marketing Flashcards
1
Q
What is marketing
A
set of business practices that present an organizations product in a way that builds customer relationships
2
Q
what is a target market
A
specific customer subgroups who would be interested in buying the firms products
3
Q
what are the four Ps of marketing
A
product, price, place, promotion
4
Q
goods vs service vs ideas
A
goods: items that you cna physically touch, marketed by their environmental benefits, performance taste etc.
service: customer benefits that cannot be separated from the producer (ue performances)
ideas: when you accept/adopt ideas from marketing campaigns you’re still a consumer
5
Q
B2C VS B2B
A
business to consumer vs business to business
6
Q
what are the four oreintations of marketing
A
product oreintation (first think of product, then try to sell if after it is developed)
sales orientation (focus on selling as much as possible, don’t focus on keeping consumers just attract new ones)
market orientation (make products based on what consumers actually want. profit comes from loyal customers)
value based orientation: combine all three, targets most what the customers they want, value
7
Q
what is a marketing strategy?
A
a marketing strategy identifies the firms target market, a related targeting mix (PRICE, PRODUCT, PLACE, PROMOTION), and a sustainable competitive advantage
8
Q
what is a competitive advantages?
A
advantage over other companies that can be sustained for a long time. pepsis competitive advantage is their loyal customer base, mass distribution, and celebrity endorsement
9
Q
how can you develop customer value(make the product/company appear valuable to customers) MACROENVIRONMENTAL FACTORS
A
- customer excellence (create a loyal customer base. customer relationship management-CRM. Loyalty programs make the customers happy, it also sells information to the brand). customer service also gotta be good.
- operational excellence. Efficient operations within the company (making sure the supply chain works well, the relationship with suppliers is secure), makes sure that things run smoothly.
- product excellence well no shit your product has to be decent
- locational excellence: location location location
you gotta combine all of these though
10
Q
what is a marketing plan (general definition)
A
a marketing plan is composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategies (4 PS)action programs, and projects
11
Q
what are the five steps of the marketing plan
A
- identify business mission and objectives (a MISSION STATEMENT) is usually necessary, it describes the firms objectives and activities)
- conduct a situation analysis (SWOT):
(strengths, weakness, opportunities and threats) - find opportunities for increasing sales and profits
- segmentation: divide the customer marketplace into separate segments, each with their own descriptions wants and needs
- target: decide which market to pursue and how to pursue them
- positioning: make the customers understand why they need your product - implementing marketing mix and allocate resources (the four ps, aka actually make the product)
step 5. evaluate the performance of the product using marketing metrics
12
Q
growth strategies
A
- market penetration: utilize the customers you already have, make them want you MORE
- market development: reaches NEW customers, makes new business
- product development: offers a new product to the customers that you already have
- diversification: introduce a new product, to a new target market
13
Q
What are microenvironmental factors (that affect customers)
A
company capabilities: can the company satisfy the customer needs
competition: the more competition, the more choices the customer gets
corporate partners
14
Q
macroenvironmental (external ) factors, that affect firms
A
country and culture, regional subculture, demographics, incomes, educations, ethnicity
the environment of the firm affects how well it can market its product. these are the things that change the environment around the firm
15
Q
firms become value-driven by focusing on which of the following activities:
a) building relationships with customers
b)balancing customers benefits and costs;
c) paying taxes
d) using technologies to connect with customers
A
a,b,d
16
Q
for which of the following reasons is marketing considered important?
a) Marketing expands global presence.
b)Marketing enriches society.
c)Marketing decides product costs.
d)Advertising is loved by everyone.
A
a,b
17
Q
Which of the following are true regarding market share?
It defines a product’s strength in a particular market.
It is what defines profitability.
It is responsible for inventory of the product.
It is the actual product.
It is the percentage of a market accounted for by a specific entitity
A
first and last
18
Q
What are some characteristics that describe Generation X?
