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MAR3023 midterm
| Question | Answer |
|---|---|
| Marketing | the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. |
| customer value | the unique combination of benefits received by targeted buyers that includes quality, price, convenience, on time delivery and both before sale and after sale service |
| marketing management | facilitates the exchange of value (marketing creates customer value through the process of exchange) |
| time utility | having the product or service available when the customer wants it |
| place utility | having the product where the consumer wants it. Can be created by convenience or the atmosphere. |
| form utility | having the product int he form that is of most value to the customer |
| possession utility | actually having the product in hand |
| marketing mix | the four controllable factors in a marketing program that are designed to satisfy customer needs: product, price, promotion, and place |
| product (marketing mix) | a good, service, or idea to satisfy the consumer's needs |
| price (marketing mix) | what is exchanged for the product |
| place (marketing mix) | a means of getting the product into the customer's hand |
| promotion (marketing mix) | a means of communication between the seller and buyer |
| marketing program | a plan that integrates the marketing mix to provide a product, service, or idea to prospective customers |
| The Three C's | what firms have to consider when creating a marketing program (customers, competitors, and costs0 |
| STP marketing | at the heart of modern marketing, is the process of identifying groups in the marketplace and then serving those groups through segmentation, targeting, and positioning |
| positioning | having a message to send to the consumer that establishes the company as a strong competitor in its segment |
| Production Orientation | when a firm focuses on producing as much of the product as efficiently as possible (inwardly focused) |
| Sales Orientation | selling more aggressively to get rid of inventory because more competitors are in the market, causing supply and demand to reach equilibrium (inwardly focused) |
| Marketing Orientation | the company focuses on the consumers wants and needs (outwardly focused) |
| Market Orientation | the firm focuses its efforts on continuously collecting information about customers' needs and competitors' capabilities, sharing this information across departments, and using the information to create customer value (outwardly focused) FOCUS=CONSUMER |
| market | potential consumers with both the desire and the ability to buy a specific product |
| target market | one or more specific groups of potential consumers toward which an organization directs its marketing program |
| environmental forces | the uncontrollable factors involving social, economic, technological, competitive, and regulatory forces |
| marketing concept | the idea that an organization should (1) strive to satisfy the needs of consumers and (2) while also trying to achieve the organization's goals |
| customer relationship management (CRM) | the process of identifying prospective buyers, understanding them intimately, and developing favorable long term perceptions of the organization and its offerings so that buyers will choose them in the marketplace |
| customer experience | the internal response that customers have to all aspects of an organization and its offering |
| societal marketing concept | the view that organizations should satisfy the needs of consumers in a way that provides for society's well-being |
| utility | the benefits or customer value received by users of the product |
| Characteristics of the marketing environment | (1) constraining (2) multi-level (3) current vs. future environment |
| Macro environment | broadest level of the market. Includes five sectors: social (cultural), economic, technological, regulatory, and natural |
| Micro environment | level of the market that is focused on a particular field or industry |
| Internal environment | level of the market that is inside the firm. Represents departments other than marketing in the firm, such as research and development and finance |
| core values of the US culture | individualism, time orientation (present and future), extraordinarily materialistic, youthfulness is valued |
| micro-cultures | used to be called subcultures (centered around religion, region, age, language, lifestyle, etc.) |
| regional marketing | deals with developing marketing plans to reflect specific areas' differences in taste preferences, perceived needs, or interests |
| demographics | describes the population according to selected characteristics such as age, gender, geographical location, ethnicity, income, and occupation |
| Silver Streakers | born before 1946, comprises 20% of the population, very affluent and are becoming more stress-free and less financially conservative so they spend extra money on luxury items |
| Baby Boomers | born b/w 1946 and 1964, 40% of the adult population and 28% of the US population, leisure is a high priority for this groups as most of them are empty-nesters and retiring |
| Generation X | born b/w 1965 and 1976, comprises 23% of the adult population and 17% of the US population, cynical and reject market hype, wanting instead real (true) value |
| Generation Y | Boomlets, born b/w 1977 and 1995, comprises 22% of the adult population and 26% of the US population, very environmentally, socially, and health conscious |
| Millenials | born after 1995, characteristics are unknown |
| Gross Domestic Product | a measure of the value of all the goods and services produced within the US |
| real income | income that has been adjusted for inflation, which decreases the purchasing power of the dollar |
