Principles Of Marketing Ch.1, 3, 4, & 9

Front 1

Marketing

Back 1

the process of creating, distributing, promoting & pricing goods, service & ideas to facilitate satisfying exchange relationships with customers & develop & maintain favorable relationships wih stakeholders in a dynamic environment

Front 2

Marketing Mix

Back 2

product, distribution, promotion & pricing; they decide what type of each variable to use & in what amounts, a primary goal of marketing manager is to maintain the right mix of these elements to satisfy customer needs for a general product type

Front 3

Marketing Strategy

Back 3

the variable that a company chooses to market its product with

Front 4

The product variable

Back 4

deals with researching customers' needs & wants &
designing a product (good, service, or idea) that satisfies them; involves
creating or modifying brand names & packaging & it may also include
decisions regarding warranty & repair services

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The distribution variable

Back 5

products must be available at the right time and
through convenient distribution methods

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The promotion variable

Back 6

refers to activities used to inform individuals or
groups about the organization & its existing products: promotional activities
can also educate customers about product features or urge people to take a
particular stance on a political or social issue

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The price variable

Back 7

relates to decisions & actions associated with
establishing pricing objectives & policies & determing product prices; this is
a critical component & also the easiest variable to manipulate

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Concept of exchange

Back 8

the provision or transfer of goods, services, or ideas in return
for something of value. Any product (good, service, or idea) may be involved in a
marketing exchange

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Conditions for exchange

Back 9

2+ individuals, groups, or organizations must participate, and each must
possess something of value that the other party desires; The exchange should provide a benefit or satisfaction to both parties; Each party must have the confidence in the promise of 'something of value'
held by the one; To build trust, the parties to exchange must meet expectations

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Target Market

Back 10

specific group of customers that may be a vast number of people or
a relatively small group that organizations focus their marketing efforts on

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Marketing Concept

Back 11

a philosophy that an organization should try to provide
products that satisfy customers needs through a coordinated set of activities that also
allows the organizaion to achieve its goals; customer satisfaction is the major focus

Front 12

Evolution of marketing concept (production)

Back 12

1850-1920 the industrial revolution
made it possible to produce goods more efficiently thanks to the discoveries of
electricity, rail transportation, division of labor, assembly lines & mass production.
Products poured into the marketplace

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Evolution of marketing concept (sales)

Back 13

1920-1950; strong demand for products
subsided and businesses realized they would have to "sell" products to buyers;
businesses viewed sales as the major means of increasing profits & came to adopt a
sales orientation, they believed personal selling, advertising, & distribution were the
most important marketing activities

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Evolution of marketing concept (marketing orientation)

Back 14

1950s- present day
businesses began to realize that they must first determine what customers want &
then produce these products rather than making the products first & then convincing
people that they needed to buy them. A market orientation requires an organization-
wide commitment to researching & responding to customer needs

Front 15

Relationship marketing

Back 15

establishing long-term, mutually beneficial buyer-seller
relationships through the creation of more satisfying exchanges by focusing on value

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Customer relationship management (CRM)

Back 16

focuses on using information about
customers to create marketing strategies that develop & sustain desirable customer
relationships; organizations attempt to increase long-term profitability by building
customer loyalty, which results from increasing customer value

Front 17

Concept of Value

Back 17

a customer's subjective assessment of benefits relative to cost in
determining the worth of a product; it is important in long-term customer
relationships

Front 18

Environmental scanning

Back 18

the process of collecting information about forces in the
marketing environment; it involves observation, secondary sources (business, trade,
government, & general-interest publications) & marketing research; it gives
companies an edge over competitors by allowing them to take advantage of current
trends, however companies must know how to use this information in the strategic
planning process. The internet is a common tool for environmental scanning

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Environmental analysis

Back 19

the process of assessing and interpreting the information
gathered through environmental scanning; a manager evaluates the information for
accuracy, tries to resolve inconsistencies & can assign significance to the findings,
this allows the manger to identify potential threats & opportunities linked to
environmental changes.

Front 20

brand competitors

Back 20

firms that market products with similar features &
benefits to the same customers at similar prices

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product competitors

Back 21

firms that compete in the same product class but
market products with different features, benefits, & prices

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generic competitors

Back 22

firms that provide very different products that solve
the same problem or satisfy the same basic customer need

Front 23

total budget competitors

Back 23

firms that compete for the limited financial
resources of the same customers

Front 24

Monopoly

Back 24

a competive structure in which an organization offers a product
that has no close substitutes, making that organizaion the sole source of
supply

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Oligopoly

Back 25

a competitive structure in which a few sellers control the supply
of large proportion of a product

Front 26

Monopolistic Competition

Back 26

a competitive structure in which a firm has
many potential competitors & tries to develop a marketing strategy to
differentiate its product

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Pure competition

Back 27

a market structure characterized by an extremely large
number of sellers, not strong enough to significantly influence price or
supply

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Buying power

Back 28

resources (money, goods, services) that can be traded in an exchange
& enable the individual to make purchases

Front 29

Components of buying power

Back 29

the major financial sources of buying power are
income, credit, & wealth

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Income

Back 30

amount of money received through wages, rents, investments,
pensions, & subsidy payments for a given period

Front 31

Disposable income

Back 31

money left over after tax payments, that
is used for spending or saving; this is what marketers are most
interested in

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Discretionary income

Back 32

disposable income left over after an
individual has bought the basic necessities of food, clothing &
shelter; people use this to purchase entertainment, vacations,
automobiles, education, pets, furniture, & pets

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Credit

Back 33

enables people to spend future income now or in the near future

Front 34

Wealth

Back 34

the accumulation of past income, natural resources, & financial
resources

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Regulatory agencies and marketing activities

Back 35

Regulatory agencies influence
product development, pricing, packaging, advertising, personal selling, &
distribution. Of all the federal regulatory agencies, the federal trade commission
(FTC) most heavily influences marketing activities; it allocates a large portion of
resources to curbing false advertising, misleading pricing, & deceptive packaging, &
labeling

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Procompetitive legislation

Back 36

laws designed to preserve competition, most were
enacted to end various antitade practices

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Sherman Antitrust Act

Back 37

was passed in 1890 to prevent businesses from
restraining trade & monopolizing markets

Front 38

Examples of illegal anti-competitive practices

Back 38

stealing trade
secrets or obtaining other confidential information from a competitor's
employees, trademark & copyright infringement, price fixing, false
advertising, deceptive selling methods ( bait & switch) and false
representation of products

Front 39

Consumer protection legislation

Back 39

since the mid-1800s lawmakers have passed
laws to prohibit adulteration of food & drugs, these types of laws became popular at
the federal level in the mid 60s & early 1970s; most deal with customer safety (food &
drug acts) & prohibit the sale of various hazardous products, some require that
information about specific products be put on its labels

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Self-regulation

Back 40

in an attempt to be good corporate citizens & prevent government
invtervention, some businesses try to regulate themselves; many were established
to stop or stall the development of laws & governmental regulatory groups that
would regulate the association's marketing practices; the best-known self regulatory
agency is the Better Business Bureau (BBB)

Front 41

Technology assessment

Back 41

a procedure where managers try to forsee the effects of
new products & processes on their firm's operations, on other business
organizations, & on society in general; with information obtained through a
technology assessment, management tries to estimate whether benefits of adopting
a specific technology outweigh costs to the firm & society at large

Front 42

Socioeconomic changes

Back 42

our population is getting older so businesses are taking a
proactive response to that; the U.S population aging is detrimental to certain
entertainment industries; phamaceutical companies however, are benefitting from
this. Bryan/College station is dominted by a youthful market because of the large
number of students. With a 40% divorce rate in the U.S right now cultural "family"
values are changing

Front 43

Marketing citizenship

Back 43

the adoption of a strategic focus for fulfilling the economic,
legal, ethical, & philanthropic social responsibilities expected by stakeholders

Front 44

Stakeholder Orientation

Back 44

when companies consider the diverse perspectives of
stakeholders in their daily operations & strategic planning; this is an important
element of social responsibly

Front 45

Marketing Ethics

Back 45

principles & standards that define acceptable marketing
conduct as determined by various stakeholders (including the public, government
regulators, private-interest groups, consumers, industry, & the organization itself)

Front 46

Cause-Related Marketing

Back 46

the practice of linking products to a particular social
cause on an ongoing or short-term basis

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Strategic Philanthropy

Back 47

the synergistic use of oganizational core competencies &
social benefits; it involves both financial & non-financial contributions to
stakeholders but also benefits the company

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Green marketing

Back 48

a strategic process involving stakeholder assessment to
create meaningful long-term relationships with customers while
maintaining, supporting, & enhancing the natural environment

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Consumerism

Back 49

the effects of independent individuals, groups, &
organizations to protect the rights of consumers, now it is easier than
ever before for customers to share their opinions thanks to the internet.
Four basic consumer rights were drafted by president JFK, they were:
right to safety, the right to be informed, the right to choose, & the right
to be heard

Front 50

Community Relations

Back 50

individual communities expect marketers to
make philanthropic contributions to civic projects & institutions &
to be "good corporate citizens", corporate philanthropy is on the rise,
companies can impove their community's quality of life through
employment opportunities, economic development, & financial
contributions to educational, healthy, cultural & recreational causes

Front 51

Individual factors

Back 51

people's won values & principles of right or wrong
which they learn through socialization by family members, social groups,
religion, & formal education

