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Discovering the needs of customers is one of the primary goals in marketing. It is difficult to exactly discover customer needs because sometimes theirs needs are hard to describe, thus clearly catching the key point from their fuzzy needs or advertising the new technology to shape customers’ mind that lead them to buy new Items. For example, the Apple store unstoppably showed their convenient technology on their new phone that results everyone defined phone is the smartest phone in the world and it is worth to buy one. Another primary goal is satisfying customer needs.
Obviously, the organization satisfies all customer needs is impossible, so the organization has to focus on a specific group of customers that is called target market. It Is Like not everyone can afford George Airman and It Is fitted to a small group of success people. 3. Distinguish between marketing mix factors and environmental forces. Marketing mix factors including product, price, promotion, and place are controlled by the organization department, compare with environmental forces, environmental forces are more likely uncontrollable.
It Is exceeding the organization’s ability. These Include social, economic, technological, competitive, and regulatory forces. 4. Explain how organizations build strong customer relationships and customer value through marketing. Usually, best price, best product, or best service is the best way to establish a powerful relationship with customers. Customer value is the unique combination of benefits received by the customers who had enjoyed the best price, the best product, or the best service.
For example, Best buy is one of the best markets that have a completed system with after-sale service. Customers are allowed to return their items with no reasons within 30 days. 5. Describe how today’s customer relationship era defer from prior eras. RA, the marketing concept era, and the current customer relationship era. The production era impacted the early years of America until asses. The varieties of goods were limited choosing by customers.
The sales era was from asses to asses, the organization was able to produce more goods than customers could buy, and so more salesmen were hired by the company to find new buyers. The marketing concept began at the late asses because the motivating force among many American firms when firms had to accept the market orientation and put the big factor marketing into their business. The current customer relationship era is continuously to fit the marketing and become more aggressive. Chapter 2 1 . Describe two kinds of organizations and three levels of strategy in them.
There are two kinds of organizations; one of them is called a business firm that means the organization has to get a profit from its customers to survive. Another one is a nonprofit organization that their goals are not to make profit from customers and it has to have enough funds to keep operating. Three levels of strategy: the corporate level is the top management level who determines the direction of all treated. The strategic business unit level is to set more specific strategy. The functional level is under each strategic business unit.
In the functional level, strategic direction becomes its most specific and focused. 2. Describe how core values, mission, organizational culture, business, and goals are important to organization. Core values lead an organization’s management and directly determine a firm’s heart, soul, and spirit. It is set by the firm’s owner or management. The mission is like a business card that shows people what kind of Job they are doing. The organizational culture is like an spirit of the company that every member should learn and share.
Goals or objectives are made by strategic directions that are expected to be achieved. They can be a long-term or a short-term performance targets. 3. Explain why managers use marketing dashboards and marketing metrics. The dashboard often can be seen on a car to display the fuel level. Managers had to analyze the data or make a decision when they saw the fuel level was showed low on the dashboard. The dashboard is easy and clear to discover which level the project is in. Each display in a marketing dashboard shows marketing metric.
From the metric, managers are able to see the trend to their goals; also, they can quickly recognize the deviations from the plan and take corrective actions. The first thing that an organization wants to realize where it is now is to identify its competences to make sure that its special capabilities still provide a competitive advantage. Secondly, to make sure their central goal goes through the customers and satisfying their experience. The last thing is to analyze its current and potential competitors from a long-term perspective.
There is an analysis called business portfolio analysis which is established by the Boston consulting group is a technique that managers use to quantify performance measures and growth targets to analyze their firms’ strategic business units. 5. Explain the three steps of the planning phase of the strategic marketing process. (a) A situation analysis, which involve taking stock of where the firm or product has been recently, where it is now, and where it is headed.
This assessment focuses on the organization’s internal factors and the external forces and trends affecting it. B) A market-product focus through market segmentation and goal setting, which in part requires creating points of difference. (c) A marketing program that specifies the budget and activities for each marketing mix element. 6. Describe the element of the implementation and evaluation phases of strategic marketing process. The implementation phase of the strategic marketing process carries out the marketing plan that emerges from the planning phase.
It has four key elements: 1) Obtaining resources; 2) Designing the marketing organization to perform product management, marketing research, sales, and advertising and promotion activities; 3) Developing schedules to identify the tasks that need to be done, the time that is allocated to each one, the people responsible for each task, and the deadlines for each tasks accomplishment; 4) Executing the marketing strategies, which are the means by which marketing goals are to be achieved day-to-day operational decisions essential to the overall success of a firm’s marketing strategies.
