Marketing Theory Flashcards
1
Q
Article from Hunt
A
Nature of marketing and general theories, and explanation of those
2
Q
What article is about nature of marketing and general theories, and explanation of those
A
Article from Hunt
3
Q
What is in marketing’s focus, where is it present, and through what categories it can be examined?
A
1) Main focus of marketing is on exchange relationship
2) Marking is present in both profit and non-profit sectors
3) Marketing can be analysed through looking at three contrasting categories what are profit/non-profit, micro/macro, and positive/normative
4
Q
Purpose of the theory and consensus
A
Theory creates a systematic structure to explain and predict given phenomena
Consensus: something is according to the writings of philosophers of science, social science, and marketing theorists
5
Q
Hierarchy of effects model
A
Tries to explain how consumer responds to marking by the hierarchy of thinking, feeling, and doing
6
Q
Low involvement model
A
Suggests that for trivial products, the consumers interests are so low that they will respond to advertising through a hierarchy of cognition, conation, and affect (rather than cognition (thinking), affect (feeling), and conation (doing)
7
Q
Integrated Information Response Model
A
Attempts to unify both the traditional and low involvement models
8
Q
The five domains in marketing science
A
1) The behaviours of buyers is directed at completing exchanges
2) The behaviours of sellers is directed at completing exchanges
3) The institutional framework is directed at completing and/or facilitating exchanges
4) The consequences on society of the behaviours of buyers, the behaviours of sellers, and the institutional framework directed at completing and/or facilitating exchange
5) The process leading to value creation and exchange
9
Q
Structural forms of theories
A
1) A hierarchical form: one whose component laws are deductions from a very small subset of basic principles or axioms
2) A collection of sub-theories form: take several smaller theories and combine them in a systematic fashion.
10
Q
Article from Bagozzi
A
It is focused on exchange from different perspectives
11
Q
It is focused on exchange from different perspectives
A
Article from Bagozzi
12
Q
Three types of exchange
A
1) Restricted exchange: happens between two parties between who both parties receive from and give to another one, called in latin quid pro quo relationship
2) Generalised exchange: Univocal reciprocal relationship between at least three parties who only give something to another party. Therefore, there is no direct benefit gotten after the transaction
3) Complex exchange: Here at least three parties are having direct exchanges at least with one parti in both direction, give to and receive from. There is also a interconnecting web what connects all the parties
13
Q
Explain media of exchange
A
The vehicles (money, persuasion, punishment, power, inducement, and activation of normative or ethical commitments) with which people communicate to, and influence, others in the satisfaction of their needs. Products and services are also media of exchange
14
Q
Explain meaning of exchange
A
Exchange is more than the mere transfer of a product or service for money. It is a action and reaction to it put together.
15
Q
Types of marketing exchange
A
Utilitarian, symbolic, or mixed
16
Q
Utilitarian exchange
A
Goods are given in return for money or other goods and the motivation behind the actions lies in the expected use or tangible characteristics commonly associated with the objects in the exchange
built on the foundation of economic man. Thus, it is assumed that:
1) Men are rational in their behavior.
2) They attempt to maximise their satisfaction in exchanges.
3) They have complete information on alternatives available to them in exchanges.
4) These exchanges are relatively free from external influence
17
Q
Symbolic exchange
A
Mutual transfer of psychological, social, or other intangible entities between two or more parties
18
Q
Mixed exchange
A
This exchange involve both utilitarian and symbolic aspects, and it is often very difficult to separate the two.
19
Q
Social marketing
A
Social marketing, then, addresses a particular type of problem which, in turn, is a subset of the generic concept of marketing.
Social marketing is really a subset of the generic concept of marketing in that it deals with the creation and resolution of exchanges in social relationships.
Social relationships (as opposed to economic relationships) are those such as family planning agent-client, welfare agent-indigent, social worker-poor person, and so on.
20
Q
Discussion on marketing what is based on a service logic and to analyse if and how this perspective fits the marketing of goods
A
Article from Grönroos
21
Q
Article from Grönroos
A
Discussion on marketing what is based on a service logic and to analyse if and how this perspective fits the marketing of goods
22
Q
How services differ from physical goods?
A
Their processing nature is “open” where customers participate as co-producers and can directly influence the progress of these processes.
