MKTG 351 CSUF SPRING 2023| 171 QUESTIONS AND ANSWERS

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​ Primary Focus of Marketing satisfying customers' needs and wants. Customer wants, backed by buying power, creates demand. Two Facets​ of Marketing (1). It is a philosophy, an attitude, a perspective, or a management orientation that stresses customer satisfaction​. (2). It is an organization function and a set of processes used to implement this philosophy​ Exchange people giving up something in order to receive something else they would rather have​ 5 Conditions for an Exchange 1. At least two parties must be involved​ 2. Something of value must be present​ 3. Parties are capable of communication and delivery​ 4. Each party is free to accept or reject the offer​ 5.Desire to deal with the other party exists​ Marketing Management Philosophies​ Five competing philosophies strongly influence an organization's marketing processes​ What are the 5 Marketing Management Philosophies​? -Production orientation​ -Product orientation​ -Sales orientation​ -Market orientation​ -Societal marketing orientation​ Production orientation a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace. Focuses on the highest quality goods, but that may not be what the customer may want​ Sales Orientation​ the belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits​ Market Orientation the idea that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives​. Assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product​​ Societal marketing orientation the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve of enhance individuals' long-term best interests​ Customer value the relationship between benefits and the sacrifice necessary to obtain those benefits Customer satisfaction customers' evaluation of a good or service in terms of whether that good or service has met their needs and expectations​ Relationship marketing a strategy that focuses on keeping and improving relationships with current customers​ Empowerment delegation of authority to solve customers' problems quickly—usually by the first person the customer notifies regarding a problem​ Teamwork collaborative efforts of people to accomplish common objectives​ Customer relationship management (CRM) a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups​ On-demand marketing delivering relevant experiences, integrated across both physical and virtual environments, throughout the consumer's decision and buying process​ Why study marketing? Marketing affects you every day.​ How?​ Marketing plays an important role in society.​ Marketing is important to businesses​. Marketing offers outstanding career opportunities.​ Marketing plays a major role in everyday life​. Strategic planning is the managerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities​ Strategic Business Units (SBUs) a subgroup of a single business or collection of related businesses within the larger organization​ A company, or an SBU, can use several tools to manage the strategic direction of its portfolio of businesses​ What are they?​ -Ansoff's strategic opportunity matrix​ -Boston Consulting Group model​ -General Electric model​ Market penetration a marketing strategy that tries to increase market share among existing customers​ Market development a marketing strategy that entails attracting new customers to existing products​ Product development a marketing strategy that entails the creation of new products for present markets​ Diversification a strategy of increasing sales by introducing new products into new markets​ Portfolio matrix a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate​ relative market share the ratio between the company's share and the share of the largest competitor​ Stars a business unit that is a fast-growing market leader​ Cash cows a business unit that generates more cash than it needs to maintain its market share​ Problem children also called a question mark, is a business unit that shows rapid growth but poor profit margins​ Dogs a business unit that has low growth potential and a small market share​ Four basic strategies a company uses to determine how to allocate resources to each SBU ​ Build, Hold, Harvest, Divest Build make further investments, possibly giving up short-term profits to achieve this goal. Hold maintain status quo. Harvest use cash flow from a star or cash cow to maximize profits. Divest sell or withdraw. Planning the process of anticipating future events and determining strategies to achieve organizational objectives in the future​ Marketing planning designing activities relating to marketing objectives and the changing marketing environment​ Marketing plan a written document that acts as a guidebook of marketing activities for the marketing manager​ Mission statement a statement of the firm's business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions​ SWOT analysis identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T)​ Business/Marketing objective a statement of what is to be accomplished through marketing activities​ Marketing strategy the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets​ Marketing mix (four Ps) a unique blend of product, place (distribution), promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market​ Implementation the process that turns a marketing plan into action assignments and ensures these assignments are executed in a way that accomplishes the plan's objectives​ Evaluation gauging the extent to which the marketing objectives have been achieved during the specified time period​ Control provides the mechanisms for evaluating marketing results in light of the plan's objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines​ Marketing audit a thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization​ Social control any means used to maintain behavioral norms and regulate conflict​ Behavioral norms standards of proper or acceptable behavior​ Deontological theory ethical theory that states that people should adhere to their obligations and duties when analyzing an ethical dilemma​ Utilitarian ethical theory ethical theory that is founded on the ability to predict the consequences of an action​ Casuist ethical theory ethical theory that compares a current ethical dilemma with examples of similar ethical dilemmas and their outcomes​ Moral relativism an ethical theory in time-and-place ethics; that is, the belief that ethical truths depend on the individuals and groups holding them​