Marketing Exam 2

Front 1

Class Notes:

Back 1

Study Below:

Front 2

What are the 4 P's?

Back 2

1. Product.

2. Price.

3. Promotion.

4. Place.

Front 3

What are the 7 External Environments?

Back 3

1. Demographic.

2. Economic.

3. Political/Legal.

4. Socio-cultural.

5. Technological.

6. Global.

7. Natural.

Front 4

What are the different types of Survey Research and the Pros/Cons for each?

Back 4

- In-home Personal Interview:

Pro: Can provide highly detailed information.

Con: Very expensive to send interviewer to customer locations.

- Mall Intercept Review:

Pro: Ability of interviewer to probe when necessary.

Con: Hard to get a representative sample of the population.

Front 5

What are the different types of Survey Research and the Pros/Cons for each (continued)?

Back 5

- Mail Surveys:

Pro: Low cost, centralized control.

Con: Produce low response rates.

- Executive Interview:

Pro: Directly interviewing business people.

Con: Very difficult due to many factors (time and place to meet, cancellations, etc.).

- Focus Groups:

Pro: Allows for consumer response to a product.

Con: None.

Front 6

What are the different types of Questionnaire Design Research and what are their benefits?

Back 6

- Open-ended question:

Encourages an answer phrased in the respondent's words.

- Closed-Ended Question:

Asks the respondent to make a selection from a limited list of responses.

- Scaled-response question:

Measures the intensity of a respondent's answer.

Front 7

What are the different types of Observational Research and the Pros/Cons for each (continued)?

Back 7

- Mystery Shoppers:

Pro: Directly observing and collecting data from real-time shopping.

Con: Does not do direct interaction with customers, but instead observes their behavior.

- Behavioral Targeting:

Pro: Tracks consumers browser history to discover their likes and interests.

Con: Does not directly influence their buying decisions.

Front 8

What is Ethnographic Research?

Back 8

Directly studies the population of people and records their behavior, culture, etc.

Front 9

What is Virtual Shopping?

Back 9

The act in virtually placing goods on a website and records each customer's interests based on what they look at, for how long, and the order the goods were placed in.

Front 10

How can Surveys be biased?

Back 10

By stating the survey's purpose at the beginning of the interview, it improves clarity but allows for more biased answers.

Respondents post answers that the interviewer wants to hear instead of what the respondents wants the interviewer to hear.

Front 11

What is another common error in survey questions?

Back 11

Asking 2 questions in 1. Most questions should be short and detailed, but not too long and not too detailed.

Front 12

What is Primary Data?

Back 12

Information collected for the first time.

Front 13

What is Secondary Data?

Back 13

Data that is previously collected for any purpose other than the one at hand.

Front 14

What is Big Data?

Back 14

The exponential growth of information and the development of complex new tools to analyze such data.

Front 15

What is Social Media Data?

Back 15

Typically data recorded on the internet (Likes, Google searches, etc.) that tells the company your likes and interests in order to better serve you.

Front 16

What is experimental research?

Back 16

Gathers primary data by altering one or more variable while also observing the effects of those alterations on another variable.

Front 17

What is the BCG Model?

Back 17

A model that is used to classify each Strategic Business Unit by its present or forecast growth and market share.

Front 18

What are the 4 factors in the BCG Model?

Back 18

1. Star: Fast growing market leader.

2. Cash Cow: Dominant market share in a low-growth market.

3. Problem Child (Question Mark): Low-Market Share in a High-growth industry.

4. Dogs: Small market-share with low growth potential.

Front 19

BCG Model:

Back 19

Front 20

Is it good to market in bad times?

Back 20

- Companies should focus more on consumers instead of their image to continue profit and sales in tougher times.

- If a company markets, focus on consumer's needs rather than wants.

Front 21

How does a company market in tough times?

Back 21

1. Learn more about customer needs.

2. Call in favors from your vendors.

3. Focus on frequent customers.

4. Focus on more direct revenue.

5. Reach out to family values.

Front 22

What is the New Product Development Process?

Back 22

Front 23

What is E-Curve Analysis?

Back 23

Analyzing a firm's experience a firm has and their efficiency over time.

- Cost to produce will go down.

- Entrant in a new market will never catch up to the leader.

