Marketing Exam #1

Front 1

What is Marketing?

Back 1

is an organizational function and a set of processes for creating, capturing, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

Front 2

What is marketing myopia (according to Theodore Levitt)?

Back 2

Approaching your target market inappropriately - failing to see the bigger picture - inability to distinguish between what you are selling and who you are selling it to.

Front 3

3. What are the 4 components of the Marketing Mix?

Back 3

Product
Price
Place
Promotion Decisions

Front 4

4. What are the various eras of marketing?

Back 4

::Production:: 20th Century -Manufacturers focused on production innovation
::Sales:: 1920-1950: Heavy doses of personal selling and advertising
::Market:: 1950-1990 - Focus on consumer wants & needs before attempting to sell.
::Marketing:: Better value, better orientation, better marketing.

Front 5

Sales Oriented VS Market Oriented
Organization?
Bussiness Definition?
Target Market?
Tools?

Back 5

Sales oriented:
Organization focus – production and lots of personal selling and advertising
Define Business – WWII time, less consumption, had to really go get customers
Target market – Women and children with only necessary goods
Make profit – sales orientation
Tools Achieve Profit – Lots of personal selling and advertising
VS
Market oriented:
Organization focus - Consumerism, the customer is king
Define Business - Things for the consumer and the new families
Target market – New families home from the war need to start a home, need products for the home
Make profit – Cater to customers, they now have options which brings competition
Tools to achieve profit – Started looking a lot more into marketing, what the consumer wants for a design and product.

Front 6

6. What is the value equation? How do marketers create value for a product or service?

Back 6

Value reflects the relationship of benefits to costs - what you get for what you give

Value goes up whenever --- BENEFIT goes UP //// COST goes DOWN

Front 7

What is a marketing strategy?

Back 7

Target market (Who to satisfy)
+
Marketing Mix (How to satisfy)

A marketing strategy identifies 1) a firm’s target market(s), (2) a related marketing mix – their four Ps, and (3) the bases upon which the firm plans to build a sustainable competitive advantage.

Front 8

What is Modern Marketing?

Back 8

Marketing is human activity directed at satisfying needs and wants through exchange processes.

Front 9

Customer Relationship Management?
(CRM)

Back 9

Managing your relationship with a customer via tracking their purchases, their interests through cards/special memberships.
Firms that practice value based marketing use a process known as CRM, a business philosophy and set of strategies, programs and systems that focus on identifying and building loyalty among the firm’s most valued customers

Front 10

Good Mission statement?

Back 10

1. Expressed in MKT Terms
2. Indicate a Target MKT
3. Indicate an area of competency
4. Indicate a position

Front 11

What is a SWOT or situation analysis?

Back 11

Using 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.

Front 12

What are the characteristics of the growth strategies that a company could follow? (Don’t forget the 5th one that I added: Integration)
PG 53

Back 12

1. Market Penetration
2. Market Development
3. Product Development
4. Diversification
5. Integration:
a. Controlling your marketing channels
i. Vertical integration: Forward/Backward --- Exxon / Walmart
b. Controlling your competition
i. Horizontal Integration: Auto-Nation

Front 13

Why are the macro-environmental factors called “uncontrollable?” What are the only 2 things that you can do about them?

Back 13

1. Study the factors
2. See if there are any changes
3. Determine if changes represent opportunities or threats.

Front 14

Important demographic factors =

Back 14

a. Generational cohorts (Baby Boomers, Seniors, Gen X, Gen Y, Tweens) – know their characteristics
Baby boomers; diversity as a cause, idealistic, mass movement, conform to rules, killer job, became institutions, tv, have technology, task-technologie
Generation X; accept diversity, pragmatic/cynical, self-reliant/individualistic, reject rules, killer life, mistrust institutions, pc, use technology, multitask, latchkey kids
Generation Y; celebrate diversity, optimistic/realistic, self-inventive/ individualistic, rewrite the rules, killer lifestyle, irrelevance of institutions, internet, assume technology, multitask fast, nurtured
b. Movement of population (East to West, North to South 1980’s, Central City to Suburbs 1946s, Suburbs to Central City – 1990s )
c. Increased ethnic diversity in population – what is the fastest growing minority in the US? Asian-Americans

