FULL STUDY GUIDE PDF

Chapter 1: An Overview of Marketing What is the definition of marketing? Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large​....

Chapter 1: An Overview of Marketing What is the definition of marketing? Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large​. Conditions of exchange: What do we need to make the exchange happen? Conditions of exchange require at least two parties, something of value, communication and delivery, the freedom to accept or reject, and a desire to deal with the other party​. The four marketing management philosophies: Definitions, comparison, and differences ○ Production Orientation: Focuses on the firm's internal capabilities rather than the desires of the marketplace. ○ Sales Orientation: Belief that people will buy more goods/services with aggressive sales techniques and high sales result in high profits. ○ Market Orientation: Focus on satisfying customer needs and wants while achieving organizational objectives. ○ Societal Marketing Orientation: Satisfying customer needs and wants while enhancing individual and societal well-being​. Market orientation: Definition and how to achieve it Market orientation focuses on customer satisfaction and requires obtaining information about customers and competitors, examining the market from a business perspective, and delivering superior value​. Societal Marketing Orientation This philosophy extends beyond the customer to consider societal well-being by creating less toxic, more durable, or recyclable products​. Questions that help determine the marketing philosophy ○ Production: "What can we make or do best?" ○ Sales: "How can we sell more aggressively?" ○ Marketing: "What do customers want and need?" ○ Societal: "What do customers want and how can we benefit society?"​ Relationship marketing A strategy that focuses on keeping and improving relationships with current customers​. Comparison between sales and market orientations Sales orientation focuses inward on selling goods/services and achieving maximum sales volume, while market orientation focuses outward on satisfying customer needs and wants​. Chapter 2: Strategic Planning for Competitive Advantage  Strategic planning definitions Strategic planning is the process of creating and maintaining a fit between the organization's objectives and resources and evolving market opportunities​. Characteristics of SBUs (Strategic Business Units) ○ A distinct mission and specific target market ○ Control over its resources ○ Its own competitors ○ Plans independent of other SBUs ○ A single business or collection of related businesses. Ansoff’s opportunity matrix and strategic opportunity matrix (4 elements) ○ Market Penetration: Increase market share among existing customers ○ Market Development: Attract new customers to existing products ○ Product Development: Introduce new products to existing markets ○ Diversification: Create new products for new markets. What is a marketing plan? (3 definitions) ○ A process of anticipating future events and determining strategies to achieve organizational objectives. ○ Marketing planning involves designing activities relating to marketing objectives and the changing market environment. ○ A marketing plan is a written document that acts as a guidebook for marketing activities​. Why write a marketing plan? Writing a marketing plan helps organizations achieve marketing objectives and succeed by outlining strategies for product lines, distribution channels, marketing communications, and pricing​. Elements of a Marketing Plan A marketing plan typically includes a business mission statement, situation or SWOT analysis, objectives, marketing strategy (including the target market and marketing mix), and methods of implementation, evaluation, and control​. Distinguish between goals and objectives Goals are broader, long-term ambitions of the company, while objectives are specific, measurable steps toward achieving those goals​. SWOT Analysis: Internal strengths and weaknesses, opportunities and threats ○ Strengths: Internal factors that the company excels at (e.g., marketing skills). ○ Weaknesses: Internal factors where the company struggles (e.g., production inefficiencies). ○ Opportunities: External factors that the company can take advantage of (e.g., market expansion). ○ Threats: External factors that could harm the company (e.g., new competition). Marketing Objectives Objectives should be realistic, measurable, time-specific, and compared to a benchmark​. Target Market Analysis Involves segmenting the market based on groups with similar characteristics and selecting one or more target markets.  The Marketing Mix: The Four Ps ○ Product: The starting point, including the physical unit, package, brand, and more. ○ Place (Distribution): Ensures products reach customers in usable condition when needed. ○ Promotion: Brings about exchanges by informing, persuading, and reminding target markets. ○ Price: The amount a buyer must give up to obtain the product, often the most flexible of the four Ps. Chapter 3: Ethics and Social Responsibility Social control definition and behavioral norms Social control refers to any means used to maintain behavioral norms and regulate conflict​. Behavioral norms are standards of proper or acceptable behavior. Morals definition Morals are the rules people develop as a result of cultural values and norms​. Ethical Development Levels (Morality) 1. Preconventional Morality: Self-centered and based on what will be punished or rewarded. 2. Conventional Morality: Moves toward the expectations of society and considers legality and the opinions of others. 3. Postconventional Morality: Represents the morality of the mature adult, focused on personal principles​. Code of Ethics definition A code of ethics is a guideline to help marketing managers and other employees make better decisions​. CSR (Corporate Social Responsibility) definition CSR refers to a business's concern for society's welfare​. Stakeholder Theory definition Stakeholder theory states that social responsibility is paying attention to the interest of every stakeholder affected by a firm’s operations​. Pyramid of Corporate Social Responsibility 1. Economic Responsibilities: Be profitable. 