Marketing Exam 1 Flashcards
Is ensuring that financial statements correctly reflect the value of the firm’s brands a core aspect of marketing?
No
Are Satisfying customer needs and wants, creating value, and an exchange process part of marketing?
Yes
Does marketing have to do with product, place, and promotion decisions?
Yes
What is it called when customers give up things that they value - for example, time, money, or information - to a firm in return for goods, services, or ideas?
A Marketing Exchange
What do the four P’s comprise?
Marketing Mix
What is the Marketing Mix?
The controllable set of activities that the firm uses to respond to the wants of its target market
What are Services?
Intangible customer benefits that are produced by people or machines, and cannot be separated from the producer
What is the goal of promotion?
To inform, persuade, or remind potential buyers about a good or service to influence their options and elicit a response
Do marketing firms focus on making a profit above all else to become more value driven?
No
What four activities do Marketing Firms focus on to become more Value Driven?
- ) Sharing information about their customers and competitors
- ) Striving to balance their customer’s benefits and costs
- ) Concentrating on building relationships with customers
- ) Taking advantage of new technologies such as social and mobile media
Do customers seek benefits and consider trade-offs among them, while also considering costs?
Yes
In Value-Based marketing, must the marketer seek the lowest cost of the goods and avoid expensive features to give customers the greatest value?
No
In Value-Based marketing, must the marketer find opportunities to meet as many needs as possible while also keeping costs down?
Yes
Firms that focus on the lifetime profitability of their relationships with their customers as opposed to how much money they make in each transaction operate under a ____________ orientation.
Relational
What is the distribution chain?
The group of firms that make and deliver a given set of goods and services
Do marketers advice the human resource department on the right type of employees to hire?
No
Do marketers advise how much of a product should be produced?
Yes
Do marketers advise the logistics department when it should ship products?
Yes
Do marketers create long-lasting relationships between the company and the firms from which it buys?
Yes
Do marketers assist the firm in whether or not to expand globally?
Yes
What are sources of a Sustainable Competitive Advantage?
Supply Chain Efficiency, A Strong Brand Name, and Customer Satisfaction
What can marketers develop a sustainable competitive advantage through if their products have high perceived value and effective branding or positioning?
Product Excellence
What document analyzes the current marketing situation, opportunities and threats for the firm, marketing objectives in terms of the four P’s, action plans, and pro forma financial statements?
The Marketing Plan
Which of the five steps of the strategic marketing planning process comes first?
Define the business mission
What does SWOT stand for?
Strengths, Weaknesses, Opportunities, Threats
Which parts of SWOT are internal?
Strengths and Weaknesses
Which parts of SWOT are external?
Opportunities and Threats
What happens in target marketing?
Evaluating of each potential segment’s attractiveness
What happens in the implementation stage of market planning?
Executing of pricing, promotion, place, and product strategies
What are measuring systems that quantify a trend, dynamic, or characteristic?
Metrics
What has high growth rate and a high market share?
Star
What has high growth rate and low market share?
Question Mark
What has low growth rate and high market share?
Cash Cow
What has low growth rate and low market share?
Dog
Is market development on of the four major growth strategies?
Yes
Are Mergers and Acquisitions part of the major growth strategies?
No
A firm’s macroenvironment includes ___________ factors, which the marketer cannot ___________________.
External; Control
What is the center of all marketing efforts?
The consumer
Are demographics a macroenvironmental factor?
Yes
Are changes in laws and regulations a macroenvironmental factor?
Yes
Are the firm’s competitors a macroenvironmental factor?
No
What is culture?
The shared meanings, beliefs, morals, values, and customs of a group of people
What is marketing?
A set of processes for creating, capturing, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders
Compared to other groups, members of the ______________ generation are more likely to marry and buy homes later in life, are more cynical, are shopping savvy, and are considered to be absolute customers.
Generation X
Must marketers monitor red/blue marketing in election years?
No
Must marketers monitor the green market?
Yes
Must marketers monitor privacy concerns?
Yes
What information provides marketers with a snapshot of the typical customer in a specific target market?
Demographics
Does Marketing entail an exchange?
Yes
What are the four P’s?
- ) Product
- ) Price
- ) Promotion
- ) Place
What does Product do in the four P’s?
Create Value
What does Price do in the four P’s
Capturing Value
What does Promotion do in the four P’s?
Communication Value
What does Place do in the four P’s?
Delivering Value
What is the fundamental purpose of marketing?
To create value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs
When marketers systematically collect, record, analyze, and interpret data in order to aid in decision making, they are engaged in…
Marketing Research
What uses a variety of statistical analysis tools to uncover previously unknown patterns in data or relationships among variables?
Data Mining
What type of data can be tailored to meet specific marketing research needs?
Primary
What is another word for Place (Four P’s)
Supply Chain Management
What describes all activities necessary to get the product to the right customer when the customer wants it?
Place
What is Promotion?
Communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their opinions or elicit a response
Is Marketing performed by individuals or organizations?
Both
What are the 3 Phases of a Strategic Plan?
- ) Planning
- ) Implementing
- ) Controlling
What are the 5 Steps of the Marketing Plan?
