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Marketing - MGCR 352 > Textbook Chapters 1-2-3-6-4-8-9 > Flashcards

Textbook Chapters 1-2-3-6-4-8-9 Flashcards

1
Q

C1: What is marketing?

A

The American Marketing Association states that “marketing is the activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”

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2
Q

C1: What are the core aspects of marketing?

A
  1. Satisfying customer needs & wants
  2. Entails an exchange
  3. Requires product, price, place and promotion decisions
  4. Can be performed by both individuals and organizations
  5. Affects various stakeholders
  6. Helps create value
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3
Q

C1: What is an exchange?

A

The trade of things of value between the buyer and the seller so that each is better off as a result.

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4
Q

C1: What is the marketing mix (four Ps)?

A

Product, price, place, and promotion—the controllable set of activities that a firm uses to respond to the wants of its target markets.

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5
Q

C1: What are goods?

A

Items that can be physically touched.

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6
Q

C1: What is a service?

A

Any intangible offering that involves a deed, performance, or effort that cannot be physically possessed; intangible customer benefits that are produced by people or machines and cannot be separated from the producer.

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7
Q

C1: What are ideas?

A

Intellectual concepts—thoughts, opinions, and philosophies.

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8
Q

C1: What is business-to-consumer (B2C marketing)?

A

The process in which businesses sell to consumers.

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9
Q

C1: What is business-to-business (B2B) marketing?

A

The process of buying and selling goods or services to be used in the production of other goods and services, for consumption by the buying organization, or for resale by wholesalers and retailers.

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10
Q

C1: What is consumer-to-consumer (C2C) marketing?

A

The process in which consumers sell to other consumers.

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11
Q

C1: What is value?

A

Reflects the relationship of benefits to costs, or what the consumer gets for what he or she gives.

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12
Q

C1: What is value cocreation?

A

Customers act as collaborators with a manufacturer or retailer to create the product or service.

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13
Q

C1: What is relational orientation?

A

A method of building a relationship with customers based on the philosophy that buyers and sellers should develop a long-term relationship.

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14
Q

C1: What is customer relationship management (CRM)?

A

A business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm’s most valued customers.

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15
Q

C2: What is a marketing strategy?

A

A firm’s target market, marketing mix, and method of obtaining a sustainable competitive advantage.

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16
Q

C2: What is a sustainable competitive advantage?

A

Something the firm can persistently do better than its competitors.

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17
Q

C2: What are the 4 macro strategies for developing customer value?

A
  1. Customer excellence
  2. Operational excellence
  3. Product excellence
  4. Locational excellence
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18
Q

C2: What is customer excellence?

A

Involves a focus on retaining loyal customers and excellent customer service.

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19
Q

C2: What is operational excellence?

A

Involves a firm’s focus on efficient operations and excellent supply chain management.

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20
Q

C2: What is product excellence?

A

Involves a focus on achieving high-quality products; effective branding and positioning is key.

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21
Q

C2: What is locational excellence?

A

A method of achieving excellence by having a strong physical location and/or Internet presence.

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22
Q

C2: What is a marketing plan?

A

Written document composed of an analysis of the

  • current marketing situation,
  • opportunities and threats for the firm,
  • marketing objectives and strategy specified in terms of the four Ps,
  • action programs, and
  • projected or pro forma income (and other financial) statements.
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23
Q

C2: What is the planning phase?

A

The part of the strategic marketing planning process when marketing executives, in conjunction with other top managers

(1) define the mission or vision of the business and
(2) evaluate the situation by assessing how various players, both in and outside the organization, affect the firm’s potential for success.

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24
Q

C2: What is the implementation phase?

A

The part of the strategic marketing planning process when marketing managers

(1) identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning (see also segmentation, targeting, and positioning) and
(2) implement the marketing mix using the four Ps.

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25
Q

C2: What is the control phase?

A

The part of the strategic marketing planning process when managers evaluate the performance of the marketing strategy and take any necessary corrective actions.

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26
Q

C2: What is a mission statement?

A

A broad description of a firm’s objectives and the scope of activities it plans to undertake; attempts to answer two main questions:

What type of business is it?

