Adms 2200 Mid-Term Exam Prep Essay Example
Adms 2200 Mid-Term Exam Prep Essay Example

Adms 2200 Mid-Term Exam Prep Essay Example

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  • Published: May 7, 2017
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Marketing involves the strategic planning and execution of different components, including product planning, pricing, promotion, and distribution.

Marketing aims to strengthen customer relationships for the organization and its stakeholders by generating value through exchanges. This value includes time utility, guaranteeing goods and services are available when needed; place utility, ensuring accessibility at convenient locations; and ownership utility, facilitating the transfer from marketer to buyer.

Form Utility: Form Utility is the process of converting raw materials and components into finished goods and services.

Eras in Marketing History: There have been four eras in marketing history. The first era, known as the Production era, occurred before the 1920s. During this time, it was believed that products would sell themselves without much effort. The second era, called the Sales era, took place before the 1950s. In this period, creative promo

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tion techniques were utilized to overcome consumer resistance and persuade them to make purchases. The third era began in the 1950s and is referred to as the Marketing era. This era focused on understanding consumers' needs and meeting them accordingly. Lastly, we are currently in the Relationship era which started in the 1990s. This modern phase emphasizes establishing long-term relationships with customers and suppliers by continuously providing value over time.

Marketing Myopia: Marketing myopia occurs when a company fails to grasp its entire business scope. To avoid this mistake, firms must find innovative ways to reach new markets using their existing goods and services.

The text explains the five categories of non-traditional marketing, which include promoting a person, promoting a geographical area, promoting a social issue or cause, promoting an event, and promoting an organization. These categories necessitate creativity and critical thinking to generat

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innovative ideas and determine the optimal course of action.
Interactive Marketing:
This form of marketing entails communication between buyers and sellers where customers have control over the information they receive. It utilizes various channels such as the internet, CD-ROMs, interactive toll-free telephone numbers, and virtual reality kiosks. Interactive Marketing technologies allow for direct customer communication, larger transactions, and customer control. Technological advancements can lead to the creation of new or improved products and services, enhanced customer service, and reduced prices.

It can also address social concerns. Marketers need to stay current with and possibly ahead of competitors by monitoring the technological environment. Failure to do so may result in obsolete offerings.

One-to-One Marketing: Customized marketing program that aims to build long-term relationships with individual customers. It identifies a firm's most valuable customers and enhances their loyalty.
Relationship Marketing: The development and maintenance of long-term cost-effective relationships with individual customers, suppliers, employees, and other partners for mutual benefit.

Relationship Marketing uses loyalty ladders to incentivize customers, leading to repeated purchases and long-term relationships.

Integrated Marketing: It involves coordinating all promotional activities to create a cohesive, customer-focused promotional message.

Strategic Alliance: It occurs when two organizations partner together in order to gain a competitive advantage.

Eight Universal Marketing Functions:

Exchange functions:

Buying: It ensures that there is an adequate supply of products to meet customer demands.
Selling: It matches products with customer needs through advertising, personal selling, and sales promotion.

Physical functions:

Transporting: It moves products from the production location to convenient locations for purchasers.
Storage: It stores products until they are needed for sale.

Facilitating functions: The act of facilitating product offerings to ensure they meet quality and quantity controls, such as size, weight, and other variables, through

standardization and grading.

Financing: Providing credit to channel members (wholesalers and retailers) as well as consumers.

Securing Marketing Information: The process of gathering information about consumers, competitors, and channel members in order to make informed marketing decisions.

Risk Taking: Managing uncertainty related to future customer purchases.

Ethics: Ethics refer to the moral standards of behavior expected by society.

Marketing Ethics: The ethical standards of conduct and moral values upheld by marketers. There are five areas of ethical concerns for marketers: Marketing Research – for instance, gathering marketing information in exchange for money or free offers.

Product Strategy – ex: Product quality, planned obsolescence, packaging. Distribution – ex: Determining the appropriate degree of control over a channel.

