Exam 1: Ch. 1,3,4,9

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  1. What is marketing?
    The process of creating, distributing, promoting, and pricing goods and services to facilitate relationships
  2. What is Utility?
    The power to satisfy a human need
  3. Form Utility?
    Assembling, preparing, or otherwise refining the product to suit individual customer needs
  4. Place Utility?
    Having products available where the customer wants to purchase them
  5. Time Utility?
    Having product available when the customer wants them
  6. Possession Utility?
    Customer has access to the product to use or to store for future use
  7. Target Market?
    group of customers on which marketing efforts are focused
  8. Marketing Concept?
    • Study the consumers to determine their needs and wants
    • Organize to integrate all activities w/in the firm toward helping the consumer fulfill these needs and wants
    • Simultaneously achieve organizational goals
  9. Consumer Orientation?
    All planning should be customer oriented
  10. Integrated Effort?
    • Marketing activity should be coordinated
    • "Left hand should know what the right is doing"
  11. Organizational Goals?
    Stress long-term profitability rather than short-term profit
  12. Evolution of Marketing? (3 Eras)
    • Production Era
    • Sales Era
    • Marketing Era
  13. Production Era
    • Until 1920
    • Lack of mass production
    • Well-built products at a reasonable price
    • Company only cares about getting product out
  14. Sales Era
    • 1930-1950
    • Takes more than a reasonably priced, quality product to be successful, it takes a good salesman
  15. Marketing Era
    • 1950
    • Find out what the consumer wants
    • Linked to new product innovation
  16. Relationship Marketing
    Long-term mutually satisfying buy-seller relationships
  17. Societal Marketing Concept
    after determining consumer needs and wants make sure that society is being enhanced while achieving organizational goals
  18. Inter-organizational Behavior
    • The process of human interaction between organizations
    • I.E. bar owner working with miller
  19. Growth of Marketing (3 types)
    • Nonprofit Marketing
    • Services Marketing
    • International Marketing
  20. Nonprofit Marketing
    • Churches, Schools, Gov't Agencies
    • Marketing their cause
  21. System? Types?
    • A set of interacting and interrelated elements
    • Closed & Open
  22. Closed System
    Not affected by outside forces
  23. Open System
    Affected by outside forces
  24. Sociocultural Environment
    • Behavior of individuals and groups of individuals
    • More old people, People moving South & West
    • World has become more casual
  25. Competitive Environment
    • Number and types of competitors
    • Many buyers, many sellers
  26. Pure Competition
    Many sellers, some control
  27. Oligopoly
    • Few sellers
    • Cars, propane, gas
  28. Monopoly
    • Only one seller
    • i.e. electricity
  29. Economic Environment
    • Prosperity
    • Recession
    • Recovery
  30. Prosperity
    • Real economic growth
    • Near full employment
  31. Rocovery
    Business output begins to go up
  32. Technological Environment
    • Distance education
    • Ethics
    • Medicine
  33. Physical Environment
    • Weather
    • How it hurts companies via storms, hurricanes, etc...
  34. Political & Legal Environment (6)
    • Sherman Anti-Trust
    • Clayton Act
    • Federal Trade Commission Act
    • Robinson Patman Act
    • Wheeler Lea Amendment
    • Magnason Moss Act
  35. Sherman Anti-Trust Act (1890)
    Prohibits combinations, contracts, or conspiracies to restrain trade or monopolize
  36. Clayton Act (1914)
    Prevented price discrimination by manufacturer and prevented tying contracts
  37. Federal Trade Commission Act (1914)
    Created federal trade commission, gave FTC power to investigate companies, prevents unfair methods of competition
  38. Robinson Patman Act (1936)
    Strengthened Clayton Act concerning price discrimination
  39. Wheeler Lea Amendment (1938)
    • Protection of consumers, not just competition, can prosecute for deceptive advertising, gave the FTC jurisdiction over false advertising of food, drugs, and cosmetics, intent to defraud does not have to be proven
    • i.e.: Campbells using marbles in their soup to make ingredients rise to top
  40. Magnason Moss Act (1975)
    • Expanded FTC's power over false or deceptive advertising
    • Rules concerning warranties
    • Class action suits on behalf of all of those who might have been injured
  41. Social Responsibility
    Is an organization's obligation to maximize favorable impacts and minimize negative impacts on society
  42. Organizational (corporate) Culture
    a set of values, beliefs, goals, and norms and rituals that members of an organization share
  43. Ethical Frameworks
    Define acceptable conduct for marketing
  44. Golden Rule
    You should act in a manner that you would expect others to act toward you
  45. Moral Idealism
    You would, regardless of the circumstances, always view certain acts or decisions as bad (unethical) and others as good (ethical).
  46. Intuitionism
    • Focus on your motives
    • If you do not intend to hurt someone the act is ethical
  47. Utilitarianism
    • You examine the expected outcome of an act
    • It is ethical if it creates more good than bad.