Front 24

E-Curve:

Back 24

Front 25

What are Market Development Strategies?

Back 25

- Attracting new customers to existing products.

1. Product: Starbucks develops powdered instant coffee called Via.

2. Diversification: Starbucks launches Hear Music and buys Ethos Water.

Front 26

What are Market Penetration Strategies?

Back 26

- Increasing market share among existing customers.

1. Penetration: Selling more coffee to customers with re-loadable Starbucks Cards.

2. Development: Starbucks opens a store in Chile.

Front 27

What is a Product Line, Mix, and Depth?

Back 27

- Line: A group of closely related products (I.E. A wide variety of different soup flavors).

- Depth: The number of product items in a product line.

- Mix: All the products a company sells (I.E. Campbell's soup, drinks, biscuits are its mix).

Front 28

What are the types of goods consumers purchase?

Back 28

- Convenience Products: Products that don't take much effort to find (Candy).

- Shopping Products: Usually more expensive and is found in lesser stores.

- Homogeneous (fruits).

- Heterogeneous (digital watch vs regular).

- Specialty Products: Products that require extensive searching. (Omega Watches).

- Unsought Products: Products unknown to the buyer.

Front 29

Chapter 2 Definitions:

Back 29

Study Below:

Front 30

Strategic Planning:

Back 30

The managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities.

Front 31

Strategic business unit (SBU)

Back 31

A subgroup of a single business or collection of related businesses within the larger organization.

Front 32

Market Penetration:

Back 32

A marketing strategy that tries to increase market share among existing customers.

Front 33

Market Development:

Back 33

A marketing strategy that entails attracting new customers to existing products.

Front 34

Product Development:

Back 34

A marketing strategy that entails the creation of new products for present markets.

Front 35

Diversification:

Back 35

A strategy to increase sales by introducing new products into new markets.

Front 36

Portfolio Matrix:

Back 36

Distributes resources among products or strategic business units using market share and market growth rate.

Front 37

Planning:

Back 37

Anticipating future events and determining strategies to achieve organizational objectives in the future.

Front 38

Marketing Planning:

Back 38

Designing activities relating to marketing objectives and the changing marketing environment.

Front 39

Marketing Plan:

Back 39

A written document that acts as a guidebook of marketing activities for the marketing manager.

Front 40

Mission Statement:

Back 40

A statement that explains the company's purpose for existing.

Front 41

Marketing Myopia:

Back 41

Defining a business in terms of goods and services rather than in terms of the benefits customers seek.

Front 42

SWOT Analysis:

Back 42

Identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T).

Front 43

Environmental Scanning:

Back 43

Information in the external environment that may affect the future of the organizations or market plan.

Front 44

Competitive Advantage:

Back 44

A company's products that are considered to be superior to the competitor's products.

Front 45

Cost Competitive Advantage:

Back 45

Being the low-cost competitor in an industry while maintaining satisfactory profit margins.

Front 46

Sustainable Comparative Advantage:

Back 46

An advantage that cannot be copied by the competition.

Front 47

Marketing Objective:

Back 47

A statement of what is to be accomplished through marketing activities.

Front 48

Marketing Strategy:

Back 48

Describing one or more target markets, and developing/maintaining a marketing mix that will produce mutually satisfying exchanges.

Front 49

Implementation:

Back 49

The process that turns a marketing plan into action assignments.

Front 50

Evaluation:

Back 50

Determining the extent to which the marketing objectives have been achieved during the specified time period.

Front 51

Control:

Back 51

Correcting the actions in a Marketing Plan that do not help the organization reach its objectives.

Front 52

Chapter 4:

Back 52

Study Below:

Front 53

Target Market:

Back 53

An organization's marketing mix that is intended to meet the need of a particular group.

Front 54

Environmental Management:

Back 54

Strategies that attempt to shape the external environment it operates in.

Front 55

Component Lifestyles:

Back 55

Choosing goods and services that meet one’s diverse needs.

Front 56

Demography:

Back 56

The study of people's age, race, ethnicity, and location.

Front 57

Millennials:

Back 57

People born between 1979 and 1994.

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Generation X:

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People born between 1965 and 1978.

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Baby Boomers:

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People born between 1946 and 1964.

Front 60

Purchasing Power:

Back 60

Income versus the relative cost of a standard set of goods and services in different geographic areas.

Front 61

Inflation:

Back 61

A measure of the decrease in the value of money.

Front 62

Recession:

Back 62

A period of economic activity characterized by negative growth, lowers demand.

Front 63

Basic and Applied Research:

Back 63

Basic: Aims to confirm an existing theory or to learn more about a concept or phenomenon.

Applied: Attempts to develop new or improved products.

Front 64

Consumer Product Safety Commission (CPSC):

Back 64

Federal Agency that protects the health and safety of consumers in and around their homes.

Front 65

Food and Drug Administration (FDA):

Back 65

Federal Agency that enforces regulations against selling and distributing adulterated, mis-branded, or hazardous food and drug products.

Front 66

Federal Trade Commission (FTC):

Back 66

Federal Agency that prevents persons or corporations from using unfair methods of competition in commerce.

Front 67

Chapter 9 Vocab:

Back 67

Study Below:

Front 68

Marketing Research:

Back 68

Planning, collecting, and analyzing data relevant to a marketing decision.

Front 69

Marketing Research Problem:

Back 69

Determining what information is needed and how it can be used effectively.

Front 70

Marketing Research Objective:

Back 70

Specific information needed to solve a marketing research problem.

Front 71

Management decision problem:

Back 71

Problem that utilizes market research so that managers can take the right actions.

Front 72

4 Types of Experiment Errors:

Back 72

1. Measurement: Difference between information desired and information provided.

2. Sampling: Sample doesn't represent target population.

3. Frame: Sample drawn from a population is different from the target population.

4. Random: Selected sample is a bad representation of the overall population.

Front 73

Competitive Intelligence:

Back 73

Aids managers in assessing their competition in order to become more efficient.

Front 74

Chapter 10 Definitions:

Back 74

Study Below:

Front 75

Product:

Back 75

Everything, both favorable and unfavorable, that a person receives in an exchange.

Front 76

Product Item:

Back 76

Specific version of a product that can be designated as a distinct offering among an organization's products.

Front 77

Product Modification:

Back 77

Changing one or more of a product's characteristics.

Front 78

Planned Obsolescence:

Back 78

Modifying products so those that have already been sold become obsolete before replacement.

Front 79

Product Line Extension:

Back 79

Adding additional products to an existing product line in order to complete more broadly in the industry.

Front 80

All the different type of brands:

Back 80

Brand: Identity of the product.

Brand Name: Part that can be spoken.

Brand Mark: Elements of brand that cannot be spoken.

Brand Equity: Value of a company.

Global Brand: Obtains 1/3 of earnings outside of its home country.

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All the different type of brands (cont.):

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Brand Loyalty: Preference for one brand over the others.

Manufacturer's Brand: Name of manufacture.

Private Brand: Owned by a wholesaler/retailer.

Captive Brand: Manufactured by 3rd party for an exclusive retailer.

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All the different type of brands (cont.):

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Individual Branding: Different names for different products.

Family Branding: Several products with different names in the same brand.

Co-Branding: Placing two or more brand names on a product or its package.

Trademark: Exclusive right to use a brand.

Front 83

Persuasive and informational labeling:

Back 83

Persuasive: Focuses on promoting a theme or logo.

Informational: Helps consumers make proper product selections.

Front 84

Warranties:

Back 84

Warranty: Confirmation of the quality or performance of a good or service.

Express Warranty: Written guarantee.

Implied Warranty: Unwritten guarantee that the good or service is fit for its purpose.

Front 85

Chapter 11 Definitions:

Back 85

Study Below:

Front 86

New Product:

Back 86

A product new to the world, market, producer, seller, or any combination of these.

Front 87

New Product Strategy:

Back 87

A plan to link new product development with the objectives of the marketing department.

Front 88

Product Development:

Back 88

Creating marketable products.

Front 89

Brainstorming:

Back 89

Getting a group to think of unlimited ways to vary a product or solve a problem.

Front 90

Screening:

Back 90

First filter that eliminates ideas that are inconsistent with the organization's strategy.

Front 91

What was Howard Moskowitz's breakthrough?

Back 91

People won't tell you what they want, you have to pleasantly surprise them with what they've always wanted, but never knew they wanted it (Extra Chunky Spaghetti Sauce for example).