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 keyquestions?
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 theproduct/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