Midterm

Question 1

What is marketing

Answer 1

is the activity, set of
institutions, and processes for creating, capturing, communicating, delivering, and
exchanging offerings that have value for customers, clients, partners, and society at
large.”
8
What does this definition really mean? Good marketing is not a random activity; it requires thoughtful planning with an emphasis on the ethical implications of
any of those decisions on society in general. Firms

Question 2

Marketing Plan

Answer 2

is a written
document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms
of the four Ps, action programs, and projected or pro-forma income (and other financial) statements.
The three major phases of the marketing plan are planning,
implementation, and control.

Question 3

Idea of exchange in marketing

Answer 3

—the trade of things of
value between the buyer and the seller so that each is
better off as a result.

Question 4

Marketing Mix/ the 4 P’s

Answer 4

Product, Price, Place, Promotion

The four Ps are the controllable
set of decisions/ activities that the firm uses to respond to the wants of its target
markets. But what does each of these activities in the marketing mix entail?

Question 5

Product (4p’s)

Answer 5

Creating value with the product

• by creating a variety of options (ice cream example)
• creating abetter product

Question 6

Price (4p’s)

Answer 6

is about capturing value

everyting the cutstomer is willing to give up to get the product (time/money/energy etc)

Question 7

Place(4p’s)

Answer 7

Delivering the value proposition
all the activities necessary to get the product to the right customer when that customer
wants it.

Question 8

Promotion(4’p’s)

Answer 8

Communicating the value to the customer

Question 9

Production oriented era

Answer 9

Around the turn of the twentieth century, most firms
were production oriented and believed that a good product would sell itself.
Henry Ford, the founder of Ford Motor Co., once famously remarked, “Customers
can have any color they want so long as it’s black.”

concerned with product innovation, not with satisfying the needs of individual consumers,

Question 10

Sales oriented era

Answer 10

the ability to produce outgrew the ability to need or want to consume (great depression and technology in manufacturing) you now had to sell to customers to get them to buy your product

Question 11

Market oriented era

Answer 11

buyers’
market—the customer became king! When consumers again had choices, they were
able to make purchasing decisions on the basis of factors such as quality, convenience, and price. Manufacturers and retailers thus began to focus on what consumers wanted and needed before they designed, made, or attempted to sell their
products and services. It was during this period that firms discovered marketing.

Question 12

Value based marketing era

Answer 12

(modern era) giving greater value to their customers then their competitors did not just finding out what they needed or wanted and giving it to them

Question 13

Value

Answer 13

The benefit to the cost what a customer is willing to give up to get the product

Question 14

relational marketing

Answer 14

Think of you customers in terms of their relationship to the firm

Question 15

Supply chain/ marketing channel

Answer 15

there is marketing along the whole way each company has to market to the ones down the supply chain

Question 16

Marketing Strategy

Answer 16

identifies (1) a firm’s target market(s), (2) a related marketing
mix—its four Ps—and (3) the bases on which the firm plans to build a sustainable
competitive advantage.

Question 17

Sustainable competitive advantage

Answer 17

A competitive advantage that a company can maintain over the long term with out being copied
Acts as a wall around the company

Question 18

4 macro strategies to sustainable competitive advantage

Answer 18

• Customer excellence: Focuses on retaining loyal customers and excellent
customer service.
• Operational excellence: Achieved through efficient operations and excellent
supply chain and human resource management.
• Product excellence: Having products with high perceived value and effective
branding and positioning.
• Locational excellence: Having a good physical location and Internet presence.

Question 19

Planning Phase of markteting plan

Answer 19

define
the mission and/or vision of the business. For the second step, they evaluate the
situation by assessing how various players, both in and outside the organization,
affect the firm’s potential for success (SWOT)

Question 20

Implementation Phase of Marketing Plan

Answer 20

marketing managers identify and evaluate different opportunities by engaging in a process
known as segmentation, targeting, and positioning (STP) (Step 3). They then are responsible for implementing the marketing mix using the four Ps (Step 4).

Determine allocation of resources

Question 21

Control Phase of Marketing Plan

Answer 21

entails evaluating the performance of the marketing strategy using
marketing metrics and taking any necessary corrective actions (Step 5).

Question 22

SWOT

Answer 22

In addition, it should assess the opportunities and uncertainties of the marketplace due to changes in C ultural, D emographic, S ocial,
T echnological, E conomic, and P olitical forces (CDSTEP).

