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Marketing > Notes > Flashcards

Notes Flashcards

1
Q

Social responsibility

A

Conerns a firm’s obligation to improve its positive effects on society and reduce its negative effects

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2
Q

_______________ are the moral standards that guide marketing decisions and actions

A

Marketing ethics

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3
Q

Micro-macro dilema

A

What is good for some producers and consumers may not be good for society as a whole

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4
Q

What is marketing?

A

Marketing is much more than selling and advertising

Provides needed direction for production and helps make sure that the right goods and services are produced and find their way to consumers

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5
Q

Why is marketing important to you?

A
  1. Important to every consumer
    - You pay for the cost of marketing
  2. Marketing will be important to your job
    - many opportunities, evey résumé is marketing
  3. Marketing affects innovation and standard of living
    - marketing encourages research and innovation
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6
Q

Production vs. Marketing

A

Marketing: Make sure right goods and services are produced

Production: Making goods, performing services

=> create customer satsifaction

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7
Q

Differences between micro and macro marketing

A

Micro-Marketing: view as a set of activities performed by an organization

  • when people talk about marketing, they are talking about micro

Macro-marketing: A social process that directs an economy’s flow of goods and services from producers to consumers in a way that effectively matches supply and demand and accomplishes the objectives of society

emphasis: how the marketing system works- looking at how marketing affects society and vice versa
- delivers goods and services that consumers want and need
- role: effectively match this heterogeneous supply and demand and at the same time accomplish society’s objectives

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8
Q

Universal functions of marketing

A

Buying, selling, transporting, storing, standardization and grading, financing, risk taking, and market information

They must be performed in all macro-marketing systems

How these functions are performed may differ among nations but they are needed

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9
Q

How has the marketing function changed over time?

A
  1. Simple trade era - a time when families traded or sold their “surplus” output to local distributors
  2. Production era - a time when a company focuses on production of a few specific products - perhaps because few of these products are available in the market
    - if we can make it, it will sell
    - Eastern Europe continue to operate with this because of production shortages
  3. Sales era - A time when a company emphasizes selling becaused of increased competition
    - continued to about 1950
  4. Marketing department era - a time when all marketing activities are brought under the control of one department to improve short-run policy planning and to try to integrate the firm’s activities
  5. Marketing company era - a time when in addition to short-run marketing planning, marketing people develop long-range plans and the whole company effort is guided by the marketing concept
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10
Q

What is meant by the marketing concept?

A

Means that an organization aims all its efforts at satisfying its customers—at a profit

Combines:

  1. Customer satisfaction
  2. Total Company effort
  3. Profit (or another measure of long-term success) as an objective

*Total Company effort

**says we are going to look at customer needs and match our product with that need to make a profit

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11
Q

What is the customer value equation?

A

Satisfied customer: Benefit - Cost = +

Dissatisfied customer: Benefit - Cost = -

Customer value: the difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits

*when customer value is higher => consumer more satisified

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12
Q

How is customer satisfaction linked to profit?

A

Sometimes it may cost more to satisfy some needs than any customers are willing to pay

Profit is the bottom-line measure of the firm’s success and ability to survice

The balancing point that helps the firm determine what needs it will try to satisfy with its total effort

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13
Q

Strategic (management) planning

What is marketing strategy planning?

A

The managerial process of developing and managing a match between an organization’s resources and its market opportunities

Top-management job

Includes planning not only for marketing but also for production, finance, human resources, and other areas

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14
Q

Marketing strategy

A

Specifies a target market and a related marketing mix

It is a big picture of what a firm will do in some market

two parts are needed: a target market and a marketing mix

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15
Q

What is the relationship between a target market and a marketing mix?

A

Target market - a fairly homogeneous (similar) group of customers to whom a company wishes to appeal

Marketing mix - the controllable variables the company puts together to satisfy this target group

The customer is surrounded by the controllable variables that we call the marketing mix

*target market in middle of circle and marketing mix on the outside of the circle

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16
Q

What is the difference between mass marketing and a mass marketer?

