Marketing Test 1
Common questions under production orientation:
"What can we do best?" "What can our engineers design?" "What is the easiest to produce given our equipment?"
A sales oriented organization targets its products at
"everybody" or the "average" consumer.
self actualization
"people are what they feel they should be" - few people ever attain this level
Whats the consumer decision making process?
(1) need recognition, (2) information search, (3) evaluation of alternatives, (4) purchase (5) postpurchase behavior.
Four competing philosophies strongly influence an organization's marketing processes:
- production orientation - sales orientation -market orientation -societal marketing orientation
family(social factor)
-MOST important social institution -influences values, attitudes, etc.
changes in attitude:
-changing beliefs about brand attributes (neg-> pos.) -changing relative importance of beliefs -adding new beliefs
Life events
-events over time -mean new consumption patterns
The marketing concept includes:
-focusing product on what customers want while distinguishing yourself from competitors -integrating all org activities, including production, to satisfy customer wants -achieving long-term goals by satisfying customer wants and needs legally and responsibly.
What are three important implications that reference groups have?
-info sources -affect aspirational levels -norms constrain or stimulate consumer behavior
motivation
-major forces influencing customers to buy or not buy -driving force that causes a person to take action to satisfy specific needs
Initiator -> influencer -> decision maker ->purchaser -> consumer (social)
...
The mechanisms for evaluating marketing results in light of the plan's objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines are provided by ________ . a. customer analytics b. control c. customer analytics d. distribution
...
The societal marketing concept was adopted when concerns such as climate change, depleting ozone layer, etc., caused consumers and legislators t become more aware of the need for companies to adopt measures measures that conserve resources and cause less damage to the environment.
...
What are the characteristics of an SBU?
...
Which of the following fact challenges the marketers trying to target the Hispanic market? a. Hispanic households tend to have larger families that prefer local products. b. The majority of Hispanic Americans are of Mexican descent. c. The Hispanic population is diverse with many language differences. d. The Hispanic population continues to gain market share.
...
business markets have different characteristics:
...
marketing philosophy and practice same whether its a busines org or a consumer
...
STP:
1. Market segmentation - division of market into distinct groups of potential buyers who have similar needs and wants Identify dimensions for segmenting the market Develop profiles of segments 2. Market targeting - selection of segments to reach Develop measures of attractiveness Select target segment(s) 3. Market Positioning - formulation of positioning and (ultimately) the marketing mix Develop positioning for each target segment Develop marketing mix (at a high level) for each target segment
steps in segmenting market:
1. Select a market or product category for study 2. Choose a basis or bases for segmenting the market 3.Select segmentation descriptors Profile and analyze the segments 4.Select target markets* 5.Design, implement, and maintain appropriate marketing mixes
An exchange can only take place if the following five conditions take place:
1. must be two parties 2.each party has something of value 3. each party capable of communication 4. each is free to accept or reject exchange offer 5. each party believer it is appropriate or desirable to deal with other party
Maslows hierarchy of needs:
1. self-actualization 2. esteem needs- self esteem, recognition 3. social needs- love, belonging 4. safety needs- security, protection 5. physiological needs-hunger, thirst
A product development strategy entails: a. creating new products for present markets. b. introducing new products to new markets to increase sales. c. attracting new customers to existing products. d. increasing the market share among present customers.
A
Having a ________ means being the inexpensive competitor in an industry while maintaining satisfactory profit margins. a. cost competitive advantage b. product differentiation competitive advantage c. niche competitive advantage d. product differentiation competitive advantage
A
The C. Crane Company manufactures and sells only high-end shortwave radios and related products to serious radio enthusiasts. Which type of competitive advantage does C. Crane use? a. Niche competitive advantage b. Service differentiation competitive advantage c. Cost competitive advantage d. Service differentiation competitive advantage
A
market segment
A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.
Avoid unrealistic pricing example:
Amazon e-price cheaper than brick counterparts (best buy, etc)
3 tools for strategic opportunity matrix:
Ansoff's BCG model GE Model
Ex of Indirect nonmembership:
Aspirational-want to join Nonaspirational-try to avoid (dont want to be associated with them)
Consumers' attitudes, values, and lifestyles constitute the ________ factors that affect marketing. a. political b. economic c. political d. lega
B
Having a ________ means being the inexpensive competitor in an industry while maintaining satisfactory profit margins. a. product differentiation competitive advantage b. cost competitive advantage c. product differentiation competitive advantage d. niche competitive advantage
B
In the portfolio matrix, a business unit that has low growth potential and a small market share is known as a ________ . a. question mark b. dog c. question mark d. star
B
The unique blend of product, place (distribution), promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market is known as a ________ . a. vertical integration plan b. marketing mix c. vertical integration plan d. promotional mix
B
________ involves the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets. a. Environmental scanning b. Marketing strategy c. Environmental scanning d. Portfolio matrix
B
optimizers
Business customers who consider numerous suppliers, both familiar and unfamiliar, solicit bids, and study all proposals carefully before selecting one.
satisfiers
Business customers who place an order with the first familiar supplier to satisfy product and delivery requirements.