These are the marketing problem actions a firm takes to achieve the goals set forth in its marketing Lana. The evaluation phase of the strategic marketing process seeks to keep the marketing program moving in the direction that was established in the marketing plan. This requires the marketing manager to compare the results from the marketing program with the marketing plan’s goals to identify deviations or “planning gaps” and take corrective actions to exploit positive deviations or correct negative ones.
Chapter 3 1 . Explain the purpose of environmental scanning. Marketing environment is variety that the organization has to follow the trend and environmental scanning. To catch up the trend by the environmental scanning is the best way to make the most profits. 2. Describe social forces such as demographics and culture Demographic is like doing a survey that asking people their ages, gender, ethnicity, income, and occupations. Culture is a large number of people they have the similar value, ideas, and attitudes.
All these factors can influence customer buying items, so matching different groups of people by doing demographic or learning their culture is easy to make the profit maximum. 3. Discuss how economic forces affect marketing. Economic is a part of environmental scanning, which relates to the income, expenditures, and resources that deeply impact the cost of running a company. Customer income can be divided into gross income, disposable income, and discretionary income. Seeking a right consumer who is able to afford the item is also important. 4. Describe how technological changes can affect marketing.
Society has changed upside down in 5 years. Each new wave of technological innovation can replace existing products and firms. There is an examples, the first one is Monika, Simian used to be the most powerful mobile phone system. After phone system came out, Simian and Monika lost their advantage and immediately lost in the smart phone area. The same situation can be seen in Microsoft. 5. Discuss the forms of competition that exist in a market. There are four basic forms of competition exist, pure competition, monopolistic competition, oligopoly, and pure monopoly.
Pure competition means similar products have little impacts from other elements. Monopolistic competition is using the price advantage to conquer competitors. Oligopoly is a few companies occupied a large market, such as wireless companies AT&T, Verizon, and Sprint. Pure monopoly means there is only one firm sells the product. 6. Explain how regulatory forces ensure competition and protect producers and consumers. Regulation exists to protect companies and consumers. Legislation that ensures a competitive marketplace includes the Sherman Antitrust Act.
Product-related legislation includes copyright and trademark laws that protect companies and packaging and labeling laws that protect consumers. Pricing- and distribution-related laws are designed to create a competitive marketplace with fair prices and practices and provides enforcement through the Federal Trade Commission. Self- regulation through organizations such as the Better Business Bureau provides an alternative to federal and state regulation. 7. Identify factors that influence ethical and unethical marketing decisions.
There are four factors that affect ethical marketing behavior. Societal culture and norms serve as socializing forces that dictate what is morally right and Just. Business culture and industry practices affect ethical conduct both in the exchange relationships between buyers and sellers and the competitive behavior among sellers. Corporate culture and expectations are often defined by corporate ethics odes and the ethical behavior of top management and co-workers. An individual’s personal moral philosophy, such as moral idealism or utilitarianism, will dictate ethical choices.
Ultimately, ethical behavior rests with the individual, but the consequences affect many. 8. Describe the different concepts of social responsibility. The conception of social responsibility relates to the definition of “marketing” that it has to benefit its customers, the organization, its stakeholders, and society at large. There are three concepts of social responsibility. The first one is profit responsibility which means firms have the responsibility to maximum profit for their owners and stakeholders. Secondly, stakeholder responsibility means stakeholders have obligations to handle the company.
The last one is called societal responsibility, the organization established on this earth that means it has obligations to protect the earth, also the general public. Chapter 4 1 . Describe the stages in the consumer purchase decision process. There are five stages in the consumer purchase decision process. They are problem recognition, information search, alternative evaluation, purchase decision, and post arches behavior. Problem recognition is to perceive a need. For example, it is hot outside and someone becomes aware of a need of drink. Information search is to seek value.
The one who needs drink will search for information about where to buy and what to drink. Alternative evaluation is to assess value. First is to suggest criteria to use for purchasing. Then yield brand names that might meet the criteria. Last is to develop consumer value perceptions. Purchase decision is to make a decision to buy a product. Post purchase behavior. Is a customer comparing the goods to his expectations. He will be satisfied or dissatisfied. Routine, limited, and extended problem solving. Consumers don’t always engage in the five-stage purchase decision process.
