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Definition
| extent to which a firm fulfills a customer's needs, desires and expectations |
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| Fosters competition, which drives prices down. when firms develop develop satisfying products, fuller employment and higher incomes can result. |
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| the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. |
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| to satisfy customer needs, must have the right combination of Price, Product, Promotion and Place. |
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| each family produces everything it consumes, so there is no need for exchanges and no marketing is involved. |
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1. It begins with customer's potential needs
2. It involves exchanges
3. Marketing builds a relationship with the customer. |
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| a social process that directs an economy's flow of goods and services from producers and consumers in a way that effectively matches supply and demand and accomplishes the objectives of society. PURPOSE: to overcome the separations and discrepancies of the system. |
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| More about Macro Marketing |
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| Emphasis is on the whole system. Society has heterogeneous supply capabilities and heterogeneous demands for goods. Effective macro marketing delivers the right good at the right place, time, and price. |
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| as a company produces larger numbers of a product, the cost of that product goes down |
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| Discrepancies of Quantity |
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| Producers want to produce in large quantities while consumers want to buy in small quantities. |
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| Discrepancies of Assortment |
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| Producers can produce a narrow variety of products, while consumers want to buy a wide variety. |
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| Producers locate themselves where it is convenient, while consumers are widely scattered. |
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| Consumers may not want to buy at the time when producers want to make a product |
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| Separation of Information |
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Definition
| producers do not know the needs of consumers, where to sell, when and at what price. Consumers don't know whats available from whom, where, when and at what price. |
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| Producers value goods and services in terms of of costs and competitive prices while consumers value utility and ability to pay. |
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| Producers hold title to goods and services that they do not want to consume, consumers want goods and services that they do not own. |
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| 8 Universal Functions of Marketing |
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Definition
| Help overcome these separations and discrepancies. Buying, Financing, Marketing Research, Risk Taking, Selling, Storing, Standardizing and Grading, Transporting. |
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| Bearing the uncertainties that are part of the marketing process. |
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| Marketing Information Function |
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Definition
| collection, analysis, and distribution of all the information needed to plan, carry out, and control marketing activities. |
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| (Middleman) someone who specializes in trade rather than production. |
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| firms that facilitate or provide one or more of the market functions other that buying or selling. Ex: ad agencies, research firms, public warehouses, testing labs, internet providers, transporting services, financial institutions. |
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| exchanges between parties, and the activities that facilitate these exchanges, using information technology.Increases efficiency of macro marketing. |
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| Do all functions need to be used? |
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Definition
| Yes, none can be completely elimnated. Not every firm must perform every function, responsibily for functions can be shifted in a variety of ways, and not all goods and services require all functions at every level of their production. |
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Definition
| Like a plane ride, it doesn't need storing, but storing is required in production and when not in use. |
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| Government decides what is to be produced, how much, by whom, for whom, when, and why. |
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| Characteristics of a Command Economy |
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Definition
| Producers have little choice in what they make, are jsut meeting quotas. Prices don't follow supply and demand. Consumers have limited freedom of choice. Market research, branding and marketing are minimal if they even exist. |
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Definition
| the decisions of the producers and consumers make macro-level decisions for the economy as a whole. In a purely market economy, the consumer decides what will be produced using dollar votes. |
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| Characteristics of a Market Economy |
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Definition
| 1. Price is a measure of value. 2. Greatest freedom of choice. Government supervises by controlling interest rates, money supply, import/export laws, wages, prices, and protecting those who could be exploited. |
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| a time when families sold their surplus output to middlemen. |
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| Firms focus on the production of a few limited products. "If we can make it we can sell it" From Industrial Revolution until 1920's. |
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| firms focused on selling and beating the competition. 1920's-1950's |
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| a time when all marketing activities were controlled by one part of the company to improve short-run policy planning and integrate firm activities. Sales were growing rapidly in the economy and someone was needed to tie together research, purchasing, production, shipping and sales. |
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| a time when marketing people also developed long run plans and whole company effort is centered around the marketing concept. |
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| a total company effort toward customer satisfaction, with profit as a goal. |
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| Making products that are easy and then trying to sell them. Think that customers exist to buy a firms product, not that firms exist to meet customer needs. |
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| Produce it, then get consumers to buy it. |
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| trying to carry out the marketing concept. Find out what customers want and then produce it. |
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| Market or Value Orientation |
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Definition
| understand and create value for customers. Collects info about customer needs, shares info across departments and uses it to create customer value. |
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| Who has been slow to adopt the marketing concept? |
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Definition
| Producers of Industrial Commodities (steel, coal, paper) and service industries (airlines, power companies, banks) |
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| the difference a customer sees between the cost of an item and its benefits. Must be high, should provide it before and after purchase. |
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| Whats good for some individuals and firms may not be good for society as a whole. Ex: fast food |
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| a firm's obligation to improve its positive effects on society and decrease its negative effects. ex: CFCs |
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| MArketing Management Process |
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Definition
| 1. PLANNING marketing activities. 2. Directing the IMPLEMENTATION of these plans. 3. CONTROLLING these planes. |
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| Strategic (Management) Planning |
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Definition
| the managerial process of developing a match between and organizations resources with its market opportunities. Planning for marketing, production, finance, human resources, and other areas. |
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| specifies a homogenous target market and a marketing mix that the firm puts together to satisfy them. |
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| aims at everyone with the same marketing mix |
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| firm tailors their approach to satisy a specific segment |
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| Must be the right one. Includes also branding, packaging and warranties. |
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| Making sure the product is available when and where it is wanted |
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| any system of firms or individuals that participate in the flow of goods from production to consumer. Manager must choose the best channel for the product. |
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| Telling the target market or others in the channel of distribution about the "right" product. Includes personal selling, mass selling and sales promotion. |
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| Activities (not advertising or publicity or personal selling) that stimulate interest by people in the channel. Coupons, samples, contests, catalogs, novelties. |
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| Must consider competition, and customer reactions. |
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| A written statement about market stratgey and time related details for carrying it out. Should have: marketing mix, target market, how long, resources, costs and rate, expected results, control procedures. |
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| expected profitability of a a firm's current and prospective customers over a period of time. |
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| marketing mix is distinct and better than competitors. |
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| strengths, weaknesses, opportunities, threats |
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| trying to increase sales of a current product in a current market |
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| increasing sales by selling present products in a new market |
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| offering new products to present markets |
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| market with broadly similar needs-and sellers offering various, often diverse, ways of meeting those needs. Ex: entertainment seekers can be satisfied in a variety of ways. |
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| a market with very similar needs and very similar products offered. Includes 4 parts: What? To meet what? For Whom? Where? |
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| Naming broad product markets and segmenting them into smaller target markets to meet specific needs and suitable marketing mixes. |
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| Measurable, Substantial, Accessible, Differential, Actionable |
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| Competitive Based Positioning |
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Definition
| includes heirarchal organization, category membership, points of difference. |
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| Example of Heirarchal Organization |
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Definition
Bud Light:
Beverage-Alcoholic Beverage-Beer-Light Beer-Bud Light |
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| Important to state for: new product, to show product belongs |
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| How is brand superior? Stress one benefit in promotion - correlational inferences. |
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| 5 Dimensions that can be tied to a brand: Competence, Ruggedness, Excitement, Sophistication, Sincerity |
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| Approach goes from attribute, to benefit, to more abstract benefit. |
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Definition
providing a reason to believe a benefit in order to enhance competitive based positioning
ex: Lexus shows quality steel frame to enhance benefit that it is high quality |
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