A ________ is a thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization. a. MOA analysis b. marketing resource plan c. marketing audit d. marketing mix model
C
Designing activities relating to marketing objectives and the changing marketing environment is known as ________ . a. marketing activation b. marketing mix modeling c. marketing planning d. marketing operation
C
The best marketing tactic for a star SBU is to a. to harvest the meager returns or divest the SBU. b. invest heavily to gain a better market share or drop the SBU. c. protect the existing market by reinvesting earnings. d. maintain market dominance by being the price leader.
C
types of social classes:
Capitalist 1%- investors in natl economy Upper middle class 14%- upper level mgmt, medium size business owner, etc. middle class 33%- education past HS
_________ is learned from families, friends, etc.
Culture
A statement of what is to be accomplished through marketing activities is called a ________. a. marketing mix b. marketing perspective c. marketing channel d. marketing objective
D
A subgroup of a single business or collection of related businesses within the larger organization is called a ________ . a. business portfolio b. strategic business alliance c. business cluster d. strategic business unit
D
Building an SBU would be an appropriate goal if the SBU: a. is currently a cash cow in a declining market. b. currently generates positive cash flow while requiring minimal investment. c. has low growth potential and a small market share. d. is presently a problem child, but has great potential to be a star.
D
Designing activities relating to marketing objectives and the changing marketing environment is known as ________ . a. marketing mix modeling b. marketing activation c. marketing operation d. marketing planning
D
In the portfolio matrix, a business unit that is a fast-growing market leader is called a ________ . a. cash cow b. question mark c. dog d. star
D
The environmental scanning process: a. examines organizational resources such as employee capability. b. assesses a firm's strengths and weaknesses. c. allows businesses to be defined in terms of goods and services. d. helps identify market opportunities and threats.
D
Which allocation strategy should Matrix Communication Equipment probably employ with its typewriter SBU? a. Build b. Hold c. Harvest d. Divest
D
Which of the following statements about family life cycle is true? a. A person's place in the family life cycle is the same regardless of the person's age. b. The family life cycle is reflected in the lifestyle of an individual. c. Marketers have no need to be aware of nontraditional lifestyle paths. d. Many marketers are still wary of targeting nontraditional families.
D
Types of Reference groups:
Direct (face to face) Indirect non-membership
Which of the following is an example of a product? a. an external hard drive b. the packaging of the drive c. installation software d. a money-back guarantee e. All of the above
E
Ex. of Individual Factors
Gender personality age & family
family life cycle
MAY BE DIFFERENT
Marketers interested in customer value:
Offer products that outperform, Earn Trust, Avoid unrealistic pricing, give the buyer facts,offer organization-wide commitment in service and after sales support, support, cocreation.
Measuring online success
Recency frequency data monetary value of sales conversion task- sets up conversion rate
Examples of Social Factors
Ref groups, family, opinion leaders
Large companies may manage a number of very different business called?
SBUs (strategic business units)
geodemographic segmentation
Segmenting potential customers into neighborhood lifestyle categories. Combines geographic, demographic, and lifestyle segmentation.
What are some factors that affect the decision making process?
Social, Cultural, Individual, Psychological
Evaluation of web application:
Stickiness= freq x duration x site reach
Marketing can occur even if an exchange does not occur.
TRUE
"There is only one boss. The customer" Explain.
The customer can fire everyone in the company by spending his money somewhere else. As internet use and mobile devices become increasingly pervasive, the customer's control in business will grow. The shift occurred when customers began using books, electronics, and the internet to access goods, services, and information.
positioning
The place a product occupies in consumers' minds, relative to competing products or brands
market segmentation
The process of dividing a market into meaningful, relatively similar, identifiable segments or groups.
benefit segmentation
The process of grouping customers into market segments according to the benefits they seek from the product.
B2B- using web to connect with business customers
True
Facebook acquiring customers for B2B companies
True
Price is component of value, but low price is not the same as good value.
True
What customers think they are buying-the perceived value- is what defines a business.
