Term
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Definition
| Explain what marketing is, know what marketers do, understand marketing vocab, describe processes by which firms develop marketing strategies, what variables influence this process, tactics to implement these strategies. Understand how business contexts influence the marketing processes. Understand how marketing relates to other business functions. |
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Term
| Definition of marketing, important elements |
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Definition
The activity for creating, communicating, delivering, and exchanging the offerings that benefit the organization, its stakeholders, and society at large. Managing customer relationships profitably. The creation of mutually beneficial exchanges.
2 People have needs. 2 People can satisfy needs. 2 people can communicate. 2 People have something to exchange. |
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Term
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Definition
| Potential consumers- people with both the desire and ability to buy a specific offering. |
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Term
| What the marketing mix is (4P’s) |
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Definition
| Product, Price, Place, Promotion. |
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Term
| The four orientations to marketing, recognize orientations when described |
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Definition
| Production, Product, Sales (get rid of cars), Market (insurance- tailor to needs) Orientations |
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Term
| Name and describe an emerging orientation to marketing |
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Definition
| Societal Marketing Orientation: Meet the needs of current customers, Preserving / enhancing the ability of future generations to meet their needs, “doing well by doing good” |
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Term
| Describe the typical approach of marketers in the past and the direction that marketing is trending towards from now to the future |
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Definition
Past: Intrusion, Mass advertising, focus on price discounts, gimmicky... production, product, selling orientation.
Now-Future: Customer and value oriented, marketing by attraction, relational oriented (more carefully selected customers, relating more deeply and interactively, let the customer drive the marketing) |
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Term
| Organizations (i.e. business) is a separate legal entity |
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Definition
Business firm- privately owned, earn a profit to survive;
Nonprofit- nongovernmental, goal of operational efficiency or client satisfaction. |
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Term
| The definition of strategy |
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Definition
| A general approach for competing in the marketplace; an organization’s long-term course of action designed to deliver a unique customer experience while achieving it’s goals. |
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Term
| Porter’s 3 strategies, recognize them in a scenario. Make the distinction between 2 cost strategies (cost leadership / cost focused) |
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Definition
1: Cost (cost leadership: cheap materials and labor; cost focused: serve a particular segment efficiently)
2: Differentiation: emphasize points of difference in offering
3: Focus: on relatively narrow segments and develop offerings to meet their needs. |
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Term
| 3 factors that contribute to organization’s strategic approach (know marketing myopia and business model) |
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Definition
1: Mission: Statement of organization’s function in society, identifying: customers, markets, offering
2: Core Values: Typically developed by founder, fundamental and enduring principles that guide conduct over time
3: Business Definition: What business are we in? Marketing Myopia: paying more attention to the specific offerings instead of the benefits and value created.
Business model: the description of how the organization will deliver value and receive payment. |
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Term
| The BCG matrix of business portfolio analysis and Ansoff’s Matrix of growth strategies |
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Definition
BCG: Stars, Question Marks, Cash Cows, Dogs
Ansoff: Product / Market, Current / New= Market penetration, Product development, Market Development, Diversification |
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Term
| The 3 steps in the strategic marketing process and the 2 steps within the planning area |
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Definition
1: Planning (SWOT, Segmentation Targeting & Positioning, Marketing Mix)
2: Implementation, 3: Evaluation |
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Term
| SWOT analysis; segmentation, targeting, and positioning; and marketing mix |
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Definition
Internal: Strengths / Weaknesses, External: Opportunities / Threats
Segmentation: Aggregating prospective buyers into groups
Targeting: selecting one of these segments as focus of marketing actions
Positioning: the image of the offering in target’s mind relative to the competition
Marketing Mix: 4P’s |
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Term
| What environmental scanning is |
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Definition
| Continually monitoring and tracking trends outside of the firm to identify and interpret trends that might impact the firm’s marketing |
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Term
| The 3 forces shaping the marketing environment |
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Definition
Social: demographics of population + values.