Born between 1965 and 1981
Represents more than 2.8 million Canadians
Buying power estimated to be $260 billion annually
Latchkey children
A
1,2,4
19
Q
BLANK evaluations are used to idnetify areas where results are above or below planned levels and pinpoint problem areas
A
performance
20
Q
the political/legal environment consists of :
labour unions
laws and legislations
political parties
non profit organizations
A
2,3
21
Q
Which among the following takes decisions based on their own beliefs as well as expectations and does not adopt marketing easily?
A
gen y
22
Q
what is the consumer decision process
A
- needs recognition (funcitonal, psuchological)
- information search (internal search for information (their own experience), or external search ( other peoples experience).
- is it worth researching
- is it risky
- alternative evaluation (where can they buy)
- retrieval sets : stores you can remember
- evoked sets: the ONLY stores you would make the purchase at
- determinant attributes: attributes that are important to the consumer (price, quality etc) - purchase decisions (how to make it easier for them to buy)
- postpurchase
- customer satisfaction, dissonance, loyalty
23
Q
compensatory vs non-compensatory
A
compensatory : willing to make negotions
non compensatory: this attribute is so important that I’m not willing to make negotions
24
Q
maslows heircahy of needs
A
physiology (basics)
safety: protection
love
esteem
self actualization
25
attitidue:
cognititve componenet:
affective componenet:
behavioural component:
what we believe is true
what we feel about the issue
actions we take about what we feel
26
key challenges of reaching B2B clients
“Marketers must identify the right persons or decision makers within the organizations who can authorize or influence purchases. They must understand the buying process of each potential client. They need to identify factors that influence the buying process of potential clients.
27
B2B buying process
1. regonition: unfulfilled need
2. product specification: what specifics are needed of the product
3. RDP process: request for proposals, organizations invite suppliers to bid on supplying their required components (BID WAR FOR THEIR MONEY
4. proposal analysis: decide who one the bid wasr
5. order specifications (purchase)
6. vendor performance assessment using metrics :
28
what are determinent attributes
products or service features that are imporatnt to the buyer and on which competing brands or stores are perceived to differ
29
what is evaluative criteria
set of salient or important attributes about a particular product that are used to compare alternative products
30
segmentation targeting positioning process (STP ANALYSIS)
1. Establish overall strategey (must comply with SWOT analysis)
2. segmentation (demographic, psychographic
3. targeting: evaluate which segment you want to pursue (find out which markets don't overlap too much, are accessible, willing to spend money, responsible)
4. select the target market and the method with which you will purse;
- undifferentiated target marketing/MASS MARKETING (everyone would use the products the same, no need to develop different strategies. ie toilet paper)
- differentiated targeting strategy (target several target markets with different offerings for each. more risky !!)
- concentrated niche targeting strategy (go for a niche group)
- micro marketing (one to one services)
5. positioning strategy: manipulate consumers! how do you want them to view your company. play up how you're better than competitors
31
what cateogries can the segmentation base be separated into
geographic (continents, provinces, cities)
demographics (age, gneder, income)
psychographic (lifestyles, personality, socio-economic status)
32
occasion segmentation vs benefit segementation
1. products purchased for specific situations (ie. every day or a special day for a suit)
2. products purchased for specific benefits that the customer is looking for (ie. if you want to watch a movie, are you looking for something sad or happy)
33
segment profitablitity
(segment size x segment adoption % x purchase behaviour (purchase price x number of times the customer would buy during a time period) x profit margin (selling price and variable costs) - fixed costs
34
marketing rtesearch (part of the analysis part of the marketing plan ?)
1. define research problem and objectives
2. design the research plan
3. collect data
4. analyze data and develop insights
5. determine the action plan (prepares the results and then shows them to decision makers)
35
seconday data vs primary data
1. info collected prior to the project
2. info collected FOR the project
36
internal secondary data
data mining
big data
external secondary data
customer information and research history (good information, hard to sort through)
uncovering patterns in the data
data too big to sort through
buying/taking data from other companies (trade sources, newspapers, data bases, governments etc)
37
syndicated data
scanner data
pannel data
all external secondary ressources
1. available for a fee from research firms
2. scans information from UPC codes at check out
3. information collected from a group of customers over a period of time
38
Psychographics is a segmentation method that delves into how consumers actually Blank______ themselves.
