Principles Of Marketing

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Marketing

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The activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large

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Exchange

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Trade of things of value between buyer and seller so that each is better off after the trade

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Needed for Marketing

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two or more parties with unsatisfied needs, desire and ability to satisfy the needs, a way for parties to communicate, and something to exchange

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Environmental Forces

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Social, Economic, Technological, Competitive, Regulatory (uncontrollable)

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Need

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when a person feels deprived of basic necessities such as food, shelter, and clothing

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Want

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is a need that is shaped by a person's knowledge, culture, and personality

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Market

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people with both the desire and the ability to buy a specific offering

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Target Market

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one or more specific groups of potential consumers toward which an organization directs its marketing program

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Product

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a good, service, or idea to satisfy the consumer's needs

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Price

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what is exchanged for the product

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promotion

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means of communication between the seller and buyer

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marketing mix

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the four p's that are controllable that can be used by a marketing manager to solve a marketing problem,

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customer value proposition

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which is a cluster of benefits that an organization promises customers to satisfy their needs

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Customer Value

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unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before and after sale service at a specific price

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relationship marketing

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links the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit

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marketing program

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a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers

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Production Era

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goods were scarce and buyers were willing to accept virtually any goods that were available and make do with them (early to 1920s)

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Sales Era

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(1920s-1960s) manufactures found they could produce more goods than the buyers could consume, competition grew and firms hired salespeople to find new buyers

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marketing concept era

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marketing became motivating force, organizations should strive to satisfy the needs of consumers while also trying to achieve the organization's goals

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market orientation

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focuses on continuously collecting information about customers' needs, sharing this information across departments and using it to create customer value

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customer relationship era

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(1980s) firms seek to continuously satisfy the high expectations of customers

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customer relationship management

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CRM, process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace

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customer experience

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internal response that customers ave to all aspects of an organization and its offering

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societal markings concept

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view the organizations should satisfy the needs of consumers in a war that provides for society's well being

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product

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good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value

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Ultimate consumers

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people who use the products and services purchased for a household

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organizational buyers

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manufacturers, wholesalers, retailers, and government agencies that buy products and services for their own use or resale

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utility

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benefits or customer value received by users of the product

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profit

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money left after a business firm's total expenses are subtracted from its total revenues and is the reward for the risk it undertakes in marketing its offerings

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business firm

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privately owned organization

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nonprofit organization

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nongovernmental organization that serves its customers but does not have profit as an organizational goal. goals are operational efficiency or client satisfaction

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industry

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organizations that develop similar offerings create an industry

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strategy

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an organization's long-term course of action designed to deliver a unique customer experience while achieving its goals, marketing sets the direction and looks outward to get the organization there and focused on creating value both for it and the customers

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corporate level

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where top managers direct overall strategy for the entire organization, usual includes board of directors and senior management officers with a variety of skills and experiences that are invaluable in establishing overall strategy

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strategic business unit

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SBU, subsidiary division or unit of an organization that markets a set of related offerings to a clearly defined group of customers, manager set a pacific strategic direction for their businesses to exploit value-creating opportunities

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functional level

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where groups of specialists actually create value for the organization

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department

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refers to these specialized functions such as marketing and finance

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cross functional teams

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consist of a small number of people from different departments who are mutually accountable to accomplish a task or a common set performance goals

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core values

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fundamental, passionate, and enduring principles that guide its conduit over time

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mission

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a statement of the organization's function in society that often identifies its customers, markets, products, and technologies

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mission statement

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should be clear, concise, meaningful, inspirational, and long-term, exhibits the qualities of a good mission, a clear, challenging, and compelling picture of an envisioned future, most have added a social element to reflect an ideal that is morally right and worthwhile

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organizational culture

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set of values, ideas, attitudes, and norms of behavior that is learned and shared among members of an organization

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business

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describes the clear, broad, underlying industry or market sector of an organization's offerings, defined by looking at the set of organizations that sell similar offerings

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business model

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strategies an organization develops to provide value to the customers it serves, ethnological innovation is often the trigger for this business model change

