Test 1 MKTG 3600

Distinguish between marketing mix factors and environmental forces.

-four elements in a marketing program designed o satisfy customer needs are product, price, promotion, and place. These elements are called the marketing mix, the four Ps, or the marketer's controllable variables. -environmental forces, also called uncontrollable variables, ar largely beyond the organization's control. These include social, economic, technological, competitive, and regulatory forces

What are the bases used to segment consumer and organization (business) markets?

-geographic -demographic -psychographic -behavioral ones Organizational markets use the same bases except for psychographic ones.

Distinguish among three variations of the consumer purchase decision process: extended, limited and routine problem solving

1. high involvement purchase occasions- each of the five stages of the consumer purchase decision process is used and considerable time and effort are devoted to the search for external information and the identification and evaluation of alternatives 2. limited problem solving- consumers typically seek some information or rely on a friend to help them evaluate alternatives 3. low-involvement purchase occasions- consumers engage in routine problem solving. they recognize a problem, make a decision, and spend little effort seeking external information and evaluating alternatives.

Describe the stages in the consumer purchase decision process.

1. problem recognition- perceiving a difference between a person's ideal and actual situation big enough to trigger a decision 2. information search- remember previous purchase experiences (internal search) and external search behavior such as seeking information from other sources 3. alternative evaluation- clarifies the problem for the consumer by a)suggesting the evaluative criteria to use for the purchase b) yielding brand names that might meet the criteria and c) developing consumer value perceptions 4. purchase decision- the choice of an alternative, including from whom to buy and when to buy 5. postpurchase behavior- the comparison of the chosen alternative with a consumer's expectations, which leads to satisfaction or dissatisfaction and subsequent purchase behavior.

Explain how marketing discover and satisfies consumer needs

1. the first objective in marketing is discovering the needs and wants of consumers who are prospective buyers and customers -A need occurs when a person feels deprived of basic necessities such as food, clothing, and shelter. -a want is a need that is shaped by a person's knowledge, culture, and personality 2. the second objective in marketing is satisfying the needs of targeted consumers. Because an organization obviously can't satisfy all consumer needs, it must concentrate its efforts on certain needs of a specific group of potential consumers or large market. 3. finally, the organization develops a set of marketing actions in the form of a unique marketing program to reach them.

What four factors are needed for marketing to occur?

1. two or more parties with unsatisfied needs 2. a desire and ability on their part to have their needs satisfied 3. a way for the parties to communicate 4. something to exchange

The 80/20 rule suggests that

80 percent of a firm's sales are obtained from 20 percent of its customers.

80/20 rule

A concept that suggests 80 percent of a firm's sales are obtained from 20 percent of its customers.

beliefs

A consumer's subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people.

brand loyalty

A favorable attitude toward and consistent purchase of a single brand over time.

market-product grid

A framework to relate the market segments of potential buyers to products offered or potential marketing actions.

product

A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value.

attitude

A learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.

product differentiation

A marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products.

perceptual map

A means of displaying in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how they perceive competing products or brands, as well as the firm's own product or brand.

personality

A person's consistent behaviors or responses to recurring situations.

marketing program

A plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.

brand community

A specialized group of consumers with a structured set of relationships involving a particular brand, fellow customers of that brand, and the product in use.

market orientation

An organization with a market orientation focuses its efforts on (1) continuously collecting information about customers' needs, (2) sharing this information across departments, and (3) using it to create customer value.

product repositioning

Changing the place a product occupies in a consumer's mind relative to competitive products.

opinion leaders

Individuals who exert direct or indirect social influence over others.

market segmentation

Involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action.

relationship marketing

Links the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit.

In the VALS framework, consumers motivated by self-expression desire social or physical activity, variety, and risk. One segment of the two self-expression-motivated groups, known as __________, express themselves and experience the world by working on it—growing vegetables or fixing a car.

Makers

Explain what market segmentation is and when to use it.

Market segmentation involves aggregating prospective buyers into groups that a) have common needs and b) will respond similarly to a marketing action. Organizations go to the expense of segmenting their markets when it increases their sales, profits, and ability to serve customers better

Explain how marketing managers position products in the marketplace.

Marketing managers often locate competing products on two-dimensional perceptual maps to visualize the products in the minds of consumers. They then try to position new products or reposition existing products in the is space to attain maximum sales and profits.

target market

One or more specific groups of potential consumers toward which an organization directs its marketing program.

reference groups

People to whom an individual looks as a basis for self-appraisal or as a source of personal standards.

market

People with both the desire and the ability to buy a specific offering.