  48. Strategies for dealing with social responsibility (4)
    • Proactive Strategies
    • Reaction Strategies
    • Defense Strategies
    • Accommodation Strategies
  49. Proactive Strategies
    • Is a firm that assumes responsibility for its actions and responds to accusations made against it without outside pressure or threat of  gov't intervention
    • Best strategy
  50. Reaction Strategies
    • Allow the problem to go unresolved until the public learns about it
    • Worst strategy
  51. Defense Strategies
    Consists of minimizing obligations and legal trickery
  52. Accommodation Strategies
    Consist of accepting responsibility for your actions and accommodating special interest groups
  53. International Marketing?
    Is the marketing activities performed across national boundaries or marketing activities that are performed to compete beyond the domestic market
  54. Multinational Company (Enterprise)?
    • A company that has a direct investment in several counties and operates their facilities on the basis of alternatives anywhere in the world
    • i.e.: Caterpillar, Coca Cola
  55. Comparative Advantage?
    Each country should specialize in the production of products in which it is most efficient
  56. 1st 15 counties to join European Union?**
    • 1. Austria            9. Ireland
    • 2. Belgium         10. Italy
    • 3. Denmark        11. Luxumberg
    • 4. Finland          12. Portugual
    • 5. France           13. Spain
    • 6. Greece          14. Sweeden
    • 7. Germany       15. United Kingdom
    • 8. Holland
  57. NAFTA
    • North American Free Trade Agreement
    • Eliminates most trade barriers
  58. Tariffs
    taxes imposed by a nation on goods brought into that nation
  59. Single Column Schedule?**
    When the tariff is the same for a specific good regardless of place of origin
  60. Multicolumn Schedule?**
    • Discrimination among exporting nations
    • Lower rates negotiated
  61. Import Quotas
    setting a limit on the amount of a product allowed to be imported in a given year
  62. Embargo
    No good from a particular country can be imported
  63. Sanctions
    Partial embargo
  64. Expropriation
    Foreign investment taken over by a gov't, but some form of payment is made
  65. Confiscation
    When a foreign investment is taken over by a gov't w/o any payment
  66. Cultural Imperatives
    business customs and expectations must be met
  67. Cultural Adiaphoria
    Customs or behaviors you may wish to conform to
  68. Cultural Exclusives
    Customs or behaviors from which the foreigner is excluded
  69. Globalization
    Marketing standardized products everywhere
  70. Stages of Economic Development (7)
    • Agriculture Self Supporting
    • Preindustrial
    • Primary Manufacturing
    • Nondurable and Semi-durable Consumer Goods Manufacturing
    • Capital Goods and Consumer Durable Goods Manufacturing
    • Exporting Manufactured Products
    • Services Sector
  71. Agriculture Self Supporting
    Most of the people are subsistence farmers
  72. Preindustrial
    • Raw materials are extracted and exported
    • Industrial machinery and equipment are imported
    • Majority of people are subsistence farmers
    • Very small upper class
  73. Primary Manufacturing
    • Some processing of metal ores that were previously shipped out of the country in raw form
    • Set up factories to take advantage of low labor costs
  74. Nondurable and Semi-durable Consumer Goods Manufacturing
    • Small local manufacturing begins
    • Development of more labor intensive industries
    • Small manufacturers enter the middle class
  75. Capital Goods and Consumer Durable Goods Manufacturing
    • Production of capital and consumer durable goods begins
    • Full fledged industrialization has begun
    • Economy is still dependent on exporting raw materials
    • Some specialized heavy machinery and equipment still might be imported
  76. Exporting Manufactured Products
    • Exporting of manufactured goods becomes dominant
    • Generally a trade surplus
    • Very large middle clas
  77. Exporting (Level of Commitment)
    Lowest level
  78. Licensing (Level of Commitment)
    • Granting a firm in another country the right to produce or market your product for a fee
    • i.e: Disney in Japan
  79. Management Contracting
    • Typically hotel industry
    • Seller provides management skills, building owned by a more local owner
    • ie: Mariot managing a different hotel
  80. Joint Venture
    • Other countries stricter about foreign ownership
    • Pepsi into Vietnam, part owned
  81. Changing domestic-based marketing?
    • Easier to keep the same
    • Can't always be one product one promotion
    • Comparative advertising banned in certain countries
    • Different product same promotion
    • -sometimes need different product, different promotion
    • ie: Hallmark needs different cards in different countries
  82. Haiti
    • Big illiteracy, few tvs, no computer, no newspaper
    • Advertise on sound trucks
  83. China
    • Hong Kong
    •    -Became part of China and no longer British Colony on June 30, 1997
    •    -Speak Cantenese, English, and Mandarin
    • Macau
    •    -Known for gambling and textiles
    •    -Dec 26 is a holiday (Boxing Day)
Card Set:
Exam 1: Ch. 1,3,4,9
2013-01-28 18:04:36
Marketing nUtility nMarketing Concept

Chapter 1,3,4,9 Strategic Marketing, Marketing Environment, Social Responsibility and Ethics in Marketing, and Reaching Global Markets
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