MKTG 350 Test 1 Study Guide

Flashcards covering key concepts from the lecture notes for MKTG 350 Test 1, including marketing definitions, eras, strategy, ethics, macro/micro environment, consumer decision making, and related theories.

What is the marketing definition?

The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Name some core aspects of marketing (exhibit 1.1)

Exchange; product/service; markets/consumers; and the value creation process within the marketing system.

What are the four elements of the marketing mix?

Product, Price, Place, Promotion.

What is value co-creation?

A process where the firm and customers jointly create value through interaction and collaboration.

What do B2B, B2C, and C2C stand for?

Business-to-Business; Business-to-Consumer; Consumer-to-Consumer.

Which era is characterized by a focus on production efficiency?

Production-oriented era.

Which era emphasizes aggressive selling techniques to move products?

Sales-oriented era.

Which era focuses on satisfying customer needs and building long-term relationships (value-based marketing)?

Marketing-oriented or value-based marketing era.

What does CRM stand for?

Customer Relationship Management.

What are the three components of sustainable competitive advantage in marketing strategy (Porter’s generic strategies)?

Cost leadership, differentiation, and focus.

What is the target market?

The group of customers the firm aims to serve with its offerings.

What are the three phases of the strategic marketing process?

Planning, implementation, and control/evaluation.

What does SWOT stand for?

Strengths, Weaknesses, Opportunities, Threats.

What does STP stand for?

Segmentation, Targeting, Positioning.

What are the four BCG portfolio categories?

Stars, Cash Cows, Question Marks, Dogs.

What axes are used in the BCG matrix?

Market growth rate and relative market share.

What is an SBU?

Strategic Business Unit—an autonomous unit with its own strategy.

What is a product line?

A group of related products marketed by the same firm.

Conscious marketing – name the 4 guiding principles.

A higher purpose; stakeholder orientation; conscious leadership and governance; and conscious marketing decision making.

What is marketing ethics?

Moral standards and guidelines for marketing decision making and behavior.

What is corporate social responsibility (CSR)?

A firm’s obligation to act in ways that benefit society, balancing economic, legal, ethical, and philanthropic responsibilities.

Three areas to integrate ethics into marketing strategy (with examples)

Ethics in corporate practice/behavior; ethics in marketing communications; ethics in product development and pricing decisions (examples include truthful advertising, safe products, fair pricing).

Exhibit 4.6 – ethical decision metric

A six-test ethical decision metric used to evaluate marketing decisions.

What are the three components of the immediate environment in marketing?

The company itself; competitors; and corporate partners (suppliers, intermediaries).

Name the six macro-environmental factors.

Cultural, demographic, economic, natural, technological, political/legal.

Give examples of cultural factors in macro-environmental analysis.

Country/regional culture, demographics, generational cohorts, gender roles, ethnicity.

What are green marketing and greenwashing?

Green marketing promotes environmentally friendly products; greenwashing is misleading environmental claims.

Give examples of technological advances commonly cited in marketing.

Digital/mobile technology, AI, automation, data analytics, and e-commerce.

What does the political/regulatory environment include (examples)?

Laws and agencies like FDA, FTC; Sherman Antitrust Act; Robinson-Patman Act.

What are the 5 steps in the consumer decision making process?

Need recognition; information search; evaluation of alternatives; purchase; post-purchase behavior.

What is 'need recognition' in consumer decision making?

The consumer’s realization that a problem or need exists that can be satisfied by a product or service.

What is meant by 'internal and external search'?

Internal search uses memory; external search uses outside information sources.

What is 'perceived or actual risk' in consumer decisions?

Potential negative outcomes the consumer fears when making a purchase (e.g., financial, performance, social, psychological, time risks).

What is a universal set vs. retrieval set vs. evoked set?

Universal set: all possible brands; retrieval set: brands recalled from memory; evoked set: brands considered during the choice process.

What are 'evaluative criteria' and 'determinant attributes'?

Evaluative criteria are the attributes used to compare options; determinant attributes are key attributes that differentiate brands.

What are compensatory and non-compensatory decision rules?

Compensatory: trade-offs across attributes; non-compensatory: a poor score on one attribute can eliminate a brand.

What is 'choice architecture'?

The way options are presented to influence decision making.

What is 'conversion rate' in marketing?

The percentage of prospects who take a desired action (e.g., make a purchase).

What is cognitive dissonance in marketing?

Psychological discomfort after a purchase; firms may reinforce post-purchase to reduce it.

Maslow’s Hierarchy of Needs in marketing

A hierarchy of needs from physiological to self-actualization; marketers use it to understand motivations.

What are the ABCs of attitude?

Affect, Behavior, Cognition.

What are the three types of buying decisions based on involvement?

Routine/Habitual, Limited, and Extended (high involvement).

What is the Elaboration Likelihood Model (ELM) of persuasion?

Two routes to persuasion: Central (high involvement) and Peripheral (low involvement).