Mkt Exam 1 Study For Real

Front 1

Why is the selection of a target market more efficient and more effective than mass marketing?

Back 1

Mass marketing means that all customers are treated the same. It is simple for marketers but not effective, usually.One-to-one marketing is at the other extreme. It means that each customer serves as his or her own segment. This approach sounds appealing from the customer’s point of view because the product would be tailored specially for each person’s idiosyncratic desires.Both of these techniques are usually unrealistic since customers are many and diverse--that’s where segmentation comes in. It’s a happy medium between the two.

Front 2

What is the difference between satisfaction and satisficing?

Back 2

Satisfaction exist when consumer's expectations are exceeded. Satisficing is when minimum standards are met.

Front 3

Explain why "Advertising" is too limiting a definition for marketing.

Back 3

Advertising: The paid, public, non-personal announcement of a persuasive message by an identified sponsor; the non-personal presentation or promotion by a firm of its products to its existing and potential customers.
Marketing: The systematic planning, implementation and control of a mix of business activities intended to bring together buyers and sellers for the mutually advantageous exchange or transfer of products.

Front 4

List and describe the 5Cs.

Back 4

The 5Cs are customer, company, context, collaborators, and competitors. These Cs help us assess any particular business problem or opportunity in terms of a general analysis of the entire business situation. The customer and company are obviously the central players in the marketing exchange. The context includes things like the macroenvironment: How are our economy and that of our suppliers doing? What legal constraints might we face? What cultural differences do our global segments manifest? The collaborators and competitors are the companies and people we work with vs. those we compete against, although drawing the line is sometimes difficult in today’s global, networked economy.

Front 5

Define STP and explain how it influences the marketing process.

Back 5

STP stands for segmentation, targeting, and positioning. The STP part of marketing refers to the fact that we are very unlikely to be all things to all people, so it’s best to identify groups, or segments, of customers who share similar needs and wants. Once we understand the different segments’ preferences, and we presumably can identify our own company’s strengths, we can identify the segment we should target with our marketing efforts. We then strike up a conversation and relationship with that target segment by positioning our product to them in the marketplace via the 4Ps.

Front 6

List and describe the 4Ps.

Back 6

The 4Ps are product, price, promotion, and place. A marketer's responsibilities are to create a product that customers are likely to need or want; price the product appropriately; promote it via advertising and sales promotions to help customers understand the product’s benefits and value; and make the product available for purchase in easily accessed places.

Front 7

“People buy benefits, not things.” Explain.

Back 7

“People don’t buy a ¼” screw, they buy ¼” holes” Think outside of the box, people are paying for the benefit the product provides. Utilities.

Front 8

What do firms need to know about the competition?

Back 8

Everything. The market potential, what about competition appeals to customers. 4 p's. SWOT. Etc.

Front 9

If you build a better mousetrap, will the world beat a path to your door?

Back 9

No, remember the story about the plastic mouse trap. People didn't know how to use it, it wasn't marketed well. Product failed.

Front 10

What is the basic role and structure of a marketing plan?

Back 10

5 C's, STP, 4 P's

Front 11

What is the "control" function of the marketing plan?

Back 11

Marketing control is the process of monitoring the proposed plans as they proceed and adjusting where necessary. If an objective states where you want to be and the plan sets out a road map to your destination, then control tells you if you are on the right route or if you have arrived at your destination.

Four P's are controllable

Front 12

Why do marketers talk about utilities?

Back 12

Customers buy benefits not things. They want the satisfaction and outcomes that the product yields. These satisfaction come from various Marketing utilities.

Front 13

Form Utility

Back 13

Physical Form; Materials, quality, Style, Color, Attributes and functions.

Front 14

Place utility

Back 14

Accessibility;

Is product available where I want it?

Front 15

Time utility

Back 15

Is the Product available when I want it?

Front 16

Information Utility

Back 16

Do I have enough info about it? Do I know what benefits it provides? Do I know about its risk? Do I know how to use it? Is there value added information?

Front 17

Image Utility

Back 17

What value does its reputation or status yield?

Front 18

Possession Utility

Back 18

Pride of ownership

Front 19

What is competitive advantage?

Back 19

Competitive advantage is a business concept describing attributes that allows an organization to outperform its competitors. These attributes may include access to natural resources, such as high grade ores or inexpensive power, highly skilled personnel, geographic location, high entry barriers, etc. New technologies, such as robotics and information technology, can also provide competitive advantage, whether as a part of the product itself, as an advantage to the making of the product, or as a competitive aid in the business process (for example, better identification and understanding of customers).

Front 20

What is sustainable competitive advantage?

