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86 Cards in this Set

  • Front
  • Back
What is marketing?
Marketing is a social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others
Marketing is the delivery of _____ at a _____
customer satisfaction at a profit
What are the 2 goals of marketing in relation to customers?
Goal 1: Attract new customers by promising superior value
Goal 2: Retain and grow current customers by providing satisfaction
What are the three parts in the process of marketing?
1. Understand customers and the marketplace
2. Create customer value (importance to customer)
3. Capturing value and creating strong relationships
What are the 4 core marketing concepts?
1. Products and services
2. Value, satisfaction and quality
3. Exchange, transactions and relationships
4. Needs, wants and demands
What are needs, wants and demands?
Needs: state of felt deprivation (I am hungry)

Wants: Needs shaped by culture and individual personality (I want a hamburger, frenchies and a soda)

Demands: Wants backed by buying power (I have money for this meal)
What are the 2 things that will satisfy customer wants and needs? What does each one mean?
Market Offering: Some combination of products, services, information or experiences offered to a market to satisfy a need or want

Market Myopia: Focusing more on specific products than benefits and experiences (eg - Cadillac "The Cadillac of the Industry.")
What are the 2 ways customers choose between products and services? How does each one help them to choose?
1. Customer Value: benefit that the customer gains from using a product compared to the cost of obtaining a product (cost reference)

2. Customer Satisfaction: depends on the product's perceived performance in delivering value relative to a buyer's expectations
How do consumers obtain products and services?
Through an exchange of either or both transaction and/or relationships
Who purchases products and services?
In the market, there are buyers who share a particular need or want than can be satisfied by a company's products or services
When it comes to who purchases products and services within the market, what are the 2 different types of buyers?
Actual and Potential
What is the evolution of customer-driven marketing strategies?

What does each concept mean?
Production Concept- consumers will buy products that are available and highly affordable
Product Concept- consumers favor products that offer the best quality, performance, and innovative features
Selling concept- Consumers will buy products only is the company promotes/sells these products
Marketing Concept- focuses on needs/wants of target markets and delivering satisfaction better than competitors
Societal Marketing Concept- focuses on needs/wants of target markets and delivering superior value in a broader context
What is CRM?
Customer Relationship Management

The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
How much more does it cost to attract a new customer as it does to keep a current one?

With that in mind, marketers must be concerned with what?
5 to 10 times more

with the lifetime value of the customer
When you tap into the value of customers, what comes first second and third?
Customer Satisfaction
Customer Loyalty
Lifetime Value
What is the marketer's task when it comes to tapping into customers?

Remember the uncontrollable 4Cs, STP, and 4 Ps
1- To look for opportunities with consumers, competitors, companies, and contexts

2- Segementing, targeting, and positioning

3- Implement Positioning: product, price, promotion and place
What is the marketing environment?
The "actors" and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers
What are the micro and macro environments in marketing?
Micro= includes the "actors" close to the company

Macro= involves larger societal forces
What are the things impacted by environmental forces in the marketing environment and what are those forces?
Impacted by: Suppliers/Intermediaries, Organizations and Customers

Environmental Sources: Social, Economic, competitive, technological, and regulatory
What makes up each of the environmental factors in the marketing environment?
Social: Demographic shifts and cultural changes
Economic: Macro-Economic conditions and consumer income
Competitive: Alternative forms of competition; types of competition; increasing foreign competition
Technological: Changing technology, ecological impact of technology
Regulatory: laws protecting competition; laws affecting marketing mix actions; self regulation; consumerism
In the micro environment, what must the marketers do when it comes to the company?
when it comes to the suppliers?
Marketers must consider and work together with finance, R&D, purchasing, operations and accounting while ALSO relating to broader company goals and strategies

Suppliers must keep an eye on supply availability and pricing AND cultivate effective relationships with suppliers
In the micro environment, what must the marketers do when it comes to the marketing intermediaries?
When it comes to the customers?
When it comes to the marketing intermediaries, the marketers must cultivate relationships with those who promote, sell and distribute goods to final buyers. ALSO, they must include resellers, physical distribution firms and marketing services agencies and financial intermediaries.

