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Marketing Junior Year > Chapter 1: Marketing Concepts > Flashcards

Chapter 1: Marketing Concepts Flashcards

1
Q

Who determines the value of a product?

A

Customers

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2
Q

If companies don’t determine value, what do they do?

A

Companies offer value propositions

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3
Q

The perceived benefits relative to perceived costs; (What you get - what you give) or (What you get/ what you give)

A

Customer’s perceived value

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4
Q

Marketing managers are responsible for influencing the ______ _______ customers associate with the exchange.

A

perceived value

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5
Q

the combination of benefits specific to a product.

A

value propositions

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6
Q

T or F: Different value propositions maximize value for different target customers.

A

True

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7
Q

marketing is derived from ________ and _________.
From an _________ standpoint, companies offer utility.

A

economics and psychology; economic

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8
Q

A market can refer to a group of ______, a _______, or a ________.

A

PEOPLE (college student market); PLACE (farmer’s market); PRODUCT (labor market, used car market)

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9
Q

What are the 4 main parts of business?

A
  1. Accounting
  2. Manage
  3. Finance
  4. Marketing
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10
Q

Match each of these to the main part of business they describe:
1. acquire cash flow from investors. Evaluate and manage the firm’s financial risk, assets, and shareholders value.
2. organize resources to achieve goals effectively, efficiently, and strategically.
3. acquire resources from customers. (resources like money, feedback, research, word-of-mouth). Stimulate demand and evaluate and manage customer value.
4. tracks revenue, cost flows, profits, etc. and communicates these to managers and owners

A
  1. Finance
  2. Manage
  3. Marketing
  4. Accounting
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11
Q

managing exchanges with customers.

A

marketing

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12
Q

What is the marketing concept?

A

company should focus on satisfying customers and the rest will take care of itself

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13
Q

The marketing concept is a _______ of business, whereas marketing refers to the people and actions involved in managing exchanges with customers. (the idea of the marketing concept came about in about the ____)

A

philosophy; 70s

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14
Q

The implementation of the marketing concept requires what 3 things?

A
  1. Generation (generate info about customer)
  2. Dissemination (disseminate that info)
  3. Incentivize the use of it (use customer info across organization)
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15
Q

T or F: The market concept is weakly linked to firm performance if you truly implement all 3 things.

A

False; it is STRONGLY linked

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16
Q

The marketing management concept goes through what 4 times periods? Briefly describe them.

A
  1. Production (industrial revolution)
  2. Selling (developing sales forces and ideas)
  3. Market (from about 40s to 80s)
  4. Social (started in 90s where companies started being socially oriented)
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17
Q

What is the unique contribution of marketing to a firm?

A

Acquire resources from customers; stimulate demand and evaluate and manage customer value.

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18
Q

The selling concept:
- Starts in the _______.
- Focuses on the ______ ______.
- You ______ and _______ the product.
- Looking at profits through _______ ______.

The marketing concept:
- Starts in the ________.
- Focuses on ________.
- _________ marketing.
- Profits are linked to ______ _______.

A

Selling Concept:
- factory
- existing product
- sell; promote
- sales volume

Marketing Concept:
- market
- customers
- integrated
- customer satisfaction

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19
Q

What are the 4 different concepts that compete with the marketing concept?

A
  1. Selling
  2. Product
  3. Production
  4. Societal
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20
Q

Which of the 4 concepts that compete with the marketing concept does this describe?
holds that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency. One of oldest orientations that guides sellers.

A

Production Concept

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21
Q

Which of the 4 concepts that compete with the marketing concept does this describe?
company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-term interests, and society’s long run interests.

A

Societal concept

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22
Q

Which of the 4 concepts that compete with the marketing concept does this describe?
Holds that consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort; typically practiced with unsought goods - those that buyers don’t normally think of buying (ex: life insurance or blood donations).

A

selling concept

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23
Q

Which of the 4 concepts that compete with the marketing concept does this describe?
Holds that consumers will favor products that offer the most in quality, performance, and innovative features; therefore, the organization should devote its energy to making continuous product improvements.

A

Product Concept

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24
Q

A pleasurable fulfillment response to a consumption experience.

A

customer satisfaction

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25
Q

T or F: You can be satisfied with a company you’ve never dealt with before.

A

False; consumption experience means you have to CONSUME for you to be satisfied

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26
Q
  • How is satisfaction determined?
  • What does this tell us about Mcdonald’s?
A
  • Driven by disconfirmation and expectations
  • If you start out with low expectations, you’re likely to have low satisfaction.
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27
Q

either confirming or disconfirming what you think already; is a neutral thing, not negative

A

disconfirmation

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28
Q

T or F: You can have positive or negative disconfirmation.

