Mid-term exam tips Flashcards
Definition of “Share of Market”, “Share of Mind”, & Share of Heart”.
In general a company should monitor three variables when analyzing each of its competitors:
– Share of market : The competitor’s share of the target market.
– Share of mind : The percentage of customers who named the competitor in responding to the
statement, “Name the first company that comes to mind in this industry.”
– Share of heart : The percentage of customers who named the competitor in responding to the
statement, “Name the company from whom you would prefer to buy the product.”
Four levels of competition (Cite an example)
Every company faces four levels of competitors:
– A company can view its competitors as other companies that offer similar products and services to
the same customers at a similar price (McDonald’s will view its competition as Burger King,
Wendy’s, and Hardee’s).
– A company can see its competitors as all companies making the same product or class of products
(McDonald’s may see its competition as all fast food restaurants, including Jamba Juice, Kentucky
Fried Chicken, Taco Bell, and Arby’s).
– A company can see its competitors more broadly as all companies supplying the same service
(McDonald’s would see itself competing with all restaurants and other suppliers of prepared food,
such as the deli section of a supermarket).
– A company can see its competition even more broadly as all companies that compete for the same
consumer dollars (McDonald’s would see itself competing with grocery stores and the self-provision
of the meal by the consumer).
Barriers to Entry, Exit, and Competition (Restaurants Case)
Two forces that affect the competition are the ability of companies to enter and exit markets. Entry
barriers prevent firms from getting into a business, and barriers to exit prevent them from leaving.
Low barriers to entry characterize the restaurant industry.
– It takes a relatively small amount of capital to get started in the restaurant business.
– This makes it hard to predict future competition because a large pool of organizations and
individuals are capable of opening restaurants.
– As a result, some restaurant managers open without direct competition and soon find themselves
with four or five competitors in a year’s time.
– This phenomenon points out the importance of anticipating competition and operating on the
premise that one always has competition.
– Restaurant managers should always manage a business as if there is strong competition even if
there is none.
– By taking this approach the manager will be prepared when competition does arrive.
Identify the major trends in the firm’s natural and technological environments.
Marketers should be aware of several trends in the natural environment.
– The first involves growing shortages of raw materials.
– A second environmental trend is increased pollution.
– A third trend is increased government intervention in natural resource management.
Technology has affected the hospitality industry in many ways.
– For example Intelity has produced a product called ICE (Interactive Customer Experience) that can
be accessed from a number of web-enabled platforms, including smart phones and tablets.
– One of the most powerful changes is from social media.
Explain the key changes that occur in the political and cultural environments.
As products become more complex, public concern about their safety increases. Governmental agencies
have become involved in the investigation and regulation of everything from fire codes to food handling
practices. Legislation and regulation affecting business have been enacted for three reasons. Government
legislation and regulation:
– Protects companies from each other.
– Aims at protecting consumers from unfair business practices.
– Aims to protect society’s interests against unrestrained business behavior.
Cultural norms and cultural prohibitions may affect their managerial roles in ways quite different from
in the United States and Canada (for example, keeping kosher in Israeli hotels). To the extent that
subcultural groups have specific wants and buying behavior, marketers can choose subcultures as their
target markets.
Environmental Scanning!!!! Open Question on exam
Smart marketing managers take a proactive rather than a reactive approach to the publics and forces
in their marketing environment.
– Determine the environmental areas that need to be monitored
– Determine how the information will be collected, including information sources, the information
frequency, and who will be responsible
– Implement the data collection plan
– Analyze the data and use them in the market planning process
Explain the model of buyer behavior. !!!! open question on exam
-> kijk file
Buyer’s black box!!
The company that really understands how consumers will respond to different product features, prices,
and advertising appeals has a great advantage over its competitors.
Their starting point is the model of buyer behavior.
– This figure shows that marketing and other stimuli enter the consumer’s “black box” and produce
certain responses.
– Marketers must determine what is in the buyer’s black box.
– The black box has two parts: First, a buyer’s characteristics influence how he or she perceives and
reacts to the stimuli; Second, the buyer’s decision process itself affects outcomes.
The marketing stimuli consist of the four Ps: product, price, place, and promotion.
Other stimuli include major forces and events in the buyer’s environment: economic, technological,
political, and cultural
All these stimuli enter the buyer’s black box, where they are turned into the set of observable buyer
responses shown on the right: product choice, brand choice, dealer choice, purchase timing, and
purchase amount.
Outline the major characteristics affecting consumer behavior, and list some of the specific cultural,
social, personal, and psychological factors that influence consumers.
Cultural factors exert the broadest and deepest influence on consumers and are the most basic
determinant of a person’s wants and needs and their behavior.
Consumer behavior is also influenced by social factors, including the consumers’ reference groups,
family, social roles, and status and by personal characteristics such as age and lifecycle stage,
occupation, economic situation, lifestyle, personality, and self-concept.
Consumer choices are further influenced by four major psychological factors: motivation, perception,
learning, beliefs and attitudes.
Selective Distortion !! open question on exam
Selective distortion is the tendency to twist information into personal meanings and interpret
information in a way that will fit our preconceptions.
The Buyer Decision Process (ORDER)
Problem recognition Information search Evaluation of alte rnatives Purchase decision
Postpurchase behavior
The Organizational Buying Process
Organizational buyers usually face more complex buying decisions than consumer buyers. Their
purchases often involve:
– Large sums of money; Complex technical features (Room sizes, room setups, breakout rooms,
audiovisual equipment, and the like); Economic considerations; Interactions among many people at
all levels of the organization
List the eight stages of the organizational buying process. Regarding what stage, are marketers’ roles
especially important?
zelf antwoorden
What factors do convention planners think the most important when choosing a destination? !!! open question on exam!!!
zelf antwoorden
What is “Incentive travel”? Discuss the function of this trip based upon “Herzberg dual factor
theory” !!! open question on exam!!!
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Segmentation criteria!!!! open question on exam!!! (behavior)
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