MKT 320 Exam 2

Marketers must constantly ______________ to ________________________________.

adapt products and services, the everchanging market

Marketing revolves around _______________________.

the consumer

The marketing which two environments?

The macroenvironment and the immediate environment.

What are the 4 factor’s that affect the consumers’ immediate environment?

Company capabilities, competitors, physical environment, and corporate partners

What is core competency?

Existing knowledge, facilities, patents, etc

What is Company in the immediate (micro) environment?

Successful marketing firms focus on satisfying customer needs that match their core competencies.

What is Corporate partners in the immediate (micro) environment?

Parties that work with the local firm.

What is physical environment in the immediate (micro) environment?

Products and services are influenced by how they are used in the physical environment. This includes energy trends, greener practices, and greenwashing.

What is competitors in the immediate (micro) environment?

Knowing their strengths and weaknesses and what their competitors are doing.

What are the six areas of the macroenvironment?

Culture, Demographics, Political/Legal, Social, Economic, and Technology.

What is Culture in the Macroenvironment?

Shared meanings, beliefs, morals, values, and customs of a group of people.

What is Country culture?

Includes artifacts, behavior, dress, symbols, physical settings, ceremonies, language, differences, colors, tastes and food preferences.

What is regional culture?

culture specific to a geographic area

Halloween is a good representation of what type of culture?

Country

Tea is a good representation of what type of culture?

Regional

How much did consumers spend on Halloween in 2023?

12.2 Billion

How much did consumers spend on Halloween in 2022?

10.6 billion

When did Coffee become popular in the US?

Between 1940 and 1950

When was instant coffee launched by Nescafe?

1938

When was the first Folger’s commercial?

1950

When did Starbucks open?

1971

Specialty coffee consumption has ______ since 2010.

doubled

What are demographics?

Age, gender, income, education, religion, and number of children

What does demographics do?

Provides and easily understood snapshot of the typical consumer in a specific target market.

What is the most common form of segmentation and why?

Demographics, because readily available (age, family size)

What do marketers do with demographic data?

They use it to target offers

What celebrity has an older, female demographic for their beauty company?

Christie Brinkley

What is income tied to?

Purchasing power

How does education affect a consumer market?

Studies show that higher levels of education lead to better jobs and higher incomes.

Income distribution in the US had grown more polarized. Highest-income groups are ______, whereas the middle and lower income groups purchasing power keeps _____.

growing, declining

How does gender affect the consumer market?

Firms need to be careful about gender neutrality in marketing due to shifts in gender roles.

How does race/ethnicity affect the consumer market?

Approximately 80% of all population growth in the next 20 years is expected to come from minority communities. By 2030, the Hispanic population in the US is expected to reach more than 72 million.

How do gender cohorts affect the consumer market?

Different use of technology and media exposure requires different messaging. Different slang.

What years were Gen Alpha born?

2010-2025

What years were Gen 7 born?

1997-2009

What years were Gen Y born?

1981-1996

What years were Gen X born?

1965-1980

What years were Baby boomers born?

1946-1964

What are the social trends impacting the macroenvironment?

Sustainability, health and wellness, and efficient utilization and distribution of food.

What is efficient utilization and distribution of food?

Reducing hunger and food waste

What is an organization that helps with reducing hunger and food waste?

Backpack beginnings, they give backpacks filled with food to hungry kids

What aspects of marketing does technology impact?

All

What are the technology impacts on marketing?

New products and service, new forms of communication, new retail channels, and growing importance of mobile devices

What are technological advances in marketing?

New cutting-edge technology such as Alexa, Artificial intelligence, and Robotics

What are concerns with technological advances in marketing?

Privacy concerns

How does the economic situation affect marketing?

Economy impacts the way consumers by products and services and spend money.

What are major economic factors to monitor?

Inflation, currency changes, and interest rates

Why have prices increased?

Due to COVID-19. Prices have increased due to increased cost of labor, ingredients, and transportation.

How do currency changes affect marketing?

Due to these changes, foreign products may cost less or more for US consumers, depending on fluctuations.

How do firms show sustainability in social trends?

They rely on certification from various agencies, including the Fairtrade mark.

How does health and wellness concerns affect marketing?

Firms are participating in initiatives such as Children’s Food and Beverage Advertising Initiative, which means they commit to only advertising foods that meet certain nutritional standards to children 12 and under.

What is an example of currency changes?

It is cheaper for an American to go to Europe to see a Taylor Swift show than it is to see her in the US. 20% of fans at the Paris show were from the USA.

What are the political and legal aspects?

