Marketing final exam

Exchange

A transaction where two or more organizations or
people give and receive something of value is an
integral part of marketing.

Consumption

The concept is a process that includes issues that influence the consumer before, during, and after a purchase.

Self-concept attachment

The product helps to establish the user’s identity

Nostalgic Attachment

The product serves as a link with a past self.

Interdependence

The product is a part of the user’s daily routine.

Love

The product elicits emotional bonds of warmth, passion, or other strong emotion.

Societal Marketing

Trying to enhance the well-being of consumers and society as a whole.

What is a deterrent to the societal marketing concept?

Short term orientation toward increased market share and quick profits.

Green Marketing

Firms choosing to protect or enhance the natural environment as they go about their business activities.

Social marketing

Used to encourage positive behaviors and discourage negative activities.

Consumer activism

When people use their purchasing power to influence company behavior, social policies, or environmental practices.

Production concept

Assumes consumers are interested primarily in product availability at low prices.

Product concept

Assumes consumers buy the product that offers them the best performance and most features.

Selling Concept

Assumes consumers are unlikely to buy a product unless they are aggressively persuaded to do so.

Marketing concept

Assumes that to be successful a company must determine the needs and wants of specific target marketing and deliver the desired satisfactions better than the competition.

Stars

High-share of high-growth market. Need heavy investment to finance
their rapid growth

Cash cows

High-share of low-growth market. Established SBUs need less investment, pays the bills

Question marks

Low-share of high-growth market. Require a lot of cash to
hold their shareLow-share of high-growth market. Require a lot of cash to
hold their share

Dogs

Low-share of low-growth market, do not promise to be large sources
of cash

Market Penetration

A strategy for company growth by increasing sales of current products to current market segments without changing the product.

Market development

A strategy for company growth by identifying and developing new market segments for current company products.

Product development

A strategy for company growth by offering modified or new products to current market segments.

Diversification

A strategy for company growth through starting up or acquiring
businesses outside the company's current products and
markets

Downsizing

Reducing the business portfolio by eliminating products of business units that are not profitable or that no longer fit the companies overall strategy.

Primary data

Must be relevant, accurate, current, and unbiased and consists of information collected for the specific purpose at hand

Secondary data

Information that already exists somewhere which has been collected
for another purpose.

Exploratory Research Design

A flexible, preliminary investigation used to understand a vague problem, generate ideas, or gain insights when little is known about a topic.

Descriptive Research Design

Generating information to better describe marketing
problems, situations, or markets.

Probability samples

each population member has equal chance of being
included

Nonprobability samples

different costs and time limitations as well as
different accuracy and statistical properties.

paired comparison

direct comparison of stimulus objects (eg asked if they prefer Coke or Pepsi)

rank order

Rank the various products sold in order of preferance.

Constant sum

a market research survey technique that asks respondents to divide a fixed total amount of points (usually 100), money, or percentages among several options, brands, or features based on their preference or importance

Experimental Research

The process of manipulating one or more independent variables and measuring their effect on one or more dependent variables, while controlling for extraneous variables. It allows the researcher to test for cause-and-effect relationships.

Independent variable

Known as treatments: hypothetical cause, experimentally imposed/manipulated, mostly categorical

Dependent variable

effect, measured, typically ocntinuous

Extraneous variables

Controlled, alternative explanations of experimental resultsthat could influence the dependent variable and confound the results of the experiment.

Perception process

A series of steps involving exposure, attention, and interpretation from stimuli; it shapes how individuals understand their environment.

exposure

When a stimulus comes within the range of
someone’s sensory receptors

Absolute threshold

The minimum amount of stimulation that can be detected on a sensory channel.

Differential threshold

The ability of a sensory system to detect changes or differences between two stimuli.

Just noticeable difference

The minimum difference that can be detected between two stimuli.

Weber’s law

The stronger the initial stimulus, the greater the change must be for it to be noticed.

Embeds

Tiny figures that are inserted into magazine advertising.

Attention

The extent to which processing activity is devoted to a particular stimulus.

Perceptual selection

People attend to only a small portion of the stimuli to
which they are exposed

Perceptual vigilance

The tendency of people to be more aware of stimuli that relate to their current needs.

Perceptual defense

The tendency of people to be less aware of
objects that are personally threatening.

Semiotics

The study of signs and symbols and their use or interpretation in communication, particularly in marketing. It explores how meaning is constructed and understood through various forms of representation.

Semiotic Components: Object

The focus of the message

Semiotic Components: Sign

The sensory imagery

Semiotic Components: Interpretant

The derived meaning

Iconic

A sign which resembled the object

Indexical

The sign shares some physical property with the object

Symbolic

Often the object and the sign share common associations.

