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Thursday, September 23

  1. page Chapter 7 edited Initial Terms Buying behavior - the decision processes and actions of people involved in buying…

    Initial Terms
    Buying behavior - the decision processes and actions of people involved in buying and using products
    Consumer buying behavior - the decision processes and purchasing activities of people who purchase products for personal or household use and not for business purposes
    Level of Involvement & Consumer Problem-Solving Processes
    Level of involvement - an individual's degree of interest in a product and the importance of the product for that person
    Involvement level affects a person's selection of three types of consumer problem solving:
    Countinized response - used when buying frequently purchased, low-cost items that require very little search and decision effort
    Limited problem solving - used when purchasing products occasionally or needing information about an unfamiliar brand in a familiar product category
    Extended problem solving - used when purchasing unfamiliar, expensive or infrequently bought products
    Consumer Buying Decision Process
    Consumer buying decision process - A 5 stage purchase decision process that includes problem recognition, information search, evaluation of alternatives, purchase, and past purchase evaluation
    Problem Recognition
    Awareness of a difference between a desired state and an actual condition
    Marketers use sales personnel, advertising, and packaging to help trigger recognition of such needs or problems
    Information Search
    Internal search -buyers search their memories for information about products that might solve their problems
    External search - buyers seek information from sources other than their memories
    Evaluation of Alternatives
    Considered set - a group of brands within a product category that a buyer views as alternatives for possible purchase
    Evaluative criteria - objective and subjective product characteristics that are important to a buyer
    Framing - describing alternatives and attributes in a certain manner
    Purchase
    Based on the outcome of the evaluation stage
    Not only choice of product but also choice of seller
    Post-Purchase Evaluation
    Cognitive dissonance -a buyer's doubts shortly after the purchase about whether or not the product was the right choice; buyer's remorse
    Situational Influences on the Buying Decision Process
    Situational influences - influences that result from circumstances, time, and location that affect the consumer buying decision process
    Physical surroundings, social surroundings, time perspective, reason for purchase, mood and condition
    Psychological Influences on the Buying Decision Process
    Psychological influences - factors that in part determine people's general behavior, which influences their behavior as a consumer
    Perception
    Perception - the process of selecting, organizing, and interpreting information inputs to produce meaning
    Information inputs - sensations received through sight, taste, hearing, smell, and touch
    Selective exposure - process by which some inputs are selected the reach awareness and others are not
    Selective distortion - an individual's changing or twisting of information that is inconsistent with personal beliefs or feelings
    Selective retention - remembering information inputs that support personal feelings and beliefs and forgets inputs that do not
    Information is not received in an organized form
    Closure occurs when a person mentally fills in missing elements in a pattern or statement
    Commonly used in advertising as incomplete images, sounds, or phrases
    Interpreting is the assignment of meaning based on what is expected or familiar
    Marketers try to influence buyer perception through information but there are problems:
    A consumer's perceptual process may operate such that a seller's information never reaches the person
    A buyer may perceive it differently than intended
    A buyer may find the information inconsistent with their beliefs and forget the information
    Motives
    Motives - an internal, energizing force that directs a person's behavior toward satisfying needs or achieving goals
    Buyers' actions are based on a set of motives, not a single motive
    Maslow's Hierarchy of Needs - the five levels of needs that humans seek to satisfy from most to least important
    Psychological needs - requirements for survival
    Food, water, sex, clothing & shelter
    Safety needs - security and freedom from physical and emotional pain and suffering
    Life insurance, air bags, vitamins, etc
    Social needs - the human requirement for love, affection, and a sense of belonging
    Beauty products, brand name items
    Esteem needs - requirement for respect and recognition from others as well as self-esteem
    High brand or high price items
    Self-actualization needs - need to grow and develop, and to become all one is capable of becoming
    Memberships, educations, lessons
    Patronage motives - motives that influence where a person purchases on a regular basis
    Learning
    Learning - refers to changes in a person's thought processes and behaviors caused by information and experience
    Attitudes
    Attitudes - an individual's enduring evaluation of feeling about and behavioral tendencies toward an object or idea
    Consists of 3 major components:
    Cognitive - the person's knowledge and information about the object or idea
    Affective - the person's feelings and emotions about the object or idea
    Behavioral - manifests itself in the person's actions toward the object or idea
    Attitude scales - a means of measuring consumer attitudes by gauging the intensity of individual's reactions to adjectives, phrases, or sentences about an object
    Personality and Self
    Personality - a set of internal traits and distinct behavioral tendencies that result in consistent patterns of behavior in certain situations
    Marketers focus on positively valued personality characteristics such as security consciousness, sociability, independence or competitiveness rather than negatively valued ones such as insensitivity or timidity
    Self-concept - self-image; a perception or view of oneself
    Lifestyles
    Lifestyle- an individual's pattern of living expressed through activities, interests, and opinions
    Way time is spent, extent of social interaction, general outlook on life and living, personality, age, education, income, and social class
    8 basic groups
    Have high resources and high innovation
    Innovators
    Primary Motives
    Ideals
    Achievements
    Self-Expression
    Thinkers
    Achievers
    Experiencers
    Believers
    Strivers
    Markers
    Have low resources and low innovation
    Survivors
    Social Influences on the Buying Decision Process
    Role - actions and activities that a person in a particular position is supposed to perform based on expectations of the individual and surrounding persons
    Family Influences
    Consumer socialization - the process through which a person acquires the knowledge and skills to function as a consumer
    Children gain this through their parents
    Family decision making processes go into 4 categories:
    Decision Type
    Decision Maker
    Types of Products
    Husband Dominant
    Male head of house
    Lawn equipment, appliances, tools, stereo equipment
    Wife Dominant
    Female head of house
    Her & kids clothes, groceries, kitchen and bathroom needs, decorations
    Autonomic
    Equally by either, not by both
    His clothes, luggage, games, sports equipment, cameras
    Syncratic
    Join decision
    Vacations, televisions, furniture, financial planning, vehicles
    Gatekeeper is the household member who collects and controls information
    Reference Groups
    Reference group - a group that a person identifies with so strongly that they adopt the values, attitudes, and behaviors of the group members.
    Families, colleagues, Greek life, civic or professional organizations, church groups
    Three types:
    Membership - an individual actually belongs
    Aspirational - a group to which an individual aspires to belong in
    Dissasociative - a group that a person does not want to be associated with
    May serve as a person's point of comparison and source of information
    The extent to which a reference group affects a purchase decision depends on the product's conspicuousness and the susceptibility to reference group influence
    Conspicuousness is determined by whether others can see it and if it attracts attention
    Opinion Leaders
    Opinion leader - a member of an informal group who provides information about a specific topic to other group members
    Leader
    Possible topic
    Religious
    Charities, political ideas, lifestyle choices
    Sorority President
    Clothes, shoes, hair styles, nail salons
    Movie Buff Friend
    Movies or shows to watch, rent or buy
    Doctor
    Health products, medication, vitamins
    Techie Friend
    Computers, software, internet, video games
    Digital Networks
    Blogs - web-based journals in which people can editorialize and interact with other Internet users
    Wikis - software that creates an interface that enables users to add or edit content
    Social networks - web-based services that allow members to share personal profiles that include blogs, pictures, audio, and video
    Social Class
    Social class- an open group of individuals with similar social rank
    Occupation, education, income, wealth, race, ethnic group, and possessions
    Have predictable buying patterns
    Middle and working class are largest
    Culture and Subculture
    Culture - the accumulation of values, knowledge, beliefs, customs, objects, and concepts of society
    Determines product purchases
    Subculture - a group of individuals whose characteristics, values, and behavioral patterns are similar within the group and different from those in the surrounding culture
    African-American Subculture
    12.4% of the population
    $1.1 trillion in buying power by 2012
    Hispanic Subculture
    15% of the population
    $1.2 trillion in buying power by 2012
    Asian-American Subculture
    4.4% of the population
    $670 billion in buying power by 2012

