MCK1

Question 1

levels of strategic planning (2)

Answer 1

1 corporate level plans
*decide whether to be an innovator (first-mover strategy) or follower (second-mover strategy)
2 business level plans in strategic business units/SBUs
3 functional level

Question 2

4 steps in the strategic planning process (2)

Answer 2

1 evaluate external (OT) and internal environments (SW)
2 mission statement - states purpose of org and why it exists
3 objectives - SMART goals
4 value proposition and strategy formulation (means to the end - create a marketing plan)

Question 3

Porter’s 5 forces model (2)

Answer 3

1 substitutes
2 potential new entrants/competitors
3 bargaining power of suppliers
4 bargaining power of buyers
5 jockeying for a position/competition

Question 4

4 marketing strategies (2)

Answer 4

1 market penetration - increasing sales of existing products
2 product development - improve or create new
3 market development - enter new market with existing product
4 diversification - doing something outside firm’s current business

Question 5

6 types of market development strategies (2)

Answer 5

1 export - low risk
2 license - high risk of creating competition by vendor
3 franchising
4 contract manufacturing - hire manufacturers to produce products in another country
5 joint venture
6 direct investment - owning company overseas

Question 6

4 components of marketing (1)

Answer 6

1 creating - offers of value
2 communicating - describing the offerings
3 delivering - getting offerings to consumers
4 exchanging - trading value for the offerings

*all activities centered around creating VALUE

Question 7

4 P’s of marketing, aka “marketing mix” (1)

Answer 7

1 product - create offerings
2 promotion - communicate
3 place - deliver
4 price - exchange

Question 8

marketing oriented concept def (1)

Answer 8

marketers seek to satisfy customer wants and needs

*means firm operating this way is market oriented

Question 9

production oriented def (1)

Answer 9

belief that best way to compete is through product innovation and low costs - good products sell themselves

• common in production era
• varies from the customer value drive of market orientation

Question 10

selling oriented def (1)

Answer 10

believe necessary to push products by heavily emphasizing ads and selling
*common in selling era

Question 11

5 reasons why marketing is good to understand (1)

Answer 11

1 enables profitable transactions to occur
2 delivers value
3 benefits society - facilitates trade, creates jobs, and puts knowledge in the hands of consumers
4 marketing costs money
5 offers career opportunities

Question 12

positions available in marketing careers (1)

Answer 12

1 marketing research - studying market and customers
2 merchandising
3 sales
4 advertising
5 product development
6 direct marketing - communicate directly with customer
7 event marketing - special events to interact with customers

Question 13

themes and important trends with marketing (1)

Answer 13

1 ethics and social responsibility
2 sustainability
3 service-dominant logic - value no matter how (service/product)
4 metrics - using technology to track customer wants/happiness
5 a global environment

Question 14

market segmentation def (5)

Answer 14

breaking down all consumers into groups of potential buyers with similar characteristics
*what group will be interested in the same offering?

Question 15

targeted vs mass marketing (5)

Answer 15

• targeted/differentiated - new phenomenon, technology makes customer info gathering simple, use of one-to-one marketing
• mass/undifferentiated - like Ford, expensive

Question 16

segmentation bases def (5)

Answer 16

criteria used to classify buyers, to get a fuller pic of customers and create real value for them

Question 17

4 categories of market segmentation for B2C (5)

Answer 17

1 behavioral - what do people want? Benefit segmentation by what is most important benefit.
2 demographic - age, race, ethnic background. Retro brands target older generation. Focus on customer life span - appeal to young generation. Family life cycle changes.
3 geographic - what do people buy based on location? Geocoding helps track sales by location. Proximity marketing sends alert when near store.
4 psychographic - what do they value?
*innovators - sophisticated take-charge people who like finer things
*thinkers - motivated by ideals look for durable, functional quality
*achievers - committed to career and family, interested in timesaving devices
*experiencers - impulsive and want to look good and have “cool” stuff
*believers - moral codes, favor American products and are loyal customers
*strivers - trendy, impulsively spend as money will allow
* makers - build things, prefer value over luxury and buy basic products
*survivors - loyal to favorite brands

Question 18

consumer insight def (5)

Answer 18

result of using qualitative and quantitative consumer information

Question 19

6 characteristics of an attractive market (5)

Answer 19

1 measurable purchasing power and size
2 good profit potential - market growing and not saturated with competitors
3 able to serve the market segmentation - market is accessible
4 match with marketing capabilities - find the niche
5 ability and resources to compete
6 consistent with firm’s mission

