mktg 2150 final flashcards
what are the three steps for the marketing process?
1) Identifying consumer needs
2) managing the marketing mix
3) reaching potential consumers or the market
List the evolution of business philosophies
1) Production era (prior 1930s)
2) Sales orientation (1930-1960)
3) marketing orientation (1960-1990)
4) Relationship marketing orientation (1990s-onward)
what does share of wallet mean?
The percentage of a customer’s purchases that a company has in a specific product category.
What are the new and evolving marketing practices
1) digital marketing
2) augmented reality
3) experimental marketing
4) influencer marketing
5) partnership marketing
6) metrics and analytics
7) new marketing regulations and ethical considerations
What is the Canadian Marketing Association (CMA)?
the professional body for the marketing industry, responds to legislative issues and sets guidelines on responsible marketing practices
What is corporate social responsibility (CSR)?
When organizations voluntarily consider the well-being of society by taking responsibility for how their businesses impact consumers, customers, suppliers, employees, shareholders, communities, the environment, and society in general.
what is customer value proposition?
The unique combination of benefits received by targeted buyers that will satisfy their needs; includes quality, price, convenience, delivery, and both before-sale and after-sale service.
What is greenwashing?
The deceptive use of marketing practices to give the impression that a good, service, or organization is environmentally friendly.
what is the difference between the marketing orientation and the relationship marketing orientation?
- The marketing orientation stage focuses on the idea that an organization should strive to satisfy the needs of consunmers while also trying to acheive and organization’s goals.
- The relatinoship marketing stage sees organizations considering the lifetime value of their customers and striving to offer better services, along with higher-quality products to encourage long-term relationships with customers.
- Essentailly, the marketing orientation stage is when the needs of consumers were start to be considerd and the relationship marketing stage is when you create customer relationships to keep consumers loyal.
What are the six key areas marketers scan in the marketing environment
1) demographic forces
2) socio-cultural forces
3) economic forces
4) technological forces
5) competitive forces
6) regulatory forces
- Tip: use CRESTD acronym
What are the steps in an enviromental scan
1) Collect the facts and identify trends
2) Determine the impact that this fact/trend will have on the business
3) Brainstorm, evaluate and implement ideas to meet business objectives
What is the difference between direct and indirect competitors
- Direct competitors are head-to-head competitors that refer to very similar products sold in the same category.
- Indirect competitors are products that compete for the same buying dollar but in a slightly diffferent category
What are the types of competition?
1) monopoly; one firm
2) oligopoly; few firms
3) monopolistic competition: many firms, similar products.
4) perfect competition: many firms, identical products.
What is online behavioural advertising (OBA)?
The use of web-based programs to track consumers’ online activity so as to deliver ads that correspond to browsing interests.
What are socio-cultural forces?
Cultural values, ideas, and attitudes, as well as society’s morals and beliefs.
What is the consumer purchase decision process?
1) problem recognition: perceiving a need
2) Information search: seekign value
3) Evalutation of alternatives: Assessing value
4) Purchase decision: Buying value
5) Post-purchase behaviour: Value in consumption or use
What are the three consumer problem-solving variations? Explain.
Routine Problem-Solving: when consumers spend little effort seeking external information and evaluating alternatives.
Limited Problem-Solving: characterized by low consumer involvement but significant perceived differences among brands. Consumers may use this to try something new.
Extended Problem-Solving: Each of the five stages of the consumer purchase decision process is used. Involves considerable time and effort on external information search and identifying and evaluating alternatives.
What are the Consumer Purchase Decision Process Influencers?
- Marketing mix influences
- Socio-cultural influences
- Situational Influcnces
- Psychological Influences
What are the five situtational influences that have an impact on the purchase decision process?
1) The purchase task
2) Social surroundings
3) Physical surroundings
4) temporal effects
5) antecedent states
What are temporal effects and anteccedent states?
- Temporal effects are things like the time of day, amount of time available.
- antecednet staes are the consumer’s mood or the amount of cash on hand.
From bottom to top, what are the needs according to Maslow?
1) Physiological needs: are basic to survival and must be satisfied first. A fast-food advertisement featuring a juicy hamburger attempts to activate the need for food.
2) Safety needs: involve self-preservation and physical well-being. Smoke detector and burglar alarm manufacturers focus on these needs. Michelin combines security with parental love to promote tire replacement for automobiles.
3) Social needs: are concerned with love and friendship. Dating services such as eHarmony and fragrance companies try to arouse these needs.