What does it need to do to accomplish its goals and objectives?

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27
Q

C2: What is a situation analysis?

A

Second step in a marketing plan; uses a SWOT analysis that assesses both the internal environment with regard to its Strengths and Weaknesses and the external environment in terms of its Opportunities and Threats.

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28
Q

C2: What is a SWOT analysis?

A

A method of conducting a situation analysis within a marketing plan in which both the internal environment with regard to its Strengths and Weaknesses and the external environment in terms of its Opportunities and Threats are examined.

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29
Q

C2: What is segmentation, targeting, and positioning (STP)?

A

Firms use these processes to identify and evaluate opportunities for increasing sales and profits.

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30
Q

C2: What is a market segment?

A

A group of consumers who respond similarly to a firm’s marketing efforts.

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31
Q

C2: What is market segmentation?

A

The process of dividing the market into groups of customers with different needs, wants, or characteristics—who therefore might appreciate products or services geared especially for them.

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32
Q

C2: What is target marketing or targeting?

A

The process of evaluating the attractiveness of various segments and then deciding which to pursue as a market.

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33
Q

C2: What is market positioning?

A

Involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.

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34
Q

C2: What are integrated marketing communications?

A

Represents the promotion dimension of the four Ps; encompasses a variety of communication disciplines—general advertising, personal selling, sales promotion, public relations, direct marketing, and electronic media—in combination to provide clarity, consistency, and maximum communicative impact.

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35
Q

C2: What is a metric?

A

A measuring system that quantifies a trend, dynamic, or characteristic.

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36
Q

C2: What is a strategic business unit (SBU)?

A

A division of the firm itself that can be managed and operated somewhat independently from other divisions and may have a different mission or objectives.

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37
Q

C2: What are product lines?

A

Groups of associated items, such as those that consumers use together or think of as part of a group of similar products.

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38
Q

C2: What is a market share?

A

Percentage of a market accounted for by a specific entity.

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39
Q

C2: What is relative market share?

A

A measure of the product’s strength in a particular market, defined as the sales of the focal product divided by the sales achieved by the largest firm in the industry.

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40
Q

C2: What is the market growth rate?

A

The annual rate of growth of the specific market in which the product competes.

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41
Q

C2: What is a market penetration strategy?

A

A growth strategy that employs the existing marketing mix and focuses the firm’s efforts on existing customers.

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42
Q

C2: What is a market development strategy?

A

A growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international.

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43
Q

C2: What is product development strategy?

A

A growth strategy that offers a new product or service to a firm’s current target market.

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44
Q

C2: What is a diversification strategy?

A

A growth strategy whereby a firm introduces a new product or service to a market segment that it does not currently serve.

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45
Q

C2: What is related diversification?

A

A growth strategy whereby the current target market and/or marketing mix shares something in common with the new opportunity.

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46
Q

C2: What is unrelated diversification?

A

A growth strategy whereby a new business lacks any common elements with the present business.

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47
Q

C3: What is social media?

A

Media content used for social interactions such as YouTube, Facebook, and Twitter.

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48
Q

C3: What is the 4E framework for social media?

A
  1. Excitement
  2. Education
  3. Experience
  4. Engagement
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49
Q

C3: What are the 3 categories of social media?

A
  1. social networking sites
  2. media-sharing sites
  3. thought-sharing sites
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50
Q

C3: What is a blog?

A

A web page that contains periodic posts; corporate blogs are a new form of marketing communications.

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51
Q

C3: What is a corporate blog?

A

A website created by a company and often used to educate customers.

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52
Q

C3: What is a professional blog?

A

Website written by a person who reviews and gives recommendations on products and services.

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53
Q

C3: What is a personal blog?

A

Website written by a person who receives no products or remuneration for his or her efforts.

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54
Q

C3: What is a microblog?

A

Differs from a traditional blog in size. Consists of short sentences, short videos, or individual images. Twitter is an example of a microblog.

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55
Q

C3: What is showrooming?

A

Customers visit a store to touch, feel, and even discuss a product’s features with a sales associate, and then purchase it online from another retailer at a lower price.

