1. As a family income increases, the percentage of income spent on food decreases.

2. as a familys income increases, the percentage of income spent on housing, household operations, and clothing remains constant.

3. as a familys income increases the percentage of income spent on other items increases.

1) Define the problem

2) Plan research design

3) Select data collection method

4) Design the sample

5) collect the data

6) analyze and interpret the data

7) prepare the report

§  a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate.

o   a statement of the firm’s business based on a careful analysis of benefits sought by present and potential customers and analysis of existing and anticipated environmental conditions.

·        SWOT analysis

o   S – internal strengths

o   W – weaknesses

o   O – opportunities

o   T – threats

o   collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan.

·        set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition.

o   costs decline at a predictable rate, as experience with a product increases.

·        unique blend of product, place (distribution), promotion, and pricing strategies (four ps) designed to produce mutually satisfying exchanges with a target market.

·        process that turns a marketing plan into action assignments and ensures that these assignments and ensures that assignments are executed in a way that accomplishes the plan’s objectives.

o   – a group of people or organization for which an organization designs, implements, and maintains, a marketing mix intended to meet the need of that group, resulting in mutually satisfying exchanges.

§  Us. Values

·        Self-suffciency

·        Upward mobility – success can be granted by anyone

·        Work ethic – hard work, dedication to family, and frugality were moral and right.

·        Conformity – no one should expect to be treated differently from anyone else.

·        Too effectively market to teens

o   Make the product modern and convenient

o   Engage through promotion that gets them involved. Ex. Interactive contests. Voting challenges.

§  Generation y – people born between 1979 and 1994. Millennial generation

·        Prefer spending time with their babies rather than go out.

·        Feel their opinions are needed and welcomed.

·        Diverse

·        Good time managers

·        Quick shoppers – buy from general stores like walmart.

·        Want to make a difference

·        Multitaksers – like to be in the know.

·        Brand besotted – love to be involved with their favorite brands.

§  Baby boomers – people born between 1946 and 1964

·        Go on vacation a lot, postpone retirement. 80% of personal wealth in the U.S.

§  – federal agency established to protect the health and safety of consmers in and around their homes

§  federal agency charged with enforcing regulations against selling and distributing adulterated, misbranded or hazardous food and drug policies.

§  – federal agency empowered to prevent persons of corporations from using unfair methods of competition in commerce.

o   recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors it all markets.

o   company that heavily engaged in international trade, beyond exporting and importing.

§  a limit on the amount of a specific product that can enter a country.

§  law compelling a company earning foeign exchange from it exports to sell it toa control agency.

§  – when several countries work together to form a common trade area.

o   an intermediary who plays the traditional broker’s role by bringing buyers and seller together.

o   an intermediary who acts like a manufacturers agent for the exporter; the export agent lives in the foreign market.

o   the legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge.

o   The use of the internet to facilitate the exchange of goods, services, and information between organizations.

o   a measure of a websites effectiveness; calculated by multiplying the frequency of visits by the duration of a visit by the number of pages viewed during each visit.

o   a detailed numbering system developed by the united states, Canada, and mexico to classify north American business establishments by their main production processes.

§  Gives each sector a code, and subsector, then industry group, then industry, then industry subdivision. 

o   Segmentation is important because

§  Helps marketers define customer needs and wants.

§  All markets include people with different needs and wants.

§  Helps decision makers to more accurately define marketing objectives and better allocate resources.