BMGT 350 Exam 1 Review

Describe the process for analyzing the current business portfolio

1) Identify key businesses (strategic business units, or SBUs) that make up the company 2) assess the attractiveness of its various SBUs 3) decide how much support each SBU deserves

What are the Marketing Management Orientations in historical order?

1) Production concept 2) Product concept 3) Selling concept 4) Marketing concept 5) Societal concept

What are the steps to the Marketing Process?

1) Understand the marketplace and customer needs and wants 2) Design a customer value-driven marketing strategy 3) Construct an integrated marketing program that delivers superior value 4) engage customers, build profitable relationships, and create customer delight 5) Capture value from customers in return

What are the components of a mission statement?

1) Vision 2) Statement of core values, acts, and behaviors for employees at all levels 3) Statement of the goals and objectives (long-term)

What are the steps in the economic cycle?

1) boom (a period when the rate of growth of real GDP is fast and higher than its long-term trend) 2) slowdown (a weakening of the rate of growth, real GDP is still rising but increasing at a slower rate) 3) recession (a period of at least six months when an economy suffers a fall in output. Or a broadly-based contraction in output, employment, investment and confidence) 4) recovery (a phase of the cycle, after a recession or depression, during which real GDP starts to increase and unemployment begins to fall) 5) depression (a prolonged downturn in the economy and where a nation's GDP falls by at least 10%)

What are the types of customer markets?

1) consumer market 2) business market 3) reseller market 4) government markets 5) international markets

What are the factors that influence consumer behavior?

1) cultural 2) social 3) personal 4) psychological

Define the steps in strategic planning

1) define the company mission 2) set company objectives and goals (CORPORATE LEVEL) 3) design the business portfolio 4) planning, marketing and other functional strategies (BUSINESS UNIT, PRODUCT, AND MARKET LEVEL)

How do marketers obtain information?

1) internal data 2) marketing intelligence 3) marketing research

What are the 4 "factors" in the BCG Growth Share Matrix?

1) question mark (the introduction in the product life cycle stage) 2) stars (high growth and they still require heavy investment because there is rapid growth; products are still in the growth stage) 3) cash cows (low growth, high-share SBUs, and they're established. They require less investment) 4) dogs (low growth, low-share; they may generate enough profit to maintain themselves, but there's not a lot of promise; don't want to give them a lot of cash)

What are the 3 things that encompass the marketing environment?

1) scanning (When a marketer pays attention and or researches the micro or macro environment. It's much easier to do in the micro environment because it's daily. Scanning consists of reading, listening, and paying attention) 2) analysis (Beginning to realize that there is a trend and a substance to a phenomenon, and you need to decide how you're going to respond) 3) action (There's 2 types of responses to the market environment: the reactive approach and the proactive approach)

What are the steps to the buyer decision process?

1. Need recognition 2. Information search 3. Evaluation of alternatives 4. Purchase decision 5. Post-purchase behavior

What are focus groups?

6 to 10 people (sweet spot is 8); trained moderator

Most standard portfolio analysis methods evaluate strategic business units​ (SBUs) on their performance in two important dimensions. What are these two​ dimensions?

The attractiveness of the​ SBU's market or industry and the strength of the​ SBU's position in that market or industry

What is the business portfolio?

The collection of businesses and products that make up the company

Which of the following is NOT true regarding international marketing​ research?

The cost of international research is lower.

Which marketing management orientation holds that a firm should have a customer focus to achieve sales and​ profits?

The marketing concept

​__________ consists of people and procedures dedicated to assessing information​ needs, developing the needed​ information, and helping decision makers use the information to generate and validate actionable customer and market insights.

The marketing information system

describe the political environment of a company's macroenvironment

The political environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society. Governments develop public policy to guide commerce—sets of laws and regulations that limit business for the good of society as a whole

What is strategic planning?

The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities

What is portfolio analysis?

