Marketing 360 WSU Exam 1

What is 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.” (4 “p’s = Product, Promotion, Place, Price)
Marketing in Sum
Is about meeting needs, and delivering value to all people affected by a transaction.
Benefit
The outcome a customer desires, mainly meets their need/wants
Need
Difference between actual and desired state
Want
The Desire to satisfy a need in a certain way
Exchange
Transferring value from buyer to seller
Demand
Desire for a product/service and the resources to pay for it
Market
Collection of people who have a need for a product/service, and are willing and able to spend the resources necessary to obtain the product/service
Stakeholders
Anybody who has a stake in the outcome of the product or service, could be a seller, buyer, investor, community, or place where the product was made
Utility/Value
Sum of the benefits we receive from a product, it can be symbolic
Types of Utility
Form, Place, Time, Possession
Form
Type of utility (convert raw materials into product)
Place
Type of utility (make product/service available when customers want them)
Time
Type of utility (storing product until customer needs it)
Possession
Type of utility (benefit from owning, using, enjoying product)
Value Proposition
Marketplace offering that fairly and accurately sums up value realized if customer buys product or service
Value (Customer’s Perspective)
Sum of benefits that we receive from a product.
Value (Seller’s Perspective)
Profits, but also prestige, pride, making community happy.
Value (Stakeholders)
Occurs when company has competitive advantage over rivals
Distinctive Competency
A companies superior capability
Differential benefit
Unique benefit of product
Value (Society)
The impact of the product/service on society
Triple Bottom Line
A business strategy that includes social, economic, and environmental criteria
Value Chain
In Bound Logistics(bringing raw materials)–> Operations(making raw materials into product)—> Outbound Logistics(shipping final product)–> Marketing and Sales—> Servicing product or customer
Maslow’s Hierarchy of Needs
-Levels of needs people must meet in order to be motivated. From bottom to top: Physical(food, water,air,shelter,sex), Safety(protection, order, stability), Social(affection,friendship,belonging), Ego(prestige, status,self-esteem), self-actualization(Self fulfillment)
Schwartz’s Value System
Top(Self-Transcendence) Bottom(Self Enhancement) Left(Open to Change) Right(Conservation)
McClelland’s Trio of Needs
Power(desire to control environment), Achievement(need for personal accomplishment), Affiliation(need for friendship,acceptance, belonging)
Deci and Ryan Self Determination Theory
Autonomy(desire freedom from external control, Competence(need to feel one is competent at tasks), Relatedness(need to relate to others)
Production Orientation
A philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace, Product will sell itself
Selling Orientation
getting the product out the door! reducing inventories, product supply is greater than demand
Consumer/Market Orientation
Business philosophy incorporating the marketing concept that emphasizes first determining unmet consumer needs and then designing a system for satisfying them
New Era Orientation
A management philosophy in which marketing means a devotion to excellence in designing and producing products that benefit the customer, as well as the company’s employees, shareholders and communities
Marketing Mix
Product, Price, Place, Promotion
Dark Side
Illegal Practices, health problems, Psychological costs, financial burdens, environmental degradation
Strategic Planning
A managerial decision process that matches an organization’s resources and capabilities to its market opportunities for long-term growth and survival.
Functional Planning
a decision process that concentrates on developing detailed plans for strategies and tactics for the short term, supporting an organization’s long-term strategic plan
Operational Planning
Process of setting work standards and schedules necessary to implement company’s tactical objectives.
1st Step for Strategic Planning
Define Mission Statement (overall purpose of the organization and its plans for achievement)
Mission Statement
A statement based on a careful analysis of benefits sought by present and potential customers and existing and anticipated environmental conditions
2nd Step in Strategic Planning
evaluate the internal and external environment
SWOT Analysis
A technique that reviews and analyzes the internal strengths and weakness of an organization and the external opportunities and threats that if faces. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.
Sustainable competitive advantage
An advantage that cannot be copied by the competition
3rd Step in Strategic Planning
Set Organizational objectives that flow from mission statement and are realistic, specific, measurable, and well matched with mission statement
4th Strategic Plan
Establishing and evaluating business portfolio, collection of brands/units owned by an org that have different income generating potential
Star
dominant market share in high growth markets
Cash Cow
dominant market share in low growth markets
Question marks
low market share in high growth markets
Dogs
SBU’s with low market share in low growth market
5th Strategic planning
Develop growth Strategies
Market Penetration
increase sales of existing products within existing markets
Market Development
introduce existing products into new markets
Product Development
selling new products in existing markets
Diversification
emphasize both new products and markets