Marketing exam 1 study guide

ba 370 sdsu

Product

creates value. Responsible for satisfying customer needs

Price

captures value. Everything the buyer gives up (money, time, and/or energy) in exchange for the product

Place

delivers value. Represents all the activities necessary to get the product to the right customer when that customer wants it

Promotion

communicates value

What are the 4 P’s aka the Marketing mix?

Product, Price, Place, Promotion

What is the definition of marketing?

the activity, set of institutions, and processes to create, capture, communicate, and deliver value

What is C2C?

when consumers sell to other consumers like on ebay or etsy

Know the different marketing eras: Production-oriented era

around the turn of the 20th century, most firms were production oriented and believed that a good product would sell itself rather than trying to satisfy needs of consumers

Know the different marketing eras: Sales-oriented era

between 1920 and 1950, productions and distribution techniques became more sophisticated but people were buying less because of wars so businesses depended on personal selling & advertising

Know the different marketing eras: Market-oriented era

after WWII, consumers had choices again on what the wanted to purchase so there was more focus on what consumers wanted or needed before they designed, made, or attempted to sell their products and services (when marketing was really discovered)

Know the different marketing eras: Value-based era

Products or services that meet consumer’s specific needs or wants and are offered at a price that they believe is a good value

Know the different marketing eras: Technology-augmented era

Once a good value goal is achieved, technologies are used to augment that value. By leveraging advanced tech and constantly seeking innovative applications, marketers gain vastly expanded abilities to engage actively with customers and customers can cocreate their own outcomes

Which element of the 4 Ps focuses on creating value by developing a variety of offerings including goods, services, and ideas?

Product

Over the last several decades, marketers have adopted a _________ because they have realized they need to think about customers in terms of relationships rather than transactions

Relational orientation

The _____________ addresses how a product will be conceived, its cost, where and how it will be promoted, and how it will get to consumers

Marketing plan

______________ organizations recognize that including a strong social orientation in business is a sound strategy that is in the best interest of both the firm and its customers

Socially responsible

Sustainable competitive advantage

advantage over the competitive advantage that isn’t easily copied and can be maintained over a long period of time

What is the connection between value and sustainable competitive advantage?

a company creates and delivers value that competitors cannot easily replicate or surpass over time

Describe the four strategies for developing customer value: Marketing penetration

employs the existing marketing mix and focuses the firm’s efforts on existing customers

Describe the four strategies for developing customer value: Market development

employs the existing marketing offering to reach new market segments, whether domestic of international

Describe the four strategies for developing customer value: Product development

offers a new product or service to a firm’s current target market

Describe the four strategies for developing customer value: Diversification

introduces a new product or service to a market segment that currently is not served

Related diversification

current target market and/or marketing mix shared something in common with the new opportunity

Unrelated diversification

new business lacks any common elements with the present business (firm enters into an entirely new business)

What is a mission statement?

broad description of a firm’s objectives and the scope of activities it plans to undertake

What questions does a mission statement answer?

What type of business are we? What are our objectives? What do we need to do to accomplish those objectives?

What is the focus of customer loyalty programs, what is an example of customer loyalty program?

To create an emotional attachment and achieve customer loyalty. Analysts can also use purchase information of members to determine which types of merchandise certain groups of customers are buying and thereby tailor their offering to better meet the needs of their loyal customers. Examples: airline miles, hotels, movie theater points, retail stores

Loyalty

Customers are reluctant to patronize competing firms

What are the four core sources of competitive advantage?

Customer excellence, operational excellence, product excellence, and locational excellence

Define Customer excellence

focuses on retaining loyal customers and excellent customer service

Define Operational excellence

Achieved through efficient operations and excellent supply chain and HR management

Define Product excellence

having product with high perceived value and effective branding and positioning

Define Locational excellence

having a good physical location and internet presence

What are the components of a SWOT analysis?

strength, weaknesses, opportunities, threats

From swot, describe the focus of Strength/weaknesses and the focus of opportunities/threats?

