Marketing Principles Midterm

T/F In the marketing mix, promotion refers to the goods-and-services combination a company offers to its target market

False

T/F Marketing intermediaries supply resources needed by a company to produce its goods and services

False

T/F Marketing offerings are limited to physical products

False

T/F Since less than ten percent of smartphone owners use their phones for shopping-related activities, mobile marketing is a slow growing digital marketing platform

False

T/F Walmart's microenvironment includes suppliers

False

T/F When backed by buying power, wants become needs

False

MIS parts

The MIS first assesses information needs. The MIS primarily serves the company's marketing and other managers, but it may also provide information to external partners. Then the MIS develops information from internal databases, marketing intelligence activities, and marketing research. Internal databases provide information on the company's own operations and departments. Such data can be obtained quickly and cheaply but often need to be adapted for marketing decisions.

The two dimensions the BCG approach uses to evaluate and manage SBUs are

Market growth rate and relative market share

Today's demographic environment

Shows a changing age structure, shifting family profiles, geographic population shifts, a better-educated and more white-collar population, and increasing diversity.

The natural environment

Shows three major trends: shortages of certain raw materials, higher pollution levels, and more government intervention in natural resource management.

High Market Growth Rate + High Relative Market Share

Stars

Low Market Growth Rate + Low Relative Market Share

Stars

American Honda purchases over $20 billion worth of auto parts and materials every year. ________ are key players in the company's success.

Suppliers

Marketing channel firms

Suppliers, marketing intermediaries, physical distribution firms, marketing services agencies, and financial intermediaries—cooperate to create customer value. Competitors vie with the company in an effort to serve customers better. Various publics have an actual or potential interest in or impact on the company's ability to meet its objectives.

Describe the environmental forces that affect the company's ability to serve its customers.

The company's microenvironment consists of actors close to the company that combine to form its value delivery network or that affect its ability to serve customers. It includes the company's internal environment.

Customer equity

The total combined customer lifetime values of all of the company's customers.

Identify the key elements of a customer value-driven marketing strategy

To design a winning marketing strategy, the company must first decide whom it will serve. It does this by dividing the market into segments of customers (market segmentation) and selecting which segments it will cultivate (target marketing). Next, the company must decide how it will serve targeted customers (how it will differentiate and position itself in the marketplace).

A brand's ____________ is the set of benefits that it promises to deliver to consumers to satisfy their needs

Value proposition

Some marketers face...

special marketing research situations, such as those conducting research in small business, not-for-profit, or international situations.

According to the BCG Matrix, a product that has a high market share and a high market growth would be considered a ______________.

stars

Which of the following best describes a company's business portfolio?

the collection of businesses and products that make up the company

Company's internal environment

its several departments and management levels—as it influences marketing decision making.

A firm's decision to identify and develop new markets for existing products is a ________ strategy.

market development

Demography

the study of the characteristics of human populations.

According to the five-step model of the marketing process, the first step in marketing is_______.

understanding the marketplace and customer needs and wants

Four steps of company wide strategic planning

(1) defining the company's mission (2) setting objectives and goals (3) designing a business portfolio (4) developing functional plans The company's mission should be market oriented, realistic, specific, motivating, and consistent with the market environment. The mission is then 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 marketing plans in line with the company-wide plan.

Marketing intelligence

Activities supply everyday information about developments in the external marketing environment, including listening and responding to the vast and complex digital environment.

Customer-engagement marketing

Aims to make a brand a meaningful part of consumers' conversations and lives through direct and continuous customer involvement in shaping brand conversations, experiences, and community.

Primary research must also...

Be evaluated for these features. Each primary data collection method—observational, survey, and experimental—has its own advantages and disadvantages. Similarly, each of the various research contact methods—mail, telephone, personal interview, and online—has its own advantages and drawbacks.

Low Market Growth + High Relative Market Share

Cash Cows

Discuss how companies can react to the marketing environment

Companies can passively accept the marketing environment as an uncontrollable element to which they must adapt, avoiding threats and taking advantage of opportunities as they arise. Or they can take a proactive stance, working to change the environment rather than simply reacting to it. Whenever possible, companies should try to be proactive rather than reactive.

The consumer market

Consists of all the individuals and households that buy or acquire goods and services for personal consumption. 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: buyer characteristics and the buyer's decision process. Once in the black box, the inputs result in buyer responses, such as buying attitudes and preferences and purchase behavior.