23
Q
How consumers consume physical goods?
A
It happens in a “closed system” and is a black box for a company because it doesn’t see the exact process of consumption
24
Q
How service marketing changed marketing approach?
A
Marking approach started to be directed towards facilitating interactions during the consumption process rather than only making the exchange. Without successful interactions, continuous interactions will not take place.
25
What is external and interactive marketing functions?
Traditional external function focuses on advertising, market research and direct mail while interactive marketing function focuses on other things like making interactions when production and consumption are happening.
26
What is a service?
Service focuses on value creation rather than a category of market offerings and supporting value creation for a customer.
27
What is the difference between value-in-use and value-in-exchange?
Value-in-use is created when consumer uses the product himself in daily life and creates a value for himself, not by the producer. Value-in-exchange means that no matter what will happen later, customer gets a product value already in exchange of it, not in the later use.
28
What extended consumption concept takes into account?
It takes into account the fact that consumption is not only a consumption of physical goods as value-in-use process, but also the experience of a purchase, interactions made at every point connect with the product by the supplier and so on.
29
Article from Teece
Article about business model nature
30
Article about business model nature
Article from Teece
31
What is business model?
A business model defines how the enterprise creates and delivers value to customers and then makes payments turn into the profit
32
What a successful business model must have to be successful?
It needs to be more than just a good logical way of doing business. It also needs to be made in a way so it would meet a particular customer needs.
33
Explain ECR and CSR
Efficient Consumer Response and Corporate Social Responsibility
34
How have old marketing theories formulated a good marketing formula?
Rasmussen: Optimising selling price through production costs
Ottesen: Maximising profit by optimising the offered product and communication with customer
McCarthy: find balance between 4 P's - Product, price, production, and place
Porter: Monitoring the competitive environment and adjust own offer by the direction in the market
35
Article from Van Raaij
Article about global products and how communication campaigns need to take into account cultural differences
36
Article about global products and how communication campaigns need to take into account cultural differences
Article from Van Raaij
37
What is dominant culture of a country?
It relates to basic cultural assumptions, history, national ethic, religious and social values
38
What is culture of organisation?
It is an organisational identity consisting from signs (symbols, heroes), communication (verbal, and visual messages), rituals and behaviours that characterises the organisation over time.
39
What is a material culture of commodities?
It consists from products, brands, stores, supermarkets, product and store designs, and product advertisement.
40
What is a consumer culture?
It consists from goods and services. In this culture, there might be a dominant culture, but at a closer look we can find many culture what are related to region, age, income, social class, and other consumer characteristics.
41
What are the four dimensions Hofstede found on what national cultures differ?
1) Power distance: The distribution of power; degree of equality; degree of emphasis on hierarchy
2) Uncertainty avoidance: Degree of feeling threatened by uncertainty, ambiguous, risky situations
3) Individualism/collectivism: Degree of individualism versus group belongingness; group loyalty
4) Competitiveness: Degree of competition between people versus caring for each other. At the same time, Hofstede used here masculinity and femininity. Masculine values are assertiveness and competition, whereas feminine values are nurturing and caring for others
42
What is a horizontal culture segmentation?
Horizontal segmentation takes into account cultural differences within one nation/region leaving out differences between different nations/regions. From this segmentation, one specific segment can be approached in one nation if there will be enough media to reach it
43
What is a vertical culture segmentation?
Vertical segmentation ignores cultural differences within one region and only takes into account differences between different regions
44
What is etic and emic approaches? What is the difference?
Etic products and communication uses culturally neutral approach so it can be used in different regions without any changes.
Emic approach uses culture specific approach. Therefore, communication and products differ from region to region.
45
What is formal equivalence and functional equivalence of campaign?
Formal equivalent campaign is completely standardised and identical in in different cultures and regions.
Functional equivalent campaigns have an identical mission and communication objective but use different concepts to spread the same message in different cultures
46
Into what four levels can be communication divided using emic/etic and universal/unique continuum?
1) Mission: Overall, long-term objective of a sender and its communication to target groups. Mission is different depending on a identity, personality, vision and/or credo of the communicator
2) Proposition: It is the campaign theme or a more specific objective of the communication campaign. It plays a role of the link between the sender and the receiver.