Question 20

multisegment marketing def (5)

Answer 20

targeting multiple groups of diff consumers

*diversification means greater stability

Question 21

concentrated marketing def (5)

Answer 21

very small group of customers

• good for small businesses with small budgets
• niche - even more select, going for big fish in small pond
• microtargeting/narrowcasting - mining data to target market (like elections)

Question 22

positioning def (5)

Answer 22

tailoring your product so it stands out from competitors

*reposition when needed

Question 23

marketing research def (10)

Answer 23

collecting, analyzing, and reporting marketing info that can be used to improve a company’s bottom line
*market research is much narrower than marketing research

Question 24

market intelligence def (10)

Answer 24

competitive intelligence - where marketing research is about a problem at a point in time, market intelligence is ongoing to stay in touch with the marketplace

Question 25

4 components of a marketing information system (10)

Answer 25

1 system for recording internally generated data and reports - sales, clickstream data from website, data mining 2 system for collecting market intelligence on an ongoing basis 3 market analytics software to help managers with their decision making - check competitors' website, tradeshows, asking salespeople, suppliers, customers 4 system for recording marketing research info - resort if company can't find answers to Q's using the above 3 items

Question 26

7 steps in the marketing research process (10)

Answer 26

1 define the problem/opportunity - identify the research objective (goal research is supposed to accomplish) 2 design the research - research design is "plan of attack". Primary data (you collect) and secondary data (already available) 3 design the data collection forms - careful not to mislead surveyee with wording, don't use jargon. Test questionnaire before sending out. Keep it short. 4 specify the sample - define population correctly to avoid sampling error 5 collect the data - can use mystery shopper 6 analyze the data - data cleaning (eliminate duplicates). See if study is valid (tested what it meant to) and reliable (same results over time). 7 write the research report and present its findings - include margin of error

Question 27

5 types of secondary data (10)

Answer 27

1 syndicated research - data companies collect and sell 2 scanner-based research - info from checkout in stores 3 marketing research aggregator - buys reports created by other companies and resells them or parts of them 4 library 5 gov agencies

Question 28

3 types of research design (10)

Answer 28

1 exploratory - used when investigating a problem that hasn't been well defined enough to do an in-depth study, less structure, uses secondary data. Depth interview, focus group, case study (look at how another company solved the problem), ethnography (observe people's habits), projective technique (using word association to find out more) are example. 2 descriptive - gathering hard numbers to answer who, what, when, where, and how. Physiological measurements check involuntary physical responses to marketing. Why usually requires exploratory research to answer. 3 casual - examines cause and effect to answer "what if" Qs. Conduct field experiments (in store) or other test market to see if behavior matches lab.

Question 29

consumer behavior def (3)

Answer 29

considers reasons why - personal, situational, psychological, and social - people shop for products, buy and use them, and dispose of them.

Question 30

6 stages of the buying process (3)

Answer 30

1 need recognition 2 search for product info 3 product evaluation 4 product choice and purchase - decide what you are buying 5 postpurchase use and evaluation of product - possible postpurchase dissonance/buyer's remorse 6 disposal of the product - manufacturer may design it for planned obsolescence

Question 31

low vs high-involvement purchases (3)

Answer 31

* low - is necessary but skips several or all steps of buying decision. Uses routine response behavior (automatic). Impulse buying is unnecessary. * high - carries risk or investment. Uses extended problem solving - many considerations for decision. *limited problem solving - lands somewhere in the middle. You may have some info but look for additional.

Question 32

5 situational factors that affect people's buying behavior (3)

Answer 32

1 physical situation - store layout or location (atmospherics that the retailer controls) 2 social situation - people you know or are trying to impress 3 time situation - time of day, season, time constraints 4 reason for purchase - emergency? Gift? 5 mood - good/bad, feeling poor/frugal?

Question 33

personal factors that affect people's buying behavior (3)

Answer 33

1 personality - openness (to new experiences), conscientiousness (diligence), extraversion, agreeableness, neuroticism (prone to negativity) 2 self-concept - how you see yourself vs ideal self (how you WANT to see yourself) 3 gender - men prefer sites with lot of product pics and women want content 4 age and stage of life - chronological age (actual) vs cognitive (feel) 5 lifestyle - conducting interviews and questionnaires to find out more

Question 34

psychological factors that affect people's buying behavior (3)

Answer 34

1 motivation - where we land on the hierarchy of needs 2 perception - marketing to make products appealing. Use of shock advertising (for notice), subliminal advertising, 3 learning - from experience. Use of operant conditioning (prize in meal). 4 consumer's attitude - fast food, bank bailouts, etc