A

True

29
Q

How do you continuously satisfy customers?

A

set expectations decently high, and then you meet them.

30
Q

What is the ACSI and why does it matter?

A

American Customer Satisfaction Index; shows that customer satisfaction matters (linked to firm performance)

31
Q
  1. T or F: Marketing is advertising.
  2. T or F: Marketing involves numbers.
  3. Marketing is a gift you either have or don’t.
  4. Marketing is common sense.
  5. Marketing is making people buy things they don’t need.
A
  1. False; you can be a good marketer with no advertising
  2. True
  3. False; it’s an art because sometimes it’s hard to get right
  4. False
  5. False; companies can’t make people do something they don’t want to do. Marketing just reflects society.
32
Q

Many people believe marketing creates materialism, but it has use. It provides _________ and relays _______ to customers. It is needed to maintain _______ _______.

A

awareness; information; customer relationships

(ex: truth campaign wants to reduce smoking, alabama power encourages less power use, and luxury brands try to sell to fewer people)

33
Q

Are there times when you want to sell to less people? If so, why?

A

Yes (called exclusivity); making things less available can sometimes drive demand

34
Q

having a focus on maximizing shareholder value.

A

Shareholder Concept

35
Q

The average holding time for stock in the U.S. is (increasing/decreasing). What happened in the 90s that caused this?

A

decreasing; technology (people could start trading their stocks)

36
Q

What are 2 potential problems with a focus on shareholders (shareholder concept)?

A
  1. The nature of investing (especially for publicly traded companies) creates a short term focus (trying to keep people happy every 90 days). → creates very short-term perspectives.
  2. Encourages behavior that maximizes shareholder value at the expense of a business’s health.
37
Q
  • Stock ______ have been commonly chosen the last 30 years (out of buybacks, dividends, and reinvesting) to the expense of reinvestment.
  • Do these help short-term?
  • Long-term?
A
  • buybacks
  • yes
  • no. It potentially undermines what the company is trying to do in the long term.
38
Q

The idea that if we “if we can make it, it will easily sell” is indicative of which mindset?

A

Production

39
Q

Focuses on assessing the effectiveness of a specific marketing tool or tactic (in order to not waste a lot of money on something later down the road; ex: showing an ad to a small group of people before putting it on television. Then, seeing how people respond to it to assess the effectiveness)

A

marketing research

40
Q

T or F: Marketers should be naive scientists.

A

True

41
Q

companies acting in part for the best interest in society rather than their own self-interest.

A

social responsibility (CSR)

42
Q

What are the Consumer Bill of Rights current consumer “rights” (4):

A
  1. The right to safety
  2. The right to be informed
  3. The right to choose
  4. The right to be heard
43
Q

Match each of these descriptions to the correct “right” from the Consumer Bill of Rights:
1. to be protected against fraudulent, deceitful, or grossly misleading information, advertising, labeling, or other practices, and to be given the facts he needs to make an informed choice.
2. to be assured that consumer interests will receive full and sympathetic consideration in the formulation of Government policy, and fair and expeditious treatment in its administrative tribunals.
3. to be protected against the marketing of goods which are hazardous to health or life.
4. to be assured, wherever possible, access to a variety of products and services at competitive prices; and in those industries in which competition is not workable and government regulation is substituted, an assurance of satisfactory quality and service at fair prices.

A
  1. Right to be informed
  2. Right to be heard
  3. Right to safety
  4. Right to choose
44
Q

The argument that consumers need protected rights and not to be held to a “buyer beware” mentality is due to the argument that there is _________ ________.

A

information asymmetry

45
Q

When knowledge is unequal in the marketplace, where businesses typically know more than consumers.

A

information asymmetry

46
Q

The American Marketing Association (AMA) calls on marketers to do what 3 things?

A
  1. Do no evil
  2. Foster trust in the marketing system
  3. Embrace ethical values (of honesty, responsibility, fairness, respect, transparency and citizenship)
47
Q

when a company makes marketing decisions by considering consumer’s wants, the company’s requirements, consumer’s long-run interests, and society’s long-run interests.

A

societal marketing

48
Q

What is the Milton Friedman view of businesses’ role in the world?

A

The ONLY role of businesses in the world is to use its resources and engage in activities designed to increase its profits. (against the societal marketing viewpoint)

49
Q

What are 2 arguments that support Milton Friedman’s view of businesses’ role in the world?