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    7:32 am

Wednesday, September 22

  1. page Chapter 4 edited ... 3. Social Responsibility Issues a. Natural environment ... their lifetimes. 1. Co…
    ...
    3. Social Responsibility Issues
    a. Natural environment
    ...
    their lifetimes.
    1. Conservation, water, air, & land pollution
    b. Green marketing - strategic process involving stakeholder assessment to create meaningful long-term relationships with customers while maintaining, supporting, and enhancing the natural environment
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    9:42 pm
  2. page Chapter 1 edited ... ii. Target market - the specific group of customers that organizations generally focus their m…
    ...
    ii. Target market - the specific group of customers that organizations generally focus their marketing efforts on
    1. Can be large or small groups
    ...
    distribution systems.
    ii. Marketing Deals with Products, Distribution, Promotion, and Prices
    i. Marketing involves developing and managing a product that will satisfy customer needs
    ...
    1. Two or more individuals, groups, or organizations must take part and each must possess something of value the other wants
    2. Exchange should provide a benefit or satisfaction to both parties
    ...
    the other
    4. Each party must meet expectations
    a. Achieving all 4 conditions does not guarantee the exchange.
    ...
    and outcomes
    1. Includes customers, employees, investors, shareholders, suppliers, governments, communities
    iv. Marketing occurs in a dynamic environment
    ...
    b. A positive association between customer satisfaction and shareholder value
    c. High levels of customer satisfaction creates attraction and retention of high quality employees and managers
    ...
    Marketing Concept
    i. Product Orientation
    1. 1850s - 1910s
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    9:27 pm
  3. page Chapter 3 edited ... when a manager defines their target market, they simultaneously define a set of competitors. …
    ...
    when a manager defines their target market, they simultaneously define a set of competitors.
    all firms compete with each other for consumer dollars
    competition- "othercompetition
    "other
    firms that
    ...
    budget"
    brand competitors- "marketcompetitors
    "market
    products with
    ...
    similar prices" (ex:(ex: diet coke
    brand competitors are most significant because buyers see the products as direct substitutes for one another
    product competitors- "competecompetitors
    "compete
    in the
    ...
    Water)
    generic competitors- "providecompetitors
    "provide
    very different
    ...