Market research

Consists of collecting information relevant to a specific marketing problem faced by the company.

The economic environment

Consists of factors that affect buying power and patterns. The economic environment is characterized by more frugal consumers who are seeking greater value—the right combination of good quality and service at a fair price. The distribution of income also is shifting. The rich have grown richer, the middle class has shrunk, and the poor have remained poor, leading to a two-tiered market.

The cultural environment

Consists of institutions and forces that affect a society's values, perceptions, preferences, and behaviors. The environment shows trends toward new technology-enabled communication, a lessening trust of institutions, increasing patriotism, greater appreciation for nature, a changing spiritualism, and the search for more meaningful and enduring values.

Macroenvironment

Consists of larger societal forces that affect the entire microenvironment. The six forces making up the company's macroenvironment are demographic, economic, natural, technological, political/social, and cultural forces. These forces shape opportunities and pose threats to the company.

The political environment

Consists of laws, agencies, and groups that influence or limit marketing actions. It has undergone changes that affect marketing worldwide: increasing legislation regulating business, strong government agency enforcement, and greater emphasis on ethics and socially responsible actions.

The marketing information system (MIS)

Consists of people and procedures for assessing information needs, developing the needed information, and helping decision makers use the information to generate and validate actionable customer and market insights. A well-designed information system begins and ends with users.

Five types of customer markets

Consumer, business, reseller, government, and international markets.

The Great Recession caused....

Consumers to rethink their buying priorities and bring their consumption back in line with their incomes. Even as the post-recession economy has strengthened, Americans are now showing an enthusiasm for frugality not seen in decades. The challenge is to balance a brand's value proposition with current times while also enhancing its long-term equity.

Environmental concerns

Create marketing opportunities for alert companies. The technological environment creates both opportunities and challenges. Companies that fail to keep up with technological change will miss out on new product and marketing opportunities.

Describe the elements of a customer value-driven marketing strategy and mix and the forces that influence it.

Customer engagement, value, and relationships are at the center of marketing strategy and programs. Through market segmentation, targeting, differentiation, and positioning, the 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 an integrated marketing mix to produce the response it wants in the target market. The marketing mix consists of product, price, place, and promotion decisions (the four Ps).

According to the text, __________ are the most important acts in a company's microenvironment

Customers

Needs

Defined as states of felt deprivation

Ricky now has the buying power to purchase the computer that he wanted to buy six months ago. Ricky's want has most likely become a ___________.

Demand

Which of the following will most likely be included in the "price" component of a company's marketing mix?

Discounts

Describe the major trends and forces that are changing the marketing landscape in this age of relationships.

Dramatic changes are occurring in the marketing arena. The digital age has created exciting new ways to learn about and relate to individual customers. As a result, advances in digital and social media have taken the marketing world by storm. Online, mobile, and social media marketing offer exciting new opportunities to target customers more selectively and engage them more deeply. The key is to blend the new digital approaches with traditional marketing to create a smoothly integrated marketing strategy and mix.

___________ is the act of obtaining a desired object from someone by offering something in return

Exchange

The marketing process five steps

First, marketers need to understand the marketplace and customer needs and wants. Next, marketers design a customer-driven marketing strategy with the goal of getting, engaging, and growing target customers. In the third step, marketers construct a marketing program that actually delivers superior value. All of these steps form the basis for the fourth step: engaging customers, building profitable customer relationships, and creating customer delight. In the final step, the company reaps the rewards of strong customer relationships by capturing value from customers

Which generational group consist of the kid, teen and tween markets?

Generation Z

Discuss how to design business portfolios and develop growth strategies

Guided by the company's mission statement and objectives, management plans its business portfolio, or the collection of businesses and products that make up the company. The firm wants to produce a business portfolio that best fits its strengths and weaknesses to opportunities in the environment. To do this, it must analyze and adjust its current business portfolio and develop growth and downsizing strategies for adjusting the future portfolio. The company might use a formal portfolio-planning method. But many companies are now designing more-customized portfolio-planning approaches that better suit their unique situations.

Marketing information system

Helps users analyze and use the information to develop customer insights, make marketing decisions, and manage customer relationships.

