ECON 344 Textbook Summary [Full Course] File contains concise, easy-to-read summaries of assigned textbook readings. Readings arranged chronologically by when they were assigned for ease of use; organized by chapter for increased readability.
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Chapter 1Marketing A set of business practices designed to plan for and present an organizations products or services in ways that build effective customer relationships Marketing Plan A written document composed of an analysis of the current marketing situation opportunities and threats for the firm marketing objectives and strategy specified in terms of the four Ps action programs and projected or pro forma income and other financial statements Need A person feeling physiologically deprived of basic necessities such as food clothing shelter and safety Want The particular way in which a person chooses to satisfy a need which is shaped by a persons knowledge culture and personality Market Refers to the groups of people to whom an organization is interested in marketing its products services or ideas Target Market The customer segment or group to whom the firm is interested in selling its products and services potential customers who have both an interest in the product or service and the ability to buy Exchange The trade of things of value between the buyer and the seller so that each is better off as a result Marketing Mix Four Ps Product price place and promotionthe controllable set of activities that a firm uses to respond to the wants of its target market Goods Items that can be physically touched Service Intangible customer benefits that are produced by people or machines and cannot be separated from the producer Ideas Includes thoughts opinions philosophies and intellectual concepts Price The overall sacrifice a consumer is willing to makemoney time energyto acquire a specific product or service B2C Businesstoconsumers The process in which businesses sell to consumers B2B Businesstobusiness The process of selling merchandise or services from one business to another C2C Consumertoconsumer The process in which consumers sell to other consumers Value Reflects the relationship of benefits to costs or what the consumer gets for what he or she gives The Evolution of Marketing tho ProductionOriented Era Occurred around the turn of the 20 century popular belief was that a good product would sell itself o SalesOriented Era Between 1920 and 1950 the Great Depression and WWII conditioned people to consume less Thus firms turned to marketing as a selling function where companies try to sell as such as possible o MarketOriented Era After WWII the customer became king partly due to new suburban communities and shopping centers o ValueBased Marketing Era To compete successfully firms would have to give their consumers greater value than their competitors ValueBased Marketing Marketing that focuses on providing customers with benefits that far exceed the cost money time effort of acquiring and using a product or service while providing a reasonable return to the firm In todays quickly changing world consistently creating and delivering value is quite difficult Firms become value driven by focusing on these activities o Sharing Information Sharing information about customers and competitor which has been collected through customer relationship management o Balancing Benefits with Cost o Building Relationships with CustomersTransactional Orientation Regards the buyerseller relationship as a series of individual transactions so anything that happened before or after the transaction is of little importance eg Used car salesRelational Orientation A method of building a relationship with customers based on the philosophy that buyers and sellers should develop a longterm relationshipCustomer Relationship Management CRM A business philosophy and set of strategies programs and systems that focus on identifying and building loyalty among the firms most valued customers Supply Chain The group of firms that make and deliver a given set of goods and services Why is Marketing Important o Marketing Expands Firms Global Presence o Marketing is Pervasive Across the Organization o Marketing is Pervasive Across the Supply Chain o Marketing Makes Life Easier and Provides Career Opportunities o Marketing Enriches Society o Marketing can be Entrepreneurial Chapter 2Strategic Marketing Planning Process A set of steps a marketer goes through to develop a strategic marketing plan Planning Phase Where marketing executives and other top managers 1 define the mission or vision of the business 2 evaluate the situation by assessing how various players both in and outside the organization affect the firms potential for success and 3 identify and evaluate different opportunities by engaging in segmentation targeting positioning and develop the marketing mix 4Ps Implementation Phase The fourth step of the planning phase Where marketing managers implement the marketing mix allocate resources and develop the marketing organization Control Phase The part of the strategic marketing planning process when managers evaluate the performance of the marketing and take any necessary corrective actions The three major phases of the strategic planning process are o Planning o Implementation o Control Steps to developing a marketing plan o Define the Business MissionMission Statement A broad description of a firms objectives and the scope of activities it plans to undertake attempts to answer two main questions What type of business is it What does it need to do to accomplish its goals and objectivesSustainable Competitive Advantage Something the firm can persistently do better than its competitors o Conduct a Situation Analysis Using SWOTSituation Analysis Second step in a marketing plan uses of a SWOT analysis that assesses both the internal environment with regard to its Strengths and