    total budget competitors- "competecompetitors
    "compete
    for the
    types of competitive structures
    monopoly
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    8:43 pm
  4. page Chapter 8 edited Chapter 8 Business Markets and Buying Behavior Business Markets (B2B Markets) “consists of indi…
    Chapter 8
    Business Markets and Buying Behavior
    Business Markets (B2B Markets)
    “consists of individuals, organizations or groups that purchase a specific kind of product for resale, direct use in producing other products, or use in general daily operations”
    similar to consumer markets but there are structural/behavioral differences in B2B markets
    must understand how product will affect other FIRMS in the marketing channel (resellers, manufacturers, etc...)
    products can be technically complex
    buyers more sophisticated
    know about the products
    have specific tech/spec questions relating to product
    relationships often based on long term mutually profitable relationships across members of marketing channel
    Producer Markets
    “individuals and business organizations that purchase products to make profits by using them to produce other products or using them in their operations”
    include buyers of raw materials, and purchasers of finished/semifinished items used to produce other products
    Reseller Markets
    “consist of intermediaries, such as wholesalers and retailers, that buy finished goods and resell them for a profit”
    do not change physical characteristics of the products they handle
    all consumer products (except direct sellers) go through resellers
    wholesalers purchase products for resale to retailers, other wholesalers and producers, governments and institutions
    retailers resell to final consumer
    when purchasing, retailers
    evaluate level of demand
    determines quantity/price
    asses amount of space needed w/in store
    appraise supplier's ability to restock when needed
    ease of placing order
    availability of tech assistance/training programs
    new products: how it competes with/compliments currently stocked products
    Government Markets
    “federal, state, county or local governments that buy goods and services to support their internal operations and provide products to their constituencies”
    ex: office supplies, health care services, vehicles, heavy equipment, weapons
    provide highways, education, water, energy, national defense, etc...
    Types/quantity of products reflect social demands on government agencies
    accountable to public → relatively complex set of buying procedures
    make purchases through bids or negotiated contracts
    bids (bidding system)
    firms must apply/be approved for placement on list of qualified buyers
    government unit sends out detailed description of products to qualified bidders
    businesses submit bids to government
    government unit (usually) required to accept lowest bid
    negotiated contract
    used when buying nonstandard or highly complex products
    government selects only a few firms
    advantage: very lucrative contracts
    disadvantage: intimidating requirements/red tape
    Institutional Markets
    “organizations with charitable, educational, community or other nonbusiness goals”
    members: churches, hospitals, frats/sororities, charitable organizations, private colleges
    have different goals/fewer resources → marketers use special marketing efforts to serve them
    Dimensions of Marketing to Business Customers
    Characteristics of Transactions with Business Customers
    big purchases (quantity and price)
    long-term agreements
    take lots of marketing time/effort
    collaboration of many departments
    departments need for product, develops specs, sets max expenditures, places order
    reciprocity
    “an arrangement unique to business marketing in which two organizations agree to buy from each other”
    agreements with threaten competition are illegal
    can lead to lower morale among agents and lead to less than optimal purchases
    Attributes of Business Customers
    better informed
    demand detailed info/specs about product
    psychological satisfaction that comes from organizational advancement and financial rewards
    Primary Concerns of Business Customers
    consider: price, product quality, service and supplier relationship
    likely to compare price of product vs. benefits product will yield to the organizations, often over a period of years
    quality
    standards (% of defects)
    specifications (set of characteristics)
    drop suppliers who have product that does not meet specs
    don't often buy from those that exceed specs since pricey/extra features may be considered wasteful
    service
    desired
    market info
    inventory maintenance
    can resupply customer easily/quickly
    on-time delivery
    business buyers responsible for timely product output
    repair services
    need
    tech product info
    data regarding demand
    info about general economic conditions or
    supply and delivery info
    quality
    customer service (complaints/questions/orders)
    costs of developing/maintaining relationship with suppliers
    reduce search efforts/expenses → loyalty
    Methods of Business Buying
    description
    can choose product/seller by describing if products are standardized (size, shape, weight, color, etc...)
    can specify quantity, grade and other attributes
    common between pre-existing B2B relationships
    inspection
    condition, faulty parts, age, used, etc..
    sampling
    take section of product from lot to test, assuming all product is represented by the sample
    appropriate when product is homogeneous and examining entire lot is not feasible
    negotiation
    buyers submit specs, sellers submit bids
    most often used for onetime projects
    buildings, capital equipment, special projects
    Types of Business Purchases
    new-task purchase
    “an organization makes an initial purchase of an item to be used to perform a new job or solve a new problem”
    may require development of product specs, vendor specs, and procedures for future purchases of that product
    important-can mean future, consistent sales
    straight rebuy purchase
    “a routine purchase of the same products under approximately the same terms of sale by a business buyer”
    use same suppliers, terms of sale, specs
    try to set up automatic reorder systems
    modified rebuy purchase
    “a new task purchase that is changed on subsequent orders or when the requirement of a straight rebuy purchase are modified”