A

Mass marketing - typical production-oriented approach

  • vaguely aims at “everyone” with the same marketing mix
  • everyone is the same => considers everyone to be a potential customer

“shotgun approach”

Mass marketers - are aiming at clearly defined target markets

  • their target markets usually are large and spread out
    ex. Kraft Foods and Wal-Mart
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17
Q

What are the components of each of the 4 “p’s”

A

Product - concerned with developing the right “product” for the target market

Place - concerned with all the decisions involved in getting the “right” product to the target market’s place

Promotion - concerned with telling the target market or others in the channel of distribution about the “right” product

  • includes personal selling, mass selling, and sales promotion

Price - must consider the kind of competition in the target market and the cost of the whole marketing mix

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18
Q

Which of the 4 p’s is most important?

A

All 4 P’s are needed in a marketing mix

In fact, they should all be tied together

They all contribute to a whole, decisions about Ps should be made at the same time

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19
Q

Product examples

A

Physical good

Service

Features

Benefits

Quality level

Accessories

Installation

Instructions

Warranty

Product lines

Packaging

Branding

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20
Q

Place

A

Objectives

Channel type market exposure

Kinds of intermediaries

Kinds and locations of stores

How to handle transporting and storing

Service levels

Recruiting intermediaries

Managing channels

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21
Q

Promotion

A

Objectives

Promoiton blend

Sales people: kind, number, selection, training, motivation

Advertising: targets, kinds of ads, media type, copy thrust, prepared by whom

sales promotion

publicity

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22
Q

Price

A

Objectives

Flexibility

Level over product life cycle

Geographic terms

Discounts

Allowances

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23
Q

Marketing plan

A

A written statement of a marketing strategy and the time-relatd details for carrying out the strategy

Should spell out:

  1. What marketing mix will be offered, to whom, and for how long?
  2. What company resources will be needed at what rate
  3. What results are expected
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24
Q

Marketing program

A

Blends all of the firm’s marketing plans into one “big” plan

This program, is the responsibilty of the whole company

Typically, the whole marketing program is an integrated part of the whole-company strategic plan

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25
Q

Firm’s marketing program =

A

Marketing plan (marketing strategy + time related details and control procedures) + other marketing plans

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26
Q

Breakthrough opportunities

A

Opportunities that help innovators develop hard-to-copy marketing strategies that will be very profitable for a long time

It is hard to provide superior value to target customers if competitors can easily copy your marketing mix

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27
Q

4 basic types of opportunities

A

Present prodcuts vs. present markets: market penetration

new products vs. present markets: product development

present products vs. new markets: market development

new products vs. new markets: diversification

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28
Q

SWOT analysis

A

Identifies and lists the firm’s strengths and weaknesses and its opportunities and threats

Helps managers focus on a strategy that takes advantage of the firm’s strengths and opportunities while avoiding its weaknesses and threats to its success

A useful aid for identifying relevant screening criteria and for zoning in on a feasible strategy

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29
Q

4 types of market opportunities

A
  1. Market penetration
  2. Market development
  3. Product development
  4. Diversification
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30
Q

Market development

A

Trying to increase sales by selling present products in new markets

*could involve searching for new uses for a product

Firms may also try advertising in different media to reach new target customers

ex. Dunkin Donuts now sells its popular coffee at grocey stores and not just at its own outlets

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31
Q

Prodcut development

A

Means offering new or improved products for present markets

Firms seek new ways to satisfy customers

ex. Campbell’s came out with a new line of soups
ex. . ski resports have develpped trails for hiking and biking for the summer

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32
Q

Diversification

A

Means moving into totally different lines of business - perhaps entirely unfamilar products, markets, or even levels in the production-marketing system

ex. Mcdonald’s opening hotels in switzerland

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33
Q

Market penetration

A

Means trying to increase sales of a firm’s present products in its present markets - probably through a more aggressive marketing mix

Try to strengthen its relationship with customers to increase their rate of use or repeat purchases, or try to attract competitors customers or current nonusers

ex. Coleman increased its sale of outdoor equipment by promtoinal displays at outdoor events

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34
Q

well defined business and marketing objectives must be:

A

Specific

Measurable

Attainable

Relevant to the target

Timely

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35
Q

Direct/internal marketing environment

A

Company

Competition

Customers

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36
Q

Know the market situation: competitive environment

A

Monopoly

Monopolistic competition

Oligopoly

Pure competition

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37
Q

External marketing assessment

A

Legal

Economic

Technological

Cultural

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38
Q

Marketing mix is used to _________________________

A

address the target market

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39
Q

Good market plan:

A

Specific, measurable, attainable to the target and timely

Strategies (broad)

Tactics (specific)

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40
Q

Breakthrough opportunities are difficult without _________________

A

planning

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41
Q

Planning helps define:

A

competitive advantage

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42
Q

Hit or miss marketing

A

Not planning, just reacting to the market

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43
Q

Gross Domestic Product (GDP) =

A

Gross National Income (GNI)

+ Income earned by foreginers who own resources in the nation

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44
Q

Total income

  • taxes
  • necessities

=

A

Discretionary income

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45
Q

Big Three American Subcultures

A

Hispanic population is now the largest ethnic subculture (12.5%)

African American subculture is at 12.3%

Asian Americans fastest growing racial group 3.6%

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46
Q

Characteristics of the Hispanic Market

A

Looking for spirituality, stronger family ties, more color in lives

Spend more on groceries

shopping is afamily affair

clothing children well as a matter of pride

conveince not importan

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47
Q

Key Trends in the U.S. Consumer Market

A

Graying of America

Generation X - fewer in number

Generation Y - tech savy

48
Q

Gray Market

A

Traditionally neglected by marketers

People are now living longer/healthier lives

Zoomers = active, intieresed in life, enthusiastic consumers with buying power - fasterst growing group of internet users

49
Q

Strategy for Strategy

A

Exploit your strengths and opportunities

Mitigate your weaknesses and threats

Go with your strenths

Attack your competitor’s weaknesses

50
Q

4 major areas of the external marketing environment:

A
  1. Economic environment
  2. Technological environment
  3. Political and legal environment
  4. Cultural and social environment
51
Q

Mission statement

A

Sets out the organization’s basic purpose for being - should focus on a few key goals rather than embracing everyything

Company objectives - provides bguidance in screening possible opportunities

  • guide managers as they search and evaluate opportunities

marketing objectives - should be set within the framework of larger company objectives

52
Q

3 main categories of company resources:

A
  1. Financial strength
  2. Producing capability and flexibilty
  3. Marketing strengths
53
Q

4 types of classifications of the competitive enviornment:

A
  1. Pure competition - most products head toward pure competition. Customers see the different available products as close substitutes, managers just compete with lower and loweer prices, and profit margins shrink, sometimes they cut prices too quickly
  2. Oligopoly - very similar to pure competition
  3. Monopolistic competition - A number of different firms offer marketing mixes that at least some customers see as different. Each competitor tries to get control in its own target market but competition exists
    ex. clorox bleach uses same chemicals but marketing managers help seperate it by using improved poourg spout
  4. Monopoly - firm completely controls a broad product market, are rare in market-directed economies.
    - governments regulate monopolies
54
Q

Competitive barrier

A

The conditions that may make it difficult, or even impossible, for a firm to compete in a market

Such barriers may limit your plans or, alternatively, block competitors responses to an innovative strategy

55
Q

Sherman Act 1890

A

Monopoly or conspiracy in restraint of trade

  • Monopoly or conspiracy to control a product
  • Monopoly or conspiracy to control distribution channels
  • monopoly or conspiracy to fix or control prices
56
Q

Clayton Act 1914

A

Substantially lessens competition

  • Forcing sale of some products with others - tying contracts

Exclusive dealing contracts (limiting buyers’ sources of supply)

Price discrimination by manufacturers

Anti trust

57
Q

Federal Trade Commission Act 1914

A

Unfair methods of competition

  • Unfair policies
  • Deceptive ads or selling practices
  • Deceptive pricing

*if you put ads out, they have to review them

58
Q

Robinson-Patman Act 1936

Tends to injure competition

A

Prohibits “fake” advertising allowances or discrimination in help offered

Prohibits price discrimination on goods of “like grade and quality” without cost justification, and limits quanity discounts

*price discrimination legal if you meet basic criteria

59
Q

Wheeler-Lea Amendment 1938

A

Unfair or deceptive practices

Deceptive packaging or branding

Deceptive ads or selling claims

Deceptive pricing

60
Q

Antimerger Act 1950

A

Lessens competion

Buying competitors

Buying producers or distributors

61
Q

MAguson-Moss Act

A

Unreasonable practices

Product warranties

62
Q

Consumer Products Safety Commission

A

Recall products

63
Q

Food and Drug Administration

A

Deal with labeling laws

If you make health claims, better justify them or FDA gets involved

*FDA has not improved vitamins or cosmetics

64
Q

Changing social and cultural environment:

A

Role of women

More people live in urban areas

65
Q

Difference between GDP and GNI

A

GDP - total market value of all goods and services provided in a country’s economy in a year by both residents and nonresidents of that country

GNI - Does not include income earned by foreigners who own resources

66
Q

Population trends by region

A

Greatest growth: western states like Nevada, arizona, idaho, and utah, sun belt

Texas, georgia, north carolina and virgina arre also growing rapidly

Senior Citizen group is increasing quickly

67
Q

What are three key criteria to be used when determining which opportunities to pursue?

A

Growth potential

competitive superiority

Fit with company resources

68
Q

4 components of a product market

A

What: Product type (type of good and type of service)

To meet what: Customer (user) needs

For whom: Customer types

Where: Geographic area

69
Q

How does a product market different from a generic market?

A

Generic market - a market with broadly similar needs - and sellers offering various, often diverse, ways of satsifying those needs

Product market - a market with very similar needs and sellers offering various close substitute ways of satisfying those needs

70
Q

Segmenting

A

Marketing-oriented managers think of segmenting as an aggregating process - clustering people with similar needs into a “market segment”

market segment - a relatively homogeneous group of customers who will respond to a marketing mix in a similar way

71
Q

4 key features of a good segment:

A
  1. Homogeneous (similar) within - the customers in a market segment should be as similar as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions
  2. Heterogeneous (different) between - the customers in different segments should be as different as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions
  3. Substantial - the segment should be big enough to be profitable
  4. Operational - the segmenting dimensions should be useful for identifying customers and deciding on marketing mix variables
72
Q

3 key market oriented strategies with respect to segmentation:

A
  1. single target market approach - segmenting the market and picking one of the homogeneous segments as the firm’s target market
  2. multiple target market approach - segmenting the market and choosing two or more segments, and then treating each as a seperate target market needing a different marketing mix
  3. combined target market approach - combining two or more submarkets into one larger target market as a basis for one strategy
73
Q

Combined tarket market approach

A

MAy help achieve some economies of scale and require less investment than developing different marketing mixes for different segments

Cons: makes it harder to develop marketing mixes that best satisfy potential customers

74
Q

Segmenters pros and cons

A

Pros: usually fine tune their marketing mixes for each target market - perhaps making basic changes in the product itself - because they want to satisfy each segment very well

Cons: may not be effective for a smaller firm with more limited resources

*they would use single target market approach

75
Q

Why is it important to segment?

A

Hoping to increase sales by getting a much larger share of the business in the markets they target

They can provide superior value and satisfy their customers better

Provides greater profit potential for the firm

76
Q

How does a product market differ from a generic market?

A

Generic market does not include the product type

77
Q

Potential Target Market Dimensions

A

Behavioral needs, attitudes and how present and how potential good/services fit into customers consumption patterns

Urgency: to get need satisfied and desire and wilingness to seek information, compare, and shop

Geographic location: and other demographic characteristics of potential customers

78
Q

WHy is it important to segment?

A

Segmenting can help better meet the needs of the target

79
Q

How do you know when to stop segmenting

A

Steop when profits are too low - less sales lower economies

80
Q

Qualifying dimensions

A

Those relevant to including a customer type in a product market

81
Q

Determining dimensions

A

Those that actual affect the purchase of a specific product or brand in the product market

Determining can vary over time

82
Q

Steps of Market Segmentation

A
  1. Naming broad product markets
  2. Segmenting these head product markets in order to select target markets and develp marketing mixes
83
Q

Positioning

A

How customers think about proposed brands

Without positioning it would be hard to differentiate

84
Q

Negative Word of Mouth (WOM) and Power of Rumors

A

We weight negative WOM more heavily than we do positve comments

  • Negative WOM is easy to spread, especially online
  • determined detractors
  • information/rumor distortion
85
Q

Cutting-Edge WOM Influences

A

Social Networking

Crowd Power

Guerilla Marketing

Viral Marketing (pyramid scheme)

