McGraw Hill Marketing 1, 2, and 3 – Flashcards
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stakeholders
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employees, shareholders, board of directors, suppliers, distributors, creditors, union, government, local communities and customers
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mission
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based on the core values, a statement of the org's function in society
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foundation of an org's marketing strategy?
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a clear understanding the industry it's in
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organization
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legal entity of people who share a common mission
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environmental scanning
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continually gathering outside info to interpret trends
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environmental trends arise from which sources?
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environmental forces
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micromarketing
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how an org directs its marketing activities and allocates its resources to benefit its customers
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ultimate consumer
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the buyers who use the product bought for personal use
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organizational buyers
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people in charge for buying products and services for orgs., businesses, and government
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utility
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benefits, or customer value received by users of the product
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4 types of utility
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form, place time, possession
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form utility
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production of good or services
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place utility
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having an offering available where needed
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time utility
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having an offering available when needed
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possession utility
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value of making an item easy to purchase
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marketing program
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using learned information from customer, then integrating the info to the marketing mix to provide a good, service, or idea to potential customers
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relationship marketing
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linking an org to its individual customers, employees, suppliers and other partners for their mutual long-term benefit
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three successful ways to deliver customer value
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offer best product, offer best price, offer best service
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customer value
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the unique combination of benefits buyers that include convenience, on-time delivery and both before and after sale service, at a specific price.
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what has prompted many successful US firms to focus on customer value
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an intense level of global competition
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what are the uncontrollable environmental forces?
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social, economic, technological, competitive, regulatory
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social forces
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what people want and need
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economic forces
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expanding or contracting economy
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technological forces
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changing technology
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competitive forces
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actions that competitors take
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regulatory forces
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government restrictions
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what are the 4 P's?
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the controllable marketing mix factors: product, price, promotion, place
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target market
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one or more specific groups toward which an organization directs its marketing program
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market
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potential customer, who possess the desire and ability to buy a specific offering
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want
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a need that is shaped by knowledge, culture and personality
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marketing
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the activity for creating, communicating, delivering, and exchanging offerings that benefit the organization, its stakeholders and society at large
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How does marketing serve both the buyer and seller?
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it discovers the needs/wants of prospective customer and satisfies them
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exchange
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the trade of things of value between a buyer and seller so that each is better off
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who is responsible for establishing the goals of a business?
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management
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what is the marketing department of a business responsible for?
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facilitating relationships, partnerships and alliance with the org's customer, shareholders, suppliers and other orgs
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what is needed for marketing to occur
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2 or more parties with unsatisfied needs, the desire and ability to be satisfied, a way for them to communicate and something to exchange
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what are Mcmath's 2 key suggestions to prevent the failure of a new consumable product?
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focus on the customer's benefit and learn from the past
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need
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when a person feels deprived of a basic necessity like food, clothing or shelter
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societal marketing concept
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the view that orgs should satisfy the needs of customers in a way that provide for society's well being
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What are the 4 stages of manufacturers' history in the US?
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production era, sales era, marketing concept era, customer relationship era
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production era
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from the beginning of US history until the 1920's. goods were scarce and buyers were willing to accept anything the could get their hands on
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sales era
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from the 1920's-1960's. Manufacturers could start making more than buyers could consume. competition grew and firms started hiring salespeople to find new buyers.
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marketing concept era
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started in the 1950's. the idea that an org should satisfy the needs of consumers while also achieving the org's goals. GE introduced this concept.
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customer relationship era
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started in the 1980's. firms sought to continuously satisfy the high expectations of customers.
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customer relationship management (CRM)
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the process of identifying potential customer, understanding them intimately and developing a positive perception of the org so that people will choose them
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what does crm require
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involvement and commitment of the managers and employees and an application of information, communication and internet technology
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macromarketing
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the study of the aggregate flow of a nations goods and services to benefit society
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offerings
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products, services, or ideas that create value for both the org and its customers
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organizations can be divided into:
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business firms and non-profit organizations
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business firm
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privately owned org created to make profit to survive
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non-profit organization
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non-governmental organization that serves its customers but does not have profit as its goal
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profit
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money left after a business firm's total expenses are subtracted from its total revenues
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Industry
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organizations that develop similar offerings
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strategy
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an org's long term course of action designed to deliver a unique customer experience while achieving its goals
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corporate level strategy
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where top management directs over all strategy for the entire org
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strategic business unit (SBU)
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a unit of an org that markets a set of related offerings to a clearly defined group of customers
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functional level strategy
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specialized departments of a business that create value for the org
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what are the different departments of the functional level?
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information systems, finance, research and development, marketing, manufacturing, human resources
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cross functional teams
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teams that are formed to develop marketing programs for new offerings or for improving existing offerings. accountable for achieve a task and set performance goals.
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planning gap
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the difference between projected goals and actual results of a current goal
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marketing tactics
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detailed decisions key to the success of marketing strategies
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marketing strategy
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the means by which a marketing goal is to be achieved
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what are the 3 steps of the planning phase of the strategic marketing process?
