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142 Cards in this Set
- Front
- Back
Who said, "We all live by selling something"?
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Robert Lewis Stevenson
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Who said, "Marketing isn't somebody's responsibility; marketing is everybody's responsibility"?
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Jack Welch
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Who said, "Any business enterprise has only two basic functions: marketing and innovation, all else is detail"?
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Peter Drucker
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What BYU marketing professor said, "Marketing transcends product and service; marketing reaches the human heart"?
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Michael Swenson
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What are the four steps of marketing?
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1) Select the appropriate target markets
2) Specify the marketing mix 3) Attract and retain customers 4) Drive profitability |
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Why is it so important for marketing managers to facilitate exchange by creating value for the firm's chosen customers?
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If there is no value, customers leave. Without customers, companies fail. Value us created by meeting customer's functional and emotional needs.
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What are the four elements of the marketing mix?
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Product, Price, Promotion, and Place
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What are the three levels strategy?
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Corporate Strategy
Business Strategy Marketing Strategy |
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What is the aim of corporate strategy?
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To decide what businesses the corporation should be engaged in.
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What is the aim of business strategy?
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To compete effectively in a given business.
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What is the aim of marketing strategy?
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To orchestrate the marketing mix to deliver value to a particular market segment.
Marketing strategy addresses a specific target market with a cohesive marketing mix of product, price, promotion, and place. |
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What are the BCG (Boston Consulting Group) Portfolio Model, SWOT Analysis, and Product-Market Expansion Matrix?
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Models for Strategic Decisions
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What is an SBU?
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Strategic Business Unit
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What is the purpose of the BCG Portfolio Model?
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To quantify performance measures and growth targets of SBUs/products
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What are the two performance measures of the BCG Portfolio Model?
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Market Growth Rate
Relative Market Share |
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What are the four types of SBUs in the BCG Portfolio Model?
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Stars
Cash Cows Question Marks Dogs |
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Which of the four types of SBU/product in the BCG Portfolio Model represents an SBU/product with:
1)High market growth rate AND high relative market share 2)Low market growth rate AND high relative market share 3)High market growth rate AND low relative market share 4)Low market growth rate AND low relative market share |
1)Stars
2)Cash Cows 3)Question Marks 4)Dogs |
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What are the four categories analyzed in the SWOT Analysis?
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Strengths, Weaknesses, Opportunities, Threats
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Strengths and weaknesses are internal characteristics. What are some characteristics that can be strengths or weaknesses?
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Production costs
Marketing skills Financial resources Brand image Technology |
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Opportunities and threats are external conditions. What are some of these conditions?
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Economic
Demographic Social Technological Political/legal Competitive |
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What is the purpose of the Product-Market Expansion Matrix?
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To determine the best method for expansion
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Draw the Product-Market Expansion Matrix
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What are the four marketing philosophies/orientations?
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Production Orientation
Sales Orientation Market Orientation Societal Orientation |
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What characterizes the product orientation?
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If you build it, they will come.
[] Focuses on the firm's capabilities [] Does not consider the needs of the market [] Does not consider competitors |
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What characterizes the sales orientation?
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Sell, sell, sell!
[] Aggressive sales techniques will result in higher sales [] May fail to understand customers' needs |
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What characterizes the market orientation?
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Deliver superior customer value
[] Understand customer needs/wants [] Know company capabilities [] Know competitors [] Satisfy customer needs and wants at a profit |
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What characterizes the societal orientation?
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Preserve and enhance society
[] Concern about the environment [] Provide environmentally friendly products []Consider society's long-term best interest |
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True/False
It is better to focus on delivering exceptional value to customers than to benchmark and copy successful competitors. |
True
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Value = Benefits - ?
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Costs
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? = Benefits - Costs
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Value
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Value = ? - Costs
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Benefits
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What are the determinants of customer perceived value?
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Customer Perceived Value
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Customer perceived value = total customer benefit - total customer cost.
What are the elements of total customer benefit? |
Product benefit
Service benefit Personnel benefit Image benefit |
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Customer perceived value = total customer benefit - total customer cost.