Behavioral Learning Theories

Assume that learning takes place as the result of external events

Cognitive learning theories

emphasize the role of mental processes in learning, suggesting that behavior is influenced by thoughts, beliefs, and expectations.

Classical Conditioning

Involves learning through association, where a neutral stimulus becomes associated with a meaningful stimulus, leading to a conditioned response.

Conditioned stimulus

A previously neutral stimulus that, after being paired with an unconditioned stimulus, triggers a conditioned response.

Conditioned response

The response to the conditioned stimulus.

Masked branding

Companies hide the product’s true origin to prevent stimulus generalization.

Encoding

Information is entered in a way the system will recognize.

Storage

Knowledge is integrated with what is already in memory

Retrieval

Person accesses the desired informationfrom memory to use it in decision making.

Motivation

A goal-directed desire that influences a person to behave in ways that reduce or eliminate the tension caused by a perceived need.

Approach-Approach Conflict

A psychological conflict that occurs when a person faces two equally appealing choices, leading to a dilemma about which option to pursue.

Avoidance-Avoidance Conflict

A psychological conflict that arises when a person must choose between two undesirable options, creating a challenging decision-making scenario.

Approach-Avoidance Conflict

A psychological conflict that occurs when a person faces a single option that has both appealing and unappealing aspects, making the decision difficult.

Maslow’s Hierarchy of Needs

A theory in psychology proposing that human motivation is based on a hierarchy of needs, starting from basic physiological needs to higher-level psychological needs such as self-actualization.

Utilitarian

Based on reward and punishment

Value-expressive

Relates to the consumer’s central values or self-concept.

Ego-defensive

Protects a person from threats or negative feelings.

Cognitive Dissonance Theory

The psychological theory that suggests individuals experience discomfort when holding conflicting beliefs or attitudes, leading them to adjust their views to reduce tension.

Elaboration likelihood model

A theory that explains how consumers process persuasive information through two routes: the central route, which involves careful consideration, and the peripheral route, which relies on superficial cues.

Segmentation

Dividing a market into smaller groups with distinct needs.

Target market

A sub-group of a larger market chosen as the focal
point for a marketing or advertising campaign

Positioning

Designing and representing a brand in a way that is
distinct in the consumer’s mind

Market segmentation

<span>The process of dividing a market into distinct subsets of consumers with common needs or characteristics, allowing for targeted marketing strategies.</span>

Claritas’ Prizm

Combines geographic data with demographic data to yield richer descriptions of consumers and neighborhoods.

Hard core loyals

Only one brand all the time

Split loyals

Loyal to two or three brands

Shifting loyals

Loyalty from one brand to another

Switchers

Show no loyalty to any brand.

VALS (values and lifestyles)

A market segmentation system that categorizes consumers into 8 basic groups based on two major dimensions, self-orientation and resources.

Undifferentiated (mass) marketing

A marketing strategy that targets the entire market with a single offering, without segmenting the audience into smaller groups.

Differentiated (segmented) marketing

A marketing strategy that targets several market segments with distinct offerings, tailoring products or messages to each segment's specific needs.

Concentrated (niche) marketing

A marketing strategy that focuses on a single market segment, offering a tailored product or service to a specific group of consumers, maximizing engagement and effectiveness.

Positioning

The way the product is defined by consumers on important attributes the place the product occupies in consumers’ minds relative to competing products

Product differentiation

is the process of distinguishing a product or offering from others in the market to make it more attractive to a specific target audience.

People/staff differentiation

The practice of distinguishing a product or service based on the quality, expertise, or customer service of the staff involved, enhancing the overall customer experience.

Channels Differentiation

The practice of distinguishing a product or service based on the various ways it is delivered or made available to consumers, enhancing accessibility and convenience.

Services Differentiation

The practice of distinguishing a service from others in the market by enhancing its features, quality, or customer experience, often to meet specific consumer needs.

Image differentiation

The practice of distinguishing a product or service based on its brand image, reputation, or the overall perception held by consumers, often to create a unique identity in the market.

Perceptual positioning

The strategy of creating a unique image or perception of a brand or product in the minds of consumers relative to competitors, enhancing differentiation.

Benefit positioning

The practice of positioning a product or service based on the specific benefits it provides to consumers, emphasizing how it meets their needs and preferences.

User positioning

The strategy of defining a product's appeal and relevance to specific target user groups, focusing on their needs and preferences to enhance brand connection.

Competitive Positioning

The approach of establishing a brand's market stance relative to its competitors by highlighting its unique advantages and value propositions that set it apart in the marketplace.

A brand

Is a name, term, sign, symbol, or design, or a combination of these, that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors.

Brand Equity

The extent that a consumer holds strong, favorable, and unique associations about a brand in memory

Brand Personality

The set of human characteristics associated with a brand.