The process where management evaluates the products and businesses that make up the company

Generally, the​ consumer's purchase decision will be to buy the most preferred​ brand, but two factors can come between the purchase intention and the purchase decision. These two factors are​ ________

attitudes of others and unexpected situational factors

The cultural environment consists of​ ________ that affect a​ society's values,​ perceptions, preferences, and behaviors.

institutions and forces

The​ customer-driven company divides the total market into smaller​ segments, selects segments it can best​ serve, and decides how it wants to bring value to target consumers in the selected segments. It then designs​ a(n) ________.

integrated marketing mix

​________ is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.

customer relationship management

To analyze individual customer​ data, many companies have now acquired or developed special software and analysis techniques called​ ________.

customer relationship management​ (CRM)

What are the key building blocks for developing and managing customer relationships?

customer value and customer satisfaction

​________ companies research customers deeply to learn about their​ desires, gather new product​ ideas, and test product improvements.

customer-driven

Two major public policy and ethical issues in marketing research are​ ________.

intrusions on consumer privacy and misuse of research findings

What is observational research?

involves gathering primary data by observing relevant people, actions, and situations

What is ethnographic research?

involves sending trained observers to watch and interact with consumers in their natural environment. Very popular in multinational companies; you live as your respondents (your research subjects) do

One important consideration in using a differentiated targeting strategy is that​ _______.

it can increase costs

Legislation affecting business around the world has increased steadily over the years within the political environment. The increased legislation has been enacted in three primary​ areas, including​ ________, ______________, and​ _______________.

laws protecting companies from each other, laws protecting consumers, and laws protecting the interests of society

Which of the following statements regarding the business market is​ correct?

many sets of business purchases are made for one set of consumer purchases

Business markets differ in many ways from consumer markets. The main differences are in​ ________, __________, and​ __________.

market structure and​ demand, the nature of the buying​ unit, and the types of decisions and the decision process

Marketing plays a key role in the​ company's strategic planning by providing a​ ________ concept philosophy and inputs regarding attractive market opportunities.

marketing

the purchase decision can be affected by:

marketing factors and perceived risk (5 main areas): Financial risk (price), temporal risk, psychological risk, social risk, physiological risk

​Today's marketers face growing pressures to show that they are adding value in line with their costs. In​ response, marketers are developing better measures of​ ________.

marketing return on investment

There are too many different kinds of consumers with too many different kinds of needs.​ So, companies must design strategies for profitably serving chosen segments. The design of the strategies begins with four key​ elements, which are​ ________, _______,​ ________, and​ ___________.

market​ segmentation, market​ targeting, differentiation, and positioning

The​ company's ________ consists of actors close to the company that combine to form its value delivery network or that affect its ability to serve customers.

microenvironment

Which major trend is ideal for engaging customers​ anytime, anywhere, as they move through the buying​ process?

mobile marketing

what makes up psychological influences?

motivation perception learning beliefs and attitudes

Describe the natural factor in a company's macroenvironment

natural resources that are needed as inputs by marketers or that are affected by marketing activities

What is disposable income?

net income that is devoted to basic needs. The government defines the basic needs, which are food, basic clothing, and shelter

Which of the following correctly identifies the three research approaches for gathering primary​ data?

observation, surveys, and experiments

Another strategy for creating value and building strong customer relationships includes​ ________, which means working closely with others inside and outside the company to jointly engage and bring more value to customers.

partner relationship management

What are Maslow's hierarchy of needs?

physiological, safety, love/belonging, esteem, self-actualization

Once a company has decided which segments to​ enter, it must decide on its​ ________ strategy.

positioning and differentiation

What is a parody product?

A product category where there is not a lot of differentiation (ex: water)

What is the reactive approach

A response to the market environment. There is a slow time response to change in the market environment. You believe there is time to react. Passive view of the environment as uncontrollable. The reactive approach for many small businesses is a more natural fit for when they're looking at the macro level because they don't have the resources to address some of the stuff that's going on. Strategies are adjusted to accommodate environmental force change

What is the proactive approach?

A response to the market environment. There is rapid response to a change in the market environment. Actively attempts to shape and influence the market environment. Strategies are built to overcome adverse environmental change and create opportunity. This is often where we come into contact with the political, legal, and regulatory forces

The key to learn about and engage with individual customers is to blend the new digital technologies and approaches with traditional marketing to create​ _______________________.

