Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

1. A philosophy, an attitude, perspective, management

2. is a set of activities ( products, distribution, promotion, pricing)

People giving up something to receive something they rather have.

Conditions for exchange to exist. 1. At least 2 parties 2. somthing of value 3. communication and delivery 4. freedom to accept and reject 5. desire to deal with the other party

Exchange may not take place even if conditiong are met.

An agreement mut be reached

marketing occurs even if  exchange doesn't exist

Production Orientation- internal capabilites of firm. What can we make or do best?

Sales Orientation- aggressive sales techniques and belief that high sales result in high prices. How do we sell more aggressively?

Market Orientation- satisfying needs and want, while meeting objectives. What do customers wand and need?

Societal Orientation- satisfying needs and wants while enhancing individual and societal well being. What do customers wand and need and how can we benefit society?

What is marketing orientation?

A sale doesn't depend on a aggresive sales force but rather on a customers decision to purchase a product.

- obtain info about customers, competitors, and markets

- examine info from a total business perspective

- determine how to deliver superior customers perspective

- implement actions to provide value to customers

- Focusing on customer wants and needs to distinguish products from competitors’ offerings

- Integrating all the organization’s activities to satisfy these wants

-  Achieving the organization’s long-term goals by satisfying customer wants and needs legally and responsibly

An organization exists not only to satisfy customer wants but also to preserve or enhance individuals’ and society’s long-term best interests.

ex. 

Sales oriented firms tend to be inward thinking and focus on selling what the organization makes rather than what the market wants. Defines its business on goods and services.

Market orientation defines its business as the benefits its customers seek

The two can be compared in five characteristics.

 §Organization’s focus

- Offer products that preform

- earn trust

- avoid unrealistic pricing

- give the buyer facts

- offer organization wide commitment in service and after sale support

The feeling that a product met or exceeded the customer’s expectations.

customer oriented personel

employee training programs

empowered employees

team work

-Enusure a customer focus

-Encouages inovation and creativity

-stimulates an warness of changes in customers prefrences

A writeen document that acts as a guidebook of marketing activities for the marketing manager.

You wirte  marketing pland becuase it provides a basis for comparison of actual and expected preformance, provides clearly stated sctivities to work toward, serves as a refrence, provides an examinination or the marketing enviroment, allows entry into the marketplace with awarness.

Answers the question " What business are we in"

Focuses on the market rather than the good or service

Strategic business units (SBU'S) may also have a mission statement

A distinct mission and specific target market.

Control over its resources

Its own competitors

Plans independent of other SBU's

realistic

measurable

time specific

consistent with and indicate the organizations priorities

1. communicate marketing management philoshphy

2. provide management direction

3. motivate employees

4. Force executives to think clearly

5. Allow for better evaluation of results

The collection and interpretation of info about forces, events, and relationships in the external envrioment that may affect the future of the organization of the implementation of the marketing plan

1. Cost

2. Product/ service differentiation

3. niche strategies

being the low-cost competitor in an industry while maintaining satisfactory profit margins.

Ex: obtain inexpensive raw materials, create efficient plant operations, design products for ease of manufacture, control OH cost, avoid marginal customers.

Brand names

storn dealer network

product reliability

image

serivce

The advantage achieved when a firm seeks to target and effectively serve a small segemnt of the market

ex. fly fishing

Used by small companies with limited resources, used in limited geographic market, product line may be focused on a specific product category

1. segment the mrket based on groups with similar charcteristics

2.Analyze hte maket base on attractiveness of market segments

3. select one or more target markets

4.appeal to the entire market with one marketing mix

Price

Promotion

Place

product

Ethics- are the moral principles or valus that generally goern the conduct of an individaul

Morals- are the rules people develop as a result of cultural values and norms.

Preconventional- more childlike, based on what will be punished and rewarded

Conventional- expectations of society

Postconventional- More mature- concern about how they judge themselves over the long run

A guideline to help marketing mangers and other employees make better decisions

Helps identify acceptable business practice, helps control behavior internally, avoid confussion, facilitaes discussion about right and wrong

products purchased

prices paid for products

effectiveness off promotions

how, where, and when people purchase

self sufficiency

upward mobility

work ethic

conformity

age 8-14

pop. 29 millinos

purchasing power of 39 billion

Emerging as the richest generation and most influential

Born btw 1979 and 1994

pop. 60 million

200 billion purchasing power

word of mouth marketing in effective

impatient, family oriented, inquisitive, opinionated, diverse, time managers, street smart

Born btw 1965 and 1978

pop. 40 milllion

savvy and cynical consumer

entering money making year

born btw 1946 and 1964

pop. 77 million

1 trillion in spending power

income will continue to gron as the keep working

Distribution of consumer debt

inflation

recession

expands econmic freedom

spurs competition

raising productivity and living standards

offers access to foriegn capital

acts as a check on government power

promotes higher labor and enviromental standards

milions have lost jobs

millions fear loosing jobs

outsourcing

1.Operate in one country, sell in another

2. set up foreign subsidiaries to handle sales

3. operate an entire line of business in another country

4. virtual business

A tariff is a tax on imports

A quota is a limit on the amount of goods entering a country

population density

urban or rural

personal income

Age

international dependencies

shifts of wealth

inflation and recession

export opportunities if resources are abundant

stimulus for military intervention

Exporting, licensing, contract manufacturing, JV, Direct investment

Exporting is selling domestic goods to another country

Buyer for export - assumes all ownership n risk and sells globally for its own account

Export broker- brings buyer and seller together

Export Agent- acts as a manufacturing agent in foreign market , lives in foreign market

Private-label manufacturing by a foreign country

need recognition

information search

evaluation of alternatives

purchase

post purchase behavior

inner tension that a consumer experiences after recognizing an inconsistency btw behavior and values or opinions. Can be reduced, by seeking info that reinforces decision, avoiding info that contradicts purchase, and revoking the desicion by returning the product

refrence groups

opinion leaders

family members

Process by which people select, organize, and interpret stimuli into a meaningful and coherent picture.

Experiential- An experience changes behavior

Conceptual- Not learned through direct experience

A belief is an organized pattern of knowledge that an individaul holds true to hir or her world

An attitude is a learned tendency to respond consistently toward a given object

a measure of a webites effectiveness

stickiness= frequency*duration*site reach

Phenomenon in which a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product.