Marketing Exam 1 Flashcards
What is marketing?
Engaging customers and managing profitable customer relationships
Marketing Myopia
when companies fail to define products in terms of customers’ needs and wants (and recognize that those needs and wants may evolve)
What is the purpose of a mission statement?
Statement of an organization’s purpose, answering questions such as what the business is, who the customer is, what consumers value
Market-oriented mission statement
EX: We sell “The Starbucks Experience”
Product-Oriented Mission Statement
EX: We sell coffee and snacks
BCG Growth-Share Matrix
Product/Market Expansion Grid
What is the marketing environment?
All the actors and forces that influence a company’s ability to transact business effectively with its target market
Controllable factors in the marketing environment
Role of marketing, corporate culture, segmentation strategies, overall objectives: sales vs. profits vs. long-run existence
What are the 4 uncontrollable factors in the marketing environment?
Competitors, economy, cultural shifts, independent media
What is the microenvironment?
Actors close to the company that affect its ability to serve its customers
What are the 6 factors in the microenvironment?
Company, suppliers, marketing intermediaries, customer markets, competitors, publics
What is the macroenvironment?
Broader forces that affect the actors in the microenvironment
What are the 6 factors in the macroenvironment?
Demographic, economic, natural, technological, political, cultural
Global Product and Communication Strategies
The Marketing Research Process
- Identify the problem
- Develop research plan
- Conduct research
- Analzye and report findings
- Take action
What are the three objectives of research?
Exploratory, descriptive, causal
What is exploratory research?
Gathering background information
What is descriptive research?
understand the problem, describe the market potential for a new product, demographics
What is causal research?
test hypotheses to answer what-if questions
What is the difference between primary and secondary data?
Primary: info collected for specific purpose
Secondary: already exists somewhere
What are the 7 primary research methods?
Surveys, lab experiments, field experiments, focus groups, interviews, ethnographic, diaries
How do we establish causality in research?
Using random assignment
The Model of Buyer Behavior
Environment –> Buyer’s black box –> Buyer responses
What is contained within the environment of the model of buyer behavior?
Marketing stimuli: product, price, place, promotion
Other: economic, technological, social, cultural
What is in the buyer’s black box?
Buyer’s characteristics and decision process
What is contained in the buyer responses in the model of buyer behavior?
- Buying attitudes and preferences
- Purchase behavior: what the buyer buys, when, where, and how much
- Brand engagements and relationships
What are the 4 factors that influence buyer behavior?
Cultural (basic values, learned values), Social (groups, opinion leader), Personal (activities, interests, opinions), Psychological (Maslow’s hierarchy of needs)
What are the levels of Maslow’s hierarchy of needs?
Physiological, safety, love and belonging, esteem, self-actualization
What is laddering?
asking a series of questions to uncover the underlying motivations and values that drive consumer behavior, based on idea that consumers make purchasing decisions based on a hierarchy of needs, questions probe deeper and deeper into the hierarchy, “why, why, why”
What is selective attention?
We screen out most of the information we are exposed to
What is selective distortion?
The tendency to interpret information in a way that supports what you already believe (act of twisting the information)
What is selective retention?
How consumers remember information that supports their pre-existing attitudes and beliefs, while forgetting information that conflicts with them (we only remember what we want to)
What are the five states of the buyer decision process?
- Problem recognition
- Information search
- Evaluation of alternatives
- Purchase decision (starts long before and continues after with post-purchase behavior)
- Post-purchase evaluation (cognitive dissonances)
What is cognitive dissonance?
Buyer discomfort caused by post-purchase conflict
What is market segmentation?
Dividing large, diverse markets into smaller “segments”, can be reached more efficiently and effectively with products and services that meet their unique needs
What is market targeting?
selecting specific market segments
What are the 4 types of market segmentation?
geographic, demographic, behavioral, psychographic
What are the 5 requirements for effective segmentation?
Measurable, accessible, substantial, differentiable, actionable
What are the market-targeting strategies?
Undifferentiated marketing, differentiated marketing, concentrated marketing and micromarketing
What is undifferentiated marketing?
Mass marketing
What is differentiated marketing?
Segmented marketing, targeting several market segments and designing separate offerings for each
What is concentrated marketing?
Niche marketing
What is micromarketing?
Local or individual marketing
