mktg 301 exam 1 Flashcards
What is Marketing?
Ability to provide worth to a customer, being able to convince someone to buy a product
What are the 4 P’s of Marketing?
Product, Price, Place, Promotion
In the 4 P’s of Marketing, what does Product mean?
what do potential customers need and want
In the 4 P’s of Marketing, what does Price mean?
how much should we ask customers to pay
In the 4 P’s of Marketing, what does Place mean?
how will we get it to the customers
In the 4 P’s of Marketing, what does Promotion mean?
how will we communicate with the customers
Is it more profitable for a company to think inside out or outside in?
Outside in
The Marketing concept is…
looking outward with a focus on customers needs and wants, profit through customer satisfaction
The Selling concept is…
looking inward with a focus on factories, profit through sales volume, myopia occurs due to products being created with similar parameters
The Production concept is…
consumers choose products available and affordable, focused improvement on distribution and production, myopia occurs due to emphasizing production over product
The Product concept is…
products highest in quality, performance, and innovation, focus on improvement of product, myopia occurs due to company focusing on product rather than market
The Societal Marketing Concept is… triangle
Consumers, Company, and Society
Purposeful Brands are…
companies who create a brand with the intention of focusing on what’s good for society as a large long-term
What value do Superior Customers provide?
customer loyalty, retention, referrals, customer equity, higher profits more customers
What is the goal for companies in regards to customers?
True Friends and Customer Evangelists
Consumer Generated Marketing is…
customers make ads because they love the product
Customer Lifetime Value is…
total revenue a customer generates for your company - customer acquisition cost – customer retention costs
What can marketers learn by studying the marketing environment? List of 3
understand constraints, opportunities, and threats
How should all departments think in a company? (part of microenvironment)
Think Consumer, they must work together to provide the best value for a consumer
Suppliers, a part of the microenvironment..
Provide resources needed for production and innovation
Intermediaries, a part of the microenvironment…
help the company promote, sell, and distribute the products to end-users
An example of a Reseller, a type of intermediary, is…
Increase profitability at Wendy’s drive thru using Coca-Cola in the solution
An example of a Physical Distribution Firm, a type of intermediary, is…
Trucking companies that bring French fries to a restaurant
An example of a Marketing Service Agency, a type of intermediary, is…
Create ads for a restaurant
An example of a Financial Intermediary is…
Banks, offer good terms on a loan
Competitors, a part of the microenvironment…
provide reasonable substitutes to customers, use buzzwords like “Competitive Advantage” and Point of Difference”
What is the Law of Color?
A brand should use a color that is opposite of its major competitors
The Public, part of the microenvironment…
Any group that has an interest in or impact on an organizations ability to achieve its objectives
What are Customers in terms of marketing?
Who buys the Products, can be consumers, resellers, government, non-profits, international market, business buyers
Demographics, a force in the Macroenvironment includes…
Household Structures, Age Structures, Geographic Population Shifts, Educational Characteristics, Population Diversity, Occupations
In regards to Age Structures, Baby Boomers are…
1946-64, most affluent generation, digitally active, care about: staying active and youthful thinking, post-poning retirement
In regards to Age Structures, Gen X is…
1965-80, weigh decisions, adapted to tech in young adulthood, high brand loyalty, care about: experiences over materialism and the environment
In regards to Age Structures, Millennials (Gen Y) are…
1981-96, large buying power, came of age during technology, frugal and want to connect with brands efficiently, care about: value and sharing experiences, utilize social media, interdependent, now oriented
In regards to Age Structures, Gen Z is…
1997-2012, largest generation, fluent in digital technology, cautious spenders, care about: authenticity and creating their own brand experiences, desire sensory info, expect personalized experiences, innovators
In regards to Age Structures, Gen Alpha is…
Born after 2012, will be the most formally educated and wealthiest generation, substantial influence on family purchases, privacy is a big issue, Marketing gateway to reach their parents, Important future consumers just beginning to establish brand preferences
Economic Forces, a force in the Macroenvironment includes…
Consists of factors that affect consumer purchasing power and spending patterns
Overconsumption, a change in buying behavior…
leads to the search for value marketing
What is Treasure Hunter Tradeoffs?
