BUAD 307-MIDTERM

Distinguish between ethics and corporate social responsibility

Corporate Social Responsibility: - entails voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders Marketing Ethics: - examines those ethical problems that are specific to the domain of marketing Socially Responsible/Ethical: - both ethical and socially responsible Socially Responsible/Unethical: - questionable firm practices, yet donates a lot to the community Socially Irresponsible/Ethical: - ethical firm not involved with the larger community Socially Irresponsible/Unethical: - neither ethical nor socially responsible

Describe the elements of a marketing plan (emphasis on slightly different version shared in class)

- Analysis: Mission and Situation Analysis (SWOT) - Planning: Objectives, Strategize - Segmentation, Targeting, Positioning (STP) - Implementation: Tactical Implementation - Product, Price, Promotion, Place - Control: Evaluation & Follow-up

Describe the ways corporate social responsibility programs help various stakeholders

- CSR programs appeal to their own employees, customers, the marketplace, and society at large Employees: - ensure safe working environment (physical safety, healthy) Customers: - respecting and protecting privacy in an electronic world - ensure healthiness of products Marketplace: - when one firm in the industry leads the way toward CSR, others follow and adapt to more responsible practices themselves - address issues like global warming, water scarcity, energy Society: - firms expend considerable time and energy engaging in activities aimed at improving the overall community and the physical environment b/c society expects them to

Distinguish between the benefits and challenges of segmenting a market

- Concentrate marketing resources on potential buyers you have the best chance to win - Too many small segments will lead to confusion. A segment that is too large will diminish a competitive advantage.

Outline how customers, the company, competitors, and corporate partners affect marketing strategy

- Consumers: the center of the marketing strategy and everything is viewed from their point of view Factors that affect consumers' immediate environment - Company: focus on satisfying customer needs that match their core competencies - Competitors: critical that marketers understand their firm's competitors (SWOT) - Corporate Partners: parties that work with firm; create a single, efficient manufacturing system

Describe 4 basic strategies for developing a sustainable competitive advantage

- Customer excellence: retain loyal customers with excellent customer service - Operational excellence: efficient operations and excellent supply chain/human resource management - Product Excellence: products with high perceived value/effective branding & positioning - Locational Excellence: good physical location/internet presence

Describe the different types of organizational cultures

Autocratic - multiple participants, but one person makes the buying decision alone. Democratic - Majority rules in making the buying decision Consultative - One person makes a decision, but solicits input from others beforehand Consensus - all members of the team must reach a collective agreement that they can support a particular purchase

Identify the roles within the buying center

Buying center is the group of people responsible for making buying decisions in large organizations. Initiator: - person who first suggests buying the particular product or service. Influencer: - the person whose views influence other members of the buying center in making the final decision Decider: - The person who ultimately determines any part of or the entire buying decision. Buyer: - person who handles paperwork of purchase User: - person who consumes product Gatekeeper: - person who controls information and access to decision makers and influencers.

Discuss post-purchase outcomes

Customer Satisfaction: - build realistic expectations - demonstrate correct product use - encourage customer feedback Postpurchase Cognitive Dissonance - internal conflict that arises from an inconsistency b/w 2 beliefs or b/w beliefs and behavior - likely for products that are expensive, infrequently purchased, do not work as intended, high level of risk Customer Loyalty: - marketers want to solidify a loyal relationship with their customers and be satisfied with their purchase

Why is customer satisfaction important to marketers?

