Marketing: An Overview

Chapter 1: Overview of Marketing

• Marketing defined as creating, communicating, delivering, and exchanging offerings with value for customers, clients, partners, and society.
• Exchange involves people giving up something to receive something they would rather have
• Production Orientation focuses on internal capabilities rather than marketplace desires.
• Societal Marketing Orientation suggests organizations exist to satisfy customer needs, meet objectives, and preserve society's best interests.
• Marketing Concept is that social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational goals.
• Market Oriented philosophy assumes sales depend on customer decisions, aligning with the marketing concept.
• Sales Orientation focuses on aggressive sales techniques, believing they lead to high sales and profits.
• Customer Value is the balance between benefits and the sacrifice required to obtain those benefits.
• Customer Satisfaction results from the evaluation of goods/services meeting needs and expectations.
• Customer Relationship Management (CRM) is a business strategy to optimize profitability, revenue, and satisfaction by focusing on specific customer groups.
• Teamwork enables collaborative efforts towards shared objectives
• Empowerment involves delegating authority to solve customer problems promptly.
• Relationship Marketing is a strategy to maintain and improve relationships with current customers.
• Big Data used in discovery, interpretation, and communication of meaningful data patterns.

On-Demand Marketing

• On-Demand Marketing delivers relevant experiences across physical and virtual environments throughout the consumer's decision and buying process

Chapter 2: Strategic Planning for Competitive Advantage

• Market Development attracts new customers to existing products, as a marketing strategy
• Strategic Planning is the managerial process of aligning organizational objectives and resources with market opportunities.
• Strategic Business Units (SBUs) are subgroups within a larger organization, consisting of related businesses.
• Market Penetration seeks to increase market share among existing customers.
• Diversification increases sales by introducing new products in new markets.
• Product Development involves creating new products for existing markets.
• Cash Cow in the portfolio matrix, generates more cash than needed to maintain market share.
• Problem Child shows rapid growth but poor profit margins in the portfolio matrix
• Question Mark shows rapid growth but poor profit margins in the portfolio matrix
• Portfolio Matrix allocates resources among products/SBUs based on relative market share and growth rate.
• Star in a portfolio matrix, acts as a fast-growing market leader.
• Dog in a portfolio matrix unit has low growth potential and a small market share
• Planning anticipates future events and determines strategies to achieve organization objectives.
• Market Planning designs activities related to marketing objectives and the environment.
• Mission Statement outlines a firm's business based on customer benefits and environmental analysis.
• Marketing Myopia defines a business by goods/services, not customer benefits.
• Marketing Plan is a guidebook for marketing activities.
• SWOT Analysis identifies strengths/weaknesses (internal) and opportunities/threats (external).
• Environmental Scanning collects/interprets information about external forces affecting the organization.
• Competitive Advantage involves unique features perceived as superior by the target market.
• Cost Competitive Advantage involves being the low-cost competitor while maintaining profit margins.
• Experience Curves show costs declining predictably as product experience increases.
• Product/Service Differentiation Competitive Advantage provides unique and valuable offerings beyond just low prices.
• Niche Competitive Advantage targets and serves a small market segment effectively.
• Marketing Objective says what is to be accomplished through activities.
• Sustainable Competitive Advantage cannot be easily copied.
• Marketing Strategy selects target markets and develops a marketing mix for mutually satisfying exchanges.
• Target Market is the group for which an organization designs and maintains a marketing mix to meet their needs.
• Evaluation gauges the extent to which marketing objectives have been achieved in a specified time.
• Market Opportunity Analysis (MOA) describes market segment size, sales potential, and assesses key competitors.
• Marketing Mix (four Ps) blends product, place, promotion, and pricing.
• Implementation turns the marketing plan assigns action and makes sure they are performed to meet objectives.
• Control provides mechanisms to evaluate results, and correct actions to achieve objectives within budget.
• Strategic Business Unit (SBU) is a subgroup of related businesses within a larger organization.
• Marketing Audit is a systematic evaluation of marketing objectives, strategies, structure, and performance.