    seeking faster delivery, lower prices, different quality level
    may cause suppliers to be more competitive
    change in terms of service counts as modified rebuy
    Demand for Business Products
    Derived demand
    “demand for industrial products that stems from demand for consumer products”
    no B2B demand is free from consumer demand
    Inelastic Demand
    “demand that is not significantly altered by a price increase/decrease”
    applies only to industry demand for business products, not to the demand an individual firm faces
    Joint Demand
    “demand involving the use of two or more items in combination to produce a product”
    especially for raw materials
    Fluctuating Demand
    tied to consumer demand/consumer purchasing → fluctuates greatly without warning
    Business Buying Decisions
    business (organizational) buying behavior
    “refers to the purchase behavior of producers, government units, institutions, and resellers
    The Buying Center
    “the groups of people within the organizations who make business purchase decisions”
    users
    will be the ones to use the product
    usually initiate purchase process/generate purchase specs
    after, evaluate product performance
    influencers
    tech personnel
    help develop specs and evaluate alternate products
    important when product involved new/advanced technology
    buyers
    select suppliers and negotiate terms of purchase
    may be involved in developing specs
    “purchasing agents” or “purchasing managers”
    straight relay-major rule in vendor selection/negotiations
    deciders
    choose products
    for routinely purchased items, buyers=deciders
    gatekeepers
    secretaries, tech personnel
    control flow of info to/among others within buying center
    buyers who deal directly with vendors=gatekeepers
    size of buying center
    bigger for new-task than straight rebuy
    Stages of the Business Buying Decision Process
    Step 1: Recognize the Problem
    machine malfunction, firm modifies/introduces product, etc...
    users, influncers, buyers
    Step 2: Develop Product Specifications to solve the problem
    buying center participants assess problem/need to determine what is necessary to resolve/satisfy it
    users, influencers
    Step 3: Search for and Evaluate possible products and suppliers
    look in company files and trade directories, contact suppliers for info, solicit proposals from known vendors, examine websites, catalogs and trade publications
    value analysis
    “an evaluation of each component of a potential purchase”
    examines quality, design, materials, possibly item reduction/deletion to save costs
    vendor analysis
    “a formal, systematic evaluation of current and potential vendors”
    focuses on price, quality, deliver service, availability and overall reliability
    Step 4: Select product and supplier and order product
    this stage uses results from 3rd stage
    multiple sourcing
    “an organization's decision to use several suppliers”
    sole sourcing
    “an organizations decision to use only one supplier”
    firms with federal government contracts required to have several sources for item
    sole sourcing discouraged except when only one supplier exists for the product
    however, sole sourcing common because better communications between buyer and supplier, stability, seller price up and buyer price down
    multiple sourcing reduces possibility of shortage by strike, shortage, or bankruptcy
    Step 5: Evaluate product and supplier performance
    compare product with specs
    results become feedback for other stages in future business purchasing decisions
    5 step process used primarily with new-task purchases & several (but not necessarily all) stages used for modified rebuy and straight rebuy
    Influences on the business buying decision process
    Environmental
    competitive and economic factors, political forces, legal/regulatory forces, technological changes, sociocultural issues
    factors → uncertainty → apprehensive buying center
    Organizational
    company's objective, purchasing policies, and resources, size and composition of buying center
    Interpersonal
    relationship among people in buying center
    trust needed
    dynamics often hidden, making it difficult for marketers to assess
    Individual factors
    personal characteristics of people in buying center
    age, education level, personality, tenure, position in organization
    Using Industrial Classification Systems
    Identify Potential Business Customers
    SIC (Standard Industrial Classification) system
    developed by federal government to classify selected economic characteristics of industrial, commercial, financial and service organizations
    NAICS (North American Industry Classification System)
    “an industry classification system that generates comparable statistics among the US, Canada and Mexico”
    replaced SIC
    generate comparable stats among NAFTA countries
    classification based on types of production activities performed
    similar to ISIC (Europe)
    SIC: 10 divisions, NAICS: 20 divisions
    industry classification: NAICS>SIC
    industry classification systems enable marketers to categorize organizations into groups based on types of goods/services provided
    Input-outputs works well with ICS's (industry classification systems)
    based on assumption that output (sales) of one industry is input (purchases) of others
    Input-output data
    “information that identifies what types of industries purchase the products of a particular industry”
    survey of current business (major source of data)
    Output data → find industrial classifications #s for those industries
    IC #s → find # of organizations that are potential buyers
    Estimating Purchase Potential
    marketer must find relationship between size of customers' purchases and variable available in IC data
    IC variable = example: # of employees
    once relationship established → applied to customer groups to estimate potential purchases
    then select customer groups with most sales and profit potential
    problems with IC data
    a few industries don't have specific designations
    transfer of products from one establishment to another is counted as part of total shipments
    may be double counted when transferred within the same firm
    some data (such as value of total shipments) may be understated
    lags exist between data collection time and release of information

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    8:41 pm
  5. page Chapter 4 edited 1. The Nature of Social Responsibility a. Social responsibility - an organization's obligation t…
    1. The Nature of Social Responsibility
    a. Social responsibility - an organization's obligation to maximize its positive impact and minimize its negative impact on society
    i. Performance without purpose is not a long-term sustainable formula
    2. The Dimensions of Social Responsibility
    a. Marketing citizenship - the adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders
    b. The Pyramid
    i. Philanthropic
    1. Be a good corporate citizen
    2. Improve community
    ii. Ethical
    1. Obligation to do what is right, just, and fair
    iii. Legal
    1. Obey the law
    iv. Economic
    1. Be profitable
    2. The foundation upon which the others rest
    c. Stakeholder orientation is when companies consider the diverse perspectives and following up on expectations
    d. Economic - be profitable so that the community can benefit from jobs, goods, and services
    e. Legal - obey the law and avoid fraud which destroys consumer trust
    f. Marketing ethics - principles and standards that define acceptable marketing conduct as determined by various stakeholders
    g. Ethics - foster trust
    h. Philanthropic - promote human welfare or goodwill
    i. Cause-related marketing - the practice of linking products to a particular social cause on an ongoing or short-term basis
    1. Gives consumers a "feel good" feeling
    ii. Strategic philanthropy - synergistic use of organizational core competencies and resources to address key stakeholders' interests and achieve both organizational and social benefits
    3. Social Responsibility Issues
    a. Natural environment
    i. Consumers insisting not only on a good quality of life but on a healthful environment so they can maintain a high standard of living during their lifetimes.
    1. Conservation, water, air, & land pollution
    b. Green marketing - strategic process involving stakeholder assessment to create meaningful long-term relationships with customers while maintaining, supporting, and enhancing the natural environment
    c. Consumerism
    i. Activities undertake by independent individuals, groups, and organizations to protect their rights as consumers
    1. Right to: safety, information, choice, and to be heard
    d. Community Relations
    i. Society eager to have marketers contribute to its well-being, wishing to know what marketers do to help solve social problems
    1. Equality issues, disabled citizens, safety & health, education & general welfare
    4. Marketing Ethics
    a. Ethical standards should be viewed from several angles
    i. Company, industry, government, customers, special-interest groups, and society at large
    b. Ethical issues in marketing
    i. Ethical issue - an identifiable problem, situation, or opportunity requiring a choice among several actions that must be evaluated as right or wrong, ethical or unethical
    ii. Ethical issues related to the marketing mix
    1. Product - when marketers fail to disclose risks associated with a product or information regarding the function, value, or use of a product
    2. Promotion - false or misleading advertisements, manipulative or deceptive sales promotions, tactics, and publicity
    3. Pricing - price fixing, predatory pricing, failure to disclose the full price
    4. Distribution - relationships among producers & marketing middlemen
    5. The Nature of Marketing Ethics
    a. Individual factors - decision based on one's own sense of right and wrong
    b. Organizational relationships - work groups, committees, conversations, and discussions
    c. Organizational (corporate) culture) - a set of values, beliefs, goals, norms, and rituals that members of an organization share
    i. Codes of conduct, memos, manuals, dress codes, and ceremonies; work habits, extracurricular activities, and anecdotes
    d. Opportunity
    i. Conditions that limit barriers or provide rewards
    e. Improving Ethical Conduct
    i. Codes of Conduct
    1. Compliance programs and uniform standards that describe what the company expects of its employees
    ii. Ethics Officers
    1. Respect legal and ethical standards
    2. Responsible for creating and distributing a code of conduct, enforcing the code and meeting with organizational members to discuss issues or provide advice
    iii. Implementing Ethical & Legal Compliance Programs
    1. Nurture, communicate, & coach
    2. Consistency is key
    6. Incorporating Social Responsibility & Ethics
    a. Ethics - individual or group decisions, judgments about right or wrong in a particular decision-making situation
    b. Social responsibility - deals with the total effect of marketing decisions on society
    7. The Challenge of Ethical and Social Responsible Behavior
    a. An organization's top management must assume some responsibility for employers' conduct by establishing and enforcing policies that address society's desires
    8. Social Responsibility & Ethics Improve Performance
    a. A relationship exists between a marketing orientation and social responsibility
    b. A direct association exists between corporate social responsibility and customer satisfaction, profits, and market value