True
perceptual map
Visual method of understanding your brand's positioning, relative to competitors, along factors that are important to a particular customer segment
10. A(n) ________ is a philosophy that focuses on the internal capabilities of a firm rather than on the desires and needs of the marketplace. a. production orientation b. assessment orientation c. sales orientation d. market orientation
a
6. Which of the following is a similarity between a sales orientation and a production orientation? a. Both lack an understanding of the needs and wants of the marketplace. b. Both propose the idea that marketing primarily means selling things to collect money. c. Both deliver superior customer value and satisfaction consistently. d. Both rely on assessing the strengths and weaknesses of a firm's competitors.
a
7. Sales-oriented firms define their business in terms of: a. the goods and services it produces. b. meeting customer needs through a wide range of product offerings. c. the benefits its customers seek. d. offering their customers everything they want.
a
8. Which of the following is true of promotion in a sales-oriented firm? a. Promotional activities such as personal selling and advertising are heavily used. b. Sales-oriented firms rely more on interfunctional coordination for promotion and delivering superior customer value. c. All four components of the marketing mix are considered equally important. d. Sales-oriented firms recognize that marketing is just the responsibility of the marketing department.
a
A company implements ________ in order to change the opinions that consumers have about their products. a. repositioning b. segmenting c. evaluation d. positioning
a
A computer manufacturer promotes its products with a single campaign aimed at various groups. This is an example of ________ strategy. a. undifferentiated targeting b. concentrated targeting c. multisegment targeting d. target market
a
A middle manager in the human resources division is assigned to make recommendations on which software package the firm should buy. This role is known as: a. influencer/evaluator. b. gatekeeper. c. initiator. d. decider.
a
A(n) ________ is a reference group that a person would like to join. a. aspirational reference group b. secondary membership group c. nonaspirational reference group d. primary membership group
a
According to Maslow's hierarchy, the highest human need is ________ . a. self-actualization b. safety c. self-esteem d. romantic love
a
An accounting firm purchases an entirely new telephone system to replace its current outdated system. This is an example of which buying situation? a. new buy b. straight rebuy c. modified rebuy
a
Hard drives, processors, and USB ports are all examples of: a. component parts. b. accessory equipment. c. raw materials. d. major equipment.
a
If a market segment reacts to a marketing mix differently than other segments, the criterion of ________ for successful segmentation is met. a. responsiveness b. substantiality c. accessibility d. measurability
a
In the purchase process, ________ are those members of the family who actually exchange money for the product. a. purchasers b. initiators c. consumers d. influencers
a
Many parents avoid buying minivans because they do not want to sacrifice their youthful image. These consumers appear to be very concerned about their ________ . a. self-concepts b. psychographics c. safety needs d. subculture
a
The amount of ink a printing firm needs is based on the demand for materials that will be printed using that ink. This is an example of ________ . a. derived demand b. joint demand c. elastic demand d. joint demand
a
The study of ________ examines, for example, the percentage of single parent homes or the percentage of bilingual individuals. a. demography b. ethnic studies c. anthropology d. gender studies
a
________ are expense items that do not become part of a final product. a. Business services b. Installations c. Supplies d. Processed materials
a
target market
a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges
undifferentiated targeting strategy
a marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix
perceptual mapping
a means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers' minds
product differentiation
a positioning strategy that some firms use to distinguish their products from those of competitors
80/20 principle
a principle holding that 20 percent of all customers generate 80 percent of the demand
family life cycle (FLC)
a series of stages determined by a combination of age, marital status, and the presence or absence of children
cannibalization
a situation that occurs when sales of a new product cut into sales of a firm's existing products
multi segment targeting strategy
a strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each
concentrated targeting strategy
a strategy used to select one segment of a market for targeting marketing efforts
why segment?
address unique needs of unique segments focus a company's decision making and use of limited resources! improved resource allocation better marketing results
adv & disadv. of concentrated (niche) target marketing:
adv: - concentration of better resources -better meet needs -stronger positioning dis: -segments cant be too small -large competitors may be more effective
adv & disadv. of multi-segment mkt strategy
adv: greater financial success -economies of scale -defensive dis: -high costs -cannibalization
adv & disadv. of undifferentiated target marketing:
adv: potential savings on production and marketing costs dis: -unimaginative product offerings -susceptible to competition
perception
affects process by which we select, organize, and interpret these stimuli into a meaningful and coherent picture. -how we see the world around us and how re cognize that we nneed some help in making a purchasing decision
Consumer tastes correlate with?
age
demographics
age, gender, income, race/ethnicity, family life cycle
Need recognition is the result of?
an imbalance b/w actual and desired states.
one-to-one marketing (mass customization)
an individualized marketing method that utilized customer information to build long-term, personalized, and profitable relationships with each customer.