Chapter 3: Ethics and Social Responsibility

• Social Control maintains behavioral norms and regulates conflict.
• Ethics are the moral principles that govern individual or group conduct.
• Behavioral Norms set standards for acceptable behavior in society.
• Utilitarian Ethical Theory predicts the consequences of an action.
• Deontological Theory follows obligations and duties when analyzing dilemmas.
• Casuist Ethical Theory compares current dilemmas to similar ones and their outcomes.
• Virtue shows character trait value, which is defined as being good
• Moral Relativism says ethical truths depend on individuals/groups beliefs.
• Morals are rules derived from cultural values and norms.
• Foreign Corrupt Practices Act (FCPA) prohibits U.S. corporations from making illegal payments to foreign officials for business gains.
• Code of Ethics guides marketing managers for better decisions.
• Pyramid of Corporate Social Responsibility shows four responsibilities: economic, legal, ethical, and philanthropic, supported by firm performance.
• Stakeholder Theory says social responsibility pays attention to the interest of every affected stakeholder in every aspect of a firm's operation
• Corporate Social Responsibility (CSR) shows a business's concern for society's welfare.
• Sustainability aims for socially responsible companies to outperform peers by addressing social problems while building profits.
• Cause-related Marketing involves cooperative efforts between for-profit and nonprofit organizations.
• Greenwashing adds minimal green attributes to promote products as environmentally friendly.
• Green Marketing develops products to minimize negative environmental impact.

Chapter 4: The Marketing Environment

• Target Market is the group for which an organization designs and maintains a marketing mix to meet their needs.
• Environmental Scanning is the continual collection/evaluation of information to identify market opportunities/threats.
• Demography studies people's vital statistics (age, race, gender, location).
• Pop culture reflects products and expressions widely accepted by a society.
• Inflation measures the percentage decrease in the value of money annually.
• Purchasing Power compares income versus the cost of goods/services in different areas.
• Diversity includes race, religion, gender, ethnicity, nationality, socioeconomic status, age, and abilities
• Equity has fairness in procedures, processes, and distribution of resources
• Inclusion is an action that includes people of diverse backgrounds
• Recession is a period of decreased economic activity, reducing demand
• Basic Research confirms theories or explores concepts.
• Consumer Product Safety Commission (CPSC) protects consumer health and safety at home.
• Food and Drug Administration (FDA) enforces regulations against adulterated, misbranded, or hazardous products.
• Federal Trade Commission (FTC) prevents unfair competition.
• Applied Research develops new/improved products.
• Environmentalism shows concern for protecting the environment.

Chapter 5: Developing a Global Vision

• Global Marketing targets markets on a worldwide scale.
• Absolute Advantage occurs when a country produces a product/service at a lower cost or is the only producer.
• Principle of Comparative Advantage states countries should specialize in producing and trading what they can produce most efficiently.
• Global Vision recognizes and reacts to international opportunities, using global strategies and manages competitor threats.
• Free Trade allows individuals and businesses to buy/sell internationally without restrictions.
• Protectionism protects domestic industries via barriers like tariffs and quotas.
• Gross Domestic Product (GDP) the total market value of final goods/services produced in a country over time.
• Capital Intensive relies more on capital than labor in production.
• Inshoring returns production jobs to the United States.
• Multinational Corporation is heavily involved in international trade, beyond exporting/importing.
• Outsourcing sends U.S. jobs abroad.
• Global Marketing Standardization produces uniform products for worldwide sales.
• Balance of Payments is the difference between a country's total payments to other countries and its receipts.
• United States-Mexico-Canada Agreement (USMCA) is a free trade agreement to replace NAFTA
• Balance of Trade is the difference between a country's export value and import value.
• Multidomestic Strategy allows multinational subsidiaries to compete independently in local markets.
• MERCOSUR is the largest Latin American trade agreement. Full members include Argentina, Brazil, Paraguay, and Uruguay.
• Uruguay Round aimed to lower trade barriers, creating the WTO.
• World Trade Organization (WTO) has 164 nations, replacing GATT.
• European Union (EU) includes 27 European countries.
• The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a trade agreement between Canada and 10 Asia-Pacific countries
• Pacific Alliance allows free movement of goods, services, investment, capital, and people to Chile, Colombia, Mexico, and Peru
• The Regional Comprehensive Economic Partnership (RECP) began in 2022 with 15 member countries.
• Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) was instituted in 2005 by Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States
• World Bank provides low-interest loans and advice to developing nations.
• Group of Twenty (G20) promotes discussion on global economic stability.
• Buyer for Export assumes ownership risks and sells globally.
• International Monetary Fund (IMF) lends to troubled nations and promotes cooperation.
• Exporting sells domestically produced products to foreign buyers.
• Export Broker connects buyers and sellers.
• Foreign Direct Investment (FDI) invests in foreign business operations or assets
• Export agents act as manufacturer's agent in the foreign market.
• Joint Venture involves domestic firms buying or joining with foreign companies.
• Licensing allows firms to use manufacturing processes, trademarks, or knowledge

Contract Manufacturing

• Contract Manufacturing is private-label manufacturing by a foreign company

Exchange Rate

• Exchange Rate is the price of one country's currency in terms of another country's currency

Floating Exchange Rates

• Floating Exchange Rates is a system with currency prices based on supply and demand

Countertrade

• Countertrade uses goods/services for payment.

