223 Midterm Flashcards
What are the 5 core marketplace concepts
needs, wants, demands, market offerings, and value and satisfaction.
What are the 4 Ps of the marketing mix (degined to generate revenue)?
Product, Price, Place, Promotion
Consumers’ needs and wants are fulfilled through [. ]—some combination of products, services, information, or experiences offered to a market to satisfy a need or a want.
market offerings
Appealing to target markets, value proposition (creating customer value), Communicating with consumers from a value first perspectives. These elements of a successful {. }
marketing strategy
Customer-perceived value
[. ] extent to which a product’s perceived performance matches a buyer’s expectations
Customer satisfaction
[] Companies aim to delight customers by promising only what they can deliver and then delivering more than they promise
Customer delight
The value of a company comes from the value of its current and future customers.
Consumer equity
{. ] the companies and people close to the business that affect its ability to engage and serve its customers—the company, suppliers, marketing intermediaries, competitors, publics, and customers.
the microenvironment
The larger societal forces that affect the microenvironment: (6)
demographic, economic, natural, technological, political, and cultural forces
Aging population
Diverse generations
Big-city growth
Ethnic diversity
World markets
Changing household composition
Are all examples of what?
Demographic forces
The collective income, expenditures, and resources that affect the cost of running a business or household
Economic Forces (natural, technological, political, etc.)
What are natural forces consisting of?
Technological forces, political forces, cultural forces
What are the technological forces consisting of?
Political forces, Cultural forces
Describe the environmental forces that affect the company’s ability to develop meaningful relationships with consumers.
market conditions (competition, customer demands), economic trends (inflation, interest rates), technological advancements, and social and political forces (regulations, cultural shifts)
Assess information needs
Develop the needed information
Help decision makers use the information to generate and validate actionable customer and market insights
The marketing information system
Marketers can obtain the needed marketing information from (3)
internal data, marketing intelligence, and marketing research.
[. ] are collections of consumer and market information obtained from data sources within the company network.
Internal databases
[. ]; Systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization
Marketing research
Marketing research approaches (3)
Use own research departments
Hire outside research specialists
Purchase data collected by outside firms
The marketing research process has four steps :
(1) defining (2) develop, (3) implementing (4) interpreting
Exploratory, descriptive, and causal are Types of what?
Market research
In regards to market research, what is Exploratory, Descriptive, and Causal.
-Exploratory Research: Provides research projects with direction,
- Descriptive Research: Researcher already has a general understanding of the marketing problem and is seeking more conclusive data
- Causal Research: Expectation about the relationship is explained
the likelihood that a member of a population will be selected for a sample
probability sampling
[. ]; select so that the chance of selecting a particular element of a population is either unknown or zero
non-probability sampling
when marketing research plan is put into action, this requires what 3 things?
collecting, processing, and analyzing the information
Managing detailed information about individual customers
Customer Relationship Management (C R M)
visualize data and key performance indicators (K P I s) using graphs, charts, and numbers so that numerical information tells a story that is insightful, and easy to use and understand.
Dashboards
[. ] Can help segment customers, plan and forecast, manage risk, and take corrective action
analytics
The company, suppliers, marketing intermediaries, competitors, publics, and customers. These are what?
Players in the Microenvironment
Help the company to promote, sell, and distribute its products to final buyers
Marketing Intermediaries
[ ] the physical environment and the natural resources that are needed by marketers and used by consumers
Natural forces
[. ] Inventions or innovations that stem from scientific or engineering research
Technological forces
[. ] Government agenda, New or pending regulations, Government agencies and pressure groups
Political forces
What are the 5 factors influencing consumer behaviour? (CSPPB)
Cultural, Social, Personal, Psychological, Buyer
What are the buyer decision process steps (5)?
Need recognition, information search, evaluation of alternatives, purchase decision, post purchase behaviour
What are the stages in the product adoption process? (5) (AIETA)
- Awareness (becomes aware of the product but lacks information about it),
- Interest(the consumer seeks information about the product)
- Evaluation (the consumer considers whether trying the new product makes sense)
- Trial (the consumer tries the new product on a small scale to improve their estimate of its value)
- Adoption (the consumer decides to make full and regular use of the new product)
In regards to the influence of the rate of product adoption: what does (1) Relative Advantage mean
the degree to which the innovation appears superior to existing products.
In regards to the influence of the rate of product adoption: what does (2) Compatibility mean
the degree to which the innovation fits the values and experiences of potential consumers.
In regards to the influence of the rate of product adoption: what does (3) Complexity mean
the degree to which the innovation is difficult to understand or use.
In regards to the influence of the rate of product adoption: what does (4) Divisibility mean?
the degree to which the innovation may be tried on a limited basis. (EX. Free streaming for a week)
In regards to the influence of the rate of product adoption: what does (5) communicability mean
the degree to which the results of using the innovation can be observed or described to others.
According to the “Diffusion of Innovations” theory by Everett Rogers, the rate of product adoption is significantly influenced by five key product characteristics (5)? (RCCCD
relative advantage
compatibility
complexity
Divisability
Communicability;
There are three major types of buying situations (3), what are they?
Straight rebuy, modified rebuy, new task
In regards to buying situations, what is (1) Straight (2) Modified rebuy, (3) new task
- Straight rebuy: buyer routinely reorders something without any modifications
- Modified rebuy: buyer wants to modify product specifications, prices, terms, or suppliers
- New task: buyer purchases a product or service for the first time
[. ] : all the individuals and units that play a role in the purchase decision-making process
Buying centre
Stages of the {. } include problem recognition, general need description, product specification, supplier search, proposal solicitation, supplier selection, order-routine specification, performance review *Similar to the consumer buyer decision process but with more stakeholders and more processes.
business buyer decision process
What are the 4 types of marketing strategy?
Market Segmentation
Market Targeting
Market Differentiation
Market Positioning
In regards to marketing strategy, What is Market segmentation?
involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviours that might require separate marketing strategies or mixes.
In regards to marketing strategy, What is Market targeting?
consists of evaluating each market segment’s attractiveness and selecting one or more market segments to enter.
In regards to marketing strategy, What is Market Differentiation?
Differentiation involves actually differentiating the firm’s market offering to create superior customer value.
In regards to marketing strategy, What is Market Positioning?
Positioning consists of arranging for a market offering to occupy a clear, distinctive, and desirable place, relative to competing products in the minds of target consumers. a car company positioning itself as the “safest option for families”
What are the 4 major segmentation variables for consumer markets
(1) Geographic
(2) Demographic
(3) Psychographic
(4) Behavioural
What is Geographic segmentation?
Divides a market into different geographical units such as nations, states, regions, counties, cities, or neighbourhoods
What is Demographic segmentation?
Divides a market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation
What is psychographic segmentation?
Divides buyers into different segments based on lifestyle or personality characteristics. The products people buy reflect their lifestyles. (social class, lifestyle, personality)
What is Behavioural Segmentation?
Behavioral segmentation is a marketing technique that groups customers by their actions and behaviors. It’s also known as behavioral targeting. (loyalty, usage rate, benefits). a coffee shop might offer a free drink after every ten purchases to encourage repeat visits and reward loyal customers.
How do marketers evaluate the various segments they want to target? (3)
(1) Segment size and growth
(2) Segment structural attractiveness
(3) Company objectives and resources
What are the Market-Targeting Strategies? (4)
(1) Undifferentiated (mass) marketing
(2) Differentiated (Segmented) marketing
(3) Concentrated (niche) marketing
(4) Micromarketing (local/individual) marketing
What is undifferentiated (Mass) marketing?
A market-coverage strategy in which a firm decides to ignore market segment differences and go after the entire market with one offer. everyday products like paper goods, cleaning supplie
What is differentiated (segmented) marketing?
A market-coverage strategy in which a firm targets several market segments and designs separate offers for each.
What is concentrated (niche) marketing?
A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches.
What is Micromarketing?
Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing. Red Bull targeting extreme sports enthusiasts
More for more, more for the same, more for less, the same for less, less for much less. These are what propositions?
Winning Value Propositions
Define marketing and outline the steps in the marketing process.
Marketing is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
The marketing process involves five steps. The first four steps create value for customers. First, marketers need to under- stand the marketplace and customer needs and wants. Next, marketers design a customer-driven marketing strategy with the goal of getting, keeping, and growing target customers. In the third step, marketers construct a marketing program that actually delivers superior value. All of these steps form the basis for the fourth step, build- ing profitable customer relationships and creating customer delight. In the final step, the company reaps the rewards of strong customer relationships by capturing value from customers.
Identify the key elements of a customer- driven marketing strategy and discuss the marketing management orientations that guide marketing strategy.
utilizing elements like market segmentation, target marketing, differentiation, and positioning, ensuring all marketing mix aspects (product, price, place, and promotion) are aligned with customer interests;
Explain company-wide strategic planning and its four steps.
Strategic planning involves developing a strategy for long-run survival and growth. It consists of four steps: (1) defining the company’s mission, (2) setting objectives and goals, (3) designing a business portfolio, and (4) develop- ing functional plans.
Define sustainable marketing
Sustainable marketing calls for meeting the present needs of consumers and businesses while still preserving or enhancing the ability of future generations to meet their needs.
Identify the major social criticisms of marketing.
Marketing’s impact on individual consumer welfare has been critcized for its high prices, deceptive practices, high-pressure selling.
Describe the principles of sustainable marketing. (3)
- consumer-oriented marketing
- customer-value marketing
- innovative marketing
Describe the environmental forces that affect the company’s ability to serve its customers.
economic conditions, technological advancements, political regulations, social trends, demographic shifts, competitive landscape, natural resource availability, legal frameworks, and cultural factors
Explain how changes in the demographic and economic environments affect marketing decisions.
Today’s demographic environment shows a changing age structure, shifting family profiles, geographic population shifts, a better-educated and more white-collar population, and increasing diversity. The economic environment consists of factors that affect buying power and patterns.
Identify the major trends in the firm’s natural and technological environments.
Environmental concerns create marketing opportunities for alert companies. The technological environment creates both opportunities and challenges. Companies that fail to keep up with technological change will miss out on new product and marketing opportunities.
Define the marketing information system and discuss its parts.
The marketing information system (MIS) consists of people and procedures for assessing information needs, develop- ing the needed information, and helping decision makers use the information to generate and validate actionable customer and market insights.
1. Internal records · 2. Marketing research · 3. Marketing intelligence · 4. Marketing decision support
Outline the steps in the marketing research process.
(1) defining the problem
(2) developing a research plan
(3) implementing the plan.
(4) interpretingfindings.
Understand the consumer market and the major factors that influence consumer buyer behaviour.
The consumer market consists of all the individuals and households that buy or acquire goods and services for personal consumption.
Consumer buyer behaviour is influenced by four key sets of buyer characteristics: cultural, social, personal, and psychological.
Describe the adoption and diffusion process for new products.
The product adoption process is made up of five stages: awareness, interest, evaluation, trial, and adoption.
Define the business market and identify the major factors that influence business buyer behaviour.
The business market comprises all organizations that buy goods and services for use in the production of other products and services
Business buyers make decisions that vary with the three types of buying situations: straight rebuys, modified rebuys, and new tasks.
List and define the steps in the business buying decision process.
The business buying decision process itself can be quite involved, with eight basic stages: problem recognition, general need description, product specification, supplier search, proposal solicitation, supplier selection, order routine specification, and performance review.
Explain how companies identify attractive market segments and choose a market- targeting strategy.
To target the best market segments, the company first evaluates each segment’s size and growth characteristics, structural attractiveness, and compatibility with company objectives and resources.
Discuss how companies differentiate and position their products for maximum competitive advantage.
The differentiation and positioning task consists of three steps: identifying a set of possible differentiations that create competitive advantage, choosing advantages upon which to build a position, and selecting an overall positioning strategy.
[. ] is A statement of the organization’s purpose—what it wants to accomplish in the larger environment.
Mission statement
