MKT 300 Exam 2 Study Guide

Flashcards covering key marketing concepts, processes, and formulas for Exam 2, specifically Modules 2 and 3.

SWOT Analysis

A framework used to analyze a firm's internal Strengths and Weaknesses and external Opportunities and Threats.

Environmental Scanning

The process of collecting information about forces in the marketing environment through observation and secondary sources.

Reactive Response

A passive approach to the marketing environment where a firm adjusts its strategies only after environmental changes occur.

Proactive Response

An active approach to the marketing environment where a firm takes steps to influence or shape environmental forces.

Porter’s Five Forces

A model used to understand the competitive forces in an industry, specifically focusing on factors that influence Competitive Rivalry.

Brand Competitors

Firms that market products with similar features and benefits to the same customers at similar prices.

STP Process

A marketing strategy framework consisting of three steps: Segmentation, Targeting, and Positioning.

Demographic Segmentation

Dividing the market into segments based on variables such as age, gender, income, and education.

Psychographic Segmentation

Dividing a market into different segments based on social class, lifestyle, or personality characteristics.

Behavioral Segmentation

Dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product.

Needs-Based Segmentation

The process of segmenting a market based on the specific benefits or needs customers seek from a product.

Undifferentiated Targeting

A strategy where a firm ignores market segment differences and targets the entire market with one offer.

Differentiated Targeting

A strategy where a firm targets several market segments and designs separate offers for each.

Niche Targeting

A strategy where a firm goes after a large share of one or a few smaller segments or niches.

Micromarketing

The practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments.

Perceptual Map

A visual tool used to display the location of products or brands in the minds of consumers relative to competing products.

Value Proposition

The full positioning of a brand, representing the full mix of benefits on which it is differentiated and positioned.

Joint Demand

Demand for two or more products that are used together to produce a single product.

Derived Demand

Demand for business products that results from or is derived from the demand for consumer products.

Acculturation

The process of learning and adopting the customs and values of a new or foreign culture.

Enculturation

The process of learning the culture in which one is raised.

Reverse Acculturation

The process by which elements of a foreign culture are introduced and adopted into one's home culture.

Corporate Social Responsibility

A business’s concern for the long-term welfare of society and its impact on the environment.

Sustainability

The idea that socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as opportunities to build profits and help the world at the same time.

Global Market Standardization

The production of uniform products that can be sold the same way all over the world.

Licensing

A legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge.

Contract Manufacturing

Private-label manufacturing by a foreign company that allows a domestic firm to enter a global market without building their own facilities.

5-Step Decision-Making Process

The sequence a consumer goes through when making a purchase: problem recognition, information search, evaluation of alternatives, purchase, and post-purchase behavior.

Awareness Set

The set of brands of which a consumer is aware during the information search stage.

Evoked Set (Consideration Set)

A group of brands resulting from an information search from which a buyer can choose.

Compensatory Decision Model

A decision-making model where a consumer allows a high rating on one attribute to make up for a low rating on another.

Non-compensatory Decision Model

A decision-making model where a consumer does not allow attributes to balance each other out; failure on one attribute leads to rejection.

Conjunctive Model

A non-compensatory model where the consumer sets a minimum acceptable cutoff level for each attribute and rejects any brand that falls below any cutoff.

Lexicographic Model

A non-compensatory model where the consumer ranks attributes in order of importance and compares alternatives on the most important attribute first.

Cognitive Dissonance

Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions (buyer's remorse).

Aspirational Reference Group

A group that a person would like to join or be associated with.

Selective Exposure

The process whereby a consumer notices certain stimuli and ignores others.

Selective Distortion

A process whereby a consumer changes or distorts information that conflicts with his or her feelings or beliefs.

Selective Retention

A process whereby a consumer remembers only 그 information that supports his or her personal beliefs.

Image-Congruence Hypothesis

The theory that consumers prefer products and brands that have images that match their self-concepts.

Theory of Reasoned Action (TORA)

A psychological model expressed as $BI = Aact + SN$, suggesting that behavior is influenced by attitudes and subjective norms.

Central-route Processing

A type of information processing where customers are highly involved and focus on the message's core arguments.

Peripheral-route Processing

A type of information processing where customers are less involved and focus on non-content cues like the messenger or visuals.

Primary Data

Information collected for the first time for the specific purpose of answering the research question at hand.

Secondary Data

Data that has been previously collected by someone else for a purpose other than the current one.

Ethnographic Research

The study of human behavior in its natural context, involving observation of behavior and physical setting.

Ordinal Scale

A measurement scale that ranks data in a specific order but does not indicate the magnitude of difference between the ranks.

Ratio Scale

A measurement scale that has a true zero point and allows for the comparison of absolute magnitudes.

Likert Scale

A measurement scale where respondents indicate their level of agreement or disagreement with a series of statements.

Semantic Differential

A measurement scale in which respondents describe their attitude using a series of bipolar adjectives.

Snowball Sample

A sampling plan where initial respondents are selected and then asked to identify others who belong to the target population.

BDI (Brand Development Index)

A measure defined by the formula: $\text{BDI} = \left( \frac{\text{percent of brand's sales in a segment}}{\text{percent of total population in that segment}} \right) \times 100$.