What are the controllable variables the company puts together to satisfy this target market wants and needs referred as?

1.      Marketing is more than selling and advertising and has a crucial role in customer satisfaction.

2.      Prior to productions and selling we should: analyze needs, predict wants, estimate demand, predict when, determine where, estimate price, decide promotion, estimate competition, and provide service.

3.      Production is the physical making of goods.

4.      Marketing provides needed direction for production and helps make sure that the right goods and services are produced and find their way to consumers.

5.      Marketing is important to us, to every consumer, to our job, and affect economic growth and standard of living.

6.      Micro- Marketing is a set of activities performed by organizations.

7.      Macro- Marketing is a social process that matches supply with demand.

8.      Key characteristics of Micro-Marketing are;  is more than persuasion, begins with needs, doesn’t go it alone, involves exchanges, builds relationships, focuses on this text, and it applies to both profit and non-profit organizations.

9.      Key characteristics of Macro-Marketing are; emphasis on the whole system, every economy needs it, and matches producers and consumers.

10.  The universal functions of marketing are; buying, selling, transporting, storing, standardization & grading, financing, risk taking, and market information.

11.  Marketing functions are performed by; retailers, wholesalers, transport firms, Ad agencies, research firms, product testing firms, ISP-s, consumers.

12.  Intermediaries or middleman are those that specialize in trade rather than production ( play role in the exchange process example: wholesalers and retailers).

13.  Facilitators are firms that provide one or more of the marketing functions other than buying or selling (they help smooth the exchanges between producers, consumers or middleman example. advertising agencies, marketing research firms, product testing labs).

14.  Planned economic system is when government planners decide what and how much is to be produced and distributed by whom, when, to whom, and why. This system can work well if simple economy and adverse conditions.

15.  Market directed system adjusts itself, price is a measure of value, there’s freedom of choice and the government role is limited.

16.  Five stages of marketing evolution are; 1. The simple trade era (sell surplus), 2. The production era (increase supply), 3. The sales era (beat the competition), 4. The marketing department era (coordinate and control), 5. The marketing company era (long run customer satisfaction).

17.  Marketing concept is total company effort, customer satisfaction and profit.

18.  Costumer value is the difference between the benefits the costumer sees from the market offering and the costs of obtaining those benefits.

19.  Micro-Macro dilemma is what is “good” for some firms and consumers may not be good for the society as a whole.

20.  Social responsibility is a firms obligation to improve its positive effects on society and reduce its negative effects ( ex. Tuna Fish- Dolphins)

21.  Marketing Ethics is the moral standard that guides marketing decisions and actions.

Chapter 2

22.  Marketing manager plans, implements and controls the marketing plans and programs.

23.  A marketing strategy specifies a target market and a related marketing mix. It is a big picture on what a firm will do in some market. Two interrelated parts are needed: a target market and a marketing mix.

24.  Target market is a fairly similar group of consumers to whom a company whishes to appeal (different than mass marketing.

25.  Marketing mix are the controllable variables the company puts together to satisfy this target market.

26.  Mass marketing is the typical production oriented approach that vaguely aims at everyone with the same targeting mix, mass marketers can do target marketing; target marketing can mean big markets and profits.

27.  The four P’s make up the marketing mix. Product, Place, Promotion, and Price.

28.  Product area is concerned with developing the right “product” for the target market. This offering may evolve a physical good, a service or a blend of both. Your goods or service should satisfy some costumer needs.

29.   Place is concerned with all the decisions involved in getting the “right” product to the target market’s Place. The product isn’t much good to costumer if it isn’t available when and where it’s wanted.

30.  The product reaches costumers through a channel of distribution. A channel of distribution is any series of firms or individuals that participate in the flow of products from producer to final user or consumer.

31.  Promotion is telling and selling to the Costumer.

32.  Promotion is concerned with telling the target market or others in the channel of distribution about the “right” product. Sometimes promotion is focused on acquiring new costumers, and sometimes is focused on retaining current costumers. Promotion includes personal selling, mass selling, and sales promotion.

33.  Personal selling is direct spoken communication between sellers and potential customers. Personal selling usually happens face –to –face, but sometimes the communication occurs over the telephone or the internet.

34.  Mass selling is communicating with large numbers of costumers at the same time. The main form of mass selling is advertising and publicity.  Mass selling involves media, newspapers, billboards, and internet.

35.  Sales promotion refers to those promotion activities other than advertising, publicity, and personal selling. Example:  coupons, product samples, signs, catalogs, novelties, circulars.