Promotion – ex: Gifts and Bribes Pricing – Most unethical pricing behaviours are also illegal.

Social Responsibility: involves marketing philosophies, policies, procedures, and actions whose primary objective is the enhancement of society. The 4 levels of Social Responsibility are: Economic – Be Profitable; the foundation upon which all others rest Legal – Obey The Law; Play by the rules of the game Ethical – Be Ethical; Obligation to do what is right, just, and fair. Philanthropic – Be a Good Corporate Citizen; Contribute resources to the community, improve quality of life.

Planning:
The process of anticipating future events and conditions and determining the best way to achieve organizational objectives.
Marketing Planning:
The implementation of planning activities aimed at achieving marketing objectives. In the last stage of the marketing planning process, managers monitor performance to ensure the achievement of objectives. Marketing Plans vary among different managerial levels within the organization.
Top Managers:
They concentrate their planning activities on long-range strategic issues.
Middle-Level Managers:

They focus on operational planning, including the creation and execution of tactical plans for their respective units.

Supervisors should focus on creating specific programs to achieve goals within their areas of responsibility. Strategic planning involves determining an organization's main objectives and adopting actions to accomplish them. Eastman Kodak's strategic plans prioritize the company's core strength in digital imaging. Tactical planning guides the implementation of activities outlined in the strategic plan, including the development of the first Wi-Fi camera and dual-lens digital camera by Eastman Kodak. Gathering input from various sources, such as employees, suppliers, or customers, is crucial during the planning phase.

Involving others in the planning process can also transform them into advocates for the plan.

Mission: The mission statement is the fundamental purpose that sets one company apart from others. It outlines the organization's overall goals and operational scope and offers general direction for future management actions. The distinction between a company's mission and its objectives lies in the fact that a mission is the fundamental purpose that differentiates the company, while objectives drive the development of supporting marketing objectives and plans.
Porters Five Forces: Threats of potential new entrants: this increases competition in a market. Bargaining power of buyers: this can lower prices.

The bargaining power of suppliers can result in increased costs or limited product choices. The threat of substitute products can attract customers to alternative options. The rivalry among competitors can lead to price wars or distract companies from their primary objectives. The concept of a First Mover Strategy suggests that the first company to introduce a product in a market has an advantage in the long run. The benefits of this strategy include

capturing a significant market share and establishing enduring customer relationships. However, the disadvantages include the potential for subsequent companies to learn from the mistakes made by the first movers.

Second Mover Strategy: A theory that suggests closely observing the innovations of first movers and subsequently introducing new products that improve upon the original offering in order to gain an advantage in the marketplace. The SWOT Analysis is a method used to study organizational resources and capabilities, assessing strengths and weaknesses, and analyze the external environment to identify opportunities and threats. This analysis aids planners in comparing internal strengths and weaknesses with external opportunities and threats when formulating strategies.

Strategic Window: Refers to the limited periods of time when the key requirements of a market and a firm's particular competencies align most effectively. The fundamental elements of a marketing strategy include identifying a target market, which is a specific segment of consumers who are most likely to purchase a particular product.

Marketing Mix Variables Product Price Promotion Distribution Marketing Environment: a framework for all marketing activity consists of 5 dimensions. Competitive: How do supplies currently reach the market? Political-Legal: Do any legal restrictions complicate entering the market? Economic: What is the state of the nation’s economic health? Technological: To what degree are technological innovations used by consumers in the market? Social-Cultural: How do cultural factors affect business opportunities? Technological developments force businesses to adapt and as a result affect the marketing environment. Strategic Business Units are key business units within diversified firms. Each SBU has its own managers, resources, objectives, and competitors. The BCG Matrix is a marketing planning tool that classifies a firms SBU or products according to

industry growth rates and market shares relative to competing products.