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goals / objectives

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statements of an accomplishment of a task to be achieved often by a specific time

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market share

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ratio of sales revenue of the firm to the total sales revenue of all firms in the industry including the firm itself

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organizational strategies

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vary in two ways, variation by a strategy's level in the organization and the offerings an organization provides to its customer

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marketing dashboard

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visual computer display of the essential information related to achieving a marketing objective

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marketing metric

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measure of the quantitative value or trend of a marketing activity or result

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marketing plan

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is a road map for the marketing activities of an organization for a specified future time period

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competencies

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a company's special capabilities that distinguish it from other organizations and provide customer value

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competitive advantage

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unique strength relative to competitors that provides superior returns often based on quality, time, cost, or innovation

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business portfolio analysis

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technique that managers use to quantify performance measures and growth targets to analyze their firms' strategic business units as though they were a collection of separate investments

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cash cows l

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high relative market share low market growth rate

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stars

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high relative market share high market growth rate

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question marks

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low relative market share high growth rate

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dogs

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low market share low growth rate

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SBUS

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start as question marks and go counterclockwise

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diversification analysis

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technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products

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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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sell current products to new markets

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product development

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selling new products to current markets

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diversification

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developing new products and selling them in new markets, most risky

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strategic marketing process

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an organization allocates its marketing mix resources to reach its target markets, three phases: planning, implementation, and evaluation

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situation analysis

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taking stock of where the firm or product has been recently, where it is now and where it is headed in terms of the organization's marketing plans and the external forces and trends affecting it

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SWOT analysis

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(Strengths, Weaknesses) Internal (Opportunities, Threats) External

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Actions after SWOT

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Build on Strength
Avoid Threat
Exploit an Opportunity
Correct a Weakness

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Market segmentation

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involves aggregating prospective buyers into groups, or segments, that have common needs and will respond similarly to a marketing actions, identifies segments it will focus its efforts on

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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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marketing strategy

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a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it

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marketing tactics

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detailed day to day operational decisions essential to the overall success of marketing strategies

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deviations

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correct negative ones and exploit positive ones

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environmental scanning

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process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends

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social forces

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include the demographic characteristics of the population and its values, changes in these forces have a dramatic impact on marketing strategy

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demographics

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describing a population according to selected characteristics such as age, gender, ethnicity, income, and occupation

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baby boomers

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retiring at a rate of 10000 every 24 hours, born between 1946 and 1964, will be over 65 by 2030, wealthiest generation, interested in health, fitness, retirement housing, financial planning, and physical appearance

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generation x

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born between 1965 and 1976, known as baby bust because children born each year was declining, self-reliant, supportive of racial and ethnic diversity, better educated than baby boomers, not prone to extravagance and likely to pursue lifestyles that blend caution, pragmatism, and traditionalism, collaborative decision makers

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generation y

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born between 1977 and 1994, echo-boom or baby boomlet because of baby boomers having children, also known as millennials, exert influence on music, sports, computers, video games and all forms of communication and networking, interested in distinctive, memorable, and personal experiences, want to creat work-life balance, strong willed, passionate about the environment and optimistic, attracted to purposeful work where they have control

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blended family

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majority of divorced people remarry and mix households

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metropolitan area

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at least 50,000 people in one area

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micropolitan

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at least 10,000 but less than 50,000

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multicultural marketing

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combinations of the marketing mix that reflect on the unique attitudes, ancestry, communication preferences, and lifestyles among different races

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Culture

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set of values, ideas, and attitudes that are learned and shared among members of a group

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value consciousness

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the concern for obtaining the best quality, features, and performances of product or service for a given price

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economic forces

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pertains to the income, expenditures, and resources that affect the cost of running a business and a household

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Macroeconomic conditions

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GDP, unemployment, price changes (inflation and deflation)

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Gross income

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total amount of money made in one year by a person, household, or family unit

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disposable income

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money a consumer has after paying taxes to use for necessities such as food, housing, clothing, and transportation

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discretionary income

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money that remains after paying taxes and buying necessities

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technological forces

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refers to the innovations or inventions from applied science or engineering research

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electronic commerce

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any activity that uses some form of electronic communication in the inventory, exchange, advertisement, distribution and payment of goods and services

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competition

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refers to the alternative firms that could provide a product to satisfy a specific market's needs

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pure competition

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many sellers and they each have a similar product
mostly commodity business (avocado seller and grower)

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monopolistic competition

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many sellers compete with substitutable products within a price range

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oligopoly

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common industry structure occurs when a few companies control the majority of industry sales, tech comps etc.

