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comm 223 > midterm > Flashcards

midterm Flashcards

1
Q

what is marketing?

A

the activity, set of institutions, and process for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

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2
Q

What are the 5 stages of marketing?

A
  1. Understand the marketplace and customer needs and wants.
  2. Design a customer value-driven marketing strategy.
  3. Construct an integrated marketing program that delivers superior value.
  4. Engage customers, build profitable relationships, and create customer delight.
  5. Capture value from customers to create profits and customer equity.
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3
Q

What motivates a consumer to take actions?

A

needs, wants, demands.

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4
Q

What are needs, wants and demands?

A

needs = states of felt deprivation, not invented by marketers.
wants = the form taken by human needs as they are shaped by culture; needs become wants when they are directed to specific objects that satisfy the need.
demands = the wants for specific products backed up by buying power.

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5
Q

How do consumers choose among products and services?

A

value and satisfaction.

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6
Q

what is value proposition?

A

the full mix of benefits upon which a brand is positioned.

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7
Q

managers main interests

A

Achieving high production efficiency.
Low costs.
Mass distribution.

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8
Q

the production concept

A

consumers will prefer products that are widely available (availability) and inexpensive rather than features.

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9
Q

the product concept

A

consumers will favor those products that offer the most quality, performance, or innovative features.

Design their products without customers’ inputs.
No considerations on competitors’ products.

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10
Q

the selling concept

A

consumers, if left alone, will ordinarily not buy enough of the company’s products; companies have to undertake an aggressive selling and promotion effort.

Used by companies facing an overcapacity problem.
Selling whatever they have rather than making what market wants.
No concerns about post-purchase satisfaction.
Focus on creating sales transactions rather than on building long-term relationships.

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11
Q

the marketing concept

A

achieving organizational goals depends on:
Determining the needs and wants of target markets.
Creating, delivering, and communicating customer values to its chosen target markets more effectively and efficiently than competitors do.

focus on marketing mix.

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12
Q

customer-driven company

A

Good at serving existing customers.
Often times, a market doesn’t know what it wants.

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13
Q

customer-driving company

A

Marketing research is less useful.
They see the future first.

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14
Q

the societal marketing concept

A

organization’s task is to determine the needs, wants, and interests or target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and the society’s well-being.

Includes the marketing mix and the four P’s of marketing = product, price, place, promotion

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15
Q

why is retaining customers more important than attracting new ones?

A

Talks favorably.
Pays less attention to competing brands.
Offers new product ideas.
Costs less to serve (since transactions are routine).
Buys more over time (stay loyal longer) → customer lifetime value.

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16
Q

consumer-generated marketing

A

Consumers play roles in shaping their own brand experience.
Asking for new product and service ideas.
Inviting consumers to play a role in creating advertising programs and social media content.
Could be time-consuming, costly, and difficult process (uncontrollable).

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17
Q

customer equity

A

total combined customer lifetime values of all the company’s customers.

More loyal customers → higher customer equity.
More willing to pay higher prices → higher customer equity.
More willing to purchase frequently → higher customer equity.

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18
Q

customer lifetime value

A

the entire stream of purchases that the customer would make over a lifetime of patronage.

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19
Q

microenvironment

A

Forces close to the company that affect its ability to serve customers.
The company, competitors, suppliers, marketing intermediaries, customers, and publics.

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20
Q

macroenvironment

A

Larger, societal forces that affect the organization’s microenvironment.
Demographic, economic, natural, technological, political, and cultural.

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21
Q

departments

A

management, finance, research & development, purchasing, manufacturing, accounting and human resources.
- Each department will have their own objectives.
- Need to work in harmony to create customer value.

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22
Q

suppliers

A

companies which provide the resources needed.
Marketing managers need to monitor supply availability, pricing, and quality.

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23
Q

Marketing intermediaries

A

firms that help the company promote, sell, and distribute.
Resellers → wholesalers, retailers.
Physical distribution firms → warehousing and transportation firms.
Marketing service agencies → marketing research, consulting, advertising agencies, media firms.
Financial intermediaries → bank, credit companies, insurance.

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24
Q

customers

A

financial, media, government, citizen-action groups, local, general, internal.

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25
Q

trends of interest

A

The Canadian population is expected to exceed 42 million by 2035.
Changing age structure of the Canadian population.
The Canadian population is getting older; the median age is 41 years.
Main generations are: the baby boomers (born between 1946-1965; 9.4 mil.), generation X (born between 1966-1980; 7.2 mil.), generation Y (millennials; born between 1981-1997; 8.6 mil.), and generation Z (1998-2016; 8.6 mil).