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56
Q

C3: What are the 7 primary motivations for mobile app usage?

A
  1. Self-expression
  2. Discovery
  3. Preparation
  4. Accomplishing
  5. Shopping
  6. Socializing
  7. “Me time”
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57
Q

C3: What is an ad-supported app?

A

Apps that are free to download, but place ads on the screen when using the program to generate revenue.

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58
Q

C3: What is a freemium app?

A

Apps that are free to download, but include in-app purchases (see also in-app purchases).

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59
Q

C3: What is an in-app purchase?

A

When a game or app prompts or allows customers to make small “micropurchases” to enhance an app or game.

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60
Q

C3: What is a paid app?

A

Apps that charge the customer an up-front price to download the app ($0.99 is the most common), but offer full functionality once downloaded.

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61
Q

C3: What are paid apps with in-app purchase?

A

Apps that require the consumer to pay initially to download the app and then offer the ability to buy additional functionality.

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62
Q

C3: What is sentiment analysis?

A

A technique that allows marketers to analyze data from social media sites to collect consumer comments about companies and their products.

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63
Q

C3: What is the social media engagement process?

A

Listen → Analyze → Do

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64
Q

C3: What is a hit?

A

A request for a file made by web browsers and search engines.

Hits are commonly misinterpreted as a metric for website success; however, the number of hits typically is much larger than the number of people visiting a website.

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65
Q

C3: What is a page view?

A

The number of times an Internet page gets viewed by any visitor.

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66
Q

C3: What is the bounce rate?

A

The percentage of times a visitor leaves the website almost immediately, such as after viewing only one page.

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67
Q

C3: What is the click path?

A

Shows how users proceed through the information on a website— not unlike how grocery stores try to track the way shoppers move through their aisles.

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68
Q

C3: What is the conversion rate?

A

Percentage of consumers who buy a product after viewing it.

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69
Q

C3: What is keyword analysis?

A

An evaluation of what keywords people use to search on the Internet for their products and services.

70
Q

C3: What are the social media campaign steps?

A
  1. Identify strategy & goals
  2. Identify target audience
  3. Campaign: experiment & engagement
  4. Develop budget
  5. Monitor & change
71
Q

C4: What are business ethics?

A

Refers to a branch of ethical study that examines ethical rules and principles within a commercial context, the various moral or ethical problems that might arise in a business setting, and any special duties or obligations that apply to persons engaged in commerce.

72
Q

C4: What are marketing ethics?

A

Refers to those ethical problems that are specific to the domain of marketing.

73
Q

C4: What is deceptive advertising?

A

A representation, omission, act, or practice in an advertisement that is likely to mislead consumers acting reasonably under the circumstances.

74
Q

C4: What is corporate social responsibility (CSR)?

A

Refers to the voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders.

75
Q

C4: What is the framework for ethical decision-making?

A
  1. Identify issues
  2. Gather information and identify stakeholders
  3. Brainstorm and evaluate alternatives
  4. Choose a course of action
76
Q

C6: What is need recognition?

A

The beginning of the consumer decision process; occurs when consumers recognize they have an unsatisfied need and want to go from their actual, needy state to a different, desired state.

77
Q

C6: What are functional needs?

A

Pertain to the performance of a product or service.

78
Q

C6: What is the consumer decision process?

A
  1. need recognition
  2. information search
  3. alternative evaluation
  4. purchase
  5. post-purchase
79
Q

C6: What are psychological needs?

A

Pertain to the personal gratification consumers associate with a product or service.

80
Q

C6: What is an internal search for information?

A

Occurs when the buyer examines his or her own memory and knowledge about the product or service, gathered through past experiences.

81
Q

C6: What is an external search for information?

A

Occurs when the buyer seeks information outside his or her personal knowledge base to help make the buying decision.

82
Q

C6: What is the internal locus of control?

A

Refers to when consumers believe they have some control over the outcomes of their actions, in which case they generally engage in more search activities.

83
Q

C6: What is the external locus of control?

A

Refers to when consumers believe that fate or other external factors control all outcomes.

84
Q

C6: What is a performance risk?

