Marketing Final

What is cause marketing?

A formal practice that occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products -Distinguished from charitable contributions (outright donations) because consumers choose to support a cause by purchasing the product -Incorporates all 3 concepts of social responsibility by addressing public concerns and satisfying customer needs, often enhancing corporate sales and profits.

What is branding?

A basic decision in marketing products in which an organization uses a name, phrase, design, symbols, or a combination of these to identify its products and distinguish them from their competitors.

What is a market?

A market is a medium that allows buyers and sellers of a specific good or service to interact in order to facilitate an exchange.

What is cognitive dissonance?

A feeling of post-purchase psychological tension or anxiety -To alleviate it consumers often search for information to reinforce their purchase decision

What is the difference between customer needs and wants?

A need is when a person feels physiologically deprived of basic necessities like food, clothing, shelter, A want is a felt need that is shared by a person's knowledge, culture, and personality

What does competitive advantage mean?

A unique strength relative to competitors that provide superior returns, often based on quality, time, cost, or innovation.

What are the five promotional elements? What are some of their strengths, weaknesses?

Advertising-Any paid form of non-personal communication about an organization, product or service Strengths: Efficient means for reaching large numbers of people Weaknesses:High absolute costs Difficult to receive good feedback Personal Selling-A two way flow of communication between a buyer and a seller designed to influence a purchase decision Strengths: Immediate feedback, Very persuasive, Can select audience, Can give complex information Weaknesses: Extremely expensive per exposure. Messages may differ between salespeople Public Relations-Communication management that seeks to influence the feelings, opinions or beliefs of a potential customer Strengths: Often most credible source in the consumer's mind Weaknesses: Difficult to get media cooperation Sales Promotion-Short term inducement of value offered to arouse interest in buying a product or service Strengths: Effective at changing behavior in short run, Very flexible Weaknesses: Easily abused, Can lead to promotion wars, Easily duplicated Direct Marketing-Uses direct communication with consumers to generate a response in the form of an order, request for more information or a store visit Strengths: Messages can be prepared quickly, Facilitates relationship with customer Weaknesses: Declining customer response, Database management is expensive

What is a product?

An article or substance that is manufactured or refined for sale

What are some of the different types of sales promotion?

Coupons Deals Premiums Contests Sweepstakes Samples Loyalty programs Point-of-purchase display Rebates Product placements.

What is the definition of marketing?

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

What is public relations/publicity?

Publicity tools consist of methods of obtaining non-personal presentation of an organization, good, or service without direct cost. Examples include news releases, news conferences,public service announcements and personal appearance.

What is the difference between push and pull strategies?

Push Strategy—directing the promotional mix to channel members (distributors) to gain their cooperation in ordering and stocking Pull Strategy—directing promotional mix at ultimate consumers to encourage them to ask retailers to stock a product

What are some different techniques for collecting primary data?

Questionnaire data (asking people) , Observational data (watching people), Social media, panels and experiments, information technology, data mining

What is positioning? What are some different types of positioning?

The place a product occupies in consumers' minds based on important attributes relative to competitive products. Differentiation positioning: Seeking a less competitive, smaller market niche. Head to head positioning: with competitors on similar attributes in the same target market. (240(

What is a brand extension?

The practice of using a current brand name to enter a different product class.

Conditions necessary for marketing to occur

(1) two or more parties (individuals or organizations) with unsatisfied needs, (2) a desire and ability on their part to be satisfied, (3) a way for the parties to communicate and (4) something to exchange.

What is a marketing exchange

Trade of things of value between a buyer and a seller. Each is better off after the trade

Retailing

includes all activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use (Retailing is the act of providing the end consumers with a product or service)

What are Porter's four generic business strategies?

(1) Cost leadership strategy, which focuses on reducing expenses and, in turn, lowers product prices while targeting a broad array of market segments. (2) Differentiation strategy, which requires products to have significant points of difference to charge a higher price while targeting a broad array of market segments. (3) Cost focus strategy, which involves controlling expenses and, in turn, lowering product prices targeted at a narrow range of market segments. (4) Differentiation focus strategy, which requires products to have significant points of difference to target one or only a few market segments.

The Five Environmental Forces (CREST):

1. Competitive Forces: Alternative firms that could provide a product to satisfy a specific market's need. Each company must consider its present and potential competitors in designing its marketing strategy. 2. Regulatory Forces: Restrictions state and federal laws place on business with regard to the conduct of its activities. Exists to protect companies as well as consumers. 3. Economic Forces: The income, expenditures, and resources that affect the cost of running a business and household. There is a macroeconomic view of the marketplace and a microeconomic perspective of consumer income. 4. Social Forces: Include the demographic characteristics of the population and its culture. Changes in these forces can have a dramatic impact on marketing strategy. 5. Technological Forces: Innovations or inventions from applied science or engineering research. Each new wave of technological innovation can replace existing companies and products.

What are the three different types of marketing research?