4) Esteem needs: are represented by the need for achievement, status, prestige, and self-respect. Using the TD Aeroplan Infinite card and shopping at Holt Renfrew appeal to these needs. Sometimes, firms try to arouse multiple needs to stimulate problem recognition.
5) Self-actualization needs: involve personal fulfillment. For example, travel providers offer specialized educational and exotic trips to enhance a consumer’s life experience.
What is personality?
personality refers to a person’s character traits that influence behavioural responses.
what is an evoked set?
the group of brands that a consumer would consider acceptable from among all the brands in the product class of which he or she is aware
What is behavioural learning?
- the process of developing automatic responses to a type of situation built up through repeated exposure to it.
- one learns through the four variables: drive, cue, response, and reinforcement
What is cognitive learning?
when consumers learn through thinking, reasoning and mental problem solving.
What are the four variables of behavioural learning?
drive: a need, such as hunger tha tmoves an individual to action.
cue: a stimulus or symbol that one perceives.
response: the action taken to satisfy a drive
reinforcement: the reward
what are the three family influences on consumer behavior result?
1) consumer socialization
2) family life cycle
3) Family Decision-Making
What is the five-step market reserach process?
1) Define the problem
2) Develop the research plan
3) collect relevant information
4) Develop findings
5) Take marketing actions
What are the two things that Information sources can be split up into?
secondary data and primary data
* secondary data is the facts already collected/recorded prior
* primary data is facts newly collected
What can secondary data be split up into?
- Internal data: data collected inside the organization
- External data: data collected outside the organization
What is the difference between Descriptive Analytics and Predictive Analytics?
- Descriptive analytics focus on What has happened.
- Predictive analytics: focuses on what might happen in the future.
What is the difference between probability sampling and non-probability samplling?
- Probability sampling involves random selection from a whole group
- non-random sampling is based on convience or other criteria (such as how close a population is)
what is brand development index (BDI)?
An index that shows how well a brand’s sales are developed in a region relative to the region’s population size.
In order to have value, marketing data
must help in guiding marketing actions
What factors does social listening metrics produce
1) positive and negative sentiments
2) message reach
what are the ways new research data can be collected?
surveys, interviews, observations, focus groups, experiments, and secondary data analysis
from broad to narrow, what are the forms of market segmentation?
left to right: Mass marketing, segmented marketing, niche marketing, individualized marketing
What are the steps in market segmentation?
- Identify consumer/customer needs and common characteristics in the market
- Cluster common consumer/customer variables to create meaningful market segments
- Estimate the size and feasibility of each segment
- Identify the segment(s) to be targeted.
- Take actions with marketing programs to reach the segment(s)
- Monitor and evaluate the success of these programs compared with objectives
What are the three basic factors that tend to surface in product positioning?
- Image
- Product attribute
- Price
What is a positioning map or peceptual map?
a visaul representation of how products or product groups are positined within a category to consumers/customers.
For the different forms of market segmentation, what are examples of all of them?
- Mass Marketing: Advertising a basic household cleaning product to the general public, emphasizing its universal appeal and usefulness for all households.
- Segment Marketing: Promoting a new line of skincare products specifically designed for teenagers, addressing their unique skin concerns and preferences.
- Niche Marketing: Introducing a luxury line of watches tailored for deep-sea divers, highlighting their durability and specialized features for this specific niche market.
- Individualized Marketing: Creating personalized recommendations for online shoppers based on their previous purchases and browsing history, offering unique product suggestions tailored to their individual preferences.
What are the four I’s? (unique elements to services)
Intangibility: cannot be held, touched, or seen before a purchase.
Inconsistency: people providing service differ
Inseparability: the consumer cannot separate the deliverer of the service from the service itself.
Inventory: the inventory of services are complext and prolems exist since they cannot be “stored”
What are the different layers of the Total Product Concept?
core: benefits dervied
actual: physical proudct including branding, design, and features
augmented: additional features or benefits that come with the actual product
what is an example of a product that can be a combination of both a good and a service?
A “Laptop” is a product that combines goods (the physical device) with services (tech support and warranty services), where the goods component includes the laptop itself, and the services component involves warranty coverage and ongoing technical support provided by the manufacturer.
What is the service continuum?
A range from tangible goods to intagible services.
What are all the elements of the product mix?
product length, product depth, product width, product mix
what does the product width mean?
The number of different product lines offered by a company.
What is the product length?
The total number of products or brands in a product line.
what is the product line depth?
The assortment of different versions of each product sold within its product lines.
What is a private-label brand?
Otherwise known as a store brand, a brand owned by a retailer that contracts its manufacturing to major suppliers, and then sells the product at its own retail stores, under its own store-brand name.
What is brand equity?