The idea that when money is tight we still have things we will spend money on
Name the Income Distribution Brackets?
Upper Class, Middle Class, Working Class, Under Class
Natural resources that are needed as inputs by marketers or that are affected by marketing activities include
Shortage of raw materials, Increased Pollution, Increased government intervention, Environmentally sustainable strategies
Technology, a force in the Macroenvironment includes…
Factors that create new technologies, products, and market opportunities (while making other products obsolete)
Politics, a force in the Macroenvironment includes…
Laws, regulations, and pressure groups that influence and limit various organizations and individuals in a given society, Most laws that affect marketing have been passed in order to protect consumers
The Sherman Antitrust Act dealt with…
Price fixing, predatory pricing, anti monopoly
The Robinson Patman Act dealt with…
Price discrimination is unlawful, amends Clayton act
What are cultural forces?
The forces that affect a society’s basic values, preferences, and behavior
Hypertasking, a cultural force, deals with
Multitasking in overdrive
Egonomics, a cultural force, deals with
Craving recognition of individuality
Mass Mingling, a cultural force, deals with
Digital technologies affect mingling in real life
Cocooning , a cultural force, deals with
Spending more time at home, Emphasis on at home décor, improvement, and food delivery
Down-aging , a cultural force, deals with
Comfort in familiar pursuits and products from decades past
Clanning , a cultural force, deals with
Validating one’s own belief system by belonging to a group that shares common beliefs or ideals
LOHAS (lifestyles of health and sustainability) , a cultural force, deals with
General concern for natural world, Reusable goods, compostable packaging, sustainable materials
Renewed Spirituality , a cultural force, deals with
Less materialism, greater “meaning of life”
Does digital technology make people more social or less social in the real world?
More social, people are able to arrange meetups much easier than without digital technology
What is the Marketing Information System?
Marketing managers want to obtain information (target markets, marketing channels, competitors, public, macroenvironment forces) and use it
What can you learn from internal databases?
Get rewards from loyalty programs, marketing managers know what we like to buy, what items customers buy together, times we buy, what items go off the shelves the quickest, Develop demographic data on different locations and aim their marketing towards different markets
What is Marketing Intelligence?
What public information is available
What is Marketing Research?
The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization, consumer insights
What is the first step of the Marketing Research Process?
Defining the problem and research objectives
What is the second step of the Marketing Research Process?
Developing the research plan for collecting information
What is the third step of the Marketing Research Process?
Implementing the research plan, collecting and analyzing the data
What is the fourth step of the Marketing Research Process?
Interpreting and reporting the findings
What are some attributes of Primary Data?
Collects specific info, directly applicable, costly
What are some Attributes of Secondary Data?
rely on existing info, often not as applicable, less expensive
What does Exploratory Research do?
Gathers preliminary information that will help define the problem and suggest hypotheses
What does Descriptive Research do?
Describes things (market potential, demographics, attitudes)
What does Casual Research do?
Test hypotheses about cause-and-effect relationships
What does Observational Research do?
The gathering of primary data by observing relevant people, actions, and situations
What does Ethnographic Research do?
Observation in a natural environment, like the grocery store
What are some aspects of Mechanical Observation?
device monitors, checkout scanners, eye cameras
What aspects does eye tracking focus on?
Shape, color, area around object
What does Big Data track in Marketing?