The societal marketing orientation states that?
an organization exists not only to satisfy customers wants and needs and to meet organizational objectives but also to preserve or enhance individuals' and society's long-term best interests.
Stimulus
any unit of input affecting one of more of the five senses.
awareness-
attention that social media attracts
How to have a successful social media campaign
awareness engagement conversions
4. Which of the following is true of marketing? a. It comes into play right after product design and management. b. It includes assessing the satisfactions of present and potential customers. c. It is solely the responsibility of a firm's marketing department. d. It lost its significance when the popularity of personal selling declined.
b
5. The company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups is called ________ , a. consumer market penetration b. customer relationship management c. consumer sales promotion d. customer value framework
b
A ________ is a written document that acts as a guidebook of marketing activities for the marketing manager. a. marketing plan b. marketing objective c. mission statement d. marketing objective
b
A firm that engages in environmental management attempts to change: a. performance appraisal methods. b. legal regulations. c. range of products. d. methods of research and development.
b
A(n) ________ is the enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct. a. norm b. value c. opinion d. attitude
b
Before purchasing an expensive and complex item, people take their time and rely on a lot of information and then make a(n) ________ purchase. a. partially planned b. fully planned c. unplanned d. impulsive
b
In the portfolio matrix, a business unit that generates more cash than it needs to maintain its market share is called a ________ . a. question mark b. cash cow c. question mark d. star
b
Learning to differentiate among similar products is known as ________ . a. selective perception b. stimulus discrimination c. selective distortion d. subliminal perception
b
The Smart car is aimed at young, urbanites who want efficient and convenient transportation. This is an example of ________ strategy. a. undifferentiated targeting b. concentrated targeting c. multisegment targeting d. target marke
b
The consumer demand for HDMI cables is directly related to consumer demand for HD TVs. This is an example of: a. inelastic demand. b. joint demand. c. derived demand. d. fluctuating demand.
b
The process by which a consumer notices certain stimuli but ignores others is called ________ . a. stimulus generalization b. selective exposure c. stimulus generalization d. selective motivation
b
The use of the Internet to facilitate the exchange of goods, services, and information between business organizations is known as ________ . a. C2B e-commerce b. B2B e-commerce c. C2B e-commerce d. B2C e-commerce
b
When Kraft posts a YouTube video with its latest commercial for Mac n' Cheese, which type of communication is that? a. One to One b. One to Many c. Viral video d. Many to Many
b
When buying frequently purchased, low-cost goods and services that require little search and decision time, consumers are most likely to exhibit: a. extensive decision making. b. routine response behavior. c. extensive decision making. d. fully planned decision making.
b
Which of the following is a key benefit of the undifferentiated target strategy? a. strong positioning in the market b. cost savings c. economies of scale in producing and marketing d. concentration of resources
b
Which of the following is true of a concentrated targeting strategy? a. It protects the firm from segments that are too small or shrinking. b. It can better meet the needs of a narrowly defined segment. c. It increases marketing costs as the firm promotes too many segments. d. It is the preferred strategy to market commodity goods such as flour and sugar.
b
Which of the following is true of raw materials? a. Local distributors play an important role as buyers often purchase from them. b. Promotion of raw materials is usually through personal selling. c. They retain their identity even after becoming part of the final product. d. Local distributors play an important role as buyers often purchase from them.
b
________ The Act was passed in 2010 to protect consumers using the Consumer Financial Protection Bureau, which deals with unfair, abusive, and deceptive practices. a. Consumer Product Safety Act b. Restoring American Financial Stability Act c. Gramm-Leach-Bliley Act d. Robinson-Patman Act
b
conversion task
behavior that a marketer wants the visitor to take
value
belief shared by society that a specific mode of conduct is personally or socially preferable to the other.
benefits
benefits sought
Governemnts
big consumer
monetary value of sales
big spenders may be large part of your sales
personality
broad concept that can be thought of as a way of organizing and grouping how an individual reacts to situations
5 aspects of business buying behavior:
buying centers evaluative criteria buying situations business ethics customer service
1. ________ is defined as the use of collaborative efforts to accomplish common objectives. a. Intervention b. Employee monitoring c. Teamwork d. Employee monitoring
c
2. A ________ is based on the ideas that people will buy more goods and services if aggressive marketing techniques are used to convince potential customers to buy. a. market orientation b. societal marketing orientation c. sales orientation d. societal marketing orientation
c
9. Sun Furniture's loud, blaring TV ads are notorious throughout the Midwest. Every weekend, the airwaves are filled with commercials promoting the latest "special sale," every holiday is an occasion for a "big sale" as well. It is probably safe to say that Sun Furniture: a. has committed to the marketing concept. b. is committed to service and after-sales support. c. is a sales-oriented organization. d. is committed to service and after-sales support.