The value of a brand that results from the favourable exposure, interactions, associations, and experiences that consumers have with a brand over time.
What are all the stages of the product life cycle?
1) introduction stage
2) growth stage
3) maturity stage
4) decline stage
which is stage in the product life cycle is characterizied by little competition and a lack of consumer awareness about the product?
The introduction stage
what stage in the product life cycle sees an increase in competition and a rapid rise in sales and profits, resulting in companies having to differentiate themselves?
The growth stage
what stage in the product life cycle is characterized by a slowdown of sales growth and profit?
The maturity stage
What stage in the product life cycle occurs when sales and profits steadily decline over time?
The decline stage
What are the groups of consumers in the adoption curve?
1) Innovators
2) Early adopters
3) Early majority
4) late majority
5) laggards
In the adoption curve, what group is venturesome; higher educated; use multiple information sources
Innovators
In the adoption curve, which group is leaders in social settings; slightly above average education?
Early adopters
In the adoption curve, which group is deliberate; many informal social contacts
Early majority
In the adoption curve, which group is skeptical; below average social status
Late majority
In the adoption curve, which group is fear of debt; neighbours and friends are information sources
Laggards
What are the steps in the new product development process?
1) new product development
2) Idea generation
3) Screening and evalutation
4) Business analysis
5) Development
6) Test marketing
7) Commercialization
What stage of the new product development process involves turning ideas into a prototype for further consumer research and manufacturing tests?
development
which stage of the product development process involves developing a pool of new product ideas?
idea generation
What is the formula for value?
What is the profit equation?
Profit = total revenue - total cost
What is the formula for return on investment (ROI)?
What is the formula for Total Revenue (TR)
What is the formula for the break-even point (BEP)?
what is skimming pricing?
when a firm introducing a new product sets the highest initial price that those customers really desiring the product are willing to pay.
What is penetration pricing?
setting a lower, more affordable, inital price on a new product to appeal immediately to the mass market
what is Price Lining?
the practice of releasing multiple versions of the same product or service at different price points simultaneously.
What is Odd-Even Pricing?
settign prices a few dollars or cents under an even number. Ex: setting a price at $399.99 instead of $400.
What is target pricing?
when manufacters deliberately adjust the composition and features of a product to achieve the target price to consumers
What is a markup?
the amount added to the cost price of goods to cover overhead and profit.
or
The difference between selling price and cost, usually expressed as a percentage of cost.
What is Yield Management Pricing?
the charging of different prices to maximize revenue for a set amount of capacity at any given time.
what is standard markup pricing?
whe firms sell their products at a price that exceeds their costs of producing or sourcing the items and the costs of marketing them
What is the formula for markup percentage?
What is Cost-Plus Pricing?
summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price.
What is Target Profit Pricing?
when a firm sets an annual target of a specfic dollar amount of profit.
What is Target Return-on-Sales Pricing?
when firms set prices that will give them a profit
What is Target Return-on-Investment Pricing?
when firms set prices to acheive a return-on-investment (ROI) target
what is Customary Pricing?
where tradition, a standardized channel of distribution, or other competitive factors dictate the price.
Ex: candy bars offered through standard vending machines have a customary price of a few dollars, and a significant departure from this price may result in a loss of sales for the manufacturer.
what is Above-, at-, or below-Market Pricing?
choosing a price that is above, at, or below the market price (the price that customers are generally willing to pay)
What is Loss-Leader Pricing?
where a product is sold at a price below its market cost to stimulate other sales of more profitable goods or services.
What does the Demand Curve show?
the number of products that will be sold at a given price.
what are the three key factors economists emphasize for estimating demand?
- Consumer tastes
- Price and availability of similar proudcts
- Consumer income
What is the break-even point?
the quantity at which total revenue and total cost are equal.
what are the three possible profit objectives?
- managing for long-run profits objective
- maximizing current profit objective
- target return objective
What is price discrimination?
if different prices are charged to different customers for the same or very similar goods and the same terms.
What is dumping
when a firm sells a product in a foreign country below its domestic prices or below its actual cost.
what is a grey market
Situations where products are sold through unauthorized channels of distribution.
what is the goal in setting a final price?
It must be high enough to cover the cost of providing the product meet the objectives of the company. Yet it must be low enough that customers are willing to pay it. But not too low, or customers may think they’re purchasing an inferior product.
what are the types of marketing intermediares
- middleman
- Agent or broker
- Wholesaler
- Retailer
- Distributor
- Dealer
What are the three functions performed by intermediaries?