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  6. page Chapter 1 edited Defining 1. Defining Marketing The i. The process of ... dynamic environment. Market…

    Defining
    1. Defining Marketing
    The

    i. The
    process of
    ...
    dynamic environment.
    Marketing

    i. Marketing
    Focuses on Customers
    Customers

    i. Customers
    - the
    ...
    marketing activities
    Target

    ii. Target
    market -
    ...
    efforts on
    Can

    1. Can
    be large
    ...
    small groups
    Can

    2. Can
    target multiple
    ...
    distribution systems.
    Marketing

    ii. Marketing
    Deals with
    ...
    and Prices
    Marketing

    i. Marketing
    involves developing
    ...
    customer needs
    Involves

    1. Involves
    right place
    ...
    right price
    Involves

    2. Involves
    communication information
    Marketing

    3. Marketing
    mix -
    ...
    market customers
    The

    a. The
    Product Variable
    Successful

    i. Successful
    marketing efforts
    ...
    everyday life.
    Goods

    1. Goods
    are physical entities
    Services

    2. Services
    are the
    ...
    to customers
    Ideas

    3. Ideas
    include concepts,
    ...
    and issues
    Involves

    ii. Involves
    creating or
    ...
    repair services
    Goal

    iii. Goal
    achieving: create
    ...
    unacceptable profits.
    The

    b. The
    Distribution Variable
    Customer

    i. Customer
    satisfaction depends
    ...
    convenient locations
    Make

    ii. Make
    product available
    ...
    costs low
    The

    iii. The
    internet creates
    ...
    global storage
    The

    c. The
    Promotion Variable
    Relates

    i. Relates
    to activities
    ...
    its products
    Can

    ii. Can
    also urge
    ...
    social stance
    The

    d. The
    Price Variable
    Relates

    i. Relates
    to decisions
    ...
    determining prices
    High

    ii. High
    price establish
    ...
    quality image
    Economic

    iii. Economic
    conditions, competitive
    ...
    price adjustments
    Marketing

    iii. Marketing
    builds relationships with customers
    Exchanges

    i. Exchanges
    - the
    ...
    of value
    For

    ii. For
    an exchange
    ...
    4 conditions:
    Two

    1. Two
    or more
    ...
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    2. Exchange
    should provide
    ...
    both parties
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    3. Each
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    ...
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    4. Each
    party must meet expectations
    Achieving

    a. Achieving
    all 4
    ...
    the exchange.
    Stakeholders

    iii. Stakeholders
    - constituents
    ...
    and outcomes
    Includes

    1. Includes
    customers, employees,
    ...
    governments, communities
    Marketing

    iv. Marketing
    occurs in
    ...
    dynamic environment
    Marketing

    i. Marketing
    environment -
    ...
    marketing mix
    Market

    ii. Market
    environment forces
    ...
    3 ways:
    They

    1. They
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    ...
    for products
    Market

    2. Market
    environment forces
    ...
    marketing activities
    Marketing

    3. Marketing
    environment forces
    ...
    marketing mix
    Marketers

    a. Marketers
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    Understanding