When it comes to the customers, marketers must know which customers:
-consumers
-businesses
-resellers
-government
-international
The mission statement and strategic plan tell which customers.
Who are the competitors in the microenvironment? What must marketers do when it comes to competitors?
Any entity with which a company competes for customers, resources, revenues, and/or future opportunities

Marketers must monitor its competitors' offerings to create strategic advantage
Who are the publics in the microenvironment?.
A group that has an actual or potential interest in or impact on an organization. This includes financial, media, gvt, citizen-action, local neighborhoods, general public and internal public
What are the 6 macro forces in the macroenvironment?
1. Demographic
2. Cultural
3. Economic
4. Natural
5. Technological
6. Political
What is the demographic environment?
the study of human populations in terms of size, density, location, age, gender, race, occupation and other statistics
What are the key US demographic trends?
6
1. Changing age structure: population is getting older
2. Changing Family Structure: marrying later, fewer children, working women, and non-family households
3. Geographic shifts: moving to sunbelt and suburbs
4. Change in education level: increased college attendance and white-collar workers
5. Change in ethnic and racial diversity: 73% caucasion, 12% African American, 10% Hispanic and 3.4% Asian and Pacific Islander
What are the 4 generations alive in america today? What are their respective ages and percentage of population?
Seniors: born before 1946; 27%
Baby Boomers: between 1946-1964; 28%
Generation X: Between 1965-1976; 17%
Generation Y: After 1976; 28%
What are the stats on the Baby Boomers?
Amount of people
% of pop
% personal income
Other information
78 million
Represent 28% of the population and earn 50% of personal income
Born when US emerged as political, military and economic super power
Transitional generation to dual-income households
What are the stats on Generation X?
Amount of people
years born in
other information
49 million
1965-1976
first latchkey children
maintain a cautious economic outlook
respond to socially responsible companies
will be primary buyers of goods by 2010
Born during the height of the Cold War and saw the end of the Iron Curtain and the emergence of a New World Order
What are the key demographic stats about generation Y?
Born between? Millenials?
Amount?
What types of things cater to them?
Represent first full generation of what age?
one in 4 lives in ______. Makes it more radically _____.
Why are they a challenging target for marketers?
- Born between 1977 and 1994. 1994-2000 are millenials.
- 72 million strong; almost as large as the baby boomers; fastest growing
- new products, services, and media cater to Gen Y
- Represent the first full generation of the Information Age
- This generation is more radically diverse; 1 in 4 lives in a single parent household.
- This group can be challenging for marketers because they respond to ads differently and they prefer to encounter those ads in different places. ALSO Gen Yers respond to humor, irony and the (apparently) unvarnished truth.
What are the 5 factors that affect the buying and spending of consumers?
1. Developed/Emerging/Subsistence economies
2. Inflation, recession
3. Index of Consumer Sentiment
4. Income trends like Engel's Laws
5. Share of spending
What is the natural environment and what are the 4 trends?
Involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities.

Trends:
1. Shortage of raw materials
2. INcreased pollution
3. Increased government intervention
4. Waste and disposal/long run implications
What is the technological environment and what are the 4 trends?
The technological age is defined by the information age. Everything is faster, there is a removal od geographic boundaries, a convergence of ideas, values and products, loss of privacy and removal of personal interaction.

Trends:
1. Internet
2. Digitization
3. Bio Technology
4. Characteristics: Rapidly changing, creating new market opportunities, and rendering existing products/technologies obsolete
What is the political environment and what are the 3 trends?
Consists of laws, gvt agencies, and pressure groups that influence or limit various organizations and individuals in a given society

Trends:
1. Legislation has impact on businesses worldwide like carbon control and patents
2. Laws protect companies, consumers, and the interests of society
3. Increased emphasis on socially responsible actions
What is the cultural environment made up of?
The cultural environment is made up of institutions that affect a society's basic values, perceptions, preferences and behaviors
What are the key cultural trends of the cultural environment? Which is the most important to recognize?
1. People's view of themselves; identify with brands for self-expression/self-actualization
2. People's views of others; more "we"
3. People's views of organizations(decline in trust)
4. People's views of society (more patriotism)
5. People's views of nature (coexistence)
6. People's views of the universe (less religion, increasing spirituality)
What are marketing information systems?
Consists of people, equipment and procedures that gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers
What are the three types of marketing information data that marketing managers can obtain?
Internal Data
marketing Intelligence
Marketing Research
What is internal data?
Advantages/Disadvantages?
it's a type of information needed by managers that is a computerized collection of information from data sources (ie acctg) WITHIN the company
Advan: quick, easy access to info
Disadvan: incompleteness or inappropriateness to a particular situation
What is marketing intelligence?
It's a type of info needed by managers that is a collection and analysis of PUBLICLY AVAILABLE INFO about competitors and the marketing environment (ie technological)
What is marketing research?
It's a way that marketers can obtain information. It is the design, collection, analysis and REPORTING OF DATA about a specific marketing situation facing the organization; it provides managers with ACTIONABLE INFORMATION that REDUCES RISK
What are some sources of competitive intelligence?
Company employees
Internet
Garbage
Published Information
Competitors' employees
Trade shows
Benchmarking
Channel members and key customers
What are the 4 steps in the management research process?
1. Define the problem and research objectives
2. Develop the research plan for collecting information
3. Implement the research plan - collecting and analyzing data
4. Interpret and report the research findings
What are the 2 parts in the 1st phase of the marketing research process?
Decision problems and research problems.
ex: Decision problem= Develop packaging for a new product
Research problem: evaluate effectiveness of alternate package designs
What is included in the 2nd phase of the marketing research process?
You ask yourself:
1. What impact will this have?
2. What is the scope the project?
3. Where will this lead us?
4. What type of data: qualitative or quantitative?
5. What is the appropriate research design? Exploratory, Descriptive or causal?
Quan or Qual?
Exploratory research
Descriptive
Causal

What type of tests for each one?
Expl: Qualitative - Focus Groups
Descriptive: Qualitative - Survey
Causal: Quantitative - Survey or secondary data/experiments
What does qualitative data do?

