Marketing Quiz 2 Content

What is the conversion rate according to Step 4: Purchase? KNOW

percentage of consumers who buy a product after viewing it in a store or online Marketers focus is to increase conversion rate

What is corporate social responsibility (CSR)?

voluntary actions taken by a company to address its triple bottom line

Maslow's at Starbucks example

"Good marketers add value to their products by nudging people up the needs hierarchy and offering information on as many of the pyramid needs as they can"

What are the 4 stakeholders marketing benefits?

Employees Employees Their families Customers Current customers Potential customers Society Community Environment Marketplace Partners Competitors

What is the ESG?

Environmental Planet Social People Governance Financial

What is the evaluative criteria for the evaluation of alternatives?

Evaluation Criteria and Determinant attributes

What are marketing ethics?

Examines ethical situations specific to marketing domain

An appliance company has made a name for itself in the community. It is known for its environmental-responsibility efforts and thoughtful decisions that show it is concerned with more than just making a profit. It can be said that this company demonstrates A. unrelated diversification. B. conscious marketing .C. a production standard. D. the 4 Ps. E. related diversification.

Example Quiz Question: B. conscious marketing. Conscious marketing entails a sense of purpose for the firm that is higher than simply making a profit by selling products and services. It consists of four main principles: a greater purpose, consideration of stakeholders, conscious leadership and culture, and ethics.

Conscious Marketing VS CSR (Conscious Marketing)

Incorporates higher purpose and a caring culture Takes a holistic, ecosystem view of business as a complex adaptive system Puts social responsibility at the core of the business through the higher purpose and views the community and the environment as stakeholders Recognizes that business is a subset of society, and that society is a subset of the planet

Review this again phases

PHASE 1 - Planning In firm's mission statement include phrases reflective of conscious marketing Publish code of conduct CSR report & Set employee goals reinforcing values PHASE 2 - Implementation When developing marketing mix, should firm: oTarget this market with this product? oRelocate production to another country? oSell products in this market in this manner? PHASE 3 - Control Evaluate actions from a conscious-marketing perspective Prepare emergency response for lapses Evaluate managers' performance

What are the 4 consumer behavior principles? KNOW

Perception Product packaging Internal (perhaps external) store environment Placement of advertising Learning and associative networks Desired imagery, music, personalities associated with brand identity Motives(Maslow's hierarchy of needs) Advertising messages Lifestyle How to segment the market

What are the 5 risks considered with involvement and problem solving?

Performance Physiological Financial Social Psychological the higher the risk, the more likely the high involvement

What is need recognition?

Need recognition results from gap between actual state and desired state Consumer's exposure to stimulus triggers need recognition

What are the social factors: reference groups for Step 3 of the evaluation criteria?

One or more person whom you use as basis for comparison about feelings, beliefs, behaviors You can have multiple reference groups

What is the psychological factor of learning?

Previous experiences we've had with a brand positive or negative influence our decision making

What is a motive?

When a need becomes strong enough to cause a person to seek satisfaction

What are social factors: culture?

"Society's personality" : shared meaning, beliefs, morals, values, customs Ex Rituals within a culture influence purchases such as football tailgating (food clothing) and holidays (Valentine's Day, Christmas)

What are the 3 steps of sensation?

1. Exposure Do you notice the stimulus? 2. Attention To what extent do you process stimulus? 3. Interpretation What meaning do you assign to the stimulus? To what extent does the consumer interpret the message as the marketer intended?

What are the four principles of conscious marketing?

1. Marketing should have a purpose greater than only creating shareholder value 2. We should consider stakeholders beyond shareholders 3. Conscious leaders should be deliberate about the corporate culture they create 4. Our decisions should be ethically based

What are the most common ethics violations in the workplace?

1. Misusing company time 2. Abusive behavior 3. Employee theft 4. Lying to employees 5. Violating company's internet-use policies

What is the five step process of the consumer decision process?

1. Need/ Recognition Need type: functional psychological Decision type: high or low involvement 2. Information search Focus Perceived benefits and costs Locus of Control Risks 3. Alternative evaluation Attribute set Evaluation criteria Consumer decision rules 4. Purchase and consumption Conversion Abandonment 5. Post Purchase Satisfaction Dissonance Loyalty Negative word of mouth

What is the five step process that gets us from needy to the future satisfied state?

1. Need/Recognition 2. Information search 3. Alternative evaluation 4. Purchase and consumption 5. Post-Purchase

What are the steps of the evaluation of alternatives?

1. Product Category Identifies the type of product to purchase Product category is a group of similar products that share related characteristics such as passenger vehicles, chocolate chip cookies, resort hotels in Hawaii 2. All brands Universal set Consumers organize and categorize alternatives to aid their decision process 3. Known brands Retrieval set Unknown brands Marketers aim to get their brands into customer's retrieval set and ultimately the evoked set 4. Accepted brands Evoked set Unacceptable brands Indifferent brands Overlooked brands Marketers aim to get into the evoked set 5. Purchased brand Not purchased brand

What is the 4 step process of need recognition

1. Stimulus as a trigger 2. Actual needy state 3. Pathway options used to bridge the needy-satisfied gap to the want-got gap 4. Future satisfied state

What is Maslow's hierarchy of needs?

