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84 Cards in this Set
- Front
- Back
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What is the definition of marketing?
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A set of processes that benefits an organization by creating, communicating and delivering value to customers.
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What are the necessary conditions for exchange?
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1. There must be at least two 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 believes it is appropriate or desirable to deal with the other party. |
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What is the definition of an exchange/
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People giving up something in order to receive something they would rather have.
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What are the four competing philosophies that strongly influence an organization's marketing process?
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Production Orientation, Sales, Societal Marketing, Market
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What does the production orientation philosophy focus on?
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The internal capability of the firm rather than customer demand.
Key Considerations: efficiency, capacity, capability, resources Ex. What can we produce best? |
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What does the sales orientation philosophy focus on?
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People will buy if aggressive sales techniques are used. High sales=high profit.
* To sales-oriented firms, marketing means selling things and collecting money |
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What does the marketing concept philosophy focus on?
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Focuses on the customers wants and needs while meeting organizational objectives.
* perceived value * competitors can't match * based on customer's decision to purchase the product |
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What does the societal marketing orientation philosophy focus on?
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Not only on customer wants but to serve society's interest.
* didn't have widespread support until 2000s. (eco-friendly movement) |
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What is Sales vs. Marketing focus?
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Sales: Inward, on organization's needs
Market: Outward, on customer's needs |
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What is Sales vs. Marketing firm's business?
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Sales: Selling goods and services
Market: Satisfying customer needs and delivering value |
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Whom is the product directed toward in Sales vs. Marketing?
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Sales: Everybody
Market: Specific groups of people |
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What is the primary goal of Sales vs. Marketing?
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Sales: Profit via maximum sales
Market: Profit via customer satisfaction |
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What is Sales vs. Marketing means to achieve a goal?
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Sales: Primarily intensive promotion
Market: Coordinated marketing and inter-functional activities. |
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Marketers interested in customer value do what 4 things?
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Offer products that perform, earn trust, avoid unrealistic pricing, give the buyers facts
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Define customer value
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The relationship between benefits and the sacrafice necessary to obtain those benefits.
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Define customer satisfaction
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Customers' evaluation of a good or service in terms of whether it has met their needs and expectations
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Define relationship marketing
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A strategy that focuses on keeping and improving relationships with current customers.
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Define empowerment
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Delegation of authority to solve customers' problems quickly-usually by the first person the customer notifies regarding a problem
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Describe four reasons for studying marketing.
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1. Important to society
2. Good career opportunities 3. Important to business 4. Makes consumers more informed |
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Explain financial rational
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Retaining customers is much more profitable than adding new customers
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Defining a firms business is important because it what four things?
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1. Focus on benefits offered instead of “goods/services”
2. Ensures a customer focus 3. Encourages innovation and creativity (new ideas and often customer inspired) 4. Awareness of changes in customer tastes |
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About how much of every dollar is spent on marketing costs?
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about half
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What is a problem with developing products for the average user?
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Few average user exist. Populations are diverse.
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What are the elements of a marketing plan?
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1. Defining Business Mission Statement
2. Performing a situation analyis (SWOT) 3. Defining objectives 4. Delineating a target market 5. Establishing components of the market mix (4 Ps) |
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Define strategic planning
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Finding a fit between the organization's objectives and resources and evolving market opportunities. The basis for all marketing strategies and decisions. Actual and expected performance can be compared.
- most popular management tool |
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Define Marketing Plan
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The document that acts as the guidebook of an organizations marketing activities.
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Define Planning
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The process of anticipating future events and determining strategies to achieve organizational objectives in the future.
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Define Marketing Planning
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Designing activities relating to marketing objectives and the changing marketing environment
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What are the marketing mix or 4 P's?
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Product, place, promotion, price
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Define a mission statement
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A statement of the firm's business based on a careful analysis of benefits sought by present and potential customers an analysis of existing and anticipated environmental conditions
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Define marketing myopia
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Defining a business in terms of good and services rather than in terms of the benefits customers seek.
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Define Strategic Business Unit (SBU)
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A subgroup of a single business or collection of related businesses within the larger organization.
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A mission statement should focus on what?
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the markets the organization is attempting to serve rather than on the good or service offered.
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Define target market
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A group that managers feel is most likely to buy a firm's product.
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Define environmental management
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When a company implements strategies that attempt to shape the external environment within which it operates
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Define component lifestyles
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The practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single, traditional lifestyle
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Define demography
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the study of people's vital statistics such as age, race and ethnicity, and location
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What are the social factors of marketing?
