Mtkg 351 Exam 1

What is the definition of marketing?

the art and the science of acquiring and retaining profitable customers

How is marketing an art?

some types of marketing require an artistic flare such as logos, tv commercials, or billboards

How is marketing a science?

marketers use data and psychology to make decisions such as kroger giving specific coupons based on the items you buy

Who engages in marketing?

everyone

What are the four P’s of marketing?

product, price, place, promotion

How does marketing create value to customers and firms?

through the product

How does marketing capture value for customers and firms?

through the price

How does marketing deliver value for customers and firms?

through the place

How does marketing communicate value for customers and firms?

through the promotion

What are the four marketing management philosophies?

production, sales, market, and societal market orientations

What does production orientation say?

“Let’s do what we are already good at”

What does sales orientation say?

“Let’s maximize sales volume (whether the customer needs it or not)”

What does market orientation say?

“Let’s determine what customer wants and needs and deliver it to them”

What does societal market orientation say?

“Let’s do what’s good for society regardless of what customers want”

What are some possible careers in marketing?

professional sales, digital and social media management, marketing communications, marketing research and analytics 

What are the four strategies that firms can adopt to create value for customers?

customer excellence: best customer service

operational excellence: best cost

product excellence: best quality or unique product

locational excellence: most convenient location

What is an example of customer excellence?

statefarm

What is an example of operational excellence?

walmart

What is an example of product excellence

under armour

What is an example of locational excellence?

redbox

What is the definition of marketing strategy?

target market + the four Ps

What are the four product types in the Boston consulting group (BCG) matrix?

stars: high market growth rate and high relative market share

question marks: high market growth rate and low relative market share

cash cows: low market growth rate and high relative market share

dogs: low market growth rate and low relative market share

What is an example of a BCG matrix star?

iPhone when it first came out, coca cola gold sweet tea

What is an example of a BCG matrix cash cow?

iPhones now, classic coke and diet coke

What is an example of a BCG question mark?

coca cola fairlife protein milk

What is an example of a BCG dog?

samsung VCR, coca cola life

What are the four product growth strategies?

market penetration, product development, market development, diversification

What does market penetration have?

current markets and current products and services

What does product development have?

current markets and new products and services

What does market development have?

new markets and current products and services

What does diversification have?

new markets and new products and services

What is an example of market penetration?

new social media campaign

What is an example of product development?

apple ipad

What is an example of market development?

ford mustang to germany

What is an example of diversification?

ford launching smart phones in south africa

What are the components of SWOT analysis?

strengths and weaknesses (internal factors), opportunities and threats (external factors)

What are immediate environmental factors to consider when formulating a marketing strategy?

company, competition, corporation partners

What are macro environmental factors to consider when formulating a marketing strategy?

culture, demographics, social (could be environmental), technology, economic, political/legal

What are the phases of a marketing plan?

planning phases, implementation phase, control phase

What are the components of the planning phase of a marketing plan?

business mission and objectives, situation analysis (SWOT)

What are the components of the implementation phases of a marketing plan?

identify opportunities (segmentation, targeting, positioning), implement marketing mix (product, price, place, promotion)

What are the components of the control phase of a marketing plan?

evaluate performance using marketing metrics

What are ethics?

unwritten rules we have developed for our interactions with others

What are morals?

rules people develop as a result of cultural values and norms

What are examples of ethics in business?

obligations to be honest with customers, being a force for social good instead of social harm, environmental sustainability

What are the different factors ethical decisions are based on?

extent of existing ethical problems in business

top management’s actions on ethics

potential magnitude of the consequences

social consensus

probability of a harmful outcome

length of time between a decision and the onset of consequences

number of people to be affected

What is the main point of stockholder theory?

says that social responsibility is paying attention to the interest of every affected stakeholder in every aspect of the firms operation 

Who are the various stakeholders of a firm?

employees, management, customers, local community, suppliers, owners/stockholders

What are the arguments for corporate social responsibility?

being socially responsible can bring more profit

What are the arguments against corporate social responsibility?

it is an individual’s job to improve society, not businesses

What is cause-related marketing?

for-profits marketing efforts that targets social or charitable cause

What benefits does cause-related marketing potentially have for firms?

can help create a positive brand image and stimulate sales

What is the order from top to bottom of the pyramid of corporate social responsibility?

philanthropic responsibilities (be a good corporate citizen), ethical responsibilities (be ethical), legal responsibilities (obey the law), economical responsibilities (be profitable)

What motivates companies to expand globally?

untapped market potential outside of home country

crowded markets at home

excess inventory

identify a unique market opportunity abroad

response to competitors

cost-controls

What is standardization?

unified marketing strategy across national boarders

What is adaptation?