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26
Q

technological environment

A

New technology creates new markets and opportunities.
Replaces existing products and services.
Investment in R&D required.
Need to closely monitor the changes in technological development.

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27
Q

natural environment

A

Natural resources that are needed as inputs by marketers or that are affected by marketing activities.
Growing shortages of raw materials.
Increased pollution.
Increased government intervention.
Focus on environmentally sustainable strategies.

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28
Q

political and social environment

A

Laws, government agencies, and pressure groups.
Influence and limit organizations and individuals within a society.
Increased emphasis on ethics and socially responsible actions.
→ Cause-related marketing: doing well by doing good.

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29
Q

cultural environment

A

Institutions and other forces that influence society’s basic values, perceptions, preferences, and behaviors.
The persistence of cultural values → core beliefs are passed on through family, friends, reinforced by institutions, and somewhat resistant to change.
Canadian beliefs = cultural diversity, democracy, gender equality, sustainable development, universal healthcare, love of nature, hard work, being honest.
Shifts in secondary values; more open to change.

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30
Q

economic environment

A

Factors that affect consumer buying power and spending patterns.
Income distribution.

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31
Q

marketing research steps

A
  1. Generating information.
  2. Identify and refine problems.
  3. Solve marketing and other business problems.
  4. Identify and define marketing opportunities.
  5. Evaluate marketing actions.
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32
Q

sources of information

A

Internal data.
Competitive marketing intelligence.
Marketing research.

33
Q

internal data

A

Accounting dept: financial statements → sales, costs, and cash flows.
Operations dept: production schedules, shipments, and inventories.
Sales forces: reseller reactions and competitor activities.
Marketing dept: customer demographics, psychographics, purchase behavior.
Customer service dept: customer satisfaction, service problems.

advantages and disadvantages: Can be accessed more quickly and cheaply.
May be incomplete or in the wrong form.
Keeping the database current is expensive.

34
Q

competitive market intelligence

A

the systematic collection and analysis of publicly available information about competitors and developments in the marketing environment.

35
Q

competitive market intelligence - sources

A

Employees, customers, trade shows, websites, marketing communications, suppliers, resellers, professional information services, “dumpster diving”.
Monitoring social media sites.
Major databases → passport GMID, Simply Analytics, etc..

36
Q

marketing research

A

the systematic design, collection, analysis, and reporting of data relevant to a marketing situation facing an organization.

37
Q

marketing research stages

A

Defining the problem and research objectives.
Developing the research plan for collecting information.
Implementing the research plan → collecting and analyzing the data.
Interpreting and reporting the findings.

38
Q

types of research designs

A

Exploratory = gather preliminary information that will help to better define problems and suggest hypotheses; discovery of ideas and insights.
Literature reviews, case analyses, in-depth interviews, focus groups, observations.

Descriptive = better describe marketing problems, situations, or markets; determining the frequency with which something occurs or the relationship between two variables.
Cross-section surveys, panel studies, product movement surveys, store audits, interviews (telephone, mail, personal).

Casual = marketing research to test hypotheses about cause-and-effect relationships.
Experimental designs, market tests.

39
Q

developing a research plan

A

Translating the research objectives into specific information needs.

Research plans should be presented in a written proposal to be approved.

40
Q

A good research proposal should show:

A
  • What data will be collected.
  • How it will be collected.
  • From whom it will be collected.
  • Who will analyze it.
  • Quality control standards that will be used.
  • How long it will take.
  • How much it will cost.
41
Q

primary data

A

gathered for a specific purpose or specific research project.

42
Q

observation

A

observation of relevant people, actions, and situations.
- Mechanical observation (via machine or computer).
- Checkout scanner (records shoppers’ purchases).
- Cookies (to monitor the internet users’ web surfing behavior).

Advantages + Disadvantages:
- Good for exploratory research.
- Can obtain info that people are unwilling or unable to provide.
- Feelings, attitudes, motives, or private behavior cannot be observed.

43
Q

experiment

A

ecessary for establishing causation; never able to perfectly prove X causes Y because it is difficult to satisfy the conditions of causality.

44
Q

survey

A

segment of the population selected for marketing research to represent the population as a whole.
- Perfect frame = every member of the population is represented once and only once.
- Imperfect frame = not all the members of the population are represented in the frame.