- Transactional function: buy and selling of goods of services
- Logistical function: preparing and getting a product to buyers
- Faciliatating function: making a transaction easier for buyers
what is time utility?
refers to having a product or service when you want it
what is place utility?
having a product or service available where consumers want it
what is Form utility?
enhancing a product or service to make it more appealing to buyers
what is information utility?
providing consumers with the information they need to make an informed choice
what is possession utility?
involves efforts by intermediaries to help buyers take possession of a product or service, such as providing various ways for payment to be made for a product.
what are electronic marketing channels?
Channels that use the Internet to make goods and services available to consumers or business buyers.
what is dual distribution?
Arrangement whereby a firm reaches buyers by using two or more different types of channels for the same basic product.
what is multichannel marketing?
Blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with customers.
what is the difference between dual distribution vs multichannel marketing?
Dual Distribution: Primarily addresses the distribution aspect and involves selling through both direct and indirect channels.
Multichannel Marketing: Encompasses a broader range of customer interactions and involves using multiple channels for marketing and distribution. It’s not limited to the distribution aspect and includes various touchpoints where the company interacts with its customers.
what are vertical marketing systems?
Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact.
what are the three types of systems under a vertical marketing system?
1) Corporate Systems: a firm at one level of a channel owns the firm at the next level or owns the entire channel.
2) Contractual Systems: independent production and distribution firms combine their efforts to achieve greater functional economies.
3) Administered Systems: acheive coordination at successive stages of production and distribution by the size and influence of one channel member.
What is the Global Channel Strategy?
the channel through which a product manufactured in one country must travel to reach its destination in another country.
What are the three types of distribution?
Intensive distribution: placing products and services in as many outlets as possible
Exclusive distribution: only one retial outlet in a area carries the firm’s products
Selective distribution: a few retail outlets in an area carries firm’s products,.
what is the difference between supply chain management and logistics management?
Logisitcs is a subset of a supply chain management focusing on the physical flow of goods and related activities
- supply chain management is the integration of all supply
what is channel conflict?
when one channel member believes another channel member is engaged in behaviour that prevents it from achieving its goals.
what is vertical and horizontal channel conflict?
vertical conflict: occurs between different levels in a marketing channel
horizontal conflict: occurs between intermeidaries at the same level in a marketing channel
what is a supply-chain?
Sequence of firms that perform activities required to create and deliver a product to consumers or industrial users.
what is the difference between a supply chain and a distribution channel?
A supply chain refers to the entire network of entities, activities, and resources involved in creating and delivering a product or service to the end customer.
while a distribution channel specifically focuses on the pathway through which products or services move from the manufacturer to the end consumer.
why do manufacturers often use intermediaries to distribute their products?
Manufacturers often use intermediaries to distribute their products because intermediaries can provide efficient access to a wider market, offer specialized knowledge of local markets, and handle tasks such as warehousing, transportation, and sales, allowing manufacturers to focus on production and core competencies.
what is a unique feature of electronic marketing channels?
they can combine electronic and traditional intermediaries to create time, place, form, information and possession utility for buyers.
List the steps in the Customer Advocacy Funnel
1) Initial awareness
2) interest
3) engagement
4) trial
5) purchase
5) loyalty
6) advocacy
what are the steps in the marketing communcations process?
- Specify the IMC objectives
- identify the target audience
- set the promotional budget
- design the promotional program
- schedule and run the IMC elements
- evaluate the program and recommend changes
What are the five main regulartory groups in canada?
1) Advertising Standards Canada
2) the Competition Bureau
3) the Canadian Radio-television and Telecommunications Commision
4) the Canadian Marketing Association
5) the Mobile Marketing Association
what are the five main areas in the marketing communcations industry that work together to form an industry that is ethical, trustworthy, cohesive, and measureable?
1) the media
2) marketing communications agencies
3) media research companies
4) associations
5) regulatory bodies
what does SAPPED for our promotional mix stand for?
S ales promotion
A dvertising
P ublic relations
P ersonal selling
E vent marketing and sponsorship
D irect marketing or Direct response marketing
when talking about outbound and inbound marketing, vs push and pull marketing, what does this mean?
- outbound marketing is about marketers seeking consumers
- inbound marketing is about interested consumers finding the product and its messaging by using online tecniques that marketers facilitate
- push talks about focusing on distributers, wholesalers, retailers
- pull talks about focusing on consumers, media, public
What is lead generation?
The requests for additional information that result from direct response marketing.
what is traffic generation?