The text can beand unified as follows:

The findings can be divided into four categories. Stars generate considerable income. The strategy for stars is to invest more funds for future growth. Cash Cows generate strong cash flow. The strategy for cash cows is to milk profits to finance the growth of stars and question marks. Question Marks have the potential to become stars or cash cows. The strategy for question marks is either to invest more funds for growth or consider de-investing. Dogs generate little profits. The strategy for dogs is to consider withdrawing. Environmental Scanning is the process of collecting information about the external marketing environment to identify and interpret potential trends. It contributes to environmental management by providing current information about the five different environments, allowing marketers to predict and influence changes. The marketing environment is a framework for all marketing activity, consisting of five dimensions.

The market is currently competitive in terms of supply distribution. Market entry may be complicated by legal restrictions. The nation's economy is an important economic factor to consider. Consumers' utilization of technological innovations impacts the market. Cultural factors have an impact on business opportunities as businesses need to adapt to technological advancements. Direct competition refers to competition among companies within the same industry, while indirect competition refers to competition among interchangeable goods and services. Time-Based Competition involves accelerating product development and distribution to outpace competitors.
The Competition Act in Canada aims to promote a healthy competitive environment for consumers and businesses by fostering competition and safeguarding consumer interests.

The Business Cycle consists of four stages: Prosperity, Recession, Depression, and Recovery.

Additionally, there is a phase called Inflation where the value of money decreases due to consistent price increases. This can have a negative impact on purchasing power, especially for non-essential goods and services.

Discretionary Income:

This refers to the money individuals have available to spend after covering necessary expenses such as food, clothing, and housing. The income level influences consumer buying power as households with more discretionary income can afford to purchase more goods and services. Consumerism acts as a social force that protects buyers by putting legal, moral, and economic pressures on businesses and governments.

John F. Kennedys - 4 Consumer Rights: The right to choose freely – Free Choice. The right to be informed - Information. The right to be heard – Free Speech. The right to be safe - Safe. Green Marketing: The production, promotion, and reclamation of environmentally sensitive products. This marketing effort is in response to the growing concerns of consumers about ecological issues and offers consumers high-quality products without health risks or damage to the environment.

Marketers who participate in green marketing may discover themselves in a thriving sector, like the organic foods industry. Customer Behaviour is a comprehensive concept that encompasses both individual consumers who make purchases for personal use and organizational buyers who acquire business products.

Consumer Behaviour:

The mental and physical actions of individuals who actively utilize the purchases goods and services. Grasping consumer behavior is crucial for marketers as it enables them to provide the appropriate products to consumers who desire them.

Kurt Lewin suggested that behavior is influenced by the interactions between personal influences and external pressures from the surrounding environment.

Interpersonal Determinant:

These are external factors that impact purchasing decisions. The Interpersonal

Determinants of consumer behavior include Cultural factors, such as values, beliefs, preferences, and traditions passed on from generation to generation.

Social:

Family influences are a personal determinant, which are internal factors that influence purchasing decisions.

The Personal Determinants of consumer behaviour include the following factors:

  • Needs: An imbalance between a consumer's actual and desired states.
  • Perceptions: The meaning that a person attributes to incoming stimuli gathered through the five senses - sight, hearing, touch, taste, and smell.
  • Attitudes: A person's enduring favourable or unfavourable evaluations, emotional feelings, or action tendencies toward some object or idea.
  • Learning: An immediate or expected change in behaviour as a result of experience.

Self-Concept Theory: A person's multifaceted picture of himself or herself, composed of the Real-Self, Self-Image, Looking-Glass Self, and Ideal Self.

The text discusses perception and learning and introduces Maslow's Hierarchy of Needs. It also mentions microcultures and subcultures, and talks about the factors that can differentiate subcultures. Additionally, it mentions the Asch Phenomenon and its connection to group behavior.

Asch conducted research that identified traits of individual behavior. A high-involvement purchase decision is one that could have significant social or economic effects, such as choosing an internet service provider, computer, apartment, or cell phone. Extended problem-solving demands extensive time and effort from consumers. On the other hand, a low-involvement purchase decision is a routine purchase with minimal risk, both socially and economically. Examples include buying a newspaper, a liter of milk, shampoo, or popcorn.

