Marketing Basics: Exchange, Markets and Mix

the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large
seeks to discover needs and wants of customers and satisfy them

the trade of things of value between a buyer and a seller so that each is better off after the trade

people with both the desire and the ability to buy a specific offering

one or more specific groups of potential consumers toward which an organization directs its marketing program

consists of 4 ps that can be used to solve a marketing problem

4Ps

environmental forces

the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price

a cluster of benefits that an organization promises customers to satisfy their needs

links the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit

a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers

the relatively homogeneous groups of prospective buyers that result from the market segmentation process

occurs when an organization focuses its efforts on (1) continuously collecting information about customers' needs, (2) sharing this information across departments, and (3) using it to create customer value.

the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace

the internal response that customers have to all aspects of an organization and its offering

the view that organizations should satisfy the needs of consumers in a way that provides for society's well-being

a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value

the people who use the products and services purchased for a household

manufacturers, wholesalers, retailers, and government agencies that buy products and services for their own use or for resale

the benefits or customer value received by users of the product

the reward for the risk a for-profit company undertakes in marketing its offerings

an organization's long-term course of action designed to deliver a unique customer experience while achieving its goals

the fundamental, passionate, and enduring principles of an organization that guide its conduct over time

a statement of the organization's function in society that often identifies its customers, markets, products, and technologies

the set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization

the clear, broad, underlying industry or market sector of an organization's offering

a road map for the marketing actions of an organization for a specified future time period, such as one year or five years

a road map for the entire organization for a specified future period of time, such as one year or five years

the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself

the visual computer display of the essential information related to achieving a marketing objective

a measure of the quantitative value or trend of a marketing action or result

a technique that managers use to quantify performance measures and growth targets of their firms' strategic business units

a technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products

an approach whereby an organization allocates its marketing mix resources to reach its target markets

taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization's marketing plans and the external forces and trends affecting it

Involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action.

those characteristics of a product that make it superior to competitive substitutes

the means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it

detailed day-to-day operational marketing actions for each element of the marketing mix that contribute to the overall success of marketing strategies

the process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends

the demographic characteristics of the population and its culture

describing a population according to selected characteristics such as age, gender, ethnicity, income, and occupation

Consists of combinations of the marketing mix that reflects the unique attitudes, ancestry, communication preferences, and lifestyles of different races

consists of the set of values, ideas, and attitudes that are learned and shared among the members of a group

the concern for obtaining the best quality, features, and performance of a product or service for a given price

pertains to the income, expenditures, and resources that affect the cost of running a business and household

the total amount of money made in one year by a person, household, or family unit

the money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation

the money that remains after paying for taxes and necessities

inventions or innovations from applied science or engineering research

an information and communication based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digitized offerings

the activities that use electronic communication in the inventory, promotion, distribution, purchase, and exchange of products and services

alternative firms that could provide a product to satisfy a specific market's needs

business practices or conditions that make it difficult for new firms to enter the market

restrictions that state and federal laws place on business with regard to the conduct of its activities

a grassroots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions

an alternative to government control, whereby an industry attempts to police itself

the moral principles and values that govern the actions and decisions of an individual or group

society's values which are enforceable in court

let the buyer beware

a law that codified the ethics of exchange between buyers and sellers, including the rights to safety, to be informed, to choose, and to be heard

the clandestine collection of trade secrets or proprietary information about a company's competitors

employees who report unethical or illegal actions of their employers

a personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome

a personal moral philosophy that focuses on "the greatest good for the greatest number" by assessing the costs and benefits of the consequences of ethical behavior

the idea that organizations are part of a larger society and are accountable to that society for their actions

recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth

marketing efforts to produce, promote, and reclaim environmentally sensitive products

occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products

a systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility

conducting business in a way that protects the natural environment while making economic progress

the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions

1. problem recognition
2. information search
3. alternative evaluation
4. purchase decision
5. post purchase behavior

factors that represent both the objective attributes of a brand and the subjective ones a consumer uses to compare different products and brands

the group of brands a consumer would consider acceptable from among all the brands in the product class of which he or she is aware

the feeling of post purchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives.

the personal, social, and economic significance of the purchase to the consumer

(aspects of purchase situation that impact purchase decision process) purchase task, social surroundings, physical surroundings, temporal effects, antecedent states

the energizing force that stimulates behavior to satisfy a need

a person's consistent behaviors or responses to recurring situations

the way people see themselves and the way they believe others see them

the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world

seeing or hearing messages without being aware of them

the anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences

behaviors that result from repeated experience and reasoning

a favorable attitude toward and consistent purchase of a single brand over time

a learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way

a consumer's subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people

a mode of living that is identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them

individuals who exert direct or indirect social influence over others

the influencing of people during conversations

people to whom an individual looks as a basis for self-appraisal or as a source of personal standards

the process by which people acquire the skills, knowledge, and attitudes necessary to function as consumers

the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors

the relatively permanent, homogeneous divisions in a society into which people sharing similar values, interests, and behavior can be grouped

subgroups within the larger, or national, culture with unique values, ideas, and attitudes

the marketing of goods and services to companies, governments, and not-for-profit organizations for use in the creation of goods and services that they can produce and market to others

the demand for industrial products and services is driven by demand for consumer products and services

the objective attributes of the supplier's products and services and the capabilities of the supplier itself

the deliberate effort by organizational buyers to build relationships that shape suppliers' products, services, and capabilities to fit a buyer's needs and those of its customers

an industrial buying practice in which two organizations agree to purchase each other's products and services

a relationship that exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the ultimate consumer

the group of people in an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision

consist of three types of organizational buying situations: straight rebuy, new buy, and modified rebuy.

online trading communities that bring together buyers and supplier organizations to make possible the real time exchange of information, money, products, and services

in an e-marketplace, is an online auction in which a seller puts an item up for sale and would-be buyers are invited to bid in competition with each other.

in an e-marketplace, is an online auction in which a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other.

the practice of using barter rather than money for making global sales

the monetary value of all products and services produced in a country during one year

the difference between the monetary value of a nation's exports and imports

shielding one or more industries within a country's economy from foreign competition through the use of tariffs or quotas

government taxes on products or services entering a country that primarily serve to raise prices on imports

a restriction placed on the amount of a product allowed to enter or leave a country

a permanent institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions

exists when firms originate, produce, and market their products and services worldwide

agreements among two or more independent firms to cooperate for the purpose of achieving common goals such as a competitive advantage or customer value creation

involves multinational firms that have as many different product variations, brand names, and advertising programs as countries in which they do business.

involves transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.

a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs

consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services

the study of similarities and differences among consumers in two or more nations or societies

a society's personally or socially preferable modes of conduct or states of existence that tend to persist over time

what is considered normal and expected about the way people do things in a specific country

a global market-entry strategy in which a company produces products in one country and sells them in another country

A global market-entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership, control, and profits of the new company.

a global market-entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary or division

occurs when a firm sells a product in a foreign country below its domestic price or below its actual cost

a situation where products are sold through unauthorized channels of distribution. Also called parallel importing.