McGraw Hill Marketing 1, 2, and 3

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McGraw Hill Marketing 10th edition chapters 1, 2, and 3

stakeholders

employees, shareholders, board of directors, suppliers, distributors, creditors, union, government, local communities and customers

mission

based on the core values, a statement of the org's function in society

foundation of an org's marketing strategy?

a clear understanding the industry it's in

organization

legal entity of people who share a common mission

environmental scanning

continually gathering outside info to interpret trends

environmental trends arise from which sources?

environmental forces

micromarketing

how an org directs its marketing activities and allocates its resources to benefit its customers

ultimate consumer

the buyers who use the product bought for personal use

organizational buyers

people in charge for buying products and services for orgs., businesses, and government

utility

benefits, or customer value received by users of the product

4 types of utility

form, place time, possession

form utility

production of good or services

place utility

having an offering available where needed

time utility

having an offering available when needed

possession utility

value of making an item easy to purchase

marketing program

using learned information from customer, then integrating the info to the marketing mix to provide a good, service, or idea to potential customers

relationship marketing

linking an org to its individual customers, employees, suppliers and other partners for their mutual long-term benefit

three successful ways to deliver customer value

offer best product, offer best price, offer best service

customer value

the unique combination of benefits buyers that include convenience, on-time delivery and both before and after sale service, at a specific price.

what has prompted many successful US firms to focus on customer value

an intense level of global competition

what are the uncontrollable environmental forces?

social, economic, technological, competitive, regulatory

social forces

what people want and need

economic forces

expanding or contracting economy

technological forces

changing technology

competitive forces

actions that competitors take

regulatory forces

government restrictions

what are the 4 P's?

the controllable marketing mix factors: product, price, promotion, place

target market

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

market

potential customer, who possess the desire and ability to buy a specific offering

want

a need that is shaped by knowledge, culture and personality

marketing

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

How does marketing serve both the buyer and seller?

it discovers the needs/wants of prospective customer and satisfies them

exchange

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

who is responsible for establishing the goals of a business?

management

what is the marketing department of a business responsible for?

facilitating relationships, partnerships and alliance with the org's customer, shareholders, suppliers and other orgs

what is needed for marketing to occur

2 or more parties with unsatisfied needs, the desire and ability to be satisfied, a way for them to communicate and something to exchange

what are Mcmath's 2 key suggestions to prevent the failure of a new consumable product?

focus on the customer's benefit and learn from the past

need

when a person feels deprived of a basic necessity like food, clothing or shelter

societal marketing concept

the view that orgs should satisfy the needs of customers in a way that provide for society's well being

What are the 4 stages of manufacturers' history in the US?

production era, sales era, marketing concept era, customer relationship era

production era

from the beginning of US history until the 1920's. goods were scarce and buyers were willing to accept anything the could get their hands on

sales era

from the 1920's-1960's. Manufacturers could start making more than buyers could consume. competition grew and firms started hiring salespeople to find new buyers.

marketing concept era

started in the 1950's. the idea that an org should satisfy the needs of consumers while also achieving the org's goals. GE introduced this concept.

customer relationship era

started in the 1980's. firms sought to continuously satisfy the high expectations of customers.

customer relationship management (CRM)

the process of identifying potential customer, understanding them intimately and developing a positive perception of the org so that people will choose them

what does crm require

involvement and commitment of the managers and employees and an application of information, communication and internet technology

macromarketing

the study of the aggregate flow of a nations goods and services to benefit society

offerings

products, services, or ideas that create value for both the org and its customers

organizations can be divided into:

business firms and non-profit organizations

business firm

privately owned org created to make profit to survive

non-profit organization

non-governmental organization that serves its customers but does not have profit as its goal

profit

money left after a business firm's total expenses are subtracted from its total revenues

Industry

organizations that develop similar offerings

strategy

an org's long term course of action designed to deliver a unique customer experience while achieving its goals

corporate level strategy

where top management directs over all strategy for the entire org

strategic business unit (SBU)

a unit of an org that markets a set of related offerings to a clearly defined group of customers

functional level strategy

specialized departments of a business that create value for the org

what are the different departments of the functional level?

information systems, finance, research and development, marketing, manufacturing, human resources

cross functional teams

teams that are formed to develop marketing programs for new offerings or for improving existing offerings. accountable for achieve a task and set performance goals.

planning gap

the difference between projected goals and actual results of a current goal

marketing tactics

detailed decisions key to the success of marketing strategies

marketing strategy

the means by which a marketing goal is to be achieved

what are the 3 steps of the planning phase of the strategic marketing process?

