Marketing I Flashcards
(112 cards)
1
Q
What Is Marketing?
A
An organizational function and set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders
2
Q
What are the four steps of the Marketing Strategy Process?
A
- Research Market
- Segment & Choose Target Market
- Understand Targeted Customer Behavior
- Develop Marketing Strategy
3
Q
Why is Customer Utility important?
A
Customers must perceive value in products
4
Q
What is Utility?
A
The power of a good or service to satisfy a want or need.
5
Q
What are three specific types of utilities which marketing addresses?
A
- time utility
- place utility
- ownership utility
6
Q
How do marketers create time utility?
A
by making a good or service available when customers want to purchase it.
7
Q
How do marketers create place utility?
A
by making a product available in a location convenient for customers.
8
Q
How do marketers create ownership utility?
A
through an organized transfer of goods and services from the seller to the buyer
9
Q
What are the two steps to Developing a Marketing Strategy?
A
- Study and analyze potential target markets and choose among them.
- Create a marketing mix to satisfy the chosen market (product, distribution, promotion, & pricing)
10
Q
What is segmentation?
A
Identifying and describing market segments.
11
Q
What is targeting?
A
Evaluating segments and deciding which to go after.
12
Q
What is positioning?
A
Designing a product or service to meet a segment\s needs and develop a marketing mix that will create a competitive advantage in the minds of the selected target market.
13
Q
What are the two types of markets?
A
- Consumer (B2C) product
- Business (B2B) product
14
Q
What is a Consumer (B2C) product?
A
A good or service that is purchased by end users
15
Q
What is a Business (B2B) product?
A
A good or service purchased to be used, either directly
or indirectly, in the production of other goods for resale
16
Q
What is a target market?
A
A group of people that an organization markets its goods, services, or ideas toward, using a strategy designed to satisfy this group’s specific needs and preferences
17
Q
What is Marketing research?
A
The process of collecting and evaluating information to support marketing decision-making
18
Q
What are the 6 types of market research?
A
- Surveys
- Focus groups
- Interviews
- Libraries
- Government agencies
- Trade associations
19
Q
Where does Internal data come from and what does it include?
A
Internal data is generated within the organization; includes financial records, inventory levels, sales, profitability
20
Q
Where does external data come from and what does it include?
A
External data comes from outside sources; includes trade associations, advertising agencies, national marketing research firms
21
Q
Where does secondary data come from and what are its advantages?
A
Secondary data is previously published data.
- Low-cost and easy to obtain.
- Government publications provide data sources (e.g., census statistics).
22
Q
Where does primary data come from?
A
Primary data is collected through observation, surveys, and other forms of observational study.
23
Q
What are focus groups what their advantages?
A
Focus groups gathers 8 to 12 people in a room or over the Internet to discuss a specific topic.
-Can lead to new ideas, address consumer needs, and point out flaws in existing products
24
Q
What is Business intelligence?
A
A field of research that uses activities and technologies for gathering, storing, and analyzing data to make better competitive decisions
25
What is data mining?
The use of computer searches of customer data to detect patterns and relationships.
26
What is Market segmentation?
The process of dividing a total market into several relatively similar groups
27
What are the three Key criteria for picking dimension(s) for segmentation other than usefulness?
- A segment must be a measurable group
- A segment must be accessible for communication
- A segment must be large enough to offer profit potential
28
What are the four aspects of B2C market segmentation?
- Geographical
- Demographic
- Psychographic
- Product-related
29
What is included in Geographical B2C market segmentation?(4)
- Region
- Population
- Density
- Postal code
30
What is included in Demographic B2C market segmentation? (6)
- Age
- Gender
- Income
- Education
- Family size and life cycle
- Occupation
31
What is included in Psychographic B2C market segmentation? (8)
- Lifestyles
- Attitudes
- Opinions
- Behaviour
- Patterns
- Values
- Personality
- Self-image
32
What is included in Product-related B2C market segmentation? (8)
- Comfort
- Safety
- Luxury
- Economy
- Convenience
- Durability
- Brand loyalty
- Usage rates
33
What are the three aspects of B2B market segmentation?
- Geographical
- End-use
- Demographic
34
What is included in Geographical B2B market segmentation? (1)
Geographically concentrated industries
35
What is included in End-use B2B market segmentation? (3)
- Product design specifications for performance
- Design
- Price
36
What is included in Demographic B2B market segmentation? (3)
- Sales revenue
- Number of employees
- Number of buyers
37
What is Geographic segmentation?
Dividing an overall market into similar groups on the basis of their locations
38
What is Demographic segmentation?
Dividing markets on the basis of various demographic or socioeconomic characteristics, such as gender, age, income, occupation, household size, stage in family life-cycle, education, or ethnic group
39
What is Psychographic segmentation?
Dividing consumer markets into groups with similar attitudes, values, and lifestyles
-AIO (attitude, interests & opinion) statements are people’s verbal descriptions of various attitudes, interests, and opinions
40
What is Product-related segmentation?
Dividing consumer markets into groups that are based on benefits sought by buyers, usage rates, and loyalty levels
41
What is Geographic segmentation (B2B)?
Geographic segmentation targets geographically concentrated industries.
42
What is Demographic segmentation?
Demographic, or customer-based, segmentation designs a good or service intended for a specific organizational market (e.g., healthcare institutions).
43
What is End-use segmentation?
A marketing strategy that focuses on the precise way a
| B2B purchaser will use a product
44
What is Consumer behaviour?
End consumers’ activities that are directly involved in obtaining, consuming, and disposing of products, and the decision processes before and after these activities.
45
Which three factors make up consumer behaviour?
-Personal factors: needs and motives, perceptions,
attitudes, learned experiences, self-concept
-Interpersonal factors: cultural, social, and family
influences
-External factors: economic events
46
What does business buying behaviour include?
Business buying behaviour often includes a variety of influences from multiple decision makers within the organization.
47
What are the six Steps in the Consumer Behaviour Process?
- Recognition of problem or opportunity
- Search
- Evaluation of alternatives
- Purchase decision
- Purchase act
- Postpurchase evaluation
feedback
48
What are the 3 interpersonal determinants of the Consumer Behaviour Process?
- Cultural influences
- Family influences
- Social influences
49
What are the 5 personal determinants of the Consumer Behaviour Process?
- Needs and motives
- Perceptions
- Attitudes
- Learning
- Self-concept
50
What is a Marketing mix?
A blending of the four elements of marketing strategy to fit satisfy chosen customer segment(s)
51
What are the four aspects of the marketing mix?
- Product
- Price
- Place
- Promotion
52
What does Product strategy involve?
The nature of the product and its package design, brand names, trademarks, and product image.
53
What does Distribution (Place) strategy ensure?
That customers receive their purchases in the proper quantities at the right times and locations.
54
What does promotional strategy do?
Promotional strategy blends advertising, personal selling, sales promotion, and public relations to achieve its goals of informing, persuading, and influencing purchase decisions.
55
What does pricing strategy do?
Pricing strategy sets profitable and justifiable prices for the firm’s product offerings, sometimes subject to government scrutiny.
56
What is a product?
A bundle of physical, service, and symbolic characteristics designed to satisfy consumer wants
57
What are the three types of consumer products?
– Convenience Product
– Shopping Product
– Specialty Product
58
What are the three types of industrial products?
– Capital Product
– Expense Product
– Inventory Product
59
```
What is the Marketing Strategy for Consumer Goods:
Convenience Product
Purchase
Store Image
Price
Promotion
Distribution Channel
Number of outlets
```
```
Purchase - Frequency Frequent
Store Image - Unimportant
Price - Low
Promotion - By manufacturer
Distribution Channel - Many wholesalers & retailers
Number of outlets - Many
```
60
```
What is the Marketing Strategy for Consumer Goods:
Shopping Product
Purchase
Store Image
Price
Promotion
Distribution Channel
Number of outlets
```
Purchase Frequency - Relatively infrequent
Store Image - Very important
Price Relatively - high
Promotion - By manufacturer & retailers
Distribution Channel - Relatively few wholesalers & retailers
Number of outlets - Few
61
```
What is the Marketing Strategy for Consumer Goods:
Specialty Product
Purchase
Store Image
Price
Promotion
Distribution Channel
Number of outlets
```
Purchase Frequency - Infrequent
Store Image - Important
Price - High
Promotion - By manufacturer & retailers
Distribution Channel - Many wholesalers & retailers
Number of outlets - Very small number; often 1/area
62
What are two types of capital goods?