c
A firm allows its researchers to devote 20 percent of their time to pursue their own ideas and projects. Which approach is the company using in this case to stimulate innovation? a. Using marketing research b. Creating an innovative environment c. Catering to entrepreneurs d. Using the Web
c
A reference group with which people interact regularly in an informal, face-to-face manner, such as family and friends, is known as a(n) ________ . a. nonaspirational reference group b. nonaspirational reference group c. primary membership group d. secondary membership group
c
Brandon needs a new couch and decides he cannot afford more than $500 for his purchase. As he evaluates alternatives for purchase he automatically eliminates all couches that cost more than $500. Brandon is effectively using ________ to narrow the number of possible choices. a. an internal stimulus b. categorization c. cutoffs d. brand extensions
c
In a buying center, influencers are the people who: a. have the formal power to approve the purchase. b. first suggest making a purchase. c. provide information for evaluating options. d. actually negotiate the purchase
c
In the context of business products, ________ are goods, such as portable tools, that are less expensive and shorter-lived than installations. a. processed materials b. major equipment c. accessory equipment d. component parts
c
In the context of measuring online success, ________ relates to the fact that customers who haven't purchased for a while are less likely to purchase again than those who purchased a short while ago. a. frequency b. stickiness c. recency d. conversion rate
c
Segmenting markets on the basis of personality, motives, lifestyles, and geodemographics is called ________ segmentation. a. gender b. ethnic c. psychographic d. geographic
c
Segmenting potential customers into neighborhood lifestyle categories is known as ________ segmentation. a. benefit b. usage-rate c. geodemographic d. family life cycle
c
Sharon was born in the 1950s and expects to continue working through her sixties. Sharon is most likely a: a. millennial. b. Gen Xer. c. baby boomer. d. Gen Yer.
c
Sugar, leather and iron ore are all examples of: a. component parts. b. accessory equipment. c. raw materials. d. major equipment.
c
The Federal Trade Commission is empowered to do all of the following EXCEPT: a. promote competition. b. approve or deny the merger of two companies. c. establish safety standards on products. d. inform consumers, businesses, and policy makers about competition issues.
c
The process by which a consumer notices certain stimuli but ignores others is called ________ . a. stimulus generalization b. stimulus generalization c. selective exposure d. selective motivation
c
Through research, a gum manufacturer learns that long-lasting flavor is the most important attribute for its customers. The manufacturer changes the formula of its gum to meet that criterion. In this case, the marketers have used ________ to better satisfy its target market. a. cause-related marketing b. promotion strategies c. consumer behavior d. green marketing
c
Which of the following are members of Konrad's secondary membership group? a. Konrad's congressional and senatorial representatives b. Konrad's congressional and senatorial representatives c. The members of Konrad's church d. The members of the Biltmore Country Club, which Konrad hopes to join one day
c
Which of the following is the best example of a marketing-controlled information source? a. Friends and coworkers b. Personal experiences c. Sales people d. Product rating organizations
c
Which of the following is true of routine response behavior? a. Routine response behavior is associated with high cost, high involvement goods. b. Routine response behavior is associated with high cost, high involvement goods. c. Consumers buy first and evaluate later. d. Consumers spend time deliberating a new brand in a familiar product category.
c
Which of the following would probably be easiest for a marketer to accomplish? a. Convincing Karl to have his eyes examined at a shopping mall optometrist rather than his usual optometrist b. Convincing Karla to try a different hair salon c. Convincing Frank to change the brand of razor blade he uses d. Convincing Liam to switch to a different financial advisor
c
________ segmentation groups its market into a series of stages determined by a combination of age, marital status, and the presence or absence of children. a. Psychographic b. Ethnic c. Family life cycle d. Gender
c
repositioning
changing consumers' perceptions of a brand in relation to competing brands
segmentation bases (variables)
characteristics of individuals, groups, or organizations
Teamwork
collaborative efforts of people to accomplish common objective
alliances succeed with?
commitment and trust or relationship commitment
"working backward" mentality -
companies must create a strategy from outside in by offering distinct and compelling customer value. This can be accomplished by carefully studying customers and using deep market insights to inform and guide companies outside-in view
Customer Relationship Management-
company wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups.
supplies
consumable items that dont become part of final product
one-to-one marketing has a goal of ?
cost reduction customer retention increased revenue customer loyalty
Learning
creates changes in behavior through experience and practice
What factors exert the broadest and and deepest influence on the decision making process?
cultural factors
Examples of Cultural Factors
culture & values subculture social class
subculture
culture divided on basis of demographic characteristics, regions, etc.
