Exam 1 Flashcards
(138 cards)
1
Q
Business market
A
individual organizations and companies purchasing products and services for use within their organization or for resale
2
Q
consumer market
A
individuals engaging in exchanges of products and services for personal consumption or use
3
Q
stars
A
businesses that are dominant and fast growing
4
Q
cash cows
A
dominate in slow growth and generate more cash than needed
ex: apple and coca cola
5
Q
question marks
A
high growth and low market share
ex: apple macbook air
6
Q
dogs
A
slow growth with low market share
7
Q
what are the 4 p’s of the marking mix?
A
- product
- price
- promotion
- place
8
Q
market penetration
A
selling more of existing products in existing markets
ex: mcdonalds supersized meals
9
Q
product development
A
introducing new products into the existing market
ex: mcdonalds sweet and spicy wings
10
Q
market developmet
A
introducing existing products into new markets
11
Q
diversification
A
introducing new products into new markets
12
Q
keys to selecting good prodcuts
A
- solve the customers problems
- chase clients not competitors
- establish connection between the customer and products
13
Q
product orientation philosophy
A
- supply generates demand
- mass production of uniform products
- dont consider needs of market or competitors
ex: Ikea
14
Q
sales orientation philosophy
A
- sell products after they are made
- assertive sales techniques will result in higher sales
- may fail to understand customer needs
15
Q
market orientation philosophy
A
- customer is king
- know company capabilities
- know your competitors
- satisfy customer needs and wants at a profit
16
Q
societal orientation philosophy
A
every product should provide value to the customer and society
17
Q
how to calculate market share
A
total units in firm/total units in industry
or
total revenue for firm/total revenue in industy
18
Q
value equation
A
benefits-cost
19
Q
what drives firm profitability?
A
when they create value to attract and keep customers
20
Q
what is included in the total customer benefit?
A
- product benefit
- service benefit
- personal benefit - trust sales person
- image benefit
21
Q
what is included in the total customer cost?
A
- monetary cost
- time cost
- energy cost
- psychic cost
22
Q
what are some profitability drivers?
A
- customer acquisition
- customer retention
- sales per customer
- margin
23
Q
how does customer acquisition drive profitability?
A
- cost of acquiring a customer
- need to know the lifetime value of a customer
24
Q
how does customer retention drive profitability?
A
- eliminate root causes of customer defections
- actively recover customers
- develop loyalty initiatives
25
how does sales per customer drive profitability?
- increase the share of customer (combo meals)
- generate add on sales to products (American girl doll)
- partner with other firms (kraft and Hershey s'mores)
26
how does margin drive profitability?
- increase price
- change customer behavior so they are less expensive to serve
- discourage unprofitable customers
27
greatest generation
1901-1927
28
silent generation
1928-1945
29
baby boomers
1946-1964
30
Gen x
1965-1980
31
Gen Y/Millenials
1981-1996
32
Gen Z
1997+
33
what factors make up the external marketing environment?
- social
- economic
- technological
- competitive
- regulatory
34
what is the social environment?
- includes culture, which effects what we eat, how we dress, what we do, and how we feel
- includes demographics and generational cohorts
35
what is the economic environment?
- pay attention to economic trends
| - there is no demand for products the people cant afford
36
gross income
total amount of money received by a person before paying taxes
37
disposable income
money left over after paying taxes
38
discretionary income
money available after paying taxes and necessities
39
competitive rivalry
- rivalry among existing companies in a particular industry
| - companies use tools like price discounting, new products, and quality service to attract new customers
40
power of suppliers
suppliers can drive down industry profits by charing higher prices and reducing product quality
41
power of buyers
can use their influence to demand lower prices
42
threat of entrants
new companies can shake up industry and cause increased competition
43
threat of substitutes
substitute products have the potential to replace existing products
44
Purpose of a SWOT analysis
- Play to strengths
- moderate weaknesses
- make the most of opportunities
- manage or eliminate threats
45
what are some American shared values?
- self sufficiency
- work ethic
- upward mobility
- competition
- sustainability
- environmental protection
46
what social change has had a HUGE impact on marketing?
working women
47
what is the median U.S household income?