36.  Price setting must consider the kind of competition in the target market and the cost of the whole marketing mix, also must estimate on how much the costumer is willing to pay.

37.  Examples of Channels of Distribution: 1. AOL- consumer, 2. Nissan –retailer-consumer, 3. Del Monte-Wholesaler- Retailer- Consumer, 4. Procter & Gamble-Wholesaler-Wholesaler- Retailer-Consumer.

38.  The Product Elements of the Marketing Mix are: branding, packing, warranties, product lines, benefits, features, quality level, instructions, etc.

39.  The Promotion elements of the marketing mix are: Advertising, personal selling, publicity, sales promotion.

40.  The Price elements of the marketing mix are: pricing objectives, price flexibility, price changes over the life cycle, Discounts and Allowances, Geographic pricing terms, legal environment, cost and demand, price sensitivity, competition and substitutes, and price of other products in the line.

41.  The Place elements of the marketing mix are: objectives, channel type, kinds of middleman, the way of transporting and storing, market exposure, service levels.

42.  Marketing program is the entire marketing plan.   Marketing plan is a written statement of a marketing strategy and the time-related details for carrying out the strategy.

43.  Target market + Marketing mix=Marketing Strategy + Time related details =Marketing Plan+ Other marketing plans=A Firms’ marketing program.

44.  Attractive Opportunities are:  breakthrough opportunities and competitive advantage.

45.  Breakthrough opportunity is when we come up with a service or a product that is unique in many ways or it doesn’t yet exist in the market.

46.  Competitive advantage is when we stand out with a product or a service with a better quality, lower cost, a strong sales force, well known brand name, better costumer relationship.

47.   Differentiation means when our company offers better product or service other than competitors, can be higher quality product, better price.

48.  Positioning is how we want costumers to see our product or against the competitors.

49.  S.W.O.T analysis highlights advantages and disadvantages. It means the firms strengths, weaknesses, opportunities, and threats.

50.  Types of opportunities to pursue are; market penetration, market development, product development, and diversification.

51.  Market penetration means trying to increase sales of a firm’s present products through more aggressive marketing mix.

52.  Market Development means trying to increase sales by selling present products in new markets.

53.  Product Development means offering new or improved products for present markets.

54.  Diversification means moving into totally different lines of business, perhaps entirely unfamiliar products, markets, or even levels in the production marketing system.

Chapter 3

55.  Product market’s four part description is: 1. Product type (goods or services), 2. Costumer needs 3. Costumer types, 4. Geographic area.

56.  Product type describes the goods and or services that costumers want.

57.  Costumer needs refer to the needs the product type satisfies for the costumer.

58.  Costumer type refers to the final consumer or user of a product type.

59.  The geographic area is where a firm competes, or plans to compete.

60.  A generic market is a market with broadly similar needs and sellers offering various ways of satisfying those needs.

61.  A product market is market with very similar needs and sellers offering various close substitute ways of satisfying those needs.

62.   Market segmentation is a two step process: 1. Naming broad product-markets, 2. segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes.

63.  Disaggregating tries to narrow down the marketing focus to product-market areas where the firm is more likely to have a competitive advantage or even to find breakthrough opportunities.

64.  Segmenting is an aggregating process, clustering people with similar needs into a “market segment”.

65.  Market Segment is a relatively homogeneous group of costumers who will respond to a marketing mix in a similar way.

66.  Criteria’s for segmenting broad product markets are: homogenous, heterogeneous, substantial, and operational.

67.  Three basic ways to develop market-oriented strategies in a broad product-market are:1. The single target market approach, 2. The multiple target market approach, 3. The combined target market approach

68.  Single target market approach can aim at one submarket with one marketing mix.

69.  Multiple target market approach can aim at two or more submarkets with different marketing mixes.

70.  Combined target market approach can aim at two or more submarkets with the same marketing mix.

71.  Combiners try to satisfy pretty well, too much combining is risky.

72.  Segmenters try to satisfy very well, segmenting may produce bigger sales.

73.  Two dimensions are used to segment markets: qualifying dimensions or determining dimensions.

74.  Qualifying dimensions are relevant to including a costumer type in a product market and help identify core features. Example a costumer has to have money, license, or a personal need.

75.  Determining dimensions affect the costumer’s purchase of a product or brand and can be further segmented. Determining dimensions can be example in car manufacturing: safety, color, speed, fuel efficiency, appearance.

