University of Arkansas Marketing 3433 Test 1 Lezon Essay

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Marketing
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A key organizational function and a set of processes designed to create, communicate, and deliver value to customers.
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Activities associated with Marketing
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1. Communicating information about those goods and services to prospective buyers. 2. Making the products available when and where customers want them. 3. Pricing merchandise and services. 4. Providing after-sales service and following-up.
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5 eras of Marketing
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1. Production 2. Sales 3. Marketing 4. Relationship 5. Social
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Production era
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Prior to 1920’s “A good product will sell itself”
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Sales era
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Prior to 1950’s “Creative advertising and selling will overcome consumers resistance and persuade them to buy”
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Marketing era
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Since 1950’s “The consumer rules! Find a need and fill it.”
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Relationship era
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Since 1990’s “Long-term relationships with customers and other partners lead to success”
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Social era
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Since 2000’s “Connecting to consumers via the internet and social media sites is an effective tool.”
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Which of the 5 eras has really always been in play?
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Relationships
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Marketing Myopia
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Management’s failure to recognize the scope of its business (product focus vs customer focused); Inability to continue to innovate
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Not-for-profit Organizations
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Focus is to generate revenue to support the organization’s causes and not on the bottom line.
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Gross Domestic Product (GDP)
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8 Marketing Functions
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1. Buying 2. Selling 3. Transporting 4. Storing 5. Standardizing and Grading 6. Financing 7. Risk-taking 8. Securing marketing information
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Buying function
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Ensuring that product offerings are available in sufficient quantities to meet consumer demands.
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Selling function
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Using advertising, personal selling, and sales promotions to match products to consumer needs.
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Transporting function
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Moving products from their point of production to locations convenient for purchasers.
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Storing function
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Warehousing products until their needed for sale.
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Standardizing and Grading function
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Ensure that product offerings meet quality and quantity controls on size, weight, and other variables.
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Financing function
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Providing credit for channel members (wholesalers and retailers) and consumers.
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Risk-taking function
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Dealing with uncertainty about future customer purchases.
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Securing Marketing Information function
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Collecting information about consumers, competitors and channel members for use in making marketing decisions.
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Strategic Planning
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Determines an organization’s primary objectives; adopting courses of action that will achieve broad objectives; provide long-term direction for decision makers.
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Tactical Planning
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The implementation of detailed activities in the strategic plan; addresses shorter-term actions that are very specific in nature; focuses on “in the weeds” details of the planning process.
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How long is short term?
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12 months
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How long is long term?
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More than 3 years
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Porter’s 5 forces model
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1. The potential of new entrants 2. The bargaining power of buyers 3. The bargaining power of suppliers 4. The threat of substitute products 5. Rivalry among competitors
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Marketing mix elements
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1. Product 2. Place 3. Promotion 4. Pricing
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Product element strategy
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Deciding what goods or services to offer to a group of consumers.
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Place element strategy
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deciding which classes of trade to sell your products to, and involves: -Modes of transportation, warehousing, inventory control, order processing, and selection of marketing channels Involves placement and not supply chain.
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Promotion element strategy
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Communication link between sellers (companies) and buyers (consumers) Ex. Salespeople, Ads, promotions.
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Pricing element strategy
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Practice of setting profitable and justifiable prices; Creates value for customers and shareholders and builds and strengthens customer relationships with a company, suppliers, and its products.
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Is the planning process in marketing temporary or continuous?
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Continuous and will NEVER STOP.
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Substitute product
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A product from another industry that offers similar benefits to the consumer as the product produced by the firms within the industry.
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Directly-competitive product
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A product in which the consumer will only buy one or the other.
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Sprint Campaign
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Look over. CHPT 3 slides
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Stages of the business cycle
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1. Depression 2. Prosperity 3. Recession 4. Recovery
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Depression
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Consumer spending sinks to its lowest level.
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Prosperity
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Consumer spending is brisk; growth in services sector.
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Recession
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Consumers focus on basic, functional products.
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Recovery
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Consumer purchasing power increases.
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Inflation
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Devalues money by reducing the products that can be purchased through persistent price increases.
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Deflation
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A freefall in business profits, lower returns on most investments, widespread job layoffs.
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Ethics in promotion
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Truth in advertising is the bedrock of ethics in promotions. EX. If I am told my car has an 18 month warranty bumper to bumper, am I pleased if the dealer finds a reason NOT to repair my vehicle?
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Ethics in distribution
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Distribution is the total number and classes of trade that sell your products.
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Minimum Advertised Price (MAP)
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Lowest price a retailer can sell an item for.
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Unilateral Pricing Policy (UPP)
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This is the legal policy that sets a limit to how cheap a retailer can sell a certain product to preserve worth.
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Why do companies use E-marketing?
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Reduce costs.
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E-commerce
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Simply a word that describes a wide range of business activities that take place via Internet applications.
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E-marketing
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Creating, distributing, promoting, and pricing goods and services over the Internet or through digital tools.
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Marketing website
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Main purpose is to increase purchases by visitors, showcases all product categories and products within the categories. -Example: Walmart.com
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Corporate website
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Designed to increase a firm’s visibility, promote product, and provide information, showcases technology, philanthropy, Corporate Governance, Community involvement. -Example: Boeing.com
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Electronic Data Interchange (EDI)
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Exchange of sales information between buyers and sellers, cuts paper flow, speeds the order cycle, and reduces errors, allows companies to set production schedules to better match demand.
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What does proprietary mean?
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It means it is owned.
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Extranet
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Used by external customers, suppliers, or other authorized users, secure because there is proprietary information contained within, accessible through the company’s website with security.
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Intranet
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Secure internal networks that help companies share information among employees.
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Private exchanges
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A secure website at which a company and its suppliers share all types of data related to e-marketing. Sometimes called c-business
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What are some challenges in E-Marketing?
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1. Pricing, Promotions (bundling), Product Mix. 2. With regard to copyright issues, it is normally involving a platform holder (itunes) or an artist.
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What do you need for a website?
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1. Broaden company’s customer base. 2. Provide immediate access to current product line(s). 3. Accept and process orders. 4. Offer personalized customer service.
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Promotions on web
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1. Banner ad 2. Pop-up ad 3. Point-of-view 4. Search 5. Display ads 6. Online coupons
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Most utilized web promotion?
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Display Ads
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Assessment of site effectiveness
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Web-to-store shoppers -Consumers who use the Internet as research tool and then pick up at store Click-through rate -Percentage of people presented with a banner ad who click on it Conversion rate -Percentage of visitors to a Web site who make a purchase Engagement -Amount of time users spend on sites

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