exam 1 Flashcards
1
Q
marketing
A
engaging customers n managing profitable customer relationships
2
Q
what is marketing’s prime focus
A
satisfying customers’ needs n wants
3
Q
Maslow hierarchy of needs
A
- physiological
- safety
- love/belong
- self esteem
5/ self actualization
4
Q
production philosophy
A
consumer want products that are widely available and inexpensive
- belief product sells itself through low price
- only works if supply > demand
5
Q
product philosophy
A
consumers want expensive product
6
Q
selling philosophy
A
consumers only buy if hard selling is involved
- “hard selling” = aggressive promo
7
Q
marketing philosophy
A
focuses on needs/wants of consumers n delivering value better than competitors
8
Q
societal philosophy
A
focuses on needs/wants while delivery value better than competitors n GOOD FOR SOCIETY
9
Q
satisfaction
A
person’s feeling of pleasure or disappointment resulting from comparing product perceived performance in relation to their expectation
10
Q
strategic planning
A
process of developing and maintaining a viable fit between org objective, skills, n changing market opportunities
11
Q
market penetration
A
same market, same product
- deals w how they do things that gain them more customers n profits
- going deep in n building ur product
12
Q
market development
A
different market same product
- expanding into a different segment of the market w same product
13
Q
product development
A
same market different products
- developing new products in the same market to increase revenue
14
Q
diversification
A
new market different products
- seek to spread/expand while reducing risks
15
Q
strategic business units
A
have their own mission, org, n market n maintain themselves as independent profit centers
16
Q
boston consulting groups
A
try to asses a balanced portfolio
- growth share matrix (GSM)
17
Q
question marks (GSM)
A
new products enter the market where they are less dominant in the beginning
- ? = uncertain future
18
Q
stars (GSM)
A
promising future but does not generate profits
- company may invest in them
19
Q
cash cows (GSM)
A
high market shares while operating in a low market
- product remains strong, market growth rate decrease
20
Q
dogs (GSM)
A
product tend for themselves and do not require investments and eventually leaves
- cash cows turn into dogs when they lose investments
21
Q
electric model
A
see if firm has the resources n technology to penetrate the market
- nuanced model n less attractive but take much more consideration
22
Q
business mission
A
clear statement that outlines what business the firm is in
23
Q
situation or SWOT analysis
A
asses SWOT (mainly OT) of the company, look outward market environment and evaluate both +/- elements that may impact operation
24
Q
business objectives
A
specify quantifiable goals that may be measured
- used as benchmark
25
marketing strategy
26
segmented (products)
products that are tweaked to tailor to various customers
- ex: organic lemon, lemon, farm based lemon
- the only product that is unsegmented is chili
27
ethic
moral principles n values taht govern the conduct of an individual or group
28
ethic vs law
ethic = beliefs that are different for everyone
law = rules of the land
29
sustainability
ability to sustain or have capacity to endure
30
3 elements of sustainability
1. economic
2. ability to sustain us as a society
3. sustain the environment and its natural resources
31
corporate social responsibility (CSR)
idea that corporations are responsible for their owners and shareholders
32
CSR pyramid (bottom to top)
1. economic
- required by society + profitable
2. legal
- required by society + obey law/regulations
3. ethical
- expected by society + do what is just and fair + avoid harm
4. philanthropic
- desired + be good corporate citizen + give back
33
green marketing
company create products that support recyclable n contribute to a better environment
34
cause related marketing
parts of profits from customers go to a beneficial cause
- ex: buy 1 shoe = 1 donated
35
charitable donation
no strings attached, give for free
36
marketing environment
a study the market to gain a better understanding of the market n be prepared to respond to it
37
market environment 2 conditions
1. has little significant impact on company
2. marketer has very little control over market
38
7 environmental factors
1. social factors
2. demographic
3. growing ethnic
4. economic
5. technological
6. politcal and legal
7. competitive
39
social factors
how we function as a society
40
american values (social factors)
1. self-sufficiency
2. upward mobility
3, work ethics
4. conformity and equality
41
self sufficiency
everyone should stand on their own
42
upward mobility
work hard + play by the rule = move up the social ladder
43
work ethics
hard work = admired + rewarded
44
conformity n equality
everyone should be treated w equality
45
green (social factors)
consumers seek for environmental green so company try to conform to the ideal
46
social media (social factors)
people are interconnected online so ppl who utilizes it are more likely to be successful
47
demographic factors
significant influence environmental factor as demographic increase would increase demand for goods
- age, income, gender, household... = US pop growth
48
list of generations
1. baby boomers
2. gen x
3. gen y
4. gen z
5. gen alpha
49
growing ethnic markets
