MArketing Quiz 2

Chapter 3 

 LEARNING OBJECTIVES

Purpose of Environmental Scanning - the process of continually acquiring information to help identify trends. Environmental trends typically come from five sources - Social, Economic, Technological, Competitive and regulatory forces. 

Describe social forces such as demographics and culture - Three key demographic characteristics include a population profile,  a description of generational cohorts (baby boomers, Generation X, Generation Y, and Generation Z), and the racial and ethnic diversity of the population. Culture incorporates the set of values, ideas, and attitudes that is learned and shared among the group members 

 Discuss how Economic forces affect Marketing - Two Economic Forces - Macroeconomics conditions related to the marketplace and microeconomic factors such as consumer income 

Describe how technological changes can affect marketing - Technological changes can replace existing products or services. They can also drop the price of other products because it helps with production. Technology plays a massive role in marketing because of how much influence it can have on every market. 

Discuss the forms of competition that exist in a market - 4 types of competition - pure competition, monopolistic competition, oligopoly, Monopoly. 

Key components of competition - likelihood of new competitors, the power of buyers and suppliers, the presence of competitors and possible substitutes. 

Explain how regulatory forces ensure competition and protect producers and consumers - Legislation ensures a competitive marketplace by having the sherman antitrust act and clayton act, copyright and patents. Consumers are protected by laws like the Lanham Act which allows trademarks. There is also self regulation like the Better business bureau (BBB)

Identify factors that influence ethical and unethical marketing decisions -  4 factors affect ethical marketing decisions -  societal culture and norms, (2) business culture and industry practices, (3) corporate culture and expectations,  and  (4)  personal moral philosophy and ethical behavior.

Describe the different concepts of social responsibilities - Social responsibility is when a company is a part of a community and their actions reflect the group. There  are  three  concepts  of  social  responsibility: profit responsibility, stakeholder responsibility, and societal responsibility.

Sherman Antitrust Act - forbids actual monopolies 

 Clayton Act - forbids actions that are likely to lessen competition 

 4 generational Cohorts - baby boomers (1946-1964), Gen X (1965-1980), Gen Y (1981-1996), Post-millinieum Generation (born between 1997 and 2010) 

Companies use Multicultural marketing teams to identify trends of different races and ethnicities actions and beliefs 

Disposable income is income after paying taxes 

Discretionary income is income after paying taxes and paying for necessities

 How does technology affect customer value? - technology impacts customers positively because it gives better prices and helps asses other products

In pure competition there are a large number of sellers 

The Federal Trade commission Monitors unfair business practices

The BBB uses a partner of code of conduct to have employees follow correct practices 

The Consumer Bill of Rights (1962)- These are the rights to safety, to be informed, to choose, and to be heard

Economic Espionage - these are illegal acts of trespassing, thefts, fraud, misrepresentation, and more to gain information about competitors

Moral idealism - a moral philosophy that consider some individual rights and actions as universal 

 Green Marketing - marketing efforts to produce, promote, and reclaim environmentally sensitive products

Sustainable development - conducting business in such a way that it keeps the natural environment while growing economically. Green marketing is a example 

• Chapter 4 - 

Describe the stages in the consumer purchase decision process - 

The purchase decision process consists of 5 stages - 1. Problem recognition - identifying the problem presented 2. Information search - remembering previous purchases as well as checking other sources 3. Alternative evaluation - sees if alternatives can satisfy the need  4. Purchase decision - from whom to buy and when to buy from 5. Postpurchase behavior - comparing product to alternatives and either satisfaction or dissatisfaction 

Distinguish among three variations of the consumer purchase decision process: extended, limited, and routine problem-solving -  

Extended - for high-involvement purchase decisions all five processes are used and a good margin of time goes into searching for alternatives. 