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Opportunity

Back 52

conditions that limit barriers or provide rewards to those
who act unethically

Front 53

Organizational relationships

Back 53

ethical choices in marketing are often made
jointly and are based on what is learnt from others in the organization, this
is highly influenced by organizational culture & structure. The chief
executive or vice president sets the ethical tone for the entire
marketing organization. Coworkers' influnce on an individual's ethical
choices depends on the person's exposure to unethical behavior, the more
a person is exposed to unethical behavior, the more likely they are to
engage in unethical behavior. Organizational relationships are the most
influential factor in whether a person will act unethically or not

Front 54

Improving ethical conduct

Back 54

it is possible to improve ethical conduct in an organization
by hiring ethical employees & eliminating unethical ones, & by improving the
organization's ethical standards; if top management develops & enforces ethical &
legal compliance programs to encourage ethical decision making, it helps
individuals make better decisions

Front 55

Cultural, social, ethical forces

Back 55

marketing activities are influenced by beliefs &
values regarding family, religion, education, health, & recreation. Local
preferences, tastes & idioms can all prove complicated for international marketers.
Sometimes marketing is mistranslated & it can be difficult to transfer marketing
symbols, trademarks, & logos. Cultural differences affect marketing negotiations
between international companies. Consumer preferences from products; therefore
when products are introduced from one nation into another, acceptance is far more
likely if similarities exist between the 2 cultures. The use of payoffs & bribes is
common in many other countries, because U.S trade & corporate policy (& U.S law)
prohibits direct involvement in payoffs & bribes, U.S firms may have a hard time
competing with foreign firms.

Front 56

import tariff

Back 56

a duty levied by a nation on goods bought outside its borders
& brought into the country

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quota

Back 57

a limit on the amount of goods an importing country will accept for
certain product categories in a specific period of time

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embargo

Back 58

a government's suspension of trade in a particular product or
with a given country, usually for political, health, or religious reasons

Front 59

exchange controls

Back 59

government restrictions on the amount of a particular
currency that can be bought or sold, these can limit international trade

Front 60

Balance of Trade

Back 60

the difference in value between a nation's exports and is imports;
countries may limit imports to maintain a favorable balance of trade

Front 61

GDP (Gross Domestic Product)

Back 61

the market value of a nations total output of goods &
services for a given period; an overall measure of economic standing, the U.S. has the
largest GDP of all the world

Front 62

Political & Legal forces

Back 62

a country's legal & regulatory infrastructure is a direct
reflection of the political climate in the country; the political climate, political
officials & trade agreements directly affect legislation & regulation; a nation's
political system, laws, regulatory bodies, special-interest groups, and courts all
have an impact on international marketing

Front 63

Intellectual property rights

Back 63

the copyrighted or trademarked ideas & creative
materials developed to solve problems, carry out applications, educate, & entertain
others; the internet has created many issues with this. In many Asian countries,
piracy laws are not truly enforced like in the U.S; counterfeit software, books, music,
& designer products can be found almost anywhere

Front 64

value equation

Back 64

Customer benefits minus customer cost

Front 65

True customers

Back 65

Customers who are glad they have done business with you after they have done business with you

Front 66

Business cycle

Back 66

Prosperity, recession, depression, and recovery

Front 67

Willingness to spend

Back 67

An inclination to buy because of expected satisfaction from a product, influenced by the ability to buy and numerous psychological and social forces

Front 68

Social responsibility

Back 68

an organization’s obligation to maximize its positive impact and minimize its negative impact on society

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Pyramid of social responsibility

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Philanthropic, ethical, legal, & economic

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natural environment

Back 70

consumers insisting not only on a good quality of life but on a healthful environment so they can maintain a high standard of living during their lifetimes

Front 71

Social Responsibly Issues

Back 71

Natural environment, Consumerism, & Community Relations

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Sociocultural Forces

Back 72

The influences in a society and its culture(s) that change people’s attitudes, beliefs, norms, customs, and lifestyles

Front 73

Ethical Issue

Back 73

An identifiable problem, situation, or opportunity requiring a choice among several actions that must be evaluated as right or wrong, ethical or unethical.

Front 74

Nature of marketing ethics (Factors in ethical decision-making)

Back 74

individual factors, organizational relationships, & opportunity

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Organizational Culture

Back 75

A set of values, beliefs, goals, norms, and rituals that members of an organization share

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Codes of Conduct

Back 76

Formalized rules and standards that describe what the company expects of its employees

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International Marketing

Back 77

Developing and performing marketing activities across national boundaries

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Trading Company

Back 78

A company that links buyers and sellers in different countries

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Licensing

Back 79

An alternative to direct investment that requires a licensee to pay commission or royalties on sales or supplies used in manufacturing

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Franchising

Back 80

A form of licensing in which a franchiser, in exchange for a financial commitment, grants and franchisee the right to market its product in accordance with the franchiser’s standards.