Strengths and weaknesses are assessing the internal environments

Opportunities and threats assess the external environment

How is CDSTEP related to opportunities/threats as it relates to the SWOT analysis?

CDSTEP assesses the opportunities and uncertainties of external factors

What is the foundational ideal associated with customer retention programs?

Retaining loyal customers,, viewing customers with a lifetime value perspective rather than on a transaction-by-transaction basis

What are the steps of the marketing planning process?

Planning phase, implementation phase, control phase,

Describe the planning phase of the marketing planning process

Introduce conscious marketing by including statements in the firm’s mission or vision statements

Describe the implementation phase of the marketing planning process

when firms are identifying potential markets and ways to deliver the 4 Ps

Describe the control phase of the marketing planning process

Managers must be evaluated on their actions from a conscious marketing perspective, controls are in place to make sure the firm has actually done what it has set out to do

Describe this portfolio category: Stars

High market growth, high market share

Describe this portfolio category: Cash cows

low market growth, high market share

Describe this portfolio category: Question marks

high market growth, low market share

Describe this portfolio category: Dogs

low market growth, low market share

Trader Joe’s markets itself as a national chain of “friendly neighborhood grocery stores,” but unlike other stores, it touts budget-friendly organic and health-conscious options. This is an example of

Market positioning

What is a marketing metric that might be used to compare a firm’s performance over time to that of competing firms?

Gross Margin (GM)

In an attempt to increase sales during a lagging economy, Marvel has expanded its movie offerings to stimulate sales in its current markets. Which growth strategy is Marvel employing?

market development

Identify the immediate or microenvironmental factors

The first factor that affects the consumer is the firm itself. The immediate environment contains the company capabilities, competitors, corporate partners, and the physical environment

Define this component of the immediate environment: Competitors

marketers need to understand their firm’s competitors, including their strengths, weaknesses, and likely reactions to the marketing activities that their own firm undertakes

Define this component of the immediate environment: Corporate partners

Parties that work with the local firm

Define this component of the immediate environment: Physical environment

land, water, air, & living organisms. Products and services are influenced by how they are used in the physical environments, and in turn they can also influence the physical environment which might create pressure for companies and consumers to be more sustainable

Identify the macroenvironmental factors

CDSTEP: Culture, Demographics, Social trends, Technological advances, Economic situations, Political/legal environment

Define this component of CDSTEP: Culture

shared meanings, beliefs, morals, values, and customs of a group of people

Define this component of CDSTEP: Demographics

characteristics of human populations and segments, especially those used to identify consumer markets

Define this component of CDSTEP: Social trends & Technological Advances

both self explanatory

Define this component of CDSTEP: Economic situation

situations in home countries or abroad affect the way consumers buy merchandise and spend money

Define this component of CDSTEP:

Define this component of CDSTEP: Political/legal environment

political parties, government organizations, and legislations & laws

Describe the purpose of value-based marketing

Value based marketing requires that firms charge a price that customers perceive as giving them a good value for the product they receive

Understand the importance of the entire business process as it relates to marketing

Consumers and firms are affected by the macroenvironment, because the consumer is the center of all marketing efforts then the entire business process must be taken into consideration in order to provide the best value

Generational cohort

group of people of the same generation who have similar purchase behaviors (gen Y is the biggest since baby boomers)

What is the Fairtrade certification?

granted to products that are determined to promote sustainable farming and provide higher prices and improved social and environmental standards for producers, typically in less developed countries

What is inflation and how might it influence marketer’s decisions?

the persistent increase in the prices of goods and services. This affects the way consumers spend their money since they buy less

What is the value of monitoring global economic factors?