Customer satisfaction leads to customer loyalty, which in turn leads to lifetime value of customer

Describe the components of a country market assessment

Economic Analysis: - need to look at general economic environment (GDP, trade deficit, etc), market size, population growth rate, and real income Infrastructure and Technological Analysis: - infrastructure = basic facilities, services, and installations needed for a community or society to function - concerned with transportation, distribution channels, communications, and commerce Government Actions or Inactions: - influence ability to sell goods and services b/c result in laws/regulations that promote growth of global market or close off country and inhibit growth. - look at tariffs, quotas, exchange controls, and trade agreements Sociocultural Analysis: - look at visible artifacts (behavior, dress, symbols) and underlying values (thought processes, beliefs, and assumptions) - look at Hofstede 5 dimensions

Describe the differences between functional and psychological needs

Functional needs: - Pertain to the performance of a product or service Psychological needs: - Pertain to the personal gratification consumers associate with a product or service

Outline the different ways of segmenting (labeling) markets

- Geographic: market is divided into geographic units based on physical proximity. Segment categories include regions, county size, city size, population density, and climate - Demographic: divides market by tangible variables such as age, gender, family size, income, occupation, education, religion, nationality, and race - psychographic: relates to how people think, feel, and behave. Characteristics include social class, lifestyle, opinions, and personality characteristics - behavioral: divides market based on consumer's uses, knowledge, or attitudes toward product. Describes how consumer interacts with the product. - Benefit: based on attributes customers are seeking from a particular product class. What do customers want from a product? Why will customers care about the product?

Distinguish among types of loyalty...heart, head, hand.

- Heart loyalty = emotional attachment to a brand (ex. Apple person) - Head loyalty = strong connection with brand because of how it delivers (ex. like a shampoo b/c works best with your hair) - Hand loyalty = products you buy out of habit (ex. brand you've used since you were a kid)

Describe how involvement influences the consumer decision process

- Involvement is the consumer's degree of interest in the product or service - high involvement refers to purchasing something that requires a lot of investment from the buyer such as a car. the buyer has to research, compare, test drive, bargain, and decide with others over a car to buy. low emphasis on price - low involvement requires little investment such as buying paper towels. impressions are more superficial and processes ads in a less thorough manner

Examine the circumstances in which collecting information on consumers is ethical

- Prohibits selling or fundraising under the guise of conducting research - Supports maintaining research integrity by avoiding misrepresentation of the omission of pertinent research data - Encourages the fair treatment of clients and suppliers - Should only be used to produce unbiased, factual information - Spying on consumers - Security breaches with banks and credit cards - Confidentiality - Legally required to disclose their privacy practices to customers on an annual basis - Social media and facial recognition aren't really regulated - Biometric data, iris scans and fingerprints

Describe how a firm chooses which consumer group(s) to pursue with its marketing efforts

- Segmentation: divides market into groups of customers with different needs, wants, or characteristics (market segmentation) (ex. single people want fun cars -> Corvette, families was minivan -> Ford Explorer) - Targeting: after firm identifies various market segments to pursue, evaluates each segment's attractiveness and decides which to pursue using target marketing (ex. primary appeal for Minivan is young families, so direct marketing efforts toward that group) -Positioning: when firm decides which segments to pursue, it must determine how it wants to be positioned within those segments; market positioning involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products

Identify different characteristics of strong objective

- Select target markets - Find points of difference - Developing product positioning strategy - Set product objectives (should be quantifiable and attached to a timeline) - more measurable the objective is, the stronger the objective

What is the role of an SBU?

- Strategic Business Unit - Defined as a part of the firm that can be managed separately for marketing purposes - almost like a free standing business within a business Characteristics: - serves an external market - has customers and competitors that are distinct from other SBUs within the company - strategically autonomous from other SBUs - does not need to own its own dedicated resources

In what ways are business markets different from consumer markets?

- The business to business market is made up of businesses selling to other businesses - Distinguishing characteristics: market size, buying power, geographic concentration, demand influences, buying process.

Understand different criteria for identifying a competitor

- a competitor is anyone who competes for customers, resources, revenues, and/or future opportunities with you (ex. Apple vs Nintendo for hand-held game market and Cisco vs. HP for video conferencing market)

Understand why marketing is important, both within and outside the firm

- advises production about how much of the company's product to make and then tells logistics when to ship it - creates long-lasting, mutually valuable relationships between the company and the firms from which it buys - identifies those elements that local customers value and makes it possible for the firm to expand globally - difficult for consumers to learn about new products or services without marketing

Analyze a marketing situation using SWOT analysis

- assesses both the internal environment with regard to its Strengths and Weaknesses and the external environment in terms of its Opportunities and Threats

What is a market-oriented approach? What are its limitations?

- business model that focuses on delivering products designed according to customer desires, needs, and requirements; tailor products to meet demands of customers LIMITATIONS: -development of truly breakthrough products can be difficult -market opportunities can pass during the over analysis of customer needs

Explain common reasons marketing collaborations are often sought

- co-marketing alliances (ex. J Crew sells Ray-Ban, Timex watch, etc) - product development alliances - global distribution alliances (ex. KFC and Mitsubishi alliance)

Factors to consider in a basic customer lifetime value calculation

- cost to acquire - gross profit - retention rate - cost to retain costumer - maybe discount factor

Describe the various secondary data sources

- inexpensive external (quickly accessed, low cost), syndicated external (available for a fee from commercial research), internal (day-to-day operations)

Explain why marketers consider their macro-environment when they make marketing decisions

- macroenvironmental factors = external environment - culture influence consumers and what, why, how, where, and when they buy - need to look at country, region, and demographics

Summarize portfolio analysis and its use to evaluate market performance

- management evaluates the firm's various products and businesses and allocates resources according to which products are expected to be the most profitable for the firm in the future BCG method: -2x2 matrix with market growth rate on y axis and relative market share on x axis - stars = high growth/high market share, require heavy resource investment to fuel rapid growth; as growth slows, will become cash cow - ? = high growth/low market share, managerially intensive, require significant resources to maintain/increase market share; future star - cash cow = low growth/high market share, already deceived heavy investment, excess resources - dog = low growth/low market share, not destined for stardom and will be phased out, generate enough resources to sustain themselves

Describe how firms grow their businesses

- market penetration strategy = employs the existing marketing mix and focuses the firm's efforts on existing customers - market development strategy = employs the existing marketing offering to reach new market segments, whether domestic or international - product development = offers a new product or service to a firms current target market - diversification strategy = introduces a new product of service to a market segment that currently is not served

Describe the various primary data collection techniques

- observation, social media, in-depth interviews, focus group interviews, survey research, questionnaire, panel and scanner-based, experimental research - Time costly and expensive, but can provide key market insights

How has marketing evolved through different business eras?

- production-oriented - sales-oriented - market-oriented - value-based

Describe how marketer create value for a product or service

- share information about their customers and competitors across their own organization - strive to balance their customers' benefits and costs - concentrate on building relationships with customers - take advantage of new technologies and connect with their customers by using social and mobile media

Describe reasons firms are attracted to international markets

- sizable new markets are available - potential sources of raw materials - product innovations discovered abroad can be adapted for use in home market - competitive skills can be developed abroad before competitors enter home market - opportunities exist for production and distribution economies of scale

what is a perceptual map and how is it used?

- test where unmet customer needs potentially exist - identify where competitors might be vulnerable - gain insights into how an under-performing product might be repositioned

Define positioning, how positioning is used by marketers, and who ultimately determines a product's position in the market

- using the marketing mix to influence how your product is perceived in relation to competing products in the mind of the customer - help communicate the firm's or the product's value proposition, the unique value that a product or service provides to its customers, and how it is better than and different from those of competitors - use value, product attributes most important to target, well-known symbol, against a specific competitor - customer determines position

List the factors that affect the consumer decision process

-Psychological -Social - Marketing Mix (4Ps)

Identify the various market entry strategies

-vary according to level of risk the firm is willing to take Exporting: - producing goods in one country and selling them in another - least financial risk, allows for only a limited return to the exporting firm Franchising: - contractual agreement b/w a firm, the franchisor, and another firm or individual, franchisee - allows franchisee to operate a business using the name and business format developed and supported by the franchisor Strategic Alliance: - refer to collaborative relationships b/w independent firms, though the partnering firms do not create and equity partnership Joint Venture: - formed when a firm entering a market pools its resources with those of a local firm - ownership, control, and profits are shared Direct Investment: - requires a firm to maintain 100% ownership of its plants, operation facilities, and offices in a foreign country, often through the formation of wholly owned subsidiaries

