply observing the outcomes of others’ behaviors and adjusting your own accordingly.
Opinion leaders
Individuals who exert direct or indirect social influence over others.
Reference groups
People to whom an individual looks as a basis for self-appraisal or as a source of personal standards.
The family life cycle
The distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors.
Roles of family memebers
(1) information gatherer
(2) influencer
(3) decision maker
(4) purchaser
(5) user
Social class
The relatively permanent, homogeneous divisions in a society into which people sharing similar values, interests, and behavior can be grouped.
Chapter 6
Business-to-business marketing
The marketing of products and services to companies, governments, or not-for-profit organizations for use in the creation of products and services that they can produce and market to others.
Organizational buyers
Those manufacturers, wholesalers, retailers, service companies, not-for-profit organizations, and government agencies that buy products and services for their own use or for resale.
NAICS
provides common industry definitions for Canada, Mexico, and the United States, which makes it easier to measure economic activity in the three member countries of the North American Free Trade Agreement (NAFTA).
Industrial
Reprocess a product or service they buy before selling it again to the next buyer.
Reseller
Wholesalers and retailers that buy physical products and resell them again without any reprocessing.
Government
The federal, state, and local agencies that buy goods and services for the constituents they serve.
Derived demand
The demand for industrial products and services is driven by, or derived from, demand for consumer products and services.
Organizational buying criteria
The objective attributes of the supplier’s products and services and the capabilities of the supplier itself.
Organizational buying behavior
The decision-making process that organizations use to establish the need for products and services and identify, evaluate, and choose among alternative brands and suppliers.
Buying center
The group of people in an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision.
Roles in the buying center
1) Users- the people in the organization who actually use the product or service.
2) Influencers- affect the buying decision, usually by helping define the specifications for what is bought.
3) Buyers- have formal authority and responsibility to select the supplier and negotiate the terms of the contract.
4) Deciders- have the formal or informal power to select or approve the supplier that receives the contract.
5) Gatekeepers- control the flow of information in the buying center.
Buy classes
1) New buy
2) Straight rebuy
3) Modified rebuy
New buy
Here the organization is a first-time buyer of the product or service.
Straight rebuy
Here the buyer or purchasing manager reorders an existing product or service from the list of acceptable suppliers, probably without even checking with users or influencers from the engineering, production, or quality control departments.
Modified rebuy
In this buying situation the users, influencers, or deciders in the buying center want to change the product specifications, price, delivery schedule, or supplier.
e-marketplaces
Online trading communities that bring together buyers and sellers in real time.
Private exchanges
Focus on streamlining a company’s purchase transactions with its suppliers and customers.
Traditional Auction
An online seller puts an item up for sale and would-be buyers are invited to bid in competition with each other.
Reverse auction
An online buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other.
Chapter 7
Leading exporters
China, United States, Germany
Countertrade
The practice of using barter rather than money for making global sales.
GDP
You should know this
Balance of trades
The difference between the monetary value of a nation’s exports and imports.
Two important things about US trading
1. Imports have exceeded exports each year. 2. The volume of both exports and imports has increased dramatically.
Five trends of global marketing
Trend 1: Gradual decline of economic protectionism by individual countries.
Trend 2: Formal economic integration and free trade among nations.
Trend 3: Global competition among global companies for global customers.
Trend 4: Emergence of a networked global market-space.
Trend 5: Growing prevalence of economic espionage.
Protctionism
The practice of shielding one or more industries within a country’s economy from foreign competition through the use of tariffs or quotas.
Tariffs
government taxes on products or services entering a country, primarily serve to raise prices on imports.
Quota
A restriction placed on the amount of a product allowed to enter or leave a country.
World Trade Organization (WTO)
A permanent institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions.
The EU
European Union
NAFTA
The North American Free Trade Agreement (NAFTA) lifted many trade barriers between Canada, Mexico, and the United States
Three types of global companies
(1) international firms
(2) multinational firms
(3) transnational firms
International firms
Engages in trade and marketing in different countries as an extension of the marketing strategy in its home country.
Multinational firms
Views the world as consisting of unique parts and markets to each part differently.
Multi-domestic marketing stratedgy
A strategy used by firms that have as many different product variations, brand names, and advertising programs as countries in which they do business.
Transnational firms
Views the world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants rather than differences.
Global Brand
A brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs.
Economic Espiange
the clandestine collection of trade secrets or proprietary information about a company’s competitors.
Cross-cultural analysis
the study of similarities and differences among consumers in two or more nations or societies.
Foreign corrupt practices act 1977
These acts make it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country.
Cultural Symbols
things that represent ideas and concepts in a specific culture.
Currency Exchange rate
the price of one country’s currency expressed in terms of another country’s currency, such as the U.S. dollar expressed in Japanese yen, euros, or Swiss francs.
Exporting
producing products in one country and selling them in another country.
indirect/ direct
Licensing
a company offers the right to a trademark, patent, trade secret, or other similarly valued item of intellectual property in return for a royalty or a fee.
exp. franchising
Joint venture
When a foreign company and a local firm invest together to create a local business.
Direct investment (biggest commitment)
which entails a domestic firm actually investing in and owning a foreign subsidiary or division.
Selling products globally
Product extension
Product adaptation
Product invention
Product extension
Selling virtually the same product in other countries is a product extension strategy.
Product adaptation
Changing a product in some way to make it more appropriate for consumer preferences or a country’s climate is a product adaptation strategy.
Product Invention
Alternatively, companies can invent totally new products designed to satisfy common needs across countries.
Dumping
When a firm sells a product in a foreign country below its domestic price or below its actual cost.
Gray market
a situation where products are sold through unauthorized channels of distribution.