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MARK 3001 > Exam 2 > Flashcards

Exam 2 Flashcards

1
Q

define globalization

A

the process by which goods, services, capital, people, information, and ideas flow across national borders

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2
Q

what are the four main categories marketers use to assess global markets?

A

economic analysis using metrics, infrastructure and technology, sociocultural analysis, government actions

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3
Q

what are three major economic factors that marketers use to assess global markets

A

economic environment, market size/population growth rate, real income

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4
Q

define trade deficit and trade surplus

A

D: imports more than exports
S: exports more than imports

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5
Q

What is GDP and why can it be an important metric for firms when considering global expansion

A

Gross domestic product, market value of goods and services produced by a country in a year.

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6
Q

what is per capita income and why can it be an important metric for firms when considering global expansion?

A

overall income of a population divided by number of people included in population.

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7
Q

what is the Big Mac index and why is it useful for companies?

A

How much is a Big Mac in each country?

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8
Q

why are GDP and per capita income important metrics?

A

These metrics influence where you can make your product more or less expensively, your talent pool, and where you can sell it.

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9
Q

what are the two most important population trends we discussed in class?

A

global population increases, not spread evenly

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10
Q

what is infrastructure, and why is it important for companies to consider it when expanding?

A

the basic facilities, services, and installations needed for a community or society to function. Includes transportation, communication systems, water and power lines, public institution. For example, when bringing a wal-mart to India the store was a culture shift for citizens because they are used to family owned, shop-based stores rather than a megastore.

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11
Q

Define tariffs

A

tax on imported goods

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12
Q

define quotas

A

max quantity of a product that may be brought into a country during a specific time period

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13
Q

define dumping

A

when foreign producer sells its offering in a foreign market at a price less than its production costs to gain market share

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14
Q

define boycott

A

a group’s refusal to deal commercially with an organization to protect against its policies

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15
Q

define trade agreements

A

an intergovernmental agreement designed to manage and promote trade activities for a specific region

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16
Q

list each of Hofstede’s cultural dimensions

A

power distance, uncertainty avoidance, individualism, masculinity, time orientation

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17
Q

power distance

A

willingness to accept social inequality as natural

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18
Q

uncertainty avoidance

A

the extent to which the society relies on orderliness, consistency, structure, and formalized procedures of daily life

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19
Q

individualism

A

perceived obligation to and dependence on groups

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20
Q

masculinity

A

the extent to which dominant values are male oriented. Low= men and women are treated equally. High= male dominated positions of power

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21
Q

time orientation

A

short versus long term orientation. A country that tends to have a long term orientation values long term commitments and is willing to accept a longer time horizon for something to occur

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22
Q

what are the five global entry strategies we discussed in class? which are risky, which aren’t?

A

NON RISKY: export, franchising, strategic alliance

RISKY: joint venture, direct investment

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23
Q

define and give qualities of export

A

produce in one country and sell in another. Less costly.

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24
Q

define and give qualities of franchising

A

contractual relationship between firm and another firm or individual. Allows to operate a business using the name and business formation of the franchisor.

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25
Q

define and give qualities of strategic alliance

A

collaborative relationships between independent firms. They do no invest in one another.

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26
Q

define and give qualities of joint venture

A

when a firm entering a new market pools its resources with those of a local firm to form a new company in which ownership, control, and profits are shared

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27
Q

define and give qualities of direct investment

A

requires a firm to maintain 100 percent ownership of its plants, operation facilities, and offices in a foreign country

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28
Q

list the three global product or service sales strategies

A

sell the same product or service in both home and foreign markets,
sell a product or service similar to the one sold in the home market to the foreign market,
sell totally new products or services

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29
Q

list and define the components of STP

A

segmentation: who you will target
targeting: how you will target them
positioning: where in the consumer’s mind

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30
Q

what are the five steps in the STP process?

A
  1. establish overall strategy (SWOT)
  2. segmentation methods (separate and compare)
  3. evaluate segment attractiveness (large enough/buying power)
  4. select the target market
  5. developing positioning strategy
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31
Q

define and give an example of geographic segements

A

organizes customers into groups on the basis of where they live. e.g. region

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32
Q

define and give an examples of demographic segments

A

groups consumers according to easily measured, objective characteristics. e.g.HHI

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33
Q

define and give an example of psychographic segmentation

A

separates consumers by how they describe themselves, how people self-select based on the characteristics of how they choose to occupy their time and what underling psychological reasons determine those choices. e.g. values

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34
Q

define and give and example of geodemographic segmentation

A

uses a combination of geographic, demographic, and lifestyle characteristics to classify consumers. e.g. “bohemian mix”

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35
Q

define and give an example of benefit segmentation

A

groups consumers on the basis of the benefits they derive from products or services. e.g. a full service suite at a hotel accommodates clients requiring extended stay

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36
Q

define and give an example of behavior segmentation

A

divides customers into groups based on how they use the product or service. e.g. a family with school children will have to-go bags of potato chips for lunches.