3. Marla circles a couple of ads in the classifieds section in the newspaper she was reading during breakfast. She then goes to work, leaving the paper on the kitchen table. Which of the following is true about this situation? a. Exchange has taken place, but no marketing. b. Neither marketing nor exchange has taken place. c. Marketing has taken place, followed by exchange. d. Exchange has not taken place, but marketing has.
d
A person's personality, self-concept, and gender are part of their ________ factors that influence buying decisions. a. social b. psychological c. cultural d. individual
d
A person's values are formed through: a. personal reflection. b. cultural adaptation. c. heredity. d. interaction with others.
d
In Starbucks, ________ will occur if it's new VIA line of instant coffee leads to reduced sales of its coffee beans. a. targeting b. focusing c. optimization d. cannibalization
d
In the context of business products, ________ are products used directly in manufacturing other products. a. raw materials b. supplies c. accessory equipment d. processed materials
d
Peter is looking to buy an HDTV but is confused about which one is the best. So he asks his friends who have recently purchased HDTVs for their opinions. In this case, Peter is using his ________ to evaluate various alternatives available to him. a. opinion leaders b. a marketing-controlled information source c. internal stimuli d. primary membership group
d
Which of the following is a difference between component parts and processed materials? a. Component parts are sold to the OEM market, while processed materials are not. b. Component parts are bought according to customer specifications, while processed materials are not. c. Component parts are modified before assembly, while processed materials are not. d. Component parts retain their identity in final products, while processed materials do not.
d
Which of the following is most likely to be true of extensive decision making? a. Consumers spend little time on search and decision before making a purchase. b. Consumers usually stick with one brand though they are familiar with alternatives. c. The information search is predominantly internal. d. The products purchased tend to be expensive and infrequently bought.
d
Which of the following is true of component parts marketed to original equipment manufacturers (OEMs)? a. Their availability has little effect on an OEM's ability to meet production deadlines. b. Their profits are poor due to the limited volume of buying. c. OEMs tend to behave like consumer markets when purchasing component parts. d. The difference between their unit costs and selling prices is small.
d
Which of the following is true of the African American market in the U.S.? a. Urban African Americans have an impersonal relationship with the radio. b. On average, they are considerably older than all consumers. c. The promotional dollars spent on African Americans is steeply declining. d. African Americans spend considerable time with the radio.
d
Which of the following is true of the baby boomer generation? a. They are unwilling to change brands or try new things. b. The oldest baby boomers were around 34 years old in 2013. c. They are a small market with minimal spending power. d. They control the majority of personal wealth in the U.S.
d
Which of the following is true of the replacement market for component parts? a. The customers frequently lease the component parts. b. Negotiations are common. c. Purchase volume is usually substantial. d. The customers are geographically dispersed.
d
________ is the inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions. a. Stimulus generalization b. Subliminal perception c. Self-actualization d. Cognitive dissonance
d
________ is the inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions. a. Self-actualization b. Stimulus generalization c. Subliminal perception d. Cognitive dissonance
d
derived demand:
demand for business products because they use these products in making their own
content marketing
developing valuable content for interested audience members e.g. newsletters, email, webinars, blog posts
gender
diff b/w men & women result in many diff needs
usage-rate segmentation
dividing a market by the amount of product bought or consumed
non traditional life cycle paths?
divorced people, lifelong singles, childless couples
Defaults of Ansoff matrix
doesnt reflect how businesses grow business plan growth in more fluid manner on capabilities rather than the clear-cut sectors outlined by the opportunity matrix
Example of empowerment:
e.g. Ritz carlton team meetings to discuss about company values and for them to take ownership in the company and establish their leadership.
External stimuli
e.g. recommendations from others for restaurants, etc.
Internal stimuli
e.g. stomach growling = hungry
example of positioning:
each car occupies a position in consumer's minds. cars can be positioned according to attribute (sporty, conservative, price)
business marketers have less customers but that means
easier to identify prospective buyers, monitor needs, etc. dis: every customer becomes crucial
Need recognition is trig erred when a consumer is exposed to?
either internal or external stimulus, which is any unit of input affecting one or more of the five senses
For an organization to be focused on building relationships with customers,.....?
employee's attitudes and actions must be customer oriented
Delegation of authority to employees is called
empowerment
customer satisfaction:
evaluation of a good or service has met their needs and expectations. e.g. Aetna making 24hr customer service rather than part time
One desired outcome of marketing is an?
exchange
indulgent dependency "amae"
exchange b/w firms based on personal relationships that are developed
business services
expense items that dont become part of final product
two types of learning:
experiential- when an experience changes your behavior conceptual- not through direct experience (through someone else(friend, etc.))