Quantitative?
Qualitative data is an unstructured, exploratory research methodology based on small samples intended to provide insight and understanding to the problem setting *Conducted to DEFINE the problem

Quantitative data is a research methodology that seeks to quantify the data and typically applies some form of statistical analysis * Is CAUSE-AND-EFFECT analysis
What are the data collection sources?

What does each one contain?
Primary and Secondary

Primary: Info collected for the specific purpose at hand

Secondary: Information that already exists somewhere. It is obtained quicker and with less cost, however it may not be usable data; PUBLIC info
What must all data collection sources be in order to use them?
4 things
1. Relevant
2. Accurate
3. Current
4. Impartial
How do you evaluate second data?

SECOND
Specifications/Methodology (How data was collected
Error/Accuracy (Errors/Biases/Limitations)
Currency (Time frame and frequency of updates)
Objective (why was the data collected?)
Nature (definition of key variables/units of measure)
Dependability (expertise, credibility, reputation, and trustworthiness of the source - how projectable)
What are focus groups?
What are they good for?
When are they used?
What could be a problem with them?
An assemblage of 8-12 people, perferably a homogeneous group and let them talk in a directed manner.
Good for generating product ideas and modifications, understanding consumer vocabulary, revealing consumer needs and understanding findings.
They are used when using exploratory research.
They can have a high cost and could be an unrepresentative sample with subjective interpretation
What are surveys?
When are they used?
What can be a problem?
Most widely used for primary data collection and better for descriptive. Administered in person (expensive), over the phone (expensive) or by mail (least expensive but lowest response rate).
There can be problems with wording questions, sensitive information, and amount of time
What are observational techniques good and not good for?

What are the different types?
Good for things that people won't tell you. Not good for feelings, attitudes, motives or private behavior.

They could be...
1. Contrived ( lab) vs natural setting (home store)
2. Disguised (hidden cameras) vs undisguised (Nielson's people meter)
3. Human (store clerk watching) vs mechanical (eye camera)
4. Single source data systems; monitor individual purchase behavior and exposure to various marketing efforts (Nielson, IRI)
When it comes to experiments, what is the best place to give them in terms of control?
The lab provides the ability to control other factors besides the phenomenon of interest
What are the things to be considered in a sampling plan?
-Sampling element, sample size, and population
- whether to use a sample or a census
- to sample confidence intervals as they relate to the true value of the population
- how are you going to access the population from which to draw a sample, sampling frame
What are the 2 types of samples? Which one is usually better?
Probability sampling (better)
Non-probability sampling
What is contained in step three of the marketing research process?
What does this step show the importance of?
Data is collected by the company or an outside firm.
The data is then processed and checked for accuracy and completeness and coded for analysis
This step shows the importance of data validation
What are the 3 steps contained in step four of the marketing research process?
1- Interpret the findings
2- Draw conclusions
3- Report to management
Why do we study consumer behavior?
If you don't understand WHY someone might want your product, you can't accurately POSITION it or develop a unique MARKETING MIX that helps convince them to BUY IT.
What is consumer buyer behavior?
Consumer buyer behavior refers to the buying behavior of final customers - individuals and households who buy goods and services for personal consumption
What is the marketing strategy of consumer buyer behavior?
To affect cognition behavior
What are the 3 components of the stimulus response model?
Marketing and Other Stimuli
Buyer's Black Box
Buyer's Response
What is the marketing and other stimuli in the stimulus response model that sort of describes consumer buying behavior?
Product, Price, Place, Promotion (marketing)
Economic, Technological, Political and Cultural (other stimuli)
What is the Buyer's Black Box in the stimulus response model?
Buyer's decision process and characteristics affecting consumer behavior
What is the buyer's response in the stimulus response model?
Product choice, Brand Choice, Dealer Choice, Purchase Timing and Purchase Amount
What are the characteristics affecting consumer behavior starting with the most outside characteristics?
Cultural
Social
Personal
Psychological
Buyer
What are the cultural factors that affect consumer behavior?
What is culture?
Culture is a set of basic values, perceptions, wants and behavior learned by a member of society from family and other important institutions.

