PRINCIPLES OF MKTG FALL 2011
Define marketing and identify the diverse factors influencing marketing activities.
Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to
customers and for managing customer relationships in ways that benefit the organization and its stakeholders. This
definition relates to two primary goals of marketing: (
) discovering the needs of prospective customers and (
satisfying them. Achieving these two goals also involves the four marketing mix factors (price, product,
promotion,place) largely controlled by the organization and the five environmental forces that are generally outside its
Describe two kinds of organizations and the three levels of strategy in them.
An organization is a legal entity of people who share a common mission. There are two kinds.
One is a business firm
that is a privately owned organization that serves its customers to earn a profit so that it can survive. The other is a
nonprofit, nongovernmental organization that serves its customers but does not have profit as a goal. Most large
business firms and nonprofit organizations are divided into three levels of strategy:
) the corporate level, where top
management directs overall strategy for the entire organization; (
) the strategic business unit level, where managers
set a more specific strategic direction for their businesses to set value-creating opportunities; and (
) the functional
level, where groups of specialists actually create value for the organization.
Describe how core values, mission, organizational culture, business, and goals are important to organizations.
Organizations exist to accomplish something for someone. To give organizations direction and focus, they
continuously assess their core values, mission, organizational culture, business, and goals. Today's organizations
specify their foundation, set a direction, and formulate strategies—"why," "what," and "how" factors, respectively
values are the organization's fundamental, passionate, and enduring principles that guide its conduct over time—what
Enron forgot when it lost sight of its responsibilities to its stakeholders.
The organization's mission is a statement of its
function in society, often identifying its customers, markets, products, and technologies.
Organizational culture is a set
of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization.
To answer the question, "What business are we in?" an organization defines its "business"—the clear, broad,