Marketing Midterm Study Guide (1-12)

Maslow's Hierarchy of Needs

" A theory of human motivation o Physiological o Safety o Love/belonging o Self esteem o Self actualization

the role of long and short term goals of a person and how that can affect their decisions

" Rare is the business leader who can articulate and instill a long-term vision and manage the day-to-day operations with the requisite obsession for detail. A leader who combines both styles is what these authors call a "strategic leader," someone who, more than any other type of leader is best equipped to increase shareholder value. Leaders and potential leaders will find out what it takes when they read this article. o Short-Term Effects " Short-term measures are effective at getting employees focused on specific targets. For example, if you're looking to push a new project line, setting a sales goal influences your workers to stress its attributes to customers. This can be achieved by setting commission-based compensation policies or offering bonuses to top performers o Long-Term Outlook " Long-term goals incorporated into the planning and policy-making process may focus on installing the desired company culture or protecting the brand name, so how decisions affect those areas of your business must be considered. You likely have a vision for what you want your company to look like in five years, 10 years or farther into the future

what are some of the unethical practices

- Invasion of privacy, Stereotyping, Targeting the Vulnerable, excluding potential customers from the market, pricing, price fixing, price wars, deceptive advertising and ethics, bait and switch.

4 Major Growth strategies that business can take

- Market Penetration. This is the least risky of business growth strategies but also has the lowest opportunity for growth. ... - Market Development. The next business growth strategy is targeting new markets with an existing product. ... - Product Development. ... - Diversification.

What defines goods and services

Goods are items that are tangible, such as pens, salt, shoes, hats and folders and Services are activities provided by other people, such as doctors, lawn care workers, dentists, barbers, waiters, or online servers

4 P's

The four Ps in marketing strategy are product, price, place and promotion. These are the four factors you must consider when you plan your marketing strategy. The four Ps are also known as the "marketing mix." To meet the needs of different customers or market sectors, you can change the mix by varying the product you offer, the price you charge, the place you sell it and the way you promote it.

Marketing Mix

a combination of factors that can be controlled by a company to influence consumers to purchase its products.

Positioning statement

o "An idea or statement you want to put in the mind of a customer that differentiate you from competition." o this statement convinces a potential consumer that one particular product or service will add more value or better solve a problem than other similar offerings.

marketing plan

o A marketing plan is a business document outlining your marketing strategy and tactics. It's often focused on a specific period of time (i.e. over the next 12 months) and covers a variety of marketing-related details, such as costs, goals, and action steps. - Situation Analysis, Marketing Strategy, Sales Forecast, Expense Budget

why are subcultures important?

o Any cultural patterning that preserves important features of the dominant society but provides for values, norms, and behaviors of its own. is any cultural patterning that preserves important features of the dominant society but provides for values, norms, and behaviors of its own. o Cultural values are widely held beliefs that affirm what is desirable. These values affect behavior through norms, which specify an acceptable, range of responses to specific situations. Consumer behavior differs because values inherited by consumers differ from culture to culture.

consumer behavior

o Consumer behaviour is the study of individuals, groups, or organizations and all the activities associated with the purchase, use and disposal of goods and services, including the consumer's emotional, mental and behavioural responses that precede or follow these activities. o It examines how emotions, attitudes and preferences affect buying behaviour. Characteristics of individual consumers such as demographics, personality lifestyles and behavioural variables such as usage rates, usage occasion, loyalty, brand advocacy, willingness to provide referrals, in an attempt to understand people's wants and consumption are all investigated in formal studies of consumer behaviour.

why companies have corporate social responsibility?

o Corporate social responsibility (CSR) is a broad term used to describe a company's efforts to improve society in some way. These efforts can range from donating money to nonprofits to implementing environmentally-friendly policies in the workplace. CSR is important for companies, nonprofits, and employees alike. o CSR goes hand-in-hand with a smart brand strategy. Consumers vote with their wallets, supporting companies that demonstrate concern for employee welfare, community development, environmental sustainability, and human rights. o "We live in a customer-centric and highly connected world where consumers not only want to feel good about their purchase but also want to make use of social media to share the story behind the purchase. Consumer sentiment can make or break a business. Having a positive social purpose and a core message that resonates with your audience can be the key business differentiator."

what are the elements that make up culture

o Culture combines many elements to create a unique way of living for different people. In this lesson, we identify four of the elements that exist in every culture, albeit in different forms: symbols, language, values, and norms. We also differentiate between folkways and mores.

customer centric

o Customer centric is a way of doing business with your customer in a way that provides a positive customer experience before and after the sale in order to drive repeat business, customer loyalty and profits. And a customer-centric company is more than a company that offers good service.

demographics

o Demography is the statistical study of populations, especially human beings. As a very general science, it can analyze any kind of dynamic living population, i.e., one that changes over time or space. o Several common traits are used to identify a demographic customer type.

determinant attribute

o Determinant attributes in marketing are those aspects about products and services that determine why consumers buy products o Determinant attributes are important because consumers use them to determine from which competitor they make a purchase.

differentiated and undifferentiated environment

o Differentiated marketing aims to create a highly specialized product or service that appeals to a smaller group of people. Meanwhile, undifferentiated marketing appeals to a broad market base. The latter is more commonly known as mass marketing,

various set of products in a market?

o Evoked, Retrieval, Universal o Retrieval (Awareness) set: Brands the consumer can recall or become aware of during external information search Evoked (consideration) set: Brands the consumer recalls and would consider Universal set: All the brands o Markets try to be in the evoked set