The factors that affect consumer behavior also come from subculture. A subculture is a group of people with shared value systems based on common life experiences (eg: African-Americans)
What is a social class?
How do they influence?
What are examples of social influences?
A social class is people who tend to exhibit similar buying behavior. Social classes are relatively permanent and ordered divisions of society. They are measured by a combination of income, occupation, education, wealth and other variables.

They influence by trickle-down methods and status float (upward diffusion)

Social influences include family, opinion leaders, reference groups and social class
What are the positions in a family?
What does each one do?
GDBUDI
Gatekeeper: Controls the flow of information
Decider: Decides whether or not to buy
Buyer: Actually buys
User: actually consumer
Disposer: discontinues usage
Influencer: provides information to other
What are reference groups?
Reference groups are the people to whom an individual looks when forming attitudes about an object
What are the personal influences on consumer buying behavior?
Lifestyle Identification?
Personal influences: Age and Family Life Cycle Stage; Economic Situation and Occupation;Personality/Self-Concept
Lifestyle Identification: Activities, Opinions and Interests
What are the psychological influences on consumer buying behavior?
Motivation
Perception
Learning
Beliefs and Attitudes
What is motivation as a psychological influence on consumer buying behavior?
Motivation is a need that presses enough to enough a person to seek satisfaction
What is Maslow's Hierarchy of Needs?
Go from bottom to top, from most needed to least.
1. Physiological Needs: hunger, thirst
2. Safety Needs: security, protection
3. Social Needs: sense of belonging, love
4. Esteem Needs: self-esteem, status
5. Self-Actualization (Self-development)
How is the psychological (perception) one of the characteristics affecting consumer buying behavior? What are the selective processes?
Perception is the process by which people select, organize and interpret information.

Selective processes:
1. Selective attention: consumers screen out information
2. Selective distortion: people interpret to support beliefs
3. Selective retention: people retain points which support attitudes
How is the psychological (learning) one of the characteristics affecting consumer buying behavior? What is the learning process?
Learning is the behavioral change due to direct experience and behavioral learning and thinking/cognitive learning

The learning process consists of drive, cues and responses. There is reinforcement between stages cues and response when the response is satisfying.
How is the psychological (beliefs and attitudes) one of the characteristics affecting consumer buying behavior?
Attitude is a person's relatively consistent evaluations, feelings and tendencies towards something
-involves liking or disliking
-difficult to change

Belief is a descriptive thought that a person has about something
-based on personal experience, advertising, and discussion with other people
-do not necessarily involve emotions; liking or disliking
What are the 4 types of buying decision behavior? Explain them.
1. Complex: Highly involved, significant brand differences (ex: computer)
2. Dissonance-reducing: highly involved, little brand differences (ex: carpeting)
3. Habitual: Low involvement, little brand differences (ex: salt)
4. Variety-seeking: low involvement, significant perceived brand differences (ex: cookies)
What is the purchase decision process in order?
5 steps
1. Need recognition
2. Information Search: seeking value
3. Alternative evaluation: assessing value
4. Purchase decision: buying value
5. Postpurchase behavior: value in consumption
Use the decision of which college to go to and label each step of it using the purchase decision process.
1. Need recognition: need to go to college
2. Information search: gather info
3. Alternative evaluation: which is best alternative
4. Purchase decision: Picked PSU
5. Postpurchase behavior: Was PSU the best pick? Why? Have i received value?
In step one of the purchase decision process, how can needs be triggered by both internal and external stimuli?
Internal Stimuli: Normal needs become strong enough to drive behavior

External Stimuli: advertisements, friends, marketers
What is the second step of the purchase decision process?

In step two of the purchase decision process, how is information sought?
Information Search

Consumers exhibit heightened attention or actively search information. The sources of information are personal, commercial, public, experiential, word-of-mouth and a consideration set (set of brands taken seriously by the consumer).
What is step 3 of the purchase decision process?

In step 3, evaluation procedure depends on _____ and _____ _____.
Most buyers evaluate multiple attributes, each of which is ______ differently.
At the end of the evaluation stage, ______ _______ are formed.
Evaluation of Alternatives

1. consumer and buying situation
2. weighted
3. purchase intentions
What is the fourth step of the purchase decision process?

What is the purchase intention influenced by?
Product Purchase

Influenced by family, friends, reference groups, and situational factors such as finances, job status and weather.
What is step 5 of the purchase decision process?

Why is satisfaction important?

What is common?
Postpurchase behavior.

Satisfaction is important because...
-delighted consumers engage in positive word-of-mouth
-Unhappy customers tell, on average, 11 other people
-It costs more to attract a new customer than it does to retain an existing customer

Cognitive dissonance is common (an uncomfortable feeling or stress caused by holding two contradictory ideas simultaneously)