Study Guide Marketing Midterm

Front 1

What is Marketing:

Back 1

Formal definition- Marketing is the activity, set of institutions, andprocesses for creating, communicating, delivering, and exchanging offeringsthat have value for customers, clients, partners, and society at large.

Front 2

Four kinds of Marketing Mgmt Philosophies?

Back 2

Sales, Product, Market , Social

Front 3

Production Orientation:

Back 3

is a philosophy that focuses on internal capabilities of the firmrather than on the desires and needs of the marketplace. -Examples “ What can we do best”,What can our engineers designs, Where do our talents lie, FIELD OF DREAMSapproach if we build it they will come “Produce goods regardless of the needsof the marketplace just because they can do it efficiently.}-

Front 4

SALES Orientation-ce4-

Back 4

Formal definition: is based on the belief that people will buy moregoods and services if aggressive sales techniques are used and that high salesresult in high profits. To sales oriented firms,marketing means selling things and collecting money “downfall is the lack ofunderstanding of the needs and wants of the marketplace. z-

Front 5

Market Orientation: -

Back 5

Formal definition: is a simple and intuitively appealing philosophythat articulates a market orientation it states that the social and economicjustification for an organizations existence is the satisfaction of customerswants and needs while meeting organization objectives. What a company thinks it sells is notimportant- What the customer think they are buying is -the perceived valuedefines the business-k-

Front 6

Market Oriented:

Back 6

Formal definition-a philosophy that assumes that a sale doesn’t notdepend on an aggressive sales force but rather on a customer’s decision to purchasea product it synonymous with the marketing concept. Achieving a market orientationinvolves obtaining information about customers, competitors, and markets;examining the information form a total business perspective, and determininghow to deliver superior customer value-f-

Front 7

Customer value:

Back 7

The relationship between benefits and the sacrifice necessary to obtainthose benefits is known as customer value. A high-quality product that isavailable only at a high price will not be perceived as a good value, nor willbare-bones service or low-quality goods selling for a low price. Priceis a component of valuet--a-

Front 8

6 ways to increase customer value?

Back 8

1) Offerproducts that Perform: {bare minimum requirement} I.E. Windows vista didn’twork so it creates no customer value

2) EarnTrust- A stable base of loyal customers can help a firm grow and prosper.Offer buying incentives and stress free experiences.

3)AvoidUnrealistic pricing- Its easy to compare prices online, online purchasersare interested in bargain prices brick and mortar stores need to take this intoaccount when pricing products

4) Givethe buyer facts- today’s consumer wants informative advertising and knowledgeablesales people, start with the customers’ needs and work toward a solution.

5)Offerorganization-wide commitment in service and after sales support-create a Nordstromlike sales support where even long after the sale you’re still treating like a customerand you still serve the customers need with return policies and servicing.

6) Cocreation-Let someone design their own product- like the Nike I.D. shoes/ gives peoplesproduct individuality. RL~

Front 9

Customer satisfaction

Back 9

Formal Definition- The customer’s evaluation of a good or service interms of whether that good or service has met their needs and expectations iscalled customer satisfaction.-Dissatisfaction occurs when a customer’sneeds and expectations aren’t met. alses-

Front 10

Building relationships [companiescan expand their market share in three ways]vAhDn<-

Back 10

1) Attracting new customers2) Increasing business with existing customers3) Retaining current customers. Building relationships withexisting customers directly addresses two of the three possibilities andindirectly addresses the other.ny

Front 11

Relationship marketing

Back 11

is a strategy that focus onkeeping and improving the relationships with current customers. Assumes peopleand business prefer ongoing relationship with one organization rather thatswitch continually. sio-

Front 12

What four things does relationship marketing focus on?

Back 12

1) Customer orientated personnel

2) Role of Training in the workplace

3) Empowerment

4) Teamwork

Front 13

Marketing Mix -formal definition

Back 13

a unique blend of product, place(distribution0, promotion, and pricing strategiesdesigned to produce mutually satisfying exchanges with a target market. Any marketing mix is only as goodas its weakest link.-good promotion and good pricecan save a poor product--good products with bad price, promotion,and placement will likely fail as well. :"Wb

Front 14

Product strategiesss5

Back 14

heartof the marketing mix, the starting point. Product includes physical unit,package, warranty, after sale service, brand name, company image, value and manyother factors. l'>-g

Front 15

Place distribution: 5

Back 15

Placeor distribution strategies are concerned with making products available whenand where customers want them. The goal is to make sure products arrive inusable condition at designated places when neededceca

Front 16

Promotion: nq

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includesadvertising, public relations, sales promotion, and personal selling.Promotions role is to bring about mutually satisfying exchanges with targetmarkets by informing, educating, persuading, and reminding them of the benefitsor an organization or product. ";

Front 17

Price- s to 4

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What a buyer most give up to obtain product- most flexible of the fourP’s and quickest element to change. bZȫ

Front 18

Consumer decision making process:

Back 18

a five-step process used by consumers when buying goods or services

1)Need recognition

2) information search

3) evaluation of alternatives

4)purchases

5) post purchase behavior

Front 19

Need recognition: dy5

Back 19

isthe result of an imbalance between actual and desired states.

Front 20

Want: dy>4

Back 20

therecognition of a unfulfilled need2

Front 21

External Stimuli VS Internal Stimuli

Back 21

: Internalstimuli is thirst or hunger you feel it in your body or mind and it creates awant. An external stimulus could be an advertisement or a friends recommendation.e

Front 22

Internal Information search: ri",san7

Back 22

aperson recalls information stored in your memory

Front 23

External Information search:

Back 23

seeksinformation from outside environment.ment3

Front 24

-Nonmarketing controlled:ody>1

Back 24

sourcesnot associated with advertising or promotion Recommendations, personal experiences(trying or observing new product) , rating sitesami?

Front 25

-marketingcontrolled sources: 1

Back 25

havea bias towards a specific product because it originates with marketerspromoting that product>

Front 26

Extent of External Search based on 4 factors:

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: perceived risk, knowledge,prior experience, and level of interest. -font[ɪ

Front 27

Perceived Risk: rnal {

Back 27

asthe perceived risk of a purchase increases, the consumer enlarges the searchand considers more alternative brands. -Risk correlates to cost-t-font

Front 28

Knowledge in regards to external info search:

Back 28

A consumer’sknowledge about the product or service will affect the extent of an external informationsearch. [more knowledge you have about a product more likely you’re to make aquick decision]in;mso

Front 29

Prior Experience for external info search:

Back 29

people with past positive experience will default to things related tothat positive experience.or-latY˨

Front 30

Level of interest in external info search:

Back 30

If you have an avid interest or hobby associated with product you’llmost likely spend more time looking into benefits of product purchase becauseit interests you.

Front 31

Evoked Set(Consideration set):

Back 31

a group of brands resulting from an information searchfrom which a buyer can choose.

-One way to begin narrowing the number of choicesin the evoked set is to pick a product attribute and then exclude all productsin the set that don’t have that attribute. -

Front 32

Post-Purchase Behavior: ck a6

Back 32

When buying products, consumers expectcertain outcomes from the purchase. Price often influences the level of expectationsfor a product or service. idi*

Front 33

Cognitive Dissonance5

Back 33

innertension that a consumer experiences after recognizing an inconsistency between behaviorand values or opinions.

Front 34

Consumer buying decisions:

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Routineresponse behavior, limited decision making, and extensive decision making.

Front 35

Involvement:

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is theamount of time and effort a buyer invests in the search, evaluation, and decisionprocesses of consumer behavior. IVE",=

Front 36

Routine response behavior: i6

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Frequentlypurchased, low-cost goods and services are generally associated with routineresponse behavior. Low involvement purchases,usually buyers are familiar with several different brands but stick with one.Buy now evaluate later.

Front 37

Limited Decision Making: ion-w

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Thetype of decision making that requires a moderate amount of time for gatheringinformation and deliberating about an unfamiliar brand in a familiar product category.libri;

Front 38

Extended decision making: t 6

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The most complex type of consumer decision making, used when buying anunfamiliar, expensive product or an infrequently bought item; requires use ofseveral criteria for evaluating options and much time for seeking information. (people use all five stages of decision makingprocess when making extended decision making purchases)c;

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7 Factors determining level of consumer involvement:9

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1) Previousexperience2) Interests3) Perceivedrisk of negative consequences4) Financialrisk5) SocialRisk6) PsychologicalRisks7) SocialVisibility3h

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5 types of high involvement forms/bo7

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1) Product involvement2) Situational involvement3) Shopping involvement4) Enduring involvement5) Emotional involvementBkyZp

Front 41

Social Influences On Consumer Buying Decisions: 9

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Manyconsumers seek out the opinions of others to reduce their search and evaluationeffort or uncertainty, especially as the perceived risk of the decision increases.ibri;

Front 42

Reference Groups: e5

Back 42

consists of all the formal and informal groups that influence thebuying behavior of an individual.latY˨

Front 43

Primary membership group: �

Back 43

areference group with which people interact regularly in an informal face toface manner. sk 9

Front 44

Secondary membership group: a

Back 44

a reference group with which people associate less frequently with andmore formerly. Religious groups, clubs, and professional groups. Roman^̯

Front 45

Aspirational reference group6

Back 45

: agroup that someone would like to join

Front 46

Non-Aspirational reference group

Back 46

Non-Aspirational reference group: a group with which an individual does not wantto associaterce":10|

Front 47

Opinion Leaders:

Back 47

An individual who influences the opinions of others. -teenagers are usually opinion leaders of technology-

Front 48

Socialization Process:

Back 48

How cultural values and norms are passed down to children.