5. Self Actualization Self fulfillment 4. Ego Needs Prestige status 3. Belongingness Love, Friendship 2. Safety Security, Shelter, Protection 1. Physiological Water, sleep, food Our needs must be fulfilled in order from the bottom of the pyramid Numerous psychologists have tried to define a universal inventory of needs they could trace systematically to explain virtually all behavior

Example Quiz Question: How might a technology company like Apple ensure that it behaves in a socially responsible way toward its customers? A. It can protect the privacy of personal information collected on its website. B. It can adhere to government-mandated safety standards in its stores. C. It can ensure that it pays its employees fairly. D. It can ensure that its packaging materials are recyclable. E. Social responsibility isn't relevant where customers are concerned; it has to do with serving society.

A. It can protect the privacy of personal information collected on its website. Obeying the law when it comes to safety isn't enough to be considered socially responsible—the firm is simply behaving legally. Using recyclable materials would be a socially responsible practice, but it serves society (the environment), not specifically customers. Similarly, fair pay practices serve employees, not specifically customers. Apple can exhibit socially responsible behavior toward customers by treating their personal information with respect.

Example Quiz Question: CSR can be described as a firm's voluntary actions and policies, taking stakeholders' expectations into account, to achieve what is referred to as the triple bottom line. The triple bottom line includes ________ performance. A. economic, social, and environmental B. economic, social, and political C. financial, economic, and social D. social, environmental, and political E. financial, social, and environmental

A. economic, social, and environmental One definition describes CSR as context-specific actions and policies, taking stakeholders' expectations into account, to achieve what is referred to as the triple bottom line: economic, social, and environmental performance.

What is the compensatory decision rule in Step 3 of evaluation criteria?

All determinant attributes have some influence on decision: "trade off" between good and bad attributes - good compensates for bad

What is evaluative criteria for Step 3 Evaluation of Alternatives?

All features and benefits that a consumer considers as relevant to their decision

Mcdonald's Global Expansion example

Also sushi and yogurt example due to globalization

What are some business ethics example issues?

Astroturfing: paying seemingly "impartial" reviewers to post positive reviews about your product on amazon.com and other sites Buying social media followers Photoshopping photos so they're no longer authentic representations Making a deceptive comparison to a competitor's product Making "limited time offers" when the offers aren't limited by time

Example Quiz Question: How might a technology company like Apple ensure that it behaves in a socially responsible way toward its employees? A. It can pay at least minimum wage when the law requires it. B. It can adhere to government-mandated safety standards in the workplace. C. It can ensure that pay practices are fair at all levels of the company. D. It can ensure that its packaging materials are recyclable. E. Social responsibility isn't relevant where employees are concerned; they are paid for their work and that's enough.

C. It can ensure that pay practices are fair at all levels of the company. Obeying the law when it comes to minimum wage and safety isn't enough to be considered socially responsible—the firm is simply behaving legally. Using recyclable materials would be a socially responsible practice, but it serves society (the environment), not specifically employees. By ensuring fair pay practices, though, Apple would be treating its employees in a socially responsible manner.

What is Stakeholders Capitalism?

Companies not only optimize short-term profits for shareholders but seek long-term value creation by taking into account the needs of all their stakeholders, and society at large.

What is sensory marketing?

Companies think carefully about impact of sensation on product experiences Ex Omni Hotels Soft chimes play on website, scent of lemongrass Marketers messages are more effective when they appeal to several senses Ex Potato chip only mentioned taste better alternative mentioned smell and textures meaning it will taste better

What are the 2 consumer decision rules?

Compensatory decision rule and Non-compensatory decision rule

What do Conscious Leaders do to make the purpose personal?

Conscious leaders inspire their employees to think beyond their functional role and help them understand the deeper purpose of their work

What is a pathway?

Consumer closes gap by selecting a "pathway" typically from various options pathway options get us from needy to future satisfied

What are the factors of involvement and problem solving?

Cost of product Frequency of purchase Actual or perceived risk Benefits vs cost of search Locus of Control Special occasion Could be example quiz question

What are the 3 parts of post purchase outcomes for Step 5: Purchase?

Customer satisfaction Customer had a good experience likely to return Customer loyalty Marketers attempt to solidify relationship use analytics software for customer relationship management (CRM) to retain loyal customers Cognitive Dissonance (Buyers Remorse) Most likely for expensive infrequently purchased products not work as intended with negative word of mouth dissatisfied customers likely to complain Less expensive to bring back consumers rather than get new ones

Example Quiz Question: How might Seattle's Best coffee company ensure that it behaves in a socially responsible way toward members of its supply chain? A. It can pay its employees minimum wage as required by law. B. It can use cups made from recycled paper .C. It can offer healthy drinks and snacks in its stores. D. It can purchase coffee beans from importers who pay coffee growers a fair price. E. Social responsibility isn't relevant where channel partners are concerned; it has to do with serving society.