1. Exploratory: provides ideas about vague problem 2. Descriptive: generally involves trying to find the frequency with which something occurs or the extent of a relationship between two factors 3. Causal: tries to determine the extent to which the change in one factor changes another one

What are the four quadrants used in diversification analysis?

Ansoff's Matrix - Diversification analysis that helps a firm search for growth opportunities from among current and new markets as well as current and new products. o Market penetration: Increase sales of current products in current markets à Selling more Ben & Jerry's Bonnaroo Buzz Fair Trade-sources ice cream to US consumers o Market development: Sell current products to new markets à Brazil is an attractive new market for Ben & Jerry's o Product development: Selling new products to current markets à Ben & Jerry's could leverage its brand by selling children's clothing in the United States o Diversification: Developing new products and selling them in new markets à Ben & Jerry's clothing in Brazil PRODUCTS Current New MARKETS Current Mkt Penetration Prod. Develop. New Mkt Development Diversification

What are the four quadrants in the BCG portfolio analysis?

Boston Consulting Group Matrix - Business portfolio analysis. The Vertical axis is the market growth rate. The Horizontal axis is the relative market share. o Question marks are SBUs with a low share of high-growth markets. They require large injections of cash just to maintain their market share, much less increase it. • Apple Watch o Stars are SBUs with a high share of high-growth markets that may need extra cash to finance their own rapid future growth. • iPhone 6 o Cash cows are SBUs that have dominant shares of slow-growth markets and provide cash to cover the organization's overhead and to invest in other SBUs. • iPad/iPad Mini o Dogs are SBUs with low shares of slow-growth markets. Dropping SBUs that are dogs may be required if they consume more cash than they generate. • iPod/iPod Touch o Organization's SBUs often start as a question mark and go counterclockwise around to become stars, then cash cows, and finally dogs.

What does shifting the demand curve mean?

Changes in income, preferences, availability in substitutes. Shift to the right is an increase in Quantity demanded.

What is the difference between direct and indirect channels?

Direct marketing is an advertising strategy that physically deals and communicates with the consumer, while indirect marketing advertises in quantity by mass media outlets, such as Internet, TV and radio ads.

What are some different ways to segment?

Geographic, Demographic, Psychographic, Behavioral. (233)

What is the difference between a goal, strategy, and tactic?

Goal- Statements of an accomplishment of a task to be achieved, often by a specific time. Strategy- Strategy is the way you are going to reach your goal. For example, marketing a product to a certain type of user is an example of a strategy. Tactics- How will you do it. Each tactic is an individual step, for example, a company lowering the price of a share is a tactic.

What is green marketing?

Green marketing is a marketing effort to produce promote and reclaim environmentally sensitive products. -3M removing a chemical that builds up in human cells from their product before any possible damage could occur -Wal-Mart buying packaging made from corn, not oil-based resins. -Voluntary responses to environmental issues that often result in cost savings

What is market share?

Increase ratio of sales revenue of the firm to the total of all firms including the firm itself

What is a Marketing Channel?

Individuals or firms involved in process of making good available

What are the four I's of service marketing

Intangibility Inconsistency Inseparability Inventory

What is IMC?

Integrated Marketing Communication—the concept of designing marketing communication programs that coordinate all promotional activities (advertising, personal selling, public relations, sales promotion, direct marketing) to provide a consistent message across all audiences (combined marketing effort to send a consistent message across all mediums to all audiences)

What is intensive distribution, exclusive distribution, and selective distribution?

Intensive Distribution: where a company sells through as many outlets as possible, so that the consumers encounter the product virtually everywhere they go: supermarkets, drug stores, gas stations, and the like. Soft drinks are generally considered to be intensively distributed. Exclusive Distribution: when a supplier grants a distributor exclusivity of the sale of the contract goods or services within a territory, or to a specific group of customers. In exchange, the distributor will usually agree to sell goods or services of the supplier's competitors. Selective Distribution: a type of distribution that lies between intensive and exclusive distribution. This basically involves using more than one, but lesser than all the intermediaries who carry the company's products.

What makes a marketing segment legitimate?

Market size needs to be big enough, there needs to be expected growth, the firm needs to have a competitive positon in the market, the cost of reaching the segment must be relatively low, and it needs to be compatible with the organization's objectives and resources.

How do promotional objectives change with the product life cycle?

Introduction Stage—informing consumers—all promotional mix elements are used Growth Stage—persuade the consumer to buy the product rather than substitutes—primary promotional element is advertising (stresses brand differences), personal selling is used to solidify channel of distribution, sales promotion and publicity less important Maturity Stage—maintain existing buyers—direct marketing actions, sales promotion Decline Stage—phase out of the product—little money is spent on the promotional mix

What are the four stages of the product life cycle?

Introduction, Growth, Maturity and Decline

What are the marketing objectives for each stage of the product life cycle?