describe
39
VALS shows Blank______ between psychology and lifestyle choices.
correlations
40
Firms position products based on methods including:
value
symbols
competition
product attributes
41
diffusion of innovation
when a new idea spreads through a market
42
pioneers
entirely new, never before seen, products
43
disruptive innovations
new products that arnt really new, theyres just cheaper or a little different and therefore disrupt the og products (think of movie theaters vs netflix)
44
innnovaters
early adoperts
early majority
late majority
laggards
innovators: buyers that want the first of everything (take risks)
early adopters: waits for reviews before purchasing (more careful). Opinion leaders (13.5% of the market)
early majority: very low risk, important for launches because they represent high % (34%)
late majority: by the time they enter the market, sales start declining
laggards: avoid change (16%)
45
how do companies develop new products (steps)
1. idea genertion
-internal research and development, expensive but useful
- licensing (buy ideas from other companies)
- brainstorming internal/external
- outsourcing (hiring someone to think)
- competitors products (take someones idea and change it)
customer input (ask em)
2. concept testing
- written description of that product, qualitatively or quantitatively present the idea to customers and gage reactions
3. product testing
- alpha testing (test the prototype within the firm)
- beta testing (test the prototype ith customers)
4. market testing
- premake tests (give products to small groups and gage from there)
- test market (launch the product, but to a small geographic area)
5. product launch
46
types of idea generation for new products
internal research and development, expensive but useful
- licensing (buy ideas from other companies)
- brainstorming internal/external
- outsourcing (hiring someone to think)
- competitors products (take someones idea and change it)
customer input (ask em)
47
product life cycle
1. introdiction stage (company is losing money)
2. growth stage (RIDE THE SALES)
3. mature stage (people are already side to it, adoption by the late majority, sales are going down,)
4. entry to new market (try new places due to market saturation)
5. declining stage u dead
48
types of products
specialty products (people are obssess, willing to spend time and money)_
shopping products (the basics, people dont think about it)
convenience (quick and easy no thought ramen)
usnought products (people forget they need them like fire extinguishers)
49
product mix
product lines
product category
stock keeping units(SKU)
all the prodcuts offered by a firm
products that are asspciated with each other
items that can be substitued for one another
smallest unit available for inventory control
50
early majority %
late majority %
laggards%
34
34
16
51
reverse innovation
take an already made product, revamp it and introduct to new market
52
What are the four fundamental differences between services and products
they are intrangible, inseperable variable, and perishable
53
knoweldge gap
difference between what customers want, and what managment THINKS customers want
54
standards gap
difference between what the managers thinks the customers want, and what the standards of the serivce should be
55
delivery gap
difference between what the company standers are, and the actual service that is delivered
56
communication gap
differnece between the actual service, and what was promised to the customers
57
what are the distinct service dimensions to determine service quality
reliability, responsiveness(how willing are employees) , assurance (courtesy of employees) , empathy, tangibles (appearence of the facility etc(
58
methods to reduce delivery gaps
empower employees, use technology, provide support and incentives for employes
59
identifye ways a kiosk can be used in a retail store
provide rain checks
submit credit applications
as a gift registry
60
Customers' perception of the fairness of a solution relates to their perception of the
they received compared with the
they incurred.