3) Concept: The creative concept is the "translation" of the proposition into the language and culture of the target group in order to increase the appreciation and understanding of the message.
4) Execution: It is the style, visual aspect of the campaign and the presenter in it
47
Explain Usuniers model
A process model where you can integrate an understanding of what is known about culture and how other cultures act with attitude towards action.
Time: M-time - Schedule is set and followed; if any problems then conversation is stopped. P-time - Many things are done at the same time and process is flexible
Space: Groups cultures live close to one another; Individualistic cultures appreciate private space. In-group has it's own rights and obligations; Out-group assumes all people are equal with the same rights.
Time and space influence the concept of yourself and others. It affects if you’re willing to be a member.
Locus of control - how much people believe that they have control of situations that affect their lives.
48
What Hofstede value dimensions show?
One axe is Power distance and another is individualism. Those countries that are higher in collectivism also tend to be higher in power distance and those higher in individualism also tend to be lower in power distance.
49
Article from Bettman
Constructive consumer choice processes
50
Constructive consumer choice processes
Article from Bettman
51
What does a term "non-comparable" mean?
When the attributes defining the decision are different.
52
Name four primary aspects that characterise choice strategies.
1) The total amount of information processed
2) The selectivity in information processing - selective processing is when different amount of information is processed about each of attribute; consistent processing is when same amount of information is processed about each attribute
3) The pattern of processing
4) Whether the strategy is compensatory or non-compensatory - In a compensatory strategy, one good value attribute can compensate for a poor value of another attribute. In non-compensatory, that cannot happen.
53
Name 7 specific decision strategies
1) Weighted adding strategy (WADD) - Extensive, consistent (not selective), alternative-based, and compensatory processing
2) Lexicographic strategy (LEX) - The alternative with the best value on the most important attribute is selected
3) Satisficing (SAT) - Alternatives are considered sequentially and are compared to the cut-off level for every attribute. If any attribute does not meet the cut-off level then considering it is ended right away
4) Elimination-by-aspect (EBA) - Combination of LEX and SAT. Here the most important attribute is compared to the cut-off number. After this round the second important attribute is checked and so on until only one product is left
5) Equal weight strategy (EQW) - Here all attributes have equal weight and are summed up to get the total value for the alternative. An alternative with highest final value is selected
6) Majority of confirming dimensions strategy (MCD) - Alternatives are compared pairwise on each attribute. An alternative wins what has more better attributes. Then new pairs of winners are made and it continues until the one final winner remains
7) Frequency of good and/or bad features (FRQ) - Consumer counts good and bad features in every alternative and also creates a cut-off levels to specify good and bad features
54
Describe two Payne's frameworks for understanding choice making
1) A cost-benefit approach - Consumer chooses a decision making strategy by finding a compromise between the wish to make a good decision and minimising effort to make it
2) Perceptual approach - this approach says that decision maker strategy choice depends on how the problem is framed for a choice maker.
55
Article by Holbrook and Hirschman
This article is about the recognition of important aspects what come from the experience of consumption itself
56
This article is about the recognition of important aspects what come from the experience of consumption itself
Article by Holbrook and Hirschman
57
What is a Grand Flow theory?
It is a model of decision making and all stages of it. Stages are: 1. Information input, 2. Information processing, 3. Decision-process stage, what is influenced by Decision process variables and External factors
58
What is an Attitude theory?
It is called Fishbein model what is a formula where attitude towards "x" equals with a multiplication of the belief (B) that "x" has an attribute O and the evaluation (E) of attribute O
x = B * E
59
Explain Elaboration Likelihood model
Depending what is the Motivation, Ability, and Opportunity, people put different amount into topic elaboration. Depending on that, they might choose a Central Route if the elaboration was high, or a Peripheral Rout if the elaboration was low to process the decision.
Central Route: Here we weight pros and cons using a critical thinking and putting a lot of attention into the decision making
Peripheral Route: Here we put less attention into the decision making and might be influenced with different cues what are not relevant for this decision like celebrities using the product etc.
60
What are the four main areas of B2B buying?
1. The changing landscape of B2B buying (BuyGrid model)
2. Increasing seller sophistication (Merton's motivation-ability framework)
3. The impact of technological changes (Digital information technologies; Digital manufacturing technologies)
4. Increasing importance and growth of emerging markets
61
From what Integrative model of industrial buyer behaviour consists?