Instead, they skip or minimize one or more stages depending on the level of involvement??the personal, social, and economic significance of the purchase. Routine problem solving is often related to low-involvement purchase occasions. They recognize a problem, make a decision, and spend little effort seeking external information and evaluating alternatives. As to limited problem solving, consumers ill seek information and rely on a friend to help them evaluate alternatives. Extended problem solving emerges in high-involvement purchase situations.
Each of the five stages of the consumer purchase decision process is used including considerable time and effort on external information search and in identifying and evaluating alternatives. 3. Identify major psychological influences on consumer behavior. Psychology is quite related to marketing because it helps marketers understand why and how consumers behave as they do. There are many psychological concepts such s motivation and personality; perception; learning; values, beliefs, and attitudes; and lifestyle are useful for interpreting buying processes and directing marketing efforts. ) Motivation is the energize force that stimulates behavior to satisfy a need. 2) Personality refers to a person’s consistent behaviors or responses to recurring situations. 3) Perception is the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world. Consumers filter information through selective exposure, comprehension, and retention. 4) Much nonuser behavior is learned. Learning refers to those behaviors that result from repeated experience and reasoning. ) Values, beliefs, and attitudes are also learned and influence how consumers evaluate products, services, and brands. A more general concept is lifestyle. 6) Lifestyle, also called chirography’s, combines psychology and demographics and focuses on how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them. 4. Identify the major coloratura influences on consumer behavior. Coloratura influences can influence consumer behavior as well. It evolves from a consumer’s formal and informal relationships with other people.
These involve personal influence, reference groups, the family, social class, culture and subculture. Behavior are two major sources of personal influence on consumer behavior. 2) Reference groups are people to whom an individual looks as a basis for self-approval or as a source of personal standards. 3) Family influences on consumer behavior result from three sources: consumer colonization, passage through the family life yes, and decision making within the family or household. 4) A more subtle influence on consumer behavior than direct contact with others is the social class to which people belong.
Persons within social classes tend to exhibit common values, attitudes, beliefs, lifestyles, and buying behaviors. 5) A person’s culture and subculture have been shown to influence product preferences and buying patterns. Chapter 5 1 . Distinguish among industrial, reseller, and government organizational markets. The industrial firms in some way reprocess a product or service they buy before ailing it again to the next buyer. Wholesalers and retailers that buy physical products and resell them again without any processing are resellers.
Government units are the federal, state, and local agencies that buy goods and services for the constituents they serve. 2. Describe the key characteristics of organizational buying that make it different from consumer buying. Seven major characteristics of organizational buying make it different from consumer buying. These include demand characteristics, size of the order or purchase, number of potential buyers, buying objectives, buying criteria, rye-seller relationships and supply partnerships, and multiple buying influences within organizations.
The organizational buying process itself is more formalized, more individuals are involved, supplier capability is more important, and the post purchase evaluation behavior often includes performance of the supplier and the item purchased. 3. Explain how buying centers and buying situations influence organizational purchasing. Buying centers and buying situations have an important influence on organizational purchasing. A buying center consists of a group of individuals who share common oils, risks, and knowledge important to a purchase decision. A buyer or purchasing manager is almost always a member of a buying center.
However, other individuals may affect organizational purchasing due to their unique roles in a purchase decision. Five specific roles that a person may play in a buying center include users, influencer, buyers, deciders, and gatekeepers. There are 3 buy classes, new buy, straight rebury and modified rebury. 1) New buy takes a very long time to make the decision and the most admitted supplier are selected. 2) Straight rebury is more or less like, you had a long time good purchasing experience with one specific supplier, they are so trusted, so every time you pay them to get what you want, and it takes the least time and least people involved. ) The modified rebury is like your trusted supplier is not reliable anymore, sometimes they provide product with flaws but sometimes very good, so you will have to supervise some time to make sure you get the good product, even you may buy from other suppliers sometimes. 4. Recognize the importance and nature of online buying in organizational markets. Organizations dwarf consumers in terms of online transactions made and purchase illume. Online buying in organizational markets is popular for three reasons. ) First, internet can provide fast information. Organizational buyers depend on timely supplier information that describes product availability, technical specifications, application uses, price, and delivery schedules. This information can be conveyed quickly via Internet technology. 2) Second, this technology substantially reduces buyer order processing costs. 3) Third, business marketers have found that Internet technology can reduce marketing costs, particularly sales and advertising expense, ND broaden their customer base.