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McGraw Hill Marketing 1, 2, and 3

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