The "Stop the Texts. Stop the Wrecks" campaign co-sponsored by the Ad Council and the National Highway Traffic Safety Administration is an example of a marketing offering for a(n)______

Idea

Consumer buyer behavior

Influenced by four key sets of buyer characteristics: cultural, social, personal, and psychological. Understanding these factors can help marketers to identify interested buyers and to shape products and appeals to serve consumer needs better. Culture is the most basic determinant of a person's wants and behavior. People in different cultural, subcultural, and social class groups have different product and brand preferences. Social factors—such as small group, social network, and family influences—strongly affect product and brand choices, as do personal characteristics, such as age, life stage, occupation, economic circumstances, lifestyle, and personality. Finally, consumer buying behavior is influenced by four major sets of psychological factors—motivation, perception, learning, and beliefs and attitudes. Each of these factors provides a different perspective for understanding the workings of the buyer's black box.

Explain how companies analyze and use marketing information.

Information gathered in internal databases and through marketing intelligence and marketing research usually requires more analysis. To analyze individual customer data, many companies have now acquired or developed special software and analysis techniques called They apply marketing analytics to dig out meaningful patterns in big data and gain customer insights and gauge marketing performance.

Customer relationship management (CRM)

Integrate, analyze, and apply the mountains of individual customer data to gain a 360-degree view of customers and build stronger the customer relationships.

Discuss the marketing management orientations that guide marketing strategy.

Marketing management can adopt one of five competing market orientations. The production concept holds that management's task is to improve production efficiency and bring down prices. The product concept holds that consumers favor products that offer the most in quality, performance, and innovative features; thus, little promotional effort is required. The selling concept holds that consumers will not buy enough of an organization's products unless it undertakes a large-scale selling and promotion effort. The marketing concept holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do. The societal marketing concept holds that generating customer satisfaction and long-run societal well-being through sustainable marketing strategies is key to both achieving the company's goals and fulfilling its responsibilities.

Which of the following has the primary function of helping a company target and promote its products to the right markets?

Marketing services agencies

A __________ is a purposeful saying, specifying what an organization wants to accomplish in the larger environment

Mission statement

Marketing information

No value until it is used to make better marketing decisions. Thus, the MIS must make the information available to managers and others who make marketing decisions or deal with customers. In some cases, this means providing regular reports and updates; in other cases, it means making nonroutine information available for special situations and on-the-spot decisions. Many firms use company intranets and extranets to facilitate this process. Thanks to modern technology, today's marketing managers can gain direct access to ______________ at any time and from virtually any location

Both internal and external secondary data sources...

Often provide information more quickly and at a lower cost than primary data sources, and they can sometimes yield information that a company cannot collect by itself. However, needed information might not exist in secondary sources. Researchers must also evaluate secondary information to ensure that it is relevant, accurate, current, and impartial.

The importance of understanding the marketplace and customers

Outstanding marketing companies go to great lengths to learn about and understand their customers' needs, wants, and demands. This understanding helps them to design want-satisfying market offerings and build value-laden customer relationships by which they can capture customer lifetime value and greater share of customer. The result is increased long-term customer equity for the firm.

High Market Growth Rate + Low Relative Market Share

Question Marks

Identify the five core marketplace concepts

The core marketplace concepts are needs, wants, and demands; market offerings (products, services, and experiences); value and satisfaction; exchange and relationships; and markets. Companies address needs, wants, and demands by putting forth a value proposition, a set of benefits that they promise to consumers to satisfy their needs. The value proposition is fulfilled through a market offering, which delivers customer value and satisfaction, resulting in long-term exchange relationships with customers

Steps to marketing research process

The first step in the marketing research process involves defining the problem and setting the research objectives, which may be exploratory, descriptive, or causal research. The second step consists of developing a research plan for collecting data from primary and secondary sources. The third step calls for implementing the marketing research plan by gathering, processing, and analyzing the information. The fourth step consists of interpreting and reporting the findings. Additional information analysis helps marketing managers apply the information and provides them with sophisticated statistical procedures and models from which to develop more rigorous findings.

Identify strategies for creating value for customers and capturing value from customers in return.

The key to building lasting relationships is the creation of superior customer value and satisfaction. In return for creating value for targeted customers, the company captures value from customers in the form of profits and customer equity.

Explain the importance of information in gaining insights about the marketplace and customers.

The marketing process starts with a complete understanding of the marketplace and consumer needs and wants. Thus, the company needs to turn sound consumer information into meaningful customer insights by which it can produce superior value for its customers. The company also requires information on competitors, resellers, and other actors and forces in the marketplace. Increasingly, marketers are viewing information not only as an input for making better decisions but also as an important strategic asset and marketing tool.

Marketing

The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.

Customer relationship management

The process of engaging customers and building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

Describe the adoption and diffusion process for new products

The product adoption process is made up of five stages: awareness, interest, evaluation, trial, and adoption. New product marketers must think about how to help consumers move through these stages. With regard to the diffusion process for new products, consumers respond at different rates, depending on consumer and product characteristics. Consumers may be innovators, early adopters, early mainstream, late mainstream, or lagging adopters. Each group may require different marketing approaches. Marketers often try to bring their new products to the attention of potential early adopters, especially those who are opinion leaders.

List the marketing management functions, including the elements of a marketing plan, and discuss the importance of measuring and managing marketing return on investment.

To find the best strategy and mix and to put them into action, the company engages in marketing analysis, planning, implementation, and control. The main components of a marketing plan are the executive summary, the current marketing situation, threats and opportunities, objectives and issues, marketing strategies, action programs, budgets, and controls. Planning good strategies is often easier than carrying them out. To be successful, companies must also be effective at implementation—turning marketing strategies into marketing actions. More than ever, marketing accountability is the top marketing concern. Marketing managers must ensure that their marketing dollars are being well spent. In a tighter economy, 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. Increasingly, they are using customer-centered measures of marketing impact as a key input into their strategic decision making.

T/F A brand's value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs

True

T/F Companies are adapting their promotional efforts to reflect the changing dynamics of American families

True

T/F Marketing targeting refers to the process of evaluating each market segment's attractiveness and selecting one or more segments to enter

True

T/F Product, price, place and promotion make up the elements of the marketing mix

True

T/F The product concept holds that consumers will favor products that offer the most in quality, performance, and innovative features

True

T/F Through consumer-generated marketing, consumers themselves are playing a bigger role in shaping their own brand experiences and those of others

True

Explain marketing's role in strategic planning and how marketing works with its partners to create and deliver customer value.

Under the strategic plan, the major functional departments—marketing, finance, accounting, purchasing, operations, information systems, human resources, and others—must work together to accomplish strategic objectives. Marketing plays a key role in the company's strategic planning by providing a marketing concept philosophy and inputs regarding attractive market opportunities. Within individual business units, marketing designs strategies for reaching the unit's objectives and helps to carry them out profitably. Marketers alone cannot produce superior value for customers. Marketers must practice partner relationship management, working closely with partners in other departments to form an effective value chain that serves the customer. And they must also partner effectively with other companies in the marketing system to form a competitively superior value delivery network.

Identify and discuss the stages in the buyer decision process

When making a purchase, the buyer goes through a decision process consisting of need recognition, information search, evaluation of alternatives, purchase decision, and postpurchase behavior. During need recognition, the consumer recognizes a problem or need that could be satisfied by a product or service. Once the need is recognized, the consumer moves into the information search stage. With information in hand, the consumer proceeds to alternative evaluation and assesses brands in the choice set. From there, the consumer makes a purchase decision and actually buys the product. In the final stage of the buyer decision process, postpurchase behavior, the consumer takes action based on satisfaction or dissatisfaction. The marketer's job is to understand the buyer's behavior at each stage and the influences that are operating.

Which of the following products would the electronics company CypressSound classify as a cash cow in its BCG matrix?

Xpress- an MP3 player that has a high market share in a market that isn't expected to grow much.

Resellers

are distribution channel firms that help the company find customers or make sales to them.

Wants

are the form human needs take as they are shaped by culture and individual personality

Marketing research can

be conducted effectively by small businesses and nonprofit organizations with limited budgets. International marketing researchers follow the same steps as domestic researchers but often face more and different problems. n All organizations need to act responsibly concerning major public policy and ethical issues surrounding marketing research, including issues of intrusions on consumer privacy and misuse of research findings

Mattel's American Girl Doll creates special __________ between the dolls and girls who adore them

brand experiences

Downsizing

refers to reducing the business portfolio by abandoning products that no longer fit the company's overall strategy

Dividing a market into several sections of customers is known as

segmentation

Both marketing penetration strategies and market development strategies involve

selling a company's current product