Countervailing Duty

• Countervailing Duty is a tax on imports offsetting subsidies to foreign exporters.

Dumping

• Dumping sells exported products at lower prices in foreign markets.

Chapter 6: Consumer Decision Making

• Consumer Behavior shows the processes consumers use which include making purchases, using goods/services, and the influences in decisions and product usage.
• Value says the worth someone obtains from a purchase or the belief that specific behavior is preferable.
• Utilitarian Value derives from a product/service helping consumers solve problems.
• Hedonic Value acts as an end.
• Perceived Value is the value a consumer expects to obtain from a purchase
• Consumer Decision-Making Process includes 5 steps consumers use when buying goods or services
• Need Recognition results because of an imbalance between actual and desired states
• Internal Information Search recalls information stored in memory.
• Non-Marketing-Controlled Information Source shows a source not associated with promotion.
• Stimulus affects one or more of the five senses.
• External Information Search seeks information from the outside.
• Want is the recognition of a product satisfying an unfulfilled need.
• Market-Controlled Information Source is a product information source that originates with marketers promoting the product
• Jilting Effect anticipates a highly desirable option only to have it become inaccessible
• Evoked Set includes the brands resulting from information searches.
• Involvement shows the time/effort a buyer invests in the search, evaluation, and decision process.
• Cognitive Dissonance shows inner tension when recognizing inconsistency.
• Consideration Set brands are resulting from an information search when the buyer can choose
• Nudge is a small intervention that can change a person's behavior
• Routine Response Behavior includes frequently purchased, low-cost items that need little time to purchase and decide.
• Limited Decision Making uses a moderate amount of time to deliberate about an unfamiliar brand.
• Culture shapes human behavior through values, norms, attitudes, and symbols, transmitted across generations.
• Churning is when customers are significantly switching brands
• Showrooming examines merchandise in stores but buys online.
• Extensive Decision Making includes complex consumer decisions for unfamiliar, expensive items that require a lot of information.
• Subculture are homogenous groups who share culture elements.
• Primary Membership Group include people that interact informally.
• Reference Group influences purchasing behavior.
• Aspirational Reference Group is a group someone would like to join.
• Social Class share similar status and norms.
• Secondary Membership Group is less consistent and more formal.
• Norm is a common value or attitude
• Opinion Leaders influence the opinions of others.
• Connected Self-Schema perceives themself as part of a group.
• Nonaspirational Reference Groups are groups someone avoids associating with.
• Socialization Process passes cultural values to children.
• Separated Self-Schema perceives themselves as distinct.
• Personality organizes individual reactions to situations.
• Self-concept includes attitudes, perceptions, beliefs, and self-evaluations.
• Ideal Self-Image is how an individual wants to be perceived.
• Perception selects, organizes, and interprets stimuli.
• Real Self-Image includes how an individual perceives themself
• Selective Exposure notices certain stimuli while ignoring others.
• Selective Distortion changes information conflicting with feelings.
• Motive is a driving force to satisfy needs.
• Maslow's Hierarchy of Needs classifies needs.
• Learning changes behavior through experience.
• Selective Retention remembers information supporting beliefs.
• Stimulus Generalization extends a response to similar stimuli.
• Stimulus Discrimination differentiates similar products.

Chapter 7: Business Marketing

• Business Marketing markets goods/services to organizations for non-personal consumption (B2B).
• Industrial Product include products that are used to manufacture other goods/services.
• Business Product include products that are used to manufacture other goods/services
• Consumer Product satisfies individual personal wants/needs.
• Content Marketing creates valuable, relevant content.
• Strategic Alliance shows a cooperative agreement.
• Trust is the condition that exists that when one party has confidence in an exchange reliability and integrity of their partner
• Relationship Commitment shows a firm's belief of how important a relationship is from another firm and maintaining it indefinitely
• Original Equipment Manufacturers (OEMs) buy goods and incorporate them into products for sale.
• Keiretsu is interlocking corporate affiliates.
• Joint Demand uses 2+ items together.
• North American Industry Classification System (NAICS) classifies North American businesses.
• Accelerator Principle shows a small change in consumer demand impacting equipment demand.
• Derived Demand demands for business products.
• Multiplier Effect shows a change in demand impacting equipment demand.
• Business-to-Business Online Exchange connects companies with their customers/suppliers online.
• Raw Materials include unprocessed products.
• Component Parts are ready for assembly or need minimal processing.
• Installations include large or expensive equipment.
• Accessory Equipment contains portable tools and office equipment.
• Major Equipment includes capital goods.
• Reciprocity occurs when businesses buy from their own customers.
• Processed Materials show products used manufacturing in other product
• Supplies contain consumable items that aren't part of the final product.
• New Buy happens when purchasing a product for the first time.
• Buying Center forms when people in an organization who become involved in purchase decision
• Business Services are expense items that aren't part of a final product.
• Modified Rebuy occurs when purchasers want changes.
• Straight Rebuy is when purchasers reorder without seeking new information.

