MKT 300 Exam 2 Eaton
Fluctuating demand
Demand that fluctuates sharply in response to a change in consumer demand
Marketing plan
a written document that acts as a guidebook of marketing activities for the marketing manager
Your marketing department ic currently researching age, race, and household structures of your target market. Which environment is being researched? a. sociocultural forces b. technological c. economic d. legal
a. sociocultural forces
evoked set model
first options that come to mind, good or bad
Behavior segmentation
focus on whether people purchase a product or not, how much, and how often they use it
Subculture
groups of individuals whose characteristic values and behaviors are similar, but also differ, from those of the surrounding culture
Monitoring competition
helps determine competitor strategies and their effects on firm's own strategies; guides development of competitive advantage and adjusting firm's strategy; provides ongoing info about competitors; assists in maintaining a market orientation
Reverse acculturation
home society impacted by other culture example: authentic lebanese restaurant opening in your phoenix neighborhood, you visiting this restaurant exposes you to new things without visiting a new area
In the consumer decision-making process, our preferred or desired state is best described as:
ideal state
Acculturation
learning a new/foreign culture; Theory of Reasoned action example example: moving to a place that doesn't speak your first language
Licensing
legally allow manufacturing/patents/knowledge to be used for a fee example: franchising (chicfila or subway)
Brand competitors
market products with similar features and benefits to the same customers at similar prices example: ASU vs UofA; head to head competitors
Change message, same product
message adaptation example: KitKat
Methods for environment scanning
observation, secondary sources, market research
same product, same message
one product, one message example: lays
Social responsibility
organization's obligation to maximize its positive impact and minimize its negative impact on society
Reactive approach
passive view of environment as uncontrollable; current strategy is cautiously adjusted to accommodate environmental changes
Expectation and willingness to spend
prices, general economic conditions, family size, income levels, future employment
Contract manufacturing
private label manufacturing by a foreign company example: Nike enters agreement with foreign company to put logos on 1000 shirts, but then sells them to Nike and Nike sells them to consumers
Environmental analysis
process of assessing and interpreting information gathered through environmental scanning
Environment scanning
process of collecting information about forces in the marketing environment
Same message, change product
product adaptation example: mcdonalds
global marketing standardization
production of uniform products that can be sold the same way all over the world
Modified rebuy
a situation in which the purchaser wants some change in the original good or service
Niche targeting strategy
A concentrated strategy of focusing on a narrow market is sometimes more profitable than spreading resources over several different segments Example: Nike starting off making shoes for track athletes only, then exploding into something larger
Perceptual mapping
A means of displaying or graphing, in tow or more dimensions, the location of products, brands, or groups of products in customers' minds
Differentiated targeting startegy
A strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each
Corporate Social Responsibility pyramid
1. Philanthropic Responsibilities: be a good citizen 2. Ethical Responsibilities: do what is right 3. Legal Responsibilities: obey the law 4. Economic Responsibilities: be profitable
Global Marketing
Access to new markets, access foreign investment, overcome trade barriers, enhance brand image, offset domestic cycles, access lower costs, gain scale economics
Process of Positioning
Act of designing the company's offering and image to occupy a distinctive place in the mind of the target market
Direct investment
Active ownership of a foreign company/manufacturing facility
Forecasting
Anticipated outcome if marketing objectives are met; trend analysis
Porter's 5 forces
Bargaining power of suppliers, Bargaining power of customers, Threat of substitute products, Threat of new entrants , (Competitive rivalry within an industry)
Need recognition
Buyer becomes aware of a difference between a preferred state and the present condition; Buyer learns something must be done to achieve the desired state Present state is actual state Preferred state is the ideal state
Marketing situation
Contains assessment of customers, competitors, product portfolio, distribution channels, marketing environment
A good marketing plan will
Explain both the present and future situations of the organization, Specify the outcomes that are expected, Describe the specific actions that are to take place, Identify the resources that will be needed, Permit the monitoring of each action and its results
Government markets
Federal, state, county, or local governments that buy goods and services to support their internal operations and provide products to their constituencies
Positioning statement
For [Target Market], the [Brand] is the [Point of Differentiation] among all [Frame of Reference] because [Reason to Believe] ; The point of differentiation (POD) describes how your brand or product benefits customers in ways that set you apart from your competitors; The frame of reference is the segment or category in which your company competes; The reason to believe is a statement providing compelling evidence and reasons why customers in your target market can have confidence in your differentiation claims
Evaluation of alternatives
How the consumer processes information to arrive at brand choices
Measurement and control
How to monitor progress toward meeting objectives? - Financial factors - Non-financial factors
Company description, purpose, and goals
Includes historical information on business and products, and the company's core competencies and reason for existence
Undifferentiated targeting strategy
Marketing approach that views the market as on big market with no individual segments and thus requires a single marketing mix
Micro targeting startegy
One-to-one marketing which is individualized, information intensive, with a long-term perspective and a goal of increasing customer loyalty example: Redbull (now adapted to a differentiated strategy)
Change message, change. product
Product invention example: Foster's beer
4Ps of Marketing
Product, Price, Place, Promotion
Economic cycle
Prosperity → Recession → Depression → Recovery
Responses to environmental forces
Reactive and Proactive approach
Culture
The accumulation of values, knowledge, beliefs, customs, objects, and concepts of a society
Value proposition
The brand's full mix of benefits on which a brand is differentiated and positioned; Answer the question of "Why should I buy your brand"; Value is a relationship between price and quality