Foreign currency fluctuations can influence consumer spending. i.e.: if the euro is more expensive than the dollar, european products are more constantly for americans and european shoppers enjoy bargains on US products

What is the 1890 Sherman Antitrust Act, what impact does this law have on marketers and the competitive environment

prohibits monopolies and other activities that would restrain trade or competition and makes fair trade within a free market a national goal. This US legislation protects competition in commerce

What factors are included when analyzing the political/legal environment?

political parties, government organizations, and legislation & laws

How might political factors impact marketing decisions?

Orgs and companies have to understand and comply legislation regarding fair competition, consumer protection, or industry specific regulations. Laws and regulation can also protect consumers from scams

how might culture impact marketing decisions?

The challenge for marketers is to have products or services identifiable by and relevant to a particular group of people. Cultures can influence what, why, how, where, and when we buy

The primary strength of Pilkington is its ability to manufacture glass. This describes which factor of a Pilkington consumer’s immediate environment?

Company capabilities

Know the steps in the consumer decision process

Need recognition → information search → alternative evaluation → purchase & consumption → post-purchase

Define this step in the consumer decision process: Need recognition

consumer realizes they have an unfulfilled need and want to reach a different, desired state

Define this step in the consumer decision process: Information search

search for information about the various options that exist to satisfy that need

Define this step in the consumer decision process: Alternative evaluation

consumer sifts through the choices available and evaluate the alternative

Define this step in the consumer decision process: Purchase & consumption

customers are ready to buy

Define this step in the consumer decision process: Postpurchase

behavior after purchase entails actual rather than potential customers

What are the factors influencing the consumer decision process?

Psychological, social, situational, and marketing mix

Describe involvement and consumer buying decisions

consumer’s degree of interest in the product or service

What is associated with a high involvement in the consumer buying process?

greater attention and deeper processing develops strong attitudes and purchase intentions

What is associated with a low involvement in the consumer buying process?

less attention and peripheral processing generates weak attitudes and increased use of cues

Maslow’s hierarchy of needs

Self actualization, esteem, love, safety, & physiological needs

What are the three core consumer needs associated with consumer decisions?

Functional, psychological, and social needs

Describe Internal search for information

buyer examines their own memory and knowledge about the product or service gathered through past experiences

Describe external search for information

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

Describe this consumer risk: Performance risk

involves the perceived danger inherent in a poorly performing product or service

Describe this consumer risk: Financial risk

associated with a monetary outlay and includes the initial cost of the purchase as well as the costs of using the item or service

Describe this consumer risk: Social risk

involves the fears that consumers suffer when they worry others might not regard their purchases positively

Describe this consumer risk: Physiological/safety risk

fear of actual harm should the product not perform properly

Describe this consumer risk: Psychological risk

associated with the way people will feel is the product or service does not convey the right image

Conversion rate

measure how well retailers have converted purchase intentions into purchases (like by measuring abandoned online carts)

What is cognitive dissonance?

an internal conflict that arises from an inconsistency between two beliefs or between beliefs and behavior (like buyer’s remorse after buying something expensive bc you’re not sure if it is better quality)

What are the three major factors that influence consumer behavior?

Cultural, social, and personal

What is a temporal state?

State of mind at any particular time can alter our preconceived notions of what we are going to purchase at a given time of day and/or the type of person

Situational factors

factors affecting the consumer decision process, those that are specific to the situation that may override, or at least influence, psychological and social issues (purchase situation, sensory situation)

How might brand loyalty impact the consumer purchase decision making process?

continued consumption from same company

The salient or important attributes about a particular product that a consumer bases their product evaluation on are called

Evaluative criteria

Although it would have been nice to take the shoes home immediately after purchasing them, she was willing to trade off immediate availability because she found that she could purchase the shoes online for a 40 percent discount. This is an example of using a

Compensatory decision rule

The majority of products and services are likely to satisfy

Both functional and psychological needs

Define Attribute sets

consumer’s mind organizes and categorizes alternatives to aid their decision process

Define this type of attribute set: Universal sets

include all possible choices for a product category, but because it would be unwieldy for a person to recall all possible alternatives, marketers tend to focus on only a subset of choices