Markets And Consumers Test 1

Front 1

What is the key concept of every commercial?

Back 1

Exchange

Front 2

Giving money to get products

Back 2

Exchange

Front 3

This takes place when something is obtained for something else in return.

Back 3

Exchange

Front 4

In an exchange, there is some transfer of _____ (often monetary) between a buyer and a seller. Bartering (goods for goods) might also occur.

Back 4

Value

Front 5

What are the 3 gains from trade?

Back 5

1. Differences in resource endowments.
2. Division and specialization of labor.
3. Core compentency (Competative advantage)

Front 6

Why should we exchange?

Back 6

1. Survival
2. Raises standard of living
3. Forms needed relationships (bringing buyers and sellers together in a market)

Front 7

Forums for carrying out exchanges

Back 7

Market

Front 8

When does a market exist?

Back 8

Where there are people who want to sell something and buyers who want to purchase something.

Front 9

What are the 7 characteristics of a market transaction (for a free market)

Back 9

1. Decision making autonomy (freedom in actions)
2. Participation is voluntary
3. Both buyer and seller are able to veto any deal
4. Both buyer and seller are separate entities
5. Each party controls their own resources
6. Each party is free to make decisions that reflect their own prefrences
7. There are rules that constrain every market and what is fair in that particular market

Front 10

What are the 3 dimensions of a market?

Back 10

Geography, Product Characteristics, and Time

Front 11

(Dimension of a market)
Location of market/ type of market
ex: small town/ no superstore

Back 11

Geography

Front 12

(Dimension of a market)
All different types of product
ex: cars ( hybrid, suv, pickup, etc)

Back 12

Product characteristics

Front 13

(Dimension of a market)
When is the market available

Back 13

Time

Front 14

What are the 5 principles of Perfect Competition?

Back 14

1) Products of each firm are similar commodities (exactly the same ex: eggs and sugar)
2) Prices must be known by all parties
3) Easy entry and exit into the market place
4) Prices are set exclusively by supply and demand
5) Many small sellers

Front 15

What are the 3 principles of Monopolistic Competition?

Back 15

1. Many small sellers
2. Easy entry and exit
3. Product Differentiation (where we can start to use marketing) ex: different pizza companies.

Front 16

What are the two principles for oligopolistic competition?

Back 16

1. A few big sellers ex: coke and pepsi
2. KEY: interdependency between firms
ex: if coke does something and is successful, pepsi will do it too and be successful

Front 17

What is the principle of a monopoly?

Back 17

No competition; one seller
ex: US Mail, Utilities

Front 18

As Marketers, we are concerned with what?

Back 18

Consumers

Front 19

When thinking about consumers, what three things do marketers need to consider?

Back 19

Cognition, Behavior, and Cultural Context

Front 20

How consumers think

Back 20

cognition

Front 21

The consumers actions and movements

Back 21

Behavior

Front 22

Whats going on all around the consumer. (This helps figure out whats going to be the next popular thing)

Back 22

Cultural Context

Front 23

the craft of linking the producers or potential producers of a product or service with customers (both exisiting and potential)

Back 23

Marketing

Front 24

Underpins all marketing activities.

Back 24

Marketing Research

Front 25

What panty hose company did the CEO of Hanes (Robert Elberson) see that was made of silk that sparked L'eggs?

Back 25

"Lad Brevoni"

Front 26

The happiness or satisfaction gained from buying, owning, and or consuming a product.

Back 26

Utility

Front 27

This is the idea that the goal of customers is maximization of their utility.

Back 27

Consumer Thoery of Economics

Front 28

Making raw matereial useful.
Ex: Lady Brevoni takes fabric to make hose.

Back 28

Form Utility

Front 29

Making products available at a place consumers want.

Back 29

Place utility

Front 30

Making products available at the time consumers want them.

Back 30

Time Utility

Front 31

Increased usefulness created by marketing through making it possible for consumer to own use and consume a product.

Back 31

Possession Utility or Ownership Utilty

Front 32

What consumer is willing to give up (usually price).

Back 32

Exchange Value

Front 33

Direct literal meaning or definition free from feelings or impressions "Denotative"
EX: Only buying jacket to keep warm

Back 33

Use Value

Front 34

Cultural or brand symbolism.
Set of associations beyond the literal meaning.
Connotative

Back 34

Sign value

Front 35

What is the equation for Exchange Value?

