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