A
  1. By doing this you create competition and new products, which drives down the price of products (which in return, helps society (ex: poor people can afford more).
  2. enterprises and the profits they generate bring benefits to society like jobs, training, revenues for suppliers, etc. (Having this view IS socially responsible in and of itself)
50
Q

T or F: Friedman’s model leaves the role of the government and other institutions more pronounced in terms of social oversight, whereas the societal concept view expects organizations themselves to take on a more active role in addressing societal issues.

A

True

51
Q

What are the arguments (5) for businesses to engage in other causes besides seeking a profit (argument for societal marketing)?

A
  1. The problems we face are massive
  2. Some consumers want businesses to tackle some issues
  3. For-profit businesses have the large majority of the resources
  4. Nonprofits face structural problems in marketing (advertising budgets)
  5. There are self-interest reasons to engage in a societal organization
52
Q

It’s not just money for-profits have, it’s also ______ _______. There is a _______ between for-profits and nonprofits resources.

A

intelligent workers; disparity

53
Q

Why do nonprofits not advertise?

A

They would lose money towards their cause that they are spending on advertising (which is overpay).

54
Q

What are the 4 benefits from being society focused?

A
  1. Enhanced innovation/entrepreneurship
  2. More loyal, productive, engaged employee relationships
  3. Stronger external relationships up and down the value chain
  4. Greater resilience to withstand shocks and crises
55
Q

T or F: Competition makes things affordable and raises the standard for everyone.

A

True

56
Q

Does marketing theory apply to both for-profit and nonprofit organizations?

A

Yes, their product is their idea and they must define who their customers/donors are.

57
Q

Corporate Social Responsibility (CSR) spending has been linked to reducing ____-________ risk (which means YOUR _______) in stock prices, or variability. Reducing that variability is a good thing.

A

firm-idiosyncratic; fluctuation

58
Q

What factors determine whether firms are “rewarded” for engaging in CSR?
Firms are rewarded when… (4 things):

A
  1. Quality is strong
  2. Stakeholders make intrinsic attributions about a firm’s motive (meaning the reason why you’re doing it is internal; you’re not being forced to do it)
  3. CSR spending is synergistic with R&D (what you spend your money on socially needs to make sense with what you do)
  4. Advertising spending is HIGHER compared to competitors
59
Q

T or F: The financial return is easy to obtain from being socially oriented and requires fully embracing a social orientation while also providing value.

A

False; very DIFFICULT to obtain

60
Q

Which two mechanisms are the primary ones in effect to explain a firm’s CSR spending?
Which one leads to financial returns

A
  1. Good management (a strategic initiative that’s ingrained in the company)
  2. Penance CSI (irresponsibility; when a company does something bad then tries to make up for it through CSR spending)

Good management leads to financial returns

61
Q

when charitable actions of a firm are tied directly to consumer revenue. (tying sales to the cause)

A

Cause-related marketing

62
Q

What was the first caused-related marketing? What did they do?

A

American Express; new card users went directly to funding the repair of the Statue of Liberty

63
Q

What is the annual amount of money spent on cause related marketing in 2019?
What is this amount in relation to advertising spending? Big or small?

A
  • $2.24 billion (an increase of 6% over a decade)
  • 0.9% of advertising spending (small)
64
Q

Why is cause-related marketing so hard to get right?

A

Brands and cause must fit (not just in your value, but also in your product, who you talk to, your mission, etc.)

65
Q

To get cause-related marketing right, in relation to brands needing to fit your cause, it must match all the aspects of _________ congruence and _________ congruence. Also to get it right, ________ must come first.

A

conceptual; perceptual (what you SEE must make sense too); quality

66
Q

Which of these describes conceptual congruence and which describes perceptual congruence?
1. Color composition, size, shape, visibility
2. Corporate values, target market, product positioning, mission, brand personality

A
  1. Perceptual
  2. Conceptual
67
Q

CRM is a potentially powerful tool but it also carries significant risk and can backfire dramatically (ex: KFC). To get CRM right, what 6 things must be true?
Which ones are the most relevant factors (put a star next to them; 3)?

A
  1. Quality has to be sufficient
  2. Brand and cause must symbolically fit (ex: values, customers)
  3. Brand and cause must visually fit (ex: colors, logo)
  4. Donation has to be transparent (ex: partner, donation size) *
  5. Brand must be seen as sincere (aka intrinsic attribution) *
  6. Consumers must care about the cause *
68
Q

On average, CRM is _______ related to behavioral outcomes and ________ related to attitudinal responses, suggesting that CRM is more promising for long-term ____ _____ than for reaching short-term ______ ______.

A

weakly; moderately; image building; sales objectives

69
Q

T or F: CRM is less likely to increase sales but it does increase people’s positive outlook on your company to some degree. (like the KFC x Breast Cancer thing)

A

True

Marketing Junior Year (11 decks)

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