Marketing Studying Notes PDF

**1. Marketing**: The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value. **2. Exchange**: The act of obtaining a desired object from someone by offering something in return. **3. Production Orientation**: Focuses on inter...

**1. Marketing**: The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value. **2. Exchange**: The act of obtaining a desired object from someone by offering something in return. **3. Production Orientation**: Focuses on internal capabilities rather than on the desires and needs of the marketplace. **4. Sales Orientation**: Believes that aggressive sales techniques will lead to higher profits, often neglecting customer needs. **5. Marketing Concept**: The social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives. **6. Market Orientation**: A philosophy that emphasizes understanding and responding to customer needs and wants. **7. Societal Marketing Orientation**: Focuses on long-term customer satisfaction while also considering society's best interests. **8. Customer Value**: The relationship between the benefits gained and the sacrifices made to obtain those benefits. **9. Customer Satisfaction**: Customers\' evaluation of a product/service in terms of whether it meets their needs and expectations. **10. Relationship Marketing**: A strategy aimed at developing and maintaining long-term relationships with customers. **11. Empowerment**: Delegation of authority to employees to solve customer problems quickly. **12. Customer Relationship Management (CRM)**: A strategy to optimize profitability, revenue, and customer satisfaction by focusing on defined customer groups. **13. On-Demand Marketing**: Delivering relevant experiences integrated across physical and virtual environments. **Concept Summary for Chapter 1** - **Four Competing Philosophies**: - **Production Orientation**: Internal focus; can survive in weak competition. - **Sales Orientation**: Aggressive selling; may ignore customer needs. - **Market Orientation**: Customer-focused; sees sales as a result of customer decisions. - **Societal Marketing Orientation**: Balances customer needs with societal interests. - **Customer Focus**: Understanding customer value and satisfaction is essential for building relationships and ensuring long-term success. **Key Terms and Definitions for Chapters 2/3** 1. **Social Control**: Any means used to maintain behavioral norms and regulate conflict. 2. **Behavioral Norms**: Standards of proper or acceptable behavior within a society. 3. **Ethics**: Moral principles or values that govern the conduct of individuals or groups. 4. **Laws**: Codified ethical rules enforced by governmental authorities. 5. **Deontological Theory**: Ethical theory focusing on adherence to obligations and duties. 6. **Utilitarian Ethical Theory**: Focuses on the consequences of actions to determine right or wrong. - **Act Utilitarianism**: Evaluates actions based on their outcomes. - **Rule Utilitarianism**: Considers the overall utility of following certain rules. 7. **Casuist Ethical Theory**: Compares current ethical dilemmas with similar past situations. 8. **Moral Relativism**: The belief that ethical truths depend on individuals or groups and their circumstances. 9. **Virtue**: A character trait valued as good. 10. **Morals**: Rules people develop based on cultural values and norms. 11. **Pre-Conventional Morality**: Self-centered morality based on rewards and punishments. 12. **Conventional Morality**: Aligns with societal expectations and norms. 13. **Post-Conventional Morality**: Reflects a mature adult perspective; focuses on self-judgment over societal opinion. 14. **Code of Ethics**: Guidelines to help employees make better decisions and identify acceptable business practices. 15. **Foreign Corrupt Practices Act (FCPA)**: A law prohibiting U.S. corporations from making illegal payments to foreign officials for business advantages. 16. **Corporate Social Responsibility (CSR)**: A company's commitment to consider societal welfare alongside its business operations. 17. **Stakeholder Theory**: The idea that businesses should consider the interests of all stakeholders in their operations. 18. **Pyramid of Corporate Social Responsibility**: A model categorizing responsibilities into economic, legal, ethical, and philanthropic layers. 19. **Sustainability**: The focus on addressing social, economic, and environmental problems while achieving long-term profitability. 20. **Green Marketing**: The development and marketing of products designed to minimize environmental impact. 21. **Cause-related Marketing**: Collaborative marketing efforts between for-profit and nonprofit organizations. **Concept Summary for Chapters 2/3** - **Ethics and Social Responsibility**: These chapters emphasize the importance of ethical behavior in business and the need for organizations to operate responsibly within society. - **The Role of Ethics**: Ethical principles guide decision-making and behavior within organizations. Ethics can be influenced by laws, societal norms, and personal values. - **Corporate Responsibility**: Companies are encouraged to adopt CSR practices, focusing not only on profit but also on the welfare of stakeholders, including employees, customers, and the community. - **Stakeholder Theory**: Emphasizes that businesses should consider the impacts of their decisions on all stakeholders, not just shareholders. - **Sustainability and Green Marketing**: There is a growing trend towards environmentally responsible practices in business, leading to the emergence of green marketing strategies. **Key Terms and Definitions for Chapter 4** 1. **Target Market**: A specific group of people or organizations that an organization aims to reach with its marketing mix, resulting in mutually satisfying exchanges. 