What are the elements of total customer cost? |
Monetary cost
Time cost Energy cost Psychic cost |
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True/False:
Successful products only need to be functional. They do not need to make an emotional connection between product and person. |
False
Successful products are more than function. They make an emotional connection between product and person. |
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Who said, "If I'd asked my customers what they wanted, they'd have said a faster horse"?
He asked what problems are people buying their horse to solve, and marketed a very successful product to solve those problems |
Henry Ford
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Who said, "Many products fail because companies develop them from the wrong perspective. Companies focus too much on what they want to sell their customers, rather than...what problems customers are trying to solve"?
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Clayton Christensen
Ask yourself the question, "What problems are people buying your product to solve?" |
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Draw the six levels of the marketing strategy process, starting with the marketing environment and ending with profits. This is called the "Path to _____________"
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This is called the "Path to profitability"
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What are the four profitability drivers?
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Customer acquisition
Customer retention Sales per customer Margin |
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What are four keys to customer acquisition?
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Find new ways to acquire customers profitably
Acquire customers with less upfront sales and marketing investment Acquire higher value customers Eliminate unprofitable customer acquisition activities where the cost of acquiring a customer exceeds the value of that customer |
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What are four keys to customer retention?
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Eliminate the root causes of customer defection
Actively recover customers that have just left or are about to leave Develop loyalty initiatives tailored to keep top customers Acquire more customers that are likely to be more intrinsically loyal |
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What are three key points of the "sales per customer" profitability driver?
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Increase "share of customer" for customers who buy from both you and your competition
Generate add-on sales using your own portfolio of products and services Partner with other firms to create add-on sales opportunities which leverage your customer relationships |
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What four changes can be made at the margin to drive profitability?
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Increase Price
Shift mix of purchase toward higher margin products Change customer behaviors so that they are less expensive to serve Discourage, or even terminate, unprofitable customers based on identifiable characteristics or behaviors |
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Look for the money - a product that demands a price far exceeding its cost.
What famous example of this involves the beach, a round pan, and $0.25? |
The Frisbee!
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Keep the lines of communication open. A customer who complains to you is much more likely to be retained than a customer who only complains to his or her friends.
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Satisfaction, Complaint Behavior, Retention
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Who are the three players in the marketing environment?
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Customers, the company, and competitors
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Marketers cannot afford to make decisions in a vacuum.
What five major forces act on the marketing environment? |
Economic
Social Competitive Technology Regulatory |
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Which of the following are controllable variables?
[] Social forces [] Economic forces [] Technological forces [] Competitive forces [] Regulatory forces |
None.
They are all uncontrollable variables in the marketing environment. |
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Which of the following are controllable variables?
[] Product [] Price [] Promotion [] Place |
All.
They are all controllable variables in the marketing environment. |
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Some social forces are culture and demographics. What is marketing's definition of culture? How does culture affect the marketing environment?
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Culture: shared values, attitudes, and practices that shape human behavior
Shared values lead to shared attitudes and lifestyles which affect consumer behavior. Marketers must pay attention to culture to know how it will affect their consumers' behavior. |
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What characteristics of a population does demographics measure?
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Age, gender, ethnicity, income, occupation
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What are the four main generational cohorts today?
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Baby boomers
Gen X Gen Y (Millennials) Tweens |
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Economic forces include measures of gross income, disposable income and discretionary income.
1) Which of the three refers to the money left after taxes and necessities? 2) Which refers to the total income amount in one year? 3) Which refers to the money left after taxes for necessities such as food, housing, clothing and transportation? |
1) Discretionary income
2) Gross income 3) Disposable income |
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What are the elements of Porter's Five Forces Model?
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[] Competitive Rivalry
[] Threat of Entrants [] Threat of Substitutes [] Power of Suppliers [] Power of Buyers |
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What are regulatory forces?
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State and federal laws
Example: state bottle bills |
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In global marketing, what are the most important questions to ask?
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1) Should we market abroad?
2) Which foreign markets are most attractive? 3) What are the risks? 4) How should we enter? 5) Should we alter our marketing mix to satisfy local preferences? |
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What five characteristics do marketers look at in foreign markets?