Question 23

STP

Answer 23

Segmentation -dividing up the market in to different segments
Targeting - choosing which segment you would like to persue
Positioning - determine how you would like to be positioned in those markets (defining the marketing mix for your segment)

Question 24

Types of metrics

Answer 24

Performance Objective Metrics- using metrics like sales and profits compare the companies performance overtime or to other companies

Financial Performance Metrics
Portfolio analysis

Question 25

Portfolio analysis

Answer 25

In portfolio analysis, management evaluates the firm’s various products and businesses—its “portfolio”—and allocates resources according to which products are expected to be the most profitable for the firm in the future. Portfolio analysis is typically performed at the strategic business unit (SBU) or product line level of the firm,

Question 26

Boston Consulting Group Matrics

Answer 26

Stars, Dogs, Cash Cows, Question Marks (compares market share and market growth rate)

Question 27

Growth Strategies

Answer 27

Market Penetration Product Development Market Development Diversification

Question 28

Market Penetration Strategy

Answer 28

employs the existing marketing mix and focuses the firm’s efforts on existing customers. Such a growth strategy might be achieved by attracting new consumers to the firm’s current target market or encouraging current customers to patronize the firm more often or buy more merchandise on each visit.

Question 29

Market Development Strategy

Answer 29

strategy employs the existing marketing offering to reach | new market segments, whether domestic or international.

Question 30

Product Development Strategy

Answer 30

offers a new | product or service to a firm’s current target market.

Question 31

Diversification Strategy

Answer 31

, the last of the growth strategies from Exhibit 2.7, introduces a new product or service to a market segment that currently is not served. Can be related or unrelated diversification

Question 32

Ethical Decision Making Framework

Answer 32

Identify issues-> Gather informantion and identify stakeholders->Brainstorm and evaluate alternatives->Choose course of action

Question 33

Tests for ethical Decision making

Answer 33

Publicity Test Moral Mentor Test - would someone I admire do this Admired Observer Test- would I them to see me do this Transparency Test - could I explain why I did this (honestly) Person in the mirror test - would I respect myself for this Golden rule test- do onto others rule

Question 34

Key CSR stakeholders

Answer 34

Employees Customers Society Market Place

Question 35

Marketing Environment Framework (factors that influence the marketing environment)

Answer 35

shows what impacts the customer the most (immediate environment first starting with the company and how they satisfy the customers needs) Customers at the center Surrounded by Immediate environment(Competition, Corporate Parteners, Company) Surrounded By the MacroEnvironment(Culture, Political, legal, social, economic, etc)

Question 36

The Immediate Environment

Answer 36

The companies capabilities and core competencies The competitors Corporate Parterners