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pure monopoly

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only one firm sells the products, water and electricity

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barriers to entry

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business practices or conditions that make it difficult for new firms to enter the market

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power of buyers

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exists when there are low costs to switching brands or the product represents a significant share of the buyer's total cost

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power of sellers

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when the product is critical to the buyer and it has built up switching costs

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regulation

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consists of restrictions state and federal laws place on business with regard to conduct of its activities

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sherman anti-trust act

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forbids contracts combinations or conspiracies in restraint of trade and price controlling, actual monopolies or attempts to monopolize any part of trade or commerce, prohibits price fixing

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clayton act

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forbids actions that are likely to lessen competition forbids exclusive dealing which is an arrangement a manufacturer makes with a reseller to handle only its products and not those of competitors

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Robinson patman act

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unlawful to discriminate in prices charged to different purchasers of the same product where the effect might substantially lessen competition or help create a monopoly

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lanham act

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provides for registration of a company's trademarks updated by the trademark law revision allowed companies to secure rights to a name before actual use by declaring an intent to use name

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consumerism

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grassroots movement started to increase the influence power and rights of consumers in dealing with institutions

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madrid protocol

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protection of us trademark rights throughout the world

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self regulation

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industry attempts to police itself

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ethics

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moral principles and values that govern the actions and decisions of an individual or group

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laws

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society's values and standards that are enforceable in the courts

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culture

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set of values ideas and attitudes that are learned and shared among members of a group, socializing force that dictates what is morally right and just, standard are relative to particular societies

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caveat emptor

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let the buyer beware

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consumer bill of rights

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consumers rights to safety, to be informed, to choose, and to be heard

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right to be informed

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marketers have an obligation to give consumers complete and accurate information about products and services

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economic espionage

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clandestine collection of trade secrets or proprietary information about a company's competitors

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bribes / kickbacks

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disguised as gifts, consultant fees, and favors, more common in business-business and government marketing than consumer marketing

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code of ethics

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formal statement of ethical principles and rules of conducts that address contribution to government officials and political parties, customer and supplier relations, conflicts of interest, and accurate recordkeeping

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whistle-blowers

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employees who report unethical or illegal actions of their employers

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moral philosophy

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is learned through the process of socialization with friends and family and by formal education

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moral idealism

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personal moral philosophy that considers certain individual rights or duties as universal regardless of outcome

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utilitarianism

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personal moral philosophy that focuses on the greatest good for the greatest nu,her of people by assessing the cost and benefits of the consequences of ethical behavior

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social responsibility

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organizations are part of a larger society and are accountable to that society for their actions

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profit responsibility

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companies have a simple duty to maximize profits for their owners and stockholders

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stakeholder responsibility

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focuses on the obligations an organization has to those who can affect achievement of its objectives

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societal responsibility

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obligations the organization has to the preservation of the ecological environment and to the general public

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triple bottom line

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recognition of the need for organizations to improve the star of people, the planet, and profit simultaneously if they are to achieve sustainable longterm growth

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green marketing

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marketing efforts to produce promote and reclaim environmentally sensitive products

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cause marketing

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when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products

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social audit

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systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility

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five steps

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-recognition of firm's social expectations
-identifications of a social responsibility cause or program consistent with comp mission
-determination of organizational objectives and priorities for programs and activities
-specification of the type and amount of resources necessary to achieve objectives
-evaluation of social responsibility programs and activities undertake for future involvement

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Sustainable development

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conducting a business in a way that protest the natural environment while making economic progress