A smoothly integrated marketing strategy and mix

What is a segmentation variable?

A specific dimension that describes a market place group. A segmentation variable could be demographic, geographic, psychographic, or behavioral

The marketing process consists of five distinct​ steps, with four of them focused on creating value for customers. One strategy for creating value for customers is​________, which fosters direct and continuous customer involvement in shaping brand​ conversations, brand​ experiences, and brand community.

customer-engagement marketing

The first four steps of the marketing process focus on creating value for customers. The next step is designing a​ ________.

customer​ value-driven marketing strategy

The step in the strategic planning process that should be​ market-oriented, realistic,​ specific, motivating, and consistent with the market environment is ​________.

defining the company's mission

What is descriptive research?

describing market characteristics

Survey research is the most widely used method and is best for _________________

descriptive information, which is knowledge, attitudes, preferences, and buying behavior

The definition of the​ company's mission is the first step in the strategic planning process. The mission is then transformed into​ ________, which in turn guide decisions about​ ________.

detailed supporting goals and objectives; the business portfolio

What is casual research?

determining cause and effect relationships

Market segmentation is the act of dividing a market into distinct groups of buyers who have​ ________ and who might require separate marketing strategies or mixes

different​ needs, characteristics, or behaviors

Advances in​ ________ are forces that offer exciting new opportunities to target customers more selectively and engage them more deeply.

digital and social media

What is exploratory research?

discovery of ideas and insights

Technology advances have made​ B-to-B online purchasing possible. This is called​ ________.

e-procurement

What is the difference between comparative advertising and competitive advertising?

Competitive advertising is done often, but comparative advertising is more impactful in terms of behavior

What is experimental research?

Conducted to find cause and effect relationships in business, how actions now will affect future; laboratory and field experiments

Describe the economic factor within the macroenvironment of a company

Consists of factors that affect consumer purchasing power and spending patterns. There are two key incomes: Disposable and Discretionary

What is the Federal entity that regulates marketers the most?

Consumer Product Safety Commission

Describe the product concept

Consumers favor products that offer the most quality, performance, and features; Focus in on continuous product improvements

Describe the selling concept

Consumers will not buy enough of the firm's products unless it undertakes a large scale, and sometimes aggressive selling and promotion efforts; Focus is on the transaction not on building long-term customer relationships

What makes up cultural influences?

Culture Subculture Social class (this is called a tri faceted variable. The 3 main facets are education, occupation, and income)

What is the correct sequence of the four steps of the marketing research​ process?

Define the problem and research​ objectives, develop the research​ plan, implement the research​ plan, interpret and report the findings

What do market-oriented mission statements do?

Defines the business in terms of satisfying basic customer needs

What is the first step in the marketing research process?

Defining the problem and research objectives

What are the 4 basis of market segmentation?

Demographic segmentation, geographic segmentation, psychographic segmentation, behavioral segmentation

What is the desired state?

Desired state is a product category or a specific brand (marketers want it to be a specific brand)

What is a brand's value proposition?

The set of beliefs or values a company promises to deliver to customers to satisfy their needs. Companies must design strong value propositions that give them the greatest advantage in their target market. It is also the full mix of benefits upon which a brand os positioned Should answer the question: why should I buy this product?

What is internal data?

Internal databases are electronic collections of consumer and market information obtained from data sources within the company network

describe the information search of the buyer decision process

Internal vs External: Done through long-term memory (internal) Personal sources - family and friends (external) Commercial sources - advertising, internet (external) Public sources - mass media, consumer organizations (external) Experiential sources - handling, examining, using the product (external) Specialty goods are almost solely external

What are the three general sources from which marketers can obtain​ information?

Internal​ data, marketing​ intelligence, and marketing research

In which step of the buying decision process is the final order with the chosen supplier​ developed?

Order-routine specification

Describe indirect competitors

Out of category competitors. This can cause us issues because when we go to speak about it in our promotions to try to differentiate, it's difficult because you're talking about "apples vs oranges"

What is the marketing mix?

The set of controllable tactical marketing tools - product, price, place, promotion - that the firm blends to produce the response it wants in the target market

What makes up the demographic environment within the macroenvironment?

