Marketing Exam Two

Front 1

Need recognition

Back 1

difference between consumer’s ideal state and actual

Front 2

Maslow’s Hierarchy of Needs

Back 2

1. physiological (e.g., hunger)
2. safety (e.g., shelter)
3. social & belonging (e.g., acceptance)
4. esteem (e.g., self-worth)
5. self-actualization (e.g., “I am OK”)

Front 3

Subconscious Motivators

Back 3

1. Id
2. Ego
3. Superego

Front 4

External search

Back 4

1. Group (e.g., personal referrals)
2. Marketing (e.g., displays, ads)
3. Public (e.g., Consumer Reports)
4. Experiential (e.g., fruit)

Front 5

Perception

Back 5

reception, selection, & interpretation of stimulus information

Front 6

Consumer schemas drive perception

Back 6

1. Selective attention
2. Selective interpretation
3. Selective retention

Front 7

Marketer’s Goal

Back 7

move your brand into the buyer’s evoked set

Front 8

Evaluative Criteria

Back 8

product attributes that are compared

Front 9

Attitude

Back 9

evaluation of an object; attitudes are assumed to be predictive of future behavior

Front 10

Decision Rules

Back 10

how buyers combine information to reach a
purchase decision

Front 11

Purchase decisions

Back 11

1. Compensatory
2. Non-compensatory
3. Heuristics

Front 12

Post-Purchase Evaluation

Back 12

Buyers compare perceived performance against existing
expectations

Front 13

Cognitive Dissonance

Back 13

buyer’s remorse, resolved by
seeking out confirming evidence

Front 14

Routine response behavior

Back 14

buying on habit

Front 15

Limited problem solving

Back 15

having some product category knowledge
(e.g., shoes)

Front 16

Extended problem solving

Back 16

having little, if any, product category knowledge
(e.g., HigherFi-Ultimate)

Front 17

General characteristics of Routine Response

Back 17

 Low involvement
 Frequently purchased
 Inexpensive
 Little risk
 Little information needed

Front 18

General characteristics of Limited Problem Solving

Back 18

1. Hybrid processing
2. Midrange of continuum

Front 19

Extended Problem Solving General characteristics

Back 19

 High involvement
 Infrequently purchased
 Expensive
 High risk
 Much information needed

Front 20

Consumer Involvement

Back 20

Previous experience
Interest
Perceived risk of negative consequences
(e.g., financial, social, psychological)
Buying Situation
Social Visibility

Front 21

VALS

Back 21

Innovators (formerly Actualizers)
Thinkers (formerly Fulfilleds)
Believers
Achiever
Strivers
Experiencers
Makers
Survivors (formerly Strugglers)

Front 22

Contactual Group

Back 22

1. hold membership
2. have face-to-face contact (primary)
3. accept group norms

Front 23

Disclaimant Group

Back 23

1. hold membership
2. have face-to-face contact (secondary)
3. reject group norms

Front 24

Aspirational Group

Back 24

1. don’t hold membership
2. lack face-to-face contact (secondary)
3. want to join

Front 25

Avoidance Group

Back 25

1. don’t hold membership
2. lack face-to-face contact (secondary)
3. reject group norms

Front 26

Global Check List

Back 26

1. Scan the global marketing environment
2. Decide whether to go abroad
3. Select market(s) to enter
4. Determine how to enter market(s)
5. Create the marketing program
6. Build the marketing organization

Front 27

Political System

Back 27

1. Prevalent attitudes
2. Government bureaucracy
3. Political stability

Front 28

Countertrade

Back 28

1. Barter
2. Compensation
3. Counterpurchase

Front 29

European Trade Union

Back 29

1. est. EU in 1992 (rumblings circa 1951)
2. impetus: to rebuild war-torn Europe
3. currently consists of 27 member states
4. working languages: English, French, German
5. motto: Unity in diversity

Front 30

Single Market in EU

Back 30

1. Free trade of goods & services among members
2. One competition law (antitrust & merger control)
3. Removal of internal border controls
4. Freedom of citizen to work anywhere in EU
5. Free movement of capital
6. Alignment of govt regs, corp law, & TM registrations
7. Single currency → euro

