MKT midterm

Routine Problem Solving

Which problem solving variation would normally be used to purchase such items as toothpaste, soda, or chewing gum?

Lifestyle and personality

Which of the following are examples of psychographic variables?

define the problem and research objectives

The first step in the marketing research process is to .

Sunbelt

The movement by population to the has lessened the demand for warm clothing and home heating equipment and increased demand for air conditioning.

Syndicated-service research firms

Which of the following types of marketing research firms would best be described as being one that gathers consumer and trade information which they sell for a fee (e.g., Nielsen Media Research)?

two or more parties with unsatisfied needs, a desire and ability to satisfy them, a way tocommunicate, and something to exchange

Which of the following conditions must exist in order for marketing to occur?

Dogs

_ are SBUs with a low share of low-growth markets-they may generate enough cash to sustain themselves, but they do not hold the promise of ever becoming real winners for the firm.

Low growth potential, small market share, and eventually leave marketplace. Strategy options: harvest or divest.

promotion

The element of the marketing mix demonstrated when a company places an ad in the Yellow Pages is:

market

Marketers often use the term to cover various groupings of customers.

50%

In the USA, on an average what percentage of the consumer's dollar goes towards covering marketing costs?

~30%

Approximately what percentage of the US civilian workforce performs marketing activities?

99%

What percentage of American homes have at least 1 TV?

collection of buyers

In a simple marketing system, a "market" is a:

Peter Drucker

Who is famously quoted as saying: "There will always be need for some selling. But the aim of marketing is to makeselling superfluous."

70% to 30% services to goods mix

The U.S. economy today consists of a _ services to goods mix.

target markets

During market segmentation analysis, the marketer identifies which segments present the greatest opportunity. These segments are called .

customer solution, cost, convenience, and communication

The four Ps represent the sellers' view of the marketing tools available for influencing buyers. From a buyer's point of view. each marketing tool is designed to deliver a customer benefit. Robert Lauterborn suggested that the sellers' four Ps correspond to the customers' four Cs. The four Cs are .

Competition

includes all the actual and potential rival offerings and substitutes that a buyer might consider.

transaction

When Bob sells a TV to Roger and receives $400 in cash, a(n) ___ has just occurred.

product, price, promotion, and place

One traditional depiction of marketing activities is in terms of the four Ps. The four Ps are characterized as being _.

consumer markets

Companies selling mass consumer goods and services such as soft drinks, cosmetics, air travel, and athletic shoes and equipment spend a great deal of time trying to establish a superior brand image in markets called .

experience

In response to giant retailers, entrepreneurial retailers are building entertainment into stores with coffee bars,lectures, demonstrations, and performances. They are marketing a(n) rather than a product assortment.

Key Customer Markets

Consumer, Global, Business, Nonprofit/Government

• production concept
• product concept
• selling concept
• marketing concept
• holistic/societal marketing concept

The competing concepts/orientations/philosophies under which organizations have conducted marketing activities include: __. They guide and direct a firm's marketing efforts.

customer orientation

Marketers argue for a in which all functions work together to respond to, serve, and satisfy the customer.

the 4 Ps (product, price, promotion, place)

controllable variables aka

Encyclopedia Britannica-we distribute information.

Which of the following most closely matches a correct market-oriented definition of a business?

Product concept

Under which of the following company orientations would we expect businesses to suffer from "marketing myopia"?

Marketing concept

Under which of the following company orientations does the firm try to achieve its long-term goals by satisfying customer wants and needs.

selling concept

The is practiced most aggressively with unsought goods, goods that buyers normally do not think of buying.

societal marketing concept

The holds that the organization's task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer's and the society's well-being.

selling

The concept holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organization's products.

selling

One of the main differences between the selling and marketing concepts is that, is preoccupied with the need to convert products into cash.

Product concept

Under which of the following company orientations toward the marketplace would we expect to find the "better mousetrap"fallacy?

product

The concept holds that consumers will favor those products that offer the most quality, performance, or innovative features.

