Intro To Marketing Quiz 1
What is the publicity test as it relates to ethical behavior?
"Would I want to see this in the media"
What are three things that a company can do to increase customer loyalty?
-Building a long-term relationship -Discount cards/ Loyalty cards -Consistent employee contact -Special hours/coupons for loyal customers -Build positive word of mouth (WOM)
What is the definition of marketing?
-VALUE :is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. entails processes that focus on delivering value and benefits to customers, not just selling goods and services.
List and discuss the four main generational cohorts we discussed in class. What are characteristics of each? (matching)
: a group of people of the same generation have similar purchase behaviors because they have shared experiences and are in the same stages of life. Seniors:Tech averse, Made in the USA, blue-chip brand names, high quality, convenience, some internet use, fear of online security; Two broad categories: retired and loving it; retired and barely getting by Baby Boomers:Individualistic, self-reliant, obsession with maintaining their youth; "Don't trust anyone over 30", rebellious - Woodstock, Vietnam, JFK; Spending patterns shifting away from luxury items; Lack of savings - working well beyond retirement age, reverse mortgages, becoming caregivers Generation X:"Unlike most previous generations, they are unlikely to enjoy greater economic prosperity than their parents."; Population less than boomers and Gen Y, but possess spending power:Delaying marriage, delaying purchase of first home; Cynical, demand convenience Generation y:digital natives, video games, affinity for brands (the book is rather sparse on this generation; Purchasing power = $108 Billion; World's teens have similar tastes, attitudes, preferences; Brand loyalty—develops at a younger age (as young as 3-5 years old); Positioning—establish identity, rebelling, peer acceptance (social psychology, self-concept, ideal state); Advertising messages—Incorporates symbols, issues, and language of teens;Media—specific TV networks, radio stations, and Internet; Rise of social media, always connected; Multitasking experts; Recreation and special events
What are some examples of regional culture?
:includes behavior, dress, symbols, physical settings, ceremonies, languages, food preferences, advertising Examples: Soda vs. Pop Pizza vs. Pie Hero vs. Hoagie vs. Grinder vs. Sub ATM vs. Cash Station Sneakers vs. Gym Shoes vs. Tennis Shoes
What is an example of a B2B marketinterm-42g transaction? A B2C marketing transaction?
B2B: Business-to-business- B2C: Business-to-consumer- C2C: Consumer-to-consumer- Examples include Nintendo selling video games to Walmart (B2B), Walmart selling Nintendo games to consumers (B2C), and consumers selling Nintendo games to other customers through eBay (C2C).
Define cognitive dissonance. Provide an example of cognitive dissonance.
Cognitive dissonance: an uncomfortable state produced by an inconsistency between beliefs and behaviors that in turn evokes a motivation to reduce the dissonance; a.k.a. buyers' remorse Examples: Giving to charity, Extended warranty at the register, Taking office supplies, Dealing with salespeople
Define and provide an example of compensatory decision rules and non-compensatory decision rules. (Fill in)
Compensatory decision rules: the consumer trades off one characteristic against another - good characteristics compensate for bad characteristics Noncompensatory decision rules: selecting a product or service on the basis of one characteristic or one subset of characteristics, regardless of the values of other attributes; If a product/service lacks a certain characteristic, it is removed from the decision set
Define culture and discuss how culture plays a role in marketing activities.
Culture:the shared meanings, beliefs, morals, values, and customs of a group of people. ◦Passed down from generation to generation ◦Family ◦School ◦Town/city/state/region Role: ◦Risk tolerances ◦Sales ◦Likes/dislikes ◦Products unique to certain regions (e.g. skiing, snowmobiling, sailing, golf)
What does the acronym CRM stand for? How is it useful?
Customer Relationship Management (CRM) ◦Database used to gather and track customer data points ◦Reports used to find customers who... ◦Salesforce.com, Sage Software
Define and provide an example of decision heuristics.
Decision heuristics: mental shortcuts that help a consumer narrow down choices Examples: Price, Brand, Product Presentation
Define and provide examples of demographics.
Demographics: the characteristics of human populations and segments, especially those used to identify consumer markets. -Age, gender, race, income, education, location
List, define, and provide an example of the 4 E's of social media.
Excite: Offer must be relevant to its targeted customer; Relevancy can be achieved by providing personalized offers. Experience: Provide information about a firm's goods and services; Simulating real experiences Engage: Action, loyalty, and commitment; Positively engaged consumers lead to more profitability; Positively engaged consumers tend to be more profitable consumers, purchasing 20 to 40 percent more than less engaged customers; Engagement can also backfire Educate: Sell the product's value proposition and offered benefits. Engage short answer
Define and describe the exchange that occurs when sellers and buyers meet.
Exhange: At least two parties Each party has something of value (to the other party) Each party can communicate and deliver value Each party is free to accept or reject the exchange offer Each party wants to deal with the other party Conditions for exchange: Exchange may not take place even if conditions are met An agreement must be reached Marketing occurs even if exchange does not take place
How can family and reference groups influence consumer behavior?
