Exam 1 review Flashcards
What is marketing?
the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
What is Exchange?
people giving up something in order to receive something else they would rather have
what is customer value?
the relationship between benefits and the sacrifice necessary to obtain those benefits
What is customer satisfaction
customers’ evaluation of a good or service in terms of whether it has met their needs and expectations
What is a Strategic Business Unit (SBU)?
a subgroup of a single business or collection of related businesses within the larger organization
What is Marketing Myopia?
defining a business in terms of goods and services rather than in terms of the benefits customers seek
What is environmental scanning?
collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan.
What is Demography?
the study of people’s vital statistics, such as age, race and ethnicity, and location
What is purchasing power?
a comparison of income versus the relative cost of a standard set of goods and services in different geographic areas
What is a recession?
a period of economic activity characterized by negative growth, which reduces demand for goods and services
What is perception?
the process by which people select, organize, and interpret stimuli into a meaningful and coherent picture
What is learning?
a process that creates changes in behavior, immediate or expected, through experience and practice
What is culture?
the set of values, norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts, or products, of that behavior as they are transmitted from one generation to the next
What is a market?
people or organizations with needs or wants and the ability and willingness to buy
What is market segmentation?
the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups
What is a target market?
a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges
What is positioning?
developing a specific marketing mix to influence potential customers’ overall perception of a brand, product line, or organization in general
What is marketing research?
the process of planning, collecting, and analyzing data relevant to a marketing decision
What is a measurement error?
an error that occurs when there is a difference between the information desired by the researcher and the information provided by the measurement process
What is a sampling error?
an error that occurs when a sample somehow does not represent the target population
What are the four marketing philosophies?
Production orientation, sales orientation, market orientation, societal orientation.
what is production orientation?
Focuses internally on what firm can do best. Example furniture manufacturers like Ashley
What is a sales orientation?
more people will buy if more aggressive sales techniques are used. Car salesman.
What is a marketing orientation?
focusing on customer wants and needs.
What is societal orientation?
satisfy customers but also to preserve and enhance societies long term interests.
What is Customer Relationship Marketing (CRM)
Business strategy that focuses on highly defined and percise customer groups
what are the four P’s of a marketing mix?
product, price, place, promotion
What is Product in the marketing mix
It is the physical good and all the services or amenities that come with it.
What is the place in the marketing mix
concerned with making the product available when and where the customers want them.
What is the promotion in the marketing mix?
Promotion includes advertising, public relations, sales promotion, and personal selling.
What is price in the marketing mix
what a customer must give up in order to obtain the product.
What are the compents of the boston consulting groups?
stars, cash cows, problem children, and dogs.
What are stars?
a fast growing market leader.
What is a cash cow?
an SBU that generates more cash than it needs to maintain its market share.
What is a problem child?
also called a question mark, shows rapid growth but poor profit margins.
What is a dog?
A dog has low growth potential and a small market share.
What is market penetration?
Same market same product, increase customers
What is product development?
New product same market.
what is market development?
Same products new market.
What is diversification?
New products new markets
What is niche competitive advantage?
the advantage achieved when a firm seeks to target and effectively serve a small segment of the market
How should you market to the Hispanic population?
Heavy phone users for transactions and social media own their own businesses. Embrace their culture mainly through food and music.
what are some approaches to stimulating innovation?
Use disruptive innovation: requires lots of money, time, and commitment.
What are the steps in the consumer decision-making process?
- Need recognition
- information search
- evaluation of alternatives
- purchase
- post-purchase behavior
what are the three types of information search?
- internal information search
- external information search
- non-marketing controlled information search
What is internal information search?
the process of recalling information stored in the memory
What is external information search?
the process of seeking information in the outside environment
What is a non-marketing controlled information search?
a product information source that is not associated with advertising or promotion
What are the three types of consumer buying decisions?
- routine response behavior
- limited decision making
- extensive decison making
what is routine response behavior?
type of decsion making for low cost goods requires little search and decision time.
what is limited decision making?
type of decision making that requires moderate amount of time for search and decision time about an uncertain brand in a familiar product category.
What is extensive decision making?
the most complex decision making process. used when buying unfamiliar expensive product or infrequently bought items.
What are the types of perceptual exposure?
- selective exposure
- selective distortion
- selective retention
what is selective exposure?
process where a consumer notices certain stimuli and ignores others.
What is selective distortion?
a process where consumers changes or distorts information that conficts with his or her feelings or beliefs.
what is selective retention?
consumer only rememebrs information that supports his or her personal beliefs.
What are the types of reference groups?
- primary membership group
- secondary membership group
- asiporational reference group
- nonaspirational reference group
what is a primary reference group?
group that interacts regularly face to face ex: family freinds and coworkers.
what is a secondary reference group?
a reference group with which people associate with less consistenlty. Ex clubs religious groups
What is an aspirational reference group?
a group that someone would like to join
what is a nonaspirational reference group?
a group that an indvidual does not want to associate.
What are the basis for segmentation?
- geographic
- demographic
- psychographic
- behavioristic
what is geographic segmentation?
based on region market size, market density, or climate
what is demographic segmentation?
segmentation by age, gender, income, ethinic background and family cycle.
what is psychographic segmentation
segmenting markets on the basis of personality, motives, lifestyles, and geodemographics
what are the purchasing profiles of business buyers?
- satisficers
2. optimizers
what is a satisficer?
business customers who place an order with first familiar supplier.
what is an optimizer?
business customers, who consider multiple suppliers?
what is perceptual mapping?
a way of displaying the location of brands or products in customers’ minds.
What is secondary data?
data previously collected for any purpose other than the one at hand.
What is primary data?
data that is collected for the first time.
what is a probability sample?
a sample in which every elemnt in the populaiton has a known statistical likelhood of being selected
what is a random sample?
a sample arranged in such a way that every element of the population has an equal chance of being selected.
what is a nonprobability sample?
any sample in which little or no attempt is made to get a representative cross-section of the population
what is a convenience sample?
using people convient for test like friends and family.
what is a simple random sample?
every member has a known and equal chance of selecetion
what is a stratified sample?
the population is divided into exclusive groups like gender or age and then a random sample is drawn from each.
what is a cluster sample?
the population is divided into groups like geographic areas. then the random sample is taken. then researcher collected data from all elements in the selected cluster.
what is a systematic sample
a list of all populations is obtained then divide sample size by population size.
what are ways to obtain primary data
survey
observation
ethnographic
virtual shopping
what is ethnographic data
study of human behavior in the natural context
What are some ways to reduce cognitive dissonance?
100% customer satisfaction guarentee, and awards like JD power.