The study of human populations - size, density, location, age, gender, race, occupation, and other statistics. The demographic environment involves people, and people make up markets

What is marketing intelligence?

The systematic collection and analysis of publicly available information about consumers, competitors and developments in the marketplace You're assessing and tracking opportunities and threats

What is marketing research?

The systemic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization

Describe direct competitors

They are typically in our product category. They share the same features and groups of consumers. They're similar to us in many ways

What is the goal of marketing?

To attract new customers by promising superior value and to keep and grow current customers by delivering value and satisfaction

What is the marketing manager's aim?

To engage, keep, and grow target customers by creating, delivering, and communicating superior customer value (what customers will we serve? how can we best serve these customers? which marketing management orientation will you choose to focus on?)

What is the key to engagement marketing?

To find ways to enter targeted consumers' conversations with engaging and relevant brand messages

What are the 2 approaches to managing the Market Mix?

Traditional approach and Modern approach

The first step of the marketing process is to​ ___________________.

Understand the marketplace, which includes customer needs and wants

What do marketing information systems (MIS) consist of and for what?

People and procedures for: assessing marketing information needs; developing needed information; helping decision makers use the information for customers

Describe universal sets and evoked sets

Universal - all the brands you know in a product category Evoked set - the brands that are in universal, but you purchase these ones more often

What are changes in consumer spending called?

Value marketing. We can address economic disparity through value marketing

To design a winning marketing​ strategy, what are the two important questions a marketing manager must​ answer?

What customers will we serve? How can we serve these customers best?

What advice would you give a firm about how to respond to the changing marketing​ environment?

Whenever​ possible, take a proactive approach to the environment.

What is a specialty product?

Where a consumer will not accept a substitute; high level of risk for the consumer

Is a target market more expensive than a market segment?

Yes. The amount of time developing a target market compared to a market segment makes the target market more expensive

What is a market segment?

a group of consumers within a particular marketplace (it's just a group of people)

what is product development?

a growth strategy that offers new or modified products to existing market segments

what is diversification?

a growth strategy through starting up or acquiring businesses outside the company's current products and markets

What is customer satisfaction?

a key to building profitable relationships with consumers - to keeping and growing consumers and reaping their customer lifetime value

What is market segmentation?

a process that requires dividing a market into smaller segments with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes

When effective programs can be designed for attracting and serving market​ segments, these segments are​ ________.

actionable

We define the​ ________ process as the mental process through which an individual passes from first learning about an innovation to final adoption.

adoption

What is discretionary income?

after tax income - disposable income; it's what is left over for wants

Eventually, the collection of product benefits, features and offered experiences create the ________________ for the brand

Positioning statement

what makes up personal influences?

age and life cycle stages occupation economic situation lifestyle personality and self-concept

what is the consumer market?

all of the personal consumption of final customers

Describe the technological environment of a company's macroenvironment

Powerful force in changing the marketplace; new products and opportunities; concern for the safety of new products

Of all the marketing concepts, which one should be touched last?

Price because of the psychology of how consumers look at pricing

What are the eight steps in the business buying decision​ process, in the correct​ sequence?

Problem​ recognition, general need​ description, product​ specification, supplier​ search, proposal​ solicitation, supplier​ selection, order-routine​ specification, and performance review

As covered in lecture​ one, all of the following are areas that marketers manage​ except:

Production

Which of the following represent market​ offerings?

Products, services, information, and experiences

​Today's marketers see information not only as a tool for input for better​ decision-making, but also as​ ___________________________.

an important strategic asset and marketing tool

A SWOT is a part of which marketing management​ function?

analysis (A SWOT analysis is an analysis that evaluates the​ company's overall strengths​ (S), weaknesses​ (W), opportunities​ (O), and threats​ (T))

Many companies see the marketing environment as uncontrollable. They​ ________ that will help the company avoid the threats and take advantage of the opportunities the environment provides.

analyze environmental forces and design strategies

The two steps in business portfolio planning are​ ________ and​ ________.

analyzing the current business​ portfolio; developing strategies for growth and downsizing

describe the marketing table

REFERENCE NOTES

What do marketing metrics consist of?