- ) Business Mission and Objectives
- ) Situation Analysis (SWOT)
- ) Identify Opportunities
- ) Implementing Marketing Mix
- ) Evaluating Performance Using Marketing Metrics
What 2 Steps of the Marketing Plan are in the Planning Phase?
- ) Step 1: Business Mission & Objectives
2. ) Step 2: Situation Analysis (SWOT)
What 2 Steps of the Marketing Plan are in the Implementation Phase?
- ) Step 3: Identify Opportunities
2. ) Step 4: Implementing Marketing Mix
What Step of the marketing Plan is in the Control Phase?
Step 5: Evaluate Performance Using Marketing Metrics
What does a Firm’s Marketing Strategy Identify?
- ) The firms target market
- ) A related marketing mix (4 P’s)
- ) The basis on which a firm plans to build a sustainable competitive advantage
What is a sustainable competitive advantage?
An advantage over the competition that is not easily copied, and thus can be maintained over a long period of time
What are the Four Macro Strategies to develop a sustainable competitive advantage?
- ) Customer Excellence
- ) Operational Excellence
- ) Product Excellence
- ) Locational Excellence
What is Customer Excellence?
Outstanding customer service and excelling at retaining loyal customers
What is Locational Excellence?
Physical excellence and internet presence
What is Operational Excellence?
Supply Chain Management, Relationship with suppliers, sophisticated information systems
What does STP stand for?
Segmentation, Targeting, and Positioning
What type of strategy is growing the business from existing customers?
Product Development and Market Penetration
Which Strategy is the riskiest?
Diversification
What does the Immediate Environment Include?
The company’s capabilities, competitors, competitive intelligence, and the company’s corporate partners
What does JIT stand for?
Just in Time delivery systems
Why are firms part of alliances?
Firms work together to create a system that delivers goods and services to customers when and where they want them
What does PEST stand for?
Political, Economic, Social, Technology
What is PEST used in?
Environmental Analysis
What does the Political part of PEST include?
Competitive Practice and Trade Legislation
What are Examples of the Economic part of PEST?
Foreign Currency Fluctuations and inflation and interest rates affecting firms’ ability to market goods and services
What are Examples of Social Trends?
- ) Health and Wellness Concerns
- ) Green
- ) Privacy
True or False: Technology is arguably the most important change in the way we live
True
Country Culture vs. Regional Culture
Goods can sometimes be removed by a company entirely and this may cause an uprise in a region that this good sells well in. This causes the company to only sell the good in that one region
Baby Boomers
Value Leisure time and are careless about how they spend
Gen Y
Children of Baby Boomers, Work/Life balance, marriage is secondary
Gen Z
High Purchasing power, internet, highly influenced by peers
Demographics
Provide an easily understood snapshot of the typical consumer in a specific target market
What is the center of everything in marketing??
The consumer
What is the key to STP
Understanding the consumer
What is the key to the marketing mix?
Understanding Needs
What are the steps of STP
- ) Dividing the marketplace into subgroups or segments
- ) Determine which of those segments to pursue
- ) Deciding how to position yourself and your products and services to best meet the needs of your target market
What comes after the situation Audit?
STP
What part of the 4 P’s are goods, services or ideas?
Product
Is Price (in the 4 P’s) cost based or market based?
Both
What part of the 4 P’s communicates, Persuades, and informs?
Promotion
What part of the 4 P’s delivers the product to the customer?
Place
What are the 5 steps of the consumer decision process?
- ) Need Recognition
- ) Information Search
- ) Alternative Evaluation
- ) Purchase
- ) Post Purchase
What are the two types of needs that customers fulfill?
Functional and psychological
What are the two types of information searches?
- ) Internal
2. ) External
What are 2 Factors affecting Consumer’s Search Process?
- ) Perceived Benefits
2. ) Perceived Costs
What are the 5 Types of Risks?
- ) Performance Risk
- ) Financial Risk
- ) Social Risk
- ) Physiological Risk
- ) Psychological Risk
What is Performance Risk?
The perceived danger inherent in a poorly performing product or service
What is Financial Risk?
The monetary outlay and includes the initial cost of the purchase, as well as the costs of using the item or service
What is Social Risk?
Worry others might not regard their purchase posatitively
What is Physiological risk?
Fear of an actual harm should the product not perform properly
What is Psychological Risk?
Risks associated with the way people feel if the product or service does not convey the right imagetri
What are the 3 Attribute Sets?
- ) Universal
- ) Retrieval
- ) Evoked
What are Universal Attribute Sets?
All possible choices for a product category
What are Retrieval Attribute sets?
Brands or stores that can be readily brought forth from memory
What are Evoked Sets?
Comprises the alternative brands or stores that the consumer states he or she would consider when making a purchase decision
What does Evaluative Criteria consist of?
A set of important attributes about a particular product
What are Determinant Attributes?
Product or service features that are important to the buyer and on which competing brands or stores are perceived to differ
What are Consumer Decision Rules?
A set of criteria that consumers use consciously or subconsciously to quickly and efficiently select among several alternatives
What is the conversion rate used for?
measuring how well retailers convert purchase intentions into actual purchases
What are the Psychological Factors that influence consumer decisions?