The visits to a location or website that result from direct response marketing.
what features distinguishes social media with traditional media
- Social media is flexible and can be changed even after it is published
- Social media is available immediately
- Social media creates a conversation, and so marketers do not have full control over the mssasing
- Social media can have less reliable demographic data about its audiences
- Social media can be produced inexpensively
- Social media needs dedicated attention
what is the common misconception about social media marketing?
the misconception is that social media is free. While it is less expensive to produce, a company also needs to consider the time that needs to be dedicated to monitoring and managing a social media program.
In public relations, what are the tools that can be used?
press releases, social media releases, press kits, news conferences and events
What is pareto’s rule?
The concept that 80 percent of a brand’s sales come from 20 percent of its customers.
what is data mining?
an efficient way to sort through large amounts of data to find relationships between variables.
what is database marketing?
The use of databases to customize communications to customers and potential customers for the purpose of promoting a product or service
what are the factors as to why CRM can help increase profitability through customer retention?
- The cost of acquiring a customer occurs only at the beginning of a relationship, so the longer the relationship, the lower the amortized cost.
- Long-term customers tend to be less inclined to switch, and also tend to be less price-sensitive.
- Long term customers may initiate word-of-mouth activity and referrals.
What are the three organizational levels in organizations?
coporate level, business unit, and functional
in an organization, what is the difference between the corporate level and the business unit level?
- the corporate level directs overall strategy for the entire organization
- the business unit level sets the direction for individual products and markets
In the growth-share matrix, what group has a large market share, but low growth?
Cash cows
In the growth-share matrix, what group has a high grwoth, but low market share?
Question marks
In the growth-share matrix, what group has low market share and low growth?
dogs
What are the steps (just the titles) in the outline of a marketing plan?
First we have the planning phase which includes:
* Situation analysis
* Market-product focus and goal setting
* Marketing program
Then we have the implementation phase:
Then we have the evaluation phase
what is a marketing plan?
Road map for the marketing activities of an organization for a specified future period of time.
what is a marketing program?
a marketing program is the activities and strategies to promote a product, service or brand and acheive specific business goals.
for a marketing program we need strategies for each of the following elements of the marketing mix.
What is repositioning?
Changing the place a product occupies in consumers’ minds relative to competitive products to more accurately meet consumer needs.
what triggers a product repositioning action?
changing consumer tastes and emerging competitive threats
what type of manager can encourage innovation?
a new product development manager
**
ignoring consumer insight research can lead to ________________________ that can cause product failure
Incomplete new-concept definition
what can consumer insight research help marketers understand?
it can help marketers to understand what is valuable, and not, to consumers.
what are the four broad approaches to extending a product life cycle?
- modifying the product,
- modifying the market,
- developing a new product
- repositioning
what is a quantity discount?
a discount to encourage customers to buy larger quantities of a product
what is a seasonal discount?
a discount to encourage buyers to stock inventory earlier than their normal demand would require, manufacturers often use seasonsal discounts
what is a trade (functional) discount?
a discount to reward wholesalers and retailers for marketing functions they will perform in the future.
what is a flexible-price policy?
a flexible-price policy involves setting different prices for products and services depending on individual buyers and purchase situations in light of demand, cost and competitive factors.
adding a wholesaler to the marketing channel for consumer products is most common for what?
low-cost, low unit value items
what is a strategic channel alliance?
a strategic channel alliance is when one firm’s marketing channel is used to sell another firm’s products.
what is foward integration?
when a producer might own the intermediary at the next level down (up)in the channel
can refer to “cutting down the middleman”
what is backward integration?
Backward integration is the practice of retailers owning a manufacturing operation
what is horizontal integration?
Horizontal integration is the acquisition of a business operating at the same level of the value chain in the same industry—that is, they make or offer similar goods or services.
what is prospecting?
when a telemarker is looking for leads, this is the first step for the personal selling process.
what statement reflects modern marketing communications?
The lines are blurred between reality, entertainment, self-expression and marketing communications.
what two closing techniques are used when a salesperson believes a buyer is about ready to make a purchase?
Trial and assumptive
The McDonald’s “Monopoly” game is an example of which type of promotion
Sales promotion
how many hours per day do adults in Canada use some form of media for?
10 hours annd 24 minutes per day.
what is the advantage to using radio as an advertising medium?
it is a segmented medium: most radio stations focus on specific interests, music genres or demographic groups
email marketing and pay-per-click ads are examples of what marketing?
Outbound and Inbound, respectively.
what is the most rapidly evolving tool in marketing?
digital communications
a database with customer information should by used by..?
all employees
in the planning phase of a marketing plan, what are the key points for the market-product focus and goal setting part?
- Set market and product goals
- Select target markets
- Determine competitive advantages
- Position the product