$63179
48
what are some growing ethnic markets?
- hispanics
- African americans
- asians
49
manufacturing products requires 3 things:
- people
- knowledge
- resources
50
what are the types of geographic marketing?
- domestic
- international
- global
51
domestic market
- focus on sustaining firm in home country
| - generally no language or cultural barriers
52
international market
-export products outside domestic market, while remaining invested in the domestic market
53
global market
-selling products in countries throughout the world
54
what are the risks of global marketing?
- competitive: unsure of how competitors will respond to the new products entry
- economic: potential mismanagement of a country's economy
- legal: inadequate protection of intellectual and legal property
- political: civil rife
55
exporting
- enter foreign market by selling similar products to similar mix as home country
- exporting goods is a fairly low financial risk
ex: harley davidson
56
licensing
- firm in one country allows the firm in another country to use their processing and trademark
- licensor usually only receives a small portion of sales
57
joint venture
- two or more companies agree to create a new business in a foreign market
ex: KFC Beijing Kentucky company
58
foreign direct investment
-purchase property and operate in a foreign market
-companies have complete control of the operations they own
-cost and risks are high
Ex: BMW in singapore
59
standardization
- use same product in different markets
- lower production costs
- may not fit need of local market
60
customization
-adapt to fit local market at a higher cost
61
price dumping
when companies sell products for less in other countries than in their origin country
62
AMA ethical norms
- do no harm
- foster trust in marketing system
- embrace ethical values
63
federal trade commission
- prevent business practices that are deceptive and unfair
- enhance informed consumer choice
- accomplish goals without unduly burdening businesses
64
myths of unethical marketing
- marketers push products consumers dont want to buy
- consumers are no match for the power of marketing
- marketing is deceptive
- marketers believe in selling products they know will become obsolete
65
what factors make up the fraud triangle?
- opportunity
- motivation
- rationalization
66
personal ethical understanding
understanding right and wrong, fairness, honesty, and having respect for others
67
ethical courage
willingness to pay personal price for standing up against unethical practices
68
ethical leadership
providing support by helping others apply ethics and develop ethical courage
69
sustainability
organizations will focus on the worlds social problems and view them as opportunities to build profits and help the world
70
green marketing
development and marketing of products designed to minimize negative effects of the environment
71
exploratory research
- general; obtain impressions or insights
- small sample, subjective, convenient
- qualitative
- usually collected from in person interviews or focus groups
72
conclusive research
- trying to draw conclusions
- large, objective
- quantitative
- usually from surveys or scanner data
- allows you to find cause and effect relationships
73
syndicated data
-collected for specific industries by independent research firms
74
secondary data
- collected previously for a different purpose
- available right now
- saves time and money
75
primary data
- collected for the first time and sued for solving a specific problem
- answers a specific question
- can be expensive and time consuming
76
ad tracking
determine whether an ad is being seen and remembered
77
buyer decision process
want to know how potential customers gather product information
78
concept testing
sport through multiple concepts when trying to identify promising brand extensions
79
customer satisfaction research
insights regarding brand growth
80
marketing effectiveness and analytics
measure dollar by dollar effectiveness of marketing expenditures
81
sales forecasting
estimating future sales projections
82
test marketing
helps determine potential success of a new product
83
what is one of the oldest social research organizations in the US?
NORC
84
big data
high volume/high variety information that demands innovative forms of data processing
85
thick data
qualitative information that fills in gaps of big data
86
What are the 3 V's?
- volume: businesses and organizations collect enormous amounts of data every day
- velocity: data flow into businesses and organizations at lighting speed
- variety: data arrives in different forms
87
structured data
- defined, organized format that is readily accessible and easy to extract
ex: ratings scale, yes or no questions, limited response questions
88
unstructured data
- requires some sort of treatment, unifying, cleaning to make data usable
ex: comments from facebook, mobile data, video
89
what are some companies that use big data?
