Marketing Exam 3

What is the marketing concept?

A philosophy that organizations should satisfy customer needs while meeting organizational goals.

What is marketing myopia?

A short-sighted focus on products rather than customer needs and benefits.

What is a value proposition?

The bundle of benefits a company promises to deliver to customers.

What is SWOT analysis?

A strategic tool assessing strengths, weaknesses, opportunities, and threats.

What are effective objectives?

Goals that are specific, measurable, achievable, relevant, and time-bound.

What is the Product-Market Growth Matrix?

A framework with market penetration, market development, product development, and diversification.

What are the two key components of marketing strategy?

Selecting a target market and creating a marketing mix.

What are the 4 P’s?

Product, price, place, promotion.

What are market segments?

Groups of consumers with similar needs or characteristics.

Why do marketers segment markets?

To tailor offerings and marketing strategies to specific groups.

What are the steps of STP?

Segmentation → Targeting → Positioning.

What are segmentation variables?

Demographic, psychographic, behavioral.

What are targeting strategies?

Undifferentiated, differentiated, concentrated, micromarketing.

What is positioning?

Creating a distinct place in the consumer’s mind.

What is repositioning?

Changing an existing brand perception.

What is a perceptual map?

A visual representation of consumer perceptions of competing products.

What is involvement?

The level of interest and importance a consumer places on a purchase.

What drives involvement?

Risk, price, personal relevance, social visibility.

What is extended problem solving?

High involvement, extensive information search.

What is habitual decision making?

Low involvement, routine purchases.

What are the stages of the decision-making process?

Problem recognition, information search, evaluation, purchase, post-purchase.

What is marketing-controlled information?

Information from ads, salespeople, and company sources.

What is nonmarketing-controlled information?

Reviews, word-of-mouth, independent sources.

What is a consideration set?

Brands a consumer seriously evaluates.

What are heuristics?

Mental shortcuts used to simplify decisions.

What is cognitive dissonance?

Post-purchase tension; reduced through reassurance.

What is the buyclass framework?

New-task buy, modified rebuy, straight rebuy.

What is primary data?

Data collected for the specific research question.

What is secondary data?

Previously collected data used for new purposes.

What are in-depth interviews?

One-on-one conversations to uncover deep insights.

What are focus groups?

Moderated group discussions.

What are ethnographies?

Observing consumers in natural settings.

What are projective techniques?

Indirect methods to uncover hidden thoughts.

What is neuromarketing?

Measuring brain responses to marketing stimuli.

What are surveys?

Structured questionnaires for large samples.

What are experiments?

Tests manipulating variables to determine cause and effect.

What are articulated needs?

Needs consumers can clearly express.

What are unarticulated needs?

Needs consumers cannot easily verbalize.

What is the Product Life Cycle?

Introduction, growth, maturity, decline.

What is the brand ladder?

Attributes → functional benefits → emotional benefits.

What is the brand value chain?

Brand meaning → brand strength → brand equity.

How does positioning link to the marketing mix?

The mix reinforces the intended brand perception.

What are types of innovations?

Continuous, dynamically continuous, discontinuous.

What are categories of clues?

Functional, mechanic, humanic.

What are pricing objectives?

Profit, sales, market share.

What is price elasticity?

Sensitivity of demand to price changes.

What is elastic demand?

Demand changes significantly with price.

What is inelastic demand?

Demand changes little with price.

What are variable costs?

Costs that change with production volume.

What are fixed costs?

Costs that remain constant regardless of output.

What is the break-even point?

Where total revenue equals total costs.

What is cost-based pricing?

Pricing based on production costs.

What is demand-based pricing?

Pricing based on customer value and willingness to pay.

What is competition-based pricing?

Pricing relative to competitors.

What is price skimming?

High initial price to maximize early profits.

What is penetration pricing?

Low initial price to quickly gain market share.

What is the hierarchy of effects?

Awareness → Knowledge → Desire → Trial → Purchase → Loyalty.

What are the cognitive stages?

Awareness and knowledge.

What are the affective stages?

Desire.

What are the conative stages?

Trial, purchase, loyalty.

How does the hierarchy relate to the funnel?

It mirrors the consumer journey from awareness to loyalty.

What are the three main budgeting methods?

Percentage-of-sales, competitive parity, objective-task.

What is the percentage-of-sales method?

Budget based on a percentage of past or projected sales.

What is the competitive-parity method?

Budget matches competitors’ spending.

What is the objective-task method?

Set a goal, determine tasks, estimate costs.

What makes a big idea?

Simplicity, emotional resonance, truth-based insight, relevance, longevity.

What is a truth-based insight?

A cultural or human tension the brand can speak to.

What are the six elements of the Promotion Mix?

Advertising, Public Relations, Sales Promotion, Personal Selling, Direct Marketing, Digital Marketing Communications.

What is advertising?

Paid, nonpersonal communication by an identified sponsor.

What are media vehicles?

Specific channels like TV, radio, magazines, search ads, display ads, out-of-home, advergaming.

What is Public Relations?

Managing relationships with stakeholders through communication and publicity.

What are key PR activities?

Press releases, internal relations, investor relations, lobbying, sponsorships, guerrilla marketing.

What is sales promotion?

Short-term incentives to encourage trial or purchase.

What are consumer sales promotions?

Coupons, rebates, sampling, contests, premiums, frequency programs.

What are trade sales promotions?

Incentives for wholesalers/retailers like slotting fees and display allowances.

What is personal selling?

One-to-one communication between salesperson and customer.

When is personal selling most appropriate?

For complex, technical, or expensive products.

What is transactional selling?

Focus on immediate sales.

What is relationship selling?

Focus on long-term customer relationships.

What is direct marketing?

One-to-one communication designed to generate a direct response.

Examples of direct marketing

Direct mail, catalogs, infomercials, direct-response TV, mobile marketing.

What is digital marketing communications?

Promotional activities delivered through digital platforms.

What is location-based marketing?

Delivering messages based on geographic location.