Marketing and the Marketing Concept Marketing Core Functions Section 1.1

Marketing and the Marketing Concept marketing The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. The Scope of Marketing Section 1.1 Marketing professionals track trends and consumer attitudes to understand buying decisions.

Marketing and the Marketing Concept The Scope of Marketing Section 1.1 IdeasGoodsServices goods Tangible items that have monetary value and satisfy one’s needs and wants. services Intangible items that have monetary value and satisfy your needs and wants.

The Importance of Marketing Section 1.2 Economic Benefits of Marketing utility An added value in economic terms; an attribute of goods or services that makes them capable of satisfying consumers’ wants and needs. Form Utility Place Utility Time Utility Possession Utility Information Utility Changing raw materials into usable goods or putting parts together to make them more useful Having a product where customers can buy it Having a product or service available at a certain time of year or a convenient time of day The exchange of a product for money Communication with consumer

Fundamentals of Marketing Market and Market Identification Section 1.3 The goal of market segmentation is to identify target markets. market segmentation The process of classifying people who form a given market into even smaller groups. target market The group of people most likely to become customers, identified for a specific marketing program.

Fundamentals of Marketing Market and Market Identification Section 1.3 Information in Customer Profile

Fundamentals of Marketing Marketing Mix Section 1.3 Four Ps of the Marketing Mix Product Price Place Promotion marketing mix The four basic marketing strategies called the four P’s: product, place, price, and promotion.

Political Issues Government affects business operations Economic Issues Socio-Cultural Factors Technology Recession Unemployment Currency Rates Import Pricing Trade Restrictions Changes in attitudes, lifestyles, and opinions provide opportunities and threats Companies must embrace technology and innovate to stay competitive Section 2.1 PEST Analysis Marketing Planning

Elements of a Marketing Plan Executive Summary Situation Analysis Objectives Marketing Strategies Implementation Evaluation and Control executive summary A brief overview of the entire marketing plan. situation analysis The study of the internal and external factors that affect marketing strategies marketing strategies Strategy that identifies target markets and sets marketing mix choices that focus on those markets Section 2.1 Writing a Marketing Plan Marketing Planning

Section 2.1 Writing a Marketing Plan Implementation Schedule of activities Job assignments Sales forecasts Budgets Details of each activity Who is responsible for each activity sales forecasts The projection of probable, future sales in units or dollars.

Marketing Planning Section 2.1 Writing a Marketing Plan performance standard An expectation for performance that reflects the plan’s objectives. Performance standards help assess Marketing Objectives Financial Objectives Marketing Mix Strategies

Market Segmentation Section 2.2 Types of Segmentation DemographicGeographicPsychographicBehavioral Age Gender Income Marital status Ethnic background Local State Regional National Global Attitudes Opinions Interests Activities Personality Values Shopping Patterns Decision- making process demographic Statistics that describe a population in terms of personal characteristics such as age, gender, income, marital status, and ethnic background. psychographic Grouping people with similar attitudes, interests, and opinions, as well as lifestyles and shared values.

Market Segmentation Section 2.2 Types of Segmentation Income Disposable Income Discretionary Income disposable Income Money left after taking out taxes. discretionary income Money left after paying for basic living necessities such as food, shelter, and clothing.

Market Segmentation Mass Marketing Vs. Segmentation Section 2.2 Mass Marketing AdvantagesDisadvantage mass marketing Using a single marketing strategy to reach all customers. Economics of scale Simplified marketing plan Competitors can identify unmet needs and wants and then steal customers

Market Segmentation Mass Marketing Vs. Segmentation Section 2.2 Niche Marketing AdvantagesDisadvantage Extremely precise Increased chance for success Cost –Research –Production –Packaging –Advertising

What Is an Economy? Differences and Similarities Among Market and Command Economies Section 3.1

What Is an Economy? What Creates an Economy? Section 3.1 infrastructure The physical development of a country,such as roads, ports, and utilities. LandLaborCapital Entrepreneurship Provides raw materials Full- and part- time workers, managers, and professional people Money, buildings, infrastructure entrepreneurship The skills of people who are willing to invest their time and money to run a business; the process of starting and operating your own business. Organizing factors of production to create goods and services

What Is an Economy? Types of Economic Systems Section 3.1 Traditional Economy Market Economy Command Economy Mixed Economy traditional economy An economic system in which habits, traditions, and rituals answer the basic questions of what, how, and for whom. market economy An economic system in which there is no government involvement in economic decisions. command economy A system in which a country’s government makes all economic decisions regarding what, how, and for whom.

What Is an Economy? Political and Economic Philosophies Section 3.1 The Different Political and Economic Philosophies

What Is an Economy? Political and Economic Philosophies Section 3.1 PrivatizationNationalizationversus Less Government Involvement More Government Involvement

Understanding the Economy The Economy and Marketing Section 3.2 Economic Measurements Labor Productivity Gross Domestic Product (GDP) Gross National Product (GNP) Inflation Consumer Price Index (CPI) Producer Price Index (PPI) Standard of Living Unemployment Rate

Understanding the Economy The Economy and Marketing Section 3.2 How Do These Two Economic Measurements Compare?

Understanding the Economy The Business Cycle Section 3.2 The Business Cycle business cycle Recurring changes in economic activity. ExpansionRecession expansion A time when the economy is expanding. recession A period of economic slowdown that lasts for at least two quarters, or six months. TroughRecovery recovery The term that signifies a period of renewed economic growth following a recession or depression.

International Trade Nature of International Trade Section 4.1 international trade The exchange of goods and services between nations. International Trade Imports Exports imports Goods and services purchased from other countries. exports Goods and services sold to other countries.