Identify 5 steps in the marketing research process

1. Defining the objectives and research needs 2. Designing the research 3. Data collection process 4. Analyzing data and developing insights 5. Action plan and implementation

Identify the 4 steps in ethical decision making

1. Identify Issues 2. Gather information and identify stakeholders 3. Brainstorm Alternatives 4. Choose a course of action

List the steps in the B2B buying process

1. Need Recognition: The business organization recognizes an unfilled need through internal or external sources. Such as a school wanting to introduce computer tablets to help build literacy. 2. Product Specification: Lists potential specification that vendors might use to develop their proposals. Such as the battery life, screen size, pre-loaded educational apps, and security specifications the school might want with each computer tablet. 3. RFP Process: Request for Proposals is a common process where the organization invites vendors to big on supplying their requested product. School invites various tablet suppliers and tech companies to bid on the contract. 4. Proposal Analysis, Vendor Negotiation, and Selection: Organization evaluates the proposals attained from the RFP with appropriate parties, and narrows the suppliers down to a handful that they meet and negotiate with. For the school the parents committee, president, tech genius, and head faculty may review the proposals and choose one or two suppliers to negotiate with. 5. Order Specification: Firm places order with its preferred. Order includes detailed description of the goods, prices, delivery dates, and penalties for noncompliance. School agrees to go with Apple, and has them start producing the tablets. 6. Vendor Performance Assessment Using Metrics: Firms analyze their vendors' performance so they can make decisions about their future purchases. the analysis is formal and objective.

Marketing Mix

4 P's - Product (service) - Place - Price - Promotion

Scanner data

used in quantitative research obtained from scanner readings of UPC labels at check-out counters

Distinguish among derived demand, fluctuating demand and inelastic demand

Derived Demand: - demand for a business product often tied to B2C demand Fluctuating Demand: - anticipations of changes in consumer demand creates large changes in industrial demand Inelastic Demand: - price increase has minor impact on product's final cost - part or material does not have a substitute

Describe the differences among the various generational cohorts

Generation Z (2000 - Now): - digital natives b/c born into a world full of electronic gadgets/digital technology - more globally connected Generation Y (1977 - 2000): - Millennials; varies most in age - balances work/life; marriage is secondary - younger edge of group never lived without technology (tech savvy) Generation X (1965 - 1976): - first generation of latchkey children (both parents worked); half have divorced parents -helicopter parents (shield kids from disappointed) - spending power: getting married later in life; not interested in shopping - developed shopping savvy at early age; more knowledgable about products and risk averse Baby Boomers (1946 - 1964): - individualistic, leisure time represents a high priority - believe that they will always be able to take care of themselves (a little careless) - obsession with maintaining their youth - love rock n roll

Identify various social trends that affect marketing

Greater emphasis on: - thrift - health and wellness - greener consumers - privacy concerns - time-poor societies

Distinguish among the different marketing macro-environment and micro-environment elements

Macro-Environment: - large external forces that impact an organization's decisions - management has very little control - competitive, technology, resource, legal/political, social cultural, economic, demographic, physical Micro-Environment: - forces close to a company that have ongoing influence on how a company serves its customers - management has some control - owners, employees, suppliers, channel intermediaries, collaborators

Describe ways in which B2B firms segment their markets

Manufactures and Service Providers - Manufactures buy parts and raw materials Resellers - Marketing intermediaries that resell manufactured products without significantly altering their form - Wholesalers and distributors buy Xerox products and sell them to retailers Institutions - Hospitals, educational organizations and religious organizations purchased all kinds of goods and services Government - In most countries, the central government is one of the largest purchasers of goods and services

Calculate market share and market penetration

Market Share: - unit share = product unit sales/market unit sales - demand share = product demand in # customers/market demand in # customers - dollar share = product dollar sales/market dollar sales Market penetration: - market penetration index = market demand/# consumers in potential market - product penetration index = product demand/# consumers in target market

Distinguish between a "market-driven" and a "market-driving" approach.