SWOT, market-product goal setting, marketing program

market segmentation

putting prospective customers into groups that have similar needs and will react similarly to marketing action

SWOT

strength weaknesses, opportunities, threats. identifies critical strategy-related factors

strategic marketing process

allocating the marketing mix resources to reach its target market

what are the 4 market-product strategies?

market penetration, market development, product development, diversification

market penetration

increase sales of current products in current markets

market development

selling current products to new market

product development

selling new products to current market

diversification

selling new products to new market

diversification analysis

a told that helps a firm search for growth opportunities from among new and current markets and new and current products

dogs

low share of slow growth markets. although it can sustain, it never really wins

question marks

low share of high growth markets. a lot of cash to maintain market share

stars

high share of high growth markets that needs extra cash to finance its own growth. when it slows it turns into cash cows

cash cows

high share of low growth markets. SBU's that generate large amounts of cash.

business portfolio analysis

a tool that quantifies performance measures and growth targets to analyze SBU's. a method to set a direction for a firm

competencies

skills, technologies and resources, which distinguish it from other orgs and provide customer value

points of difference

characteristics of a product that make it superior to competitive substitutes

strategic direction is based on what 2 questions?

where are we now? where do we want to be?

marketing plan

a road map for the marketing activities for a specified future time period

marketing metric

a variable in the marketing dashboard

marketing dashboard

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

goals/objective

a statement of an accomplishment of a task to be achieved

business model

the strategy an org develops to provide value to the customer it serves

organizational culture

a set of values, attitudes and norms shared among members of an org

demographics

describing a population according to selected characteristics

when were baby boomers born?

between 1946-1964. interest in health, wellness and appearance

generation x

born between 1965-1976. self-reliant, supportive of racial and ethnic diversity, and better educated. focus of caution, pragmatism and traditionalism.

generation y

born between 1977-1994. contemporary culture, optimistic and passionate about environment.

blended family

when divorced people get remarried and form a household

multicultural marketing

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

culture

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

marketspace

information- and communication-based electronics exchange environment

electronic commerce

electric communication in the inventory, exchange, advertisement, distribution and payment of goods and services

intranet

internet based network within an organization

extranet

internet-based technology to communicate between an org and the outside

what factors drive competition?

entry, bargaining power of buyers and suppliers, existing rivalries, substitution possibilities

what are some forms of barriers to entry?

capital requirements, advertising expenditure, product identity, distribution access, cost to customers who are switching

monopolistic competition

many sellers with substitutional products (i.e. coffee and tea)

pure competition

many sellers with similar products

oligopoly

few companies control majority of sales (i.e. wireless providers)

pure monopoly

only one firm sells the product

value consciousness

concern for obtaining the best quality products

consumerism

started in the 1960's. increase influence of customers on the institution. (i.e. demand for environmental demands)

technology's impact on customer value

cost of technology is plummeting so customers focus on quality, services and relationships

sherman antitrust act

1890. no monopolies. no conspiracies in restraint of trade

clayton act

1914. supplemented sherman act because it was too value. forbids actions that lessen competition.

robbinson-patman act

1936. unlawful to discriminate in prices charged to different purchasers of the same product from the suppliers.

the copyright law

gives the author of a literary, dramatic, artistic or musical work the exclusive right to print, perform or copy

lanham act

1946. a company must register its trademarks.

doppleganger

misuse of trademarks

federal dilution act

1995. cannot use trademark on a noncompeting product. (i.e. "cadillac" brushes)

exclusive dealing

an arrangement a manufacturer makes with a reseller to handle only its products and not those of competitors. illegal under clayton act.

requirement contracts

require a buyer to purchase all or part of its needs for a product from one seller for a time period.

exclusive territorial distributorships

the manufacturer grants a distributor the sole rights to sell a product in a specific geographical area.

tying arrangement

a seller requires the purchaser of one product to also buy another item in the line. illegal

FTC

federal trade commission, created by the FTC act of 1914 to monitor promotion and advertising aspects of marketing

what are the FTC's powers?

issue cease and desist orders and order corrective advertisement

self-regulation

an alternative to government control, where an industry attempts to police itself.

2 problems of self-regulation

non-compliance by members and enforcement, and if it is too strong it may violate the robbinson-patman act.

BBB

Better Business Bureau. the best know self-regulatory group

trademark law revision act

1946. a change to the lanham act, secure rights ti a name before actual use by declaring an intent to use the name

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