The societal marketing orientation ?
extends the marketing concept by acknowledging that some products that customers want may not really be in their best interest or the best interest of society as a whole.
Direct reference group (social factor)
face to face that touch people's lives directly
What did Blackberry fail to do?
failed to realize they were competing against computer companies as well as telecom companies and its wireless devices were eclipsed by samsung, google, and apple. Then they released its Blackberry 10 after a 5 yr decline.
new buy
first time
Reference groups (social factor)
formal/informal groups that influence buying behavior of an individual
usage rate
former, potential, 1st time, light or regular, medium, heavy
want-got gap
gap b/w want and desired states
Individual influences on buying decisions:
gender, personality, age & family
Dimensions for segmenting consumer markets:
geography demographics psychographics benefits usage rate
social class
group of people who are nearly equal in status or community esteem and share behavioral norms
what are segments?
groups of customers who have similar common needs and wants will respond similarly to a marketing action
SBU
has own resources for business functions may share facilities channels and managers with other SBUs
Firms that succeed in competitive markets must?
have a clear understanding to determine what customers want and then produce it rather than produce goods and hope thats what customers want.
self-concept
how consumers perceive themselves. not much change over time combines the ideal self image and real self image
by using the stickiness factor before and after change, we can see?
how valuable the change was to customers.
frequency data
identify frequent purchasers
inelastic demand
in regard to price. means of increase and decrease will not significantly effect demand
Diversification-
increasing sales by introducing new products
one to one marketing is?
individualized information-intensive long-term personalized
NAICS
industry classification system. more digits the more homogenous can be used to identify new customers
main diff b/w business and consumer goods
intended use is the main difference.
engagement-
interactions b/w brand and the audience
A production orientation falls short because?
it doesn't consider the needs of the marketplace, but sometimes what the firm produces is what the market wants.
A sales oriented firm often misses opportunities because?
it serves specific products rather than a wide range of product offerings.
What is the fundamental problem with a sales orientation?
lack of understanding of the needs and wants of the marketplace
opinion leader
leader of groups important to have them for consumers to purchase goods or services very influential
attitude
learned tendency to respond consistently toward a given object, such as a brand
stimulus discrimination (opposite of generalization)
learning to differentiate among similar products e.g. bud light vs miller light
Institutions
less profit driven. schools, hospitals, etc.
strategic alliances
licensing or distribution agreements joint ventures R&D consortia partnerships
B to B marketers
likely to use videos or highlight something valuable that competition does using social media to gather leads
Business products:
major eq acc eq raw mat comp parts proc mat supplies
producers
manufacturing, (CALLED OEMs) USE business goods to make their own business goods
market segmentation is a division of?
market into distinct groups of potential buyers who have similar needs and wants
undifferentiated
market is one big market and develop one marketing mix
Understanding your competitive arena and competitor's strengths and weaknesses is a critical component of a ?
market orientation
Ansoff Matrix:
market penetration (increase mkt share) market development (attracting new customers to existing products product development (creating new priducts for present customers)
Firms that adopt the marketing concept are ?
marketing oriented.
What is an example of societal marketing orientation?
marketing products and containers that are less toxic than normal, are more durable, contain reusable materials.
accessibility
members of targeted segments must be reachable with marketing mix
Generation Y is also called the?
millenials
Business marketing
mkt of goods and services to individuals and org. for purposes other than consumption
recency
most recent customers more likely to purchase next
keiretsu
network of interlocking corporate affiliates
selective distortion
occurs when consumers change or distort info that conflicts with their feelings or beliefs -if you buy sony comp and then macbook comes out. you argue that sony is better choice
niche
one segment of a market
belief
organized pattern of knowledge an individual holds as true -for a "brand image"
processed materials
partially completed. used directly in manufacturing process
socialization process
passing down cultural values and norms to children
selective exposure
people cant perceive EVERYTHING. they decide which stimuli to notice and which to ignore
market
people or organizations with needs or wants and the ability and willingness to buy
Ex. of Psychological Factors
perception motivation
Psychological influences on buying process:
perception, motivation, learning, beliefs and attitudes can be affected by a persons environment bc they are applied on specific occasions. e.g. if you are in class, playing sports, or outside of class.