1 (expectations): perceived potential of alternative suppliers to satisfy a number of explicit and implicit objectives in any particular buying decision
1a (background of individuals): The different educational backgrounds of the purchasing agents, engineers, and plant managers often generate substantially different professional goals and values.
1b+1c (Information sources and active search): type of information each of the decision makers exposed to and his participation in the active search. Information is often partial and biased toward the supplier of the brand.
1d (Perceptual distortion): each individual strives to make the objective information consistent with his own prior knowledge
1e (satisfaction with purchase): Often it’s not possible for a supplier or brand to provide equal satisfaction to the three parties because each one has different goals or criteria.
62
In what B to B buying process differs from B to C ?
Fewer buyers and sellers, more people involved in the decision, derived demand, more rational/less emotional decisions, more long term and more complex, "existential" importance of make or buy
63
What types of purchases BuyGrid model includes?
New tasks (first-time buyer who seeks for a lot of information), modified re-buy (here buyer wants to get a better deal or change the product specification), and straight re-buy (buyer has a re-purchase routine and wishes no modifications; buyer stays as long as it is satisfied)
64
Who revised the BuyGrid model?
Grewal
65
What did Grewal?
Revised the BuyGrid model
66
Market orientation – the construct, research proposition, and managerial implications
Article by Kohli and Jaworski
67
Article by Kohli and Jaworski
Market orientation – the construct, research proposition, and managerial implications
68
Name three pillars or core themes of marketing concept
Customer focus: It is a central element of market orientation what suggests to behave according to market intelligence, not on customers’ verbal opinions
Coordinated marketing: Market orientation is not solely marketing department responsibility. Many departments need to know customer needs and act according to them
Profitability: Profitability is taken as a result of a good market orientation, not part of it
69
What is a market orientation in the big picture?
It is a generation, responsiveness, and taking action throughout the whole organization
70
What in marketing orientation is intelligence generation and what it consists from?
It consists from consumers' verbal needs and wishes, but also from an analysis of outside factors what influence consumers like technology and government regulations, etc.. In generation process not only marketing department is included for a broader analysis of current and future needs of a consumer.
71
What in marketing orientation is intelligence dissemination (spreading knowledge widely) and what it consists from?
Market intelligence needs to be shared with different departments for everyone to have the same knowledge about consumer needs. It can be just shared or sometime even sold depending on where and by who the intelligence was created.
72
What in marketing orientation is responsiveness and what it consists from?
Responsiveness is the action taken in response to intelligence that is generated and shared.
73
How is market orientation formally defined?
Market orientation is the organisation-wide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across departments, and organisation-wide responsiveness to it.
74
Who wrote an article about shortening of a life cycle of a product and a bigger need for more variety?
Costa
75
About what Costa wrote?
An article about shortening of a life cycle of a product and a bigger need for more variety
76
What activities are included into Quality Function Deployment (QFD)?
1. Product Quality Deployment is about using quality required by consumers to make specific changes to a product.
2. Deployment of the Quality Function is about checking if the quality required by consumer is achieved after putting into production.
77
What is and from what parts House of Quality (HOQ) consists?
Purpose is to transfer customer quality requirements into the end product.
1. The voice of the consumer: list of requirements and how important one or another product attribute is
2. The strategic planning room: Here the goals is a clear vision of where company with it's competitors are on the market and what are the consumer's wishes. Finally to connect it with company's strategy
3. The voice of company: Find a way of how it is possible to meet consumer wishes and company makes here a divided lists like design requirements, etc.
4. The technical correlation roof: this part searches for what requirements are dependent on each other to shorten the way to satisfy them
5. The relationship room: the core part of House of Quality where relationships of voice of consumer and company are shown
6. The technical priorities room: Assessment of the current product on the market happens here and it shows how competitive is the product on the market.
78
About what is Peters article?
A Framework and guidelines for managing social media
79
Whose article was about framework and guidelines for managing social media?
Peters
80
What is SOR paradigm?
Stimulus => Organism => Response
Marketing input is Stimuli like advertising, prices, etc.
Organism is Social media
Response is either specific like a brand management (liking and awareness) or a general thing like a profit, market share, etc.