Question 35

societal factors that affect people's buying behavior (3)

Answer 35

1 consumer's culture 2 subcultures - hispanic, asian, etc. 3 social class - same social, economic, or education status in society 4 reference groups (consumer wants to join) like pro athletes, and opinion leaders (people with expertise) 5 consumer's family - shopping similarities among families, marketing to children as they often research purchases

Question 36

6 characteristics of B2B markets (4)

Answer 36

1 number of products at stake is higher than B2C 2 transactions can be complex 3 more $ at stake, longer to finalize sale 4 demand of strict standards 5 a lot of personal selling 6 demand is derived (based on consumers, not the buyer) and fluctuates, can be joint (demand for complementary products like games with game systems)

Question 37

4 categories of B2B customers (4)

Answer 37

1 producers - produce goods and transform into other goods 2 resellers - resell with no changes 3 governments - largest purchaser of goods and services 4 institutions - nonprofit orgs that buy in huge quantities

Question 38

buying center def (4)

Answer 38

groups of people within orgs who make purchasing decisions (part of the hunt to figure out where to start with B2B trans) *aka buyers, procurement, etc

Question 39

4 people besides buyers who have a say in B2B purchases (4)

Answer 39

1 users - people who use product 2 influencers - may not use product but have experience 3 gatekeepers - people who decide if and when you get access to members of the buying center 4 decider - makes final purchasing decision

Question 40

3 types of B2B buying situations (4)

Answer 40

1 straight rebuy - purchase of same items in same quantities from same vendor 2 new-buy - firm purchases product for first time 3 modified rebuy - buy same type of product with a few changes

Question 41

total cost of ownership/TCO def (6)

Answer 41

amount someone pays to own, use, and dispose of a product

Question 42

product-dominant approach to marketing (6)

Answer 42

products, services, and prices are 3 separate and distinguishable characteristics *best way to capture market share it to crank out the cheapest good

Question 43

service-dominant approach to marketing (6)

Answer 43

product, service, and price are integrated into one offering | *adding value is focus

Question 44

4 general consumer offering categories (categorized by how consumers shop) (6)

Answer 44

1 convenience - consumers don't want to put effort into because they don't see diff between brands. Impulse offerings are related but use no planning at all. 2 shopping - consumers will make an effort to compare and select a brand 3 specialty - are limited and have high margin of profit. Brand recognition is required. 4 unsought - such as towing services, don't shop for until they are needed *1-3 are a three-way product classification system.

Question 45

brand def (6)

Answer 45

name, picture, design, or symbol, or combo of those, used by seller to identify its offerings and to differentiate them from competitors' offerings

Question 46

brand extension def (6)

Answer 46

utilizing an existing brand name or brand mark for a new product category

Question 47

steps for new offering development process (7)

Answer 47

1 idea generation 2 idea screening - concept testing, focus groups, depth interviews 3 feature specification - quality function deployment begins with customer's desired benefits and designs offering to deliver them 4 development 5 testing - alpha (lab) and beta (user) 6 launch (commercialization) 7 evaluation

Question 48

4 phases or product life cycle (7)

Answer 48

1 introduction - marketing costs are higher, must build product awareness, ensure supply can meet demand, set pricing penetration (low) or skimming (high), everyday low pricing (another penetration strategy where low pricing is expected to remain), competitive pricing strategy (pricing like competitors to de-emphasize price and focus on other features) 2 growth - increased sales, more competitors, higher profits, focus on differentiation 3 maturity stage - sales level off, buyers are repeaters vs new, longest of all stages, choose to modify target market, offering, or marketing strategy 4 decline stage - demand is decreased, product is harvested or divested

Question 49

4 strategies of Ansoff Matrix (7)

Answer 49

1 old product/market - market penetration 2 new product/old market - product development 3 new market/old product - market development 4 new market/product - product diversification

Question 50

direct vs indirect channel of marketing (8)

Answer 50

* direct - seller to buyer | * indirect - intermediary present

Question 51

disintermediation (8)

Answer 51

cutting out middleman * upcoming trend today, but risky * internet facilitates this

Question 52

strategic channel alliance def (8)

Answer 52

sharing channels for mutual benefit (like Starbucks in Safeway)

Question 53

physical distribution def (8)

Answer 53

extends beyond transportation to include such important decision areas as customer service, inventory control, materials handling, protective packing, order processing, transportation, warehouse site selection, and warehousing

Question 54

push vs. pull strategy def (8)

Answer 54

push - pushing product to intermediaries as opposed to consumers pull - focus on creating demand for product with consumers

Question 55

intensive, selective, and exclusive distribution (8)

Answer 55

* intensive - sell product in as many outlets as possible (soda) * selective - select outlets in specific locations * exclusive - selling in one or very few outlets

Question 56

supply vs marketing chain (9)

Answer 56

supply includes all companies that are involved, including raw materials *supply chain aka value chain

Question 57

collaborative planning, forecasting, and replenishment (CPFR) (9)

Answer 57

practice where supply chain partners share info and coordinate their operations *trend toward supply chain visibility

Question 58

reverse distribution def (9)

Answer 58

running defective product backward through supply chain

Question 59

3 diff pricing strategies (9)

Answer 59

1 maximize sales - short term and does not maximize profit 2 maximize market share - long term but not necessarily profit 3 maintaining status quo

Question 60

4 factors that affect pricing decisions (15)

Answer 60

1 customers - whether buyers perceive value, how many buyers there are, how sensitive they are to change in price 2 competitors - availability of substitutes 3 economy and gov laws/regs - Robinson-Patman Act limits sellers ability to price discriminate, price fixing, unfair trade laws prevent predatory pricing, bait and switch 4 product costs - must pass the breakeven point (make profit)

Question 61

14 pricing approaches (15)

Answer 61

1 cost-plus pricing - cost+profit to determine price 2 odd-even pricing - not rounding to dollar, being slightly below 3 prestige pricing - higher price to higher quality image 4 price lining - a few price levels but many options on each (like neckties) 5 demand backward pricing - start with price demanded by consumer and build product to match 6 leader pricing - pricing one or more item low to get customers into the store 7 sealed bid pricing - offering to buy or sell products at prices designated in sealed bids (forward/traditional auction, and reverse auction) 8 going-rate pricing - buyer pays same rate regardless of where purchase is made 9 price bundling 10 captive pricing - no substitutes (like concession stands at sporting events) 11 product mix pricing - deciding how to price products that sell together 12 two-part pricing - 2 diff charges customer pay (cell service and data) 13 payment pricing - installments for larger purchases 14 promotional pricing - sale 15 price discrimination - movie tickets, senior menu, etc

Question 62

elements of self-understanding (18)

Answer 62

1 your perceptions 2 self-concept 3 attitudes, beliefs, values 4 self-image (how we see ourselves) and self-esteem (how we feel about ourselves) create self-concept 5 looking-glass self - how we believe others view us

Question 63

selection def and 3 parts (18)

Answer 63

process of sorting competing messages, or choosing stimuli 1 exposure - info we choose to listen to and choose not to 2 attention - focus on one stimulus 3 retention - choosing to remember one stimulus over another

Question 64

Gestalt principles of organization (18)

Answer 64

1 proximity - based on relationship of space to objects 2 continuity - connections between things that occur in sequence 3 similarity - by concepts or shared properties 4 uniformity/homogeneity - concepts or objects are alike 5 figure and ground - emphasis on single item that stands out from its surroundings 6 symmetry - balancing equally 7 closure - use previous knowledge to fill in gaps

Question 65

3 steps in perception process (18)

Answer 65

1 selection 2 organization 3 interpretation

Question 66

4 factors to consider when preparing your speech (20)

Answer 66

1 purpose of speech - to inform, demonstrate, persuade, entertain, or ceremonial speech 2 projected time length 3 appropriateness of topic for the audience 4 your knowledge or the amount of info you can access on the topic

Question 67

nonverbal communication def (21)

Answer 67

gestures and facial expressions, tone of voice, timing, posture and where you stand as you communicate *nonverbal is irreversible

Question 68

9 characteristics of nonverbal communication (21)

Answer 68

1 it is fluid 2 it is fast 3 it can add to or replace verbal communication 4 it is universal 5 it is confusing and contextual 6 can be intentional or not 7 communicate feelings and attitudes 8 it is more believable than verbal communication 9 it is the key to the speaker/audience relationship

Question 69

8 types of nonverbal communication (21)

Answer 69

1 space - between objects and people (territory and personal space) 2 time - value of time 3 physical characteristics 4 body movements 5 touch 6 paralanguage - verbal and nonverbal aspects of speech that influence meaning, including tone, intensity, pausing, and even silence 7 artifacts - forms of decorative ornamentation that are chosen to represent self-concept 8 environment

Question 70

5 finger model of public speaking (22)

Answer 70

``` 1 attention statement 2 introduction 3 body 4 conclusion 5 residual message ```