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Mktg 250 Exam 2
| Question | Answer |
|---|---|
| Mission Statement Definition | a general enduring statement of overall organizational purpose |
| Characteristics of Good Mission Statements | Focus on a limited number of goals, include the major policies and values of the company, define the major competitive scope of operation |
| SWOT Analysis Definition | A method of studying organizational resources and capabilities to asses the firm's strengths and weaknesses and scanning its external environment to identify opportunities and threats |
| Strengths | cost advantages, financial resources, customer loyalty, modern production facilities, patents |
| Weaknesses | Too narrow a product line, lack of management depth, high-cost operation due to high labor cost and obsolete production facilities, inadequate financing capabilities, weak market image |
| Opportunities | Add to product line, enter new markets, acquire firms with needed technology |
| Threats | Changing buyer tastes, likely entry of new competitors, adverse government policies |
| Market Share / Market Growth Matrix | A marketing planning tool that classifies a firm’s products according to industry growth rates and market shares relative to competing products |
| Star | High share, high growth; invest more into these |
| Question Mark | Low share, high growth; invest into Stars |
| Cash Cow | High share, low growth; invest money into prospective ?s and stars |
| Dog | Low share, low growth; retrench |
| Buyer Behavior | Process by which business buyers make purchase decisions |
| Cultural Factors | norms, values, shared in a society |
| Social Factors | reference group, family influence |
| Opinion Leader | brand ambassadors, celebrity and/or expertise |
| Personal Factors | age and life-cycle stage, economic situation, lifestyle |
| AIO | Activities, Interests, Opinions |
| Psychological Factors | Personality and Self-Concept, Motivation, Perception, Learning, Beliefs and Attitudes |
| Personality* | a person’s distinguishing psychological characteristics that lead to relatively consistent and lasting responses to his/her environment (ex: sociability, self-confidence) |
| Self-Concept* | person’s conception of himself or herself composed of: the real self (objective, how you really look), self-image (subjective, how you view yourself), looking-glass self (how you feel others look at you), ideal self (how you want to be) |
| Real Self | Objective, how you really look |
| Self-image | Subjective. how you view yourself |
| Looking-glass self | how you feel others look at you |
| Ideal self | how you want to be |
| Motivation* | the inner state that directs a person toward the goal of satisfying a felt need (promotions and coupons) |
| Need | a lack of something useful; an imbalance between a desired state and an actual state |
| Maslow’s Need Hierarchy | Physiological Needs Basics, food, water, shelter), Safety Needs (Freedom from harm, financial security), Belongingness Needs (Friendship, group memberships), Esteem Needs (Status, esteem, prestige), Self-Actualization Needs (Self-fulfillment) |
| Perception* | Meaning that an individual creates by interpreting a stimulus (EX: Taste-test, smell) |
| Learning* | Immediate or expected change in behavior as a result of experience (ensure each marketing experience is positive) |
| Reinforcement | Rewarding certain behaviors can result in greater incidence of future behaviors (and vice versa) |
| Positive Reinforcement | Behavior → Add Positive → Behavior (EX: Points program, airline credit cards) |
| Negative Reinforcement | Behavior → Take Away Something Negative → Behavior (EX: no sales tax on EV) |
| Punishment | Behavior → Punish It → Behavior Less Likely (EX: higher prices on cigarettes, speeding ticket, toll roads to promote public transportation) |
| Involvement* | Self-relevance of a product or service |
| Low Involvement Situations | EX: randomly buying gum, Coke & Pepsi, maintain quality and avoid stockouts |
| High Involvement Situations | (EX: carefully selecting iPhone), Informational ads / comparative ads, Use more personal selling |
| Market Segmentation | Division of the total market into smaller, relatively homogeneous groups |
| Common Segmentation Bases: | Geographic, Demographic, Psychographic. Product-Related |
| Geographic | Dividing an overall market into homogeneous groups on the basis of population locations |
| Geographic Segmentation Ex | North Face emphasizes rain jackets in rainy areas, winter coats in northern areas |
| Demographic | Dividing consumer groups according to characteristics |
| Psychographic | Dividing a population into homogeneous groups on the basis of psychological and lifestyle profiles |
| AIO Statements | Statements in a psychographic survey; choices reflect respondents’ activities, interests, and opinions |
| Product-Related | Dividing a consumer population into homogeneous groups based on characteristics of their relationships to a product |
