Rutgers Morgan Marketing Exam 1 2026

What is marketing?

Creating, communicating, delivering, and exchanging offerings that provide value to customers, organizations, stakeholders, and society.

How is marketing different from advertising and selling?

Marketing is the broader process of discovering and satisfying needs; advertising and selling are only parts of it.

What four conditions are required for marketing to occur?

Two or more parties with unmet needs; desire and ability to satisfy them; a way to communicate; something to exchange.

What is exchange?

Trading things of value between a buyer and seller so both are better off.

What is a target market?

The specific group or groups an organization directs its marketing program toward.

What are the four Ps of the marketing mix?

Product, price, promotion, and place.

What is customer value?

The combination of benefits received for a particular price.

What is relationship marketing?

Building long-term relationships with customers, employees, suppliers, and partners for mutual benefit.

What is the marketing concept?

Satisfy consumer needs while achieving organizational goals.

What is market orientation?

Continuously collect customer-needs information, share it across departments, and use it to create value.

What is CRM?

Identifying prospective buyers, understanding them, and developing favorable long-term perceptions so they choose the organization.

What is the societal marketing concept?

Satisfy customer needs in a way that also supports society's well-being.

What is strategy?

A long-term course of action to deliver a unique customer experience while achieving goals.

What are the three organizational strategy levels?

Corporate (whole company), strategic business unit/SBU (division), and functional (departments).

What is a mission statement?

A statement describing an organization's purpose or function in society.

What are core values?

Fundamental, enduring principles that guide an organization.

What is organizational culture?

Shared values, ideas, and norms within an organization.

What is a core competency?

A special capability an organization performs especially well.

What is a point of difference?

An attribute that makes a product superior to substitutes or competitors.

What is a marketing plan?

A roadmap for marketing actions over a period of time.

What is a business plan?

A roadmap for the entire organization.

What is a marketing dashboard?

A visual display of key information used to monitor a marketing objective.

What is a marketing metric?

A quantitative measure of the value or trend of a marketing action or result.

How do you calculate dollar sales?

Average price × quantity sold.

How do you calculate dollar market share?

Company sales in dollars ÷ total industry sales in dollars.

What is situation analysis?

Assessing where a firm has been, where it is now, and where it is headed, including customers, competitors, competencies, and trends.

What does SWOT stand for?

Strengths, Weaknesses, Opportunities, and Threats.

What is the BCG growth-share matrix used for?

Analyzing business units/products by market growth rate and relative market share.

What are the four Ansoff/diversification strategies?

Market penetration, product development, market development, and diversification.

What are the three phases of the strategic marketing process?

Planning, implementation, and evaluation.

What are the five environmental forces?

Social, economic, technological, competitive, and regulatory.

What is environmental scanning?

Continually collecting information about outside events to identify and interpret trends.

What are social forces?

Demographic characteristics and culture.

What are demographics?

Population characteristics such as age, gender, ethnicity, income, and occupation.

What is culture?

Learned, shared values, ideas, and attitudes.

What is multicultural marketing?

Marketing that reflects different groups' attitudes, ancestry, communication preferences, and lifestyles.

What is value consciousness?

Seeking the best quality, features, or performance for a given price.

What is the economic force?

Income, expenditures, and resources that affect costs for businesses and households.

What is GDP?

Gross domestic product; a measure of economic output.

What is inflation?

A general rise in costs and prices.

What is disposable income?

Income remaining after taxes, available for necessities and other spending.

What is discretionary income?

Income remaining after taxes and necessities.

What is a technological force?

New possibilities created by inventions and applied science or engineering.

What is competition in marketing?

Alternative firms that could satisfy a market's needs.

What is pure competition?

Many sellers offering similar products.

What is monopolistic competition?

Many sellers offering substitutable products within a range of prices.

What is an oligopoly?

A market where a few sellers control most sales.

What is regulation?

Restrictions that state or federal laws place on business conduct.

What is consumer behavior?

Actions involved in buying and using products, plus mental and social processes before and after purchase.

What are the five stages of the purchase decision process?

Problem recognition, information search, alternative evaluation, purchase decision, and postpurchase behavior.

What is problem recognition?

Recognizing a need or gap between the ideal and actual situation.

What is internal information search?

Searching one's own memory and experience.

What is external information search?

Seeking information from personal, public, or marketer-dominated sources.

What is alternative evaluation?

Comparing options using evaluative criteria and narrowing the consideration set.

What is a consideration set?

The group of alternatives a consumer seriously considers.

What is postpurchase behavior?

Evaluating the purchase, leading to satisfaction or cognitive dissonance.

What is cognitive dissonance?

Anxiety or doubt after making a purchase.

What is extended problem solving?

High involvement; many brands and attributes, with extensive search time.

What is limited problem solving?

Medium involvement and a moderate amount of search.

What is routine problem solving?

Low involvement; usually one brand and minimal search time.

What are the five situational influences?

Purchase task, social surroundings, physical surroundings, temporal effects, and antecedent states.

What are Maslow's hierarchy levels in order?

Physiological, safety, social, esteem/personal, and self-actualization.

What are physiological needs?

Basic needs such as food and water.

What are safety needs?

Needs for protection and security.

What are social needs?

Needs for belonging, love, and connection.

What are esteem needs?

Needs related to status and respect.

What is self-actualization?

Realizing one's full potential.

What is selective exposure?

Noticing only some messages.

What is selective comprehension?

Interpreting information to fit existing beliefs.

How can marketers reduce perceived risk?

Use seals of approval, endorsements, free trials, detailed instructions, and warranties.

What is market segmentation?

Grouping prospective buyers with common needs who respond similarly to marketing actions.

What is product differentiation?

Marketing actions that make consumers perceive a product as different and better.

What is the 80/20 rule?

About 80% of sales come from 20% of customers.

What is geographic segmentation?

Dividing markets by region, climate, city size, or density.

What is demographic segmentation?

Dividing markets by age, income, gender, education, or race.

What is psychographic segmentation?

Dividing markets by lifestyle, values, or personality.

What is behavioral segmentation?

Dividing markets by benefits sought, product features, or usage rate.

What are the five steps in segmenting and targeting?

Group buyers; group products; build a market-product grid and estimate sizes; select target markets; take marketing actions.

What criteria help SELECT target markets?

Market size, expected growth, competitive position, cost to reach, and organizational fit.

What is product positioning?

The place a product occupies in consumers' minds relative to competitors on important attributes.