Firms must understand and comply with legislation regarding fair competition, consumer protection, and industry-specific regulation.

What is one of the most heavily regulated industries politically and legally?

Pharmaceuticals

What does political and legal comprise of?

Political parties, legislations, and government organizations

What is responding to the environment in marketing?

Strategies that respond to environmental forces. Respond quickly and sensitively to consumers.

What is an example of responding to the environment in marketing?

The Red Cross’ donation site for natural disasters.

When was Aquafina created?

1994

When was Dasani created?

1999

What is the #1 brand of bottled water?

Aquafina

Who represented SmartWater from 2007 to 2019?

Jennifer Aniston

Who represents SmartWater currently?

Gal Gadot

What kind of strategy did Coke’s Dasani have?

A reactive strategy and a realistic assessment.

When marketers look at advertising media, they often begin with viewer or listener profiles such as age, gender, race, and income. They then compare the media profile with their target audience. These marketers are using ________ to see if the media “fit” with their advertising agenda.

demographics

Apparel maker Nau works with its ________ to create outdoor and urban apparel from renewable sources.

corporate partners

Generational cohorts are groups of people of the same generation who have similar ________ because they have shared experiences and are in the same stage of life.

purchase behaviors

Marketers in the United States are paying increasing attention to ethnic groups because

approximately 80 percent of all population growth in the next 20 years is expected to come from minority groups.

Political candidates appeal to the different beliefs and values of groups of potential voters in different areas of the country. These politicians are appealing to differences in

regional culture

American Savvy Traveler, a travel blog, provides travelers with background information about people’s beliefs, values, and customs in various parts of the world. The blog educates travelers about a country’s

culture

Which statement is true regarding modern gender roles?

Gender roles have blurred over the last several years.

When considering the use of a radio commercial in Ireland that was designed for U.S. markets, a marketer would likely need to consider which aspect of culture that might be different between the two countries?

language

When Kimberly-Clark introduced rolls of toilet paper without the cardboard core, what social trend did this product respond to?

green marketing

The government has enacted laws that promote both fair trade and competition by prohibiting the formation of monopolies or alliances that would damage a competitive marketplace, fostering fair pricing practices for all suppliers and consumers. These actions are part of the ________ environment of business.

political/regulatory

What does the consumer decision making process require?

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

What is Pumpkin time?

Pumpkin items everywhere, PSL, so on

What is need recognition?

Unsatisfied need/want

What are functional needs?

Performance of a product or service

What is an example of a functional need?

Slippers with a rubber sole to prevent feet from getting wet outside.

What is a psychological need?

Personal gratification

What is an example of a psychological need?

Pretty heels

What is a want?

Desired but not necessarily needed

Search for ______ and _____ sources of information.

internal, external

What is internal search for information?

Buyers examines their own memory or knowledge about the product or service gathered through past experiences.

What is external search for information?

Buy seeks information outside their personal knowledge base to help make the buying decision.

Weight perceived _______ with perceived _______.

benefits, costs

What example was used for power of information search?

See Zendaya on Instagram, like her turtleneck, buy a knock off online.

What is internal locus of control (LOC)?

More search activities, they believe they have some control over outcomes of their actions.

What is an external locus of control?

Fate or external factors

What are the 5 types of actual or perceived risks?

Performance, Psychological, Financial, Physiological, and Social

What is performance risk?

Involves the perceived danger inherent in a poorly performing product or service. (Outfit prone to shrinking when dry cleaned)

What is financial risk?

Monetary outlay and includes the initial cost of the purchase as well as the costs of using the item or service. (Concern for up front cost and any cost to maintain item)

What is social risk?

The fears that consumers suffer when they worry others might not regard their purchases positively. (Ridiculed for outfit)

What is physiological risk?

Also called safety risk, is the fear of actual harm should the product not perform properly (exploding battery)

What is psychological risk?

the way people feel if the product or service does not convey the right image. (Making sure via research and opinions that your outfit looks professional)

What is evaluate alternatives?

Occurs when a consumer is engaged in the process of information search

What is evaluate alternatives: attribute sets?

The minds way of organizing and categorizing alternatives to aid in the decision process.

What are types of attribute sets?

Universal sets, retrieval sets, and evoked sets.

What is a universal set?

All possible choices for a product category. Marketers usually focus on only a subset of a category. (All options)

What is a retrieval set ?

Brands or stores that can be readily brought forth with memory. (Remembered but not necessarily considered)

What is an evoked set?

3-5 brands considered in a category from retrieved memory of universal brands (A brand consumers will consider as an option)