2. **Component Lifestyles**: The practice of choosing goods and services that meet diverse needs and interests rather than conforming to a single, traditional lifestyle. 3. **Demography**: The study of people\'s vital statistics, such as age, race, ethnicity, gender, income, education, and location, which can influence consumer behavior. 4. **Millennials**: Individuals born between 1979 and 1994, known for their digital savvy and preference for experiences over possessions. 5. **Generation X**: Individuals born between 1965 and 1978, often characterized as independent, resourceful, and skeptical of institutions. 6. **Baby Boomers**: Individuals born between 1946 and 1964, known for their significant economic influence and preference for quality and value. 7. **Purchasing Power**: The financial ability of consumers to purchase goods and services, often influenced by income levels and the relative cost of living. 8. **Inflation**: A measure of the decrease in the purchasing power of money, expressed as the percentage increase in prices over time. 9. **Recession**: A period of economic decline characterized by reduced consumer spending and increased unemployment, leading to decreased demand for goods and services. 10. **Basic Research**: Pure research aimed at confirming existing theories or gaining a deeper understanding of a concept or phenomenon. 11. **Applied Research**: Research focused on developing new products or improving existing ones, often directed toward solving specific problems. **Concept Summary for Chapter 4** - **Understanding the Marketing Environment**: This chapter emphasizes the need for marketers to analyze the external environment that affects their strategies. The marketing environment includes various factors like demographics, economic conditions, and cultural trends. - **Demographics**: Understanding demographic shifts (such as aging populations or the rise of Millennials) helps marketers tailor their strategies to meet the needs of specific groups. - **Economic Factors**: The chapter discusses how economic conditions, such as inflation and recession, impact consumer purchasing power and behavior. Marketers must adapt their offerings based on economic trends. - **Component Lifestyles**: With consumers increasingly adopting component lifestyles, marketers must recognize that individuals may seek different products for different aspects of their lives. This complexity requires flexible marketing strategies. - **Research in Marketing**: Both basic and applied research play critical roles in marketing. Basic research enhances understanding of consumer behavior, while applied research is essential for product development and innovation. **Key Terms and Definitions for Chapter 5** 1. **Global Marketing**: The practice of marketing products and services on a global scale, taking into account the needs and preferences of consumers in different countries. 2. **GDP (Gross Domestic Product)**: The total value of all goods and services produced within a country during a specific period, often used as an indicator of economic health. 3. **Outsourcing**: The process of sending jobs or services to be performed by external organizations, often in foreign countries, to reduce costs and increase efficiency. 4. **Inshoring**: The practice of bringing back production jobs to the home country, typically in response to the need for better control over product quality and shorter turnaround times. 5. **Benefits of Globalization**: - Expands economic freedom. - Increases competition. - Raises productivity and living standards. - Provides access to foreign capital, export markets, and advanced technology. - Promotes higher labor and environmental standards. - Acts as a check on government power. 6. **Multinational Corporation**: A company that operates in multiple countries beyond just exporting and importing, often with subsidiaries in various locations. 7. **Capital Intensive**: A term describing industries or businesses that require more capital investment than labor to produce goods or services. 8. **Global Marketing Standardization**: The strategy of producing uniform products that can be marketed and sold similarly across different countries. 9. **Multidomestic Strategy**: A strategy in which multinational firms allow individual subsidiaries to compete independently in their local markets. 10. **Balance of Trade**: The difference between the value of a country's exports and its imports over a specified period. 11. **Balance of Payments**: A comprehensive record of all economic transactions between residents of a country and the rest of the world over a given time. 12. **Exporting**: The act of selling domestically produced products to consumers in other countries. - **Buyer for Export**: An intermediary who assumes all ownership risks and sells products in global markets for their own account. - **Export Broker**: An intermediary who connects buyers and sellers in international markets. - **Export Agent**: An intermediary who acts on behalf of the exporter in a foreign market. 