Identify the major sociocultural influences on consumer behavior

Sociocultural influences, which evolve from a consumer's formal and informal relationships with other people, also affect consumer behavior. These involve: 1. Personal influence-Opinion leadership and word-of-mouth behavior are two major sources of personal influence on consumer behavior 2. Reference groups- people to whom an individual looks as a basis for self-approval or as a source of personal standards 3. The Family- influences on consumer behavior result from three sources: consumer socialization, passage through the family life cycle, and decision making within the family or household 4. Culture- and subculture- have been shown to influence product preferences and buyer patterns.

Identify the five steps involved in segmenting and targeting markets

Step 1: group potential buyers into segments. Buyers within a segment should have similar characteristics to one another and respond similarly to marketing actions such as a new product or lower price Step 2: involves putting related products to be sold into meaningful groups Step 3: organization develop a market-product grid with estimated sizes of markets in each of the market-product cells of the resulting table Step 4: selecting the target market segments on which the organization should focus Step 5: taking marketing mix actions -often in the form of a marketing program - to reach the target market segments

subcultures

Subgroups within the larger, or national, culture with unique values, ideas, and attitudes.

consumer behavior

The actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions.

marketing

The activity, set of instructions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

perceived risk

The anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences.

utility

The benefits or customer value received by users of the product.

customer value proposition

The cluster of benefits that an organization promises customers to satisfy their needs.

marketing mix

The controllable factors—product, price, promotion, and place—that can be used by the marketing manager to solve a marketing problem.

family life cycle

The distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors.

motivation

The energizing force that stimulates behavior to satisfy a need

purchase decision process

The five stages a buyer passes through in making choices about which products and services to buy: (1) problem recognition, (2) information search, (3) alternative evaluation, (4) purchase decision, and (5) postpurchase behavior.

marketing concept

The idea that an organization should (1) strive to satisfy the needs of consumers while also (2) trying to achieve the organization's goals.

word of mouth

The influencing of people during conversations.

ultimate consumers

The people who use the products and services purchased for a household. Also called consumers, buyers, or customers.

involvement

The personal, social, and economic significance of the purchase to the consumer.

product positioning

The place a product occupies in consumers' minds based on important attributes relative to competitive products.

perception

The process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.

usage rate

The quantity consumed or patronage (store visits) during a specific period. Also called frequency marketing.

market segments

The relatively homogeneous groups of prospective buyers that (1) have common needs and (2) will respond similarly to a marketing action.

exchange

The trade of things of value between buyer and seller so that each is better off after the trade.

environmental forces

The uncontrollable forces that affect a marketing decision and consist of social, economic, technological, competitive, and regulatory forces.

customer value

The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.

societal marketing concept

The view that organizations should satisfy the needs of consumers in a way that provides for society's well-being.

learning

Those behaviors that result from (1) repeated experience and (2) reasoning.

organizational buyers

Those manufacturers, wholesalers, retailers, service companies, not-for-profit organizations, and government agencies that buy products and services for their own use or for resale.

Marketers are concerned with which types of reference groups?

Three of them have implications: 1. associative groups- ones to which a person actually belongs, such as a brand community that consists of a specialized group of consumers with a structured set of relationships involving a particular brand 2. aspiration groups- ones act people wish to be a member of or identified with 3. dissociative groups- ones that people wish to maintain a distance from because of differences in values or behaviors.

In behavioral learning, __________ is a stimulus or symbol perceived by consumers.

a cue

Market-product grid refers to

a framework used to relate the market segments of potential buyers to products offered or potential marketing actions by an organization.

Enduring characteristics within a person or in his or her relationship with others are referred to as

a key trait.

Product differentiation refers to

a marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products.

Perceptual map refers to

a means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands, as well as its own product or brand.

The element of the marketing mix that describes a good, service, or idea to satisfy consumers' needs is known as

a product.

A brand community refers to

a specialized group of consumers with a structured set of relationships involving a particular brand, fellow customers of that brand, and the product in use.

Which of the following is not an environmental force? a) ecological b) competitive c) technological d) economic d) regulatory

a) ecological

VALS groups of consumers motivated by __________ are those who look for products and services that demonstrate success to their peers or to a peer group they aspire to.

achievement

The element of the marketing mix that describes what is exchanged for a product is known as a) a product. b) the price. c) productivity. d) promotion. e) the place or distribution.

b) the price.