Back 35

Exchange Value = Use value + Sign Value

Front 36

Marketers are playing on what three things?

Back 36

Need, Want, and Benefit

Front 37

The recognition of any difference between a consumers actual state and some ideal or desired state.

Back 37

Need

Front 38

The desire to satisfy needs in specific way that are culturally and socially influenced. You must have a particular good to satisfy.

Back 38

Want

Front 39

The outcome sought by a customer that motivates buying behavior that satisfies a want or a need.

Back 39

Benefit

Front 40

The aquisition and use of information about events, trends and relationships in an organizations external environment.

Back 40

Environmental Scanning

Front 41

Twiggy and Nancy Sinatra were 2 reasons for the demand for pantyhose to go up. Another reason is because....?

Back 41

They were more durable with stronger fabric and a new weave, plus spandex

Front 42

Enviroment: Everything outside of the company

Back 42

Uncontrollable Variable

Front 43

Based on the uncontrollable variable, Ex: Price

Back 43

Controllable variable

Front 44

Company is trying to filfill the needs of the consumers own interest. This draws upon the consumer orientation and product orientation.

Back 44

Marketing Concept

Front 45

A type of orientation that what a customer needs before the product is created.

Back 45

Customer Orientation

Front 46

A type of orientation that focuses on the product, makes it, then tries to sell it to the customer

Back 46

Product Orientation

Front 47

The customer is always right.

Back 47

"Customer Sovereignty"

Front 48

This focuses on designing and producting products that benefit customers and employees, shareholders, and communities

Back 48

New Era Orientation

Front 49

Customers put a big focus on this:
A product design that seeks to create products that meet present consumer needs without compromising the ability of future generations to meet there needs.

Back 49

Sustainability

Front 50

What are the 3 characterisitics of a Stategic Business Unit?

Back 50

1) A single business Unit
2) Has own set of competitors
3) Own management and Marketing Teams

Front 51

This is typically a new product, it brings in a lot of cash, it needs a lot of cash to finance growth, has high market share and high market growth. Ex: Phones with internet and email.

Back 51

Stars

Front 52

Jigh market growth, low market share.
This is a product that typically needs a lot of cash support to continue but don't know if the product is going to make it.
Ex: Handheld computer

Back 52

?
(Problem child)

Front 53

Low Market Growth, High Market Share
Funding the resto of your business, generates more cash than they need.
Ex: Personal Computer

Back 53

Cash cow

Front 54

Low Market Growth, Low Market Share
not selling very much, Will eventually have to leave the marketplace.
Ex: Mainframe Computer

Back 54

Dog

Front 55

How did L'eggs travel along the Market Share Matrix?

Back 55

Started as a ?, Became a star, then a cash cow, now it is a dog

Front 56

(Ansoff's Matrix)
Selling more of the same to the same types of people.
Small variations. Ex: more colors

Back 56

Market Penetration

Front 57

(Ansoff"s Matrix)
Selling the existing Products to new types of consumer.
Ex: trying to appear to tweens when professionals are the market.

Back 57

Market development

Front 58

(Ansoff's Matrix)
Selling new products to exisiting customers
Ex: Selling slippers and underware to people that buy hose.

Back 58

Product Development

Front 59

(Ansoff's Matrix)
Selling new products to new customers.
Ex: Men's underware because they don't buy hose

Back 59

Diversification

Front 60

A systematic process for gathering, analyzing, and interpreting data pertaining to the company's customers, competitors, and cultural environment with the goal of improving marketing effectiveness.

Back 60

Marketing Research

Front 61

The SBU for L'eggs was given what two goals?

Back 61

1) Sell product in grocery stores
2) Establish Brand Loyalty

Front 62

The ability of a firm to out perform the competition provides a benefit the competition cant.

Back 62

Competitive Advantage

aka: differential benefit and distinctive competency

Front 63

When we use market research we want to analyze data and look at what 3 things?

Back 63

Reliability, Representativeness, and Validity

Front 64

The extent to which research measurement techinques are free of errors: the ability to perform a service accurately.

Back 64

Reliability

Front 65

The extent to which consumers in a study are similar to a larger group in which the organiation has an interest (Sampling)

Back 65

Representativeness

Front 66

The extent to which research measures what it is supposed to measure.

