Textbook Flashcards - MKT 100

• Marketing


  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
• Components of marketing


  • Creating value
  • Communicating value
  • Delivering value
  • Exchanging value
• Value


  Everything a customer gets for what they give up
• Value is formed by customers based on the expectations built up or developed by the brand/company (brand positioning)
• Personal value equation


  Value = Benefits received - [Price + Non-financial costs]
• Value varies for each consumer because their tastes and the time/effort they put into shopping varies
• The 4 Ps of marketing

  • Product/Service
  • Promotion
  • Place/Distribution
  • Price
• Product/Service Strategy


  • Creating offerings that have value
• Pricing Strategy


  • Exchanging offerings
• Promotion Strategy


  • Communicating offerings
• Place (Distribution) Strategy


  • Delivering offerings
• Marketing concept


  A philosophy that requires marketers to seek to satisfy customer wants and needs, while recognizing that exchange must be profitable for the company to be successful
• Business eras


  • Production era
  • Selling era
  • Product orientation
  • Marketing era (market orientation)
  • Value orientation
  • One-to-one era
  • Service-dominant logic era
• Marketing helps create value
• Service-dominant logic


  An approach to business that recognizes that consumers want value no matter how it is delivered, whether it's via a product, a service, or a combination of the two
• Some marketers believe that the time after the COVID pandemic will be the start of a new era defined by slower growth, demarketing and anti-consumption as consumers seek to buy and use fewer resources
• This will challenge marketers like never before to work to reduce their impact on the planet while at the same time ensuring the financial viability of their organizations
• Marketing


  • Helps create value
  • Is about satisfying customer needs and wants
  • Always entails an exchange between parties
  • Requires marketing mix decisions
  • Can be performed by both companies and individuals
  • Occurs in many situations
• Marketing delivers value to both the customer and the company
• Marketing is a functional area in companies, just like operations and accounting
• Everything in marketing starts with customers
• Examples of company mission statements


  • IBM
  • Coca-Cola
  • Pfizer Pharmaceuticals
  • Interface Carpet and Flooring Products
• Apple's mission statement reflects a product orientation, not a marketing orientation
• Marketing is criticized for creating wants among consumers for products and services that aren't always needed
• Sustainability


  Engaging in practices that do not diminish the earth's resources
• Companies must undertake the difficult and long-term job of reducing the resources used at every step of the manufacturing and production process
• Ethics


  Requiring that you only do no harm
• Social responsibility


  Requiring that you must actively seek to improve the lot of others
• People are demanding businesses take a proactive stance in terms of social responsibility, and they are being held to ever-higher standards of conduct
• Technology has increased the amount of information available to decision makers, allowing for better evaluation of a firm's performance
• Strategic planning


  A process that helps an organization allocate its resources to capitalize on opportunities in the marketplace
• Strategic planning process


  • Includes conducting a situation analysis and developing the organization's mission statement, objectives, and strategies
  • Followed by the development of a segmentation, targeting and positioning strategy and the implementation of the marketing mix to support the strategy

  
• Strategic planning process


  1. Conducting a situation analysis

  2. Developing the organization's mission statement, objectives, and strategies

  3. Developing a segmentation, targeting and positioning strategy

  4. Implementing the marketing mix

  
• Situation analysis


  Analyzing the environment in which the business operates, including both the external (macro factors outside the organization) and the internal (micro – company) environments

  
• Internal (micro) environment


  • Company resources (financial, technological, etc), capabilities (such as personnel, and processes) and corporate partners (such as distribution and suppliers)

  
• External (macro) environment


  • Political/legal/regulatory, economic, socio-cultural, technological, and competitive (PESTC) environments

  
• External environment


  Significantly affects the decisions a company makes
• Micro (internal) environment analysis

  Assessing the company's resources, capabilities and corporate partnerships in comparison to the competition

  
• Aspects to consider in micro environment analysis

  • Company brand reputation
  • Corporate culture
  • Exclusive assets or patents
  • Manufacturing processes
  • Corporate partnerships

  
• Direct competitors


  Competitors that offer the same or similar products/services