45
Q

probability sample

A

Simple random sample = every member of the population has a known and equal chance of selection.

Stratified random sample = the population is divided into mutually exclusive groups and random samples are drawn from each group.

Cluster sample = the population is divided into mutually exclusive groups (blocks) and the researcher draws a sample of the groups to interview.

46
Q

nonprobability sample

A

Convenience sample = the researcher selects the population members from whom it is easiest to obtain information.

Judgment sample = the researcher uses his or her judgment to select population members who are good prospects for accurate information.

47
Q

secondary data

A

Collected for some problem other than the one at hand.
Sources → business data, government data, internet data.

Advantages:
Can be a good starting point for research.
Can be obtained more quickly and cheaply.
Can provide data that an individual company cannot collect on its own.

Disadvantages:
Researchers can rarely obtain all the data they need from secondary sources.
Unavailable, out of date, wrong format, incomplete, irrelevant, inaccurate, and unreliable.
Need to carefully evaluate the information whether it is relevant, accurate, current, impartial.

48
Q

consumer purchase behaviour

A

The purchase behaviour of final consumers (individuals & households) who buy goods and services for personal consumption.

49
Q

consumer decision-making process

A
  1. Need recognition.
    → need recognition by internal or external stimuli.
  2. Information search = consumer gathers information related to their attainment of the desired state of affairs.
    → internal information search = recall information in memory.
    → external information search = seek information in an outside environment.
  3. Evaluation of alternatives = consumer’s information search should yield a group of brands.
    → brands that a consumer actually considers buying before making a purchase decision are known as the evoked set (the most preferred alternatives).
  4. Purchase decision = when buying the product/service, the consumer may make choices about from whom to buy, and when to buy.
    → purchase decisions can be influenced by the attitudes of others (friends, other customers), and unexpected situational factors (no cash or credit card for payment).
  5. Post-purchase evaluation = consumers are either satisfied or experience post-purchase anxiety.
50
Q

cognitive dissonance

A

feelings of post-purchase psychological tension or anxiety that results from an imbalance among an individual’s knowledge, beliefs, and attitudes after an action or decision is taken.

51
Q

factors influencing purchase decision

A
  • Cultural = culture, subculture, social class.
  • Social = groups and social networks, family, roles and status.
  • Personal = age and life-cycle stage, occupation, economic situation, lifestyle, personality and self-concept.
  • Psychological = motivation, perception, learning, beliefs and attitudes.
52
Q

the product diffusion process

A
  1. Innovators:
    The first buyers of a new product.
    Venturesome, willing to accept risk, socially aggressive, communicative, and cosmopolitan.
  2. Early Adopters:
    The next customers to buy a new product.
    Enjoy leadership, prestige, and respect that early purchases bring.
    Tend to be opinion leaders.
    Adapt new ideas.
  3. Early Mainstream:
    First part of the mass market.
    Outgoing, communicative, and attentive to information cues.
    “Early majority”.
  4. Late Mainstream:
    Second part of the mass market.
    Less cosmopolitan and responsive to change.
    Include lower economic and social brackets, those past middle age, and skepties.
    “Late majority”.
  5. Lagging Adopters:
    Last to purchase.
    Price conscious, suspicious of change, low income and status, tradition bound, and conservative.
    Often difficult to market to this small group.
53
Q

relative advantage

A

the degree to which the innovation appears superior to previous ideas; directly related to adoption rates.

54
Q

compatibility

A

the degree to which innovation is consistent with the values and experiences of potential adopters; the higher, the faster the rate-of-adoption.

55
Q

complexity

A

the relative difficulty understanding the innovation; the more difficult, the longer it will take to gain general acceptance.

56
Q

Divisibility (Trialability)

A

the degree to which the innovation can be tried on a limited basis; first adopters face financial loss and ridicule from others lessened by limited trials.

57
Q

Communicability (Observability)

A

the degree to which the results of using the product are observable to others; tangible superiority will increase the adoption rate.

58
Q

characteristics of business markets

A
  1. In terms of market structure and demand:
    - Fewer, but larger buyers.
    - Derived demand.
    - Inelastic to price changes and more fluctuating demand (due to small number of business buyers).
  2. In terms of the nature of the buying unit:
    - More decision participants.
    - More professional purchasing effort.
  3. In terms of the buying decisions and the decision process:
    - Complex buying decisions = large sum of money, technical and economic considerations, and interaction among people at many levels of the buyer’s organization.
    - Decision process is longer and more formalized → requires formal written purchase orders and product specifications, and formal approval.
    - Buyers and sellers are more dependent.
59
Q

questions related to business buyer behaviour

A

What buying decisions do business buyers make?
Who participates in the business buying process?
What are the major influences on buyers?
How do business buyers make their buying decisions?