Back 66

Validity

Front 67

(Marketing Research)
Primary and Qualitative

Back 67

Focus Groups

Front 68

(Marketing Research)
Primary and Quantitative

Back 68

Survey

Front 69

(Marketing Research)
Secondary and Qualitative

Back 69

Historical Information

Front 70

(Marketing Research)
Secondary and Quantitative

Back 70

The Industry itself

Front 71

The application and combination of several research methodologies in the study of the same phenomenon.

Back 71

Triangulation

Front 72

Looking at old advertisements and look at all the things about the product

Back 72

Historical analysis

Front 73

The industry itself
Ex: all magazines pertaining to product

Back 73

Trade Research

Front 74

Descriptive technique that involves the systematic collection of quantitative data ( No open ended qestions)

Back 74

Cross sectional decision

Front 75

a test that explores people's underlying feelings about a product

Back 75

projective technique

Front 76

Marketing that ambushes you when you least expect it

Back 76

Viral Marketing

Front 77

Song's target person that gave them an idea as to who they were marketing towards

Back 77

Carrie

Front 78

Used with focus groups that tracks the responses of the same smaple of respondentsd over time.

Back 78

Longitudinal Design

Front 79

What were the opportunites for L'eggs?

Back 79

1) Little Brand Loyalty
2) Poor Quality
3) Consumers wanted convenient location

Front 80

What were some of L'eggs's threats?

Back 80

1) Grocery Stores said they would not stock the product
2) Women said they would not by hosier from grocery stores

Front 81

What are the 4 P's in the Marketing Mix?

Back 81

Product
Place
Price
Promotion

Front 82

(How to divide the market)
All possible cutomers in a market ex: all women

Back 82

Mass Market

Front 83

(How to divide the market)
Identify and describe market segments
ex: break into groups by age and activities

Back 83

Segmentation

Front 84

(How to divide the market)
Evaluate segments and determine which one(s) to enter

Back 84

Target

Front 85

(How to divide the market)
Use the "marketing mix" to create a competitive advantage in the selected target segment(s)

Back 85

Position

Front 86

Due to many diverse interests and backgrounds numerous different groups are created with distinct needs and wants.

Back 86

Market Fragmentation

Front 87

A two or three dimensional illustration of customers perceptions of competing products comparing select attributes based on market research.

Back 87

Perceptual Map

Front 88

*Might also be displayed on the perceptual map*
Points that reflect ideal combinations of the 2 dimensions as seen by a consumer

Back 88

Ideal Points

Front 89

Statistical data such as age, average income, education, etc

Back 89

Demographics

Front 90

Attitudes and tastes

Back 90

Psychographics

Front 91

What were the two target markets for L'eggs?

Back 91

Current Users and Teen Women

Front 92

(Product Positioning Strategy)
Same strategy for both types of users

Back 92

Undifferentiated

Front 93

(Product Positioning Strategy)
Two different strategies for each type of user

Back 93

Differentiated

Front 94

(Product Positioning Stategy) Develop strategy for one set of users and ignore the other set

Back 94

Concentrated/ Niche

Front 95

What Product Positioning Strategy did L'eggs use?

Back 95

Undifferentiated

Front 96

When choosing the product design, L'eggs focused on...

Back 96

Durability and Fit

Front 97

The Packaging of L'eggs needed to be what to things?

Back 97

1) Small
2) Needed to fit the "semiotic field"

Front 98

The study of meaning and interpretation, based on sign and code.

Back 98

Semiotics

Front 99

What 3 things is sign composed of?

Back 99

Signifier
Signified
Referent

Front 100

Somthing you see, hear, or sense
ex: "open on shop door"

Back 100

Signifier

Front 101

The meaning of the signifer.
ex: What does the "open sign" on the shop door imply?