Chapter 8: Segmenting and Targeting Markets

• Market Segmentation divides a market into segments.
• Market Segment has similar product needs
• Variables shows the characteristics
• Market are the people/organizations
• Segmentation Bases includes characteristics.
• Geographic Segmentation segments by country, region, size, density, or climate.
• Gender Identity shows an individual's internal perception
• Ethnicity are shared cultural characteristics.
• Demographic Segmentation segments by age, gender, income, ethnicity, or life cycle.
• Household Life Cycle (HLC) stages show age, marital status, and children.
• 80/20 Principle states 20% of customers generate 80% of demand.
• Geodemographic Segmentation segments into lifestyle categories.
• Benefit Segmentation groups customers by desired product benefits.
• Psychographic Segmentation segments by personality, motives, lifestyles, or geodemographics.
• Behavioral Segmentation groups customers by their behaviors.
• Satisfiers place orders with familiar suppliers.
• Optimizers consider many suppliers.
• Target Market is the group for which an organization designs and maintains a marketing mix to meet their needs.
• Undifferentiated Targeting Strategy views the market as one big segment and uses a single marketing mix.
• Concentrated Targeting Strategy selects one market segment.
• Niche shows one segment of a market
• Positioning influences customer perception.
• Cannibalization are when a new products cut into sales of existing products
• Multi-Segment Targeting Strategy chooses two or more segments and develops a distinct marketing mix per segment..
• Position uses of a product, brand, or grouping on consumer thought compared against their competitors
• Product Differentiation distinguishes products from competitors.
• Perceptual Mapping displays product location in customers' minds.
• Repositioning changes perceptions of a brand.

Chapter 9: Marketing Research

• Marketing Research Problem determines information needs and how to obtain it efficiently.
• Marketing Research plans, collects, and analyzes data relevant to decisions.
• Management Decision Problem uses research for managerial decisions.
• Marketing Research Objective specifies the information needed to solve a problem.
• Research Design shows the research questions that are answered.
• Primary Data collects data for the first time.
• Secondary Data data that has been previously collected other then a currently hand for other purposes
• Big Data shows the exponential growth and complex tools that are developed to create certain meanings for complex tools
• Survey Research includes research where they work with people in order to obtain facts, opinions, and attitudes
• Executive Interview are types of surveys that mainly involve with people who work in industries or other services
• Central-Location Telephone(CLT) Facility uses designed rooms that are used in order to conduct the interviews
• Open-ended Question shows interview questions that encourage people and respondents to answer the certain phrased
• Focus Group has around 7-10 people participating and led by a moderator
• Observation Research relies on observation of people watching people, people watching machines, machines watching people, or even machines watching an activity
• Closed-ended Questions included interview questions that ask respondents to make the right choice and give the respondent a list of responses
• Scaled-response Question measures questions such as a closed ended questions and measures the intensity of people response
• Mystery Shoppers measures the people who pose as customers in order to gather dat about store
• Social Media Monitoring shows use of media automated tools in monitoring the onnline buzz
• Ethnographic Research studies the human behavior in the setting and the behavior setting
• Behavioral Targeting (BT) the observation of what consumers do in specific database
• Experiment alters one + variables while observing/reporting
• Sample is a subset
• Universe includes the population that samples are drawn from
• Nonprobability Sample no attempt is made to get a representative cross section of the population
• Convenience Sample uses a non profit by the ability sample by using the respondents because of the researcher (friends, family, employers)
• Probability Sample includes different types of selected samples statistically
• Random Sample sample that has been arranged in a way that every sample pop can be equally part of the sample
• Measurement Error shows the error that happen when there is an information difference between the researcher and the measurement process provider
• Random Error includes the error that happens when there is selected sample, is not a perfect representation of the overall population
• Frame Error when an error occurs while the sample is running
• Sampling Error error when a sample does not represent the target population
• Field Service Firm firm that specializes in reviewing respondents by the means of being subcontracted
• Neuromarketing studies that body's responses to marketing stimuli
• Cross-Tabulation analyses the data and lets the analyst look at the responses one question in relation to other questions
• Scanner-Based Research system uses to gather respondents one by one to monitor the advertising, promotion and pricing they are exposed to