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Customer Needs
Customer Purchasing Power Market Size Market Growth Rate Market Access |
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What question do marketers ask when considering customer needs in a foreign market?
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Will customers in the foreign market respond favorably to the firm's products?
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What question do marketers ask when considering customer purchasing power in a foreign market?
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Do customers have the financial resources to purchase the firm's products?
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What question do marketers ask when considering the market size of a foreign market?
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Is the foreign market large enough to make products profitable?
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What question do marketers ask when considering the market growth rate of a foreign economy?
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Is the foreign market growing?
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What question do marketers ask when considering market access in a foreign market?
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Can customers in the foreign market be reached through the firm's promotion/distribution channels?
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What are the four risk categories of global marketing?
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[] Competitive
[] Economic [] Legal [] Political |
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What is the competitive risk in global marketing?
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Competitor's responses to the new product
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What is the economic risk in global marketing?
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The country's economy - inflation, government debt
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What is the legal risk in global marketing?
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Protection of intellectual property (IP) and contracts
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What is the political risk in global marketing?
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Demonstrations, strikes, civil strife, abrupt government changes, terrorism
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Global market entry strategies include exporting, licensing, joint venture and direct investment.
What is exporting? |
Entering foreign markets by selling goods produced in the company's home country, often with little modification.
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Global market entry strategies include exporting, licensing, joint venture and direct investment.
What is licensing? |
Entering foreign markets by an agreement with a licensee in the foreign market. The licensee buys the right to use the company's manufacturing process, trademark, patent, or other items of value.
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Global market entry strategies include exporting, licensing, joint venture and direct investment.
What is a joint venture? |
A company joins investors in a foreign market to create a local business in which the company shares joint ownership and control.
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Global market entry strategies include exporting, licensing, joint venture and direct investment.
What is direct investment? |
Developing foreign-based manufacturing or assembly facilities.
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What two questions do marketers ask when deciding whether to standardize or customize their marketing mix in a foreign market?
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1) Will buyers in foreign markets respond favorably to the same products, packaging, promotion, pricing and distribution as do domestic customers?
--Standardization-- 2) If not, to what extent must offerings be customized for foreign tastes and requirements? --Customization-- |
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The product trade-off
What are the advantages to a globally standardized product offering? |
Product efficiency
------------------------- Standard product in all markets Economies of scale Cost efficiences |
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The product trade-off
What advantages are their to a customized product offering? |
Market suitability
---------------------- Custom product Select markets Market fit |
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You can go global with a standardized product, multinational with a customized product, or ____________ with a mix of the two.
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Glocal
--------------- Standard platform adapted to local requirements |
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Higher or lower:
Regardless of how companies go about pricing their products, their foreign prices probably will be _________ than their domestic prices for company products. |
Higher
Additional costs include [] Transportation [] Tariffs [] Importer margin But in the end, what the market will bear is the ultimate determinant of what the price should be. |
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What does "dumping" mean in the context of global marketing?
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The pricing of goods at less than their cost of production or less than the price in the home market.
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Distribution across borders can be challenging. Products move
[] from the seller to the [] channels between nations to the [] channels within nations to the [] customer At which stage do marketers typically experience the greatest challenge? |
[] Channels within nations
Challenges include: [] underdeveloped infrastructure within nations [] channel members |
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Ethics are:
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the moral principles and values that govern the actions and decisions of an individual or group.
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Who said, "Ethics is knowing what you have the right to do and then doing what you know is right"?
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Judge Potter Stewart
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What are the three components of the Fraud Triangle?
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Opportunity
Pressure Rationalization |
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Three levels of ethical behavior
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[] Ethical Leadership Understanding
[] Application of Ethics to Business [] Personal Ethical Understanding |
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In Ethical Leadership we consider three groups of people. Honest employees, dishonest employees, and the _______ group. Weak ethical leadership permits the _______ group to behave as if they were the dishonest employees. Strong ethical leadership induces the _______ group to behave as if they were the honest employees.