13. **Licensing**: A legal arrangement in which a licensor allows another firm to use its manufacturing process, trademarks, patents, or other proprietary knowledge. 14. **Tariff**: A tax imposed on goods imported into a country, intended to protect domestic industries from foreign competition. 15. **Quota**: A limit on the quantity of a specific product that can be imported into a country. 16. **Boycott**: A refusal to buy goods from certain countries or companies, often for political or ethical reasons. 17. **Exchange Control**: Regulations that govern the buying and selling of foreign currencies, often imposed by governments to stabilize the economy. 18. **Market Grouping (Common Trade Alliance)**: An agreement among several countries to work together to enhance trade opportunities and reduce barriers. 19. **Contract Manufacturing**: A form of outsourcing where a company hires a foreign manufacturer to produce goods under its brand. 20. **Joint Venture**: A partnership where a domestic firm and a foreign firm create a new entity for mutual benefit. 21. **Exchange Rate**: The value of one currency in terms of another currency, which affects international trade dynamics. 22. **Dumping**: The practice of selling an exported product at a price lower than that charged for a similar product in the home market. 23. **Countertrade**: A type of trade where the payment for goods or services is made in the form of other goods or services rather than cash. 24. **Need Recognition**: The first stage in the consumer decision-making process, triggered by an imbalance between actual and desired states. 25. **Evoked Set (Consideration Set)**: A group of brands that consumers consider when making a purchase decision. 26. **Cognitive Dissonance**: The discomfort experienced when a consumer realizes that their behavior contradicts their beliefs or values. 27. **Involvement**: The level of interest and effort a consumer invests in the decision-making process, influencing how they approach purchasing. 28. **Positioning**: The strategy of establishing a product's or brand\'s identity in the minds of consumers relative to competing products. **Concept Summary for Chapter 5** - **Understanding Global Marketing**: This chapter emphasizes the importance of adapting marketing strategies for different countries and cultures. Global marketing allows businesses to expand their reach and tap into new consumer bases. - **Economic Considerations**: Concepts like GDP, balance of trade, and balance of payments are crucial for understanding the economic environment in which international businesses operate. - **Market Entry Strategies**: Various methods, such as exporting, licensing, and joint ventures, are discussed as ways for businesses to enter international markets and mitigate risks. - **Cultural Sensitivity**: Marketers must be aware of cultural differences and local customs to effectively engage with international consumers and avoid miscommunication. - **Benefits and Challenges of Globalization**: While globalization presents opportunities for growth and efficiency, it also poses challenges, including competition and the need to navigate different regulatory environments. **Key Terms and Definitions for Chapter 6** 1. **Need Recognition**: The first stage in the consumer decision-making process, occurring when a consumer perceives a difference between their actual state and a desired state. 2. **Want**: A recognition of an unfulfilled need and a product that will satisfy it. Wants are influenced by individual preferences and cultural factors. 3. **Stimulus**: Any unit of input affecting one or more of the five senses (sight, smell, taste, touch, hearing), which can trigger consumer responses. - **Internal Stimuli**: Internal sensations that influence consumer behavior, such as hunger or thirst. - **External Stimuli**: Environmental factors that can influence behavior, such as advertisements or word-of-mouth recommendations. 4. **Want-Got Gap**: The difference between the consumer's actual state and their desired state, motivating them to seek solutions. 5. **Information Search**: The process of seeking information to resolve the want-got gap. - **Internal Information Search**: Recalling past experiences and information stored in memory. - **External Information Search**: Seeking information from outside sources, such as friends, family, or marketing materials. - **Nonmarketing-Controlled Information Source**: Information not associated with marketing, such as personal experiences or reviews. - **Marketing-Controlled Information Source**: Information that originates with marketers promoting the product. 6. **Evoked Set (Consideration Set)**: The group of brands or products that a consumer considers when making a purchasing decision. 7. **Cognitive Dissonance**: The inner tension or discomfort a consumer experiences after recognizing an inconsistency between their beliefs or values and their behavior (e.g., after a purchase). 