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SWOT, market-product goal setting, marketing program
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market segmentation
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putting prospective customers into groups that have similar needs and will react similarly to marketing action
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SWOT
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strength weaknesses, opportunities, threats. identifies critical strategy-related factors
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strategic marketing process
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allocating the marketing mix resources to reach its target market
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what are the 4 market-product strategies?
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market penetration, market development, product development, diversification
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market penetration
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increase sales of current products in current markets
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market development
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selling current products to new market
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product development
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selling new products to current market
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diversification
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selling new products to new market
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diversification analysis
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a told that helps a firm search for growth opportunities from among new and current markets and new and current products
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dogs
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low share of slow growth markets. although it can sustain, it never really wins
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question marks
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low share of high growth markets. a lot of cash to maintain market share
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stars
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high share of high growth markets that needs extra cash to finance its own growth. when it slows it turns into cash cows
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cash cows
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high share of low growth markets. SBU's that generate large amounts of cash.
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business portfolio analysis
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a tool that quantifies performance measures and growth targets to analyze SBU's. a method to set a direction for a firm
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competencies
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skills, technologies and resources, which distinguish it from other orgs and provide customer value
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points of difference
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characteristics of a product that make it superior to competitive substitutes
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strategic direction is based on what 2 questions?
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where are we now? where do we want to be?
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marketing plan
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a road map for the marketing activities for a specified future time period
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marketing metric
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a variable in the marketing dashboard
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marketing dashboard
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a visual computer display of essential information related to achieving a marketing objective
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goals/objective
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a statement of an accomplishment of a task to be achieved
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business model
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the strategy an org develops to provide value to the customer it serves
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organizational culture
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a set of values, attitudes and norms shared among members of an org
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demographics
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describing a population according to selected characteristics
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when were baby boomers born?
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between 1946-1964. interest in health, wellness and appearance
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generation x
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born between 1965-1976. self-reliant, supportive of racial and ethnic diversity, and better educated. focus of caution, pragmatism and traditionalism.
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generation y
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born between 1977-1994. contemporary culture, optimistic and passionate about environment.
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blended family
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when divorced people get remarried and form a household
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multicultural marketing
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combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences and lifestyles of different races
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culture
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a set of values, ideas and attitudes that are learned and shared among members of a group
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marketspace
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information- and communication-based electronics exchange environment
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electronic commerce
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electric communication in the inventory, exchange, advertisement, distribution and payment of goods and services
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intranet
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internet based network within an organization
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extranet
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internet-based technology to communicate between an org and the outside
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what factors drive competition?
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entry, bargaining power of buyers and suppliers, existing rivalries, substitution possibilities
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what are some forms of barriers to entry?
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capital requirements, advertising expenditure, product identity, distribution access, cost to customers who are switching
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monopolistic competition
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many sellers with substitutional products (i.e. coffee and tea)
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pure competition
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many sellers with similar products
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oligopoly
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few companies control majority of sales (i.e. wireless providers)
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pure monopoly
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only one firm sells the product
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value consciousness
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concern for obtaining the best quality products
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consumerism
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started in the 1960's. increase influence of customers on the institution. (i.e. demand for environmental demands)
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technology's impact on customer value
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cost of technology is plummeting so customers focus on quality, services and relationships
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sherman antitrust act
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1890. no monopolies. no conspiracies in restraint of trade
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clayton act
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1914. supplemented sherman act because it was too value. forbids actions that lessen competition.
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robbinson-patman act
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1936. unlawful to discriminate in prices charged to different purchasers of the same product from the suppliers.
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the copyright law
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gives the author of a literary, dramatic, artistic or musical work the exclusive right to print, perform or copy
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lanham act
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1946. a company must register its trademarks.
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doppleganger
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misuse of trademarks
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federal dilution act
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1995. cannot use trademark on a noncompeting product. (i.e. "cadillac" brushes)
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exclusive dealing
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an arrangement a manufacturer makes with a reseller to handle only its products and not those of competitors. illegal under clayton act.
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requirement contracts
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require a buyer to purchase all or part of its needs for a product from one seller for a time period.
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exclusive territorial distributorships
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the manufacturer grants a distributor the sole rights to sell a product in a specific geographical area.
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tying arrangement
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a seller requires the purchaser of one product to also buy another item in the line. illegal
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FTC
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federal trade commission, created by the FTC act of 1914 to monitor promotion and advertising aspects of marketing
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what are the FTC's powers?
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issue cease and desist orders and order corrective advertisement
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self-regulation
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an alternative to government control, where an industry attempts to police itself.
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2 problems of self-regulation
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non-compliance by members and enforcement, and if it is too strong it may violate the robbinson-patman act.
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BBB
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Better Business Bureau. the best know self-regulatory group
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trademark law revision act
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1946. a change to the lanham act, secure rights ti a name before actual use by declaring an intent to use the name