Market-driven: - classic marketing approach - "give customer what they want" - matches well with markets containing products with high buyer familiarity - assumes buyers evaluate choices based on fixed value concepts Market-driving - alternative marketing approach - "help customers learn what they want" - matches well with rapidly evolving markets with growing number of novel products - assumes buyers can learn and evolve with new value concepts

Define the role of marketing in organizations

Marketing is an organizational function and set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. Adds value by: - identifying what customers want - determining competitively advantageous positions for offerings in the marketplace - implementing the marketing mix needed to attract customers and communicate value to them

When considering an ethical decision, distinguish among moral, manipulative and deceptive ethical influences. identify how redemptive knowledge and redemptive value relate to decisions

Moral: - seller is given full and legitimate reasons to buy; ethically acceptable Manipulative: - intentionally/knowingly impacting a buyer's decision making ability based on insecurities or weaknesses - redemptive value: marketer plays on target customer soft spot, but product does what its supposed to do and customer is happy - less likely to be ethically problematic Deceptive: - Information misrepresented? Information omitted? Lie? - redemptive knowledge

Articulate the steps in the consumer buying process

Need Recognition: - occurs when consumers recognize they have an unsatisfied need and want to go from their actual, needy state to a different, desired state Functional Needs: - pertain to the performance of a product or service Psychological Needs: - pertain to the personal gratification consumers associate with a product and/or service

Detail different buying situations

New buys - costumer purchases good or service for the first time. buying decision is quite involved because buying organization does not have experience with the item Modified rebuy - the buyer has purchased a similar product in the past but wants to change some specifications such as price, quality, customer service options, ect. Straight buys - Buyer buys additional units of products that had preivously been purchased

NAICS

North American Industry Classification System - Sector - Subsector - Industry Group - Industry - Industry Subdivision

Describe how ethics can be integrated into a firm's marketing strategy

Planning Phase: - include ethical statements in the firm's mission or vision Implementation Phase: - when firms are identifying potential markets and ways to deliver the 4Ps to them, firms must consider several ethical issues Control Phase: - managers must be evaluated on their actions from an ethical perspective - systems must be in place to check whether each potentially ethical issue raised in the planning process was actually successfully addressed - systems must react to change

What is the significance of points-of-parity & points-of difference in planning

Points of Parity: - The aspects of the product offering that are largely similar to the offerings of like competitors Points of Difference: - The aspects of the product offering that are relatively distinct to the offerings of like competitors Significance: - want the brand/product to be consider equal/similar with the major offerings in the category for the key attributes (POP), but the brand/product also needs to have a number of unique or differentiated attributes (POD)

Describe ways for measuring customer satisfaction

Post-Experience - satisfaction scales - customer feed-back, especially complaints - intent to refer - price sensitivity Pre-Experience - mystery shops - involve customers in business decision making - listen to frontline personnel

Distinguish among Hofstede's five important cultural dimensions

Power distance: - willingness to accept social inequality as natural (powerful members of society accept unequal distribution of power) Uncertainty avoidance: - the extent to which the society relies on orderliness, consistency, structure, and formalized procedures to address situations that arise in daily life (tolerance for uncertainty) Individualism: - perceived obligation to and dependence on groups (live their lives socially) Masculinity: - the extent to which dominant values are male oriented. a lower masculinity ranking indicates that men and women are treated equally in all aspects of society; a higher masculinity ranking suggests that men dominate in positions of power (tough vs nurturing culture) Time orientation: - short versus long-term orientation. a country that tends to have a long-term orientation values long-term commitments and is willing to accept a longer time horizon for, say the success of a new product introduction (tied to taditions)

Distinguish between probability and non-probability samples

Probability samples: - Complete sampling frame - You can select a random sample from your population - Can generalize results - Can be more expensive and time consuming Non-Probability samples: - Used when there isn't an exhaustive population list available - Not random - Can be effective when trying to generate ideas and getting feedback - More convenient and less costly

What is the difference between a product benefit and a product feature?