ROI, customer churn (occurs when customers or subscribers stop doing business with a company or service), customer retention rate (brand loyalty), ROAS (return on advertising speed), social media attention metric

What are the constraints when evaluating market segments?

Segment size and growth (this is something you hear on Shark Tank a lot); Segment structural attractiveness (how many competitors are there in the market?); Authority, Need/Want, Ability, Willingness; Company objectives and resources

A company rarely gets 100 percent of a​ customer's purchases for a product category. The share it does get of the​ customer's purchasing in its product categories is called​ ________.

Share of customer

Good customer relationship management can help marketers increase their ________________

Share of customer (which is the share they get of the customer's purchasing in their product categories)

The focus of which of the following processes not only sets the stage for planning in the​ firm, but also represents the maintenance and development of the​ organization's goals and capabilities and its changing marketing​ opportunities?

Strategic planning

_____________________________ compose a​ company's external value delivery network

Suppliers, distributors, and customers

What is AI (Artificial Intelligence)?

Technology by which machines think and learn in a way that resembles humans

What does marketing encompass?

The 4 P's (the market mix; pricing, place/distribution, promotion, product)

What is marketing management?

The art and science of choosing target markets and building profitable relationships with them

Describe the post-purchase decision stage of the buyer decision process (which is the most ignored stage by marketers)

postpurchase can be physical or psychological; it's the satisfaction or dissatisfied that the consumer feels about the purchase; it's the relationship between consumer's expectations and the product's perceived performance

Software and analytical techniques that​ integrate, analyze, and apply the mountains of individual customer data to gain a​ 360-degree view of customers enable companies to​ ________________________.

practice customer relationship management

Companies need meaningful customer insights so they can​ _____________________________.

produce superior value for their customers

What do MIS's do?

provides information to the company's marketing and other managers and external partners such as suppliers, resellers, and marketing service agencies

What makes up social influences?

reference groups family (which is the strongest influencer and depends on the product category) roles and status (user, influencer, purchaser)

What are the five characteristics that are especially important in influencing an​ innovation's rate of​ adoption?

relative advantage, complexity, compatibility, divisibility, and communicability

What does market segmentation consist of?

segmentation (dividing the total market into smaller segments), targeting (selecting the segment or segments to enter), differentiation (differentiate the market offering to create superior customer value), positioning (position the market offering in the minds of target customers)

What are some demographic trends?

shifts in age, family structure, educational characteristics, and population diversity

Larger​ ________ that affect the entire microenvironment combine to form the macroenvironment.

societal forces

Partners in a value chain would typically​ include:

suppliers, distributors, and customers

Once segments have been​ identified, market​ ________ evaluates each​ segment's attractiveness and selects one or more to serve.

targeting

What is the concentrated marketing strategy?

targets a small share of a large market; limited company resources occur here, and this strategy is often where we begin as entrepreneurs. In the introduction and growth stage of the product life cycle, this is where we use this strategy; knowledge of the market; more effective and efficient

What is the differentiated marketing approach?

targets several different market segments and designs separate market mixes for each; Goal is to achieve higher sales and stronger category position; More expensive than undifferentiated marketing (not in the long run, however); More expensive than undifferentiated marketing (not in the long run, however)

According to the​ text, __________ are perhaps the most dramatic forces affecting​ today's marketing strategies.

technological

Define exchange

the act of obtaining a desired object from someone offering something in return. Marketing actions try to create, maintain, grow exchange relationships. They basically try to grow the exchange

What are marketing analytics?

the analysis tools, technologies, and processes by which marketers dig out meaningful patterns (TRENDS) in big data to gain customer insights and gauge marketing performance (data, AI)

What is the consumer buying behavior?

the buying behavior of final consumers, individuals and households, who buys products for personal consumption

2/3 of the GDP comes from _____________

the consumer marketplace

Describe the need recognition stage of the buyer decision process

the consumer recognizes a need or problem; actual state vs desired state

Describe the traditional approach

the focus is on the product only; the objective is to maximize profit; short-term approach; promotions are sparse and/or spike; customer retention view is transactional (customers view you as only trying to make the sale)

Marketing provides a guiding philosophy for a​ company's strategic planning. This​ philosophy, known as​ __________, focuses on creating customer value and building profitable relationships with important consumer groups.

the marketing concept

What is a shopping product?