| Segmenting by the benefits that people see when they buy a product | Miller Lite low calorie for females, heavy-drinking men became biggest customers |
| Segmenting by usage rates for a product and brand loyalty | Airlines frequent flyer programs for points/badge categories and perks, points programs with credit cards |
| VALS | Commercially available system for psychographic segmentation of consumers |
| The VALS system classifies consumers based upon two primary criteria | Primary Motivation and Resources and Innovation |
| Positioning | The place the product occupies in consumers’ minds, relative to competing products, what it stands for |
| Importance of Positioning | Create an idea that resonates with consumers, people looking for that idea pick your brand |
| Positioning Map | Graphic illustration that shows differences in consumers’ perceptions of competing products |
| Repositioning | Marketing strategy to change the position of a product in consumers minds relative to the positions of competing products |
| Goods-Service Continuum* | device that helps marketers to visualize the differences and similarities between goods and services |
| Importance of Services | Services typically represent a large percentage of jobs in industrialized countries (e.g., 80% in the U.S.) |
| Product Life Cycle* | The four basic stages through which a successful product progresses |
| Product Life Cycle (4 stages) | introduction, growth, maturity, and decline |
| Overlapping Life Cycles | EX: Apple launching new items consistently (incremental revenues) |
| Extending the Product Life Cycle (ways) | Increasing the Frequency of Use, Increasing the Number of Users, Finding New Uses, Changing Package Sizes, Labels, or Product Features |
| Product Line | A series of related products |
| Product Mix | A company’s assortment of product lines and individual offerings |
| Line Extension | Introduction of a new product that is closely related to other products in the firm’s existing line |
| Brand Extension | Take original brand and put same name on new product |
| Cannibalization | A loss of sales of a current product due to competition from a new product in the same line |
| Market Penetration | Old Product, Old Market |
| Market Development | Old Product, New Market |
| Product Development | New Product, Old Market |
| Product Diversification | New Product, New Market |
| Brand | A name, term, sign, symbol, design, or some combination that identifies the products of a firm |
| Trademark | A brand to which the owner legally claims exclusive access |
| Generic Product | An item characterized by a plain label, with no advertising and no brand name (Avocados from Mexico) |
| Manufacturer’s Brand | A brand name owned by a manufacturer or other producer (Coca-Cola) |
| Private Brand | A brand name placed on products marketed by wholesalers and retailers (Great Value by Walmart) |
| Family Brand* | A brand name that identifies several related products (Mercedes-Benz) |
| Individual Brand * | A unique brand name that identifies a specific offering within a firm’s product line |
| Brand Image* | The mix of impressions a customer possesses for a brand |
| Brand Equity* | The added value that a certain brand name gives to a product [consumers] |
| Brand Value* | Refers to a present value estimate of how much a brand is expected to earn in the near future, usually the next 5 years (Rev5yr-Cost5yr) [experts] |
| Brand Equity Uses: (4) | Differentiation, Esteem, Relevance to a Certain Domain, Knowledge |
| Brand Extensions* | Application of a popular brand name to a new product in another category (Oreo Cookie + Bryar's Ice Crea) |
| Brand Licensing* | The practice of allowing other companies to use a brand name in exchange for a payment (Nike swoosh --> Sales rev) |
| Why most product launches fail | Cannot support fast growth, Falls short of claims, New item exists in limbo, Product requires substantial consumer ed, Product is revolutionary but has no market |
| Burberry | One product location, Capitalize on historical core, emotional connection (Ethos) reinforced by training leadership |
| Bombas | Social mission, good quality |
| Taco Bell | Scarcity with limited edition items, low price, trendy |
| T or F: Consumer behavior focuses on how consumers think, feel, and behave when it comes to consuming | True |
| T or F: Brand equity is measured via consumer surveys | True |
| T or F: an attitude comprises of a behavior performed by an individual | False |
| T or F: Many concepts in consumer behavior are borrowed from psychology | True |
| T or F: According to Maslow's theory, all people are trying to satisfy all 5 types of needs all the time | False |
| T or F: Self-concept theory has useful applications in the beauty care and fitness center industries | True |
| T or F: In marketing, segmentation and positioning refer to the same general idea | False |
| T or F: Product development is the idea of creating a NEW product aimed at a NEW market | False |
Created by:
lexi.welte
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