40+ age segment

Which of the following age groups is thought to control three-quarters of the country's wealth?

infinite

With respect to the shortage of raw materials, air and water are classified as resources. However, as we know, problems are beginning to plague both our air and water quality.

"traditional"

The household consists of a husband, wife, and children (and sometimes grandparents)

Japan

Which country is known for having 99 percent of its population literate?

Hispanic Americans

Expected to account for a quarter of the U.S. population by 2050, are the fastest growing minority.

subcultures

Each society contains , groups with shared values emerging from their special life experiences or circumstances.

Environmental scanning

_ is the process of continually acquiring information on events occurring outside the organization in order to identify and interpret potential trends.

population

The main demographic force that marketers monitor is(are) .

convenience

If a marketing researcher selects the most accessible population members, he or she would have selected the sampling method.

• questionnaires
• qualitative measures
• mechanical devices

Marketing researchers have a choice of three main research instruments in collecting primary data:

Secondary data

are data that were collected for another purpose and already exist somewhere.

a tachistoscope

Mechanical devices are occasionally used in marketing research. For example, flashes an ad to a subject with an exposure interval that may range from one hundredth of a second to several seconds. After each exposure, the respondent describes everything he or she recalls.

the semantic differential

If a questionnaire designer decides to use a scale that connects two bipolar words wherein the respondent selects the point that represents his or her opinion, the designer is most likely using what is called .

Marketing research

is the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company.

experimental

The most scientifically valid market research is research.

• sampling procedure: how should the respondents be chosen?
• sampling unit: who is to be surveyed?
• sample size: how many people should be surveyed?

After deciding on the research approach and instruments, the marketing researcher must design a sampling plan. This calls for three decisions:

Business mission

The first step in the business unit strategic-planning process deals with which of the following?

Strengths, weaknesses, opportunities, and threats

SWOT stands for:

market-development

If you were the marketing manager of an organization that had chosen growth via current products sold to new markets,your organization would have chosen a strategy.

opening the first McDonald's in China

Assume McDonald's is engaging in a market development strategy. Which of the following actions best illustrates a market development strategy?

industry growth rate.

In the Boston Consulting Group (BCG) model to analyze a firm's strategic business units, or SBUs, the vertical axis reflects the:

cash cow.

Gillette continues to manufacture Liquid Paper correction fluid for use with typewriters even though most of the world uses word processors. It is a small market that has little growth, but Liquid Paper has the largest market share, and Gillette invests no promotional monies in maintaining the declining product. Liquid Paper is an example of a:

Strategic business unit.

Which of the following terms matches to the phrase "it is a single business or collection of related businesses that can be planned separately from the rest of the company"?

marketing plan

The is the central instrument for directing and coordinating the marketing effort.

intensive growth

Market-penetration, product-development, and market-development strategies would all be examples of strategies.

Personality

is a set of distinguishing human psychological traits that lead to relatively consistent and enduring responses to environmental stimuli.

Selective distortion

is the tendency to interpret information in a way that will fit our preconceptions.

Sigmund Freud

assumed that the psychological forces shaping people's behavior are largely from the subconcious, and that a personcannot fully understand his or her own motivations.

choice

When a consumer makes the final decision on which brand to buy, he or she selects a brand from the set.

culture

The fundamental determinant of a person's wants and behavior is the person's .

reference groups

A person's consist(s) of all the groups that have a direct (face-to-face) or indirect influence on his/her attitudes or behavior.

orientation

If a direct mail marketer wished to direct promotional efforts toward the family of , efforts need to be directed toward parents and siblings of the family members.

personality

A person's consistent behaviors or responses to recurring situations is his or her:

Consumer behavior

is the study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants.

Marketing (AMA definition)

is an organizational function and a set off processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

Marketing

"meeting needs profitably"

Marketing management

is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

• goods,
• services,
• events,
• experiences,
• persons,
• places,
• properties,
• organizations,
• information,
• ideas

Marketing people are involved in marketing ten types of entities:

Physical goods

constitute the bulk of production and marketing efforts

Properties
a: real property
b: financial property

___ are intangible rights of ownership of either real estate (a) or stocks and bonds (b).

Industry

collection of sellers

Market

collection of buyers

Satisfaction

reflects a person's judgment of a product's perceived performance

Value

is a central marketing concept

need

state of felt deprivation in a person

wants

'needs' shaped by culture & individual personality.

demand

'wants' backed by purchasing power.

product

Anything that can be offered to a market for attention, acquisition, use or consumption, that might satisfy a want or need.

Market

The set of actual & potential buyers of a product.

• Assess returns from marketing investments
• Create more effective strategies

Marketing officers are under pressure to:

• Better access to info
• Ability to buy over the internet instead of from a physical store
• Avoidance of marketing efforts

Customers are becoming more powerful due to:

Production orientation

focuses on internal efficiency to achieve lower prices for consumers. It assumes that price and easy availability are critical variables in the purchase decision. Works mainly when demand > supply. Mass production, assembly line, etc. Makes more sense in developing countries such as India and China.

Sales orientation

assumes that buyers resist purchasing items that are not essential and that consumers must be persuaded to buy.

• focuses on improving the selling & promotion effort
• used most effectively nowadays for "unsought goods" & for non-profit organizations
• customer satisfaction is often sacrificed
• assumes consumers will not buy enough without selling & promotion.

Marketing orientation

is based on an understanding that a sale predominantly depends on the customer's decision to purchase a product and on the customer's perception of the value of that product.

• The idea that the social and economic justification for an organization's existence is the satisfaction
  of customer wants and needs while meeting organizational objectives.
• Responsiveness to customer wants is the central focus.
• Focuses on customer wants and needs to distinguish products from competition.
• Integrates all organization's activities to satisfy customer wants and needs more effectively than competitors.
• Nowadays used by most well known companies (P&G, IBM, McDonalds, Coca Cola, etc).

Societal/holistic marketing orientation

holds that the firm should strive to satisfy customer needs and wants while meeting organizational objectives and preserving or enhancing both the individual's and society's long-term best interests.

• i.e. less toxic products, more durable products, products with reusable or recyclable materials
• i.e. Dove, McDonald's, Eveready

Product orientation

focuses on improving the product features and quality (i.e. adding more & more functions, attributes, features, etc.).

• "If you build a better mousetrap the world will beat a path to your door."
• Leads to 'marketing myopia".
• Assumes customers favor products offering most quality, performance, etc.
• Other 3 Ps must be designed well

(a/b) production or sales
(c) marketing

Ex. If IBM had a (a) or (a) orientation it might say that its business is to make computers. But with a (c) orientation it might say it is in the business of solving information-handling problems.

Selling Orientation

• Organization's focus is inward on the firm's needs.
• Business is defined by its goods and services
• Product is directed to everybody.
• Primary goal is profit through maximum sales volume.
• Goals are achieved through intensive promotion.

Marketing Orientation

• Focus is outward on the wants and preferences of customers.
• Business is defined by benefits sought by customers.
• Product is directed to specific groups (target markets).
• Primary goal is profit through customer satisfaction.
• Goals are achieved through coordinated marketing.

production

The _ orientation is most likely to work for firms producing generic products that compete almost solely on price.

sales

The orientation is often used with unsought products like life insurance, burial plots, and encyclopedias. The fundamental problem with it is a lack of understanding of the needs and wants of the marketplace.

• Demographic and lifestyle trends
• Economic trends (local, national, and worldwide)
• Socio-Cultural influences
• Natural forces and constraints
• Technological developments
• Political-legal influences

Environmental factors in the macroenvironment that lead to new opportunities and threats. "Non-controllable" forces

• Subsistence economies
• Raw material exporting economies
• Industrializing economies
• Industrial economies

Four types of industrial structures:

• shortage of raw materials
• increased energy costs
• antipollution pressures
• governmental protections

Marketers need to be aware of the threats and opportunities associated with four trends in the natural environment:

• Pace of change
• Opportunities for innovation
• Varying R&D budgets
• Increased regulation

Marketers should monitor the following trends in technology: