ADM 2320 - Midterm Prep set

What is a marketing strategy?

A marketing strategy identifies:

A firm's target market

A related marketing mix (4Ps)

The basis for a sustainable competitive advantage

What is a sustainable competitive advantage (SCA)?

An advantage that:

Is not easily copied

Can be maintained long term

Acts like a protective "wall" around the firm.

What are the three phases of the marketing plan?

Planning

Implementation

Control

What happens in the Planning Phase?

Define mission

Conduct SWOT

STP (Segmentation, Targeting, Positioning)

What is a mission statement?

A broad description of the firm's objectives and scope of activities.

What is a SWOT analysis?

Internal:

Strengths

Weaknesses

External:

Opportunities

Threats

What is the difference between internal and external factors?

Internal = controllable

External = uncontrollable

What does CDSTEP stand for?

Macroenvironment factors:

Culture

Demographics

Social trends

Technological advances

Economic situation

Political/legal environment

What is culture in marketing?

Shared meanings, beliefs, values, and customs transmitted through society.

Why do demographics matter?

They describe population characteristics (age, income, education) and help identify target markets.

What is segmentation?

Dividing the market into groups of consumers with different needs, wants, or characteristics.

What is targeting?

Evaluating segments and deciding which ones to pursue.

What is positioning?

Designing the marketing mix so customers have a clear, distinctive understanding of the brand vs competitors.

What are common segmentation bases?

Demographic

Geographic

Psychographic

Behavioral

What are the 4Ps?

Product Price Place Promotion

What is product in marketing?

Anything offered to satisfy a need or want and create value.

What is price in marketing?

The value customers are willing to exchange for a product (based on perceived value).

What is place in marketing?

How the product is delivered and made accessible to customers.

What is promotion?

Communication tools used to inform and persuade customers (IMC).

What is IMC?

Integrated Marketing Communications — coordinated use of advertising, PR, sales promotion, personal selling, direct & social media marketing.

What are the four ways firms create customer value?

Customer excellence

Operational excellence

Product excellence

Locational excellence

What is customer excellence?

Retaining loyal customers through service, CRM (customer relationship management), and value-based strategies.

What is operational excellence?

Efficient supply chains and cost control.

What is product excellence?

High-quality products with strong branding and positioning.

What is locational excellence?

Competitive advantage based on location.

What is market penetration?

Existing product → Existing market

Increase usage, frequency, loyalty.

What is market development?

Existing product → New markets.

What is product development?

New product → Existing market.

What is diversification?

New product → New market.

What are the five stages of the consumer decision process?

Need recognition

Information search

Evaluation of alternatives

Purchase

Postpurchase

What is need recognition?

When consumers realize a gap between their current state and desired state.

What is internal vs external search?

Internal = memory

External = outside sources (reviews, Google)

What are attribute sets?

Universal set (all options)

Retrieval set (remembered)

Evoked set (considered)

What is a compensatory decision rule?

Good attributes compensate for bad ones.

What is a non-compensatory decision rule?

One bad attribute eliminates the option.

What are heuristics?

Mental shortcuts (price, brand, presentation).

What are the three postpurchase outcomes?

Satisfaction

Cognitive dissonance

Loyalty (or disloyalty)

What is cognitive dissonance?

Buyer's remorse, especially for expensive or risky purchases.

What is conversion rate?

Percentage of consumers who intended to buy and actually purchased.

What is marketing research?

Collecting and analyzing data to make informed marketing decisions.

What are the 5 steps of marketing research?

Define objectives

Design research

Collect data

Analyze data

Develop action plan

What is secondary data?

Data already collected for another purpose.

What is primary data?

Data collected specifically for the current research problem.

Difference between qualitative and quantitative research?

Qualitative = exploratory, open-ended

Quantitative = structured, statistical

What is big data?

Extremely large datasets requiring advanced analytical tools.

What is marketing analytics?

Using advanced technology and models to analyze large data sets for strategic decisions.