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37
Q

What is VALS and why is it useful for marketers?

A

Value and lifestyle survey, classifies consumers into one of eight categories based on psychographics.

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38
Q

list the five terms marketers use to determine whether a segment in attractive to pursue

A

identifiable, sustainable, reachable, responsive, profitable,

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39
Q

identifiable

A

firms must be able to identify who is withing their market to be able to design products or services to meet their needs

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40
Q

substantial

A

once you’ve identified potential target markets, determine if the market is large enough and has enough buying power to generate sufficient profits or be able to support the marketing mix activities

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41
Q

reachable

A

can the market be reached/accessed? the consumer must know that the product or service exists, understand what is can do for them, and recognize how to buy it

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42
Q

responsive

A

the customers in the segment must react similarly and positively to the firm’s offering

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43
Q

profitable:

A

focus on assessment on the potential profitability of each segment, both current and future

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44
Q

list, define, and provide and example of each of the four targeting strategies we discussed in class

A

undifferentiated: mass marketing, e.g. salt
differentiated: several segments with offerings for each, e.g. magazine categories
concentrated: niche marketing, e.g.
micro: one to one, e.g. amazon

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45
Q

how does value proposition assist marketers in positioning their products?

A

the unique value that a product or service provides to its customers and how it’s better than and different from those of competitors

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46
Q

salient attributes

A

focus on attributes most important to the customer (e.g. volvo means safety)

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47
Q

symbols:

A

represent the brands

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48
Q

define perceptual maps and ideal points

A

map: displays, in two or more dimensions, the position of products or brands in the consumer’s mind
ideal: a specific spot on the map that shows where the customer’s ideal product would lie on the map

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49
Q

what are the five steps of the marketing process?

A

objectives, design research, data collection, analyzing, implementation

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50
Q

syndicated data

A

available for a fee from commercial research firms, e.g. gfk MRI

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51
Q

scanner data

A

used in quantitative research obtained from scanner readings of UPC labels at check-out counters

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52
Q

panel data

A

information collected from a group of consumers organized into panels over time

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53
Q

why is data mining useful for companies

A

use stat tools to uncover previously unknown patterns in the data or relationships among variables

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54
Q

what are examples of qualitative research

A

interviews, focus groups,

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55
Q

quantitative research examples

A

experiment, survey, scanner, panel

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56
Q

three advantages to secondary data

A

saves time in collecting data, free or inexpensive,

57
Q

three disadvantages to secondary data

A

may not be precisely relevant, information may not be timely, sources may not be original

58
Q

three advantages to primary data

A

specific to the immediate data needs, offers behavioral insights general not available from secondary research

59
Q

three disadvantages of primary data

A

costly, time consuming, requires more sophisticated training and experience to design, study, and collect

60
Q

how does the value proposition change when marketing new products/existing products

A

inform how meets needs/remind why use, or switch

61
Q

what are associated services and how can they help a firm’s value proposition?

A

non-physical aspects of product, such as warranties, financing, product support, after-sale service

62
Q

specialty products

A

products toward which customers show such a strong preference that they will expend considerable effort to search for the best suppliers, e.g. medical professionals

63
Q

shopping products

A

products for which consumers will spend a fair amount of time comparing alternatives, e.g. furniture

64
Q

convenience products

A

products for which the consumer is not willing to spend any effort to evaluate prior to purchase, e.g. bread

65
Q

unsought products

A

products consumers either do not normally think of buying or do not know about, e.g. iPhones

66
Q

define and provide an example of a firm’s product mix and lines

A

mix: complete set of all products offered by a firm
lines: groups of associated items that consumers tend to use together or think of as part of a group of similar products
e. g. Diederich college is mix, ADVE, PURE, CCOM, DGMD, JOUR, COMM, CMST, THAR is line

67
Q

Define and describe breadth and depth.

A

Breadth is how many lines a company has. Depth is how many products are in a line.

68
Q

How do firms decide to increase or decrease breadth and depth?

A

What is everyone else doing? Can we do it? If we do it, will they buy?

69
Q

How is branding to inform different from branding to differentiate?

A

Branding to inform is seeks recognition. Branding to differentiate is how these companies separate or distinguish themselves from other products or companies in their category.

70
Q

What are six positive things that brands can do for a company?

A

Facilitate purchase, establish loyalty, protect from (price) competition, reduce marketing costs, brands are assets, brands impact market value

71
Q

Define and provide an example of a licensed brand

A

Black and Decker gives logo to a company that makes appliances and gets portion of sales.

72
Q

What is a manufacturer brand? Give an example.

A

National brands, owned and managed by the manufacturer. E.g. “I need Tide,” rather than “I need laundry detergent.”

73
Q

List the four categories of private brands discussed in class.

A

Premium, generic, copycat, exclusive co-brands

74
Q

Define and give an example of premium brands

A

Private label, comparable or superior to manufacturer’s brand quality. E.g. Kroger’s private selection

75
Q

Define and give an example of generic brand

A

Price sensitive, no frills, at discount. E.g. Roundy’s

76
Q

Define and give an example of a copycat brand

A

Imitate manufacturer’s brand, perceived lower quality, lower price. E.g. Wal-Tussin instead of Robitussin.

77
Q

Define and give an example of exclusive co-brands

A

Only at a particular store. e.g. Macy’s Martha Stewart collection

78
Q

What is an exclusive co-brand and how can it help a retailer?

A

Marketing two or more brands together on the same package, promoting two brands, one product. Links from quality brand can enhance less well-known brand.

79
Q

list the two ways that firms name their brands.

A

brand licensing, brand re-positioning

80
Q

define and provide an example of brand licensing

A

a contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, symbols, and/or characteristics in exchange for a negotiated fee. e.g. Nintendo D.S. selling SpongeBob video game

81
Q

define and give an example of brand repositioning

A

also called rebranding, refers to a strategy in which marketers change a brand’s focus to target new markets or realign the brand’s core emphasis with changing market preferences. e.g. Gatorade from athletes to the masses, and back to athletes

82
Q

what is brand extension?

A

same brand name in a different line, an increase in product breadth

83
Q

what is line extension

A

use same brand name within product line, which increases the product line’s depth

84
Q

what is brand dilution?

A

occurs when the brand extension adversely affects consumer perceptions about the attributes the core brand in believed to hold.

85
Q

what are three ways that a company can prevent dilution

A

evaluate the fit between the product class of the core brand and that of the extension, evaluate customer perceptions of the attributes of the core brand and seek out similar attributes for the extensions, refrain from extending the brand name to too many products and product categories

86
Q

what is one pro and one con of a co-branding agreement?

A

pro: take on good qualities of a brand
con: sharing a reputation isn’t always a good thing (reverse of the pro)

87
Q

what are three key roles of product packaging?

A

attracts consumers’ attention, enables products to stand out from their competitors, offers a promotional tool

88
Q

define innovation

A

the process by which ideas get transformed into new offerings, including products, services, processes, and branding concepts that will help firms grow

89
Q

what are the two end points of the innovation continuum (list and define)

A

slightly repositioned and new-to-the-world

90
Q

list the categories of the diffusion of innovation

A

innovators, early adopters, early majority, late majority, laggards

91
Q

innovators

A

buyers who want to be the first on the block to have the new product or service

92
Q

early adopters

A

not as risky as innovators, but wait and purchase the product after careful review (not just based on “name”)

93
Q

early majority

A

members of this group don’t take much risk, wait until the bugs are worked out of a product or service

94
Q

late majority

A

the last group of buyers to enter a new product market; at this point, the product has achieved its full market potential

95
Q

laggards

A

consumers who avoid change and rely on traditional products until they are no longer available. they may never adopt a certain product or service

96
Q

define the product life cycle

A

defines the stages that products move through as they enter, get established in, and ultimately leave the marketplace and thereby offers marketers a starting point for their strategy planning

97
Q

list the categories of the product life cycle

A

introduction, growth, maturity, decline

98
Q

introductory stage

A

usually starts with a single firm, innovators are the ones to try the new offering

99
Q

growth stage

A

marked by a growing number of product adopters, rapid growth in industry sales, and increases in both the number of competitors and the number of available product versions

100
Q

maturity stage

A

characterized b the adoption of the product by the late majority, intense competition for market share among firms

101
Q

decline stage

A

firms either position themselves as niche products or exit the market

102
Q

what is the definition of marketing?

A

value

103
Q

what is the main concept of marketing? What does marketing help create?

A

Marketing creates values and benefits to customers.

104
Q

Describe the exchange that occurs when sellers and buyers meet.

A

Each party has something of value to the other.

105
Q

define each of the four P’s of marketing and provide an example

A

Product: goods and services
Price: everything the buyer gives up
Place: getting the product to the right customer
Promotion: communicating the product’s value to the customer

106
Q

what is an example of B2B and B2C marketing transaction?

A

B2B is TRG, B2C is anything individual

107
Q

what is the definition of value?

A

the relationship of benefits to costs, what the consumer gets for what they give

108
Q

what is the difference between transactional and relational customer relationships

A

transactional in when each purchase is an individual experience. Relational is when a long term relationship is established.

109
Q

What does CRM stand for and how is it useful?

A

Customer Relationship Management. It is useful because it tracks everything about a consumer.