Often bought once or twice a year (often seasonally)

What is the undifferentiated target marketing approach?

A firm decides to ignore market differences and pursue the whole market with one offer. Includes mass marketing, focuses on the common needs rather than what's different, works well if the marketplace is homogeneous (there are foreign markets with homogeneous) The undifferentiated approach is not popular in the US

What is the actual state?

Actual state is where a consumer recognizes a need or a want, and consumption is going to be the answer

What are the five marketing management functions used to manage the marketing​ process?

Analysis, planning,​ implementation, organization, and control

How old is marketing?

As old as when people formed tribes

What are the five stages of the consumer adoption​ process, in the correct​ sequence?

Awareness, interest,​ evaluation, trial, and adoption

What does greater consumer empowerment mean?

Companies can no longer rely on marketing by intrusion. Instead, they must practice marketing by attraction—creating market offerings and messages that engage consumers rather than interrupt them

Which of the following enhances how marketers learn about and interact with​ customers?

Big data and marketing analytics

Is there a gap between expectations and evaluations?

Cognitive dissonance (aka buyer's remorse) comes from that gap and is the discomfort caused by post-purchase conflict

Describe the difference between determinant choices vs salient choices

Determinant attributes are ones that determine the purchase; they're the features that are used to determine purchase; YOU WON'T SACRIFICE THESE ATTRIBUTES Salient attributes are ones that we begin the search and purchasing of the product category with; they are attributes that narrow down the product category choices to a few; YOU WILL SACRIFICE THESE ATTRIBUTES

​______________________ is part of a​ company's decision on how it will create market offerings to deliver superior customer value.

Differentiation (involves actually differentiating the​ firm's market offering to create superior customer value)

In addition to segmentation and​ targeting, there are two other major steps in designing a customer​ value-driven market​ strategy: ________ seeks to create superior customer value in the mind of the​ consumer, and​ ________ seeks to firmly place the market offering in the minds of target customers

Differentiation; positioning

What is psychographic segmentation?

Divides buyers into different groups based on Lifestyle (AIO → activities, interests, and opinions), Personality traits, Motivation, Attitude, Perception, Values, Learning

What is behavioral segmentation?

Divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product. Occasions/situation use, benefits sought, user rate, usage status, loyalty status (has core consumers, primary market segments, and secondary market segments)

What is geographic segmentation?

Divides the market into different geographical units such as nations, regions, states, counties or cities. More examples include: Population density, Region, Climate, Seasonality, Terrain (the type of geography), Natural Resource, Mobility (how long a person has been at an address; if a person changes addresses yearly, then they are mobile)

What is demographic segmentation?

Divides the market into groups based on variables such as age, gender, family size, family life cycle (ex: age, marital status, children present, age of the children), income, occupation, education, religion, race, generation, and nationality/ethnicity. For marketers, the demographic base is derived from the US census

Describe survey research

Flexible People can be unable or unwilling to answer Gives misleading or pleasing answers Privacy concerns Cost effective Fast as compared to other research methods

Describe the evaluation of alternatives stage for the buyer decision process

How the consumer processes the information to arrive at a final brand choice

What are the trends of the natural environment?

Increased shortages of raw materials; Increased pollution; Volatility in commodity markets; Increased environmentally sustainable strategies

Which of the following correctly defines the consumer​ market?

Individuals and households that buy goods and services for personal consumption

Marketers need to understand and know the answers to several key questions when dealing with buying centers. Of the​ following, which is NOT one of those key​questions?

Is price a major factor or is the buying center price​ sensitive?

What is a convenience product?

It has a low level of involvement. Low level meaning low complexity, low risk, and a routine product we buy in our lives

What do marketing intermediaries help with?

It helps the company promote, sell, and distribute its products to final buyers

Describe the marketing concept

Knowing the needs and wants of the target markets and delivering the desired satisfaction better than competitors do; Focus: Consumer-driven, NOT product-driven

What are the most economical variable within psychographic segmentation?

Lifestyle and attitude

Describe the societal concept

Make good marketing decisions by considering: consumers' wants and long-term interests, company's requirements, society's long-run interests

What is customer relationship management?

Managing detailed information about individual customers and carefully managing customer touch points to maximize customer loyalty

​________ is the process of dividing a market into distinct groups of buyers who have different​ needs, characteristics, or​ behaviors, and who might require separate marketing strategies or mixes.

Marget segmentation

Fairly​ recently, Starbucks began expanding into China. At one​ point, Starbucks was opening a new store in China every 15 hours. Which​ product/market expansion strategy does this​ represent?

Market development

Define marketing

Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return

To find the best strategy and mix and to put them into​ action, the company engages in five​ activities, including which of the​ following?

Marketing​ analysis, planning,​ implementation, organization, and control

One useful device for identifying growth opportunities is the​ product/market expansion​ grid, which includes which of the following​ strategies?

Market​ penetration, market​ development, product​ development, and diversification

The​ product/market expansion grid is a tool that allows marketers to identify growth opportunities. Of the​ following, which represent the four components of the​product/market expansion​ grid?

Market​ penetration, market​ development, product​ development, and diversification

What are the four major steps in designing a customer​ value-driven marketing​ strategy, in the correct​ sequence?

Market​ segmentation, market​ targeting, differentiation, and positioning

Which of the following correctly identifies the five core customer and marketplace​ concepts?

Needs, wants, and​ demands; market​ offerings; value and​ satisfaction; exchanges and​ relationships; and markets

Customer needs, wants, and demands

Needs: states of deprivation (physical, social, and individual) Wants: forms that needs take as they are shaped by culture and individual personality Demands: wants backed by buying power

What are examples of marketing research methods?

Observational research, ethnographic research, and focus groups

When does the need recognition stage begin?

Occurs when the buyer recognizes a problem or need triggered by: (1) internal stimuli, (2) external stimuli, (3) problem recognition within an ad, (4) discovery within an ad, (5), "before vs after" states in ads

Huge and complex data sets generated by​ today's sophisticated information​ generation, collection,​ storage, and analysis technologies are referred to as​ _______.

big data

The​ ________ market comprises all organizations that buy goods and services for use in the production of other products and services or for the purpose of reselling or renting them to others at a profit.

business

The best​ ________ is the one that best fits the​ company's strengths and weaknesses to opportunities in the environment.

business portfolio

Describe business markets

buy goods and services for further processing or use in their production processes

Describe reseller markets

buy goods and services to resell at a profit

Marketers keep a close eye on demographic trends and developments in their markets. They analyze​ ________.

changing age and family​ structures, geographic population​ shifts, educational​ characteristics, and population diversity

In the broadest​ sense, a new product marketer must research​ _____________________ when developing a new product and a marketing program.

characteristics influencing the rate of adoption

What can strategic business units (SBUs) be?

company division, product line within a division, or a single product or brand (functional, divisional, geographic, structural)

To target the best market​ segments, the company first evaluates various factors related to market attractiveness. Of the​ following, which is NOT one of those​ factors?

compatibility with company mission and vision

In which targeting strategy does a firm go after a large share of one or a few smaller​ segments?

concentrated marketing

Describe government markets

consist of government agencies that buy goods and services to produce public services or transfer the goods and services to others who need them

Describe consumer markets

consist of individuals and households that buy goods and services for personal consumption

Describe international markets

consist of these buyers in other countries, including consumers, producers, resellers, and governments

The economic environment impacts marketing decisions. The economic environment consists of two primary economic factors that affect​ __________________.

consumer purchasing power and spending patterns

What are the advantages of secondary data?

cost, speed, and could not get data otherwise

What are the disadvantages of secondary data?

current, relevant, accuracy, impartial

The ultimate aim of customer relationship management is to produce high​ _____.

customer equity

Understanding​ needs, wants, and demands helps companies to design market offerings and build​ value-laden customer relationships through which they can capture​____________________________.