Limited - Consumers only seek some information or rely on a decision for the purchase process

Routine Problem-Solving -  use problem-solving skills - They recognize an issue, make a decision, and spend little effort on finding information

Identifying the major physiological influences on consumer behavior - 

Motivation - the energizing force that drives a need to be satisfied

Personality - a person's consistent behaviors to recurring situations

Perception - how someone consumes and interprets information and then creates a worldview on it 

Lifestyle AKA Physiographic - a mixture of demographics and psychology - focuses on how people spend their time and resources, what they think is important, and what they think of themselves

Identify the major Sociocultural influences on cultural behavior - 

Formal and informal relationships also affect consumer behavior 

Reference groups, social class, family, culture, and subculture 

What is the first stage in the consumer purchase decision process?

Problem Recognition – identifying a need 

What are the brands a consumer considers buying out of brands in product class called?

Consideration Set

What is the term for post-purchase anxiety?

Cognitive dissonance

The problem with the toro snow pup was a example of selefctive?

comprehension—consumers perceived the name to mean that Snow Pup was a toy that was too light to do any serious snow removal

What three additude change approaches are the most common? 

1. Change beliefs about the extent to which a brand has certain attributes 

2.  Change the perceived importance of these attributes 3. Add new attributes to the product 

What are the two forms of personal influence? 

1. Opinion relationship - perons considered to be knowledgeable about particular products or services 

2. Word of month -  the influencing of people during conversations

Marketers are concerned about what type of reference groups?

Three reference groups - 

1. Associative groups - one to which a person actually belongs to that is structured around a brand and its relationship with the brand and individuals 

2. Aspiration Groups - groups people wish to be identified with or a part of

3. Dissociative groups - groups people wish to keep their distance from because of altering views or beliefs

What two challenges must marketers overcome when marketing to other ethnicities?

1. The diversity in subcultures that affect product preferences 

2. The language barrier that may lead to the translation of a product or commercial/promotion 

• Chapter 5 - 

Describe the key characteristics of organizational buying that make it different from consumer buying - There are seven major characteristics of organizational buying - These include demand char-acteristics, the size of the order or purchase, the number of potential  buyers,  buying  objectives,  buying  criteria,  buyer–seller relationships and supply partnerships, and multiple buy-ing  influences  within  organizations. Organzaitonal buying is also more formalized 

Explain how buying centers and buying situations influence organizational purchasing - 

A buying center consists of a group of individuals who share common goals, risks, and knowledge important to a purchase decision. Five specific roles that a person may play in a buying center include users, influencers, buyers, deciders, and gatekeepers. 

Distinguish among industrial, reseller, and government organizational markets - 

There  are  three  different  organizational  markets:  industrial, reseller, and government. 

Industrial - reprocess a product or service they buy before selling it to the next customer 

Reseller - wholesalers and retailers - buy physical products and sell them again without any reprocessing 

Government Agencies - at the federal, state, and local levels buy goods and services for constituents they serve 

Recognize the importance and nature of buying onlinein industrial, reseller and govnetment organizational markets - Sure! Here's a brief summary of the importance and nature of online buying in industrial, reseller, and government organizational markets:

### Industrial Markets

- Increases efficiency and cost savings.

- Provides access to a wider range of suppliers.

- Offers real-time information.

### Reseller Markets

- Enhances inventory management.

- Expands market reach.

- Ensures competitive pricing.

### Government Markets

- Improves transparency and accountability.

- Streamlines procurement processes.

- Achieves cost efficiency.

In summary, online buying boosts efficiency, cost savings, and informed decision-making across these markets.

Organizational Buyers are?

Are people, companies, manufacturers, wholesalers who buy products for their own use or resale 

What are the three main types of organizational buyers?

1. Industrial firms - reprocess a product before they sell again

2. Resellers - resell without and reprocessing

3. Government - governments who buy products and services for constituents they serve 

What one department is almost always represented by a person in the buying center?

Purchasing Department

What are the three types of buying situations or buy classes?

1. New Buy - first-time buy of product or service

2. Straight Rebuy - reorders an existing product from a list of acceptable suppliers 

3. Modified Rebuy -  an organization buying center changes product specifications, price, delivery schedule, or supplier.

What are e-marketplaces?

They are online trading communities that bring together buyers and suppliers organization to make real time exchange of info, money, products, adn services

In general, which type of online auction creates upward pressure on bid prices and which type creates downward pressure on bid prices?

Upward Preasure on price - traditional auction 

Downward pressure on price - Reverse auction