110
Q

What is the definition of marketing strategy?

A

a firm’s target market, marketing mix, and the method of obtaining a sustainable competitive advantage.

111
Q

List and define the three macro strategies for developing customer value

A

Operational excellence: involves a firm’s focus of efficient operations and excellent supply chain management. Cheaper.
Customer Intimacy: involves a focus on retaining loyal customers and excellent customer service.
Product Leadership: involves a focus on achieving high-quality products. Newest, best products.

112
Q

What is a sustainable competitive advantage?

A

Something that a company can persistently do better than its competitors.

113
Q

characteristics of OE

A

To increase convenience, lower costs, obtain reliability, become easier to use

114
Q

characteristics of CI

A

high level of customization/service, offer a complete solution, access to a wide selection, obtain advice and consult, feeling of an experience

115
Q

characteristics of PL

A

access to high performance, linked with aesthetics and style, portray sophistication

116
Q

what are the three phases of the marketing plan? List and define them.

A

Planning phase: define the mission and vision of the business, evaluate the situation both inside and outside of the organization.
Implementation phases: identify and evaluate different opportunities using segmentation, targeting, positioning, and the 4 P’s
Control phase: evaluating the performance of the marketing strategy using marketing metrics

117
Q

what is a mission statement? why is it important for a company to develop a strong mission statement?

A

a missions statement is a broad description of a firm’s objective and the scope of activities it plans to undertake.

118
Q

list and define each of the components of a SWOT analysis. Which are inward and outward focused?

A

Strengths: what your firm does well
Weaknesses: where you are vulnerable, what you don’t do well
Opportunities: possibilities not yet realized
Threats: things you can’t control but must be aware of

119
Q

define stars

A

occur in high-growth markets and are high market share products. Often require heavy resource investment As market growth slows, starts become cash cows.

120
Q

define cash cows

A

occur in low-growth markets but are high market share products. have excess resources that can be spun off to other products.

121
Q

define question marks

A

appear in high-growth markets but have a relatively low market share. Do you increase the investment, or move on to something else?

122
Q

define dogs

A

in low-growth markets and have relatively low market shares. may generate enough resources to sustain themselves, but should be phased out at they will never become stars.

123
Q

list, define, and provide and example of the 4 E’s of social media

A

Excite: offer must be relevant–> personalized offers (amazon “frequently bought together”)
Educate: sell the product’s value proposition and offered benefits (Starbuck’s for iPhone)
Experience: provide information about a firm’s goods and services, simulating real experiences (car design program)
Engage: action, loyalty, and commitment (Zillow)

124
Q

market penetration strategy

A

employs the existing marketing mix and focuses the firm’s efforts on existing customers. Buy next product.

125
Q

market development strategy

A

employs the existing marketing offering to reach new market segments. new people.

126
Q

product development strategy

A

offering a new product or service to a firm’s current target market. new product same customers.

127
Q

diversification strategy

A

a firm introduces a new product or service to a market segment that it does not currently serve. new product new customers.

128
Q

define culture and discuss how it plays a role in marketing activities

A

Culture is the shared meanings, beliefs, morals, values, and customs of a group of people.
Influences marketing activities: risk tolerances, sales, likes/dislikes, products unique to certain regions

129
Q

what are some examples of regional culture?

A

“What do you call a carbonated beverage?”

130
Q

demographics

A

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

131
Q

what are the five steps in the consumer decision making process?

A

Need recognition, information search, alternative evaluation, purchase, post purchase

132
Q

define and provide an example of compensatory decision rules

A

the consumer trades off one characteristic against another. e.g. Marquette is expensive but it’s a Jesuit education.

133
Q

define and provide an example of non-compensatory decision rules

A

selecting a product or service on the basis of one characteristic or one subset of characteristics, regardless of the values of other attributes. e.g. only purchasing things made in the U.S.A.

134
Q

define and provide an example of decision heuristics

A

mental shortcuts that help a consumer narrow down choices

135
Q

what are three things that a company can do to deliver post-purchase customer satisfaction?

A

build realistic expectations, demonstrate correct product usage, stand behind the products (money back guarantees)

136
Q

define cognitive dissonance, provide an example

A

an uncomfortable state produced b an inconsistency between beliefs and behavior that in turn evokes a motivation to reduce the dissonance.

137
Q

what are three things that a customer can do to relieve cognitive dissonance?

A

take back the item, only focus on the good qualities of the decision, seek positive feedback to justify your purchase

138
Q

What are three things that a consumer can do to increase customer loyalty?

A

building a long-term relationship, loyalty cards, consistent employee contact

139
Q

define situational factors and provide three examples of how firms might use situational factors to increase consumer spending

A

factors specific to the situation that override or influence shopping decisions. ex: store atmosphere, salespeople, crowding

MARK 3001 (2 decks)

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