Family: purchase decisions made about products and services that the entire family will consume or use ◦Homes ◦Automobiles ◦Food ◦Vacations Reference Groups: people/groups that a person uses as a basis of comparison ◦In-group vs. out-group
Define the following terms related to analyzing social media data: hits, bounce rate, click paths, conversion rates, evergreen content.
Hits: total requests for a page Page Views: the number of times any pages get viewed by any visitor Bounce Rate: the % of times a visitor leaves the site almost immediately Click Paths: shows how users proceed through the information Conversion Rates: what % of visitors or potential customers acts - e.g., buying, clicking, donating Keyword Analysis: used to determine what keywords people use to search on the Internet for products and services SEO: search engine optimization Evergreen Content: content that is always relevant (e.g., lists)
What is an example of impulse buying? Habitual decision making?
Impulse buying: on the spot decisions Habitual decision making: requires little conscious effort, routine
Describe the processes that a consumer goes through when conducting an internal search for information and an external search for information.
Internal search for information: the buyer examines their own memory and knowledge about the product or service, gathered through past experiences; past experiences (good and bad) External search for information: the buyer seeks information outside their personal knowledge base to help make the buying decisions; internet, Consumer Reports, friends and family Internal locus of control: people believe they have some control over the outcomes of their actions; generally engage in more search activities External locus of control: consumers believe it doesn't matter how much information they gather - attach no credit to good outcomes nor place any blame on bad outcomes
List and define the four growth strategies we discussed in class.
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. Product development strategy: offering a new product or service to a firm's current target market. Diversification strategy: a firm introduces a new product or service to a market segment that it does not currently serve.
Define segmentation, targeting, and positioning.
Market segment: consumers who respond similarly to a firm's marketing efforts; the who (will you target)" Target market: evaluating each segment's attractiveness and deciding which to pursue; the how (will you target them)" Market positioning: the process of defining the marketing mix variables (4 P's) so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products; the where (in the consumer's mind)"
Define market share, relative market share, and market growth rate.
Market share: the percentage of a market accounted for by a specific entity, used to establish the product's strength in a particular market (your firm's total sales/entire market total sales); niche categories Relative market share: provides managers with a product's relative strength compared with that of the largest firm in the industry Market growth rate: the annual rate of growth of the specific market in which the product competes
Define attitude, motive, and learning as they relate to consumer behavior.
Motive: a need or want that is strong enough to cause the person to seek satisfaction Attitudes: a person's enduring evaluation of his or her feelings about and behavioral tendencies toward an object or idea ◦Learned and long-lasting, develop over a long period of time Perception: the process by which we select, organize, and interpret information to form a meaningful picture of the world; Determined by culture, tradition, and upbringing
What are the five steps in the consumer decision process? internal external search congnative dissonance
Need Recognition Information research Alternative Evaluation Purchase Post Purchase
Define need recognition, functional needs, and psychological needs. How can a product fulfill both functional and psychological needs?
Need recognition: the beginning of the consumer decision process; occurs when consumers recognize they have an unsatisfied need and want to go from a "needy" state to a 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 or service
Draw a graph of the macro strategies. Provide an example of a company at each level of the graph. (strategy map)
Operational Excellence- -to lower costs (monetary costs, acquisition costs, maintenance costs, supply chain costs) -to increase convenience -to obtain reliability -to become easy to use Tradeoffs: Lower performance, Lower customization, Lower level of service EX: walmart Customer intimacy- -High level of customization -High levels of service -Offer a complete solution -Access to a wide selection -Obtain advice and consult -Feeling of an "experience" Tradeoffs: Higher costs, Somewhat lower performance EX: Walgreens Product Leadership- -Access to high performance (More features, More functionality, Latest technologies, Complexity) -Linked with aesthetics and style -Portray sophistication Tradeoffs: Higher cost, Lower customization EX: Nike
List and define the three macro strategies for developing customer value. What are characteristics of each strategy? SHORT ANSWER
Operational Excellence: performance is "good enough"; involves a firm's focus on efficient operations and excellent supply chain management (based on convenience) Ex: McDonalds, Walmart Customer Intimacy (excellence) : performance is "just right"; involves a focus on retaining loyal customers and excellent customer service Product Leadership: performance is "never good enough"; involves a focus on achieving high-quality products
In the context of undesirable consumer behavior, what is a passive consumer? What is negative word of mouth?
Passive consumers: don't repeat purchase, don't recommend product to others Negative word of mouth: when consumers spread negative information about a product, service, or store to others Example: Message boards, blogs
What are the three phases of the marketing plan? List and define them.
Planning phase: define the mission and vision of the business, evaluate the situation both inside and outside of the organization Implementation phase: identify and evaluate different opportunities, using: segmentation, targeting, positioning, and the 4 Ps Control phase: evaluating the performance of the marketing strategy using marketing metrics
Define each of the 4 P's of marketing (the marketing mix). Provide an example of each.
Product and value creation Products, services - Amazon.com, 3M, Dell, Marriott Price and value capture Pricing strategies Place and value delivery "Where to sell?" Promotion and value communication "How do we communicate our message to our target markets?"
How does a company survive as a product leader? A customer intimacy company? An operationally excellent company?
Product leader: Product development lifecycle Always create new product lifecycles "Fencing" - gentle, combatants are well protected Customer intimacy: Share of wallet strategy "Capture" a customer, then get all of their money "Boxing" - can get hurt, but ref and gloves Operational excellence: Volume strategy "Street fight" - dirty and ugly
What are two pros and two cons that firms must consider when deciding to be socially responsible?
Pros: It is the right thing to do Businesses have the resources to devote to fixing social problems Prevents government regulation and potential fines It can be profitable Cons: Takes focus away from making profits Business executives spend shareholder money on environmental initiatives
List and define each of the components of a SWOT analysis. Which are inward focused? Outward focused?
SWOT analysis: situation analysis, assess the internal environment (STRENGTHS and WEAKNESSES) and the external environment (OPPORTUNITIES and THREATS) -Strengths: what your firm does well -Weaknesses: where you are vulnerable, what you don't do well -Opportunities: possibilities not yet realized -Threats: things you can't control, but must be aware of
What is the definition of value?
Sharing information between business units
Define situational factors and provide three examples of how firms might use situational factors to increase consumer spending.
Situational factors: factors specific to the situation that override or influence shopping decisions Purchase situations ◦Purchasing a gift for someone, going out on a date Shopping situations ◦Store Atmosphere ◦Salespeople ◦Crowding ◦In-store demonstrations ◦Promotions ◦Packaging
List and define each of the categories of the BCG product portfolio analysis- FILL IN
Stars: Occur in high-growth markets and are high market share products. Often require heavy resource investment. As market growth slows, stars become cash cows. Cash cows: Occur in low-growth markets but are high market share products. Have excess resources that can be spun off to other products. Question marks: Dogs: No one buys this everything starts off as question marks this is where no one knows what's going to happen. if it isn't invested in then the product basically goes away. it can turn into stars but it needs high investment which is like the best best thing so it's high growth and high market share. stars can turn into cash cows which is great but very limited and sometimes need investment because of the low market shares. dogs are the weakest part because it's hard to make profit
We discussed the Tylenol recall of 1982 in class. What were some positive actions that Tylenol took in response to the tragic poisoning of customers who ingested their products?
They recalled all their products from all over the world by saying, hey if you are worried, return your bottle and we will give all your money back. They also now have designed the child lock on it
What is the difference between transactional and relational customer relationships?
Transactional: each transaction is a separate event, prior knowledge not important (e.g., McDonalds) Relational: buyers and sellers establish long-term relationship (e.g., 5-star hotel)
Define universal set, retrieval set, and evoked set. (DEFINE)
Universal sets: include all possible choices for a product category Retrieval sets: those brands that can be readily brought forth from memory (a subset of the universal set) Evoked set: comprises the alternative brands that the consumer states they would actually consider when making a purchase decision
What is the main concept of marketing? What does marketing help create? Marketing seeks to satisfy consumer ___ and ____ (chapter 1, slide 3)?
VALUE
Define and provide an example of strategic business units.
a division of the firm that can be managed and operated somewhat independently from other divisions and may have a different mission or objectives. EX:
What is the definition of marketing strategy?
a firm's target market, marketing mix, and method of obtaining a sustainable competitive advantage
What is a sustainable competitive advantage?
something that a company can persistently do better than its competitors EX: lowering price, introduce new products, operational strategies, focus on the customers "building a wall around its position in the market
Define corporate social responsibility
voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders
What are three things that a company can do to deliver post-purchase customer satisfaction?
◦Build realistic expectations ◦Demonstrate correct product use ◦Stand behind the products - money-back guarantees, warranties ◦Encourage customer feedback, use to improve future products and experience Thank your customers
What are three of the risks that consumers consider when making a purchase decision?
◦Performance risk: will it perform or will it break? ◦Financial risk: initial cost, maintenance costs, replacement costs ◦Social risk: peer pressure, what will others think of my decision? ◦Psychological risk: similar to social risk, peer pressure ◦Physiological risk/safety risk: physical/emotional harm
What are three things that a customer can do to relieve cognitive dissonance?
◦Take back the item ◦Only focus on the good qualities of the decision ◦Seek positive feedback to justify your purchase ◦Seek negative information about the products you did not select
What are three questions that marketers must ask when considering technological advances?
◦What is behind a consumer's search for information ◦How consumers evaluate alternatives ◦Post purchase outcomes