marketing strategy changes from market to market

What are the factors included in the global external environment?

culture, economic factors, the global economy, demographics, natural resources, political structure and actions

What is the CAGE framework?

culture distance, administration distance, geographic distance, economic distance 

What are the five foreign entry modes?

exporting, licensing and franchising, contract manufacturing, joint ventures, foreign direct investment

How are the five foreign entry modes listed in order from least control over marketing decisions and least financial risk to the firm to most?

exporting, licensing and franchising, contract manufacturing, joint ventures, foreign direct investment

What options do global marketers have when it comes to determining product features and benefits in new foreign markets?

international product strategies (same, similar, new) and packaging changes

What are the considerations marketers should take into account when developing promotional campaigns in other countries?

cultural equivalence (prom king/queen), translation issues (slang, unfortunate associations, contradictions, mispronunciations, lost in translation), or at minimum local language and customs

What are the considerations marketers should take into account when developing pricing strategies in other countries?

economic and behavioral considerations, consumers’ willingness to pay, consumers’ ability to pay (consumer savings, income and income growth)

What is bottom of the pyramid?

three billion people who live on less than $2.50 per day

Does lack of income mean people won’t buy?

no

What is purchasing power parity (ppp)?

how much the exact same amount of money will buy from one market to another based on the cost of living and the cost of consumer goods and services

What are the major “place” (i.e. marketing channels and supply chain issues) marketers need to consider when entering a new foreign market?

finding local distributors, transportation and telecommunications infrastructure

How does finding local distributors relate to entry into a new market?

usually a key aspect of successful market entry, they understand the local market, laws, and infrastructure

How can global market “place” challenges drive innovation?

lessons learned from challenges abroad can provide innovation at home

What are the steps in the consumer buying process?

need recognition, information search, alternative evaluation, purchase and consumption, and post-purchase

What are utilitarian needs?

useful things, tools

What are hedonic needs?

things for fun, toys

What is consumer involvement?

the amount of time and effort a consumer spends in the buying process

What factors determine the level of a customer’s involvement?

previous experience, interest, perceived risk of negative consequences, social visibility

What are the factors involved in the consumer decision journey?

cultural factors, social factors, individual factors, phycological factors

What are cultural factors?

cultural and values, subculture, social class

What are social factors?

reference groups, opinion leaders, family

What are individual factors?

gender, age and household lifestyle stage, personality, self concept, and life style

What are phycological factors?

perception, motivation, learning, beliefs and attitudes

What are the levels of maslow’s hierarchy of needs from bottom to top?

physiological needs, safety needs, love and belonging, esteem, self actualization

What is business marketing (B2B)?

marketing goods to organizations or individuals for purposes other than personal consumption

What are the different categories of business consumers?

producers, resellers, governments (B2G), institutions and nonprofits

What are the differences in B2B and B2C markets?

relationship with customers (stronger in B2B)

number of customers (higher in B2C)

number of purchase volume (higher in B2B)

concentration of customers

nature of buying process (B2B more formal & complex)

complexity of the distribution structure (higher in B2C)

primary promotion method

What roles make up the buying center?

initiator, influence, gatekeeper, decider, purchaser, users

Why are the roles in the buyer center important?

because businesses usually have a team of individuals involved in major purchases and understanding their team can help you tailor your personal selling and overall marketing efforts

What is the gatekeeper of the buying center?

controls access to key participants in the process

What is the influence of the buying center?

individuals in and out of the company that affect decisions

What is the user of the buying center?

the actual consumer of the product

What is the most important role in the buying center?

the decider

What are the three types of buying situations?

straight rebuy, modified rebuy, new purchase

What is straight rebuy?

buyer reorders existing product or service from list of acceptable suppliers

What is modified rebuy?

users, influencers, or deciders, want to change product specs, price, delivery schedule, or supplier; item purchased largely same

What is new purchase?

firm is first-time buyer of product/service; greater risks so buying center enlarged to include all with stake in new buy

How would each buying strategy change a firms approach to marketing to a client?

as you go up the list (new purchase, modified rebuy, straight rebuy) you put in less customized or personalized attention 

What is segmentation?

seeks to find one or more factors about members of a heterogeneous (diverse) market that allows for dividing of the market into smaller, more homogeneous (same) subgroups

What is targeting?

evaluating the market segments, then making decisions about which among them is most worthy of investment for development

What is positioning?

how customers see your products as being different than (or the same as) competing products

What makes a promising marketing segment?

responsive segment, substantial segment, accessible segment, identifiable segment

What makes a responsive segement?

needs to respond differently to the marketing mix than other subgroups

What makes a substantial segment?

has to have potential for profitability and has to have a sufficient number of people