Back 20

Competitive advantage exists when a particular company consistently outperforms other companies in the same industry. A company is considered to be outperforming others if profits are higher than the competition's profits. The competitive advantage is thought to be stronger when it lasts for a longer period of time. Those companies who are able to maintain a competitive advantage for many years are thought to have asustainable competitive advantage.

Front 21

What are the two broad groups of consumer law?

Back 21

Indirect protection, direct protection.
Protected competition, protected the consumer.

Front 22

Sherman act, Clayton act.

Back 22

Anti-trust 1

Front 23

FTC act

Back 23

Created Federal Trade Commission; Broadened scope of antitrust legislation 1

Front 24

Robinson-Patman act

Back 24

price discrimination. Proportionally equal. 1

Front 25

Wheeler-Lea Act:

Back 25

unfair advertising 1

Front 26

Fair Packaging and Labeling Act:

Back 26

Disclosures on Packages origin, net weight, ingredients listed in order by weight. 2

Front 27

Consumer Product Safety Act:

Back 27

Created CPSC, which can limit or stop sales of products they deem unsafe. 2

Front 28

Truth in Lending Act

Back 28

Disclosures of the cost of credit over the life of a loan or mortgage. 2

Front 29

Primary competition

Back 29

Just like us. MCD v. BK for example

Front 30

Secondary competition

Back 30

Generally similar, substantial difference however. MCD v. Moes for example

Front 31

Tertiary competion

Back 31

Same concept, but different means of supplying to consumer. MCD v. Publix for example.

Front 32

Interbrand

Back 32

Tyde v. Gain. MCD v. BK

Front 33

Intrabrand

Back 33

Can v. Bottle

Front 34

intertype

Back 34

Competition among firms in different types of businesses but which sell the same product. For example, tires may be sold through automotive parts stores, discount stores, gas stations, or specialized tire shops.

Front 35

intratype

Back 35

Competition among firms in the same type of business. For example, competition between one supermarket and another, or between one drug-store and another. competition.CVS v. Walgreens. Walmart v. Target

Front 36

What factors contribute strongly to new product success?

Back 36

Strong and varied Marketing Research.

Front 37

What is the role of a SWOT analysis in a marketing plan?

Back 37

SWOT stands for strengths, weaknesses, opportunities, and threats. In the S & W, we’re characterizing the company: “What are our strengths and weaknesses?” In the O & T, we’re characterizing the broader environment (e.g., industry, suppliers, government, etc.): “What are the opportunities and threats?” S & W are considerations internal to the organization; and O & T, external.SWOTs are useful in clarifying most marketing questions. In such an analysis, we can declare our strengths and weaknesses relative to our competitors, but our opinion doesn’t matter as much as that of the customer base. Hence, we’d obtain some marketing research data, such as the perceptual maps described in the chapter. If our brands, product lines, and company have perceived weaknesses in areas that customers care about, clearly we should address those shortcomings. If our brands and products have perceived strengths, we will consider what we can do to assure that these will be sustainable competitive advantages.

Front 38

Why should we think about products as "augmented"?

Back 38

The AUGMENTED product is the non-physical part of the product. It usually consists of lots of added value, for which you may or may not pay a premium. So when you buy a car, part of the augmented product would be the warranty, the customer service support offered by the car’s manufacturer and any after-sales service. The augmented product is an important way to tailor the core or actual product to the needs of an individual customer. The features of augmented products can be converted in to benefits for individuals.

Front 39

Tangible product

Back 39

The ACTUAL product is the tangible, physical product. You can get some use out of it. Again with the car, it is the vehicle that you test drive, buy and then collect. You can touch it. The actual product is what the average person would think of under the generic banner of product.

Front 40

Non Tangible product

Back 40

The CORE product is NOT the tangible physical product. You can’t touch it. That’s because the core product is the BENEFIT of the product that makes itvaluable to you. So with the car example, the benefit is convenience i.e. the ease at which you can go where you like, when you want to. Another core benefit is speed since you can travel around relatively quickly.

Or Ideas

Front 41

Qualitative research

Back 41

ask questions, interview. Open ended. More ideas but unable to obtain a larger response

Front 42

quantitative research

Back 42

Survey. Quick, but not as descriptive.

Front 43

What is GIGO and how does it relate to marketing research?

Back 43

Often abbreviated as GIGO, this is a famous computer axiom meaning that if invalid data is entered into a system, the resultingoutput will also be invalid. Although originally applied to computersoftware, the axiom holds true for all systems, including, for example, decision-making systems.

Front 44

What are the key advantages of using intercepts as a form of survey/questionnaire research?

Back 44

The customer has their shopping hat on, or just completed shopping and may inform you on the experience

Front 45

Explain trade associations as good secondary sources of information about markets and competitors

Back 45

For the most targeted and current industry information, trade organizations and trade magazines cannot be overlooked. There are thousands of trade associations, and they have a vested interest in tracking their respective industries

Front 46

What advantages does observation have as a research tool?