Multiplier effect
a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product
cause related marketing
The practice of linking products to a particular social cause on an ongoing or short-term basis
Targeting
The process of evaluating the various segments and then selecting the most viable segment(s) who share a similar set of needs and wants
Green marketing
The specific development, pricing, promotion, and distribution of products that do not harm the natural environment
Executive summary
a brief overview of the entire marketing plan; written with senior leadership as primary audience
multinational corporation
a company that is heavily engaged in international trade, beyond exporting and importing
New task
a purchase decision that requires thorough research such as a new product
Straight rebuy
a situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers
Mass marketers such as Target and Walmart often ignore market segment differences and target the whole market with one offer. What is this approach to targeting? a. undifferentiated b. differentiated c. niche targeting d. micromarketing
a. undifferentiated
postconventional morality
actions reflect belief in basic rights and self-defined ethical principles
Proactive approach
actively attempts to shape and influence environment; strategies constructed to overcome market challenges and take advantage of opportunities
Demographics
age, occupation, gender, income, ethnicity, geography, family life cycle
Sociocultural Factors (trends that affect marketers)
aging population, more people living alone, entering another baby boom, increase in multiculturalism, health concerns and values, environmental values, family make up and values, marital/parental status, income and education, age, gender, race, and ethnicity
consideration set
alternatives that are considered acceptable for further consideration in decision making
I am considering buying a new sports car like a Ford Mustang. Another sports car that would not likely compete head-to-head like the Audi R8, which is at a significantly higher price point, best represents which type of competition? a. brand competition b. industry competition c. generic competition d. form competition
b. industry competition
Which of the following is the process of dividing a market into meaning and distinct customer groups? a. targeting b. segmenting c. positioning d. competitive advantage
b. segmenting
Segmenting allows marketers to
better define customer needs (competitive advantage)
Reseller markets
buy finished goods and resell them for a profit
The ______ environment consists of factors that. affect. consumer purchase ability and buying behavior. a. political b. technological c. economic d. legal
c. economic
The self-sustaining nature of technology is the _______ for even faster ________.
catalyst, development
Institutional markets
charitable or educational community mission example: churches and universities
Generic competitiors
compete for the limited financial resources of the same customers; anything one can spend money on example: take family to disneyland vs renovate the house (based on disposable income)
Industry competitors
compete in the same product class, but. their products have different features, benefits, and prices example: Taco bell vs authentic mexican restaurant
Aspects of the marketing environment
competitive forces, legal forces, technological forces, sociocultural forces, political forces, economic forces
From our Value Proposition positioning statements, this element is best defined as the "segment or category in which your company competes": a. point of differentiation b. reason to believe c. brand d. frame of reference
d. frame of reference
In a SWOT analysis which would be considered a strength? a. internal limitations b. trends in the market c. factors that challenge the company's performance d. internal resources
d. internal resources
A drug company that makes pain relief medication with an advertising slogan, "Targeted Relief for Pain," is using which type of segmentation strategy that directly focuses on a specific consumer problem? a. demographics b. psychographics c. behavioral d. needs
d. needs
Derived demand
demand for component pieces of overall product; demand for industrial products that stems from demand for consumer products
Inelastic demand
demand in which changes in price have little or no effect on the amount demanded
By understanding variance in customer needs, we can:
develop offerings that are higher value to each segment than an undifferentiated offer; charge more for providing higher value products and services; achieve higher sales volume overall by better meeting the needs of each segment
Segmenting
divide market based on needs/benefits, demographics, lifestyles, and behavior measures
Impact of technology
dynamic means constant change; reach refers to how quickly technology moves through society
Form competitors
provide very different products that solve the same problem or satisfy the same basic customer needs example: (entertainment) going out to dinner vs going to a movie (transportation) walking vs taking the light rail vs biking vs skateboarding vs driving
Producer markets
purchase products to make profits by using them to make other products or using them in their operations
Political forces (The reactive and proactive response)
reactive: makes adjustments to business practices as laws are passed proactive: have campaign contributions, political action committees, and lobby elected officials to find what's best for your. company based on current politics
Targeting
select most appropriate market(s)
preconventional morality
self-interest; obey rules to avoid punishment or gain concrete rewards
awareness set
set of alternatives of which a consumer is aware/already knows of
Marketing environment
set of forces, some controllable and some uncontrollable, that influence the ability of a business to create value and attract and serve customers
Positioning
target marketing messages through 4P's
Technology
the application of knowledge and tools to solve problems and perform tasks
Joint demand
the demand for two or more items used together in a final product example: PB&J, Ketchup & Mustard, Chips and Salsa, Milk and cereal
Needs segmentation
the process of grouping customers into market segments according to the benefits they seek from the product example: toothepaste
Enculturation
the process of learning your own culture
Information search
the stage of the buyer decision process in which the consumer is motivated to search for more information
Consumer behavior
the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires
Targeting strategies
undifferentiated, differentiated, niche, micro
conventional morality
uphold laws and rules to gain social approval or maintain social order
Psychographics
values, lifestyle, personality, activities, interests, opinions
Marketing strategy
what actions should be taken to meet objectives
Joint venture
when a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity