Principles of Marketing Exam Notes

Principles of Marketing Study Guide Mid-term exam F solely 2012 Chapter 1 1. What is Marketing? a. The activity, set of institutions, and wreakes for creating, capturing, communicating, delivering, and exchanging offerings that af bulletproof value for customers, clients, fateners, and inn at large. It requires thoughtful planning with an emphasis on the ethical implications of any of those ends on society in general. 2. Marketing requires Product, Price, Place and Promotions ratiocinations. b.The quartet Ps, or trade mix, argon the controllable set of activities that the watertight uses to respond to the wants of its sharpen commercializes. 3. What is value-based selling? a. Value reflects the relationship of benefits to costs, or what the consumer gets for what he or she gives. In a marketing context, customers seek a fair return in goods and/or service for their hard-earned m peerlessy and scarce time. They want products or services that meet their specific needs or wants and that argon offered at combative prices. 4. Marketing Impacts Various Stakeholders . Supply chain deductners, whether they atomic number 18 manufacturers, wholesalers, retailers, or other intermediaries alike dishonoration or warehousing companies, are involved in marketing to one another. Manufacturers sell merchandise to retailers, but the retailers often have to convince manufacturers to sell to them. 5. Marketing Enriches Society * Our people Committed to excellence, oerzealous about achieving our goals, eagerly embracing new challenges. * Our schema Focused and consistent, delivers sustainable and dependable performance. Our business model Resilient and proven, relevant in all economies, drives long-term health of the partnership. * Our brands Recognized and loved around the world, in potent categories, responsive to advertising and brand building. Chapter 2 6. What is a Marketing system? d. Identifies (1) a firms lay market(s), (2) a link marketing mixit s four Psand (3) the bases on which the firm plans to build a sustainable combative advantage. 7. Building a Sustainable Competitive Advantage e. An advantage over the competition that is not easily copied and thus asshole be keep over a long period of time.A competitive advantage acts like a wall that the firm has built around its position in a market. This wall makes it hard for outside competitors to contact customers inside differently known as the marketers target market. 8. The Marketing Plan f. a compose document composed of an analysis of the watercourse marketing situation, opportunities and threats for the firm, marketing objectives and schema specified in terms of the four Ps, work programs, and projected or proforma income (and other financial) statements.The three major phases of the marketing plan are planning, murder, and control. g. mistreat 1 of the planning phase. The part of the strategic marketing planning forge when marketing executives, in conjunction with other top managers, (1) define the delegation or pile of the business and (2) evaluate the situation by assessing how mixed players, both in and outside the organization, affect the firms potential for success. , marketing executives, in conjunction with other top managers, define the mission and/or vision of the business. (Step 2). In the implementation phase.The part of the strategic marketing planning process when marketing managers (1) identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning (see STP) and (2) implement the marketing mix using the four Ps. , marketing managers identify and evaluate different opportunities by engaging in a process known as segmentation, targeting, and positioning (STP) (Step 3). They then(prenominal) are responsible for(p) for implementing the marketing mix using the four Ps (Step 4). Finally, the control phase. The part of the strategic marketing planning process when managers evaluate the erf ormance of the marketing outline and take any necessary nonindulgent actions. Entails evaluating the performance of the marketing schema using marketing metrics and taking any necessary corrective actions (Step 5). 9. Growth Strategies h. A market penetration s increase dodging that employs the existing marketing mix and cogitatees the firms efforts on existing customers. Such a growth dodging might be achieved by attracting new consumers to the firms up-to-date target market or encouraging current customers to patronize the firm to a greater extent often or buy more merchandise on to each one visit. i.A market development growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international. world-wide expansion generally is riskier than domestic expansion because firms essential deal with differences in government regulations, cultural traditions, supply chains, and language. j. Product development growth strategy that offers a new product or service to a firms current target market. k. A diversification growth strategy whereby a firm craps a new product or service to a market segment that it does not currently serve.Diversification opportunities may be either related or unrelated. In a related diversification growth strategy whereby the current target market and/or marketing mix shares something in common with the new opportunity. In other words, the firm might be able to purchase from existing vendors, use the same distribution and/or management information system, or advertise in the same newspapers to target markets that are similar to their current consumers. l. In an unrelated diversification growth strategy whereby a new business lacks any common elements with the exhibit business.Unrelated diversifications do not capitalize on core strengths associated either with markets or with products. Thus, they would be viewed as being very risky. Chapter 3 10. Why muckle Act Unethically m. All of us vary in the steering we view more complex situations, depending on our ethical seeings. 11. Ethics and collective sociable Responsibility n. Corporate social responsibility refers to the voluntary actions supplyed by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders. o.This notion goes beyond the individual ethics that weve discussed so far, but for a company to act in a socially responsible manner, the employees of the company must also first maintain high ethical standards and have intercourse how their individual closes lead to optimal collective actions of the firm. Firms with strong ethical climates melt to be more socially responsible. 12. A Framework for Ethical decisiveness Making p. 13. Integrating Ethics into Marketing Strategy q. Marketers can introduce ethics at the gravelning of the planning process simply by including ethical statements in the firms mission or vision stat ements. . In the implementation phase of the marketing strategy, when firms are identifying potential markets and how to successfully deliver the 4Ps to them, firms must consider several ethical issues. Chapter 4 14. The Immediate Environment s. t. In the immediate environment, the first factor that affects the consumer is the firm itself. Successful marketing firms focus on satisfying customer needs that match their core competencies. contestation also significantly affects consumers in the immediate environment.It is therefore critical that marketers look their firms competitors, including their strengths, weaknesses, and likely reactions to the marketing activities that their own firm undertakes. Few firms operate in isolation. For example, automobile manufacturers collaborate with suppliers of sheet metal, tire manufacturers, component part makers, unions, transport companies, and dealerships to produce and market their automobiles successfully. Parties that work with the foca l firm are its incorporated partners. 15. Macro-environmental Factors u. Macro environmental factors Aspects of the external environment that ffect a companys business, much(prenominal) as the culture, demographics (age, gender, and race), social issues, technological advances, economic situation, and political/regulatory environment. 16. Corporate Social Responsibility v. Chapter 5 17. The Consumer Decision growth w. x. 18. Factors Influencing the Consumer Decision Process y. The consumer decision process can be captivated by several factors. First are the elements of the marketing mix, which we discuss throughout this book. Second are psychological factors, which are influences internal to the customer, such as motives, attitudes, perception, and learning.Third, social factors, such as family, deferred payment groups, and culture, also influence the decision process. Fourth, there are situational factors, such as the specific purchase situation, a especial(a) shopping situat ion, or temporal state (the time of day), that affect the decision process. 19. Involvement and Consumer buy Decisions z. Consumers plight in two types of get processes/decisions depending on their level of involvement extended line of work solving for high-priced or risky goods and limited problem solving, which includes impulse purchasing and habitual decision making. .Involvement is the consumers interest in a product or service. Chapter 6 20. B2B Markets . 21. The Business to Business Buying Process . 22. Factors affecting the Buying Process . The Buying Center i. The buy middle is a group of people typically responsible for the buying decisions in large organizations. Participants can range from employees who have a formal manipulation in purchasing decisions (i. e. , the purchasing or procurement department) to members of the design police squad that is specifying the particular equipment or raw material needed by employees who impart be using a new machine that is being ordered.All these employees are likely to play different roles in the buying process, which vendors must understand and adapt to in their marketing and sales efforts. ii. One or more people may take on a certain role, or one somebody may take on more than one of the following roles (1) initiator The buying center participant who first suggests buying the particular product or service. , the individual who first suggests buying the particular product or service (2) influencer The buying center participant whose views influence other members of the buying center in making the last decision. the person whose views influence other members of the buying center in making the final decision (3) decider The buying center participant who in the end determines any part of or the entire buying decisionwhether to buy, what to buy, how to buy, or where to buy. , the person who ultimately determines any part of or the entire buying decisionwhether to buy, what to buy, how to buy, or wher e to buy (4) emptor The buying center participant who handles the paperwork of the actual purchase. the person who handles the paperwork of the actual purchase (5) user The person who consumes or uses the product or service purchased by the buying center. , the person who consumes or uses the product or service and (6) gatekeeper The buying center participant who controls information or access to decision makers and influencers. , the person who controls information or access, or both, to decision makers and influencers. . Organizational Culture iii. A firms organizational culture reflects the set of values, traditions, and springer that guide a firms employees behavior. The firms culture often comprises a set of unarticulate guidelines that employees share with one another through various work situations. . Buying Situations In a new buy a purchase of a good or service for the first time the buying decision is likely to be quite involved because the buyer or the buying organiza tion does not have any experience with the item.A modified rebuy refers to when the buyer has purchased a similar product in the past but has unflinching to change some specifications, such as the desired price, quality level, customer service level, options, or so forth. Straight rebuys refers to when the buyer or buying organization simply buys additional units of products that have previously been purchased. A wonderful amount of B2B purchases are likely to fall in the straight rebuy category. Chapter 9 23. The Marketing Research Process . The first step is to define objectives and investigate needs, which sounds so simple that managers often gloss over it.But this step is authoritative to the success of any look for project because, quite basically, the research must answer those questions that are important for making decisions. In the second step, invention the research project, researchers identify the type of data that is needed, whether primary or secondary, on the ba sis of the objectives of the project from Step 1, and then determine the type of research that enables them to collect those data. The third step involves deciding on the data prayer process and collecting the data.The process usually starts with exploratory research methods such as observation, in-depth interviews, or focus groups. The information gleaned from the exploratory research is then used in conclusive research, which may include a survey, an experiment, or the use of scanner and panel data. The fourth step is to analyze and interpret the data and develop insights. The fifth and final step is to develop an action plan and implementation. Although these steps appear to progress linearly, researchers often work reversive and forward throughout the process as they learn at each step. 4. Secondary Data and Primary Data . Primary Data tranquil to address specific research needs. . Secondary Pieces of information that have already been collected from other sources and are rea dily available. 25. Exploratory Research . Attempts to begin to understand the phenomenon of interest, also provides initial information when the problem lacks any clear definition. 26. Conclusive Research . Provides the information needed to confirm preliminary insights, which managers can use to pursue appropriate courses of action.