US has rapid minority growth where different minority groups have different demands for different goods
50
economic factors
has significant impact on consumer demands
- income
- purchasing power
- inflation
- recession
51
technological factors
research and stimulating innovation
52
political n legal factors
involves
- federal legislation: regulates markets n protect consumers
- state law: varies from states
- regulatory agencies: FDA n FTC
53
competitive factors
competition for market share n profits
- immediate: org close in proximity
- global competition: different countries
54
benefits of global vision
1. bigger markets
2. cheaper labor
3. access to efficient productions
55
multinational
operate out of several countries
- bulk of global marketing is done by multi- companies
- well positioned to take adv of globalization through decreasing costs n growing markets
56
3 environmental factors in global markets
1. cultural
2. economic n currency exchange
3. political/leal/trade agreements
57
culture (global markets)
- significant variations
- marketers must understand cultural differences to deliver products accordingly
- lack of cultural appreciation leads to blunder
58
economic n currency exchange (global markets)
- marketers must design n price products accordingly
- avg annual capital varies
59
political (global markets)
varies from fairly flexible to extremely restrictive
- companies must work between limited lines
60
legal (global markets)
1. tariffs: taxes on goods entering
2. quotas: limits quantity
61
trade agreements (global markets)
ensure fluid n efficient trading
62
type if trade agreements
1. north american free trade agreement: trade treaties between cananda, US, n mexico
2. mercosur: treaties between several latin american countries
3. european union: free trade zone encompassing most of europe
4. G20: plays significant role in influencing international trade
63
4 steps to enter global market
- entering involves increase risks n returns (move down)
1. exporting
2. licensing/franchising
3. joint venture
4. direct investment
64
exporting (entering GM)
company selling goods to foreigners
- no additional investment
- obtaining sales through existing products to foreigners w little marketing
65
licensing (entering GM)
domestic company allow another company access to its manufacturing know-how n IP
- includes patents n trademarks
- licensee take all responsibility n pay licensing fees
66
franchising
franchisor (comoany) sells rights/trademarks to market to produce a franchisee
67
joint venture (entering GM)
company seek partners that can provide complementary strengths while sharing investments, financial, risks, and rewards
68
what are complementary strengths
1. investments
2. manufacturing capabilities
3. access to distribution network
4. good understanding of foreign markets
69
direct investment (entering GM)
companies invest on their own n keeps profits to themselves
- riskiest
- low success
70
global marketing mix
1. standardized: same product, same promo
2. product adaption: modified product, same promo
3. promotion adaption: same product, modified promo
4. product invention: modified product n promo
71
GM mix pricing
adjust price according to the markets n exchange rate fluctuations
72
GM mix place
choose channels appropriate to markets
73
consumer behaviors
describe how consumers make purchase decisions
- consumers consider attributes n evaluation of product
74
4 steps of consumer decision making
1. need recognition
2. information search
3. evaluation of alternatives
4. purchase & post-purchase behavior
75
1st CDM
need recognition - gap between desired state n actual state
- wants
can be shaped by culture or individual preferences
- needs
can triggered internally n externally
76
2nd CDM
information search - how consumers learn of/about the product
- internal search - access to info stored in memory
- external search - used of external sources for info
- experience w product is more important
- marketers aim to get into evoked set of buyers
77
evoke set
group of alternative brands that consumers will consider buying
78
3rd CDM
evaluation of alternatives - w gathered info, buyers evaluated options
- fishbein n disjunctive model
79
fishbein model
buyers evaluate all brands in evoked sets on varieties of attributes
80
disjunctive model
only consider brands that meet certain criteria
- ex: only consider hybrid cars
- ends w 1 final decisions
81
4th CDM
purchase & post purchase behaviors
- purchase: planned or spur of the moment buying
- post-purchase behavior
include cognitive dissonance and repeat purchase
82
cognitive dissonance
occurs when buyers have doubts or are dissatisfied, leading to no repurchase
83
repeat purchase
marketers try to reinforce buyers
84
types of consumer buying decisions
1. extensive decision making
2. limited decision making
3. routine responsive behaviors
- Involvement cost
- Lack of experience
- Social visibility
Bottom to top because with more social visibility and lack of experience, it moves consumers to more elaborate decisions
85
extensive decision making
Thorough n lengthy process of evaluating options before buying
86
limited decision making
usually followed when consumers have experience w product but unfamiliar w new brands
- new brands = re-evaluation
- shows continuum from routine to extensive
87
routine response behavior
product becomes less involced..