Introduction- product is first introduced to its intended target market. During this period sales growth is slow and profit is minimal. The marketing objective is to create consumer awareness and stimulate trial (the initial purchase of a product by a consumer). Advertising costs are usually high at this stage. Growth- During the growth stage the company sees an increase in sales. The company begins to see competitors so it is important to differentiate themselves from their companies. Sales growth is increasing and company starts to see repeat purchasers. Products may change as a part of the company's differentiation, such as new features or updated versions. More distribution is important. Maturity- The product sales begin to slow which and profit declines. Marginal competitors begin to leave the market. Most consumers are repeat purchasers. Marketing efforts are focused toward holding market share through further product differentiation and finding new buyers and uses. Decline- The decline stage occurs when sales drop. Once in the decline stage of their product life tend to consume a disproportionate share of management and financial resources relative to their future worth. A company will either a declining product by either deletion or harvesting.

What is a customer value proposition?

It's a business or marketing statement that describes why a customer should buy a product or use a service

What is logistics and supply chain management?

Logistics: Involve planning, delivering, and controlling the flow of physical goods, marketing materials and information from the producer to a market as necessary to meet customer demands while still making a satisfactory profit. Supply Chain Management: (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer.

What is multichannel marketing?

Multichannel marketing is the ability to interact with potential customers on various platforms, such as through a print ad, retail location or a website

Non-Store Retailing

Occurs outside a retail outlet through activities that involve varying levels of customer and retailer involvement (Does not involve brick and mortar stores) • Automatic Vending • Direct Mail and Catalogs • Television Home Shopping • Online Retailing • Telemarketing • Direct Selling

What is social responsibility?

Organizations are part of a larger society and are accountable to that society for their actions. -Balance of the diversity of values present in different societal, business, and corporate cultures

What is price elasticity, difference between inelastic and elastic demand?

Price elasticity is a measure of how much consumer demand for a product changes in response to changes in price. A product with elasticity greater than 1 is considered to be elastic. Thus, when elasticity is less than 1, it is considered inelastic.

What are the advantages & disadvantages of primary research, secondary research?

Primary advantages: More flexibility, more specific to the problem being studied. Disadvantages: More expensive than secondary, more time consuming. Secondary advantages: Cheaper, Less time consuming, Disadvantages: Less accurate, might not be quite right for the research project.

What are search experience & credence properties?

Search Products- attributes customers can readily evaluate before they purchase Experience Products- can be evaluated only after purchase. They are more differentiate than Search Products. Credence Products- Have attributes customers cannot evaluate even after purchase. Customers rely on reputation of the brand name, testimonials, service quality and price. They are likely to be customized. Examples- Healthcare, Accounting and IT

What is the difference between secondary and primary data?

Secondary data are facts and figures that have already been recorded prior to the project at hand, whereas primary data are facts and figures that are newly collected for the project

What is market segmentation?

Seperating prospective buyers into groups that have common needs and will respond similarly to a marketing action. This allows firms to use product differentiation, allowing them to use different marketing mix actions, such as product features and advertising, to help consumers perceive the product as being different and better than competing products. (224)

What are the definitions of each pricing strategy—skimming, penetration, prestige?

Skimming: product pricing strategy by which a firm charges the highest initial price that customers will pay. As the demand of the first customers is satisfied, the firm lowers the price to attract another, more price-sensitive segment Penetration: Low price initially to lure customers from competitors Prestige: the practice of giving a product a high price to convey the idea that it must be of high quality or status.

What are the four components of a SWOT analysis?

Strengths (internal), weaknesses (Internal), Opportunities (External), and Threats (External)

What are some of the different types of advertising?

Television ( Reaches extremely large audience, uses picture, print, sound, and motion for effect, can target specific audience) Radio Magazines Newspaper Yellow Page Internet outdoor Direct mail

What is the BCG portfolio analysis, how can it be used?

The BCG matrix is a helpful tool that can identify where a company is within an industry.

What is a SWOT analysis used for?

The SWOT analysis is used to evaluate a company. Analyzing a company Internal and External factors.

What is brand equity?

The added value of a brand name that gives a product beyond the functional benefits provided.

What are the five stages in the consumer behavior process?

o Problem recognition o Information search o Alternative evaluation o Purchase decision o Postpurchase behavior • Types of problem solving (level of involvement) • High involvement—expensive, serious personal consequences, could reflect on one's social image • Low involvement—routine or regular purchases -If competitor is a market leader—maintain quality, avoid stockouts, use repetitive advertising - If competitors is a market challenger--must change habits through free samples, coupons, rebates

What is the difference between Depth and Breadth of product lines?

the store carries a large assortment of each item, such as a show store that offers running shoes, dress shoes, and children's shoes (A large assortment of a single type of item) refers to the variety of different items a store carries, such as appliances and books (Many products being sold in a single place)

What are the four types of branding strategies?

• 1. Multiproduct Branding A. One company makes a lot of products i. Arm and hammer baking soda 2. Multibranding strategy A. One company makes different products under different brands i. Proctor and Gamble; tide, cheer 3. Private Branding strategy A. Product that is exclusively manufactured for a retailer i. Sears sells Kenmore 4. Mixed branding strategy A. Firm markets products under own name and that of the reseller because the segment attracted to eh reseller is different from its own market i. Dial sells soap, pet food