- ) Motives
- ) Attitudes
- ) Perceptions
- ) Learning
- ) Lifestyle
What are Motives?
Needs or wants that are strong enough to cause the person to seek satisfaction.
What is Attitude?
A person’s enduring evaluation of his or her feelings about behavioral tendencies toward an object or idea
What are the 3 components of Attitudes?
- ) Behavioral
- ) Cognitive
- ) Affective
What is Perception?
The process by which we select, organize, and interpret information to form a meaningful picture of the world.
Can Perception Change?
Yes
What is the difference between Learning and Lifestyle?
Learning affects both attitudes and perceptions
Lifestyle involves decisions in spending time and money
What are the Social Factors that Influence Consumer Decisions?
- ) Family
- ) Reference Groups
- ) Culture
Why is family important in customer decisions?
Many purchase decisions are made about products or services that the entire family will consume or use
What are Reference Groups?
One or more people who an individual uses as a basis for comparison regarding feelings, beliefs, and behaviors
What do Reference Groups Provide?
- ) Information
- ) Rewards
- ) Self-Image
What is Culture?
The shared meanings, beliefs, morals, values, and customs of a groups of people
What are the 2 Situational Factors?
- ) Purchase situation
2. ) Shopping situation
What is Marketing Research?
It consists of a set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can aid decision makers involved in marketing goods, services, or ideas.
What are the 5 steps of Market Research?
- ) Defining the Objectives and research needs
- ) Designing the research
- ) Data collection process
- ) Analyzing data and developing insights
- ) Action Plan and implementation
What are the 2 types of external secondary data?
- ) Scanner Research
2. ) Panel Research
What are the 4 types of Qualitative Research?
- ) Observation
- ) In-Depth Interviews
- ) Focus Groups
- ) Social Media
What are the 4 types of Quantitative Research?
- ) Experiments
- ) Survey
- ) Scanner
- ) Pannel
Observation often costs nothing. TRUE OR FALSE
True
What are the advantages to Secondary Research?
- ) Saves Time
2. ) Free or inexpensive
What are examples of secondary Data?
- ) Census Data
- ) Sales Invoices
- ) Internet Information
- ) Books
- ) Journal Articles
- ) Syndicated Data
What are Disadvantages of Secondary Data?
- ) May not be precisely what you want
- ) Might not be within recent time
- ) May not be original sources
- ) May use inappropriate data collection methods
- ) Data sources may be biased
What are examples of Primary Data?
- ) Observed Customer Behavior
- ) Focus Group
- ) Survey
- ) Experiments
What are Advantages of Primary Data?
- ) Specific
- ) Behavioral Insight
- ) Not available from secondary research
What are disadvantages of primary data?
- ) Expensive
- ) Time consuming
- ) Harder to do
What 2 Parts of STP are in segmentation?
- ) Strategy or Objectives
2. ) Segmentation Methods
What 2 Parts of STP are in Targeting?
- ) Evaluate Segment Attractiveness
2. ) Select Target Market
What part of STP is in Positioning?
Identify and Develop Positioning Strategy
What are the 5 types of segmentation?
- ) Geographic
- ) Demographic
- ) Psychographic
- ) Benefits
- ) Behavioral
What is Geographic Segmentation?
Regional: Continent, country, state, county
What is Demographic Segmentation?
Age, Gender, Income
What is Psychographic Segmentation?
Lifestyle, Self-Concept, Self-Values
What is Benefits Segmentation?
Convenience, Economy, Prestige
What is Behavioral Segmentation?
Occasion, Loyalty
What is the most common segmentation?
Demographic
What are the 5 determinants of segment attractiveness?
- ) Substantial
- ) Reachable
- ) Responsive
- ) Profitable
- ) Identifiable
What is a target market?
A group of consumers against whom we want to aim our marketing
How large should a target market be?
Large enough to represent a growth opportunity but narrow enough for our marketing to be relevant
What is Positioning?
The act of designing the company’s offering and image to occupy a distinct place in the mind of the target market
What are the 4 elements that help define the brand?
- ) Target Market
- ) Frame of Reference
- ) Point of Difference
- ) Product Attributes
What is Frame of Reference?
Consumer grouping of like products or services for which our brand can effectively substitute
What is Point of Difference?
Specific benefit we want consumers to primarily associate with our Brand
What is Product Attributes?
Most convincing and preemptive support (usually product-based)
Product Positioning Statement Example
To ______________________ (core user), Product ________________ is the ________________________ (Frame of Reference) that _______________________ (Point of difference).
What are the Components of a product?
- ) Actual Product (Name, Quality level, Packaging, Features)
- ) Associated Services (Financing, Product Warranty, Product Support)
What is a product Mix?
The complete assortment of products a company offers
What are Product Lines?
Groups of associated items that consumers tend to think of as a part
What is Breadth?
The number of product lines
What is Depth?
Number of products within a product line
What Makes a brand?
- ) Brand Name
- ) URLs
- ) Logos and Symbols
- ) Characters
- ) Slogans
- ) Jingles / Sounds
What is Brand Equity?
The set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service