- buyers see products as commodities n become price sensitive
88
3 Factor influencing consumer decision making
1. culture/subculture/social class
2. social influences
3. individual influence
89
1st influence on CDM
Culture / Subculture / Social Class
90
culture
set of values, norms, n attitudes
91
values
beliefs shares by a society
92
conservative values
more religious + patronize products that match their beliefs.
93
subcultures
exists due to demographic characteristics, geographic regions, nations/ethnic background
94
social class
defined by the status or esteem in the community
- Factors of social class:
1. Income
2. Professional status
3. Educational background
- Upper / middle / lower class
- Strong influence on consumers' purchasing power and preferences
95
2nd influence on CDM
Social Influences
reference groups
- aspirational groups: groups a person would like to be identified w
- non-aspirational groups: groups a person would like to stay away from
opinion leaders: can influence consumptions behaviors of others due to their standings in society or knowledge
family: children are influenced by parents n vice versa
96
3rd influence on CDM
individual influence
- age n family, life-cycle stage
- gender, personality, n self-concept
97
4th influence on CDM
psychological influences
perceptions
in marketing, perceptions are more important than reality
- gap between the two, where consumers base purchasing decisions on perceptions
motivation
learning or experiential learning
beliefs n attitudes
98
selective perception
interpreting info in ways that fit beliefs
99
selective exposures
actively seek info that fit beliefs/ignoring messages
- distort info
100
selective retention
only retaining information you want
101
producers purchase
produce G/S in varieties of industry
- OEM
102
original equipment manufacturer
includes purchase items in FG
- buys components
103
resellers purchase
buy G/S w intent of selling down the chain
104
governement purchase
buy wide variety of items
- include all group of gov
- BIGGEST BUYERS
105
other institutions
- not for profits
- ex: health care/ school/ church
106
business market/institutional/industrial
- make purchase to serve other (not self-consumption)
- involves business, resellers, governments, other institutional
- fewer # in buyers but buy large Q
- Geographical concentrated
- shorter channels (less # of ppl that G/S go through before reaching consumers)
- Demand can be derived, inelastic, n fluctuating
- NAICS
107
derived demand
Demand for a product affects demand of related product
108
inelastic
change in price cause little change in demands
109
fluctuating
Unpredictable demand for a product over time
110
north americans industrial classifications
identifies each business w 6-digits hierarchical code
- use by all 3 NA Free Trade Agreement
(USA, Canada, Mexico)
111
major equipments
expensive + large items to create products
- machines, building, computers
112
accessory equipments
cheap + short lived equipment
- power tool, pc, fax machines
113
raw + processed materials
RM = natural goods that haven't been altered
Processed = undergone changes
114
systematic purchase process
- new, modified, straight buy
115
new buy
major purchase being done for the first time
116
modified buy
previous purchase but needs changes or specifications
117
straight buy
reordering the same product in same Q as previous purchase
118
initiators and users
suggest purchase, often one who use product
119
influencers
influence purchase decisions using knowledge/expert about the product
- specialist
120
gate keepers
control/limit the informations
- ex: joe accountant, role to determine if bid meets financial terms
121
purchasers
person who negotiates details of the deal
122
decision makers
person w formal/informal power to make choice
