Busi107 Ch. 1-5 – Flashcards

"how can we sell more aggressively?" inward focus. believes that people will buy more goods and services if aggressive sales techniques are used. believes that high sales result in high profits. targets the everybody or the "average customer." use promotion.

"what do customers want and need?" outward focus. understanding the customer is the key to achieving this orientation. believe sales don't depend on aggressive sales force efforts, but on a customers decision to purchase a product. synonymous with the marketing concept. based on customer satisfaction and an organization wide commitment to researching and responding to customer needs. targets a specific group of people. obtain information about customers, competitors, and markets. examine the info from a total business perspective. determine how to deliver superior customer value and implement actions to provide that value to customers.

"what do customers want and need, and how can we benefit society?" believes that organizations exist 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 (ex: less toxic products, more durable products, products with reusable or recyclable materials)

"what can we make or do best?" philosophy focuses on internal capabilities of firm rather than desires and needs of the marketplace. hire the "best" employees.

a strategy that entails forging long-term partnerships with customers. assumes many consumers and business customers prefer to have an ongoing association with one organization rather than to switch continually among providers in their search for value. establishing long-term, mutually satisfying buyer-seller relationships.

a unique blend of product, place, promotion and pricing strategies designed to meet the needs of the customers within its target market and produce mutually satisfying exchanges. created by management that a firm can control. four aspects of marketing mix are the "four p's"

a defined, specific group of people or organizations (customers) on whom an organization focuses its marketing efforts in which it designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges. group most likely to buy a firm's product. 3 strategies for selecting target markets are: appealing to the entire maker with one marketing mix, concentrating on one marketing segments and appealing to multiple markets with multiple marketing mixes.

delegation of authority and responsibility to employees make marketing decisions without seeking approval of their superiors. to solve customers' problems quickly; usually by the first person that the customer notifies regarding a problem.

SWOT analysis. allows firms to identify their competitive advantage. strengths, weaknesses, opportunities and threats.

states that people should adhere to their obligations and duties when analyzing an ethical dilemma. always keep promises to a friend and follow the law. very consistent decisions since they are based on the individual's set duties.

compares a current ethical dilemma with examples of similar ethical dilemmas and their outcomes. drawback: there may not be a set of similar examples for a given ethical dilemma to use for comparison. patience.

takes into account the law and is concerned with fairness. seeks to benefit the most people but through the fairest and most just means available. Added benefits are that it values justice and doing good at the same time.

believe in time-and-place ethics; ethical truths depend on the individuals and groups holding them. weigh the competing factors at the moment and then make a determination to take the lesser of the evils. they do not believe in absolute rules, their beliefs center on the pressure of the moment and whether the pressure justifies the action taken.

founded on the ability to predict the consequences of an action. holds that the choice that yields the greatest benefit to the most people is the choice that is ethically correct.

potential magnitude of the consequences, social consensus, probability of a harmful outcome, length of time between the decision and the onset of consequences, number of people to be affected.

environmental factor that is most difficult for marketing managers to forecast, influence, or integrate into marketing plans. Includes our attitudes, values and lifestyles. Influence the products people buy, the prices paid for products, the effectiveness of specific promotions, and how, where, and when people expect to purchase products. Includes values, time pressure, component lifestyles and changing role of women.

environmental factor that studies people's viral statistics such as age, race and ethnicity, and location. Significant because people are the basis for any market. Strongly related to consumer buyer behavior in the marketplace. Population.

environmental factor that encompasses the number of competitors a firm must face, the relative size of the competitors, and the degree of interdependence within the industry. Managers have little control over this. Includes market share and profits and global competition.

environmental factor that pertains to the reaction to the economic environment. 3 areas of greatest concern are consumers' incomes, inflation, and recession.

environmental factor that causes companies to cut costs and boost short-term profits by slashing research and design, product design, and laboratory spending. They want to stimulate innovation.

environmental factor that protects innovators of new technology, the interests of society in general, one business from another, and consumers. This uses federal legislation, state laws, and regulatory agencies.

economic factor that is a comparison of income vs the relative cost of a set standard of goods and services in different geographic areas, usually referred to as the cost of living.

economic factor that measures the decrease in the value of money, expressed as the percentage reduction in value since the previous year. You will need 5% more units of money than you would have needed last year to buy the same basket of products. If inflation is 5%, you can expect that, on average, prices have risen by about 5% since the previous year. In times of low inflation, businesses seeking to increase their profit margins can do so only by increasing their efficiency.

economic factor that is a period of economic activity characterized by negative growth, which reduces demand for goods and services. Retailers and manufacturers redouble their efforts to cut costs during a recession. They often try to lower prices to attract new customers and hold existing ones, but also often cut costs simply to survive.

understanding current customers(how, what, and when they buy), understanding what drives consumer decisions (why customers buy), identify the most valuable customers and understand their needs, understand the competition.

economic factor that..

2 facets. first its a philosophy, an attitude, a perspective, or a management orientation that stresses customer satisfaction. second it is a set of activities that implement the philosophy through products, promotion, distribution and pricing.

a desired outcome of marketing in which people give up something to receive something they would rather have. Exchange does not actually require money as the medium of exchange. can be a barter or trade instead. 2 or more people may barter or trade such items. An exchange can only take place if the following 5 conditions exist: 1. must be at least 2 parties. 2. Each party has something that might be of value to the other party. 3. Each party is capable of communication and delivery. 4. Each party is free to accept or reject the exchange offer. 5. Each party has the desire to deal with the other party. If all conditions are met, this still does not guarantee an exchange will occur even though they are necessary for exchange to be possible. an agreement between buyer and seller is required before an exchange occurs. ex: auto or jewelry shopping. Marketing can occur if an exchange does not occur (advertising, personal selling, sales promotion, etc.)

production(internal capabilities of the firm), sales(aggressive sales techniques and belief that high sales result in high profits), market(satisfying customer needs and wants while meeting objectives) and societal marketing orientation(satisfying customer needs and wants while enhancing individual and societal well-being). These four competing philosophies influence an organization's marketing processes. A firm's capabilities, such as production, are major considerations in strategic market planning. The guiding factor with all orientations should be the determination of what customers want, not what management thinks should be produced or sold.

it is believed that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits. intermediaries are also encouraged to push manufacturers' products more aggressively. this means selling products or services and collecting money in exchange. potential pitfalls are that the owner realizes there may be a lack of understanding of the needs and wants of the marketplace. despite the quality of their sales force, they cannot convince people to buy goods or services that are neither wanted nor needed. the firm may simply fail to understand what is important to their customers.

market penetration: increase market share among existing customers (McDonald's sells more Happy Meals with Disney movie promotions), product development: create new products for present markets(McDonald's introduces premium salads and McWater), market development: attract new customers to existing products(McDonald's opens restaurants in China), and diversification: introduce new products into new markets(McDonald's introduces line of children's clothing).

a situation analysis in which the firm identifies its internal strengths and weaknesses(focus on organizational resources: production costs, marketing skills, financial resources, etc.), and also examines the external opportunities and threats (analyze aspects of the marketing environment). helps firms identify their competitive advantage.

marketing managers collecting and interpreting information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan. helps identify market opportunities and threats and provides guidelines for the design of marketing strategy. four environmental forces would be: social, demographic, economic and technological.

product/service differentiation because they have something that has a good image due to the family and friend personal connection. also, spicy olives is a special recipe they have, in which it would be difficult for competitor's to imitate the exact taste. also they can use customer service in the product/service differentiation because they have family and friends as employees and therefore can provide excellent customer service while keeping a strong bond with the local community.

the set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition. the reason(s) that cause customers to choose that firm and not the competition. what makes a competitive advantage sustainable is when a company has an advantage that the competition cannot copy. a sustainable competitive advantage lasts only as long as the time it takes a competitor to imitate the strategy and plans(function of speed of imitation). marketing managers should continually look for skills and assets that create and sustain competitive advantage. sources of sustainable competitive advantage are: patents, copyrights, locations, equipment, technology, customer service, promotion.

cost: being the low-cost competitor in an industry while maintaining satisfactory profit margins (obtain inexpensive raw materials, create efficient plant operations, design products for ease of manufacture, control overhead costs, avoid marginal customers), product/service differentiation: provides longer lasting competitive advantage than cost and is a provision of something that is unique and valuable to buyers beyond simply offering a lower price than the competitions (brand names, strong dealer network, product reliability, image, service) and niche strategies: when a firm seeks to get and effectively serve a single segment of the market(used by small companies with limited resources, may be used in a limited geographic market, product line may be focused on a specific product category).

Product: starting point of the marketing mix where it is difficult to decide on a promotion campaign, determine a price, or design a distribution strategy until the product offering and product strategy are defined(can be tangible goods, ideas or services. not only the physical unit but also the packaging, warranty, after-sales service, brand name, company image, value, etc.); Place: distribution to ensure products arrive in usable condition at the right place when customers need them(all activities from raw materials to finished products); Promotion: to bring about exchanges with target markets by informing, educating, persuading, and reminding(includes integration of: advertising, public relations, sales promotion, and personal selling; a good promotion strategy can increase sales, but does not guarantee success); Price: what a buyer must give up to obtain a product and is often the easiest/most flexible to change of the four marketing mix elements (important competitive weapon. price multiplied by the number of units sold equals total revenue for the firm).

A utilitarian would likely kill one of the ten people because they believe in the choice that yields the greatest benefit to the most people. A deontologist is likely to do nothing and watch the villain kill all people because they believe in following their obligations to another individual or society. They follow the law and it is illegal to kill.

What is meant is that ethical truths depend on the individuals and groups holding them. The proper resolution to the ethical dilemma is based on weighing the competing factors at the moment and then making a determination to take the lesser of the evils as the resolution. They do not believe in absolute rules. Their beliefs center on the pressure of the moment and whether the pressure justifies the action taken. -absolute view (on: safety, attire, etc.); doing the best you can. when do we need to keep rules rules wherever we go, or when do we need to be flexible. When in Rome should we do as the Romans do?

Preconventional morality- the most basic, childlike level "what's in it for me? will I get caught?" (calculating, self-centered, and even selfish, based on what will be immediately punished or rewarded. most business people have progressed beyond the self-centered and manipulative actions of this); Conventional morality- moves from an egocentric viewpoint toward the expectations of society and is concerned over legality and the opinion of others "everyone else is doing it" (loyalty and obedience to the organization or society become paramount. at this level, a marketing decision maker would be concerned only with whether the proposed action is legal and how it will be viewed by others. "When in Rome, do as the Romans do."); Postconventional morality-represents the morality of the mature adult and is concerned about how they judge themselves and if it is right in the long run "is this good in the long run?" (less concerned how others might see them. a marketing decision maker here might ask, "Even though it is legal and will increase company profits, is it right in the long run? Might it do more harm than good in the end?").

Potential magnitude of the consequences: The greater the harm done to victims, the more likely that marketing professionals will recognize a problem as unethical. Social consensus: The greater the degree of agreement among managerial peers that an action is harmful, the more likely that marketers will recognize a problem as unethical. Probability of a harmful outcome: The greater the likelihood that an action will result in a harmful outcome, the more likely that marketers will recognize a problem as unethical. Number of people to be affected: The greater the number of persons affected by a negative outcome, the more likely that marketers will recognize a problem as unethical. These factors contribute to the ethical environment of a marketing organization by helping identify acceptable business practices, helping control behavior internally, avoids confusion in decision making and facilitates discussion about right and wrong.

A recent addition to social responsibility theory that refers to the idea that socially responsible companies will outperform their peers by focusing on the world's economic, social, and environmental problems and viewing them as opportunities to build profits and help the world at the same time. Also the notion that companies cannot thrive for long (i.e., lack sustainability) in a world where billions of people are suffering, desperately poor and natural resources are being wasted and/or destroyed. Only business organizations have the talent, creativity, and executive ability to do the job.

Another aspect of social responsibility that asserts that to is the social responsibility and that responsible companies must pay attention to the interests of every stakeholder in every aspect of their operations. employees, management, customers, local community,suppliers, owners.

Social change(attitudes, values, lifestyles), economic conditions(consumers income, inflation, recession), competition, demographics(age, race, ethnicity, location), technology, political and legal factors(FTC, Consumer Product Safety Commission, FDA). however, the marketing mix can be controlled and reshaped to influence the target market.

Part of it is location. There are a bunch of coffee shops in Stockton and I have many options. Economies of scale, etc. You compete against other coffee shops by staying open longer, provide better quality coffee and more cheerful baristas than starbucks and offer different products other coffee shops don't sell, have a catchy name, have a good atmosphere (seating, music, hangout spot). Advantages against large corporate are: connection to community, sentimental connection, etc.

Millions of Americans have lost jobs due to imports, production shifts abroad, or outsourcing of tech jobs (Most find new jobs—that often pay less); Millions fear losing their jobs (especially at those companies operating under competitive pressure); Employers often threaten to outsource jobs if workers do not accept pay cuts; Service and white-collar jobs are increasingly vulnerable to operations moving offshore.

A company that is heavily engaged in international trade, moving resources, products (goods), skills and services across national boundaries without regard to the country in which the headquarters is located; beyond exporting and importing. Many U.S.-based multinationals earn a large percentage of their total revenue abroad. Walmart- they are huge and their annual sales are larger than the GDP of all but 30 nations in the world. Mc'Donals-offers Kosher and is everywhere literally.

companies operate in one country and sell into others, set up foreign subsidiaries to handle sales, operate an entire line of business in another country, and virtual operation. Most companies stop at the third stage because adequate distribution is necessary for success in global markets and some countries have complicated systems; lack of distribution infrastructure and culture differences create problems.

global marketing standardization is the production of uniform products that can be sold the same way all over the world. companies cannot truly follow the basic premise because although this should enable companies to lower production and marketing costs, success is based on variation, not offering the same product everywhere.

tariff-a tax levied on goods entering a country; quota-limit on the amount of a product entering a country; boycott-exclusion of products from a country; exchange control-foreign exchange must be sold to a control agency; market grouping-common trade alliance; trade agreement-an agreement to stimulate international trade. EU: to create a unified European market;World Bank: offers low interest loans to developing nations to help relieve debt burdens; International Monetary Fund: established to remove trade barriers, provide emergency loans, and stabilize trade and exchange rate; NAFTA: created world's largest free trade zone.

dumping means selling an exported product at a lower price than that charged for the same or like product in the exporter's home market. this is regarded as price discrimination that can harm the import in nation's competing industries. a company would do this to: try to increase an overseas market share, temporarily distribute products to overseas markets to offset slack demand at home, lower unit costs by exploiting large-scale production, and attempt to maintain stable prices during periods of exchange rate fluctuations.

expands economic freedom in countries that open themselves to the global marketplace, spurs competition, raises productivity and living standards, offers access to foreign capital, global export markets, and advanced technology, promotes higher labor and environmental standards, acts as a check on government power.

selling domestically produced products to buyers in another country

franchising. legal process whereby a licensor agrees to let another firm use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge.

when a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity.

the sale of an exported product at a price lower than that charged for the same or a like product in the "home" market of the exporter.

an intermediary who acts as a manufacturer's agent for the exporter; the export agent lives in the foreign market

an intermediary who plays the traditional broker's role by bringing buyer and seller together.

offer products that perform, earn trust, avoid unrealistic pricing, give the buyer facts, offer organization-wide commitment in service and after-sales support, allow co-creation.

the managerial process of creating and maintaining a fit between the organizations objectives and resources and evolving market opportunities. the goal is long-term profitability and growth.

a virtue is a character trait valued as being good; Aristotle taught importance of cultivating virtue in using the virtues to solve ethical dilemmas