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values, component lifestyle, changing roles of women
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The clayton act, robinson-patman act, wheeler-lea amendments protect who?
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The consumer
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The sherman act, lanham act, celler-kafauver act, hart-scott rodino act, federal trade commission act protect who?
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The marketers
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Declining population growth, rising costs, and shortages of resources have heightened what ?
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U.S. competition
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Define purchasing power
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A comparision of income versus the relative cost of a set stand of goods and services in different geographic areas.
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What is inflation?
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A measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year.
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What is recession?
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A period of economic activity characterized by negative growth, which reduces demand for goods and services.
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What is basic research?
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Pure research that aims to confirm an existing theory or to learn more about a concept or phenomenon.
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What is applied research?
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An attempt to develop new or improved products.
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Consumer Product Safety Commission (CPSC)
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A federal agency established to protect the health and safety of consumers in and around their homes
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Food and Drug Administration (FDA)
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A federal agency charged with enforcing regulations against selling and distributing adultered, misbranded, or hazardous food and drug products
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Federal Trade Commission (FTC)
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A federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce.
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With innovations U.S. companies cant what?
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compete in global markets
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Federal Trade Commission (FTC)
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A federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce.
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With innovations U.S. companies cant what?
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compete in global markets
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What is ethics?
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The moral principles or values that generally govern the conduct of an individual or a group.
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Define morals.
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The rules people develop as a result of cultural values and norms
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What is code of ethics?
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A guideline to help marketing managers and other employees make better decisions.
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What is Foreign Corrupt Practice Act (FCPA)
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A law that prohibits U.S. corporations from making illegal payment to public officials of foreign governments to obtain business rights or to enhance their business dealings in those countries.
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Corporate social responsibility (CSR)
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a business's concern for society's welfare
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Sustainability
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The idea that socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as opportunities to build profits and help the world at the same time.
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Pyramid of corporate social responsibility
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a model that suggests corporate social responsibility is composed of economic, legal, ethical, and philanthropic responsibilities and that the firm's economic performance supports the entire structure.
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Green marketing
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the development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment.
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Name some factors in attributing to ethical conduct.
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Religion, family, social movements, education
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What are the four components of social responsibility?
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economic(be profitable), legal, ethic, philanthropic. - MOST FUNDAMENTAL IN EARNING PROFIT!!!
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What is global marketing?
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Marketing that targets markets throughout the world.
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What is global vision?
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Recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitor in all markets.
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What is job outsourcing?
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sending U.S. jobs abroad
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What is a multinational corporation?
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A company that is heavily engaged in international trade, beyond exporting and importing.
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What is capital intensive?
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Using more capital than labor in the production process
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What is global marketing standardization?
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Production of uniform products that can be sold the same all over the world.
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What is Mercosur?
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The largest Latin American trade agreement.
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What is Uruguay Round?
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An agreement to dramatically lower trade barriers worldwide; created the World Trade Organization
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What is World Trade Organization (WTO)
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A trade organization that replaced the old General Agreement on Tariffs and Trade (GATT)
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What is General Agreement on Tariffs and Trade (GATT) ?
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A trade agreement that contained loopholes enabling counties to avoid trade barrier reduction agreements.
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Define countertrade
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a form of trade in which all or part of the payment for goods or services is in the form of other goods or services.
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Define dumping
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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
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Define floating exchange rates
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A system in which prices of different currencies move up and down based on the demand for and the supply of each currency
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What is direct foreign investment?
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Active ownership of a foreign company or of overseas manufacturing or marketing facilities.
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What is a joint venture?
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When a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity.
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What is exporting?
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Selling domestically produced products to buyers in other counties.
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Who is a buyer for export?
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An intermediary in the global market who assumes all ownership risks and sells globally for its own account.
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Who is an export broker?
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An intermediary plays the traditional broker's role by brining buyer and seller together.
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Who is an export agent?
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An intermediary who acts like a manufacturer's agent for the exporter; the export agent lives in the foreign market
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What is licensing
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The legal process whereby a licensor allows another firm to uses its manufacturing process, trademark, patents, trade secrets, or proprietary knowledge.
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Define contract manufacturing.
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Private-label manufacturing by a foreign company.
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What are the risk levels for the five methods of entering the global marketplace (Starting with low risk)?
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exporting, licensing, contact manufacturing, joint venture, direct investment
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