Limited Problem Solving involves a moderate amount of time and effort from consumers. They follow a step-by-step process when making purchase decisions, which includes:

  1. Problem or Opportunity Recognition: Consumers become aware of a significant difference

between the current and desired situations, motivating them to achieve their desired state.

  • Search: Consumers gather information about achieving the desired state.
  • Alternative Evaluation: The consumer develops a set of criteria to guide the selection of an alternative, which can be based on objective facts or subjective impressions.

    Purchase Decision: The consumer evaluates each alternative in the evoked set using their own set of criteria and narrows down the options to one choice.

    Purchase Act: The consumer achieves the desired state of affairs by making the purchase.

    Post-Purchase Evaluation: After the purchase, the buyer may feel satisfaction if the purchase aligns with their desired state of affairs or dissatisfaction if there is a discrepancy.

    The organizational purchasing process is more complex than the consumer purchasing process because it involves additional factors that are specific to businesses. Besides considering factors such as purchase price, installation, operating and maintenance costs, and vendor service, companies also need to account for broader environmental, organizational, and interpersonal influences that can influence their purchasing decisions. The steps involved in organizational buying are as follows:
    1) Anticipate or recognize a problem/need/opportunity and a general solution.
    2) Determine the characteristics and quantity of the needed good or service.
    3) Describe the characteristics and quantity of the needed good or service.
    4) Search for and qualify potential sources.
    5) Acquire and analyze proposals.
    6) Evaluate proposals and select a supplier.
    7) Select and order routing.
    8) Obtain feedback and evaluate performance.

    The four classifications of business buying are:
    1) Straight rebuying: This refers to a recurring purchase decision where a customer repurchases a good or service that has previously performed satisfactorily.
    2) Modified rebuying: In this case, the purchaser is willing to reconsider

    available options for repurchasing a good or service.
    3) New-task buying: This is a situation where a purchase decision requires significant effort from the decision-makers as it is either a first-time or unique purchase.
    4) Reciprocity: This policy involves extending purchasing preference to suppliers who are also customers.

    Evoked Set: The number of alternatives that a consumer actually considers in making a purchase decision.
    Evaluative Criteria: The feature that a consumer considers in choosing among alternatives.
    Cognitive Dissonance: Post-Purchase anxiety that results from an imbalance among an individual’s knowledge, beliefs, and attitudes after an action or decision is taken.
    Routinized Response Behaviour: The repeated purchase of the same brand or limited group of products.
    Business-to-Business (B2B) Marketing: Organization sales and purchases of goods and services to support production of other goods and services for daily company operation, or for resale.
    Commercial Market: Individuals and firms that acquire products to be used, directly or indirectly, to produce other goods and services.

    Business markets can be segmented using various criteria, including demographics (such as gender, age, income, occupation, household, and family life cycle), customer type, end-use application, purchasing situation, and NAICS (North American Industry Classification System). NAICS is a unified system used in Canada, Mexico, and the United States to classify customers and facilitate trade. The Canadian Business Market is more geographically concentrated compared to the customer market. Geographical segmentation is crucial for B2B as it enables industries to set up operations in specific areas in order to be close to their customers. This may involve establishing sales offices and distribution centers in those regions to offer more personalized service. Marketers typically employ geographic segmentation when there are regional preferences or

    when demand for specific categories of goods and services varies across different geographic areas.

    In colder regions, consumers tend to consume a larger quantity of soup compared to those residing in warmer regions. The relationships between buyers and sellers hold vital significance in B2B marketing due to their complex nature, requiring effective communication among organizational staff. Satisfying a key customer can have a significant financial impact for a company, potentially amounting to millions of dollars. Global sourcing entails the procurement of goods and services from suppliers located across the globe.

    Two advantages of outsourcing are that it enables companies to focus on their core business and provides access to specialized talent or expertise that may not be available within the company. However, there are also two potential issues with outsourcing. Firstly, some companies find that the cost savings promised by vendors are not as significant as expected. Secondly, companies that enter into multi-year contracts may experience a decrease in savings after a certain period of time.