60
Q

overview of STP

A

Segmentation → process of dividing a large market into smaller ‘pieces’, or groups with similar needs and/or desires.
Targeting → the process of evaluating each market segment’s attractiveness and selecting one or more segments to serve.
Positioning → arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

61
Q

market segmentation process

A
  1. Identify Bases for Segmenting the Market.
  2. Develop Market Segment Profiles.
  3. Develop Measure of Segment Attractiveness (Evaluation).
  4. Select Specific Target Markets.
  5. Develop Positioning for Target Segments.
  6. Design, Implement, and Maintain Marketing Mix.
62
Q

multivariate segmentation

A

the process of dividing a market into distinct groups using multiple variables, such as demographics and behavior, to create highly targeted and tailored marketing strategies.

63
Q

Requirements for Effective Segmentation:

A

Measurable = size, purchasing power, profiles of segments can be measured.
Actionable = effective programs can be designed for attracting and serving the segments.
Substantial = segments must be large or profitable enough to serve.
Differential = segments must respond differently to different marketing mix elements and actions.
Accessible = segments must be effectively reached and served.

64
Q

segment profiles

A

WHO are they?
WHAT do they want/value?
WHEN do they buy (how often)?
WHERE do they shop/buy?
HOW are they influenced?

65
Q

Segment structural attractiveness.

A

Level of competition.
New entrants.
Substitute products.
Power of buyers.
Power of suppliers.

66
Q

Undifferentiated (mass) marketing

A

market coverage strategy that ignores market segment differences and targets the whole market with one offer.

67
Q

Differentiated (segmented) marketing

A

market coverage strategy that targets several market segments and designs separate offers for each.

68
Q

Concentrated (niched) marketing

A

marketing coverage strategy in which a company pursues a large share of one of a few submarkets.

69
Q

Micromarketing

A

the practice of tailoring products and marketing programs to the needs/wants of specific individuals and local customer groups.

70
Q

Choosing a Target Marketing Strategy:

A

Company resources.
Degree of product variability.
Product life-cycle stage → from undifferentiated/concentrated to differentiated.
Market variability.
Competitors’ marketing strategies.

71
Q

positioning

A

the way the product is defined by consumers on important attributes; involves implanting the brand’s unique benefits and differentiation in customers’ minds.

72
Q

steps for positioning

A
  • Identifying possible competitive advantages → product, service, people, image.
  • Choosing the right competitive advantages → important, distinctive, superior, communicable, pre-emptive, affordable, and profitable.
  • Selecting an overall position strategy.
  • Developing a positioning statement.
  • Communicating and delivering the chosen positioning.
73
Q

Checking Your Positioning in Consumers’ Minds.

A
  • Interpretation and usage in marketing.
  • Intensity of competition between brands → the closer two brands are in the map, the more similar they are perceived to be in the minds of customers.
  • How customers perceive each brand on each perceptual dimension.
  • Failure in differentiation.
  • Market opportunity.
74
Q

relationship selling

A

This is a sales technique that prioritizes building a connection with the customer over simply closing a sale. It focuses on understanding customer needs, providing value, and cultivating a long-term relationship that benefits both the customer and the seller.

75
Q

cross-selling

A

Cross-selling involves suggesting additional products or services to a customer that complement their initial purchase. It’s a strategy to increase the customer’s purchase amount by making them aware of additional value they could get from other items.

76
Q

up-selling

A

Up-selling is the practice of encouraging customers to purchase a more expensive item or upgrade than the one they are currently considering. This can be a higher-end product or service, with the aim of increasing the value of the sale.

77
Q

partnership marketing

A

Partnership marketing is a collaboration between two or more businesses where they combine resources and strategies to market their products or services. This can lead to shared customer bases, increased brand exposure, and cost savings on marketing expenses.

78
Q

share of customer

A

refers to the amount of a customer’s spending within a specific category that is captured by a company. It goes beyond simply acquiring customers; it involves deepening the relationship with existing customers to increase the amount of business they do with the company across different products and services.

79
Q
A

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