A

Involves the perceived danger inherent in a poorly performing product or service.

85
Q

C6: What is a financial risk?

A

Risk associated with a monetary outlay; includes the initial cost of the purchase, as well as
the costs of using the item or service.

86
Q

C6: What is a social risk?

A

The fears that consumers suffer when they worry others might not regard their purchases positively.

87
Q

C6: What is a psychological risk?

A

The fear of an actual harm should a product not perform properly.

88
Q

C6: What is a safety risk/psychological risk?

A

Associated with the way people will feel if the product or service does not convey the right image.

89
Q

C6: What is a universal set?

A

Includes all possible choices for a product category.

90
Q

C6: What is a retrieval set?

A

Includes those brands or stores that the consumer can readily bring forth from memory.

91
Q

C6: What is an evoked set?

A

Comprises the alternative brands or stores that the consumer states he or she would consider when making a purchase decision.

92
Q

C6: What is the evaluative criteria?

A

Consist of a set of salient, or important, attributes about a particular product.

93
Q

C6: What are determinant attributes?

A

Product or service features that are important to the buyer and on which competing brands or stores are perceived to differ.

94
Q

C6: What are consumer decision rules?

A

The set of criteria that consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives.

95
Q

C6: What is a compensatory decision rule?

A

When the consumer is evaluating alternatives and trades off one characteristic against another, such that good characteristics compensate for bad ones.

96
Q

C6: What is a multi-attribute model?

A

A compensatory model of customer decision making based on the notion that customers see a product as a collection of attributes or characteristics. The model uses a weighted average score based on the importance of various attributes and performance on those issues.

97
Q

C6: What is a noncompensatory decision rule?

A

At work when consumers choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes.

98
Q

C6: What is a conversion rate?

A

Percentage of consumers who buy a product after viewing it.

99
Q

C6: What are the components of postpurchase outcomes?

A
  • Customer satisfaction
  • Customer loyalty
  • Postpurchase dissonance
100
Q

C6: What is postpurchase cognitive dissonance?

A

The psychologically uncomfortable state produced by an inconsistency between beliefs and behaviours that in turn evokes a motivation to reduce the dissonance; buyers’ remorse.

101
Q

C6: What is negative word of mouth?

A

Occurs when consumers spread negative information about a product, service, or store to others.

102
Q

C6: What is a motive?

A

A need or want that is strong enough to cause the person to seek satisfaction.

103
Q

C6: What is Maslow’s hierarchy of needs?

A

A paradigm for classifying people’s motives. It argues that when lower-level, more basic needs (physiological and safety) are fulfilled, people turn to satisfying their higher-level human needs (social and personal); see also physiological, safety, social, and personal needs.

104
Q

C6: What are physiological needs?

A

Those relating to the basic biological necessities of life: food, drink, rest, and shelter.

105
Q

C6: What are safety needs?

A

One of the needs in Maslow’s hierarchy of needs; pertain to protection and physical well-being.

106
Q

C6: What are love needs?

A

Needs expressed through interactions with others.

107
Q

C6: What are esteem needs?

A

Needs that enable people to fulfill inner desires.

108
Q

C6: What is self-actualization?

A

When a person is completely satisfied with his or her life.

109
Q

C6: What is an attitude?

A

A person’s enduring evaluation of his or her feelings about and behavioural tendencies toward an object or idea; consists of three components: cognitive, affective, and behavioural.

110
Q

C6: What is the cognitive component?

A

A component of attitude that reflects what a person believes to be true.

111
Q

C6: What is the affective component?

A

A component of attitude that reflects what a person feels about the issue at hand—his or her like or dislike of something.

112
Q

C6: What is the behavioural component?

A

A component of attitude that comprises the actions a person takes with regard to the issue at hand.

113
Q

C6: What is perception?

A

The process by which people select, organize, and interpret information to form a meaningful picture of the world.

114
Q

C6: What is learning?

A

Refers to a change in a person’s thought process or behaviour that arises from experience and takes place throughout the consumer decision process.

115
Q

C6: What are lifestyles?

A

A component of psychographics; refers to the way a person lives his or her life to achieve goals.

