MKT 300 Exam 2 Complete Study Guide

Comprehensive vocabulary flashcards covering marketing environment, SWOT, STP, consumer behavior, research, and B2B concepts for MKT 300 Exam 2.

Marketing environment

Everything affecting a company’s ability to market and sell products.

Microenvironment

Factors close to the company that directly affect daily business operations, such as customers, suppliers, competitors, employees, and distributors.

Macroenvironment

Larger outside forces affecting all businesses, including the economy, technology, politics/laws, culture, demographics, and the environment.

Strengths

Internal positives of a company, such as a strong reputation, loyal customers, or strong finances.

Weaknesses

Internal negatives of a company, such as bad customer service, high prices, or weak marketing.

Opportunities

External positives for a company, such as new technology, market trends, or expanding internationally.

Threats

External negatives for a company, such as new competitors, economic recession, or changing consumer trends.

Reactive Response

When a company responds after something happens, such as lowering prices after losing customers.

Proactive Response

When a company acts before something happens, such as predicting trends early and changing strategy ahead of competitors.

Porter’s Five Forces

A framework used to measure how competitive and profitable an industry is; stronger forces make profit harder to achieve.

Competitive Rivalry

Competition between existing companies, characterized by high numbers of competitors, price wars, and similar products.

Threat of New Entrants

The level of difficulty for new companies to enter an industry; easier entry represents a higher threat.

Threat of Substitutes

How easily customers can switch to alternatives, with more substitutes leading to higher threat levels.

Buyer Power

The amount of power customers have, which is higher when they can easily switch brands or many alternatives exist.

Supplier Power

The amount of power suppliers have over businesses, which is higher when there are few suppliers or unique ingredients are involved.

Generic Competitors

Different products that solve the same problem, such as a movie theater vs. bowling.

Form Competitors

Competitors that provide the same product form, such as Pepsi vs. Coke.

Industry Competitors

Companies within the same industry, such as all fast-food chains.

Brand Competitors

Very similar brands competing directly, such as Nike vs. Adidas.

Segmentation

The process of dividing a market into groups.

Targeting

The process of choosing which market segment to focus on.

Positioning

Creating an image of a brand in the customer’s mind.

Demographic Segmentation

Dividing a market based on who consumers are, including age, gender, income, and education.

Psychographic Segmentation

Dividing a market based on how consumers live, including lifestyle, personality, values, and interests.

Behavioral Segmentation

Dividing a market based on what consumers do, including loyalty, usage, habits, and purchase frequency.

Needs-Based Segmentation

Dividing a market based on what consumers need, such as convenience, quality, speed, or safety.

Ideals-Oriented Orientation

VALS orientation where consumers buy based on beliefs or values.

Achievement-Oriented Orientation

VALS orientation where consumers buy to show success or status.

Self-Expression-Oriented Orientation

VALS orientation where consumers buy for individuality or adventure.

Undifferentiated Targeting Strategy

Providing one message or product for everyone, such as Coca-Cola mass advertising.

Differentiated Targeting Strategy

Providing different products or messages for different groups, such as Toyota marketing different cars to different consumers.

Niche Targeting Strategy

Focusing on one small, specific market, such as luxury vegan skincare.

Micromarketing

Personalized or localized marketing, such as ads targeting a specific neighborhood.

Perceptual Maps

Charts that show how consumers compare brands based on attributes like price, quality, luxury, and performance.

Value Proposition

The reason why customers should choose a product, such as 'Affordable high-quality coffee.'

Positioning Statement

A statement that explains the target customer, market/category, benefit, and competitive advantage.

B2B Marketing

Marketing products or services to businesses instead of consumers.

Derived Demand

Business demand that depends on consumer demand; for example, more car sales leads to more tire demand.

Joint Demand

Demand for products that are used together, such as hot dogs and hot dog buns.

Straight Rebuy

A routine repeat purchase in a business setting.

Modified Rebuy

A repeat purchase in a business setting that involves some changes.

New Task Buy

A completely new purchase for a business.

Reverse Acculturation

A phenomenon where the younger generation influences the older generation's culture.

Sustainability

Meeting current needs without harming the ability of future generations to meet their needs.

Preconventional Ethical Development

The level of ethical development focused on punishment and reward.

Conventional Ethical Development

The level of ethical development focused on following rules and social expectations.

Postconventional Ethical Development

The level of ethical development guided by personal ethics and principles.

Licensing

The granting of permission to use a brand, logo, or patent.

Franchising

A global entry strategy involving sharing a complete business model.

Contract Manufacturing

An arrangement where another company manufactures the product for a business.

Cognitive Dissonance

Regret or anxiety felt after a purchase, typically following an expensive purchase.

Aspirational Groups

Reference groups that consumers want to join.

Selective Exposure

When consumers only notice information they care about.

Selective Distortion

When consumers interpret information to fit their pre-existing beliefs.

Selective Retention

When consumers remember information they agree with or like.

Theory of Reasoned Action (TORA)

A model stating behavioral intention is influenced by attitudes and social norms, represented by the formula $BI = Aact + SN$.

Ethnographic Research

A research method where researchers observe consumers in real-life settings to understand behavior.

Likert Scale

A closed-ended question scale ranging from strongly agree to strongly disagree.

BDI (Brand Development Index)

An index that compares the percentage of a brand's product consumption to the percentage of the population; a value of $100$ is expected.