benefits
costs
61
profit oreintation
the main focus of the company is to maximize profits/focus on target profit pricing
target profit pricing: their overriding concern is a specfici profit goal
maximixing profits strategy: a mathematical model theey need to follow to figure out at whic price profits are maximized
target return pricing : other firms use this when their main goal isnt prift
62
sales oreintation
believes more sales will help with its profits
63
competitor oreintation
competitive parity: they set prices compared to those of their competitiors
64
customer oreintation
firm revolves around value: focuses solely on customer satisfaction, sets prices according to customer expectations
65
demand curves
straight diagonal line down: demand increases as price decreases
backwards C: to a certain point, demand increases as price increases, then as the price continues to increase demand decreases
66
price elasticity of demand (formula)
measurs how change in price affects how much demand there is for the product
price elasiticity = % change in quanitity demand / % change in price
if less than -1, price is elastic
if greater than -1, price is inelastic`
67
income effect
change in quantity of a produce demand3d by consumers because of the change in their income
68
substitution effect
the more options there are for a specific product, the higher the price elasiticity is for the product
69
price elasticity
determines the fluctuation between change in price and change in demand for product. if a product is inelastic, its demand doesnt change much depending on price
if a product is elastic, its demand will solely depend on price
70
variable costs, fixed costs, total costs
costs that vary with production volume
remain the same (rent, utiltites)
total cost (sum of variables and fixed costs)
71
break even analysis
break even points = fixed costs/contribution per unit
72
monopolu
oligopy
monopolistic competition
pure comp
one firm provides the service, less competition (eg. hydro)
a few firms control (leads to price wars)
a lot of firms are involved, customers chose based on uniqineess of product (eg. when buying sunglasses)
price is set by laws of price and demand
73
gray market
retailers sell products a t a smaller price than the manufacteres intended
74
pricing methods: cost based
cost based: dont consider consumers or competiton
competition based: prices are set compare to competition only
value based: what do customers think its worth
75
improvement value method
how much more are customers willling to pay for a product compared to other products
(improved value x benefit weight) = weight factor
76
cost of ownership method
consumers may be willing to pay more for a particualr product becasue, over its entire liefeitme, it will evnetually cost less to own than a cheaper alternative
77
every day low prices (EDLP)
this strategy ensures that the company contiunasly offers things at low prices. This increases value for customers, beacuse it reduces their search time
78
high/low pricing
stores continuously boast sales, attracts customers
79
price skimming
innovaters are willing to pay a higher price to get the new product first. ie. the company sets the price real high at first, lwoers it later
80
market penetration pricing
set the initial price low. this encourages more of a mass people to buy, so the company makes profit through volume as opposed to price skimming which makes prodits through margin
81
shrinkflation
decrease sizes while keeping the price consistent, consumers are more liekly to notice a change in price than a change in size
82
price lining, price bundeling , leader pricing
pricing tacticts aimed at consumers.
price lining, set a base and a ceiling for a line of products.
price bundling, buy products all together for a lower price
leader pricing: aggresvely promote a product
83
business to business pricing tactis
seasonal discounts, cash discounts, advertising allowences (ie if you feature our product in your store, we'll sell it to you for cheaper)
quantity discounts .
uniform delivered: one price no matter where the buyer is located
geographic pricing: diff prices
84
deceptive reference prices
lying about being on sale when there isnt an actual original price
85
loss leader pricing
lowers the price below the store cost
86
bait and switch
lure customers in with a discounted price and then convince them to buy something else
87
horizontal price fixing
different companies that produce the same product, work together to set a price
88
vertical price
different levels of the same marketing channel collude to control prices
89
______ are reductions retailers take on the initial selling price of the product or service.
markdowns
90
what are the components of a supply chain
suppliers, manufactoreres, warehouses, stores, transportation intermediaries
91
supply chain management
ways to effeciently integrate levels of the supply chain and make it seamless
92
logistics management
integration of activites from one point of the chain to the other. customer service, demand forecasting, distribution communications, inventory contorl etc
93
types of distribution channels
direct channel: B2C, from amnufactorer to consumer
indirect channel one intermediary: manufactorer to retailer to consumer
indirect channel two indermediary: manufactorer to wholesailer to retailer to custoemr
multichannel: uses both methods within the company
94
push vs pull distrubution tactic
push: focus is on promotional efforts (lots of time spent stocking retail)
pull: brings people to product, pulls them into your website/social media
95
distribution intensities
intensive: get the product out there, whereaver you can
exclusive: limited geographic areas (gancy shit)
selective: mix of both
96
distribution center
a facility for the receipt, storage, and redistribution of goods to company stores or customers
97
vertical vs horizontal channel conflict
vertical: supply chain for individual store (ie. manufactorer to wholesailer to retailer)
horizontal: conflict occurs between the same level of the supply chain
98
indepent vs corporate distribution channel
every part of the channel is its own company, wants its own things
one corporation owns another, same goals
99
logistics flow management
flow 1. customer to store: information about the things that customers purchase, gets logged by the store.
- universal product code (UPC bar code)
- radio frequency identification (RFID)tags
flow 2. store to buyer
- the data from the customers gets sent to corporate. used to moniter what they should buy more/less of, promote, etc
flow 3. buyer to manufactorer
depending on what thye need more of
flow 4. store to maufactor
sometimes store skips the buyer and goes straight to manufactorer
flow 5 store to distribution
same thing
100
electronic data interchange (EDI)
online exchange of data and business documents between vendors and stores.
101
vendor managed inventory (VMI)
manufactorer is the one responisble for stocking in retail stores. theyre kept uptodate on stock vie EDI, and automaticall y send studd
102
administered vertical marketing system
channel members are indepenednt, but one hovers over everything
103
Just-in-time systems are also known as:
Just-in-time systems are also known as:
104
livestream shopping
pairs online livestreaming with an e-commerce site
105
share of waller
the percentage of the customers purchases made from that particualr retailer (use customers browsing information to send them personalized emails)
106
Unlike Estée Lauder, which is a large and established firm with the resources to provide itself with its own sales force to sell its products, smaller firms will probably need to rely on which of the following to help to distribute their products?
Supply chain intermediaries
107
creating a consistent experience across all changels is known as a strategy
omnichannel
108
Which of the following is not a type of retailer that falls under the general merchandise retailing category?
wholesaler
109
integrated marketing communications (promotion)
emcompases a lot of communication disciplnes
110
steps in creating an integrated marketing communication (IMC) campaign
1. identfy the target audience
2. set objectives
3. determine budget
4. convey message
5. evaluate and select media
6. create communication 7. asses impact
111
Which of the following attempts to motivate the retailers to purchase
one firm’s product, rather than the products of competitors?
A) advertising plan
B) informative advertising
C) push strategy
D) pull strategy
Test Your Knowledge
c
112
objective and task method of budge pricing
budget is based on specific tasks that need to be accomplished
113
competititve parity budgeting IMC
all companies spend the same on advertising
114
percentage of saled budgeting IMC
based on a fixed percentage of forecasted sales
115
affordable budgeting imc
use whats left over. doesnt stimulat sales nad profit
116
the aida model
attention, interest, desire, action ( how to get customers to buy)
117
informative advertising
educate about a promotion or service
118
persuasive advertising
in the growth and the early maturity stages of the PLC when competition is intense
119
reminder advertising
after the product has gained acceptance, uses the top of mind awarness
120
compeitition bureau of canada
ensures that businesses are being ethica;
121
canadian radio television and delecommunications commision
regulates canadian broadcasting system
122
HEALTH CANADA FOOD AND DRUG ACTS
REGUALTS FOOD AND COSMESTICS
123
advertisintf standards canada
moniters voluntary advertising industry codes
124
consumer sales promotions
coupons, deals, premiums, contests etc
125
the personal selling process
1. generate leads
2. preapproach (prepare)
3. sales prpesentations
4. closing the sale
5. following up
126
Imagine that a firm sends out a message in the form of a print advertisement for a product. Which of the following elements is most likely to contribute to how receivers decode the message differently?
Whether or not the receiver is a user of the firm's product
127
Which of the following are bodies in Canada which influence the way companies may advertise in our country.
provincial, federal government, self regulatory agencies
128
Why is the first part of a sales presentation the most crucial part of the selling process?
It is when the salesperson learns where the customer is in the buying process.
129
True or false: In comparison to personal selling or mass media advertising, the cost of reaching consumers is much lower with direct marketing.
true
130
what is a premium
something that rrwards customer bheaviour ie you get a lil prize
131
During which phase of the strategic marketing planning process do
firms identify potential markets & ways to deliver the 4P’s?
A) Implementation
B) Control
C) Brainstorming
D) Planning
Test Your Knowledge
17
a
132
Evaluating whether or not all company employees have behaved ethically occurs during the Blank______ phase of the marketing plan
control
133
