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
• Price 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
• Business orientations over time

  • Production oriented
  • Selling oriented
  • Product oriented
  • Marketing oriented
  • Value oriented
  • One-to-one era
  • Service-dominant logic era
  • Post-COVID era (slower growth, demarketing, anti-consumption)
• Key aspects of marketing

  • Marketing helps create value
  • Marketing helps communicate value
  • Marketing helps deliver value
  • Marketing helps exchange 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
• 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 are
• Everything starts with customers
• 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
• 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

  
• 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

  
• Conducting a situation analysis

  • Important to understand the decision or action being considered to focus the analysis on relevant aspects
  • Analyze the company's internal environment (resources, capabilities, corporate partnerships) in comparison to competitors
  • Analyze the external environment (political/legal/regulatory, economic, socio-cultural, technological, and competitive factors)

  
• Internal environment (micro environment)

  Company resources, capabilities, and corporate partnerships, analyzed in comparison to competitors

  
• Aspects to analyze in the internal environment

  • Company brand reputation
  • Corporate culture
  • Specific assets or patents
  • Manufacturing process
  • Corporate partnerships

  
• External environment (macro environment)


  Political/legal/regulatory, economic, socio-cultural, technological, and competitive factors that affect the organization
• When companies globalize, analyzing the environment becomes more complex because they must examine the external environment in each country in which they do business
• Companies must focus on external environment factors that are relevant for the decision or action to be taken
• Political and legal/regulatory environment


  Government regulations and agencies that enforce them to protect consumers and businesses
• Regulations vary across countries and states, affecting a company's strategy
• Different government agencies enforce the numerous regulations that have been established to protect both consumers and businesses
• Reopening Ontario Act 2020


  Legislation that regulates the opening and operating of business during the various phases of the COVID-19 virus
• Food and Drugs Act 1985


  Legislation that regulates the labeling of consumable products, such as food and medicine