2. Legal Responsibilities: Obey the law. 3. Ethical Responsibilities: Be ethical. 4. Philanthropic Responsibilities: Be a good corporate citizen). Sustainability Sustainability is the idea that socially responsible companies will outperform their peers by focusing on the world's social, economic, and environmental problems as opportunities to build profits and help the world​.  Green Marketing Green marketing involves the development and marketing of products designed to minimize negative effects on the physical environment or to improve it​. Cause-related Marketing Cause-related marketing involves the cooperative efforts between a for-profit firm and a nonprofit organization for mutual benefit​. Chapter 4: The Marketing Environment Target Market definition and how it works A target market is a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group​. Understanding the external environment, environmental management Environmental management involves strategies to shape the external environment where a company operates​. Social Factors Social factors include attitudes, values, and lifestyles that influence purchasing decisions. These factors are often shaped by family, culture, and society​. Economic Factors ○ Purchasing Power: A comparison of income versus the relative cost of a standard set of goods and services​. ○ Inflation: A measure of the decrease in the value of money​. ○ Recession: A period of negative economic growth that reduces demand for goods and services​. Competitive Factors Competitors include both domestic and international companies that may affect the firm's operations by offering alternative products or services. Chapter 5: Global Marketing Definition of Global Marketing and Global Vision ○ Global Marketing: Marketing that targets markets throughout the world​. ○ Global Vision: Recognizing and reacting to international marketing opportunities, as well as understanding threats from foreign competitors​. Benefits of Globalization ○ Expands economic freedom. ○ Spurs competition. ○ Raises productivity and living standards. ○ Offers access to foreign capital and global export markets. ○ Promotes higher labor and environmental standards. ○ Acts as a check on government power​.  Multinational Firms: Are they beneficial and why? Multinational firms benefit countries by moving resources, goods, services, and skills across national boundaries, contributing to economic growth​. However, they are often criticized for not increasing employment as much due to their capital-intensive nature). Global Marketing Standardization definition Global marketing standardization is the production of uniform products that can be sold in the same way across different markets​. Culture Culture refers to the common set of values shared by a society that determines what is socially acceptable​(. Economic factors Developed countries tend to have complex and sophisticated industries, while less developed nations focus on basic industries​. The Global Economy The global economy is interconnected, and countries like Brazil, Russia, India, China, and South Africa (BRICS) are playing increasingly important roles​. Legal Considerations: Definition of tariff and quota ○ Tariff: A tax levied on goods entering a country. ○ Quota: A limit on the amount of a specific product that can enter a country​. Members of G-20 Some members include the United States, China, Germany, Brazil, and the European Union​. Global Marketing by Individual Firms Global marketing involves different methods such as exporting, licensing, contract manufacturing, and joint ventures​. Global Marketing Mix The global marketing mix includes product decisions, distribution, promotion, and pricing tailored to international markets​. Chapter 6: Consumer Decision-Making Process Consumer Decision-Making process sequence A five-step process used by consumers when buying goods or services: ○ Need Recognition ○ Information Search ○ Evaluation of Alternatives ○ Purchase Decision ○ Postpurchase Behavior​. Need recognition The result of an imbalance between actual and desired states​. Information Search ○ Internal Information Search: Recalling information from memory.  ○ External Information Search: Seeking information from the external environment​. Evoked Set The group of preferred alternatives resulting from an information search​. ○ Important attributes: What it can do, evaluation Attributes such as price, brand name, and quality can influence the decision-making process​. Postpurchase behavior After the purchase, consumers evaluate the product, which can lead to satisfaction or cognitive dissonance​. Consumer buying decisions These decisions fall along a continuum from routine response behavior to extensive decision-making based on the level of consumer involvement​. Involvement (how much effort you make to buy something) Involvement refers to the time and effort a buyer invests in the search, evaluation, and decision processes​. Routine Response Behavior Low involvement in frequently purchased, low-cost goods. Extensive Decision Making High involvement in expensive, infrequent purchases. Factors determining the level of consumer involvement (four bullet points) ○ Previous experience. ○ Interest in the product. ○ Perceived risk of negative consequences. ○ Social visibility​. Social influences Social factors, such as reference groups and opinion leaders, influence consumer decisions​. Types of reference groups ○ Direct reference groups: Include primary (family, friends) and secondary groups (clubs, professional organizations). ○ Indirect reference groups: Include aspirational and non-aspirational groups. Opinion leaders Opinion leaders are individuals who influence others, often through early adoption of products​. Family Family members influence purchasing decisions through various roles, such as the initiator, influencer, decision-maker, purchaser, and consumer​.