81
Explain MOS paradigm
Motivation (wish towards something), Opportunity (time to get the attention), Ability (skill to use the given information)
Motivation has three sub-elements:
1. Intellectual value 2. Social value 3. Cultural value
82
What helps to generate value throughout the whole value chain?
Generation, dissemination, and response to customer insights
83
Whose article is about development of Marketing theory?
Hunt
84
About what is Hunt's article?
Article is about development of Marketing theory
85
Explain Inductive (tuletatud) realist model of theory generation in Hunt's article
Model is explaining the process that leads to new theory proposals.
Process starts from a current knowledge about something and someone recognises a problem in those existing theories. Next comes a creation of missing parts like relationships, attributes, entities after what comes new theory proposal. Then theory is being used to give some explanations and predictions. There are some external factors what influence that part and either theory success or failure.
86
Who wrote about Corporate social responsibilities?
Garriga and Melé
87
About what did Garriga and Melé write?
About Corporate social responsibilities
88
Name four main groups into what we can divide CSR theories
1. Instrumental theories: Here, CSR is seen as a strategic tool to achieve economic goals and is used to create wealth
2. Political theories: These theories focus on connections between business and society. They include into CSR discussion both political and business part and analysis
3. Integrative theories: These theories argue that business depends on social demand. Society interacts with business by showing it's demand and business should integrate the demand in the way they function
4. Ethical theories: Here theories focus on the ethical part of the society and that it is the start of the relationship between business and society
89
What is a TIU approach to build marketing theories?
TIU is a Theories-In-Use approach where theories what are used are researched from an individual mental model perspective.
It starts with finding a clear research object. If it is not well defined then it before the research start it is clarified. After that a statement is developed with arguments supporting it. After having a couple of conversations, researcher comes up with some statements what are examined to find out if they add something new to the existing literature or not.
90
Name two types of ethics
1. Teleology: Consequences are in the focus, not the process or intentions
2. Deontology: Focuses on rules and intentions of actions
91
What model was made by Hunt and Vitell?
The model shows what are the steps of resolving ethical problem
It starts with seeing the problem. Then all the possible options are found to resolve the problem. Next comes two types of evaluation: deontological and teleological. After comes the core of the model: intentions of people who need to make a decision influence their behaviour. Action control shows to what extent individual actually acts towards the intention in a specific situation.
92
About what Mittelstaedt and Kilbourne did write?
About agorology
93
Who wrote about agorology?
Mittelstaedt Kilbourne
94
What is a theory?
It is a proposition what has to be clearly defined and form a total picture. From a theory existing generalisation can be derived. Theory must be able to give a base for expanding the horizon of knowledge also in the future.
95
What is macromarketing?
It studies the impact of society on marketing and vice versa. It emphasises social and cultural orientation rather than managerial orientation. Market is viewed as a whole system, not as specific individual exchanges. If focus of analysis in macromarketing is market or market system.
96
About what Bech-Larsen, Aschemann-Witzel wrote?
About food safety regulation
97
Who wrote about food safety regulations?
Bech-Larsen, Aschemann-Witzel
98
How to design food safety regulation?
Firstly, the map should be done what shows important exchanges and stakeholders what describe relevant marketing system.
Using this map, three independent decisions has to be made:
1. which type of exchange to regulate
2. at which level in which supply chain to regulate them
3. which regulatory instrument to use
99
Describe micro-, meso-, and macromarketing
Micro: influencing economic and psycho-social factor like prices, attention, etc. on behaviours of individuals and sellers
Meso: Influence of institutions and competitive structures on the strategies and performance of industries and value chains
Macro: The interaction between society and marketing and it's influence on economic growth and stability, environmental issues, health, welfare, and culture
100
Who wrote about critical contribution of social marketing and relationship between social, commercial, and critical marketing?
Hastings and Saren
101
About what Hastings and Saren wrote?