    2. Understanding
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    Marketing

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    ...
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    Customer

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    b. A
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    ...
    shareholder value
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    c. High
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    ...
    and managers
    Evolution

    d. Evolution
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    Product

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    1. 1850s
    - 1910s
    Focus

    2. Focus
    on efficiency
    Sales

    ii. Sales
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    1920s

    1. 1920s
    - 1950s
    Focus

    2. Focus
    on promotion of goods
    Marketing

    iii. Marketing
    Orientation
    1950s

    1. 1950s
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    2. Focus
    on needs
    ...
    the customer
    Implementing

    e. Implementing
    the Marketing Concept
    Demands

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    3. Managing
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    ...
    satisfying exchanges.
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    ...
    customer needs
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    b. Customer
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    individual needs
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    ...
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    in marketing

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  7. page Chapter 1 edited Defining Marketing The process of creating, distributing, promoting, and pricing of goods, serv…

    Defining Marketing
    The process of creating, distributing, promoting, and pricing of goods, services, and ideas to facilitate satisfying exchange relationships with customers and develop and maintain favorable relationships with stakeholders in a dynamic environment.
    Marketing Focuses on Customers
    Customers - the focal point of all marketing activities
    Target market - the specific group of customers that organizations generally focus their marketing efforts on
    Can be large or small groups
    Can target multiple markets with different products, promotions, prices, and distribution systems.
    Marketing Deals with Products, Distribution, Promotion, and Prices
    Marketing involves developing and managing a product that will satisfy customer needs
    Involves right place and right price
    Involves communication information
    Marketing mix - four marketing activities - products, distribution, promotion, prices - that a firm can control to meet the needs of target market customers
    The Product Variable
    Successful marketing efforts result in products - goods, services, or ideas - that become a part of everyday life.
    Goods are physical entities
    Services are the application of human and mechanical efforts to people or objects to provide intangible benefits to customers
    Ideas include concepts, philosophies, images, and issues
    Involves creating or modifying brand names and packaging, and may include decisions regarding warranty and repair services
    Goal achieving: create new products, modify existing ones, and eliminate those that no longer satisfy buyers or yield unacceptable profits.
    The Distribution Variable
    Customer satisfaction depends on products must be available at the right time and in convenient locations
    Make product available to target market as much as possible in order to keep total inventory, transportation and storage costs low
    The internet creates a global market without the need for global storage
    The Promotion Variable
    Relates to activities used to inform individuals or groups about the organization and its products
    Can also urge people to take a particular political or social stance
    The Price Variable
    Relates to decisions and actions associated with establishing pricing objectives and policies and determining prices
    High price establish high quality image
    Economic conditions, competitive structure, or government regulations may prevent price adjustments
    Marketing builds relationships with customers
    Exchanges - the provision or transfer of goods, services, or ideas in return for something of value
    For an exchange to take place there are 4 conditions:
    Two or more individuals, groups, or organizations must take part and each must possess something of value the other wants
    Exchange should provide a benefit or satisfaction to both parties
    Each part must have confidence in the promise of the valuable held by the other
    Each party must meet expectations
    Achieving all 4 conditions does not guarantee the exchange.
    Stakeholders - constituents who have a stake or claim in some aspect of a company's products, operations, markets, industry, and outcomes
    Includes customers, employees, investors, shareholders, suppliers, governments, communities
    Marketing occurs in a dynamic environment
    Marketing environment - the competitive, economic, political, legal and regulatory, technological, and sociocultural forces that surround the customer and affect the marketing mix
    Market environment forces affection marketers ability to facilitate exchanges in 3 ways:
    They influence customers by affecting their lifestyles, standards of living, preferences and needs for products
    Market environment forces help determine whether and how a marketing manager can perform certain marketing activities
    Marketing environment forces may affect a marketing manager's decisions and actions by influencing buyers' reactions to the firm's marketing mix
    Marketers must plan for unknown and unpredictable changes in the environment
    Understanding the Marketing Concept
    Marketing concept - a philosophy that an organization should try to provide products that satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals
    Customer satisfaction is key
    A positive association between customer satisfaction and shareholder value
    High levels of customer satisfaction creates attraction and retention of high quality employees and managers
    Evolution of the Marketing Concept
    Product Orientation
    1850s - 1910s
    Focus on efficiency
    Sales Orientation
    1920s - 1950s
    Focus on promotion of goods
    Marketing Orientation
    1950s - present
    Focus on needs of the customer
    Implementing the Marketing Concept
    Demands the support of top level officials as well as managers and staff across all levels of the organization
    Managing Customer Relationships
    Relationship marketing - long term, mutually beneficial arrangements in which both buyer and seller focus on value enhancement through the creation of more satisfying exchanges.
    Greater customer confidence --> firm's better understanding of customer needs
    Customer centric marketing - developing collaborative relationships with customers based on focusing on individual needs
    Customer relationship management - using information about customers to create marketing strategies that develop and sustain desirable customer relationships
    Involves indentifying behavior patterns and focusing on the most profitable customers
    Value-Driven Marketing
    Value - a customer's subjective assessment of benefits relative to costs in determining the worth of a product
    Customer costs are monetary, time, and effort in location the good, and risk
    Marketing Management
    Marketing management - the process of planning, organizing, implementing, and controlling marketing activities to facilitate exchanges effectively and efficiently
    Planning - determines when and how marketing activities are performed and who performs them
    Market activities can be organized by functions, products, regions, types of customers or some combination of
    Implementation hinges on coordination and communication within all levels of the firm
    Control consists of establishing standards and comparing actual performances with those standards and reducing the difference
    Effective control has 4 requirements:
    Ensure a rate of information flow that allows a marketing manager to quickly detect any differences between actual and planned performance levels
    Accurately monitor activities and be flexible enough to accommodate changes
    Costs must be low relative to costs f there was no control process
    Designed so that managers and subordinates understand it
    The Importance of Marketing in a Global Economy
    Marketing costs are a big part of the price
    50-60% profits goes towards marketing costs
    Marketing is used by non-profit organizations
    Marketing is important
    Profits from sold products helps R&D
    Marketing fuels the global economy
    Marketing enhances consumer awareness
    Marketing connects people
    Surveys & feedback forums
    Green marketing - a strategic process involving stakeholder assessment to create meaningful long-term relationships with customers while maintaining, supporting, and enhancing the natural environment
    25-33% of the American workforce are in marketing