76.  Other dimensions used to segment markets can be: Behavioral, Geographic, Demographic,

77.  A seven step approach to market segmentation: 1. Name broad product market, 2. List costumer needs, 3. Form homogeneous submarkets, 4. Identify the determining dimensions, 5.name the possible product markets, 6. Evaluate  product-market segments  7. Estimate size of product-market segments.

78.  Sophisticated Techniques help in segmenting such as: clustering, costumer database, CRM.

79.  Differentiating the marketing mix to do a better job meeting costumer’s needs, the firm builds a competitive advantage.

80.  Positioning refers to how costumers think about a proposed or present brand in a market.

 Chapter 4

81.  The marketing environment is made up by: 1. the direct market environment (costumers, the company, and competitors, 2. The external market environment has 4 areas (economic environment, technological environment, political and legal environment, cultural and social environment).

82.  Mission statement set’s out the organization’s basic purpose for being.

83.  Company’s barrier to entry can be: lack of finances, money for R& D, production facilities, marketing research or advertising.

84.  Marketing strengths can be: a familiar brand, good relations with established middleman.

85.  There are 4 kinds of market competitive situations: Monopoly, Monopolistic competition, Oligopoly, Pure competition.

86.  Monopoly is when one company serves the entire customer base. Competitor free environments are rare.

87.  Monopolistic competition is a number of different firms offer marketing mixes that at least some costumers are different. Monopolistic competition is typical and a challenge.

88.  Oligopoly is a small number of firms control the market. Barriers to competitive entry are high.

89.  Pure competition a large number of firms compete with essentially similar products. Price is typically the determining factor in making a purchase.

90.  Competitive Rivals is firms that will be the closest competitors. (, hair gel, spray, foam)

91.   Competitive barriers are the conditions that may make it difficult or even impossible for a firm to compete in a market.

92.  Key economic forces are global economy, rapid change and interest rates.

93.  The economic and technological environment affects the way firms and the whole economy use resources.

94.  Economic environment affects such things as national income, economic growth, inflation and may vary from country to country.

95.  Technological environment affects marketing in two basic ways; 1. With new products, 2. With new processes ( the ways of doing things) example ( eBay, via internet purchasing,

96.  Characteristics of Political environment are; Regional economic groupings (EU, NAFTA), Nationalism, Consumerism.  

97.  Consumerism is a social movement that seeks to increase the rights and powers of consumers.

98.  Legal Environment sets the basic rules for how a business can operate in society  and they try to encourage competition, antimonopoly law affects the 4P’s, must tell the truth, FDA controls the products, safety is controlled, . let the seller beware instead of let the buyer beware .

99.  The cultural and social environment affects how and why people live and behave the way they do, which affects costumer buying behavior and eventually the economic, political and legal environment.

100.                      A strategic business unit ( SBU) is an organizational unit that focuses on some product-markets and is treated as a separate  profit center ( example Sony, games, music electronics)

101.                      Portfolio management treats alternative products, divisions, or strategic business units as though they were stock investments to be bought and sold using financial criteria, milked or sold off depending on profitability and ROI.

Chapter 5

1.      Demographic Dimensions provide marketing managers with critical information about the size, location, and characteristics of target markets, marketing managers must also alert to demographic trends (could be very early warning sign of new opportunities or need to adjust existing strategies.

2.      GDP (Gross Domestic Product) is the total market value of all goods and services provided in a country’s economy in a year by both residents and nonresidents of the country.

3.      GNI (Gross national Income) is similar to GDP, but GNI does not include income earned by foreigners who own resources in that nation. By contrast the GDP does include foreign income.

(Ex Ford in Thailand: GDP in Thailand would include profits from factory, whereas, GNI measure for Thailand would not include those profits.

4.      Disposable Income is what you get to spend (income minus taxes).

5.      Discretionary Income is elusive. Most people spend a good portion of their income on such “necessities” as food, rent, or house payments, car and home furnishing payments and insurance. People’s purchase of “luxuries” comes from discretionary income, what is left of disposable income after paying for necessities.

6.      Empty nesters are people whose children are grown up and who are now able to spend their money in other ways (approx…50-64 years old), attractive market for many items: travel, sports cars, and other things they couldn’t afford before.

7.      Senior Citizens are people over 65 years old. This is a big market that is increasing rapidly because of modern medicine, improved sanitary conditions and better nutrition , which is over 12% of population. Older people have very different needs: housing & “life care” centers, diet supplements, tours and cruises, medicine, etc.