Economic: forces relating to income, expenditures + resources
Technological: innovations in the area of applied science or engineering
Regulatory: restrictions that state and federal laws place on the conduct of business. |
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Term
| Trends in world and US population |
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Definition
| Developing country population explosion, Old ppl population increasing, Young population decr, Mid-age plateau |
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Term
| Be able to name cohort descriptions that marketers typically use |
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Definition
Baby Boomers (1946-64): 76m 10000 retire daily, high level of buying power, interested in health, wellness + appearance
Generation X (65-76): Baby Bust, smaller but important, Casual tech friendly, self reliant, highly educated, pragmatic, traditional
Generation Y (77-00) 72m formed in technology, wireless comms, strong willed, passionate about environment, optimistic |
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Term
| The trends in changing values in the US |
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Definition
| Self-esteem, health and fitness, concern for environment and sustainability, value consciousness |
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Term
| How macro-economic changes affect consumer behavior |
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Definition
| Inflation rate vs. income affects buying power of consumers |
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Term
| Three types of consumer income |
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Definition
Gross: total; Disposable: left over after paying taxes for food, housing, transportation, etc.
Discretionary: left over after paying for taxes and necessities (savings) |
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Term
| Impact of technology and how Bill Gates thinks of technological evolution |
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Definition
Technology provides value through development. It can change existing products and the ways they are produced.
“We over predict the impact of technology in the time frame of the next couple of years and under predict the impact of technology in the next 10 years” |
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Term
| Consumerism and a notable consumerist advocate |
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Definition
| A grass roots movement (1960’s) to increase the influence, power, and rights of consumers in the marketplace |
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Term
| What ethics are and the relationship between ethical and legal |
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Definition
Ethics: The moral principles that govern interpersonal relations.
Either Ethical / Not Ethical, and Legal / Illegal.
Ethics: personal moral principles and values. Laws: Society’s values. Enforceable in courts. |
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Term
| Know 4 ethical tools and what they mean, be able to name them |
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Definition
Divine Command: The golden rule, do unto others as you would have them do unto you
Utilitarianism: Individually, maximize utility over time, Group, seek the greatest good for the greatest number
Rights: (KANT) First categorical imperative: universality. Second categorical imperative: Treat people as people
Virtue: A distinctive purpose, essential function- this function determines excellent characteristics or traits. |
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Term
| Opinion of the usefulness of the 4 ethical tools |
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Definition
Divine Command + Utilitarianism: Bad
Rights + Virtue: Good |
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Term
| What a code of ethics is and some of the principles of the marketing code of ethics |
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Definition
| Formal statement of ethical principles and rules of conduct. Full disclosure of information to parties. Attention to conflict of interest. Reject high pressure sales tactics. No predatory pricing. Treat suppliers and clients fairly |
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Term
| Describe what a fiduciary is |
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Definition
| A relationship in which one party is responsible for acting in the best interest of another (vulnerable) person |
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Term
| 5 steps in the consumer purchase process |
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Definition
1: Problem recognition- magnitude of discrepancy between ideal vs. actual state
Perceiving a need: difference must be great enough to impel action.
2: Information search- different sources which are considered more credible influences evaluative criteria
Seeking Value: Personal sources, public sources, market dominated sources, memory
3: Alternate evaluation- what the consideration set is, decision aids, Assessing value
4: Purchase decision- timing and vendor is still important, buying value
5: Post-purchase behavior- 3 consumer states generated by the purchase, what is cognitive dissonance?
Satisfied customers: Repeat customers, tell friends about experience
Dissatisfied customers: Complain to others, product deficiency or oversold = expectations too high
Cognitive Dissonance: “Should I have bought X?” Post purchase psychological tension or anxiety |
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Term
| Influences on these steps: involvement, psychological (maslow’s hierarchy), social influences (opinion leaders, word of mouth, references groups) |
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Definition
Purchase Involvement: Number of brands, sellers, attributes considered, external information sources used, time spent searching.
High involvement: Cars and shit.
Limited: No time or effort.
Routine: frequently purchased products, low priced.
Involvement affects marketing strategy.
Maslow’s Hierarchy: Physical/Physiological, Safety from harm / financial security, Social, Personal/status, Actualization/fulfillment
Opinion Leaders: Individuals who exert direct or indirect social influence over others.
Word of mouth: Influencing of people during conversations. Most powerful and authentic- trustworthy friends.
Reference Groups: People to whom an individual looks as a basis for self appraisal or source of personal standards. 3 types: membership, aspiration, dissociative. |
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