BUS 346 MIDTERM 1
Familiarity leads to
Liking
In the 1950s-90s business was
Marketing Oriented (Focused on consumers wants/needs)
Consumer Needs
Physical, social, individual needs
Objective Value
The value of an object set by the manufacture
Direct Channel
a product or service comes directly from the company/producers
business portfolio analysis
a technique that managers use to quantify performance measures and growth targets of their firms' strategic business units
depth of product line
# of categories within a product line (may cannibalize brands)
breadth of product line
# of product lines in a product mix (may be too costly to maintain)
Core Aspects of Marketing
- marketing satisfies consumer wants and needs - entails exchange -creates value through the Marketing Mix Can happen with any entity affects various stakeholders
Marketing Strategy
Identifies the firms target market and what firm plans to build a sustainable competitive advantage
Which of the following steps occurs during the implementation phase of the marketing plan?
Identify and evaluate opportunities
To determine how attractive a particular market is using the BCG portfolio analysis, ________ is(are) established as the vertical axis.
market growth rate
macro strategies for developing customer value
mass consumers, customer excellence, operational excellence, product excellence, locational excellence
brand awareness
more aware of a brand the easier decision making to buy a product
In most companies, portfolio management is typically done at the SBU or ________ level of the firm.
product line
Indirect channel
product or service comes from a wholesaler or retailers
In the 1900's business was
production oriented
competitive advantage
firm has an edge over competitors
Marketing Mix Product ___
Creates Value and includes goods, services AND ideas
Step 3 of Marketing Plan
Identify and evaluate opportunities. Use the STP: Segmentation, Targeting, and Positioning.
Brand Loyalty
a favorable attitude toward and consistent purchase of a single brand over time
When Procter & Gamble added teeth-whitening products under the Crest brand, the firm was engaged in
brand extension
In BCG portfolio analysis, products in low-growth markets that have received heavy investment and now have excess funds available to support other products are called
cash cows
Value cocreation refers to
customers acting as collaborators on a product
Product Line
different sets of products (iphone vs macbook)
The process by which the use of a new product or service spreads throughout a market group is referred to as
diffusion of innovation
Innovators are a critical group of new product adopters because they
help the product gain the market acceptance
brand association
mental and emotional links that consumers make between a brand and its key product attributes
Individual Brands
separate brand names for each product
It is almost impossible to watch a sporting event on television without seeing Nike's "swoosh" check mark, which is Nike's
symbol
Subjective Value
the worth of a good or service as determined by its usefulness to the buyer
Mission statement defines
what type of business you are and what your objectives are
Segmentation
4 groups: demographic, geographic, psychographic and Behavioral
For marketers, "exchange," refers to
the trading of things of value
Unsought Products
unkown or unsought by consumers, requires lots of marketing effort, consumers don't see benefits
Positioning
choosing segments to market towards to set brand apart from competitors
Which marketing activity is most directly served by the promotion element of the marketing mix?
communicating value
Marketing Mix Price: q
Captures Value -everything a buyer gives up in exchange for product or services -higher price tends to mean higher value
When marketers use a variety of communication disciplines—advertising, personal selling, sales promotion, public relations, direct marketing, and online marketing including social media—in combination to communicate a value proposition to the customer, it is referred to as
integrate marketing communications
What is an example of an Idea Product?
keto diet (certain foods are marketed under the idea that they are keto friendly) or kombucha (kombucha comes in many forms however the name kombucha isnt a specific product itself and instead a general idea)
A long-standing staple of ______ has been major league sports teams that play in the MLB, NBA, NFL, or NHL as well as various collegiate sports teams. rights
licensing
question mark
low relative market share, high market growth rate, Questionable product because it could be a cash cow or dog (usually dog)
The marketing goal of getting the "right quantities to the right locations, at the right time" relates to
managing the supply chain
Which of the following growth strategies employs the existing marketing mix and focuses the firm's efforts on existing customers?
market penetration
SWOT analysis
a planning tool used to analyze an organization's strengths, weaknesses, opportunities, and threats
BCG Matrix
a portfolio strategy developed by the Boston Consulting Group that categorizes a corporation's businesses by growth rate and relative market share and helps managers decide how to invest corporate funds
Communal relationships
a way that marketers make the consumer feel like they are cared for
diversification
adding a completely new product that would be considered taking a risk (mcdonalds making clothes)
market development
adding a new store to a new area
Disney's My Magic system, which enables visitors to swipe their Magic Band wristbands to get on rides, make purchases, and open their hotel room door, is an example of ________ excellence.