Product Benefit - Focus is on the customer. Benefits are represented by the "job" being done. Product Feature: - Focus is on the product. Features are represented by product characteristics or properties.

Distinguish between qualitative and quantitative research

Qualitative research: - open ended questions that are used to understand a phenomenon - Surveying buyers' intentions - composite of sales force estimates - executive expert opinion - industry expert opinion Quantitative research: - structured responses that can be statistically tested - linear trend analysis - market tests - statistical demand analysis - modeling

Summarize the differences between secondary data and primary data

Secondary: - saves time in collecting data, readily available - free or inexpensive (except for syndicated) - may not be relevant - may not be timely - may not be original, therefore useless - may be biased Primary: - specific to the immediate data needs and topic at hand - offers behavioral insights generally not available from secondary research - costly - time consuming - requires more sophisticated training and experience to design study and collect data

STP

Segmenting, Targeting, Positioning

For which type of research purposes are surveys, experiments and focus groups best suited?

Surveys: - descriptive - Quantitive research, systematic means of collecting info from people that generally uses a questionnaire. Unstructured questions: open-ended questions that allow respondents to answer in their own words. Structured questions: Closed-ended questions for which a discrete set of response alternatives, or specific answers, is provided for respondents to evaluate. Experiments: - casual - A type of conclusive and quantitative research that systematically manipulates one or more variable to determine which variables have a causal affect on another variable Focus Groups: - exploratory - Use focus groups to gain insights into the following: -How consumers feel -Why certain opinions are held -Plan and design of further research -Plan and design of marketing mix elements -To project information onto a population -To gain accurate information about individuals -Don't use focus groups for the following: -To project information onto a population -To gain accurate information about individuals -Focus Group Criticisms: -Participants will remain guarded when discussing sensitive topics before others. -Groups can yield false positives - proposals may make sense and generate positive reaction, but not work in the market. -Organizing and conducting focus groups require time and money.

Identify most significant US trading partners

US Exports: - Canada - Mexico - China - UK - Japan US Imports: - China - Canada - Mexico - Japan - Germany

Articulate the differences among undifferentiated, differentiated, concentrated, and micro-marketing approaches

Undifferentiated: - a firm sees similarities in all consumers and targets each segment the same way Differentiated: - each market segment is targeted differently by a firm Concentrated: - only one market segment is targeted by a firm Micro-marketing: - each individual customer is marketed too differently by a firm

VALS

Value and Lifestyle Survey - consumers can be classified into 8 segments based on answers to questionnaire

Distinguish between WTO and GATT

World Trade Organizations: - intergovernmental organization which regulates international trade General Agreement on Tariffs and Trade: - multilateral agreement regulating international trade

Data-mining

a statistical analysis of pre existing data that uncovers patterns and relationships

Determine the value proposition

communicates the customer benefits to be received from a product or service and thereby provides reasons for wanting to purchase it

Syndicated data

data available for a fee from research firms

Define a marketing strategy

identifies: - a firm's target market(s) - a related marketing mix (4 P's) - the bases on which the firm plans to build a sustainable competitive advantage (an advantage over the competition that is not easily copied and thus can be maintained over a long period of time)

Panel Data

information collected from a group of consumers, organized into panels, over time

Describe how firms determine whether a segment is attractive and worth pursuing

is the segment: - identifiable: who is within their market, segments are distinct - substantial: measure their size - reachable: know the product exists, understand what it can do for him/her, recognize how to buy it - responsive: react similarly and positively to the firm's offering - profitable: focus assessments of potential profitability of each segment, current and future

Data Warehouses

large computer files that store millions of pieces of individual data

Value Chain

the series of value-adding activities, linked together, to produce goods and services to satisfy client needs