| disposable income | the income the consumer has left to spend after taxes |
| discretionary income | the income the consumer has left to spend after paying for taxes and necessities |
| index of consumer confidence | a report made up of an average of answers to questions asked to consumers about their confidence in their job, the economy, etc. Measures consumer expectations |
| key issues in the technological environment | (1) the rate of change is accelerating and (2) media fragmentation |
| regulations | exist to protect companies along with consumers |
| regulations protecting competition | Sherman Antitrust Act, Robinson-Patman Act, Lanham Act |
| regulations protecting consumers | the food and drug administration, the federal communications commission, the federal trade commission, the consumer product safety commission, us department of agriculture |
| Sherman Antitrust Act | designed to keep companies from having monopoly power in an industry |
| Robinson-Patman Act | prohibits price discrimination |
| Lanham Act | protects trademarks |
| consumerism | refers to the general tendency among some groups of consumers to be very actively against firms that mislead or engage in bad business practices |
| the natural sector | energy, pollution, raw materials, weather, green marketing |
| factors in the micro environment | customers, competitors, stakeholders, suppliers, channels (the companies a firm uses to distribute a product to the market once it leaves the manufacturer.. includes wholesalers and retailers) |
| factors in the internal environment | top management, personnel, other departments |
| strategic environmental scanning | the process used by an organization to get information about the environment (includes sectors, actors, sources, and interpretation) |
| ethics | moral principles and values that govern actions and decisions |
| laws | societal standards and values that are enforceable in a court of law |
| reasons for increased attention to ethics | diverse societal value systems, increased public scrutiny, expectations have risen, ethical conduct perceived dropping |
| moral philosophy is influenced by | societal culture/norms, business culture/practices, and organization culture/expectations |
| moral idealism | believe that individual rights and responsibilities are universal, regardless of outcome |
| utilitarianism | greatest good for the greatest number, benefits must exceed costs |
| profit responsibility | holds that companies have a simple duty - to maximize profits for the owners or stockholders |
| stakeholder responsibility | focuses on obligations an organization has to those who can affect achievement of its objectives |
| societal responsibility | regers to obligations that organizations have to the (1) preservation of the ecological environment and (2) general public |
| cause-related marketing | a marketing approach in which a firm ties its marketing to particular societal cause |
| social audit | the systematic assessment of a firm's objectives, strategies, and performance in the domain of social responsibility |
| five steps of a social audit | recognition of responsibility, identification of "mission", determination of priorities, specification of resources, evaluation of results |
| influences on consumer decision making | marketing mix, psychological, situation, socio-cultural |
| marketing mix effect | the marketer's impact on consumer decisions |
| Goal-Directed (decision making concept) | as consumers make purchases, they are doing so to reach a particular consumption goal |
| Bounded Rationality (decision making concept) | consumers are not perfectly rational so they can make a decision that they think is a good one and then later turns out to be a bad one |
| Involvement (decision making concept) | describes how motivated consumers are to make a "great" decision |
| Selectivity (decision making concept) | consumers selectively process what they are going to devote their attention to (we notice some ads, but not others) |
| Adaptivity (decision making concept) | we learn through trial and error what works best for us. we adapt our decisions over time and this leads to brand loyalty. |
| Household | the typical DMU (decision making unit) |
| Information Gatherer (Gatekeeper) | responsible for letting information into the DMU or keeping info away. Gathers info for the decision process. |
| Influencer | anyone in the DMU that does not make the decision, but has an influence (children) |
| Decision-maker | the person who actually makes the decision about what to buy (can be joint) |
| Purchaser | the person who actually makes the purchase |
| User | the person who actually uses the product (can be multiple) |
| Decision-Making Process | problem recognition, information search, alternative evaluation, purchase, post-purchase consumption |
| internal information gathering | from our own memory |
| external information gathering | from outside our own memory |
| Multi-attribute model | the psychological model of attitudes- a very fundamental approach to evaluating alternatives. Two major components: consideration set of brands (evoked set) and set of evaluative criteria (attributes) |
| Customer profile | has individual differences in demographics, socio-economic status, and psychographics |
| consumer satisfaction | expectations about what the product is going to do that drives customer value and satisfaction |
| perceptions | must be higher than expectations to be delighted, meet expectations to be satisfied |
| consumer advocate | many large companies have a person on their staff to b the voice of the customer in decision making |
| Chief Customer Officer (CCO) | specifically plays the role of representing the consumer in top decision making |
| Hedonic Consumption | consumption of experiences (concerts, theme parks, travel, etc.) |
| Macro lifestyle trends | Fantasy Adventure, Being Alive, 99 Lives, Cashing Out |
| Fantasy Adventure | trend for people to have adventurous experiences but they do not want to risk a lot doing it |
| Being Alive | making the most out of every day - not just carpe diem, but carpe punctum (seize the moment) |
| 99 Lives | refers to the fact that people are feeling stressed out by all of the things that demand their time. This trend operates against leisure time. |
| Leisure trends (Micro trends) | Aging Boomers, Hybrid Sports, Cross-Participation |
| Aging Boomers | putting more pressure on the industry to make more user-friendly products |
| Hybrid Sports | ex: snowboarding |
| Cross-Participation | people that participate in one sport are more likely to participate in other sports |
| Four types of time | Contracted (Paid work), Committed (Household Care), Personal (Self Maintenance), Free (Discretionary) |
| Recreation | refreshing ourselves and challenging ourselves mentally, not just sitting in front of the TV |
| Peak experience | a high point in life, an exciting, rich, and fulfilling experience |
| Flow | refers to a sense of mastery, accomplishment, and novelty (in the zone) |
| Organizational buyers | Industrial, resellers, and the government |
| Industrial buyer | an organizational buyer that reprocesses in some way a product or service they buy before selling it again to the next buyer |
| Reseller | an organizational buyer, wholesalers and retailers who buy physical products and resell them again without re-processing, they buy finished products for the purpose of reselling them |
| Government | an organizational buyer, the federal, state, and local agencies that buy goods and services for the constituencies they serve |
| NAICS | North American Industry Classification System, system for classifying organizations in Canada, Mexico, and the US based on the major activity, good or service provided |
| Key features of an organizational buyer | derived demand, more formal decision process, larger decision making criteria, more specific criteria, relationship marketing |
| buying center | the group of individuals in an organization who share common goals, risks, and knowledge important to a purchase decision |
| roles in the buying center | users, influencers, purchasing agent, deciders, gatekeepers |
| straight re-buy | the buyer reorders an existing product without even checking with users or influencers, done on a repeated basis |
| modified re-buy | the users, influencers, or deciders in the buying center want to change the product specifications, price, delivery schedule, or supplier |
| new buy | the organization is a first time buyer of the product or service. This involves greater potential risks, so the buying center is enlarged to include all those who have a stake in the new buy. |
| value analysis | a systematic appraisal of the design, quality, and performance of a product to reduce purchasing costs |
| types of costs | initial purchase, switching, operating, life cycle |
| vendor analysis | a process that companies use to analyze different vendors that they are considering for the purchase of products |
| dimensions of vendor analysis | cost, product quality, after-sale service, reliability, terms of purchase |
| marketing research | a set of activities providing information for marketing decision making |
| uses of marketing research | environmental scanning, demand forecasting, segmentation, market tracking, new product testing, ad pretesting, product positioning, test marketing |
| Five Step Approach to Marketing Research | define the problem, develop the research plan, collect relevant information, develop findings/recommendations, take action/evaluate results |
| Marketing Information System | an integrated, ongoing decision support system (consists of internal, external, secondary, and primary data) |
| External, primary research | exploratory, descriptive, and causal |
| exploratory research | consists of going out and looking around to see what you can find, used to define a problem, can be done through observation, depth interviews, and focus groups |
| ethnographic research | a type of exploratory research (external, primary), a researcher goes to where the people live or where consumers buy products |
| depth interviews | a type of exploratory research (external, primary), that is very expensive because the interviewer has to be trained extensively |
| focus groups | a type of exploratory research (external, primary) that is the most widely used type of primary research |
| descriptive research | involves taking a snapshot of the marketplace in order to provide an accurate description of the marketplace, uses observation and surveys |
| observation (in descriptive research) | 2 types: personal and electronic. Personal- people are observed in a particular setting and findings are recorded more systematically. Electronic- using data generated at a store's checkout counter |
| surveys | include mail, phone, web, and personal interview (door to door and mall intercept) |
| key factors in descriptive research | population, sample, response rate, representativeness (accomplished with probability samples), and error (bias) |
| sampling error | results from selecting a sample that is either too small or too biased |
| interviewer error | when an interviewer inadvertently gives off signals as to what kind of answers they would like to hear |
| Questionnaire Design Error | the questions point the respondent in a certain direction, maybe by not offering responses that truly represent the person's true feelings |
| Causal research | addresses why something happens in the marketplace, a firm is looking for explanations as to various phenomena in the marketplace |