customer
Value cocreation refers to a
mutual creation of value by both customer and service provider (ex. designing your own shoe on the converse website)
mere exposure effect
people like things more familiar to them
Values of Brands
Facilitate Purchases, establish loyalty, protect from competition and price competition and affects market value
Shopping Product
Fair amount of effort to shop for, more expensive (ex being clothes because you don't buy the first shirt you see)
Targeting
evaluate attractiveness of market segments
When consumers associate a brand with a certain level of quality and familiar attributes, allowing consumers to make quick decisions, the brand
facilitates purchasing
Cash Cow
high market share, low market growth, well established and not much cash injection required. Steady product
The XYZ car manufacturing company is advertising its new hybrid vehicle. It understands that its competition, Toyota's hybrid car, the Prius, is known for being economical, a good value, stylish, and good for the environment. Toyota has the advantage of
brand associations
Brand Equity
brand awareness, perceived value, brand associations, brand loyalty
Ferrari is well known as a brand of luxury sports cars; accordingly, it has leveraged its brand name to introduce clothing offerings emblazoned with its horse logo. It has also licensed its logo to 68 different products, from sunglasses to guitars. Ferrari might be at risk of what?
brand dilution
What makes a brand?
brand name, URLs, logos and symbols, characters, slogans, jingles/sounds
Jenny always buys Stacy's brand pita chips. She does not even consider alternatives. Jenny is a __________ customer
brand-loyal
market penetration
increase market share among existing customers
Branding
increases awareness and provides a way to differentiate from competitors
Convienience Product
inexpensive, minimal effort to shop for, frequently bought and little planning, require wide distribution to be profitable
Near the end of the model year, the Luxury for Less automobile dealership had an unusually high inventory level. The manager increased her advertising spending and gave extra incentives to the sales staff. These actions are similar to those in which marketing era?
sales oriented
In the 1920s-1950s business was
sales oriented (supply outweighs demand)
4 types of Products
specialty, shopping, convenience, unsought
For years, when considering new products, marketers at Celestial Seasonings asked themselves, "What would Stacy think?" Stacy was a fictional character representing 25- to 50-year-old educated, upper-income women who rarely watched television but did a lot of reading. "Stacy" represented Celestial's primary
target market segment
Perceived Value
the relationship between a product's or service's benefits and its cost
According to your text, in the broadest terms, the "marketplace" refers to
the world of trade
Ford Motor Company may be thinking of announcing that it will severely cut back its automobile production. For parts companies supplying Ford its parts, this cut back in production represents a
threat
Meryl is considering a career in marketing. She is concerned about the image of marketers as fast-talking, high-pressure people who care only about making a sale. When reading about the core aspects of marketing, Meryl is relieved to see that in marketing
understanding consumer needs and wants is fundamental
Product Mix
All products/services offered by a company
Consumer Wants
A product/service wanted by someone that is shaped by culture and individual personality, media and society
product development
Adding a new product to an existing market
As use of the Internet took off, car manufacturers were tempted to sell directly to consumers, but decided instead to continue to sell through their existing dealer networks. The car manufacturers considered switching from ________ to ________ marketing.
B2B, B2C
Why is the Marketing mix important
Because its a controllable set of decisions or activities that the firm uses to respond to the wants of its target
The more value there is the more ____ > _____
Benefits, costs
Marketing can be performed through
Business to business, Business to Consumer, Consumer to Consumer
What is an example of creating value?
Chick-fil-A creates value through their second mile service, delicious food and emotional values
Marketing Mix Promotion
Communicates Value and Proposition -communication by a marketer that informs/persuades/resminds potential buyers about a product to influence decisions -does not just result in a consume outcome but can result in viewing a website/social media (results in any interaction with a company)
A product has 3 distinct Components
Core Customer Value, Actual Product, Associated Services
Step 1. Creating a Marketing Plan
Define your business mission (aka a broad description of objectives
Marketing Mix Place
Delivering value and proposition The place a product/service is sold from can be from a direct channel or indirect channel
Specialty
Extensive search to shop for, lots of time to find the right product (ex homes, doctors, cars)
Star Products
High relative market and High growth. Great potential and requires a large cash inject
Dog Product
No future - low growth/market share. This is the worst of the products
A __________ is a group of associated items that consumers tend to use together or think of as part of a group of similar products.
Product Line
Marketing Mix includes ?
Product, price, promotion and place
From the 1990s to Now business is
Value Based (Wants/needs but value of product is considered more)
Family Brands
a group of related products sold under one name
The scout troops at Rivers Elementary enjoy a program each year that promotes safe choices when viewing information online. This program is marketing
an idea
Opportunities and Threats are ___
out of the business' control
JeMarcus is going to sell sporting apparel, which he has already purchased from manufacturers, and has signed a deal agreeing to the volume he will sell monthly. He has researched his competition, talked to some customers, and decided on prices he will charge. JeMarcus has also developed a plan for promoting his business. Based on this description, which element of the marketing mix does JeMarcus still need to work on?
place
Which of the following is not one of the four overarching strategies to create and deliver value and to develop sustainable competitive advantages?
planning excellence
Market Growth
the increase or decrease in the size of a market for a product or service over time
Decoy Effect
the mere intro of a third option to influence the choices between the other two options