86
Q

PSSP Hierarchy of Needs

A

Personal Needs

Social Needs

Safety Needs

Physiological Needs

87
Q

Selective Exposure

A

We notice things via our senses: sight, sound, touch, smell, taste

88
Q

Stimulus generalization:

A

tendency for stimuli similar to a conditioned stimulus to evoke similar, unconditioined responses

ex. family branding, pdouct line extensions, licensing, look alike packagin

89
Q

There are more purchases to:

A

There are more purchase to businesses and organizationla customers

90
Q

4 types of business customers

A
  1. Producers of goods and services
  2. Intermediaries
  3. Government units
  4. Non Profit Organizations
91
Q

Driving motivation in the business purchases:

A

Focus on economic factors - less emotional

Look at total cost of ownership

92
Q

Key roles in the business buying process

A

Users - people who use the product

Influences - people who write specifications R&D, and engineers

Buyers - purchasing managers

Deciders - people with approved - top management

Gatekeepers - control flow of info (secretary)

93
Q

POQ

Purchase Order Request

A

Request for management to approve a buy

extensive, routinized, limited

94
Q

3 types of business buying processes

A

New task buying - new needs and wants info

Straight rebuy - routine purchase made before

modified rebuy - the in-between

*opportunities with a new rask

95
Q

Benefits of exclusive vendor relationship

A

Lower costs

Less likely to lose order/get cut

96
Q

Disadvnatage of exclusive vendor relationships

A

Reduce flexibility

Joint Problems

Shared information

97
Q

Role of E-Commerce in Business to Business

A

Search engines

Online forums

Competitive bids

Post requirements and invite bids

Case studies

Social networking

98
Q

Firmagraphics of manufactuerers, services,govnt, retailers,and wholesalers?

A

Manufactuers - not many big ones, clustered in certain areas,

services - smaller and more fragmented

government - very big and a lot of GDP

retailers and wholesalers - buying committee, reorders are straight rebuys, inventory replenishment

99
Q

FCPA

Foregin Corrupt Practice Act

A

1977

Prohibits U.S. firms from paying bribes to foreign officials

100
Q

True or False: Marketing research provides “the answer”

A

False

101
Q

Advantages/Disadvantages of in house vs. outside Market Research

A

In house - more control

Outside - costly - they know the info

102
Q

True or False: Marketing Managers do not need to ve involved in the decision and scope of market research

A

False

103
Q

Five-Step Approach to Marketing Research Process

A
  1. Defining the problem
  2. Analyzing the situation
  3. Getting problem-specific data
  4. Interpreting the data
  5. Solving the problem

*most important step is defining the goal/problem

104
Q

Partnership

A

A good market researcher is a “consulting partner”

Can successfully translate the numbers into actionable results

105
Q

Quantitative research

A

Research involving the use of structured questions in which response options have been predetermined and a large number of respondents involved

If properly structured, results are projectable to the total population

Open ended, covers more

Not projectable

106
Q

Qualitative research

A

Research involving collecting, analyzing, and interpreting data by observing what people do and say

Results are not projectable

Structured, numbers, easier to analyze

107
Q

Key to projectability

A

Random sample

Every respondent has an = chance to particpate in the survey

Therefore, your sample will accurately reflect teh population

108
Q

Ken Concerns in Data Interpretation

A

Popuation

Validity

Sample

Confidence Intervals

109
Q

Sampling error

A

Concerns how the sample was drawn and the size of the sample

Non-sampling error is everything else that can affect the results

110
Q

Validity

A

Are you asking the right questions to measure what you want to measure?

Are you missing a critical question?

Are the questions worded propertly?

Is the question order appropriate?

  • sensitive should be last

Are you asking the right people and the right number of people?

111
Q

What determines methodology?

A

The nature of the problem

The time available to conduct the research

The budget available for the research

The risk of wrong information

112
Q

Qualitative techniques

A

Focus group interview, telephone surveys, personal

113
Q

Quantitative technique

A

surveys, questionaires

114
Q

Difference between a population and a sample

A

Population - total group of interest

Sample - part of the population (less costly)

115
Q

Validity

A

Concerns the extent to which data measure they were intended to measure

116
Q

Confidence Interval

A

A range around a measurement that conveys how precise the measruement is

Often seen on the news when the results of polls are released

Marketing (15 decks)

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