| keys to causal research | manipulation and control: manipulate the experimental independent variable(s), control all extraneous independent variables, and measure the dependent variable |
| two types of causal research | Laboratory and field (test marketing) |
| segmentation criteria | measurability, reachability, profitablity, distinctiveness across, similarity within, differential response |
| selective targeting | firms select a specific target market and can effectively communicate with them |
| self selection | there is a much more varied audience and we are counting on different people in our segment to respond differently to ads that they see |
| distinctiveness across | refers to the overlap between segments. The more overlap, the more the segmentation approach will be ineffective. |
| similarity within | refers to the tightness within a segment. Identifying segments with higher similarities within the segment is a more effective method of segmentation |
| differential response | the identified market segments respond differently to controllable marketing variables (elastic vs. inelastic) |
| The four categories of variables that marketers use for market segmentation | objective, subjective, general, specific |
| General variables | descriptions of the consumer |
| Specific variables | relate expressly to the product category |
| indexing | creating an index number for each characteristic of the markets that we want to describe, Index Number = (%DMA/%US) x 100% |
| objective, specific variables | past purchase, product class (heavy half), brand loyalty |
| subjective, specific variables | benefit segmentation, usage situation (occasion-based segmentation) |
| 4 targeting strategies | mass marketing, market concentration, multi-segment, and mass customization |
| majority fallacy | blindly pursuing the largest segment |
| points of parity (positioning) | features or benefits deemed "necessary" by consumers for a brand to be a viable entry in the product category |
| points of difference (positioning) | unique (desirable) brand features or benefits that differentiate it from other competitors in the product category |
| approaches to product positioning | product feature, product benefit, user category, against other brands, against product categories, specific use |
| consumer goods | purchased by the ultimate consumer (4 basic types0 |
| convenience goods | items purchased frequently, conveniently and with minimal shopping effort |
| shopping goods | items for which the consumer compares several alternatives on criteria such as price, quality or style |
| specialty goods | items that a consumer makes a special effort to search out and buy |
| unsought goods | items that the consumer either does not know about or knows about but does not initially want |
| industrial goods | products used in the production of other products for ultimate consumers |
| productions goods | a type of industrial good, items used in the manufacturing process that become part of the final product |
| support goods | a type of industrial goods, items used to assist in producing other goods and services |
| continuous innovation | allows the consumer to preserve the continuity of their everyday lives. these innovations include the introduction of minor new products, brand extensions, line extensions, new brands in existing product classes, and new styles of a product. |
| dynamically continuous innovation | these products do not change the lives of consumers dramatically, same product different form |
| discontinuous innovation | really changes the everyday lives of consumers, usually very expensive and risky (completely new product class) |
| new product process (new product strategy development) | idea generation (new product planning), screening and evaluation, business analysis, prototype development and testing, market testing, and commercialization |
| cross-functional team | a team of people representing marketing, sales, research and development, production, finance, etc., to gain multiple perspectives on a potential new product's development into a viable product |
| idea generation | new product process, the development of a pool of concepts as candidates for new products. For every 60 ideas, 1 will be produced. |
| screening and evaluation | new product process, involves internal and external evaluations of the new product ideas to eliminate those that warrant no further effort |
| feasibility screen | internal approach to screening and evaluation (new product process) |
| concept testing | external approach to screening and evaluation (new product process) |
| business analysis | new product process, involves specifying the features of the product, the marketing strategy needed to commercialize it and making necessary financial projections |
| cannibalization | the sales of a new brand may come in part from the sales of existing brands (from the same firm) |
| prototype development and testing | new product process, the firm decides if it can actually make the product. It then actually tests the product on consumers. |
| market testing | new product process, involves exposing actual products to prospective customers under realistic purchase conditions to see if they will buy (often uses simulated test markets) |
| simulated test markets | simulates a full scale test market in a limited fashion by questioning qualified persons in environments like shopping malls |
| commercialization | new product process, is the positioning and launching of a new prodcut in full scale production and sales. Has a 50% chance of success. Comes with risk of slotting fees and failure fees. |
