Exam 1 review Flashcards
Learn ch 2
The foundation of any marketing plan is
Mission statement
The mission statement answers what question
What business are we in
Marketing myopia
Defining a business in terms of goods and services rather than in terms of the benefits customers seek.
Marketing
The activity set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
The 4 p’s
Product, Price, Place, Promotion
Step 1 for creating value for customers
Understand the market and consumer wants and needs
Step 2 for creating value for customers
Design a customer- driven marketing strategy
Step 3 for creating value for customers
Create a marketing program to deliver superior value
Step 4 for creating value for customers
Build profitable relationship with customers
Market Penetration
increase market share among existing customers
Market development
Attracting new customers to existing products
Product development
Creation of new products for current customers
Diversification
Introducing new products to new markets
External Marketing environment includes?
Demographics, Social change, Economic Conditions, Political and legal factors, Technology, Competition
Ethics
moral principles that govern a person’s or group’s behavior
Legal
Laws put in place by government
Deontological
A theory that states that people should
Adhere to their obligations and duties when analyzing
an ethical dilemma
Utilitarian
The choice that yields the greatest benefit
to the most people is the choice that is ethically correct.
Casualist
Compares a current ethical dilemma with
examples of similar ethical dilemmas and their outcome
Moral Relativists
Person who believe that ethical truths
depend on the individuals and groups holding them.
4 theories of ethics
Deontological, Utilitarian, Casualist, Moral Relativists
Corporate Social Responsibilities (CSR)
Corporate initiative to assess and take responsibility for the company’s effects on the environment and impact on social welfare. The term generally applies to company efforts that go beyond what may be required by regulators or environmental protection groups.
Preconventional
self-centered, decisions based on immediate punishments or rewards. (“Will I get caught or punished?”)
Conventional
loyalty to group or to society most important. (“Is this legal?” & “How will others perceive me?”)
Postconventional
focus on long-run consequences. (“It’s legal, but is it the right thing to do in the long run?”)
Individualism
How can I be different from everyone else
Collectivism
How can I fit in with everyone else
Enter the market
Exporting, Licensing and Franchising, Contract manufacturing, Joint venture/ownership, Direct investment
Exporting
Selling domestically produced products to buyers in another country.
Licensing and Franchising
The legal process whereby a licensor agrees to let another firm use its manufacturing process, trademarks, patents, trade secrets, or other property knowledge.
Contract Manufacturing
Private-label manufacturing by a foreign company
Joint venture/ownership
When a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity
Direct foreign investment
active ownership of a foreign company or of overseas manufacturing or marketing facilities