    International Buying Centres present several challenges. Apart from differences in decision-making methods due to cultural factors, some foreign companies may lack staff members dedicated to purchasing, resulting in line managers in less developed countries making the majority of purchase decisions.

    Foreign buying centres in companies often involve more participants compared to Canadian companies. Additionally, international buying centres can change in response to political and economic developments. Multiple sourcing has its advantages and disadvantages. One advantage is that spreading orders among various vendors helps to safeguard against shortages if one vendor fails to deliver on schedule. However, a disadvantage is that managing multiple sellers can be counterproductive and time-consuming.

    The different types

    of Demand include:
    - Derived Demand: This is the demand for a resource that is a result of demand for the goods and services produced by that resource.
    - Volatile Demand: This refers to changes in demand that are not proportional to normal trends.
    - Joint Demand: This is the demand for a product that depends on the demand for another product used together with it.
    - Complementary Products Inelastic Demand: This type of demand, prevalent in an industry, remains relatively unchanged despite price fluctuations. If the price of products with inelastic demands increases, consumers are less likely to seek alternative options.

    Inventory Adjustment: Just-In-Time inventory policies (JIT & JIT II) involve suppliers placing representatives at the customer’s facility to work as part of an integrated, on-site customer-supplier team. Suppliers consult with the customer when planning and ordering, streamlining the inventory process and enhancing control of the flow of goods.

    Value Analysis is the systematic study of the components of a purchase to determine the most cost-effective approach.

    Vendor Analysis, on the other hand,

    is the assessment of supplier performance in areas such as price, back orders, timely delivery, and attention to special requests. The main difference between Value Analysis and Vendor Analysis is that Value Analysis examines each component of a purchase to either delete the item or replace it with a more cost-effective substitute. On the other hand, Vendor Analysis carries out an ongoing evaluation of a supplier’s performance in categories such as price, EDI capability, back orders, delivery times, liability insurance, and attention to special requests.

    There are five roles within the

    buying centre:
    User: Those who use the product
    Gatekeeper: Those who control the flow of information
    Influencer: Those who provide technical information or specifications
    Decider: Those who actually choose the product
    Buyer: Those who have the formal authority to purchase.

    Importing: Purchasing foreign goods, services, and raw materials.

    Exporting: Marketing domestically produced goods and services abroad. The largest category of exports from Canada is machinery and industrial products.

    Global marketers need to be able to customize their products and services to suit local preferences. There are three factors that determine a country's potential for international business expansion: its size, per capita income, and stage of economic development. Trade barriers can be divided into two categories: tariffs and administrative barriers. Tariffs are taxes imposed on imported goods.

    Revenue tariffs:

    These tariffs are intended to generate revenue for the government of the importing country. Protective tariffs, on the other hand, aim to increase the retail price of imported products. Administrative barriers, also known as non-tariffs, are more subtle and can take various forms such as exchange controls, customs barriers, import quotas, embargoes, and unnecessarily restrictive import standards. Countries often use non-tariff barriers to support exports and control the flow of imported goods.

    GATT (General Agreement on Tariffs and Trade): An international trade accord that has contributed to the reduction of world tariffs.
    WTO (World Trade Organization): This organization oversees GATT agreements and plays a role in mediating disputes. Additionally, it focuses on ongoing efforts to reduce trade barriers globally.
    NAFTA (North American Free Trade Accord): This accord eliminates trade barriers among Canada, Mexico, and the United States.
    EU (European Union):

    A customs union that is progressing towards becoming an economic union by implementing a common currency, eliminating trade restrictions, and facilitating the free movement of goods and workers within member nations.

    The European Union is aiming to eliminate trade barriers within its member countries and enhance its global influence as a strong economic and political force. There are three main approaches to participate in international markets: Importing and Exporting, Contractual Agreements, and International Direct Investment.