| adoption process | the process by which the consumer decides to adopt a new product for his or her continued use. awareness, interest, evaluation, trial purchase, adoption. |
| diffusion | the cumulative proportion of the market that adopts the product |
| factors affecting diffusion | relative advantage (over existing products), communicability, complexity, compatibility, risk |
| levels of product benefits | core, expected, augmented |
| features | aspects that are built into a product, don't mean much to the consumer in isolation |
| benefits | what the product does and why people buy it |
| product item | a specific product, identified by it's stock keeping unit (SKU) |
| product line | a group of closely related products |
| product mix | the set of product lines within a company (can be described by width, depth, and consistency) |
| product life cycle | introduction, growth, maturity, and decline stages |
| product class product life cycle | the life cycle of an entire product category or industry |
| product form product life cycle | the life cycle of product variations within the class |
| brand product life cycle | the life cycle of a specific brand within a product form |
| strategies to extend the product life cycle | market penetration, market development, product modification, product repositioning |
| brand/category development index | $ per capita in territory/$ per capita in nation x 100 |
| brand name | a verbal label that is attached to a product |
| brand mark | a non-verbal mark for the brand |
| trade character | a personified representation of the brand |
| trademark | labels protected legally and owned by a company |
| family branding | a situation where a firm puts the same basic brand name on all the products they sell |
| multiple branding | a situation that's used when a company attaches different brand names to the various products it sells |
| national branding | the kind of brands that are talked about all the time and that are designed to attract consumers based on the brand name and to build brand loyalty |
| private label branding | occurs when products are branded for association with a particular retailer |
| licensign | a branding strategy in which a firm that owns a brand name sells the rights to another company to produce products under that brand name |
| brand equity | the added value that a brand name provides to a product. You can extend brand equity through line extension and category extension. |
| four components of brand equity | awareness, brand associations, perceived quality, and loyalty |
| The Four I's (characteristics of services) | intangibility, inconsistency, inseparability, inventory |
| products have more | search attributes and some experience attributes |
| services have more | experience attributes and more credence attributes |
| search attributes | attributes about which consumers can gather very reliable information in advance |
| experience attributes | attributes that consumers can only really know about after they experience the product or service themselves |
| credence attributes | attributes that consumers just have to trust because they can't even be determined after use |
| core service | have to have the product people want MOST IMPORTANT |
| expected service | customer expectations regarding dependability, courtesy, etc. |
| augmented service | service that goes beyond expectations, where we win customers away from competitors |
| potential service | what could be done better in the future |
| RATER | (dimensions of service quality) reliability, assurance, tangibles, empathy, responsiveness |
| reliability (RATER) | dependability or consistency in our service |
| assurance (RATER) | relates to how a service provider presents him or herself; we want to create an image of competence |
| tangibles (RATER) | relates to any tangible aspect of our service (or the product ourselves), such as what our business looks like, what our sales reps are wearing, etc. |
| empathy (RATER) | an attitudinal aspect of service through which the provider communicates to the customer that he cares |
| responsiveness (RATER) | day to day service readiness and service recovery |
| quality gap | exists when customer perceptions fall short of customer expectations |
| knowledge gap | exists between what customers really expect and what management thinks customers expect |
| standards gap | exists when management accurately perceives consumer expectations but erroneously sets up a service to try and deliver to those expectations |
| delivery gap | exists when management correctly identifies consumers' expectations and develops a way to fulfill those expectations, but the implementation of the service plan goes awry (where most problems occur) |
| communications gap | exists between implementation, which is what we really do, and our external communications to customers, which is what we tell them we're going to do (over promise) |
| profit comes from the following sources over time: | "base" profit, larger/more purchases, reduced operations costs, more referrals, and price premium |
| relationship marketing | an effort to develop a long-term, cost-effective link with individual customers for the mutual benefit of the customer and the organization |
| frequency marketing | a type of relationship marketing, this is the general term applied to trying to reward people for the frequency of their business |
| database marketing | a type of relationship marketing, this is using large collections of data to make decisions about how we market to different groups |
| interactive marketing | a type of relationship marketing, this kind of marketing is done through the world wide web (facebook uses ads tailored to what you search for) |
| market offering | can come in the form of a commodity, good, service, or experience |
Created by:
lakamo3289