Segmentation based on some observable actions or attitudes by prospective customers, such as what benefits they seek, as well as where, how frequently, and why they buy, is referred to as

behavioral segmentation.

what is the term for post purchase anxiety?

cognitive dissonance

Making connections between two or more ideas or simply observing the outcomes of others' behaviors and adjusting one's own behavior accordingly is known as what type of learning?

cognitive learning

Today, marketers are increasingly emphasizing a Tiffany/Walmart strategy, which is to offer

different variations of the same basic offering to high-end and low-end segments.

Marketing focuses on ________________ and ________________ consumer needs

discovering; satisfying

A(n) __________ for information is needed when past experience or knowledge is insufficient, the risk of making a wrong purchase decision is high, and the cost of gathering information is low.

external search

Positioning that involves competing directly with competitors on similar product attributes in the same target market is referred to as

head-to-head positioning.

The second stage in the consumer purchase decision process involves gathering facts about possible choices, and may include internal and external sources. What is this stage called?

information search

What does lifestyle mean?

it is a mode of living that is identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them.

Sources of external information that originate with the sellers of products and services and include advertising, company websites, salespeople, and point-of-purchase displays in stores are referred to as

marketer-dominated sources.

Tailoring products or services to the tastes of individual customers on a high-volume scale is referred to as

mass customization.

A target market refers to

one or more specific groups of potential consumers toward which an organization directs its marketing program.

Individuals who exert direct or indirect social influence over others are referred to as

opinion leaders.

In a marketing context, a market refers to

people with both the desire and ability to buy a specific offering.

Organizational synergy is the increased customer value achieved through

performing organizational functions more efficiently.

Changing the place an offering occupies in consumers' minds relative to competitive products is referred to as

product repositioning.

The element of the marketing mix that describes a means of communication between the seller and buyer is known as

promotion.

Segmentation based on some subjective mental or emotional attributes, aspirations, or needs of prospective customers is referred to as

psychographic segmentation.

Identify the major psychological influences on consumer behavior

psychological concepts such as 1. Motivation-the energizing force that stimulates behavior to satisfy a need 2. Personality- a person's consistent behaviors or responses to recurring situations 3. Perception- the process by which an indivudual selects, organizes, and interprets information to create a meaningful picture of the world. 4. Learning- behaviors that result from a) repeated experience and b) reasoning. Brand loyalty results from learning. Values, Beliefs and Attitudes- also learned and influence how consumers evaluate products, services and brands. 8 Lifestyle- also called psychographics, combines psychology and demographics and focuses on how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them these are useful for interpreting buying processes.

The five stages a buyer passes through in making choices about which products and services to buy is called the

purchase decision process.

In behavioral learning, a __________ is the reward that is given to a consumer.

reinforcement

Consumers spend little time and effort evaluating alternatives in the purchase of flour and soap. The consumer purchase decision process for such staples involves __________, which is virtually a habit and typifies low-involvement decision making.

routine problem solving

As a result of __________, consumers do not remember all the information they see, read, or hear, even minutes after exposure to it.

selective retention

In the Maslow hierarchy of needs, those needs involving personal fulfillment are called

self-actualization.

The way people see themselves and the way they believe others see them is referred to as

self-concept.

The process of seeing or hearing messages without being aware of them is referred to as

subliminal perception.

Consumer behavior refers to

the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions.

Marketing refers to

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.

Explain how organizations build strong customer relationships and customer value through marketing.

the essence of successful marketing is to provide sufficient value to gain loyal, long-term customers. Customer value is the unique combination of benefits received by targeted buyers that usually includes quality, price, convenience, on-time delivery, and both before-sale and after-sale service. Marketers do this by using one fo three value strategies: best price, best product, or best service.

Which of the following would a marketer use as a synonym for the marketing mix? a) macromarketing forces b) environmental forces c) marketing management factors d) micromarketing factors e) the four Ps of marketing

the four Ps of marketing

The marketing concept refers to

the idea that an organization should (1) strive to satisfy the needs of consumers (2) while also trying to achieve the organization's goals.

Relationship marketing refers to

the linking of the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits.

The marketing mix refers to

the marketing manager's controllable factors that can be used to solve marketing problems.

Environmental forces refer to

the marketing manager's uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces.

A market orientation refers to

the orientation of an organization that focuses its efforts on continuously collecting information about customers' needs, sharing this information across departments, and using it to create customer value.

Product positioning refers to

the place a product offering occupies in consumers' minds on important attributes.

The element of the marketing mix that describes a means of getting the product to the consumer is known as

the place.

Customer value refers to

the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.

The market segmentation strategy known as frequency marketing focuses on

usage rate.

The quantity consumed or patronage (store visits) during a specific period is referred to as

usage rate.