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Swing group
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What does social responsibility mean in a marketing context?
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Organizations are a part of a larger society and are accountable to that society for their actions.
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What does sustainability mean in a marketing context?
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Organizations will focus on the world's social problems and view them as opportunities to build profits and help the world.
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What is green marketing?
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The development and marketing of products designed to minimize negative effects on the environment.
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How much revenue does the marketing research industry bring in annually?
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$35 Billion
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What is marketing research?
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The function that links consumers, customers, and the public to the marketer through information
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The information gathered through marketing research is used for:
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[] Identifying and defining marketing opportunities and problems
[] Generating, refining, and evaluating marketing actions [] Monitoring marketing performance [] Improving understanding of marketing process |
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Marketing research is obtained by:
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1) Clarifying the decision to be made
2) Specifying the information required to address the issues 3) Designing the method for collecting information 4) Managing the data collection process 5) Analyzing the data 6) Communicating the finds and implications |
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What is the reason for doing marketing research?
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Basically, to support marketing decisions
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What is the difference between market research and marketing research?
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Market research gathers information about demographics, how many people buy, how much people buy, how much people pay, which brands people prefer.
Marketing research gathers information about how to effectively design, promote, position, distribute, and price products for a given market. |
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Requirement ONE of good marketing research
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The research questions address specific marketing issues that are important to the client.
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Requirement TWO of good marketing research
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The data sample consists of relevant people--decision-makers, product users, and influencers.
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Requirement THREE of good marketing research
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The analytic methods give clear answers to marketing issues. Method fits the research.
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Requirement FOUR of good marketing research
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The recommendations give strategic direction and how-to marketing tactics -- support marketing decisions.
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Requirement FIVE of good marketing research
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The research report is flavored with "voice of the customer" quotations.
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Why do marketing research?
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[] To illuminate customers' needs
[] Management may think they understand customers' needs, but they may be wrong. [] "False-consensus bias" describes tendency for managers to over-estimate how many people are similar to them [] Avoid the "golden gut" problem--relying on your own intuition for big decisions. |
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Marketing = Art + Science
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Relying on the "art" (the golden gut) without reference to the "science" (marketing research) can lead to disaster.
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Why not do marketing research?
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[] Research is often costly
[] If the cost of a wrong assumption is less than the cost of research, don't do the research |
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What is causality?
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A causes B
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What is correlation?
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A and B happen simultaneously
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Causality and correlation are not the same, but they are related. How?
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[] Causality does lead to correlation (typically)
[] But correlation doesn't even imply causality Believing correlation does imply causality is a shamefully common mistake among managers. |
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A correlation between A and B could be:
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[] A causes B
[] B causes A [] C causes A and B [] something else entirely |
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What are the five steps in the marketing research process?
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1) Define the problem
2) Design research project 3) Collect data 4) Analyze data 5) Take action |
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In the marketing research process, how can we best define the problem?
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[] Identify the client's research objective
[] Clarify decisions to be made |
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What are the first steps of designing a research project?
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[] Review secondary research for insight and direction
[] Screen for appropriate sample [] Write questions that address goals and decisions |
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What is secondary research and what are some examples of it?
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Data previously collected for any purpose other than the one at hand
[] Internal corporate information [] Government agencies [] Trade/industry associations [] Business publications [] News media |
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What are the advantages of secondary research?
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[] Saves time and money (it's often free!)
[] Provides direction for primary data collection |
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What are the disadvantages of secondary research?
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[] May not provide sufficient information
[] May not be on target with research problem |
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What is primary data?
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Information collected for the first time. Can be used for solving specific problem under investigation.
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What questions do we need to ask in order to collect relevant primary data?
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[] What information is needed?
[] How do we collect the data? |
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What are the two types of research data?
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Qualitative Research
Quantitative Research |
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What is quantitative research, what is it used for, and how is it collected?
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[] Used to describe and test characteristics about the population or phenomenon
[] Results are numbers [] Allows for generalization to larger population [] Survey, scanner, experiments |
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What is quantitative research, what is it used for, and how is it collected?