    Franchise:

    This refers to a contractual arrangement where a wholesaler or retailer commits to meet the operational obligations of a manufacturer or franchiser. International Direct Investment involves making direct investments in foreign companies, production, and marketing facilities.

    Multinational Corporation: A firm with significant operations and marketing activities outside the home country. There have been changes in Multinational Corporations since the 1960s; they are no longer exclusively North American-based and they no longer consider their foreign operations as mere outsourcing appendages.
    Global Marketing Strategy: This refers to a standardized marketing mix with minimal modification that a firm uses in all its domestic and foreign markets.
    Multi-Domestic Marketing Strategy: This involves the application of market segmentation to foreign markets by tailoring the firm’s marketing mix to match specific target markets in each nation. The main difference between Global Marketing Strategy and Multi-Domestic Marketing is that global marketing strategy defines a marketing mix and implements it with minimal modifications in all foreign markets.

    Whereas a Multi-Domestic Marketing Strategy requires firms to customize their marketing decisions for individual marketplaces, the five strategies for choosing the most appropriate product and promotion strategy for a specific international market are as follows:

    • Straight Extension: One Product / One Message
    • Promotion Adaption:

    Product Adaption

  • Dual Adaption: Product Invention
  • Countertrade: Form of exporting whereby goods and services are bartered rather than sold for cash
  • Canada is an inviting target due to the following reasons:

    • It offers access to the North American Markets
    • Has high levels of discretionary income
    • Has understanding buyers and markets
    • Has a generally favorable attitude towards foreign investment
    • Has a relatively well-controlled economy

    Auto-Manufacturing is significant to Canada as it contributes to 15 percent of Canada's total manufacturing production. In Ontario specifically, it accounts for $100 billion of output or a third of manufacturing in the province.

    The different classifications of marketing research suppliers are as follows:

    Syndicated Services: Organizations that regularly provide a standardized set of data to all customers.

    Full-Service Research Suppliers: Organizations that contract with clients to conduct complete marketing research projects. Limited-Service: A marketing research firm that specializes in selected activities like: field or telephone interviews, data-processing, focus groups. Research methods can be used to measure customer satisfaction: Feedback from existing customers Collect feedback about customer defections Online polls and surveys. The marketing research process can be divided into six specific steps: Defining Problems Conducting Exploratory Research: An informal investigation seeking to discover the cause of a problem by discussing it with informed internal and external sources. Formulating Hypotheses: A tentative explanation for some specific event – a statement about the relationship among variables that carries a clear implication for testing this relationship. Creating a Research Design: A series of decisions that, taken together, comprise a master plan or model for conducting marketing research.


    Data Collection:

    Marketing researchers gather two types of data: primary data and

    secondary data. Primary data is original, while secondary data refers to information that has already been published.


    Interpreting and Presenting Research Information:

    Reports are presented either orally or in written form, with the objective of minimizing potential misunderstandings due to different backgrounds, knowledge levels, and experiences. Internal sources of secondary data include sales records, product evaluations, sales force reports, and records of marketing costs. Additionally, external organizations such as Industry Canada and the U.S. Departments of Commerce can provide international secondary marketing data. The three main methods of primary data collection are observation, surveys and interviews, and experiments. Face-to-face interviewing remains the most commonly used method for primary research outside of North America.


    Interpretive Research:

    In interpretive research, the behavior of customers or a group of customers is observed in their natural environments, and their behavior is then analyzed based on an understanding of the social and cultural characteristics of that particular setting.

    Sampling:

    Sampling refers to the process of selecting representative participants for surveys or research from the entire population of potential participants. Samples can be categorized as either probability samples or nonprobability samples.

    Marketing:

    Marketing involves the planning and execution of product development, pricing, promotion, and distribution.

    Marketing aims to cultivate beneficial customer relationships for the organization and stakeholders. It achieves this by creating utility through the exchange process. Utility encompasses various aspects such as time utility, which ensures goods and services are available when desired. Place utility ensures goods and services are conveniently accessible, while ownership

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