• when something is obtained for something else in return...transfer of something of value for something of value between buyer and seller.
• Exchange brings people together

1. Help us survive better
2. Higher Standards of living
3. forms needed relationships

• forum for exchange
• they exist if there are people who want to buy & people who want to sell (or trade)
• supply and demand

1. Decision making autonomy
2. voluntary
3. buyer and seller dont have to agree to deal
4. buyer and seller are not same party
5. each party is responsible for own resources
6. each party is free to make decisions about personal preferences
7. Constrained only by extent of their resources & by rules of market

1. Geography
2. Product Characteristics
3. Time

• If the market has rules, then there must be competition
• Perfect Competition, Monopolistic Competition, Oligopoly, and Monopoly

1. similar products....perceived identical
2. buyers and sellers know market price
3. many small firms with ease of entry and exit
4. supply and demand set prices accepted by market place

• price that can be charged is the same as price that maximum number of customers are willing to pay

• many small sellers
• sellers attempt to differentiate product in order to have some control over price
• easy market entry and exit

• few sellers
• large in size
• difficult to enter market
• one firm's actions can directly impact performance of others (form interdependencies)

• single seller dominates trade
• few close substitutes fo product offerings
• Sherman anti trust act & Clayton act

• ultimate user of goods and services
• consumer behavior involves dynamic interaction of cognition, behavior and environmental events

• Consumer goods: stuff we buy for personal use
• Industrial goods: stuff companies buy for the company's use

• L'eggs
• President of Hanes Hosiery Division

• Satisfaction gained from buying, owning, and/or consuming a good, service, or idea
• goal of consumer is maximize utility

• Form
• Place (physical convenience)
• Time (time saved)
• Possession (ownership)

• What a consumer is willing to give up in order to own something.
• varies from person to person
• exchange value= use value + sign value

-what problem does it solve?

-what does a product denote?

-what does a product connote?

ex. cars

-Political/ Legal

-Technological

-Sociocultural

-Economic

-Natural

-Competitive

-nylon

-spandex

-new weave (Italy)

• Management orientation that focuses on identifying and satisfying consumer needs to ensure organizational long term profits. (consumer orientation)
• Selling orientation (door to door salesman)
• Product orientation (create and interesting product and hope it sells)

Strengths, Weaknesses, Opportunities, and Threats

Internal: Strengths and Weaknesses

External: Opportunities and Threats

• Existing Market and Existing Products: Market Penetration
• Existing Market and New Product: Product Development
• New Market and Existing Product: Market Development
• New Market and New Product: Diversification

• Division or product line of business that has distinct mission and objectives and operates somewhat independently from the rest of the company

1. Single business or collection of related businesses that can be managed seperately
2. Its own set of competitors
3. Its own manager responsible for SBU's planning and performance

• Stars: dominant market share, high growth
• Cash Cows: dominant market share, low growth
• Question Marks: low share, high growth
• Dogs: low share, low growth

• L'eggs SBU Manager
• Used Market Research
• SWOT Analysis

• Process of collecting, analyzing, and interpreting data about customers, competition, and cultural environment to improve marketing effectiveness
• Goal is to provide management with accurate information

Primary Data: collected specifically to handle the issue at hand

Secondary Data: data alreasy collected to help answer problem but not collected yourself

Qualitative Data: very broad, exploritorive research, just trying to gather information, usually verbal

Quantitative Data: statistics and numbers

• Historical Analysis (secondary data, qualitative data)
• Trade Research (secondary data, quantitative data)
• Survey Research (primary data, quantitative data)
• Focus Group (primary data, qualitative data)

• process of dividing larger market into smaller parts based on meaningful, shared characteristics. (Buying characteristics and similar needs)
• examples: price, age, geography etc.

1. Segmentation
2. Targeting
3. Positioning: placing product in consumer's mind relative to competition with intention of developing competitive advantage. (Marketing Mix and Perceptual Mapping)

• Product
• Price
• Place
• Promotion

• what something means or how it is interpreted
• Semiotics is the study of signs and signification systems applies to any "sign"

the result of association of "signifier" with "signified"

Signifier: the "open" on the door of a store

Signified: store is open for business

• Intensive- making product available through as many channels as possible
• Selective- more discriminating use of channel members
• Exclusive- single channel member has exclusive rights to sell product

• Convenience goods (intensive)
• Shopping goods (Selective)
• Specialty goods (exclusive)

• Price-perceived quality relationship is typically a positive correlation
• Price-skimming: price high to overcome negativity of strategy
• Penetration Strategy: starting off with a low price

• Push strategy: manufacturer provides the retailer with incentives to carry product and "push" it through channel

• Pull strategy: manufacturer provides consumers with incentives to buy product. Consumers demand product from retailer and "pull" it through channel.

Atlanta Pharmacist

-created Coca Cola Formula

-President of Coke for 60 years

-marketing & foreign market expansion

1. Concomidant Variation (Empirical Relationship). Evidence that X & Y occur together in a predicted way (positive or negative correlation).
2. Temporal Sequence (cause must be before effect)
3. Elimination of Alternative Explanations

Cause: independent variable

Effect: dependent variable

• sound or well-found argument
• Internal Validity - measuring what we are supposed to measure
• External Validity- generalizablility

• advertising
• sales promotion (coupons)
• publicity (free type of promotion)
• personal selling

• Survey- asking questions (unstructured vs structured). Pros: cognitive info. Cons: Demand Artifact
• Ethnography-observing participant in study. Offers minimal demand artifact and realistic context

• chairman of the board at Coca Cola- 1981
• chemical engineer
• risk taker

1. Historical
2. Organizational
3. Biological