Question 37

Macroenvironmental factors

Answer 37

CDSTEP

Question 38

Generational Cohorts

Answer 38

``` Baby Boomers (people born after World War II, 1946–1964) and Generation Yers (people born between 1977 and 2000) both gravitate toward products and services that foster a casual lifestyle; however, they tend to do so for different reasons. The aging Baby Boomers, who grew up with jeans and khakis and brought casual dressing into the business arena, are often trying to maintain their youth. Yers, in contrast, typically wear jeans for status. ```

Question 39

Generation Z

Answer 39

"Digital Natives" | Grew up with technology so deep understanging of it

Question 40

Gen Y

Answer 40

"millennials" Children of the Baby Boomers, this group is the biggest cohort since the original postwar World War II boom. It also varies the most in age, ranging from teenagers to adults who have their own families. 17 Now that Gen Y is entering the workplace, it is becoming apparent that its members have different expectations and requirements than those of other cohorts. Gen Y puts a strong emphasis on balancing work and life—these young adults want a good job, but they also want to live in a location that supports their lifestyle. They also consider marriage secondary, and not obviously necessary, to being good parents themselves. 18

Question 41

Gen X

Answer 41

First generation that grew up with both parent working Although fewer in number than Generation Y or Baby Boomers, 21 Gen Xers possess considerable spending power because they tend to get married later and buy houses later in life. They’re much less interested in shopping than their parents and far more cynical, which tends to make them astute consumers. convenience and tend to be less likely to believe advertising claims or what salespeople tell them. Because of their experience as children of working parents, who had little time to shop, Xers developed shopping savvy at an early age and knew how to make shopping decisions by the time they were teenagers. As a result, they grew more knowledgeable about products and more risk averse than other generational cohorts.

Question 42

Baby Boomers

Answer 42

largest population of 50-plus consumers the United States has ever seen. Although the Baby Boomer generation spans 18 years, experts agree that its members share several traits that set them apart from those born before World War II. First, they are individualistic. Second, leisure time represents a high priority for them. Third, they believe that they will always be able to take care of themselves, partly evinced by their feeling of economic security, even though they are a little careless about the way they spend their money. Fourth, they have an obsession with maintaining their youth. Fifth and finally, they will always love rock ’n roll.

Question 43

Social Trends in America

Answer 43

American society has become a consumer society, and yet the economic impacts of a recession and housing crash have prompted many people to embrace the idea of spending less as a virtuous pursuit. health concerns increasing Going Green Privacy concerns Time Poor society

Question 44

The Consumer Decision Process

Answer 44

Need Recognition->Information Search->Alternative Evaluation->Purchase-> Post Purchase

Question 45

Functional Needs

Answer 45

Pertains to the performance of the product shoes for protecting feet

Question 46

Psychological Needs

Answer 46

pertains to the personal gratification the product gives you heels for feeling good about the way you look

Question 47

Internal Search for information

Answer 47

the buyer examines his or her own memory and knowledge about the product or service, gathered through past experiences.

Question 48

External Search for information

Answer 48

the buyer seeks information outside his or her personal knowledge base to help make the buying decision.

Question 49

Locus of control on information gathering

Answer 49

If a person has an external locus of control they are likely to do less research because they feel that they can't affect the outcome of their decision Internal locus of control would tend to have more of an information search

Question 50

Five types of risk associated with purchase decisions | can that delay or discourage a purchase:

Answer 50

Performance-the risk of buying a product that doesn't work Financial- is risk associated with a monetary outlay and includes the initial cost of the purchase, as well as the costs of using the item or service. Social- the risk of how others might perceive their purchase Physiological- Safety risk with the purchase Psychological-is risk associated with a monetary outlay and includes the initial cost of the purchase, as well as the costs of using the item or service.

Question 51

Attribute Sets

Answer 51

Universal- all possible options Retrieval-ones you think of Evoked- all the alternatives you would consider when makeing a purchase decision

Question 52

Determinate Attributes

Answer 52

The attributes a consumer uses to consider purchase decisions that are important to the buyer

Question 53

Consumer decision rules

Answer 53

are the set of criteria that consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives. These rules are typically either compensatory or noncompensatory.

Question 54

Compensatory decision rules

Answer 54

assumes that the consumer, when evaluating alternatives, trades off one characteristic against another, such that good characteristics compensate for bad characteristics.

Question 55

noncompensatory decision rules

Answer 55

in which they choose a product or service on the basis of one characteristic or one subset of a characteristic, regardless of the values of its other attributes.

Question 56

Multi-Attribute model

Answer 56

Assigning characteristis of products weights and ranks and making decisions based on the weights and ranks of each characteristic (cheerio example)

Question 57

Three possible post-purchase outcomes

Answer 57

Customer Satisfaction- Post-Purchase cognitive dissonance- is an internal conflict that arises from an inconsistency between two beliefs, or between beliefs and behavior. For example, you might have buyer’s remorse after purchasing an expensive TV because you question after all whether a high-price TV is appreciably better quality than a similar size TV at a lower price Customer Loyalty-

Question 58

Things that affect the consumer decision process (4)

Answer 58

marketing mix social factors situational factors psychological factors

Question 59

Maslow's hierarchy

Answer 59

* self actualization * *esteem- confidence/ respect * **love * ***Safety * ****Physiological- food water shelter

Question 60

components of an attitude

Answer 60

cognigive- what we believe to be true affective- emotions or what we feel about the issue at hand behavioral-the actions we take based on what we know and feel

Question 61

Reference Groups

Answer 61

is one or more persons whom an individual uses as a basis for comparison regarding beliefs, feelings, and behaviors.

Question 62

Situational Factors

Answer 62

Purchase Situation - where an what they usually shop for Shopping Situation -factors about what the store might be like (promotions, crowding, lines, etc) Temporal State - state of mind of the consumer

Question 63

Involvement

Answer 63

Is the consumers degree of interest in the product or service

Question 64

Extended Problem Solving

Answer 64

putting a lot of time and effort into making a purchase decision

Question 65

Limited Problem solving

Answer 65

putting a moderate amount of time and effort into a purchase decision (relies more on past experience)

Question 66

Impulse buying

Answer 66

a buying decision made by customers on the spot when they see the merchandise.

Question 67

Derived Demand

Answer 67

the link between consumers demand for a product and the demand that reflects on suppliers for necessary inputs

Question 68

B2B market types

Answer 68

Resellers/wholesalers/distributors Manufacturers/Service providers Institutions Government

Question 69

B2B Buying Process

Answer 69

Need Recognition-> Product specification-> RFP process-> Proposal analysis and supplier selection-> Order specification->Vendor performance assessment using metrics

Question 70

Buying Center

Answer 70

The people responsible for making buying decisions within a company

Question 71

Buying Center ROles

Answer 71

Initiator- person that suggest buying a particular product or service Influencer-people who influence others views in the buying center decider-person that ultimately makes the decision buyer- person that actually handles the purchase user- person that consumes or uses the product gatekeeper- person that controls information or access to decision makers and influencers

Question 72

Organizational culture/ Buying Culture types (4)

Answer 72

autocratic- one person makes decision Democratic- majority rules consensus - reaching a collective agreement consultative- one decision maker that consults with the others

Question 73

Economic analysis using metrics

Answer 73

general economic enviromnet market size and population growth real income

Question 74

Infrastructure and technology analysis

Answer 74

transportation channels communication commerce

Question 75

sociocultural analysis

Answer 75