What people searched online for, clicked on, websites visited, social media shares, purchases
Survey Research is…
Most widely used method for primary data collection, Best for gathering descriptive information
Personal Interviews, one of the contact methods…
Individual or group, Used for survey and experiments, some observational research
Pros of Personal Interviews include…
Highly flexible, good control of sample
Cons of Personal Interviews include…
High cost per respondent, interviewer effect exists
Phones, one of the contact methods…
Mostly used for survey, some experiments, Gathers information fast, but quantity of data is often smaller than other methods
Pros of Phones include…
Gathers information fast, greater flexibility than mail surveys
Cons of Phones include…
Higher cost than mail, interviewer effects exist
Mail, one of the contact methods…
Mostly used for surveys using a questionnaire, Likely to give more honest answers, but speed of data collection is slow
Pros of Mail include…
Reaches more people than phone
Cons of Mail include…
Can’t change it after mailed, low response rate
Online Marketing Research, one of the contact methods…
Can do surveys, experiments, and personal interviews
Pros of Online Marketing Research include…
least expensive, flexible, saves time on data processing
Cons of Online Marketing Research include…
inaccurate answers and a low response rate
What are the 4 aspects of Experimental Research?
(1)Selected matched groups of subjects (2) Give different treatments (3) Control for unrelated factors (4) Check differences in response between groups, best for gathering casual research
Consumer Behavior is…
Buying behavior of individuals and households who buy goods and services for personal consumption
Cultural Factors are…
Most basic cause of a person’s wants and behaviors
A Subculture is..
the culture of a group of people who share value systems based on common life experiences
Social Classes are…
society’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors
Hispanic Americans, an Ethnic Subculture…
use twitter more and brand names sell well, family affair
African Americans, an Ethnic Subculture…
try new products, are trend setters, shop at malls and spend more on clothes
Asian Americans, an Ethnic Subculture…
use internet most and are brand conscious, prefer brand names
Social Factors are…
Are malleable, people can shift groups
Reference Groups are…
groups that a person wants to identify with (aspirational) or does not want to be with (dissociative
Family / Households, a social factor are…
Most important group for consumer buying, stay loyal to brands used by families, More kids have influences on purchases
What is a Role within a group?
expected activities
What is a Status within a group?
esteem given to role by society
What are 5 Personal Factors of Consumer Behaviors?
(1) Age and life cycle stage (2) Occupation (3) Economic Situation (4)Lifestyle (psychographics, VALS survey) (5) Personality and Self-Concept
What is Moderate Incongruity?
want to design an ad where you stop to notice it, but it is also simple / easy to understand, consumers are more likely to remember this style of Ad
Motivation, psychological factor…
the needs that drive people
Perception, psychological factor…
process by which people select, organize, and interpret information
Selective Attention is…
too much stimuli, cannot take it all in
Selective Retention is…
after the fact (reflection) we remember the good points that validated what we believe
What are Beliefs?
descriptive thoughts
What are Attitudes?
likes and dislikes
Self Actualization is..
achieving one’s full potential
Esteem needs are…
prestige and feelings of accomplishment
Belongingness and Love needs are…
relationships
Safety needs are…
security
Psychological needs (from VALS) are…
food, water, warmth, rest
Innovators, from the Vals Survey…
at the top, high on resources and high on innovation (Oprah)
Survivors, from the Vals Survey…
at the bottom, low on resources and low on innovation
Ideals, from the Vals Survey…
people who value knowledge, philosophical (Gandi)
Achievement, from the Vals Survey…
want to be successful
Self-Expression, from the Vals Survey…
creatives, want to express themselves, make something rather than buy it
Need Recognition, one part of the Buyer Decision Process…
help recognize need, suggest solution to need
Information Search, one part of the Buyer Decision Process…
provide information conveniently
Evaluation of Alternatives, one part of the Buyer Decision Process…
competitive advantage, illustrate consequences
Purchase Decision, one part of the Buyer Decision Process…
availability, added value
Post Purchase Behavior, one part of the Buyer Decision Process…
reduce cognitive dissonance (idea that when we decide, we have uncertainty)
What are the 5 psychological factors in marketing?
(1) Motivation (2) Perception (3) Learning (4) Beliefs and Attitudes (5) Moderate Incongruity
Federal Food and Drug Act was…
forbids manufacturing or sale of fraudulent or mislabeled food and drugs
Online meetings, a contact method…
Least expensive, but credibility of answers may be questionable
