Marketing Final Exam April 30

Lifestyle

A person's typical way of life is expressed by his/her activities, interest & opinions

Evaluation Criteria

Attributes that the consumer considers important about a certain product

Core Beliefs & Values

Beliefs (what's true) and values (what's important) are persistent and are passed on from parents to children and are reinforced by schools, churches, businesses, and government.

Secondary Beliefs & Values

Beliefs and values are more open to change and include other's views of themselves including people, organizations, society, nature, and the universe.

Deceptive Promotions

Biggest criticisms of marketing is deceptive promotion. With this, firms try to amplify a product's features and performance.

Intangible

Cannot be seen, tasted, felt, heard or smelled before purchase

Perishable

Cannot be stored for later sale (cannot maintain inventory)

Geographic Segmentation

Divides groups based on physical location "Birds of a feather flock together"

Demographic Segmentation

Divides the market into segments based on variables such as age, generation, life-cycle stage, gender, income, occupation, education, religion, & ethnicity

Materialism

Encourages consumers to focus on the acquisition and possession of objects/things they may not need.

Deceptive Pricing

Encourages customers to believe they are getting a better value than they are. Intentionally misleading advertising sale prices or other deceptive techniques.

Surroundings

Factors in a consumer's surroundings, such as crowd size, smell, and store appearance, can affect decision making.

Direct Competitors

Firms that compete with products designed around the same or similar characteristics

Indirect Competitors

Firms that compete with products that have different characteristics but serve similar function

Product/brand

First: Create a need-satisfying product (Offering)

Marketing Myopia

Focusing on the specific products rather than the benefits/experiences produced

Capturing Value

For firms to capture value they must identify ways in which they can gain in some way through the exchange.

Shoddy/Unsafe Products

For many consumers, quality control is a major concern. Firms that aim to cut costs by reducing quality

Promotions

Fourth: Engage customers, communicate offering, & persuade consumers of the offer's merits

Marketing Concept

Holds that achieving organizational goals depends on knowing the needs/wants of the customers & delivering the desired satisfaction - Better than Competitors (Know your Competition)

Shifts in Secondary Beliefs/Values

How people view: themselves, others, organizations, society, nature and the universe

Geo-demographics

Hybrid form of segmentation that considers geographic and demographic factors

AMA Definition

It is about the creation and promotion of products (goods, services, or ideas) that serve customer needs and the sale of those products, which help firms to remain profitable and sustainable

Reference Group

Made up of people to whom a consumer compares himself or herself.

Id Direct & Indirect Competitors

Market scanning is the process by which a firm constantly monitors the market and collects information about its direct and indirect competitors.

Price

Marketers must determine the appropriate price that customers are willing to pay in order to best capture value for that product or service.

Selling Concept

Marketing belief that customers will not buy enough focuses on transactions and use large-scale selling & Promotions

Ethics

Moral standards expected by society.

Non-substitutable

No good alternatives can replicate advantage

Rare

No good alternatives can replicate advantage

Strategic Planning

Shifting conditions (customer needs & behavior, competition, economic, cultural, etc.) requires modification

High-Pressure Selling

Sometimes a salesperson's compensation might be tied directly to how much he or she sells.

Needs

State of Felt Deprivation - Basic Human Needs: deprived of food, physical, safety, social, individual

Micro (Internal) Environment

The current internal environment where marketing is influenced by the firm's choices and firms may alter them. Strengths (competitive advantages) & weaknesses)

Wants

The form Human Needs take: Something you would Like to Have. Marketers create products/services to appeal to those wants. Wants are typically shaped by a customer's personality, family, job, background, and previous experiences.

Service

The intangible part of the product bundle of benefits that satisfies needs/wants (no ownership)

Motivation

The inward drive people have to get what they need or want.

Purchase Involvement

The level of concern for, or interest in, the purchase process, Triggered by need to consider a particular purchase.

Learning

The modification of behavior that occurs over time due to experiences and other external stimuli.

Value

An equation of Benefits that meet needs/wants minus Cost

Evoke Set

An evoked set consists of those brands which the consumer is aware of and considers for purchase.

Marketing Mix

A combination of activities that represent areas a firm can adjust to influence demand for its good, service, or idea, known as the 4Ps.

Attitudes

A consumer's overall evaluation of a product, which involves general feelings of like or dislike. Brand switching requires changing attitudes.

Set Objectives base on SWOT Analysis

A firm must determine what its strengths, weaknesses, opportunities, and threats are via a SWOT analysis.

Establishing Systematic Data Collection Process

A firm must have systems in place to capture all relevant marketing data for use in strategic planning (marketing information system, customer relationship management).

Cognitive Dissonance

A mental conflict that occurs when consumers acquire new information that contradicts their beliefs or assumptions about the purchase.

Customer Satisfaction

A state that is achieved when customers' expectations and needs are met.

Valuable

Adds value - can be used to exploit opportunities or defend against threats

Purchase Decision

After evaluating alternatives, consumers will most likely purchase a product.

Customers and Products

Aged 6 - 11 years. Dolls, Board games & Toys

Meeting Customer Needs

Aim of marketing is to provide customer value by conducting research to understand needs (monitor social media, customer satisfaction, Internet searches, etc.)