Front 15

Important social factors =

Back 15

the gender revolution, people marrying later, single-parent households

Front 16

Important political/regulatory factors

Back 16

US antitrust legislation (Sherman Act, Clayton Act, etc) what does each prohibit/regulate? (See handout)
((((SEE HANDOUT))))
Sherman Act 1890: makes monopolies and attempts to monopolize a misdemeanor
Clayton act 1914: prohibits tying contracts that force you to buy unwanted goods, outlaws discrimination n prices to different buyers
Federal trade commission act 1914: creates federal trade commission to deal with antitrust and unfair competition
Robinson patman act 1936: prohibits charging different prices to different buyers, and make supplementary services equal to all purchasers. On a proportionately equal basis
Wheeler-lea amendments to the FTC Act of 1938: Outlaws false and deceptive advertisement, and prohibits practices that might injure public
Lehman act 1946: establishes protection for trademarks
Celler-Kefauver antimerger act 1950: strengthens clayton act to prevent corporate acquisition that reduce competition
Hart-Scott-Rodina act 1976: requires large companies to notify the government of their intent to merge

Front 17

Typical economic indicators:

Back 17

a. GDP: Gross Domestic Produc
b. CPI: Consumer Price Index
c. Unemployment rate
d. Interest rates
e. Stock Market, etc.

Front 18

Competitive environments= how do you know that you are in… What are the marketing implications of each situation? (*)

Back 18

Pure competition? - Many competitors, easy to enter, (price takers from supply/demand)
In an oligopoly? - Handful of competitors 2-5, (don’t compete in price mostly quality)
In a monopoly? - Single supplier for the whole market
In monopolistic competition? – Monopolies of location/perception (branding by Chiquita bananas)

Front 19

What is the difference between a Market Information System (MIS) and Formal Market Research?

Back 19

MIS is a set of procedures and methods for the regular, planned collection, analysis and presentation of information that marketers can use to make marketing decisions.
Formal market research works towards solving a problem using market information systems.

Front 20

What does the formal market research process consist of?

Back 20

1- Definition of the problem 2- situation analysis a) focus groups b) use of secondary data
3- planning the research design and gathering of primary data a) observation method
b)questioning method (survey research) ; questionnaire design(open-ended, closed-ended or scaled-response)? c) experimental method 4- collecting the data 5-interpretation of the data
6- problem solution

Front 21

What is a focus group?
What is it used for in Market Research?

Back 21

Small group of people usually 8-12
To make decisions, as primary data

Front 22

What kind of sample is a focus group?

Back 22

A convenience sample, also not random

Front 23

Can you infer statistical conclusions from the opinions of a focus group? Why or why not?

Back 23

No because they give qualitative research and statistics come from quantitative research

Front 24

What is secondary data? What are its advantages and disadvantages?

Back 24

➢ Advantages
o Rapid availability
o Inexpensive
o May shed light on the problem
➢ Disadvantages
o Often doesn’t provide a sufficient answer
o Quality of data sometimes difficult to determine

Front 25

Should you use secondary sources of secondary data? What should you do instead?

Back 25

No, never, use primary data.

Front 26

What are the 3 major methods of gathering primary data?

Back 26

People watching People, People Watching Physical Phenomena, Machines watching people
Conducting focus group interviews
Surveying customers using email

Front 27

What kind of information do you get from scanner data? What kind of information does it not give you?

Back 27

Quantitative data on purchase decisions. It does not give you why the purchases occurred.

Front 28

What are the relative advantage and disadvantage of using open-ended versus close-ended responses in a questionnaire?

Back 28

a. Close End – Limit the choices ( Yes Or No )
b. Open Ended –
i. Scale
ii. Rensis “Likert”
1. Strongly Agree
2. Agree
3. Disagree
4. Strongly Disagree

Front 29

In order for a sample to be random, what do you have to give each member of the population being tested?