Back 46

You can observe customers as they shop.

Front 47

Explain the makeup and benefits of focus groups as a research tool.

Back 47

Focus groups are exploratory, meaning that you’re not ready to put specific questions on a survey. They are usually used for concept testing in the early stages of new product development or when working on ad campaigns. In a focus group, about 8 to 10 consumers discuss your products and your competitors’ products in the contexts of their lives, typically while you watch from behind a two-way mirror. One person is hired to be a “moderator,” and he or she keeps the discussion going, tries to address all the items on the client’s wish list, tries to bring out the quieter group members, tries to control the overbearing group members, and so on. It can help to have the moderator be similar to the focus group participants, especially if there is a sensitive topic involved. The moderator kicks off the group discussion with some warm-up exercise, then questions from the client are introduced and the discussion begins. Different topics are introduced along the way, and after 1.5 hours, the group is thanked, dismissed, and paid. As an observer, you take notes and then discuss these with your team as well as the moderator who was interpreted the situation too. These observations can be very helpful, but it is always a good idea to follow up with large-scale survey.

Front 48

What is the point of segmentation?

Back 48

it’s best to identify groups, or segments, of customers who share similar needs and wants. Once we understand the different segments’ preferences, and we presumably can identify our own company’s strengths, we can identify the segment we should target with our marketing efforts. We then strike up a conversation and relationship with that target segment by positioning our product to them in the marketplace via the 4Ps.

Front 49

What is the customer adoption curve?

Back 49

Curve that shows how time and ownership of a product correlate. Starts slow with innovators, then Early adopters, Majority market, and ends with laggards.

Front 50

Why are demographics alone insufficient to profile a target market?

Back 50

Demographics don't answer everything. Therefore, the volume, velocity, and variety of “Big Data” may fail to deliver accurate predictions of new product demand, ROI for deployment of innovative products, and responses to new brand positioning, promotions, and messaging strategies.Relying solely on “Big Data” is like driving a car by looking only in the rearview mirror. This works fine as long as the road is straight, but curves in the road lead to disaster. Markets are constantly changing and marketing research allows us to look out of the front windshield and anticipate the curves ahead. It allows us to understand and predict, and be “ahead of the curve.”

Front 51

What are reference groups?

Back 51

Reference groups are groups that consumers compare themselves to or associate with. Reference groups are similar to opinion leaders in that they can have a profound influence on consumer behavior. Reference groups are considered a social influence in consumer purchasing.

Front 52

Why are some individuals opinion leaders? What are possible sources of their influence?

Back 52

Opinion leaders are anyone who's an active voice in a community. It's somebody who (a) speaks out and (b) gets asked for advice a lot.This is different than a community gadfly, like the guy who always shows up to every city council meeting and asks question after question about some obscure pet issue. He's s not an opinion leader. Sure, he speaks out a lot -- but nobody really listens, and people aren’t stopping him on the street to ask about other issues, like who they should support for president or what dentist he recommends.

Front 53

What role do socialization agents serve in consumer behavior?

Back 53

Socialization agents train someone to be a consumer.
Primary Socialization occurs when a child learns the attitudes, values, and actions appropriate to individuals as members of a particular culture. It is mainly influenced by the immediate family and friends

Front 54

Artifact research

Back 54

Taking something that another firm made and analyzing it.

Front 55

Naturalistic observation

Back 55

Watching people in their natural environment. People watching. Undisturbed.

Front 56

Participant observation

Back 56

Observe while participating. Want to know how a fraternity works? Join one.

Front 57

Anecdotal evidence

Back 57

Evidence from stories.

Front 58

Schema interview

Back 58

In psychology and cognitive science, a schema (plural schemata orschemas) describes an organized pattern of thought or behavior that organizes categories of information and the relationships among them.

Front 59

protocol interview

Back 59

the official procedure or system of rules governing affairs of state or diplomatic occasions."protocol forbids the prince from making any public statement in his defense"
2.the original draft of a diplomatic document, especially of the terms of a treaty agreed to in conference and signed by the parties.

Front 60

experiential interview

Back 60

nvolving or based on experience and observation.

Front 61

Intercept interview

Back 61

Interview conducted as you intercept a customer coming or going to the store.

Front 62

Innovators

Back 62

Risk taking, like to be the leader, younger, more affluent

Front 63

Early Adopters

Back 63

People with strong social ties (opinion leaders), strong WOM

Front 64

Early Majority

Back 64

More deliberate

Front 65

Late Majority

Back 65

More Skeptical, wait and see attitude

Front 66

Laggards

Back 66

Last to use, typically older and financially conservative

Front 67

Non adopters

Back 67

Don't buy, at all.