IBM 301 Flashcards
What is a marketing concept?
Idea that a firms long-term success must include a company-wide effort to satisfy customer needs.
What is strategic planning?
Process of thoughtfully defining a firm’s objectives and developing a method for achieving those objectives.
Why is strategic planning important to a firm?
Insures that marketers will select and execute the right marketing mix strategies to maximize success.
What is a situation analysis?
Systematic collection of data to identify the trends, conditions, and competitive forces that have the potential to influence the performance of the firm and the choice of appropriate strategies.
What is the BCG Matrix?
Most popular analysis tools to describe the current market. Boston Consulting Group (BCG)
Why is the situation analysis important?
Competition
What are the 4 basic marketing growth strategies?
Market penetration, product development, market development, diversification
What is market penetration?
Strategy of selling more existing goods and services to existing customers
What is product development?
Creating new goods and services for existing markets.
What is market development?
Strategy of selling more existing goods and services to new customers.
What is diversification?
Strategy to attract new customers by offering new products that are unrelated to the existing products produced by the company.
What are the 6 external factors affecting the marketing environment?
Sociocultural, Technological, Demographic, Legal, Economic, Political
What does the Economic factor of the marketing environment involve?
Recession, Income distribution, inflation, consumer confidence
What does the Sociocultural factor of the marketing environment involve?
Shift from single income to two-income families, ex: 60 year old hispanics
What percentage of new products fail?
80%
What would a competitive advantage might make a consumer do?
Switch
Less than what percent of world population lives in the U.S.?
5%
What type of need is shaped by personality, culture or buying situation?
A Want
The global network used to create and deliver products is referred to as the…
Supply chain
What are the 3 quality marketing objectives?
Specific, Measurable and Realisitc
What is an example of why licensing can be risky?
Secret formula given away or bad recognition
What is an example of why joint venture can be risky?
Could not get along
What is an example of why direct investment can be risky?
Don’t understand culture and ways of living
Which of the 5 global strategic options has the best return?
Direct Investment
What is inflation?
Increase in general level of prices of products in an economy over a period of time
What is demand analysis and which part of the 4 P’s is it?
Estimate how much customer demand there is for a particular product and understand the factors deriving that demand. PRICING
What is sales forecasting and which part of the 4 P’s is it?
Estimates how much of a product will sell over a period of time. PLACE
Advertising effectiveness studies and sales tracking are part of what from the 4 P’s?
PROMOTIONAL
What are the 5 steps to the marketing research process?
- Problem Definition
- Plan Development
- Data Collection
- Data Analysis
- Taking Action
What are the 3 types of research?
Exploratory, Descriptive and Causal
What is an Exploratory type of research?
Research that seeks to discover new insights that will help the firm better understand the problem or consumer thoughts, needs and behaviors.
What is an Descriptive type of research?
Research seeking to understand consumer behavior by answering the questions, who, what, where, when and why
What is an Causal type of research?
Research used to answer the cause and effect relationship among variables
What is probability sampling?
Sampling in which everyone in target population has a chance of being selected, and is known
What is quota sampling?
Sampling in which a certain number of participants is picked based on selection criteria such as demographics.
What is a qualitative analysis?
Info about qualities; info that can’t actually be measured. Ex: Color and smell
What is a quantitative analysis?
Info about quantities, can be measured and written down with numbers.
What is an MIS?
Marketing Information System; computer software that continuously help companies capture info and store it
What is DSS?
Decision Support System; computer program that enables access and use of info in data warehouse
What is data mining?
Process that involves the computerized search for meaningful trends in a large amount of data
What is competitive intelligence?
Involves systematically gathering data about what strategies direct and indirect competitors are pursuing in terms of new product development and the marketing mix.
What are the 5 steps to the consumer buying process?
- Problem recognition
- Info Search
- Evaluating Alternatives
- Making the purchase
- Post purchase evaluation
What is the evaluative criteria?
Attribute a consumer considers most important about product
What is a ritual consumption?
Patterns of consumptions repeated with regularity.
What is cognitive dissonance?
Mental conflict people undergo when when they acquire new info that contradicts their beliefs or assumptions. Ex: Free sirius radio for 12 months with car purchase
What is internal information search?
When consumers use their past experiences with items from the same brand or product class as sources of info. Ex: shampoo
What is external information search?
When consumers seek info beyond their personal knowledge and experience to support buying decision. Ex: new computer
What are 4 situational influences on a consumer?
Time, Social Factors, Personal factors and Global Factors
What does the PERSONAL FACTOR on situational influences on a consumer consist of?
Personality, Lifestyle and Values
What does the GLOBAL FACTOR on situational influences on a consumer consist of?
Country of origin effects
What is Country of Origin Effects?
Beliefs and associations people have about a country
What does the SOCIAL FACTOR on situational influences on a consumer consist of?
Family influences and family life cycle, Reference groups, opinion leaders
What does the TIME FACTOR on situational influences on a consumer consist of?
Consumer paying more to save time
What is derived demand?
When demand for one product occurs because of demand for a related product. (Ex: Olympic stadium and its construction)
What is priming?
Act of providing a stimulus to a subject or audience to improve the likelihood of a desired action on that subject’s part. Ex: Tv commercial
What does the psychological process of the consumer consist of?
Attitude, Learning, Motivation
What is a dissociative reference group?
People that the individual would not want to be like.