Back 101

Signified

Front 102

Common reference point, the actual object

Back 102

Referent

Front 103

A group of signs that all work together to create meaning

Back 103

Code

Front 104

One's memory of words and concepts, we recall things without any memory of where we learned them

Back 104

Semantic memory

Front 105

(Channels of distribution)
Make product available through as many channels as possible
L'eggs uses every single grocery store

Back 105

Intensive Distribution

Front 106

(Channels of distribution)
These channels have a more discriminating use of channel members
Ex: in several different types of stores but not every store

Back 106

Selective Distribution

Front 107

(Channels of Distribution)
In one store or chain
Ex: Music exclusive to target

Back 107

Exclusive Distribution

Front 108

(Type of Good)
Non-durable nature, needed in people's everyday lives, price not a common concern
*what L'eggs was when it started
Ex: Bread/Asprin

Back 108

Convenience Goods

Front 109

(Type of Good)
Purchased less frequently and higher priced. People are comparing price
Ex: Furniture and appliances

Back 109

Shopping Goods

Front 110

(Type of Good)
One-of-a-kind, like a piece of art
Ex: antique, original painting

Back 110

Specialty Goods

Front 111

Becaues Grocery stores would not give shelf space up for L'eggs, What did legs do?

Back 111

Used freestanding boutiques

Front 112

How were L'eggs sold?

Back 112

On Consignment

Front 113

(Accounting Principles)
When assets are reported atwhat you bought them for.
Good and Bad- worth more on balance sheet and it may look lie you have value when you don't

Back 113

Historical Cost Principle

Front 114

(Accounting Principles)
All information is in an understandable form

Back 114

Full Disclosure Principle

Front 115

(Accounting Principles)
Will record revenue when the product is delievered--- doesn't matter when product was purchased

Back 115

Revenue recognition Principle

Front 116

When we try to match expenses with revenue in the period revenue is earned

Back 116

Matching

Front 117

This engages in sudo-spiritual Marketing
*Trying to get to emotions

Back 117

Superbrands

Front 118

Brands that create loyalty beyond reason. You recognize them immediately as having an iconic place in your heart.

Back 118

"Lovemarks"

Front 119

What was the orginal name of Coke in Cough Syrup Form?

Back 119

French Wine Coca

Front 120

What was the campaign Pepsi had that spoke to baby boomers @ the time and caused Cokes growth rate to drop?

Back 120

"Pepsi Generation"

Front 121

The "Pepsi Challenge" was part of Pepsi's ___ ___.

Back 121

Promotional Strategy

Front 122

What taste tests are referred t in marketing research (Not controlled environment)

Back 122

Quasi Experimental Designs

Front 123

What are the advantages and disadvantages of Quasi Experimental Designs?

Back 123

Adv: Easy to conduct
Disadv: Leave actual reasons for the associations unclear

Front 124

The act of conducting a controlled test or investigation-

Back 124

Experiment

Front 125

Experiements are the only method that can scientifcally argue a cause and effect relationship if poperly conducted.

Back 125

The "strength" of experiments

Front 126

What's a disadvantage of experiements?

Back 126

Difficult to desgin and conduct to make neutral.

Front 127

What are the three conditions of causation?

Back 127

Empirical Relationship, Temporal Sequence, and Rule out alternative explanations.

Front 128

(Conditions of Causation)
Two or more variables are related
Ex: people like taste of Pepsi, therefore Pepsi's sales increased

Back 128

Empirical Relationships

Front 129

(Conditions of Causations)
Time-- Show that cause happened before the effect
Ex: overtime, people had to perfer taste of pepsi to challenge Coke's Domination

Back 129

Temporal Sequence

Front 130

(Conditions of Causation)
Try to disprove other things
Ex: Pepsi challenged blindfolded people so they couldnt see what they were getting, alternated which drink the got first, and gave bite of saltine cracer in between to cleanse pallet

Back 130

Rule out alternative explanations

Front 131

A sound or well-founded arguement

Back 131

Validity

Front 132

Can scientifically argue that cause and effect has been found
Ex: Coke saying Pepsi's formula increased their sales
and there is a problem with Coke's formula

Back 132

Internal Validity

Front 133

Generalize findings to the population of interest
Ex: for all coke and pepsi drinkers the formula is what is making them buy Pepsi

Back 133

External Validit

Front 134

In reference to Validity, Coke only had ___ ___

Back 134

Internal Validity

Front 135

Weakness of Survey Research
* The way you ask a question demands a certain type of answer --to please

Back 135

Demand Artifact

Front 136

Minimizes demand artifacts
Participant Observation
People don't know when you are watching them

Back 136

Ethonography