Determining the needs of a targeted group of consumers and satisfying those needs by using the 4 P’s of marketing to create an immediate exchange of value and a long term relationship.
4 P’s of Marketing?
– Product – physical good, service, idea – Price – value to be exchanged – Promotion – how communicated – Place – where available
Make what you can sell rather than Selling what you can make
People giving up something to receive something they would rather have.
Conditions of Exchange?
1) At least 2 parties. 2) Each party has something that might be of value to the other. 3) Each party is capable of communication and delivery. 4) Each party is free to accept / reject offer. 5) Each party is ok dealing with the other party.
A philosophy that focuses on the internal capabilities of he firm rather than on the needs and desires of the marketplace. Problem: lack of understanding the needs of the marketplace.
the ideas that people will buy more goods and services if aggressive sales techniques are used and that high sales results in high profits. Problem: lack of understanding needs of marketplace.
a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase the product; it is synonymous with the marketing concept. Involves understanding competitor's strengths and weaknesses.
Societal Marketing Orientation?
The idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals' and society's long-term best interests. Ex: Coke building largest recycling plant.
A strategy that focuses on keeping and improving relationships with current customers. Training employees to be customer-oriented.
delegation of authority to solve customer's problems quickly - usually by the first person that the customer notifies regarding a problem. Ex: Ritz-Carlton employees are encouraged to take whatever steps to ensure guests enjoy their visit.
collaborative efforts of people to accomplish common objectives. Ex: Walt Disney World assigns employees to teams and teach them team-building skills. Emphasize cooperation over competition.
What are Ethics?
The moral principles or valuesthat generally govern theconduct of an individual or group.
What are Morals?
the rules people develop as a result of cultural values and norms. Considered foundation for ethical behavior.
calculating, self-centered, even selfish, based on what is immediately punished or rewarded.
expectations of society; loyalty and obedience to organization/society; decision maker concerned with whether action is legal and how viewed by others.
people are less concerned with how others see them and more concerned about how they judge themselves over long run.
Code of ethics?
guideline to help marketing managers and other employees make better decisions.
Advantages to the code of ethics?
- help employees identify what their firm recognized as acceptable. - can be effective internal control on behavior (more desirable than external controls like government regulation). helps employees make better decisions.
Corporate Social Responsibility?
A business's concern for society's welfare.
Pyramid of CSR (Corporate Social Responsibility)
1) Philanthropic - Be a good citizen. 2) Ethical - Do what is
right. 3) Legal - Obey the Law. 4) Purpose - Be profitable.
In making a decision,
consider these 4 sets of norms...?
1) Societal Norms. 2) Personal Norms/values. 3) Company norms. 4) General Business Norms.
the idea that socially responsible companies will outperform their peers by focusing ont he world's social problems and viewing them as opportunities to build profits and help the world at the same time. Companies will die if people are poor.
the development of marketing of products designed to minimize negative effects on the physical environment or to improve the environment.
What is caveat emptor?
"Let the buyer beware".
What is moral idealism?
If any bad occurs, then the action is unethical.
What is Utilitarianism?
Balance good versus bad.
What is puffery?
An advertiser who fails to tell the truth and not only offends against morality but also against the law. Puffery is legal, false advertising is not.
Uncontrollable elements outside of any organization that may affect its performance.
strategies that attempt to shape the external environment within which it operates.
A defined group most likely to buy a firm's product
External Environmental Factors?
Social Demographic Economic Technological Political and Legal Competitive
People born between 1979 and 1994. Impatient, family-oriented, opinionated, diverse, street smart.
People born between 1965 and 1978. Savvy and cynical consumers.
People born between 1946 and 1964. Largest demographic.
the practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single, traditional lifestyle.
a comparison of income versus the relative cost of a set standard of goods and services in different geographic areas. Income - cost of living = purchasing power.
Basic vs Applied Research?
Basic: "pure research" that aims to confirm an existing theory or to learn more about a concept or phenomenon. Ex: Focus on high-energy plastics. Applied: an attempt to develop new or improved products. Ex: US leads in aircraft research.
Different Business Cycles?
• Recession – falling income/employment/production • Focus on value • Recovery – rising income/employment/production • Focus – on buy now for better times on the way • Prosperity – high income/employment/ production • Focus on convenience/reward • Depression – low income/employment/production • Focus on basic needs
What Act talked about false advertising?
Wheeler - Lea Act.
The Federal Trade Commission (FTC) is an agency that eliminates and prevents things that regulators perceive to be harmfully anti-competitive business practices.
processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and product use.
Characteristics of High Involvement Purchases?
Important to consumer Risk is present Consumers see substantial differences between alternatives
The Consumer Decision Making Process?
1) Need Recognition: result of an imbalance between actual and desired states. 2) Information Search: External (high-involvement) or Internal (low-involvement). 3) Evaluation of Alternatives. 4) Purchase. 5) Post-purchase behavior/evaluation.
1. Need Recognition
Marketing helps consumers recognize an imbalance between present status and preferred state. External and Internal need recognition.
2. Information search
Collecting data to help make a reasonable decision Internal information search External information search Results in Evoked Set
3. Evaluation of alternatives
• Narrowing down and rating possible choices Evaluative criteria
Final purchase. What/where/when/why/how to buy.
5. Postpurchase behavior
Comparing outcomes to expected results “Was my choice wise?” Cognitive Dissonance Ways it is reduced by buyer Ways it is reduced by seller
inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions. Consumers try to reduce dissonance by justifying their decision, seeking new information that reinforces positive aspects. Marketers can reduce dissonance.
5 Factors of Consumer Buying Decisions?
1) Level of consumer involvement. 2) length of time to make decision. 3) cost of a good or service. 4) degree of information search. 5) number of alternatives considered.
Factors Influencing Consumer Buying Decisions?
Cultural, Social, Individual, and Psychological.
Process by which people select, organize, and interpret stimuli into a meaningful and coherent picture.
We notice things important to us
Change info that conflicts with beliefs
We remember things we agree with
Maslow's Hiearchy of Needs
1) Physiological 2) Safety 3) Social 4) Self-Esteem 5) Self-Actualization.
how cultural values and norms are passed down to children.
What is a Market?
people or organizations with needs or wants and the ability and willingness to buy
a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.
the process of dividing a market into meaningful, similar, and identifiable segments or groups.
Dividing a market by the amount of product bought or consumed.
holds that 20% of all customers generate 80% of the demand.
Firm assumes all consumers are the same, relative to the product category. Ex: Henry Ford's only black colored model T
strategy that chooses 2 or more well-defined market segments and develops a marketing mix for each. Downside can be cannibalization,
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