They wrote about critical contribution of social marketing and relationship between social, commercial, and critical marketing
102
Name three views on what marketing is and should deal with
1. Apologists say that marketing is good because it helps economy and it belongs to the company
2. Social marketers focus the power of marketing on social good to compensate some gaps by that.
3. Recinstructionists are critical of marketing concept and process
103
Name Kotler's exchange prerequisites
1. At least two parties participate
2. Each party has something that might be of value to the other party
3. Each party is capable of communication and delivery
4. Each party is free to accept or reject the offer
5. Each party believes it is appropriate or desirable to deal with the other party
104
Types of exchange
1. Goods are exchanged for money - Utilitarian exchange
2. mutual transfer of psychological, social or other intangible entities - Symbolic exchange
105
Explain relationship marketing
In this marketing, focus has shifted from sales to customer loyalty and keeping them. Communication happens on the basis of individual preferences, not the same for everyone. IT has enabled for consumer to create their own identity within the brand
106
Explain critical marketing
Critical marketing comes from Arnold and Fisher's reconstructionism. They use many critical approaches like sustainability, ethics, feminism, and postmodernism. By that, they change both the process of marketing and the outcome of it.
107
Who wrote about regulations, public health, social marketing, and behaviour change?
Hoek and Jones
108
What Hoek and Jones wrote about?
They wrote about regulations, public health, social marketing, and behaviour change
109
How is marketing called what focuses on individual level behaviour change?
Downstream social marketing
110
What is upstream social marketing?
It focuses on policy and regulations to create an environment what would support behavioural change
111
What aim do population interventions have?
To reach many people by changing the environment in what people make decisions - for example, introduce tobacco tax so smokers will have new condition in what they need to decide either to buy cigarettes or not
112
What is manufactured uncertainty?
It is a confusion what was created on purpose to confuse consumers and make them forget about the knowledge what would have led them with the right informed decision.
113
About what wrote Humphreys?
About mega marketing and how markets are created as a social process
114
Who wrote about mega marketing and how markets are created as a social process?
Humphreys
115
What is legitimation?
Making a practice or institution socially, culturally, and politically acceptable within a particular context
116
Name and explain three versions of legitimacy defined by Humpreys
1. Regulative legitimacy is the degree to which organisation adds to rule-setting, monitoring, and sanction activities
2. Normative legitimacy is the degree to which organisation adds to social norms and values
3. Cultural-cognitive legitimacy is the degree to which organisation is known and understood by social actors
117
Name and explain four stages of legitimation of a market
1. Innovation - Here frames are not clearly set and are open
2. Local validation - Number of frames is narrowed but political, economic, and social resources are needed to promote new frames
3. Diffusion - Social network is in place and meaning of the new product is narrowed a lot to two or three frames
4. General validation - Product is clearly defined and social network is in place
118
How Arndt described marketing institutions?
Marketing institutions are sets of conditions and rules for transactions and other interactions
119
How Kotler described megamarketing?
I define megamarketing as the strategically coordinated application of economic, psychological, political and public relations skills to gain the cooperation of a number of parties in order to enter and/or operate in a given market.
120
What is legitimacy from Suchman's perspective?
“Legitimacy is a generalised perception or assumption that the actions of an entity are desirable, proper, or appropriate with some socially constructed system of norms, values, beliefs, and definitions.”
121
What is "market" from Dolbec and Fischer perspective?
A market may be defined as an organisational field encompassing a set of institutions and actors, governed by institutional logics, supported by institutional work, and characterised by institutional boundaries.
122
What is organisational field by DiMaggio and Powell?
It consists from those organisations what in total constitute a recognised area of institutional life
123
What is institutional logics?
The extent to which an action or entity is characterised by cultural alignment, normative support and consonance with relevant rules and laws
124
What is institutional work?
It is actions aimed at creating, maintaining or disrupting practices, understandings, and rules shared by actors in an organisational field
125
What are institutional boundaries?
These are the distinctions that are recognised by actors in a field between categories of actors, objects, practices, spaces, etc.
126
How Kjellberg and Helgesson define market practice?
We define market practice broadly as all activities that contribute to constitute markets
127
Name and explain three types of market practices
1. Exchange practice - the concrete activities related to performing discrete economic transactions
2. Representational practices - activities that contribute to the construction of understandings and models about how the market "looks" and how it "works"
3. Normalising practices - activities that contribute to establish guidelines for how a market should be (re)shaped or work according to some (group of) actor(s)
128
What is a translation by Kjellberg and Helgesson?
By translation we denote the basic social process through which something - an idea, a rule, a product, a technology, a claim - spread across time and space
