1. Two or more parties with unsatisfied needs

2. A desire and ability on their part to be satisfied

3. Must have ability to carry out the need or want

4. Something to exchange, and

5. Prior to the exchange, both parties must expect to be better off as a result (net gain).

Product. 

Price.

Promotion.

Place.

the idea of an organization building relationships with their customers, employees, suppliers, and other partners for their mutual long-term benefit. 

• Lots of benefits from building customer loyalty

Production Era: Build it and they will come

Selling Era:  Force it on the marketplace

Marketing Concept: Balancing customer interests

corporate is the top management within an organization, it establishes the mission an promotes a market-oriented culture.

business level is an operating unit within an organization and requires a distinct strategy for specific markets and has a distinct manager and personnel.

functional level has departments that carry out tasks to support the strategy and tactics of the business units (finance, sales, marketing, etc)

A mission statement seeks to address core organizational questions (who are we? what do we do / do well? who are our customers? who are our competitors?)

A Market-focused, achievable, motivational, and specific mission makes for an effective one.

market share is ratio of sales rev. of a firm to the total sales revenue of all firms in the relevant industry.

Comparable sales simply refer to the percentage change in sales revenue relative to a prior period.

Look over Business (BCG) Portfolio Model

(Boston Consulting Group)

Look over diversification analysis.

(Ansoff Growth Matrix)

sit. ana. is 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 plans and the external factors and trends affecting it.

The SWOT analysis os the first three steps in the planning phase.

Strenghts, Weaknesses, Opportunities, Threats

Implementation: Obtaining resources, Supporting financial analysis, staffing the team, develop timelines, set sales budgets, sales incentives

Control: adjustments and revisions based on feedback are a vital part of executing any marketing plan.

Social - expanding use of social networks

Economic - Baby boomers turn 60 and spend retirement funds

Technological - increasing popularity of mobile tv

Competitive - dramatic increase in c-g content about competitive options

Regulatory - new regulations to respond to fear of terrorism

Demographics are descriptors of a population’s characteristics, such as age, gender, ethnicity, income, and occupation.

Baby Boomers (1946-1964) - roughly a quarter of the population. 

Generation X (1965-1976) - Identified with “latch-key” kids due to a rise in divorce and dual-income families, this cohort is self-reliant, entrepreneurial, and skeptical of government and big business.

Gross is everything you make before taxes.

Disposable is money left after taxes are out.

Discretionary is the money left after everything you need is bought.

A substitute is a product that can easily take the place of another product because they are so similar.

Switching barriers refers to brand loyalty in that how easy is it for customers to adjust their purchases from Brand A to Brand B?

With many substitues and few switching barriers, the competition is tough. Vice versa.

Switching is tough in a monopoly, so tough you can hardly do it, ever. A pure monoply would obviously have higher prices, because they can get away with it.

Patent law

Copyright law

Price Fixing

FTC Act of 1914

Self-Regulation

focuses on individuals and refers to the actions a person takes in purchasing, adopting, and using products, including the processes that precede and follow these actions.    

1. Internal vs. External Stimuli

2. Internal vs. External Search; Types of External Search

3. Evaluative Criteria, Product Attributes, Benefits.

4. Decisions that need to be made? Situational influences? Perceived risk?

5. Why important? Cognitive Dissonance? How to address dissonance?

An awareness set consists of the brands in a product category that a consumer will remember when it comes to decision time

A consideration set refers to the brands that are left after a person has eliminated certain brands that don't meet standards

A choice set refers to the last few brands that are left right before the final cut 

Self-concept concerns how a consumer sees themselves and how they feel or want other people to see them.

Ex. A person how wants to be viewed as an outdoorsy person may shop at places like Cabela's and Bass Pro Shop and wear brands like North Face and Patagonia quite frequently.

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

The concept of selective perception suggests that consumers aren’t likely to process everything they’re exposed to.

B2B is marketing to businesses, as opposed to consumers.

B2C is marketing to consumers through retailers.

Industrial firms reprocess a good or service before selling it.

Resellers are the wholesalers and retailers who purchase physical goods and resell them without any reprocessing

Govt. units are Federal, state, and local agencies that purchase goods and services for the constituents they serve.  

Organizational markets differ in many ways…

  Derived demand

Size of order or purchase

  Number of potential buyers

  Organizational buying criteria

  Buyer-seller relationships

  The “buying center"

Group of individuals who participate in the buying process and may be cross-functional.

1. New Buy

2. Straight Rebuy

3. Modified Rebuy