116
Q

C6: What are reference groups?

A

One or more persons whom an individual uses as a basis for comparison regarding beliefs, feelings, and behaviours.

117
Q

C6: What is a culture?

A

The set of values, guiding beliefs, understandings, and ways of doing things shared by members of a society; exists on two levels: visible artifacts (e.g., behaviour, dress, symbols, physical settings, ceremonies) and underlying values (thought processes, beliefs, and assumptions).

118
Q

C6: What are situational factors?

A

Factors affecting the consumer decision process; those that are specific to the situation that may override, or at least influence, psychological and social issues.

119
Q

C6: What is involvement?

A

Consumer’s interest in a product or service.

120
Q

C6: Describe the elaboration likelihood model.

A

Message (e.g., ad)

High involvement = greater attention, deeper processing → develops strong attitudes and purchase intentions

Low involvement = less attention, peripheral processing → generates weak attitudes and increased use of cues

121
Q

C6: What is extended problem solving?

A

A purchase decision process during which the consumer devotes considerable time and effort to analyzing alternatives; often occurs when the consumer perceives that the purchase decision entails a lot of risk.

122
Q

C6: What is limited problem solving?

A

Occurs during a purchase decision that calls for, at most, a moderate amount of effort and time.

123
Q

C6: What is impulse buying?

A

A buying decision made by customers on the spot when they see the merchandise.

124
Q

C6: What is habitual decision making?

A

A purchase decision process in which consumers engage with little conscious effort.

125
Q

C8: What is globalization?

A

Refers to the processes by which goods, services, capital, people, information, and ideas flow across national borders.

126
Q

C8: What is a trade deficit?

A

Results when a country imports more goods than it exports.

127
Q

C8: What is a trade surplus?

A

Occurs when a country has a higher level of exports than imports.

128
Q

C8: What is gross domestic product (GDP)?

A

Defined as the market value of the goods and services produced by a country in a year; the most widely used standardized measure of output.

129
Q

C8: What is gross national income (GNI)?

A

Consists of GDP plus the net income earned from investments abroad (minus any payments made to nonresidents who contribute to the domestic economy).

130
Q

C8: What is purchasing power parity (PPP)?

A

A theory that states that if the exchange rates of two countries are in equilibrium, a product purchased in one will cost the same in the other, expressed in the same currency.

131
Q

C8: What are the components of a country market assessment?

A
  • economic analysis using metrics
  • infrastructure and technology
  • government actions
  • sociocultural analysis
132
Q

C8: What is an infrastructure?

A

The basic facilities, services, and installations needed for a community or society to function, such as transportation and communications systems, water and power lines, and public institutions like schools, post offices, and prisons.

133
Q

C8: What is a tariff?

A

A tax levied on a good imported into a country; also called a duty.

134
Q

C8: What is a quota?

A

Designates the maximum quantity of a product that may be brought into a country during a specified time period.

135
Q

C8: What is exchange control?

A

Refers to the regulation of a country’s currency exchange rate.

136
Q

C8: What is an exchange rate?

A

The measure of how much one currency is worth in relation to another.

137
Q

C8: What is a trade agreement?

A

Intergovernmental agreement designed to manage and promote trade activities for specific regions.

138
Q

C8: What is a trading bloc?

A

Consists of those countries that have signed a particular trade agreement.

139
Q

C8: What are the global entry strategies?

A
  • export
  • franchising
  • strategic alliance
  • joint venture
  • direct investment
140
Q

C8: What is exporting?

A

Producing goods in one country and selling them in another.

141
Q

C8: What is franchising?

A

A contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor.

142
Q

C8: What is a strategic alliance?

A

A collaborative relationship between independent firms, though the partnering firms do not create an equity partnership; that is, they do not invest in one another.

143
Q

C8: What is a joint venture?

A

Formed when a firm entering a new market pools its resources with those of a local firm to form a new company in which ownership, control, and profits are shared.

144
Q

C8: What is a direct investment?

A

When a firm maintains 100 percent ownership of its plants, operation facilities, and offices in a foreign country, often through the formation of wholly owned subsidiaries.

145
Q

C8: What is reverse innovation?

