Marketing Midterm

List in order the seven steps of the marketing research process

(1) Identify and formulate the problem/opportunity (2) Plan the research design and gather secondary data (3) Specify the sampling procedures (4) Collect primary data (5) Analyze the data (6) Prepare and present the report (7) Follow up

You have decided to work all summer to save money for the ultimate $2,000 HD television with surround sound. Trace the steps of your decision process for purchasing your new television.

1) Need recognition: determining whether it is something actual or desired. 2) Information Search: Conducting research on the type of television you are interested 3) Evaluation of alternatives: Looking into a tablet or a Roku. 4) Purchase: The actual purchase of the television. 5) Post-purchase behavior: Whether you are satisfied with the product or not

What is planned obsolescence? Give at least two examples. Is planned obsolescence ethical, or does it serve a function? Explain your answer.

A term commonly used to describe the practice of modifying products so that those that have already been sold become obsolete before they actually need replacement. For example, products such as printers and cell phones become obsolete because technology changes so quickly. Some argue that planned obsolescence is wasteful; some claim it is unethical. Marketers respond that consumers favor style modifications because they like changes in the appearance of goods such as clothing and cars. Marketers also contend that consumers, not manufacturers and marketers, decide when styles are obsolete.

Define cognitive dissonance and describe how consumers and marketers can reduce it.

Cognitive dissonance is the inner tension that a customer experiences after recognizing an inconsistency between behavior and values or opinions. Consumers can reduce dissonance by seeking information that reinforces positive ideas about the purchase, avoiding information that contradicts the purchase decision and revoking

What is the difference between a homogeneous shopping product and a heterogeneous shopping product? Give specific examples of products that fit into each category to help illustrate your answer.

Consumers perceive homogenous shopping product as basically similar; for example, washers, dryers, refrigerators, and televisions. Consumers usually look for the lowest-priced brand that has the desired features. With heterogenous, it is essentially different; for example, furniture, clothing, housing, and universities. Consumers often have trouble comparing hetergenous products because the prices, quality and features vary so much. The decision is often highly individual.

Describe the concept of exchange, and list the five conditions that must be satisfied for exchange to occur. If all conditions are met, does that guarantee exchange will occur? Explain why or why not.

Exchange: people giving up something in order to receive something else they would rather have • At least two parties • Something of value • Communication/delivery • Freedom to accept/reject • Desire to deal with other parties Exchange not happen if conditions are met An agreement must be reached

Name and describe the four strategic alternatives in Ansoff's strategic opportunity matrix, which matches products with markets. For each of the four strategic alternatives, give a specific example of a firm following that strategy.

Market Penetration: increase market share among existing customers (loyalty program) Market Development: attracts new customers to existing products (worldwide businesses) Product Development: create new products for present markets Diversification: introduce new products into new markets (selling milk)

What is marketing myopia? If a movie theater company had a myopic orientation, how might it state its business purpose? If the movie theater company avoided a myopic orientation, how would its business purpose change?

Marketing myopia is when companies that only focus on their good or service, rather than the market. A movie theater that has a myopic orientation would state their business purpose as A movie theater that doesn't have a myopic orientation would state their business purpose as

Consider the following statement: "Relationship marketing is not possible in a firm embracing a production orientation." Do you agree or disagree with this statement? Explain your answer.

Production orientation: field of dreams orientation; "If you build it, they will come"; doesn't consider if what is produced meets market needs, focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace Relationship marketing: a strategy that focuses on keeping and improving relationships with current customers

What is usage-rate segmentation? What is the 80/20 principle, and how does it apply to usage-rate segmentation?

Usage-rate: dividing a market by the amount of product bought or consumed 80/20 principle: a principle holding that 20 percent of all customers generate 80 percent of the demand;

Assume that you have gone to the corner convenience store to pick up your usual brand of potato chips. What type of decision making will take place? How would this differ from the decision making that would take place if the store was out of your regular brand?

Routine response behavior, limited decision making, extensive decision making

Describe the pyramid of corporate social responsibility, and include a description of its components.

