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MKTG 2030 Study Guide - Midterm Guide: Consumerism, E-Commerce, Belongingness


Department
Marketing
Course Code
MKTG 2030
Professor
Linda Reeser
Study Guide
Midterm

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CHAPTER 1: WHAT IS MARKETING?
Marketing as a Business Function and a Business Philosophy
o Business function: marketing's goal is to provide the business with a long-term competitive
advantage in the marketplace by understanding the needs of/creating value for customers
o Marketplace: Any location or medium used to conduct on exchange
o Marketing Concept: Focuses on achieving organizational objectives by understanding customer
needs, the associated costs of satisfying them, and thinking about ways to satisfy those needs
o Marketing: The process of planning and executing the conception, pricing, promotion, ad
distribution of ideas, goods, and services to create exchanges that satisfy individual and
organizational objectives
Marketing Satisfies Needs
o Consumer: Ultimate user of a good or service. Can be an individual or an organization
o Needs: Recognition/Difference between a consumer's actual state and some ideal or desired state
o Want: The desire to satisfy needs in specific ways that are culturally and socially influenced
o Benefit: The outcome sought by a customer that motivates buying behaviour
o Social Marketing Concept: Emphasizes customer needs must be satisfied in ways that benefit
society
Marketing Is an Exchange of Value
o Exchange: Transfer of value occurs between a buyer and seller (Giving money for food)
o Both parties must be satisfied with the exchange - this happens because value is perceived -
different people have different ideas
o The marketer must create, price, distribute, and communicate an attractive value proposition to
the customer
o Product: A tangible good, service, or idea, or combination that, through the exchange process,
satisfies consumer or business customer needs
Marketing's Tools: The Marketing Mix
o Customer Value: What the customer gets in the purchase, use, and ownership of a product
relative to the costs and sacrifices incurred
o Marketing Mix: A combination of the product itself, the price of the product, the place where it is
made available, and the activities that introduce it to consumers, which creates a desired
response among a set of predefined consumers
o Above Value and Mix is created by : Product, Price, Promotion, and Place
Product: Good, service, idea, place, person (What is being offered for exchange)
Price: Seller's assessment of value to a product
Place: Availability of the product at the desired time/location. Channels of distribution
Promotion: The coordination of communication efforts by a marketer to influence
consumers or organizations about goods, services, or ideas
o Market: All of the (potential) customers who share a common need that can be satisfied by a
specific product, who have the resources to exchange for it, who are willing to make the
exchange, and who have the authority to make the exchange

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How are Marketing Decisions Made?
o Marketing Planning: Achieve objectives by creating superior customer value, for exchange with
customers in one or more target market segments, with a sustainable strategy
o Finding and Reaching a Target Market Segment:
Market Segment: A distinct group of customers within a larger market, who are similar to
one another in some way and whose needs differ from other customers in the larger market
Target Market: The market segment(s) on which an organization focuses its marketing plan
and toward which it directs its marketing efforts
Mass Market: All possible customers in a market, regardless of the differences in their
specific needs and wants
o Segmenting the market, selecting a target market nationally and globally, developing and
positioning the offering
Market Position: The way in which the target market perceives the offering in comparison
to competitors' brands.
o Marketing as a Process: Final Thoughts
Relationship Marketing: A marketing philosophy that focuses on building long term
relationships with customers, suppliers, and distributors, etc to satisfy mutual needs
Stakeholders: Individuals/organizations who affect/are affected by the activities of a firm
When did Marketing Begin? The Evolution of a Concept
o The Product Orientation: Management philosophy that emphasizes the most efficient ways to
produce and distribute products
o The Selling Orientation: A managerial view of marketing as a selling function, or a way to move
products out of warehouses to reduce inventory
o The Costumer Orientation: A management philosophy that focuses on being proactive and
responsive in identifying and satisfying consumer needs and wants
o The New Era Orientation: Management philosophy in which marketing decision making means a
devotion to excellence in designing and producing products that benefit the customer plus the
firm's employees, shareholders, and fellow citizens
Marketing's Role in Society: Ethical Behaviour
o Social and Ethical Criticisms of Marketing:
Marketers create artificial needs
Marketing teaches us to value people for what they own rather than who they are: We learn
that to be happy/popular, we need to buy products
Marketers promise miracles: Marketing leads to consumers believing that products have
magical properties
Careers in Marketing
o Marketing Management
o Marketing Research
o Marketing Consulting
o Product and Brand Management
o Sales
o Advertising

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CHAPTER TWO: Planning Well:
- Business planning occurs on an annual basis at three levels:
1. Strategic Planning:
A managerial decision process that matches an organizations resources and capabilities to its
market opportunities for long-term growth and survival
Difference between strategic and marketing planning:
1. Time Horizon
2. Marketing plan contains details regarding the marketing mix elements (product strategy,
pricing strategy, channel of distribution strategy, marketing communication strategy), while
strategic plan does not contain this detail
Four Key Stages in Top Level Strategic Planning:
Defining the Organization's Business Mission:
Mission Statement: A formal statement in an organizations strategic plan that
describes the overall purpose of the organization and what it intends to achieve in
terms of its customers, products, and resources
Evaluating the Environment: SWOT Analysis
Strengths and weaknesses in the organization's internal environment, and
opportunities and threats from outside the organization
External Opportunities (OT): The uncontrollable elements outside of a organization
that may affect its performance either positive or negatively. (e.g.: Demographics)
Internal Opportunities (SW): The controllable elements inside an organization,
including its people, facilities, and how it does things that influences the operations of
the organization
Setting Organizational Objectives
Planning for Growth: The Business Portfolio:
Large firms who find risk in relying on one product become Strategic Business Units
Strategic Business Units: Individual units within the firm that operate like separate
businesses with each having its own mission statement, business objectives, resources,
managers, and competitors
Business Portfolio: The group of different products or brands owned by an
organization and characterized by different income-generating and growth capabilities
2. The Marketing Planning Process
A document that describes the marketing environment, outlines the marketing objectives and
strategy, and identifies who will be responsible for carrying out each part of the marketing strategy
Creating a Competitive Advantage: The ability of a firm to outperform the competition, providing
customers with a benefit the competition cannot
Marketing Planning to Functional Planning:
o Marketing plan sets a common foundation for the development of functional plans such as
sales, HR, and production
Setting the Budget and Business Objectives:
o Top Management sets a yearly budget based on marketing and functional plans and sets
objective the business hopes to achieve
Strategic Marketing Mix Decisions in International Markets:
o Standardization vs. Localization: Focusing on different cultures and how products should
adapt to that
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