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[] Used to explore and gain ideas and insights about human behavior -- feelings, perceptions, decision-making process
[] Results are words or pictures [] Focus groups, personal interviews, observation |
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What are the advantages of primary data?
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[] Answer specific question
[] Current data [] Known source of data [] Maintain secrecy |
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What are the disadvantages of primary data?
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[] Expensive
[] Time consuming |
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What are some methods of data collection?
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[] Personal interviews
[] Focus group interviews [] Observation [] Web, email, mail surveys |
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What are some types of errors in data collection?
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[] Sampling error
[] Measurement error [] Coverage error [] Non-response error |
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What causes sampling error, and what can be done to avoid it?
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[] Drawing small samples from large populations
[] Increase the sample size |
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What causes measurement error, and what can be done to avoid it?
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[] Difference between the information obtained and the information wanted
[] Ask appropriate questions |
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What causes coverage error and what can be done to avoid it?
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[] Sample does not represent the population of interest
[] Screen for representative sample |
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What causes non-response error, and how can it be avoided?
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[] Obtained sample differs from the original selected sample
[] Compare non/late respondents and respondents |
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What are the steps for analyzing the data collected through marketing research?
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1) Organize
2) Interpret 3) Draw conclusions |
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What are some systems for analyzing the data collected through marketing research?
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[] Cross tabs
[] Analysis of variance [] Regression analysis [] Factor analysis [] Cluster analysis [] Discriminant analysis [] MaxDiff analysis [] Conjoint analysis |
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What is Cross Tabs used for?
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[] Frequency counts
[] Conditions, attitudes, and/or behaviors that occur most often |
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What is Analysis of Variance used for?
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[] Variability around an average
[] Averages that differ beyond expected variability |
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What is Regression Analysis used for?
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[] Relationship between a dependent variable and one or more independent or predictor variables
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What is a Factor Analysis used for?
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[] Data reduction techniques
[] Identify highly correlated variables, group into factors |
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What is Cluster Analysis used for?
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[] Classifies objects or people into groups based on similarities
[] Divide markets into segments |
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What is Discriminant Analysis used for?
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[] Ability of predictor variable to discriminate between categories
[] Generate perceptual maps depicting brands |
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What is the MaxDiff Analysis used for?
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[] Measures most/least important or most/least appealing
[] Determine choice preferences |
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What is the Conjoint Analysis used for?
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[] Estimates the value of component attributes given tradeoffs
[] Develop new products and identify pricing alternatives |
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The last step in the marketing research process is to take action. That usually means presenting the outcome of the research.
Good presentations highlight a solid research process that addresses marketing decisions head on. They will include sections like: |
[] Purpose of the research--decisions to be made
[] Sample -- people relevant to the decision [] Questions -- reinforce survey questions [] Answers -- present clear and concise answers to survey questions [] Recommendations -- make action-oriented recommendations [] Appendix -- use the appendix for details about the research |
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What are some common research mistakes?
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1) Blindly listening to research
2) Blindly ignoring research 3) Bias from: [] Sampling Error [] Measurement Error [] Coverage Error [] Non-response Error |
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Who said, "There is only one boss--the customer. And he/she can fire everybody in the company from the chairman on down, simply by spending his/her money somewhere else"?
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Sam Walton
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"Listen to the whispers so you don't have to hear the screams."
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Cherokee saying
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In a marketing context, what are two important points about the nature of consumer behavior?
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1) People are not all the same--person variability
2) People make choices depending on the situation--situation variability |
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What is a market?
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An aggregate of individuals and/or organizations that have:
[] needs and wants [] ability, willingness, and authority to purchase products/services that satisfy needs and wants [] two main types: consumer (B2C) and business (B2B) All markets, ultimately, are people. |
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In both the B2B and B2C markets there are two types of buyers. What are they?
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[] Individual buyers--purchasing agent
[] Group buyers--the buying center |
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What are the key roles in a buying center?
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[] Buyers
[] Influencers [] Deciders [] Gatekeepers [] Users |
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What is consumer behavior defined as?
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The processes a consumer uses to make purchase decisions, as well as to use and dispose of products.
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