exam 1 Flashcards
what does marketing require
market, market offering, exchange between 2 willing parties
marketing
activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners and society at large
marketing philosophies
- production philosophy
- product philosophy
- sales philosophy
- marketing philosophy
- societal philosophy
production philosphy
focus on products, works well when demand > supply, produces most for least money $
product philosophy
focus on producing highest quality goods, maybe not what customers want
sales philosophy
push & hard selling (door to door)
marketing philosophy
meet companies long-term goals by serving customers needs & wants
societal philosophy
should be goof for society too
what is the core marketing philosophy?
companies exist to satisfy customers wants and needs better than competition
what are the 4 P’s of marketing?
product - create value
price - capture value
place - delivering value
promotion - communicating value
customer value
relationship of benefits to cost, what customers get for what they give
customer satisfaction
customers evaluation if product/service meets expectations
relationship marketing
develop and enhance long term relationship with customer
strategic planning
process of creating and maintaining a fit between the organizations objectives and resources and the changing market opportunities
ansoffs strategic opportunity matrix
market penetration, product development, market development, diversification
strategic business unit (SBU)
independently operated diversions that make up a parent company
BCG portfolio growth matrix
- stars- high growth rate & high market rate
- question marks - high growth rate & low market share
- cash cows- low growth rate & high market share
- dogs - low market & growth rate
portfolio matrix by GE
- has more levels and axes than BCG
- low= harvest/divest
medium= cautiosly invest
high= invest/grow
Swot Analysis
Strength (internal)
Weakness (internal)
Opportunity (external)
Threats (external)
ethics
principles & values that generally govern the conduct of indivudual/group
laws
rules that a country/community recognized as regulating actions that are enforced with penalties
preconventional morality
childlike; based on reward/punsihment
conventional morality
teens; concern for societal expectations & legality
post conventional morality
mature; judge themselves
company ethics
create company code of ethics to match employee short term goals and company long term goals
corporate social responsibility pyramid
philanthropic –> ethical –> legal –> economic
sustainability
focus on long term effects rather than short-term profits
triple bottom line
people, planet, profits
cause related marketing
monetary/donation, no risk
corporate political advocacy
publicly taking a stand; controversial and risky
green marketing
focus on environment (recycling)
green washing
deceptive marketing to seem more environmentally friendly
marketing environment
all the factors that influence a company’s ability to create and maintain successful marketing strategies and customer relationships
environmental factors that affect marketing
social factors- american values
demographic- diff generations
growing ethnic markets- hispanic, african, asian
economics- income and purchasing power
technological- research innovation
political and legal- FDA, laws
competitive- global competition
global marketing
must understand, adapt, and serve to other countries
what are some forces affecting the global market?
- multilateral trade agreements
- transportation & communication
- converging market needs and wants
product development costs
exporting
selling goods produced in one country to another
licensing
contract where licensor makes asset available to others for royalties or fees
franchising
operating a business developed by a franchisor in exchange for fee/adherence to policies
joint ventures
partners start shared ownership of new business
direct investment
high risk, high potential; greenfield or acquisition
global marketing mix
- standardized approach- same product and promotion
- promotion adaptation- same product, modified approach
- product adaptation- adapt product to local use but still same concept
- product invention- dual adaptation to change for legal/cultural reasons
fishbein model
looks at both importance of attributes and brand performance
disjunctive model
focus on only important attributes
extensive decision making
lots of research because product may be expensive or unfamiliar
limited decision making
moderate research, common but not frequently bought
routine response behavior
no search at all; familiar and lower cost
culture
set of values & norms associated with a nation
subculture
politics, religion, musics
social class
group with similar income and status
social influences
- reference groups - friends and role models
- opinion leader- lots of influence
- family- most influential
individual influences
age, stage of life, gender and personality
selective exposure
noticing some things but ignoring others
selective distortion
twisting info that conflicts with your beliefs
selective retention
only remembering information that matches beliefs
maslows needs hierarchy
pshysiological/basic, safety, social, esteem, self actualization
BTB marketing
business to business; do not buy for their own consumption
fewer, larger customers, geographically concentrated, no middle man
derived demand
demand for raw materials used for production is based on demand for producers end product
inelastic demand
demand for product doesn’t fluctuate, even if price changes
fluctuating demand
changes in demand for end products = a lot of demand for raw materials