4E framework

o Excite, Educate, Experience, Engage

why is important to engage customers online?

o Gainsight knows the importance of customer engagement in driving revenue. Research shows that customers who get an engaging and a positive customerexperience are more likely to stay with the company. ... Below are some of the benefits that emphasize the importance of customer engagement in increasing sales and revenue. o Engaging customers leads to benefits for the business

green marketing

o Green marketing refers to the process of selling products and/or services based on their environmental benefits. Such a product or service may be environmentally friendly in itself or produced in an environmentally friendly way, such as: Being manufactured in a sustainable fashion

segmentation

o Market segmentation is the process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers based on some type of shared characteristics o Geographic - customers within 10 miles o Demographic - A Level & university students o Behavioral - customers wanting a value for money impulse buy o Psychographic - customers who prefer to buy organic foods

what are the criteria used to understand if you have an appropriate segment?

o Market segmentation is the process of dividing a market of potential customers into groups, or segments, based on different characteristics. The segments created are composed of consumers who will respond similarly to marketing strategies and who share traits such as similar interests, needs, or locations. - Better matching of customer needs: - Enhanced profits for business: - Better opportunities for growth: - Retain more customers: - Target marketing communications: - Gain share of the market segment

how can we prevent customer dissatisfaction? (cognitive dissonance)

o Marketing campaigns may seek to manage consumer doubts about making product purchases with the use informative advertising. This allows marketers to bring in testimonials and independent studies confirming the quality construction and features of a company's products. Marketers may also use persuasive marketing, including humor or celebrity appearances in commercials, as a means of encouraging consumers to associate positive emotions with purchasing the company's products. When consumers feel good about purchasing a company's products, there's a lower chance that dissonance will occur

marketing ethics

o Marketing ethics is an area of applied ethics which deals with the moral principles behind the operation and regulation of marketing.

why is marketing important

o Marketing is one of the most important things a business can do. Not only does marketing build brand awareness but it can also increase sales, grow businesses and engage customers. There are so many core business functions that stem from a good marketing plan that any SMB would be silly not to give it a shot o It informs, it equalizes, it sustains, it engages, it sells, it grows

analysis of the marketing environment

o PEST analysis (political, economic, socio-cultural and technological) describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. ... It is a strategic tool for understanding market growth or decline, business position, potential and direction for operations. o Environmental analysis is a strategic tool. It is a process to identify all the external and internal elements, which can affect the organization's performance. The analysis entails assessing the level of threat or opportunity the factors might present.

what is risk in product decisions?

o Perceived risk is the uncertainty a consumer has when buying items, mostly those that are particularly expensive, for example, cars, houses, and computers. Every time a consumer considers buying a product, he or she has certain doubts about the product, especially if the product in question is highly priced. " o Different Types of Perceived Risks " Functional, Social, Financial, Physical, Time o Reputation, Selling Style, Lack of Attention to Detail

different ways to position a product

o Product user strategy o Product class strategy o Product benefit strategy o Price and Quality Strategy Or - Value - Salient attributes - Symbol - competition

SWOT Analysis

o SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. SWOTstands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors

what do we mean by gender roles?

o Sex roles and consumer preferences of promotions, product, and self o a social role encompassing a range of behaviors and attitudes that are generally considered acceptable, appropriate, or desirable for people based on their actual or perceived sex or sexuality.[2][3] Gender roles are usually centered on conceptions of femininity and masculinity,[2]although there are exceptions and variations. The specifics regarding these gendered expectations may vary substantially among cultures, while other characteristics may be common throughout a range of cultures.

sustainable competitive advantage

o Sustainable competitive advantages are company assets, attributes, or abilities that are difficult to duplicate or exceed; and provide a superior or favorable long term position over competitors. o It is the reason behind brand loyalty, and why you prefer one product or service over another. There are three different types of competitive advantages that companies can actually use. They are cost, product/service differentiation, and niche strategies.

consumer buying process

o The buying decision process is the decision-making process used by consumersregarding market transactions before, during, and after the purchase of a good or service. It can be seen as a particular form of a cost-benefit analysis in the presence of multiple alternatives. " 1. Problem Identification: 2. Information Search: 3. Evaluation of Alternatives: 4. Purchase Decision: 5. Post-purchase Decisions:

BCG Model

o The growth-share matrix is a chart that was created by Bruce D. Henderson for the Boston Consulting Group in 1970 to help corporations to analyze their business units, that is, their product lines. This helps the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis. o 4 quadrant model understanding

constraints of consumers external environment

o The theory of constraints, an organizational change method focused on process improvement, contends that every organization must face at least one constraint, or weak link in the process chain. In regard to marketing, constraints may affect product, price, place or promotion. o Limitations and constraints are factors that work as a resource that is currently working at its full capacity. Limitations and constraints restrict an organization from achieving its potential. Examples of limitations and constraints are: Legal constraints

value drive market

o Value drivers are anything that can be added to a product or service that will increase its value to consumers. These differentiate a product or service from those of a competitor and make them more appealing to consumers. o The greatest benefit of a value driver is that it provides a competitive advantage to a business, giving that business an upper hand in its industry. Value drivers can come in many forms, such as superior brand awareness or revolutionary technology. o boost its leverage on the marketplace. They will further influence consumers to purchase that product. o Benchmarking is the process of measuring a business's performance against competitors and industry standards. Companies benchmark to analyze their success and get a better understanding of how they are performing relative to their competition

supply chain

o the sequence of processes involved in the production and distribution of a commodity. o A supply chain is a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer.