MKT 300 Exam 2 Study Guide Flashcards

Vocabulary-style flashcards covering key concepts from Modules 2 and 3, including marketing environments, segmentation, B2B demand, consumer behavior theories, and research metrics.

Environmental scanning

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

Proactive response

A strategy in which a firm takes action to influence or change environmental forces to its advantage.

Reactive response

An approach where a firm views environmental forces as uncontrollable and adjusts its marketing strategy to meet them.

Porter’s Five Forces

1. Competitive Rivalry
   How much competition exists between current companies in the industry.

2. Threat of New Entrants
   How easy it is for new companies to enter the industry.

3. Threat of Substitutes
   How easily customers can switch to alternative products or services.

4. Buyer Power
   How much power customers have over prices and businesses.

5. Supplier Power
   How much power suppliers have over businesses and prices.

Main Idea:
The stronger these five forces are, the harder it is for companies in the industry to make profit.

Brand Competitors

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

Demographic Segmentation

Categorizing a market based on population characteristics such as age, gender, income, and education.

Psychographic Segmentation

Dividing a market based on personality characteristics, motives, and lifestyles (including VALS orientations).

Behavioral Segmentation

Segmenting a market based on consumer knowledge, attitudes, uses, or responses to a product.

Needs Segmentation

Segmenting customers based on the specific benefits or solutions they seek from a product.

Undifferentiated Targeting Strategy

A strategy where a firm ignores market segment differences and goes after the whole market with one offer.

Differentiated Targeting Strategy

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

Niche (Concentrated) Targeting Strategy

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

Micromarketing

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 position of products or brands in the minds of consumers relative to competitors.

Value Proposition

The full positioning of a brand—the full mix of benefits on which it is positioned.

Joint Demand

A type of business demand where the demand for two or more items used together in a final product is linked.

Derived Demand

Business demand that ultimately comes from (derives from) the demand for consumer goods.

Acculturation

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

Enculturation

The process by which people learn the requirements of their surrounding culture and acquire values and behaviors appropriate or necessary in that culture.

Reverse acculturation

The process by which a home culture is influenced by the customs and values introduced by a foreign culture.

Evoked (Consideration) Set

A group of brands within a product category that a buyer views as alternatives for a possible purchase.

Compensatory decision making

A model where a consumer evaluates brand options in terms of each relevant attribute and computes a weighted or summated score for each brand.

Cognitive Dissonance

A buyer's doubts shortly after a purchase about whether it was the right decision.

Image-Congruence Hypothesis

The theory that consumers prefer brands that they perceive as having images similar to their own self-concepts.

Theory of Reasoned Action (TORA)

A model used to predict behavioral intention, formulated as $BI = A_{act} + SN$ where BI is behavioral intention, $A_{act}$ is attitude toward the act, and SN is subjective norm.

Reliability

The ability of a research technique to produce nearly identical results in repeated trials.

Validity

The ability of a research technique to measure what it is intended to measure.

Likert Scale

A closed-ended question format that asks respondents to indicate their level of agreement or disagreement with a series of statements.

Semantic Differential Scale

A scale that uses a series of bipolar adjectives (e.g., Good/Bad, Fast/Slow) to measure attitudes toward an object.

BDI (Brand Development Index)

A metric calculated as: (percent of brand sales in a group / percent of the total population that group represents) $\times 100$.

CDI (Category Development Index)

A metric similar to BDI that measures the sales performance of a product category within a specific group relative to that group's size in the population.