A model that suggests corporate social responsibility, is composed of economic, legal, ethical and philanthropic responsibilities and that the firm's economic performance Philanthropic: Contribute resources to the community; improve the quality of life Ethical: Do what is right, just, and fair. Avoid harm Legal: Law is society's condification of right and wrong. Play by the rules of the game Economic: Profit is the foundation on which all other responsibilities rest

Explain the differences among the terms brand, brand name, brand mark, trademark, and service mark.

Brand: a name, term, symbol, design, or design or combination thereof that identifies a seller's products and differentiates them from competitors' products Brand name: that part of the a brand that can be spoken, including letters, words, and numbers Trademark: the exclusive right to use a brand or part of a brand Service mark: a trademark for a service

What is the family life cycle (FLC)? Briefly describe the lifestyle and purchasing needs of consumers in the following FLC stages: (1) young single, (2) young married without children, (3) young married with children, (4) middle-aged married without children, and (5) older unmarried.

Family life cycle is a series of stages determined by a combination of age, marital status, and the presence or absence of children. (1) young single: Basic kitchen equipment, basic furniture, cars, electronics, vacations (2) Young married without children: cars, refrigerators, stoves, sensible and durable furniture, vacations (3) Young married with children: washers, dryers, televisions, baby food, chest rubs, cough medicine, vitamins, dolls, sleds, skates (4) Middle-aged married without children: new and more tasteful furniture, auto travel, unnecessary appliances, boats, dental services, magazines (5) Older unmarried: Medical appliances, medical care, products that aid health, sleep and digestion

Explain the marketing concept and market orientation. What three requirements are included in the marketing concept?

Marketing concept: the idea that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives Marketing orientation: a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product; it is synonymous with the marketing concept • Focusing on customer wants and needs so that the organization can distinguish its product from competitors' offerings • Integrating all the organization's activities, including production, to satisfy customer wants • Achieving long-term goals for the organization by satisfying customer wants and needs legally and responsibly

What is the marketing research problem? What is the marketing research objective?

Marketing research problem is determining what information is needed and how that information can e obtained efficiently and effectively Marketing research objective is the specific information needed to solve a marketing research problem; the objective should be to provide insightful decision making information.

List and describe the three levels of ethical development.

Preconventional Morality: Based on what will be punished and rewarded; self-centered, calculating, selfish Conventional Morality: Moved toward the expectations of society; concerned over legality and the opinion of others Postconventional Morality: Concerns about how they judge themselves; concern if it is right in the long run

While managers can control the marketing mix, they cannot control the elements in the external environment that continually mold and reshape the target market. List six variables of the external environment that are not directly under the control of marketing managers.

Social factors, technological factors, Political/legal factors, demographic factors, economic factors, competitive factors

What is a SWOT analysis? How does it relate to strategic planning?

Strengths: things the company does well Weaknesses: things the company doesn't do well Opportunities: conditions in the external environment that favor strengths Threats: conditions in the external environment that do not relate to existing strengths or favor areas of current weaknesses Strategic planning: the managerial process of creating and maintaining a fit between the organization's objectives and resources and the evoking market opportunities

To be useful, a segmentation scheme must produce segments that meet four basic criteria. Name and briefly describe each of these four criteria.

Substantiality: must be large enough to warrant a special marketing mix Identifiability and Measurablity: segments must be identifiable and their size measurable Accessibility: members of targeted segments must be reachable with customized marketing mixes Responsiveness: markets can be segmented using any criteria that seem logical

What is the American Marketing Association's (AMA) definition of marketing and what does marketing entail?

The American Marketing Association defines marketing as the activity, set of instructions, and processes of creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large. Marketing entails processes that focus on delivering value and benefits to customers, not just selling goods and services.

What is a component lifestyle? Describe how a college student follows a component lifestyle. Use specific examples.

The practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single, traditional lifestyle. People are choosing products and services that meet diverse needs and interests rather than conforming to traditional stereotypes. For example, college students choose products and services to benefit the limited amount that most college students have. Most college students are the primary users of book rental websites like Chegg and BookRenter, due to having required books for class and getting books for a lowest price.

Assume that you have been invited to join a social club whose members typically wear leather bombardier jackets. You have never bought or worn a leather jacket before. List and briefly describe four factors that could influence your level of involvement in the purchase of the leather jacket. How involved will you be in this purchase and why?

• Previous experience • Interest • Perceived risk of negative consequences • Situation • Social Visibility