``` power distance uncertainty avoidance individualism masculiinity time orientation ```

Question 76

Government actions analysis

Answer 76

tarrifs quotas exchange control trade agreement

Question 77

PPP

Answer 77

Purchasing power parity a theory that states that if the exchange rates of two countries are in equilibrium, a product purchased in one will cost the same in the other, if expressed in the same currency.

Question 78

Exchange Control

Answer 78

refers to the regulation of a country’s currency | .

Question 79

Trad agreements

Answer 79

EU NAFTA etc

Question 80

BRIC

Answer 80

Brasil Russia India China (growing powerful countries)

Question 81

Global entry strategies

Answer 81

(in order) Export - Low control low risk Franchising Strategic alliance joint venture (required in some places for entry) direct investment (high control high risk)

Question 82

Reverse Innovation

Answer 82

companies initially develop products for niche or underdeveloped markets, and then expand them into their original or home markets.

Question 83

Glocalization

Answer 83

, some firms also standardize their products globally | but use different promotional campaigns to sell them.

Question 84

STP Process

Answer 84

``` Segmentation{ define strategy and objectives-> pick segmentation methods-> } Targeting{ Evaluate segment attractiveness select target market } Positioning{ Identify and develop positioning strategy } ```

Question 85

Psychographic Segmentation

Answer 85

one that delves into how consumers actually describe themselves. Usually marketers determine (through demographics, buying patterns, or usage) into which segment an individual consumer falls. Psychographics studies how people self-select, as it were, based on the characteristics of how they choose to occupy their time (behavior) and what underlying psychological reasons determine those choices.

Question 86

Benefit Segmentation

Answer 86

Benefit segmentation groups consumers on the basis of the benefits they derive from products or services. Because marketing is all about satisfying consumers’ needs and wants, dividing the market into segments whose needs and wants are best satisfied by the pro d uct benefits can be a very powerful tool.

Question 87

Behavorial Segmentation

Answer 87

divides customers into groups on the basis of how they | use the product or service. Some common

Question 88

Occasion Segmentation

Answer 88

Behavioral segmentation based on when a | product or service is purchased or consumed

Question 89

Geographic segmentation

Answer 89

uses a combination of geographic, demographic, and | lifestyle characteristics to classify consumers.

Question 90

Evaluating Segment Attractiveness

Answer 90

``` Idnetifiable Substantial Reachable Responsive (reacting similarly and positivly to firms offering) Profitable ```

Question 91

Differentiated targeting strategy vs un differentiated

Answer 91

Differentiated (makes different offering to multiple market segments Undifferentiated (everyone is considered a user not used much except for things like basic comodities *salt and sugar*

Question 92

Concentrated Marketing

Answer 92

When an organization selects a single, primary target market and focuses all its energies on providing a product to fit that market’s needs, it is using a concentrated targeting strategy

Question 93

Micro Marketing

Answer 93

a firm tailors a product or service to suit an individual customer’s wants or needs, it is undertaking an extreme form of segmentation called micromarketing or one-to-one marketing (personalized belt)

Question 94

Value Proposition

Answer 94

communicates the customer benefits to be received from | a product or service and thereby provides reasons for wanting to purchase it.

Question 95

Perceptual map

Answer 95

A chart or map that positions a product based on characterists that a consumer percieves with 2 or more dimensions and you can include ideal points on the map where product would like to be for key market segments

Question 96

Marketing Research Process

Answer 96

``` Define research and objective needs-> Design the research-> Data Collection Process-> Analyze data and develop insight-> Action Plan and Implementation ```

Question 97

Syndicated Data

Answer 97

Purchased secondary data

Question 98

Survey Research Structured vs Unstructured

Answer 98

``` Structured ex(rate on a scale of one to 10) unstructured (open ended "tell us about your experience with this product") ```

Question 99

Scanner research

Answer 99

Data collect though transactions ex the scanner at the grocery store