A

When companies initially develop products for niche or underdeveloped markets, and then expand them into their original or home markets.

146
Q

C8: What is glocalization?

A

The process of firms standardizing their products globally, but using different promotional campaigns to sell them.

147
Q

C9: What are the steps of the segmentation, targeting and positioning process?

A

Segmentation: Step 1 - establish strategy or objectives. Step 2 - use segmentation methods.

Targeting: Step 3 - evaluate segment attractiveness. Step 4 - select target market.

Positioning: Step 5 - identify and develop positioning strategy.

148
Q

C9: What is geographic segmentation?

A

The grouping of consumers on the basis of where they live.

149
Q

C9: What is demographic segmentation?

A

The grouping of consumers according to easily measured, objective characteristics such as age, gender, income, and education.

150
Q

C9: What is psychographic segmentation?

A

A method of segmenting customers based on how they spend their time and money, what activities they pursue, and their attitudes and opinions about the world in which they live.

151
Q

C9: What are psychographics?

A

Used in segmentation; delves into how consumers describe themselves; allows people to describe themselves using those characteristics that help them choose how they occupy their time (behaviour) and what underlying psychological reasons determine those choices.

152
Q

C9: What are self-values?

A

Goals for life, not just the goals one wants to accomplish in a day; a component of psychographics that refers to overriding desires that drive how a person lives his or her life.

153
Q

C9: What is a self-concept?

A

The image a person has of himself or herself; a component of psychographics.

154
Q

C9: What are lifestyles? (again)

A

A component of psychographics; refers to the way a person lives his or her life to achieve goals.

155
Q

C9: What is the VALS framework used for?

A

Psychographic segmentation.

156
Q

C9: What is benefit segmentation?

A

The grouping of consumers on the basis of the benefits they derive from products or services.

157
Q

C9: What is behavioural segmentation?

A

A segmentation method that divides customers into groups based on how they use the product or service. Some common behavioural measures include occasion and loyalty.

158
Q

C9: What is occasion segmentation?

A

A type of behavioural segmentation based on when a product or service is purchased or consumed.

159
Q

C9: What is loyalty segmentation?

A

Strategy of investing in loyalty initiatives to retain the firm’s most profitable customers.

160
Q

C9: What is geodemographic segmentation?

A

The grouping of consumers on the basis of a combination of geographic, demographic, and lifestyle characteristics.

161
Q

C9: How do you evaluate segment attractiveness?

A
  1. Identifiable
  2. Substantial
  3. Reachable
  4. Responsive
  5. Profitable
162
Q

C9: What are the 4 targeting strategies?

A
  1. Undifferentiated or mass marketing
  2. Differentiated
  3. Concentrated
  4. Micromarketing or one-to-one
163
Q

C9: What is an undifferentiated targeting strategy (mass marketing)?

A

A marketing strategy a firm can use if the product or service is perceived to provide the same benefits to everyone, with no need to develop separate strategies for different groups.

164
Q

C9: What is a differentiated targeting strategy?

A

A strategy through which a firm targets several market segments with a different offering for each.

165
Q

C9: What is a concentrated targeting strategy?

A

A marketing strategy of selecting a single, primary target market and focusing all energies on providing a product to fit that market’s needs.

166
Q

C9: What is micromarketing?

A

An extreme form of segmentation that tailors a product or service to suit an individual customer’s wants or needs; also called one-to-one marketing.

167
Q

C9: What is a cookie?

A

Computer program, installed on hard drives, that provides identifying information.

168
Q

C9: What is market positioning?

A

Involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.

169
Q

C9: What is value proposition?

A

The unique value that a product or service provides to its customers and how it is better than and different from those of competitors.

170
Q

C9: What is value? (again)

A

Reflects the relationship of benefits to costs, or what the consumer gets for what he or she gives.

171
Q

C9: What is a perceptual map?

A

Displays, in two or more dimensions, the position of products or brands in the consumer’s mind.

172
Q

C9: What is the ideal point?

A

The position at which a particular market segment’s ideal product would lie on a perceptual map.

Marketing - MGCR 352 (2 decks)

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