consumer good-
personal/family consumption or as a gift
__________ is one of the least used concepts in study of consumer behavior.
personality
Psychographic segmentation
personality motives lifestyles geodemographics
psychographics
personality, motives, lifestyle, geodemographics
examples of direct membership groups:
primary- informal (text, FB, email) secondary- more formal (church groups, professional groups, etc)
4 major categories of business market
producers resellers governments institutions
A ____________ is a philosophy that focuses on the capabilities of the firm rather than on the desires and needs of the marketplace.
production orientation
A sales-oriented organization seeks to achieve?
profitability through sales volume and tries to convince potential customers to buy, even if the seller knows that the customer and product are mismatched.
loyal customers are more?
profitable
A want?
recognition of an unfulfilled need and a product that will satisfy it
geography
region, mkt size, market size and density, climate
what boosts learning?
reinforcement and repetition
product differentiation-
rely on promotion to point out brand diff e.g. bayer is recommended by doctors
selective retention
remembering only info that supports personal beliefs or feelings
A ___________ is based on the belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits.
sales orientation
In a _________________, sales to the final buyer are emphasized and intermediaries are also encouraged to push manufacturer's products more aggressively.
sales oriented firm
organization buyer characteristics:
satisfiers optimizers
sustainability
segment must be large enough to warrant a special marketing mix
demographic segmentation
segmenting markets by age, gender, income, ethnic background, and family life cycle
identifiability and measurability
segments must be identifiable and their size measurable
concentrated (niche) marketing strategy
select one segment for targeting marketing efforts
multi-segment marketing strategy
select two or more segments and develop distinct marketing mixes for each.
Whats the highest human need according to Maslows?
self-actualization
To sales oriented firms, marketing means?
selling things and collecting money
subliminal perception
sending advertising messages subconciously
conversion rate
set up by conversion task. ratio of # of people visited/# of people who went on to complete action.
age & family life cycle stage
significant impact on his or her behavior
Key characteristic of B2B
simple uncluttered bold colors, large text, etc.
multiplier effect
small increase or decrease in consumer demand can produce much larger change in demand for the facilities and equipment needed
Marketing managers want customers to recognize the want-got gap
so they can buy their shit duh
Cocreation:
some companies and products allow customers to help create their own experience. e.g. custom phone case websites
A market oriented firm targets:
specific groups e.g. different types of shampoos (children, adults, oily hair, dark hair)
relationship marketing
strategy that entails seeking and establishing ongoing partnership w/ customers
Relationship marketing-
strategy that focuses on keeping and improving relationships with current customers.
Language is also very important to culture which is what yields ________.
subcultures
In some situations, as when competition is weak or demand exceeds supply, a production orientation firm can?
survive and even prosper
What are the criteria for segmentation?
sustainability identifiability and measurability accessability responsiveness
Market oriented means?
that a sale doesn't depend on an aggressive sales force but rather on a customer's decision to purchase a product.
A market oriented firm defines its business in terms of?
the benefits its customers seek
threshold level of perception
the min difference in a stimulus that the customer will notice. (usually 20% DIFF is when people notice)
position
the place a product, brand, or group of products occupies in consumers' minds relative to competing offerings
customer value
the relationship between benefits and the sacrifice necessary to obtain those benefits
The marketing concept is?
the social and economic justification for an organization's existence is the satisfaction of customers wants and needs while meeting organizational objectives.
Sales oriented companies find that despite the quality of their workforce?
they cannot convince people to buy goods or services that are neither wanted or needed.
How do customers value goods and services?
they value goods and services that are of quality they expect and that are sold at prices they are willing to pay
why strategic alliances?
to strengthen ops and better compete
members of keiretsu engage in?
trade with each other whenever possible in joint product development, etc.
awareness, engagement and conversions affect ROI
true
Target marketing strategies:
undifferentiated concentrated multi-segment
responsiveness
unless segment responds to a markekting mix differently, no separate treatment is needed
B2B ecommerce
use of internet to facilitate activities b/w organizations RAPID GROWTH
B to C marketers
use of social media is IMPORTANT!
common goods
used both for consumer and business purposes e.g. office supplies
Beliefs and attitudes closely linked to?
values
what is the definition of culture?
values, norms, attitudes that shape human behavior
straight rebuy
vendors prefer!! mass selling. quick and convenient
modified rebuy
want change in original good
conversions-
when action taken
stimulus generalization
when one response is extended to a second stimulus similar to first e.g. dove shampoo with dove bar soap
Resellers
wholesalers (walmart, macys, etc.)
whats the goal of positioning?
with the goal of developing a specific marketing mix to influence potential customers' overall perception of the brand, product line, or organization in general. CANT BE EVERYTHING TO EVERYONE!!
component parts
work in process- REPLACEMENT MARKET
The model you use for the strategic opportunity matrix depends on?
your goal