8. **Involvement**: The level of interest and effort a consumer invests in the search, evaluation, and decision processes of consumer behavior. - **Routine Response Behavior**: Low-involvement decisions, often for frequently purchased, low-cost items. - **Limited Decision Making**: Moderate involvement, often for products that require some research and consideration. - **Extensive Decision Making**: High involvement, often for unfamiliar, expensive, or infrequently purchased items. 9. **Showrooming**: The practice of examining products in a physical store and then purchasing them online for a better deal. 10. **Opinion Leader**: An individual who influences the opinions of others, often seen as an authority in a specific area or product. 11. **Socialization Process**: The means through which cultural values and norms are transmitted to children. 12. **Personality**: The unique psychological characteristics that influence how an individual reacts to situations. - **Self-Concept**: How consumers perceive themselves in terms of attitudes, beliefs, and self-evaluations. 13. **Perception**: The process by which individuals select, organize, and interpret stimuli to form a meaningful picture. - **Selective Exposure**: Consumers notice certain stimuli and ignore others. - **Selective Distortion**: Consumers change or distort information that conflicts with their beliefs or feelings. - **Selective Retention**: Consumers remember information that supports their personal beliefs. 14. **Motive**: A driving force that causes an individual to take action to satisfy specific needs. 15. **Maslow's Hierarchy of Needs**: A framework for understanding human motivation, categorizing needs into five levels, from physiological to self-actualization. 16. **Family Life Cycle (FLC)**: A series of stages determined by age, marital status, and the presence of children, influencing consumption patterns. 17. **Psychographic Segmentation**: The process of segmenting consumers based on personality, motives, lifestyles, and geodemographics. 18. **Geodemographic Segmentation**: Segmenting potential customers into neighborhood lifestyle categories based on demographic and geographic characteristics. 19. **Market Segment**: A subgroup of people or organizations sharing characteristics that cause them to have similar product needs. 20. **Market Segmentation**: The process of dividing a market into meaningful segments based on shared characteristics. 21. **80/20 Principle**: The principle stating that 20% of customers generate 80% of demand. 22. **Satisficers**: Business customers who select the first familiar supplier to meet their requirements. 23. **Optimizers**: Business customers who seek the best possible supplier and analyze all proposals before making a decision. 24. **Target Market**: A specific group of consumers for which an organization designs and implements its marketing mix. 25. **Undifferentiated Targeting Strategy**: A marketing approach that treats the market as a single entity with a uniform marketing mix. 26. **Concentrated Targeting Strategy**: A strategy where a firm focuses on a single market segment. 27. **Multi-segment Targeting Strategy**: A strategy that targets two or more well-defined market segments, developing a distinct marketing mix for each. 28. **Positioning**: The process of establishing a product's identity in the minds of consumers relative to competing products. 29. **Product Differentiation**: A positioning strategy used to distinguish a product from its competitors. 30. **Repositioning**: The process of changing consumers' perceptions of a brand relative to competitors. **Concept Summary for Chapter 6** - **Understanding Consumer Behavior**: This chapter emphasizes the importance of comprehending how consumers make decisions, which is vital for effective marketing. - **Decision-Making Process**: The chapter outlines the stages of the consumer decision-making process, from need recognition to post-purchase evaluation. - **Involvement Levels**: Different products require varying levels of consumer involvement, which affects the decision-making process and marketing strategies. - **Psychographics and Segmentation**: Understanding the psychological aspects of consumers, such as motives and lifestyles, is essential for effective market segmentation and targeting. - **Cognitive Dissonance**: Marketers must be aware of the potential for cognitive dissonance after a purchase and how to mitigate it through post-purchase communications. **Key Terms and Definitions for Chapter 7** 1. **Business Markets**: Markets where products are bought for use in conducting business, as opposed to being purchased by final consumers. 2. **B2B Marketing (Business-to-Business Marketing)**: The process of marketing products or services to other businesses rather than to individual consumers. 3. **Types of Business Markets**: - **Reseller Markets**: Intermediaries (wholesalers and retailers) that buy finished goods and resell them for profit. - **Producer Markets**: Businesses that buy goods and services to produce other products. - **Government Markets**: Government agencies that purchase goods and services to support their operations. - **Institutional Markets**: Non-profit organizations that buy goods and services for their operations (e.g., hospitals, schools). 