Marketing Exam 1

What is the Triple Bottom Line Era of Marketing?

where management seeks to maximize financial, social, and environmental bottom lines

What is Disruptive Marketing

Marketers seeking to understand the consumer and identify what is missing in the marketplace to satisfy the consumer

What is the Consumer Experience?

Consumer Experience, or CX, is the customer’s overall assessment of every interaction the customer has experienced with a business

What is the Production Era of Marketing?

A marketing strategy that is management that is dominated by a production orientation. Philosophy that emphasizes the most efficient ways to produce and distribute products.

Originated at the beginning of the Industrial revolution when demand for products had outstripped supply.

What is the Sales Era of Marketing?

A marketing strategy with a managerial view of the market as a sales function, dominated by selling orientation to move products of out warehouses to reduce inventory.

Heavy emphasis on aggressive promotional activities, aka “the hard sell.”

What is the Relationship Era of Marketing?

A marketing strategy that is focused upon a customer orientation. Emphasizing satisfying customers needs and wants, and marketing ends up playing a more central role.

What is World Trade?

World trade refers to the flow of goods and services among different countries - the value of all the exports and imports of the worlds nations.

What is Countertrade?

This is where countries do not have sufficient cash or credit available, in which firms will then work out trade or barter deals for their products. Accounts for between 20-25% of all world trade.

What is Protectionism?

Government policy of protectionism is when policy sets import quotas, embargoes (temporary blocks) or tariffs (taxes), to restrict competition.

In analyzing the external marketing environment, what are key elements we cannot control?

economic, competitive, technological, political, (only response is via planning)

What are the four types of product decisions?

Straight extension, Product Adaptation, Product Invention, Backward Invention

What is straight extension?

Taking a product with no changes and putting it into the market. Ex: Oreo, same concept in every market with little changes to the actual product.

What is product adaptation?

Taking the product and changing it with consideration to the new market. Ex: Menu changes for McDonalds in different countries.

What is product invention?

Creating a new product to help make the transfer into a new market more valuable. P&G making a new diaper that costs the amount of an egg to make it more appealing to developing markets.

What is backwards invention?

When you take an existing product and defeature it, essentially taking off the bells and whistles of the item. Ex: iPhone 15 to the iPhone SE, or Cars that reduce the amount of features it has to become more affordable

What does competition in the Microenvironment involve?

Consumer decision making at three levels: Discretionary Income, Product Competition, and Brand Competition

What is a sociocultural environment?

Refers to the characteristics of a society, its people, and its cultural values and beliefs.

What is Consumer XENOcentrism?

It is the belief that domestic goods are inferior to foreign ones. Ex: Americans think that Volkswagen is a better car than Ford

What is Consumer ETHNOcentrism?

The belief that domestic goods are superior to foreign ones. Ex: Americans believing that they have better goods than China

What is a mission statement?

A formal statement in the strategic plan that describes the firm’s overall purpose and what it hopes to achieve in terms of it’s customers, products, and resources.

The idea for a mission statement is that it will not be too…

Broad, Narrow, or Shortsighted

What is a situation analysis or an environmental analysis?

The evaluation of the external and internal environment.

What is an internal environment?

the controllable elements inside a firm, their strengths and weaknesses.

examples include: tech/patents, physical facilities, financial stability, supplier relationships

What is an external environment?

elements outside the firm that may affect it.

examples include: economy, competition, changing customer needs, & trends

What are SMART goals?

Specific, measurable, attainable, and sustainable goals overtime

What is a Star in the BCG Growth-Market Share Matrix?

A strategic business unit whose products have a dominant market share in high-growth markets.

What are Question Marks in the BCG Growth-Share Matrix?

A strategic business unit whose products whose products have a low market share in high-growth markets.

What are Cash Cows in the BCG Growth-Share Matrix?

A strategic business unit whose products have a dominant market share in a low growth market.

What are Dogs in the BCG Growth-Share Matrix?

A strategic business unit whose products are in a low growth market have have low market share. Nobody wants them.

What is a SWOT analysis?

An analysis of a SBU’s strengths, weaknesses, opportunities, and threats

What is Return on Marketing Investment (ROMI)?

Revenue generated by investment in a given marketing program divided by the cost of the program at a given level of risk.

Ex: Revenue from investment = 150,000, Cost of the marketing program = 30,000, then ROMI = 5

What is an Internal Company Data System?

Information generated from within the company, often through intranet and marketing dashboards.

What are internal company data systems used for?

Produce reports on sales and marketing activities.

This includes sales records, in which they are commonly accessed by marketers via secure intranets.

What are the steps in the market research process?

1. Define the research problem

2. Determine the research design

3. Choose the method to collect primary data

4. Design the sample

5. Collect the data

6. Analyze and interpret the data

7. Prepare the research report

What does defining the research problem entail?

Specifying the research objectives, Identifying the consumer population of interest, and placing the problem in an environmental context.

What does determining the research design entail?

Determining a plan of attack . A plan that specifes what information we will need to collect and what type of study is needed

What is secondary research?

secondary data that had already existed before the problem at hand, is being used without needing to interact with the collection.

What is primary research?

collecting data from respondents on your own, organizing everything yourself bc the information doesnt exist yet

What is descriptive research?

Systematically investigates a marketing problem, in which conclusions are based on a large representative sample of participants.

What is cross sectional descriptive research?

Using questionaries to systematically collect info from one or more consumer samples at a single point in time

What is longitudinal designs?

tracking changes over time, tracking the same set of consumers at multiple points in time

What is a disadvantage of mail questionnaires?

Many times they take a while to receive respondents, have a low rate of response, are inflexible, and the length of the questionnaires is limited by the interest of the respondent, with a lot of ambiguity with everything.

What does designing the sample mean in the planning process?

It means picking the type of sampling system you will you use: probability or non-probability sampling.

What is probability sampling?

Each memebr of the population has some knwon chance of being included, incredibly randoms sample, and will often recieve accurate results with this when they design them correctly

What is non-probability sampling?

A sample in which personal judgement is used to select respondents, with quota samples

What is CRM?

Customer Relationship Management, meaning getting up close and personal with customers. It captures information about each customer touchpoint

What is a common goal of CRM and what does it mean?

A common goal of CRMS is to strengthen customer relationships. What does that mean? Jack Shit!

What is Augmented Intelligence?

the goal to create systems that operate without humans; systems that make humans better, smarter, and happier by needing more efficient with automatization

Why has digital marketing become an increasingly important element of the marketers toolbox?

It has allowed them track consumer behaviour to respond to digital marketing actions.

What is a solution to determine program effectiveness?

A/B testing, in which a study will be done on one product by changing one characteristic about the product and seeing how consumers respond to it (i.e a web page / email)

Why do corporate IT sources get so tangled and difficult to attain?

systems live in departmental silos, so one group in the company may not share info with the others in the firm, so there is incomplete decision making

what is functional strategy

optimizing the functions of departments

what is operational strategy

the day to day strategy of a company

what is strategic plan

the long term vision