basic marketing exam 1

What is marketing?

A set of activities involving organizations and processes for creating, communicating, and delivering value for exchanges between shareholders.

What is value in marketing terms?

A function of benefit and cost.

What must be present for an exchange to occur?

At least two parties, each having something of value.

What is production orientation?

A management philosophy focused inwardly on the organization's capabilities.

What characterizes sales orientation?

Aggressive selling techniques, prevalent after World War II.

What is market orientation?

A customer-oriented approach developed in the early '90s focusing on understanding and meeting customer needs.

What does societal orientation consider?

Concerns for the environment and society as a whole.

What are controllable factors in marketing?

Product, price, promotion, and place.

What are uncontrollable factors in marketing?

Customer preferences, economy, technology, competition, and regulations.

What is strategy in marketing?

The managerial process of creating a fit between objectives, resources, and evolving market opportunities.

What is market penetration?

Efforts to increase market shares among existing customers.

What is market development?

Appealing to new customers with existing products.

What does product development entail?

Creating new products for existing customers.

What is product-market development?

Creating new products for new markets.

What is a market?

Potential customers with needs, the ability to buy, and willingness to spend.

What does SWOT analysis stand for?

Strengths, weaknesses, opportunities, and threats.

What is competitive advantage?

Being significantly superior in benefits offered compared to competition.

What is SCA?

Sustainable competitive advantage through patents, copyrights, and research and development.

What are the elements of the marketing mix?

Product, price, promotion, and place.

What does a portfolio matrix help with?

Allocating resources based on market shares and growth.

What does market share indicate?

How dominant a brand is in the market.

What is market growth?

The future potential of a product.

What are 'Stars' in the BCG matrix?

Products with high market share and growth.

What is a 'Problem Child' in the BCG matrix?

A product with high market growth but low market share.

What defines a 'Dog' in the BCG matrix?

Products with low market growth and low market share.

What is a 'Cash Cow' in the BCG matrix?

A product with low market growth but high market share.

What does 'Build' mean in BCG terms?

To invest in a Star or potential Star.

What does 'Hold' refer to in BCG terms?

To maintain current strategies for a Cash Cow.

What does 'Harvest' mean in BCG terms?

To maximize returns from Problem Child or Dog products.

What does 'Divest' mean in BCG terms?

To stop production or sales of Problem Child or Dog products.

What is a target market?

Different groups that a company appeals to.

What is niche positioning?

Focusing on a small market segment.

What are the 5 steps to decision making in consumer behavior?

Identify needs, info search, evaluate alternatives, purchase, and post purchase.

What are Maslow's Hierarchy of Needs levels?

Physiological, safety, social, esteem, and self-actualization.

What are the two types of info search?

Internal (memory/past experience) and external (marketing-driven/non-marketing-driven).

What is cognitive dissonance?

Mental uneasiness after a purchase.

What is CLV?

Customer Lifetime Value, a score businesses assign to customers.

What is routine decision making?

Purchasing with minimal thought, e.g., buying eggs or milk.

What is limited decision making?

Purchasing with some thought involved.

What is extensive decision making?

Putting significant effort into making a purchasing decision.

What factors influence decision making?

Cost (time/money), consequentiality, and involvement.

What are the factors influencing customer behavior?

Cultural, social, individual, and psychological factors.

What are cultural factors?

Shared sets of beliefs and values.

What are social factors?

Family, reference groups, and opinion leaders.

What individual factors affect customer behavior?

Gender, age, life cycle, personality, self-concept, and lifestyle.

What are psychological factors?

Mind-related factors, including selective attention and selective retention.

What is a market segment?

A subgroup within a market sharing similar characteristics and preferences.

What is market segmentation?

The process of dividing a market into identifiable and meaningful groups.

What are criteria for good segmentation?

Identifiable, measurable, accessible, and responsive.

What are the bases of segmentation?

To increase profit and serve customer needs.

How do you accomplish market segmentation?

Using demographics, geographic factors, psychographics, benefits sought, and usage rates.

What are demographics in segmentation?

Characteristics like age, ethnicity, race, gender, income, and education level.

What are psychographics?

Personality, lifestyle, and geo-demographics.

What is an undifferentiated target market strategy?

One product aimed at everyone.

What is multiple segment/brand strategy?

Dividing the market into subgroups and offering different products or brands.

What are the advantages of an undifferentiated strategy?

Lower marketing and production costs.

What are the disadvantages of an undifferentiated strategy?

Needs may not be met optimally.

What are the advantages of a multiple segment strategy?

More customized offerings for different segments.

What are the disadvantages of a multiple segment strategy?

Brand cannibalization and higher expenses.

What does positioning refer to?

How a brand is perceived by consumers.

What is repositioning?

Attempts to change customer perception of a brand.

What is a perceptual map?

A visual representation of how different brands compare on various dimensions.