Front 31

Founding Members of EU

Back 31

1. Belgium (€)
2. France (€)
3. West Germany (€)
4. Italy (€)
5. Luxembourg (€)
6. The Netherlands (€)

Front 32

2nd Wave of EU members

Back 32

1. Denmark
2. Ireland (€)
3. United Kingdom

Front 33

3rd Wave Of EU members

Back 33

1. Greece (€)

Front 34

4th Wave of EU members

Back 34

1. Portugal (€)
2. Spain (€)

Front 35

6th wave of EU members

Back 35

1. Austria (€)
2. Finland (€)
3. Sweden

Front 36

7th Wave if EU members

Back 36

1. Cyprus (€)
2. Czech Republic
3. Estonia (€)
4. Hungary
5. Latvia
6. Lithuania
7. Malta (€)
8. Poland
9. Slovakia (€)
10. Slovenia (€)

Front 37

8th Wave of EU members

Back 37

1. Romania
2. Bulgaria

Front 38

Pro-Active Reasons to go aboard

Back 38

Foreign markets yield higher profits, Domestic market is saturated, Enlarge consumer base = economies of scale, Avoid relying on single market

Front 39

Reactive Reasons to go abroad

Back 39

Counterattack, Get rid of excess inventory, Invitation from foreign government

Front 40

Selection Criteria

Back 40

1. Demographics (e.g., size, growth rate)
2. Geographics (e.g., topography)
3. Economic factors (e.g., GDP per capita)
4. Technological factors (e.g., education)
5. Sociocultural factors (e.g., linguistics)
6. National goals (e.g., infrastructure)

Front 41

Modes of Entry from least to greatest risk

Back 41

1. Indirect Export
2. Direct Export
3. License
4. Joint Venture
5. Direct Ownership

Front 42

Marketing Mix Issues of going abroad

Back 42

1. Straight product extension
2. Product adaptation
3. Product invention
4. Communication adaptation
5. Dual adaptation

Front 43

Marketing Organization Evolution in going abroad

Back 43

1. Export Department
2. International Division
3. Global Organization

Front 44

Doing Business In SA

Back 44

men precede women →enter and leave a room, greeting: light & involved handshake, be polite greet the other person first, look down when talking to a superior or senior as a sign of respect*, appt should be made in advance, card exchange → start of a meeting, give to everyone, men stand up for women and seniors, intros made in order of seniority, don’t jump to shop talk→ express sincere interest in family, hard bargaining not a part of negotiations, conversation: soccer, rugby, cricket

Front 45

Doing business in Brazil

Back 45

let your host lead the business talk, expect lots of coffee*, gifts: flowers & thank-you note, avoid purple flowers (death), conversation: kids, jokes, avoid Argentina

Front 46

Doing business in Russia

Back 46

greetings: handshake, hug, 3-cheek kiss, don’t mask emotions, Russians typically have 3 names;in conversation, use both first names, on the street, little eye contact on the street, in business, direct eye contact, be punctual for appts, don’t litter, it’s offensive to Russian neatness & illegal, plan well in advance for visas & travel, crime: to export art objects or change money with private citizens, gifts: flowers, liquor, ball point pens, CDs, printed T-shirts, baseball caps

Front 47

Doing business in India

Back 47

Hindus don’t eat any beef, Muslims don’t eat pork or alcohol*, Orthodox Sikhs wear a turban & don’t smoke, eat beef, or cut their hair, Remove your shoes before entering an Indian home, Greeting: handshake; if introduced to a woman don’t shake hands => palms together & bow, Avoid touching a woman in public, After receiving flower garland, you should remove immediately to show humility
Always use your right hand to accept or pass food, Gifts: fruit & candy, especially for children

Front 48

Doing business in China

Back 48

tipping is considered an insult*, greeting: a slight bow or handshake, use full titles when introducing guests, establish your rank, authority & expertise clearly(especially women), play the game: face, age, connections, appt & punctuality = key, patience is a virtue; long decision times, an invitation to Chinese home = rare, arrive early & leave after the meal*, toasts: thanks, pleasure, & friendship, be polite, sample every dish, avoid shop talk, gifts of value can cause embarrassment

Front 49

Product

Back 49

market offering which generates attention, acquisition, use or consumption

Front 50

Conformance Quality

Back 50

keeping quality at standard

Front 51

Performance Quality

Back 51

keeping quality at a higher standard

Front 52

Core Product

Back 52

The product the company's know for

Front 53

Actual Product

Back 53

Tangible Assets of a product

Front 54

Augmented Product

Back 54

non-physical parts of a product (ex. warranties)

Front 55

For Homogeneous Products, a consumer looks for...

Back 55

Lowest Price

Front 56

For Heterogeneous Products, a consumer looks for...

Back 56

quality

Front 57

Unsought Products

Back 57

don’t yet want or know they exist

Front 58

For new unsought products we are...

Back 58

unaware of benefits (Internet)

Front 59

For regular unsought products we are...

Back 59

aware of them but not interested (ex. gravestones)

Front 60

product mix

Back 60

set of all product lines and
items the firm offers

Front 61

Width (Product Mix)

Back 61

# of different product
lines the firm carries

Front 62

Length (Product Mix)

Back 62

total # of items firm carries

Front 63

Depth (Product Mix)

Back 63

# of versions offered of each
product in the line

Front 64

Consistency (Product Mix)

Back 64

how closely related the various
product lines are (e.g., use,
production)

Front 65

In New products, what is high cost but low in marketing?

Back 65

New Product Line

Front 66

In new products, what is low in cost and low in marketing?

Back 66

Augment Change

Front 67

In new products, what is high in cost and high in marketing?

Back 67

Entirely new product

Front 68

In new products, what is low in cost but high in marketing?

Back 68

repostioning

Front 69

Why Create New Products?

Back 69

market shifts, competition changes, product life cycle marches on

Front 70

Market Crystallization

Back 70

effort needed to identify a latent market (i.e., organizations that share a similar need or want for something that does not yet exist) and to work to crystallize that need

Front 71

Market Expansion

Back 71

market begins to expand

Front 72

Market Fragmentation

Back 72

The emergence of new market segments with distinct needs and requirements out of previously homogenous segments. These new segments limit the usefulness of mass marketing and erode brand loyalty.

Front 73

Maturity Stage Strategies

Back 73

1. Promote more consumption (orange juice)
2. Expand target markets (baby shampoo)
3. Find other product uses (baking soda)
4. Price below the traditional market (Bic)
5. Create new outlets (Coach)
6. Add new ingredients/formats (Bounce Dryer Bar)
7. Make bold guarantee (Jos. A. Bank)

Front 74

Innovators

Back 74

Are the earliest people to adopt a new product.

Front 75

Early Adopters

Back 75

Are the second group of people to adopt to a new product. They will tell other people about the product.

Front 76

Early Majority

Back 76

this group generally wait to see whether the new thing proves to be successful in practice. They watch innovators and early adopters for cues, and are often less educated than them and have lesser social mobility.

Front 77

Late Majority

Back 77

Members of this group are older and less educated than other groups (except the laggards), have below-average socioeconomic status, and adopt innovations only when forced. They are not swayed by advertising and rely primarily on recommendations from friends, neighbors, and relatives

Front 78

Laggards

Back 78

Laggards use friends and neighbors as information sources, dislike change, and accept new things only when forced to.

Front 79

Complexity

Back 79

difficulty in using new product

Front 80

Compatibility

Back 80

consistency with existing values

Front 81

Relative adv.

Back 81

superiority to existing substitutes

Front 82

Observable

Back 82

benefits can be seen & told

Front 83

Trial

Back 83

on a limited basis, samples & displays

Front 84

What's the fiirm perpective of a new product?

Back 84

product that is new in any way

Front 85

What's the FTC perpective of a new product

Back 85

a product must be entirely new, changed in a functional way, can only be called new for 6 months

Front 86

What are new product sources?

Back 86

1.New function (Puma)
2.Improved performance (Pentium)
3.Downgraded product (Imposters)
4.Restyled (3M Lunch Box)

Front 87

What are the steps in NPD?

Back 87

1.Appoint a respected senior person → idea mgr
2.Create a cross-functional NPD team
3.Set up a toll-free number or web site to send ideas
4.Encourage all stakeholders to get involved
5.Set up formal recognition programs

Front 88

What is the NPD process?

Back 88

1. Generation => search for new ideas on a systematic basis
2. Evaluation => screen new ideas
- market potential
- cost structure
- ROI
3. Analysis => concept development
- concept testing
- marketing strategy
- business analysis
4. Development => creating prototype(s)
5. Test marketing => identify pitfalls
- refine marketing mix
- recalculate ROI
6. Commercialization =>
- timing
- location
- market rollout

Front 89

The Idea Generation Rule

Back 89

1.1,000 ideas →100 commercially viable
2.Of the 100 candidates → 10 financial commitment
3.Of the 10 finalists → 2 or 3 unqualified successes

Front 90

Brand

Back 90

name, term, symbol, or design, or a combination of these intended to identify a firm’s good or service

Front 91

Why do consumers pay more for brands?

Back 91

1. due to reliable quality
2. best brands = warranty of quality

Front 92

Brand equity

Back 92

value of firm & products
1. brand awareness
2. brand meaning
3. brand loyalty