customer lifetime value and greater share of customer

In recent​ years, today's marketers are also reexamining their​ ________ responsibilities.

ethical and societal

What are the challenges for focus groups?

expensive, difficult to generalize from small groups, consumers not always open and honest

There are several types of objectives market researchers might use in a marketing research project. Which of the following are the primary types of​ objectives?

exploratory, descriptive, and casual research

What does value marketing offer?

financially cautious buyers grater value - the right combination of quality and service at a fair price

Describe the modern approach

focus is on consumer wants and demands; objective is customer satisfaction; long-term approach (relationships with customers is key); promotions are sustained; customer retention builds RM

Describe the macroenvironment

forces that we can try to shape but we can't control. It consists of the larger societal forces that affect the microenvironment - demographic, economic, natural, technologic, political and cultural forces

The mission is transformed into detailed supporting goals and​ objectives, which in turn guide decisions about the business portfolio. Then each business and product unit must develop detailed​ ________ plans in line with the​ company-wide plan.

functional

Environmental sustainability concerns have grown steadily over the past three decades. Marketers should be aware of three primary trends in the natural​ environment, which include​ ________, ________________, and​ ________________.

growing shortages of raw​ materials, increased​ pollution, and increased government intervention in natural resource management

what is market development?

growth by identifying and developing new market segments for current products. This is developing new targets (aka developing your "campus presence", or your college presence)

what is market penetration?

growth by increasing sales to current market segments without changing the product

What are the 3 steps in the differentiation and positioning task?

identifying a set of differentiating competitive advantages on which to build a​ position, choosing the right competitive​ advantages, and selecting an overall positioning strategy

Marketers are viewing information not only as an input for making better​ decisions, but also as​ a(n) ______________.

important strategic asset and marketing tool

What is the marketing environment?

includes the actors and forces outside the marketing mix (4 P's) that affect marketing management's ability to build and maintain successful relationships with customers

Major economic variables include​ ________.

income, cost of​ living, and savings and borrowing patterns

The second step in the buyer decision process might include seeking more information. Sources of information vary. Commercial sources normally​ ________ the​ buyer, but personal sources​ ________ products for the buyer

inform; legitimatize or evaluate

Describe the microenvironment

the more internal forces that a company can shape. It consists of the actors close to the company that affect its ability to serve its customers, the company, suppliers, marketing intermediaries, customer markets, competitors, and publics (Micro = the company, suppliers, marketing intermediaries, customer markets, competitors, and publics)

What is marketing myopia?

the narrow view and approach to a marketing situation where the focus is on short term goals or where the marketing focuses on only one aspect out of many possible marketing aspects. It's the mistake of paying attention to the specific products a company offers than to the benefits and experiences produced by those products

The natural environment involves​ __________________ that are needed as inputs by marketers or that are affected by marketing activities.

the physical environment and natural resources

What is micromarketing?

the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations; Micromarketing is the result of technology and big data; local marketing; individual marketing

What is product position?

the way the product is defined by consumers on important attributes - the place the product occupies in consumers' minds relative to competing products. Product position is made up of 3 components: 1) perceptions 2) impressions 3) attitude

A simple model of consumer behavior suggests that marketing stimuli and other major forces enter the​ consumer's "black​ box." This black box has two​ parts: ________ and​ ________.

the​ buyer's characteristics and the​ buyer's decision process

Describe the purchase decision stage of the buyer decision process

this is where exchange occurs; The act by the consumer to buy the most preferred brand (exchange factors)

As part of​ marketing's role, the department works closely with partners in other departments to form an effective internal​ ________ and with other companies in the marketing system to create an external value delivery network that jointly serves customers.

value chain

Marketing must also partner effectively with other companies in the marketing system to form a competitively superior​ ________.

value delivery network

The full positioning of a brand is called the​ brand's ________, which is the full mix of benefits on which a brand is differentiated and positioned.

value proposition

What is a target market?

when a marketer takes a market segment and develops a specific market mix (a specific collection of the "four p's"and tailors it to the needs of that market segment)

The third step in the marketing research process calls for implementing the marketing research plan by​ ________.

​gathering, processing, and analyzing the information