MKT 300 Exam 2 Flashcards

Comprehensive vocabulary flashcards covering Modules 2 and 3 for MKT 300 Exam 2.

Micro factors

Factors close to the company and more controllable, including the company itself, suppliers, marketing intermediaries, customers, and competitors.

Macro factors

Broad, uncontrollable factors including demographic, economic, natural, technological, political/legal, and sociocultural.

SWOT Analysis

A framework where internal factors are Strengths & Weaknesses, and external factors are Opportunities & Threats.

Reactive Environmental Scanning

Collecting information on the marketing environment and responding after a change happens.

Proactive Environmental Scanning

Collecting information on the marketing environment and acting in anticipation of a change before it happens.

Porter's Five Forces

A competitive framework consisting of (1) Rivalry among existing competitors, (2) Threat of new entrants, (3) Threat of substitutes, (4) Bargaining power of suppliers, and (5) Bargaining power of buyers.

Generic Competitors

Competitors that compete for the same discretionary dollars (e.g., movie vs. dinner out).

Form Competitors

Competitors offering a different product form to satisfy the same need (e.g., bus vs. bike).

Industry Competitors

Competitors that operate within the same product category (e.g., all car makers).

Brand Competitors

Competitors offering a nearly identical product or service (e.g., Honda Civic vs. Toyota Corolla).

Segmentation

The process of dividing the market into groups with similar needs.

Targeting

The process of evaluating market segments and choosing which to pursue.

Positioning

Deciding how you want the brand perceived vs. competitors in the target's mind.

Demographic Segmentation

Segmenting a market based on easily measured variables such as age, gender, income, and education.

Psychographic Segmentation

Segmenting a market based on lifestyle, values, and personality.

Behavioral Segmentation

Segmenting a market based on usage rate, loyalty, occasion, or benefits sought.

Needs-based Segmentation

Grouping consumers by the specific need or problem the product solves.

VALS Primary Orientations

The three primary orientations guiding consumers: Ideals (guided by knowledge/principles), Achievement (guided by desire to show success to peers), and Self-Expression (guided by desire for social/physical activity, variety, risk).

Undifferentiated Targeting Strategy

Offering one product/offer for the whole market; cost efficient due to economies of scale, but ignores differing needs.

Differentiated Targeting Strategy

Creating separate offers for multiple segments; provides a better fit and more sales, but is expensive and carries cannibalization risk.

Niche (Concentrated) Targeting Strategy

Directing one offer toward one specific segment; builds deep expertise and strong loyalty, but is risky if the segment shrinks or disappears.

Micromarketing

Tailoring products or services to individuals or local markets; highly personalized, but very costly and hard to scale.

Perceptual Map

A visual plot (usually 2 axes of attributes important to consumers) showing where your brand sits vs. competitors in consumers' minds.

Value Proposition

The sum of benefits a company promises to deliver — explaining why customers should buy from you over competitors.

Joint Demand

Demand for one product that is tied to demand for another, requiring both together (e.g., printers & ink).

Derived Demand

Business demand that comes from ('is derived from') consumer demand downstream (e.g., demand for steel derived from demand for cars).

Inelastic Demand

A demand condition in business markets where price changes do not shift demand much.

New Buy

A first-time business purchase situation, representing the most complex decision.

Modified Rebuy

A business buying situation involving changes to a previous purchase (such as supplier, specs, or price).

Straight Rebuy

A routine business reorder made with little thought.

Culture

The shared values, beliefs, and customs of a whole society.

Subculture

A smaller group within a culture sharing distinct values based on factors such as ethnicity, religion, region, or age.

Acculturation

The process of learning a new or different culture.

Enculturation

The process of learning your own culture growing up.

Reverse Acculturation

The phenomenon where mainstream culture adopts elements of a minority culture or subculture.

Corporate Social Responsibility (CSR)

A business's obligation to be ethical and accountable to all stakeholders, not just shareholders.

Sustainability

Meeting present needs without compromising future generations' ability to meet theirs.

Preconventional Ethical Development

The first level of ethical development, focused on self-interest and avoiding punishment.

Conventional Ethical Development

The second level of ethical development, focused on following social norms and expectations.

Postconventional Ethical Development

The third level of ethical development, guided by personal ethical principles even if they conflict with laws or norms.

Global Market Standardization

Using the same marketing mix worldwide; efficient, but ignores local differences.

Licensing

Giving a foreign company the right to use your brand, patent, or process in exchange for a fee or royalty, without controlling production.

Contract Manufacturing

Hiring a foreign company to manufacture your product while keeping control of marketing, distribution, and branding.

Need Recognition

The first step in the consumer decision-making process, defined as the gap between present state (current situation) and preferred state (desired situation).

Awareness Set

All the brands that a consumer knows of.

Evoked Set

The brands that come to mind for a specific consumer need.

Consideration Set

The brands that a consumer will actually evaluate during the decision-making process.

Compensatory Model

A decision model where a weakness in one attribute can be offset by strength in another attribute.

Non-compensatory Model

A decision model where a weakness cannot be offset, eliminating options that fail on key attributes.

Multi-attribute Model

A compensatory model where you rate each brand on each attribute, weight by importance, and sum scores to select the highest total.

Conjunctive Model

A non-compensatory model where a minimum cutoff is set for every attribute, eliminating any brand that fails to clear all cutoffs.

Lexicographic Model

A non-compensatory model where attributes are ranked by importance and brands are compared on the most important attribute first (moving to the next if tied).

Cognitive Dissonance

Post-purchase doubt or anxiety experienced by a consumer.

Primary Reference Group

A social group characterized by frequent, informal contact (e.g., family, close friends).

Secondary Reference Group

A social group characterized by less frequent, more formal contact (e.g., clubs, coworkers).

Aspirational Reference Group

A group that an individual wants to join or be like.

Non-aspirational (Dissociative) Reference Group

A group that an individual wants to avoid being associated with.

Selective Exposure

The psychological tendency to notice and pay attention only to messages consistent with our existing beliefs.

Selective Distortion

The psychological tendency to twist or interpret information to fit what we already believe.

Selective Retention

The psychological tendency to only remember information that supports our existing beliefs.

Image-congruence Hypothesis

The hypothesis stating that people prefer brands whose image matches their own self-image.

Belief vs. Attitude

Belief is what you think is true about an attribute; Attitude is an overall favorable or unfavorable evaluation.

Central-route Processing

Careful, thoughtful evaluation of message content occurring during high-involvement situations.

Peripheral-route Processing

Processing that relies on cues like source attractiveness or mood rather than message substance during low-involvement situations.

Theory of Reasoned Action (TORA)

A model represented by $BI = A_{act} + SN$, where Behavioral Intention ($BI$) is a function of Attitude toward the act ($A_{act}$) and Subjective Norm ($SN$).

Descriptive Research

Marketing research that describes characteristics such as who, what, when, and where.

Diagnostic Research

Marketing research that explains why something is happening.

Consumer Insight

A deeper understanding of underlying consumer motivations and behavior.

Reliability

The quality of obtaining consistent research results if repeated.

Validity

The extent to which research actually measures what it is supposed to measure.

Representativeness

The degree to which a research sample reflects the true population.

Secondary Data

Data that already exists because it was collected for another purpose.

Primary Data

Data collected specifically for your current research question.

Ethnographic Research

A research method involving observing consumers in their natural environment.

Nominal Scale

The weakest scale of measurement, consisting of labels only.

Ordinal Scale

A measurement scale involving ranked order where the gaps between ranks are not equal or measured.

Interval Scale

A measurement scale with equal gaps between points, but no true zero.

Ratio Scale

The strongest measurement scale, characterized by equal gaps and a true zero (e.g., income, age).

Likert Scale

A closed-ended question format using agree/disagree statements (e.g., 1–5 scale from strongly disagree to strongly agree).

Semantic Differential

A closed-ended question format placing bipolar opposite adjectives on a scale (e.g., Weak 1-2-3-4-5 Strong).

Cluster Sampling

Sampling where the population is divided into clusters (often geographic) and whole clusters are randomly selected.

Stratified Sampling

Sampling where the population is divided into meaningful subgroups (strata) and samples are taken from each.

Quota Sampling

A non-probability sampling method where the researcher ensures a specific number of respondents from each subgroup using non-random selection.

Snowball Sampling

A sampling method where existing subjects recruit future subjects, typically used for hard-to-reach populations.

Judgment (Purposive) Sampling

A non-probability sampling method where the researcher uses their judgment to hand-pick 'typical' or informative subjects.

BDI / CDI Formula

Calculated as \text{Index} = \t{\frac{\% \text{ of category/brand consumption by the group}}{\% \text{ the group represents of total population}}} \times 100.