Back 29

FUCKU

Front 30

16. What is the name of the data base that contains the information about the population to be tested?

Back 30

Frame

Front 31

What is measurement error? What is frame error?

Back 31

FKUAGAIN

Front 32

What is off shoring?

Back 32

Setting up manufacturing in another country

Front 33

What is the key difference between the International Monetary Fund (IMF) and the World Bank?

Back 33

IMF promotes international monetary cooperation and facilitates expansion and growth of trade. World Bank fight poverty and improves living standards in impoverished countries.

Front 34

What was the General Agreement on Tariffs and Trade (GATT) and what was its purpose?

Back 34

GATT – An organization to oversee the functioning of global markets. The purpose is lower trade barriers.

Front 35

How did the GATT operate to achieve its purpose?

Back 35

Trade negotiations amongst countries

Front 36

What is the successor organization to the GATT?

Back 36

WTO – World Trade Organization

Front 37

What is the Gross Domestic Product (GDP) of a country and how does it differ from its Gross National Income (GNI)?

Back 37

GDP- Is the market value of goods and services provided by a country in a year,
GNI – is the net income earned from investments abroad plus GDP.

Front 38

What is Purchasing Power Parity (PPP)?

Back 38

A frequently used metric of an overall economy is the PPP, 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, if pexpressed in the same currency.

Front 39

What is the “infrastructure” of a country and what are the key elements that marketers are especially concerned about it?

Back 39

The basic facilities, services, and installations needed for a community or society to function, such as transportation, communications systems, water, powerlines, prisons, schools. Marketers are especially concerned with: ((4 Key elements of a countries infrastructure))
Transportation ,
Distribution channels, Communications
Commerce

Front 40

What is a tariff?

Back 40

Tax on imports

Front 41

What constitutes “dumping” in international trade?

Back 41

It occurs when a farm producer sells it’s offering in a foreign market, at a price less than its production cost to gain market share.

Front 42

What is a quota?

Back 42

A quota is a limitation on the amount of a product that can be brought in.
Ex. Sugar Quota

Front 43

What is a boycott? How does it differ from an embargo?

Back 43

A refusal to buy
The strongest barrier that you can put up to a product
An absolute prohibition

Front 44

What are Geert Hofstede’s 5 cultural dimensions and what does each one measure?

Back 44

➢ Individualism
o Measures how much you as an employee are allowed to do your own thing.
o United States has the highest individualism.
o Japan – Very low individualism
➢ Uncertainty Avoidance
o How many rules and regulations does the country hold
➢ France : Micromanagers
➢ USA : loosely controlled
➢ Power Distance
o Measures the degree of separations between hierarchy within cultures
➢ Masculinity
o The way a country/ company emphasizes masculine traits
o Fairness / Equality
➢ Time orientation
o Short term results
o Long term results

Front 45

What method of entering a foreign market is the least risky? The most risky?

Back 45

➢ Export
o Least risky
o (100% chance that if you do everything right, you will get paid)
➢ Franchising
➢ Strategic Allegiance
➢ Joint Venture
➢ (Foreign)Direct Investment
o You buy a company overseas – they are all under your control, under your supervision, and completely subordinate.
o HIGH RISK!

Front 46

What method of entering a foreign market gives the marketer the most control over his/her marketing strategy? The least control?

Back 46

FUKU

Front 47

ARTICLES?

Back 47

Articles:
1. “At McDonald’s, the Happiest Meal is Hot Profits”
2. “Kroger Uses Loyalty Data to Target Coupons”

Front 48

What method of entering a foreign market gives the marketer the most control over his/her marketing strategy? The least control?

Back 48

FUKU

Front 49

ARTICLES?

Back 49

Articles:
1. “At McDonald’s, the Happiest Meal is Hot Profits”
2. “Kroger Uses Loyalty Data to Target Coupons”