Front 49

5 Roles of decision makers in family:

1)

Back 49

Iniintiator- suggests or plant seed for the purchase process

2) Influencer- member of family whose opinion is valued

3) Decision maker- the family member who makes the decision to buy or not buy

4) The purchaser- the person who exchanges the money for the product

5) Consumer- the person who uses the product.

Front 50

Perception:

Back 50

The process by which people select, organize, and interpret stimuli into a meaningful and coherent picture

Front 51

Selective Exposure:

Back 51

The process whereby a consumer notices certain stimuli and ignores others. [Cant take everything in so distortion helps us choose what to notice and what to ignore]

Front 52

Selective Distortion:

Back 52

a process whereby a consumer changes or distorts information that conflicts with his or her feelings or beliefs. (if you buy laptop you might ignore or warp info to convince yourself its just as good as a MacBook)

Front 53

Selective Retention:

Back 53

a process whereby a consumer remembers only that information that supports his or her personal beliefs. [Cant remember points from opposing political party]

Front 54

Subliminal messaging:

Back 54

now outlawed in California and Canada.

Front 55

Threshold level of perception:

Back 55

the minimum difference in a stimulus that the consumer will notice

Front 56

Three reasons for segmentingmarket

Back 56

1) - Enablesmarketers to identify groups of customers with similar needs and to analyze thecharacteristics and buying behavior of these groups.

2) - Helpsdesign marketing mixes specifically matched with the characteristics anddesires of one or more segment

3) - Segmentationis consistent with the marketing concept of satisfying customer wants and needswhile meeting the organizations objectives.

Front 57

Segmentation scheme should produce four basic criteria!

Back 57

--Sustainability-Segment most have enough potential customers to make financial sense

-Identifiable and measurable- must be identifiable and measureable so you can see if theres enough people to justify entering makert

-Accessibility- firm must be able to reach members of target segment

-Responsiveness- need to adjust marketing mix accordingly

Front 58

Three reasons for segmentingmarket

1)

Back 58

1) Enablesmarketers to identify groups of customers with similar needs and to analyze thecharacteristics and buying behavior of these groups.

2) Helpsdesign marketing mixes specifically matched with the characteristics anddesires of one or more segment

3) Segmentationis consistent with the marketing concept of satisfying customer wants and needswhile meeting the organizations objectives.

Front 59

Bases for segmenting consumer markets

Back 59

Marketers use segmentation bases, or variables, which arecharacteristics of individuals, groups or organizations, to divide a totalmarket into segments.

Front 60

Psychographic segmentation

Back 60

Segmentingmarkets on the basis of personality, motives, lifestyle, and geo-demographics.

Front 61

Geo-demographics:

Back 61

clusterspotential customers into neighborhood lifestyle categories. It combinesgeographic, demographic, and lifestyle segmentations. People who have verysimilar lifestyles and live in a small demographic area like college students

Front 62

Usage Rate:

Back 62

dividesa market by the amount of product bought or consumed. Allows marketers to focuson heavy users.

Front 63

80/20 principle:

Back 63

holds that 20 percent of all customers generate 80 percent of thedemand.

Front 64

Target Market

Back 64

is a group of people or organizations forwhich an organization designs, implements, and maintain a marketing mixintended to meet the needs of that group.

Front 65

Undifferentiated Targeting:

Back 65

a marketing approach that views the market as one big market with noindividual segments and thus uses a single marketing mix

-Advantages potential savings on production/marketing costs

- Negatives unimaginative products/ more susceptible to competition

Front 66

Concentrated Targeted strategy: a

Back 66

astrategy used to select one segment of a market for targeting marketing efforts

-Advantages /Concentration of resources/ better meet needs of narrowsegment/ allows some sm firms to compete with lg ones/ strong positioning

-Negatives /Segments too small or changing/ Lg competition might moreeffectively capture niche

Front 67

Multi-segment targeting strategy:

Back 67

Astrategy that chooses two or more well-defined market segments and develops adistinct marketing mix for each

Front 68

Cannibalization:

Back 68

a situation when a firm’s new product line shrinks other preexistingmarket lines

Front 69

Positioning:

Back 69

developing a specific marketing mix to influence potential customer’soverall perception of a brand, product line, or organization in general

Front 70

Position:

Back 70

the place a product, brand, or group of products occupies in consumers’minds relative to competing offerings.

Front 71

7 positioning bases:

Back 71

-Attribute (focus on whatproduct has to offer) (brita cleans faucet water) attribute, benefit or feature

-Price and Quality (use high price to indicate quality or low price toindicate value)

-Use or Application (stress the various functions or cross application)

-Product User (focus on personality of user)

-Product Class (focus on associated product with other products)(margarine and butter)

-Competitor (compare your products as better than competition)

-Emotion (evoke emotion) (just do it)( breast cancer awareness)

Front 72

Repositioning:

Back 72

changing consumer perception of a brand inrelation to competing brands.