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