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Tuesday, September 14

  1. page Chapter 8 edited Chapter 8 Business Markets and Buying Behavior
    Chapter 8
    Business Markets and Buying Behavior

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    8:20 pm
  2. page Chapter 6 edited ... advantages professionals expedient relatively inexpensive limitations less motivated tha…
    ...
    advantages
    professionals
    expedient
    relatively inexpensive
    limitations
    less motivated than company personnel since they work outside the company
    Delphi Technique
    more complex form of expert forecasting survey
    "a procedure in which experts create initial forecasts, submit them to the company for averaging, and then refine the forecasts"
    advantages
    can be repeated several times to narrow down forecast
    highly accurate
    aim to reach a consensus between firm and experts
    limitations
    highly time consuming
    Time series analysis
    "a forecasting method that uses the firm's historical sales data to discover a pattern or patterns in the firm's sales over time"
    assumes past sales patterns will continue
    involves 4 types of analysis
    trend analysis
    focuses on aggregate sales data
    ex: company's annual sales figures, covering a period of many years to determine whether annual sales are generally rising, falling, or staying steady
    cycle analysis
    analyzes sales figures (usually monthly sales data) from ~3-5 yrs to ascertain if sales fluctuate in a consistent, periodic manner
    seasonal analysis
    studies daily/weekly/monthly sales figures to evaluate the degree to which seasonal factors (climate/holiday activities) influence sales
    random factor analysis
    attempts to attribute erratic sales variations to random, non-recurrent events
    ex: regional power failure, natural disasters, political unrest in foreign market
    effective method for products with reasonably STABLE demand
    NOT to be used for products with highly ERRATIC demand
    Regressive Analysis
    "a method of predicting sales based on finding a relationship between past sales (dependent variable) and one or more independent variables such as population or income"
    requires use of historical sales data
    advantages
    useful when a precise association can be established
    limitations
    forecasters seldom find perfect correlation
    can only be used when historical sales data are EXTENSIVE
    can NOT be used for new products
    Market tests
    "making a product available to buyers in one or more test areas and measuring purchases and consumer responses to marketing efforts"
    often test areas have populations of 200,000-500,000
    can sometimes have populations of 50,000-200,000
    advantages
    provides information on ACTUAL not intended purchases
    effective for forecasting sales of new products/existing products in new areas
    gives opportunity to test marketing mix
    limitations
    time consuming/expensive
    cannot be certain actions in market test represents total market response or that the responses will continue into the future
    Using Multiple Forecasting Methods
    most firms use several methods
    may only use one method on one product, but different methods varied by product
    may also use several methods on just one product

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