4. **Derived Demand**: The demand for business products that arises from the demand for consumer products. For example, an increase in consumer demand for cars leads to higher demand for steel and components. 5. **Business Buying Behavior**: The decision-making process by which business buyers determine which products to purchase. 6. **Buying Center**: The group of individuals within an organization who are involved in the buying decision process. Key roles may include: - **Users**: Those who will use the product. - **Influencers**: Individuals who influence the buying decision. - **Buyers**: Those who have the authority to make the purchase. - **Deciders**: Individuals who have the final say on the product selection. - **Gatekeepers**: Individuals who control the flow of information and access to decision-makers. 7. **Business Buying Process**: The steps businesses go through to make purchasing decisions, which typically include: - **Problem Recognition**: Identifying a need or problem. - **Information Search**: Researching products and suppliers. - **Evaluation of Alternatives**: Assessing the available options. - **Purchase Decision**: Making the final decision on what to purchase. - **Post-Purchase Evaluation**: Assessing the purchase after the fact to ensure it meets expectations. 8. **Factors Influencing Business Buying Behavior**: - **Environmental Factors**: Economic, technological, and competitive environments. - **Organizational Factors**: The company's objectives, policies, and procedures. - **Interpersonal Factors**: Relationships and dynamics among the individuals in the buying center. - **Individual Factors**: Personal characteristics of the buyers, such as motivation, experience, and risk tolerance. 9. **Supplier Selection**: The process of evaluating and choosing suppliers based on various criteria, including price, quality, and service. 10. **Negotiation**: The discussion between buyers and sellers aimed at reaching an agreement on price, delivery, and other terms. 11. **E-procurement**: The use of electronic systems and processes to facilitate purchasing and supply management. 12. **Vendor Managed Inventory (VMI)**: A supply chain initiative where the supplier manages the inventory of the buyer to ensure optimal stock levels. **Key Terms and Definitions for Chapter 8** 1. **Market Segmentation**: The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors who might require separate products or marketing strategies. 2. **Market Segment**: A subgroup of individuals or organizations sharing one or more characteristics that cause them to have similar product needs. 3. **Segmentation Bases (Variables)**: The criteria used to segment markets, which may include: - **Demographic Segmentation**: Based on variables such as age, gender, income, education, etc. - **Geographic Segmentation**: Based on geographic boundaries such as region, city, or climate. - **Psychographic Segmentation**: Based on lifestyle, personality traits, values, and social class. - **Behavioral Segmentation**: Based on consumer knowledge, attitudes, uses of a product, or responses to a product (e.g., benefits sought, usage rate). 4. **Target Market**: The specific group of customers that a business aims to reach with its products and marketing efforts. 5. **Targeting Strategies**: The approaches a business can take to select its target market: - **Undifferentiated Targeting Strategy**: A single marketing mix is used for the entire market with no segmentation. - **Concentrated Targeting Strategy**: Focusing on one specific market segment with a tailored marketing mix. - **Multisegment Targeting Strategy**: Targeting two or more well-defined market segments with separate marketing mixes for each. 6. **Positioning**: Developing a specific marketing mix to influence potential customers\' overall perception of a brand, product line, or organization in general. 7. **Positioning Statement**: A statement that summarizes the brand\'s unique value proposition and outlines how it differs from competitors in the minds of target consumers. 8. **Perceptual Mapping**: A visual representation of how consumers perceive various products or brands in relation to each other, often based on attributes like quality and price. 9. **Differentiation**: The process of distinguishing a product from others to make it more attractive to a specific target market. 10. **Repositioning**: Changing the target market\'s perception of a brand in relation to competing brands, often in response to market changes or consumer feedback. **Concept Summary for Chapter 8** - **Importance of Segmentation**: Market segmentation allows marketers to tailor their strategies to meet the unique needs of different customer groups, leading to more effective marketing efforts. - **Targeting Strategy**: Choosing the right targeting strategy is critical; businesses can either focus on a broad audience or concentrate on specific segments depending on their resources and market conditions. - **Effective Positioning**: A clear and compelling positioning strategy helps consumers understand how a product meets their needs better than competitors, which is essential for brand success. - **Perceptual Mapping**: This tool helps marketers visualize consumer perceptions of their brand compared to competitors, aiding in decision-making regarding positioning and differentiation.