- Installations are major capital items such as new factories, heavy equipment and machinery, and custom-made equipment.
- Accessory equipment includes less expensive and shorter-lived capital items than installations and involves fewer decision makers.
63
What types of expense goods are there?
Supplies are expense items used in a firm’s daily operations that do not become part of the final product.
64
What are two types of inventory goods?
- Component parts and materials become part of a final product.
- Raw materials are farm and natural products used in producing other final products.
65
What is a Product line?
A group of related products that share by physical similarities or are targeted toward a similar market
66
What is a Product mix?
The assortment of product lines and individual goods and services that a firm offers to consumers and business users
67
What is the Product life-cycle?
The four basic stages in the development of a successful product—introduction, growth, maturity, and decline
68
What happens in the introduction stage of the product life-cycle?
The firm promotes demand for its new offering; informs the market about it; gives free samples to entice consumers to make a trial purchase; and explains its features, uses, and benefits.
69
What happens in the growth stage of the product life-cycle?
Sales climb quickly as new customers join early users who are repurchasing the item. The company begins to earn profits on the new product.
70
What happens in the maturity stage of the product life-cycle?
Industry sales eventually reach a saturation level at which further expansion is difficult.
71
What happens in the decline stage of the product life-cycle?
Sales fall and profits decline
72
What is a brand?
A name, term, sign, symbol, design, or some combination that identifies the products of one firm and shows how they differ from competitors’ offerings
73
What is a brand name and what is its use?
The part of the brand that is made up of words or letters that form a name.
Used to identify a firm’s products and show how they
differ from the products of competitors.
74
What is a trademark?
A brand that has been given legal protection
75
What are the four branding categories?
-A manufacturer’s (or national) brand is offered and
promoted by a manufacturer.
Tide, Cheerios, Windex, Fossil, Nike
-A private (or store) brand is not linked to the manufacturer but instead carries a wholesaler’s or retailer’s label.
Loblaw ’s President ’s Choice foods, Sears’ Craftsman tools
-A family branding strategy uses a single brand name for
several related products.
KitchenAid, Johnson & Johnson, Hewlett-Packard, Arm & Hammer
-An individual branding strategy gives each product within a line a different name.
76
What happens in brand recognition?
The consumer is aware of the brand but does not have a preference for it over other brands.
77
What happens in brand preference?
The consumer chooses one firm’s brand over a competitor’s.
78
What happens in brand insistence?
The consumer will seek out a preferred brand and accept no substitute for it (the ultimate degree of brand loyalty).
79
What is brand equity?
The added value that a respected and successful name gives to a product
80
What does Packaging affect?
The durability, image, and convenience of an item and is responsible for one of the biggest costs in many consumer products.
81
Why is packaging importat?
Packaging is important in product identification and play is an important role in a firm’s overall product strategy.
82
What are Product & Distribution about?
Providing an appropriate product to the right place.
83
What are Promotion & Pricing about?
Attracting and sustaining customers
84
What is a Distribution channel?
The path that products— and their legal ownership—follow from producer to consumers or business users
85
What is Physical distribution?
The actual movement of products from producer to consumers or business users
86
What are the two types of distribution channels?
- Direct distribution
| - Distribution channels using marketing intermediaries
87
What are four aspects of direct distribution?
- Direct contact between producer and customer.
- Most common in B2B markets.
- Often found in the marketing of relatively expensive, complex products that may require demonstrations.
- Internet is helping companies distribute directly to consumer market.
88
What are three aspects of distribution channels using marketing intermediaries?
- Producers distribute products through wholesalers and retailers.
- Inexpensive products sold to thousands of consumers in widely scattered locations.
- Lowers costs of goods to consumers by creating market utility.
89
What is a Wholesaler?
A distribution channel member that sells primarily to retailers, other wholesalers, or business users
90
What are three aspects of Manufacturer-owned wholesaling intermediaries?
- Owned by the manufacturer of the goods or products to control distribution or customer service
- Sales branch stocks products and fills orders from inventories
- Sales office takes orders but does not stock the product
91
What are retailers? (2)
-Distribution channel members that sells goods and services to individuals for their own use, not for resale
-Final link of the distribution channel; deal directly
with customers
92
What are the two types of retailers?
- Store
| - Non-store
93
What are four examples of non-store retailing?
- Direct response retailing
- Internet retailing
- Direct selling
- Automatic Merchandising
94
Give 5 examples of Direct response retailing.
Sales through
- Catalogues
- Telemarketing
- Magazine
- Newspaper
- Television ads
95
Give 3 examples of Internet retailing.
Sales through
- Virtual storefronts
- Web-based sellers
- Websites of brick-and-mortar retailers
96
Give an example of Direct selling.
Direct manufacturer-to-customer sales
97
Give an example of Automatic Merchandising.
Sales of consumer products through vending machines.
98
What are 8 types of retail stores?
- Specialty store
- Convenience store
- Discount store
- Warehouse club
- Factory outlet
- Supermarket
- Supercenter
- Department store
99
Retailers compete in ... (7)
- Identifying a target market
- Selecting a product strategy
- Selecting a customer service strategy
- Selecting a pricing strategy
- Choosing a location
- Building a promotional strategy
- Creating a store atmosphere
100
What is Intensive distribution?
Intensive distribution involves a firm’s products in nearly every available outlet, and requires the cooperation of many intermediaries.
101
What is selective distribution?
In selective distribution, the manufacturer selects a limited number of retailers to distribute its product lines.
102
What is Exclusive distribution?
Exclusive distribution limits market coverage in a specific geographical region that will enhance a product’s image.
103
What is a supply chain?
The complete sequence of suppliers that help to create a good or service and deliver it to business users and final consumers
104
What is Logistics?
The process of coordinating the flow of goods, services, and information among members of the supply chain
105
What are the 5 modes of transportation?
- Truck
- Rail
- Water
- Air
- Pipeline
106
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Rate truck in terms of
Speed
Dependability in meeting schedules
Frequency of shipments
Availability in different locations
Flexibility in handling
Cost
```
Speed - Fast
Dependability in meeting schedules - High
Frequency of shipments - High
Availability in different locations - Very extensive
Flexibility in handling - Average
Cost - High
107
```
Rate rail in terms of
Speed
Dependability in meeting schedules
Frequency of shipments
Availability in different locations
Flexibility in handling
Cost
```
Speed - Average
Dependability in meeting schedules - Average
Frequency of shipments - Low
Availability in different locations - Low
Flexibility in handling - High
Cost - Average
108
```
Rate water in terms of
Speed
Dependability in meeting schedules
Frequency of shipments
Availability in different locations
Flexibility in handling
Cost
```
Speed - Very slow
Dependability in meeting schedules - Average
Frequency of shipments - Very low
Availability in different locations - Limited
Flexibility in handling - Very high
Cost - Very low
109
```
Rate air in terms of
Speed
Dependability in meeting schedules
Frequency of shipments
Availability in different locations
Flexibility in handling
Cost
```
Speed - Very fast
Dependability in meeting schedules - High
Frequency of shipments - Average
Availability in different locations - Average
Flexibility in handling - Low
Cost - Very high
110
```
Rate pipeline in terms of
Speed
Dependability in meeting schedules
Frequency of shipments
Availability in different locations
Flexibility in handling
Cost
```
Speed - Slow
Dependability in meeting schedules - High
Frequency of shipments - High
Availability in different locations - Very limited
Flexibility in handling - Very low
Cost - Low
111
What does Customer service standards measure?
The quality of service a firm provides for its customers.
112
What are Warranties?
A firm’s promises to repair a defective product, refund money paid, or replace a product if it proves unsatisfactory.