Product

Central element around which all other elements revolve. A specific combination of goods, services, or ideas that a firm offers to consumers. Product are tangible & transfer ownership. Services are Products, but intangible & no ownership change

Marketing

Clearly understand norms/values expected of them

Ethical

Come from many different places. Inevitably, they involve more gray areas than the legal dimension. Marketers will be held accountable for making right decisions

Marketing Environment

Comprises internal factors and changes in external factors that affect firms and may help or hurt a product in the marketplace.

External Information Search

Consumers seek information beyond their personal knowledge and experience.

Internal Information Search

Consumers use past experiences with items from the same brand or product class as sources of information.

Costly to Imitate

Costly, can't imitate/buy at reasonable price

Planned Obsolescence

In order to create a feeling of excitement and exclusivity, marketers might purposely cause their products to run out before demand is satisfied (fashion & technology)

High Involvement

Include more significant purchases that carry greater risk to consumers if they fail & requires extensive external search.

Place

Includes the activities a firm undertakes to make its product available to potential consumers.

Opinion Leaders

Individuals who exert an unequal amount of influence on the decisions of others because they are considered knowledgeable about products.

low involvement

Inexpensive products, purchased without much forethought with some frequency & may not recognize need until in the store (Generally an internal search).

Marketing Environment

Internal and external factors that affect a firm's ability to succeed and formatted to identity strengths, weaknesses, opportunities, & threats.

Tactical Greening

Involves implementing limited change within a single area of the organization, such as purchasing or advertising.

Economic

Obligation to their stakeholders to be profitable. A failed business hurts employees, investors, and communities.

Post-Purchase Evaluation

Occurs after the sale is complete

Value Creation

Occurs when consumers use products or services that satisfy their needs and wants.

Actual Cost

Often more than the initial price

Evaluation of Alternatives

Once consumers acquire information, they can use it to evaluate different alternatives.

Deceptive Packaging

Packaging to exaggerate the contents of the package, making consumers think they are getting more than they are.

Customer Value

Perceived benefits (monetary & nonmonetary) that customers received from a product compared to its cost.

Family

Perhaps most important determinant of behavior

High Prices

Priced higher than needed and blame on distribution & advertising costs, & excessive markups

Inseparable

Produced & consumed at same time & cannot be separated from their provider (employee part of service).

Variability

Quality depends on who provides them, when, where, & how

Corporate Social Responsibility (CSR)

Refers to an organization's obligation to maximize its positive impact and minimize its negative impact on society.

Culture (Values)

Reflect a consumer's belief that a specific behavior is socially or personally preferable to another behavior. It is the Broadest/Most Basic Cause of wants/behaviors

Strategic Greening

Requires a holistic approach that integrates and coordinates all the firm's activities on environmental issues across every functional area.

Changes in Family

Same-sex & Different ethnicity marriages

Price

Second: How much it will charge: Customer assessment of value of product vs. competition

Sustainable Competitive Advantage

Sustainable Competitive Advantage: The superior position a product enjoys over competing products if consumers believe it has more value than other products

The Cohort Effect

Tendency of members of a generation to be influenced and bound together by significant events (social, political, historical, economic) in their formative year, ages 17 to 22

Macro (External) Environment

The act of monitoring developments that influence the marketing plan but outside of the firm's control with the goal of detecting and responding to threats and opportunities.

Price

The amount of something—money, time, or effort—that a buyer exchanges with a seller to obtain a product. It relates the customer's assessment of the value of the product & allows the firm to capture value from customers.

Price

The primary way that firms can capture value from customers.

Sustainable Marketing

The process of creating, communicating, and delivering value to customers through the preservation and protection of the natural systems that provide the natural resources upon which our society and economy depend.

Situation Analysis

The process of gathering information on the internal and external environments to assess the firm's strengths, weaknesses, opportunities and threats (SWOT) and to guide its goals and objectives.

Strategic Planning

The process of thoughtfully defining a firm's objectives and developing a method for achieving those objectives.

Strategic Planning

The process of thoughtfully defining the firm's objectives and developing an approach for achieving those objectives. Conducted on a continual basis as conditions change.

Marketing Strategy

The set of actions taken to accomplish organizational objectives (How objectives will be achieved).

Personality

The set of distinctive characteristics that lead an individual to respond in a consistent way to certain situations.

Place

Third: How it will make the offering available

Time

Time considerations often affect purchasing decisions.

Legal

Understand and obey the laws and regulations of the communities in which they do business, & in foreign countries in which the do business

Philanthropic

Understand that giving back to the community is not only the right thing to do but a great way to get the firm's name, product, or promotion out to consumers at a reasonable cost (donation of profits/resources).

Quasi-Strategic Greening

Usually involves more substantive changes, for example, redesigning the firm's logo or overhauling a product's packaging, in marketing actions.

Promotions

What most people think of when asked to describe marketing. Successful promotion involves the firm's ability to integrate its promotional activities in a way that maximizes the value of each.

Sustainable Competitive Advantage

What resources/abilities does the firm have that are difficult to duplicate & that provides a superior long-term position over competitors.

Marketing to Children

Young people are a growing audience for marketers as they are increasing in their buying power, venerable & susceptible to manipulations (Firms seek to build brand loyalty)