- macys
- walmart
- disney
90
data wrangling
-preparing and cleaning data
91
data exploration
discovery through numerical summaries
92
data modeling
- analysts transform data to extract thoughts
| ex: predicting weekend sales at a ski resort
93
what does a marketing hypothesis need?
- formulate null hypothesis
- pick a test statistic
- computer p value
ex: offering all day breakfast at mcdonalds nationwide will increase overall sales revenue and profitability
94
nominal scale
label like male/female or age
95
ordinal scale
numbers ordered in increasing size
96
interval scale
assumes an equal distance between numbers; like rating a product on 1-10
97
ration scale
data have equal intervals
98
steps to designing a questionnaire
- begins with screener: respondents name, address, and short questions that qualify person to participate in study
- closes with classification data
- use familiar language to respondents
- use the same scale throughout
99
4 important factors of strategic marketing research
- experience of the research team
- quality of the data sample
- expertness of the data analysis
- nature of the survey questions
100
factors associated with measurement error
- respondent characteristics: mood or knowledge
- situational factors: time of day or environment
- data collection: interviewing method
- questionnaire factors
- data analysis
101
construct validity
measurement matches up with things we know from marketing theory
102
content validity
measurement matches up with expert opinion
103
concurrent validity
similar study is done at same point in time and gives similar results
104
predictive validity
measurement can predict appropriate outcomes
105
reliability
extent to which a measurement is consistent and free from random errors
106
how do companies use marketing analytics?
- developing segmentation approaches
- evaluating their promotion, pricing, and product strategy
- monitoring brand efforts
- measuring effectiveness of social media
- consumer insight
107
focus groups
8-10 people representing the same demographic
108
depth interviews
good for sensitive topics and when you are looking for a lot of detail
109
cross tabulations
researchers are looking for a specific attitudes or behaviors that occur more often than would be expected
ex: preference of wendys frosty flavors based on gender
110
analysis of variance
- based on averages and variability around an average
- analyze differences among group means
ex: shelf space and position on shelf of prodcut
111
regression
look at relationship between dependent variable and one or more independent variables
ex: weekend ticket sales at a ski resort
112
factor analysis
- groups together highly correlated variables, then group factors
ex: measured 14 items then found 4 factors of customer attitudes about your store
113
cluster analysis
groups together respondents that answers survey questions in a similar way
114
discriminant analysis
ability of predictor variables to discriminate between categories to generate a perceptual map
ex: auto market - conservative/sporty
115
max diff analysis
presents set of attributes for which respondents indicate are the most/least important
116
conjoint analysis
estimates value of a product given trade offs
117
research presentation elements
- decisions: remind clients about the decisions they are making
- sample
- questions
- answers
- recommendations
- appendix
118
marketing insight
deep understanding of consumer attitudes and beliefs that have the power to share consumer behavior
119
steps in a buyers decision process
- problem recognition
- information search
- evaluation of alternatives
- purchase
- post purchase evaluation
120
low involvement decisions
-routine purchases that require little though
121
high involvement decisions
-expensive, social implications, may involve physical danger, requires a lot of information
122
when is the zero moment of truth?
-during the problem recognition phase
123
when is the first moment of truth?
during the information search
124
when is the second moment of truth?
during the post purchase evaluation
125
elimination by aspects
alternative product that are missing an important aspect are eliminated from purchase consideration
126
compensatory rule
poor performance of an alternative in one aspect can be compensated by superior performance in another aspect
127
lexicographic rule
list all product attributes in order of importance
128
delight
perception>expectation
129
satisfaction
perception = expectation
130
dissatisfaction
perception < expectation
131
reference groups
consumers look to them as standards for evaluation purchase decisions
132
opinion leaders
play an important role in influencing purchases
133
perception
process by selecting and interpreting information to create meaningful picture of the world around us
134
selective attention
process consumers use to notice and pay attention to stimuli that are immediately useful and screen out stimuli that are less useful
135
selective distortion
how consumers interpret information to support their feelings
136
selective retention
how consumers remember information
137
subliminal advertsing
- potentially hidden messages in advertising
| - no evidence this is used
138
define consumer beliefs
consumers perception of how well a brand performs on particular attributes
