Exam 1 Flashcards
Marketing
managing profitable customer relationships
Marketing formal definition
social and managerial process by which one obtains what they need/want through collecting & exchanging products and value with others
revenue-cost=
profit
value
difference between the benefit the customer gains from owning/using a product and the cost of obtaining the product/service
key stakeholders
employees, consumers, industry associations, media, government & regulatory authorities, local communities, business partners & vendors, and shareholders & inventors
5 conditions of exchange
at least 2 parties
each have something of value the other wants
capable of communication & delivery
free to accept/reject offers
belief that exchange provides mutual benefit/satisfaction
stakeholder
person or entity that has vested interest in your business or project
target markets
specific group of buyers on whom an organization focuses its marketing efforts
4 marketing philosophies
market
sales
production
societal
marketing philosophies
how a business goes about executing the core concepts day to day
strategic planning goal
long-term profitable growth
strategic business units
-have a clearly defined set of competitors
-managers are responsible for developing & implementing their own strategies
-operate like mini & independent businesses
-never share rate of investment (roi) across SBUS
SBU
strategic business unit
dogs
low market share; small/slow growth market; divest or sell your product
question marks
low market share; large/fast growth market; watch products, can go either way
stars
high share; fast growth market; invest
cash cows
high market shares; slow growth market; hold and “milk” as much profit as possible
market planning
designing activities relating to marketing objectives & the changing marketing environment
competitive advantage
efficient production costs
product/service differentiation
target market (niches)
niche market
choosing a target market that is NOT being served by major competitors
business environment
dynamic environment that has a direct influence on how they operate
purchasing power
comparison of income vs. the relative cost of living index (coli) in different geographic areas
inflation
sustained increase in general price level of goods & services in an economy overtime
recession
period of significant economic decline; rise in unemployment, decrease in income/spending, downturn in economy
political/legal
encompass government policies, regulations, and stability, which can impact business operations and strategies
Dodd-Frank legislation
created the consumer financial protection bureau (CFPB) to oversee accounts, loans, mortgages. deals with unfair, abusive, and deceptive practices
Robinson-Patman Act
Prohibits charging different prices to different buyers of merchandise of like grade and quantity; requires sellers to make any supplementary services or allowances available to all purchasers on a proportionately equal basis
Robinson-Patman Act
requires that all pricing differences be justified by cost savings, delivery, or market conditions
FTC
federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce
competitive factors
-rivalry among businesses
-size of competitors
-degree of interdependence within the industry
-large retailers such as walmart, exert large power over suppliers
behavioral norms for marketers
-ensures that MKTG is effective & socially responsible
-builds that with consumers, brand reputation, and prevents legal issues
if it’s legal does it mean it’s ethical?
no
business ethics
moral principles or values, generally govern the conduct
business laws
often address the lowest common denominator of socially acceptable behavior; enforced by courts
self regulation
-voluntary adoption of ethical guidelines
-setting higher standards for oneself
5 types of ethical theories
deontology
utilitarianism
casualist
moral relativism
virtue ethics
bribery &foreign corrupt practices act
make it unlawful to make payments to foreign government officials to assist in obtaining/retaining business
code of ethics
broad; provides a set of guiding principles that affect employee mindset and decision making
stakeholder theory
importance of addressing the intentions of & cheating value for ALL stakeholders
philanthropic marketing
engaging in charitable activities to support brand image, build customer loyalty, and contribute positively to society
cause-related marketing
the cooperative marketing efforts between a for-profit firm and a nonprofit organization
internal data
can also be acquired from retailers using scanner-based data
market research process
identify the problem
plan research design
specify sampling procedures
collect primary data
analyze data
present report
follow up
cost & time considerations
primary MKTG research:
mystery shopping $$$$
experimental research $$
online analytics $$
ethnographic research $$$$
social media monitoring $$
self reported $
observational research $$$$
in-depth interviews $$$$
focus groups $ and $$$$
shopping surveys $
frame error
when a sample drawn from a population differs from the target population
tech-driven market research
utilizes & unlocks the value of these behavioral data sources