International Trade Nature of International Trade Section 4.1 Absolute Advantage Comparative Advantage When a country has economic resources that allow it to produce a product at a lower unit cost than any other country. When a country has an absolute advantage in more than one product.

International Trade Nature of International Trade Section 4.1 The Benefits of International Trade

International Trade Government Involvement in International Trade Section 4.1 Trade Surplus Trade Deficit When a nation exports more than it imports. When a nation imports more than it exports. Balance of Trade balance of trade The difference in value between exports and imports of a nation.

International Trade Government Involvement in International Trade Section 4.1 Defining Trade Barrier Terms

International Trade Government Involvement in International Trade Section 4.1 free trade Commercial exchange between nations that is conducted on free market principles, without regulations. The opposite of free trade is protectionism. protectionism A government’s establishment of economic policies that systematically restrict imports in order to protect domestic industries.

International Trade Government Involvement in International Trade Section 4.1 Trade Agreements and Alliances World Trade Organization (WTO) North American Free Trade Agreement (NAFTA) European Union (EU) World Trade Organization (WTO) A global coalition of nations that makes the rules governing international trade. North American Free Trade Agreement (NAFTA) An international trade agreement among the United States, Canada, and Mexico. European Union (EU) Europe’s trading bloc.

The Global Marketplace Doing Business Internationally Section 4.2 Getting Involved with Global Business Importing Exporting Licensing licensing Letting another company, or licensee, use a trademark, patent, special formula, company name, or some other intellectual property for a fee or royalty.

The Global Marketplace Doing Business Internationally Section 4.2 Getting Involved with Global Business Importing Exporting Licensing contract manufacturing Hiring a foreign manufacturer to make your products according to your specifications. Contract Manufacturing

The Global Marketplace Doing Business Internationally Section 4.2 Getting Involved with Global Business Importing Exporting Licensing joint venture A business enterprise that a domestic company and a foreign company undertake together. Contract Manufacturing Joint Venture

The Global Marketplace Doing Business Internationally Section 4.2 Getting Involved with Global Business Importing Exporting Licensing foreign direct investment (FDI) The establishment of a business in a foreign country. Contract Manufacturing Joint Venture Foreign Direct Investment (FDI)

The Global Marketplace Doing Business Internationally Section 4.2 Getting Involved with Global Business Importing Exporting Licensing multinational A large corporation that has operations in several countries. Contract Manufacturing Joint Venture Foreign Direct Investment (FDI) Multinationals

The Global Marketplace Doing Business Internationally Section 4.2 Getting Involved with Global Business Importing Exporting Licensing mini-national A midsize or smaller company that has operations in foreign countries. Contract Manufacturing Joint Venture Foreign Direct Investment (FDI) Multinationals Mini-Nationals

The Global Marketplace Doing Business Internationally Section 4.2 Level of Risk and Control

The Global Marketplace Global Environmental Scan Section 4.2 globalization Selling the same product and using the same promotion methods in all countries. customization Creating specifically designed products or promotions for certain countries or regions. adaptation A company’s use of an existing product or promotion from which changes are made to better suit the characteristics of a country or region.

Marketing Information Marketing Information Systems Section 28.1 Details About Each Type of Data

Issues in Marketing Research Differences Between Quantitative Research and Qualitative Research Section 28.2

Issues in Marketing Research Section 28.2 Types of Marketing Research Two Broad Types of Research Quantitative Research Qualitative Research quantitative research Marketing research that answers questions that begin with “how many” or “how much.” qualitative research Marketing research that focuses on smaller numbers of people and tries to answer questions that begin with “why” or “how.”

Issues in Marketing Research Section 28.2 Types of Marketing Research Attitude Research Market Intelligence Media Research Product Research Mail surveys Telephone interviews Opinion polls Sales forecasting Economic forecasting Brand awareness Advertisement recall Brand image Effectiveness of advertising copy Audience size New product research includes concept testing Existing product research includes questionnaires and interviews

Marketing Research The Marketing Research Process Section 29.1 Data Sources

Marketing Research The Marketing Research Process Section 29.1 Steps of the Marketing Research Process and Details of Each

Marketing Research The Marketing Research Process Section 29.1 Obtaining Data 2 Primary data survey method A research technique in which information is gathered from people through the use of surveys and questionnaires. Secondary data sample Part of a target population that represents the entire population. The survey method uses a sample of the population. The larger the sample, the more accurate are the results.

Marketing Research The Marketing Research Process Section 29.1 Obtaining Data 2 Primary data observation method A research technique in which the actions of people are watched and recorded, either by cameras or by observers. Secondary data point-of-sale research Powerful form of research that combines natural observation with personal interviews to explain buying behavior. The observation method uses point-of-sale research.

Marketing Research The Marketing Research Process Section 29.1 Obtaining Data 2 Primary data experimental method A research technique in which a researcher observes the results of changing one or more marketing variables while keeping all the other variables constant under controlled conditions. Secondary data The experimental method is used less often than other methods.

Marketing Research The Marketing Research Process Section 29.1 Advantages and Disadvantages of Secondary Data

Marketing Research The Marketing Research Process Section 29.1 Sources of Primary Data

The Marketing Survey Section 29.2 Constructing the Questionnaire Types of Questions Forced-Choice Questions Open-Ended Questions forced-choice question A question that asks respondents to choose an answer from possibilities given on a questionnaire. open-ended question A question that requires more than a “yes” or “no” answer and requires respondents to construct their own response.

The Marketing Survey Section 29.2 Constructing the Questionnaire Provide Details About Formatting Questionnaires