D. It can purchase coffee beans from importers who pay coffee growers a fair price. Most of these are reasonable social responsibility initiatives but serve stakeholders other than channel partners. By choosing a socially responsible coffee bean supplier and paying a fair price, Seattle's Best behaves in a socially responsible manner toward its suppliers, who are part of the supply chain.

How is your marketing mix determined?

Decided by what your target market values either functional or psychological needs ex Rolex psychological

Know these two questions

Describe how ethics constitute an integral part of a firm's conscious marketing strategy. Identify the four steps in ethical decision making.

What is successful marketing?

Determine the correct balance of needs that best appeal to your target marker Design a marketing mix to meet those needs

What are the two key questions to make a purchase regarding psychological factors?

Do we actually recall the brand (brand awareness) What do we think about the brand? (brand image)

What steps does low involvement not include in the decision making process?

Does not include Step 2 Information Search Step 3 Alternative evaluation Low Involvement Process 1. Need Recognition 4. Purchase and consumption 5. Post purchase

What is the triple bottom line for corporate social responsibility?

Economic Profit Social People Environmental Planet Pneumonic ESE

What is shareholder capitalism?

Free enterprise, private property system a corporate executive is an employee of the owners of the business Direct responsibility to his employers Responsibility is to conduct the business in accordance to their desires which is to make as much money as possible according to the rules of society

What are the two types of consumer needs?

Functional needs Psychological needs

What are the two major categories of decisions?

High involvement - Extended problem solving Low Involvement - Limited problem solving

What are the internal aspects of locus of control?

I make things happen

What are the sources for information for Step 2 of the decision making process (Search for Information)?

Internal Buyer examines and knowledge about product gather from past experiences: learning (associative networks) External non-marketing - controlled information source Buyer seeks information outside their own knowledge base through sources not associated with marketers promoting a product such as family and friends External marketing - controlled information source Buyer seeks information through source originating with marketers promoting product

Conscious Marketing VS CSR (CSR)

Is independent of corporate purpose or culture Reflects a mechanistic view of business Is often grafted onto traditional business model usually as a separate department or part of PR Sees limited overlap between the business and society, and between business and the planet

What is perception?

Is process by which people select, organize and interpret these sensations

What part of the Ansoff Matrix does Global Marketing focus on?

Market development

What are the four overriding principles of conscious marketing highlighted by the textbook and discussed in class?

Marketing should have purpose greater than only creating shareholder value We should consider stakeholders beyond shareholders Conscious leaders should be deliberate about the corporate culture they create Our decisions should be ethically based

What are 3 examples of reference groups? KNOW

Membership reference group (people you know)- schools friends, clubs, associations religious organizations Aspirational reference group (people we don't know but admire) - celebrities, influencers Avoidance group (people you don't want to become like)

What are the non-compensatory decision rules in Step 3 of evaluation criteria?

Products must possess a particular attribute: "I reject any option that doesn't have this particular attribute" - good CAN'T compensate for bad

What are the 3 situational factors for a purchase for step 5 Purchase?

Purchase Situation Customers may be predisposed to purchase certain products, but the situation may change the approach. Shopping situation In-store environment while shipping Temporal state State of mind while in a purchase situation

What are the 5 enablers of Globalization? KNOW

Reductions or eliminations of trade barriers Advances in telecommunications Decreased transportation costs Rise of multinational corporations Convergence of consumer tastes ex sushi

What is the description of business ethics?

Refers to a branch of ethical study that examines: ethical rules and principles within a commercial context the various moral or ethical problems that might arise in a business setting any special duties or obligations that apply to persons engaged in commerce

What are consumer decision rules?

Rules that follow consciously or subconsciously to select from among several alternatives

Who are the 7 stakeholders in a business?

Shareholders Lenders Customers Suppliers Employees State and Society Economy

Read this

Stakeholder capitalism is here to stay: 41% of companies think companies should put shareholders last and prioritize their employees and companies

What is the 50 years of tension according to stakeholder capitalism?

Stakeholder capitalism vs. shareholder primacy

What is ethics decision-making framrwork?

Step 1 Identify Issues Step 2 Gather information and identify stakeholders Step 3 Brainstorm and evaluate alternatives Step 4 Choose a course of action

What are the 4 steps of need recognition?

Stimulus as Trigger Actual needy state Pathway Options (Needy Satisfied gap to want-got gap) Future Satisified State

What is consumer behavior?

Study of processes involved when individuals or groups select, purchase, use or dispose of products to satisfy needs

What are determinant attributes for Step 3 Evaluation of Alternatives?

The most important evaluative criteria related to the actual choice made

What is globalization?

The process of which goods, services, capital, people, information, and ideas flow across national borders

What are the external aspects of locus of control?

Things happen to me

What is the associative network memory model?

Those experiences stored in our memory as association to the brand - and are considered learning

Do consumers prioritize these needs differently?

Yes

Define the role of shareholders in a corporation

are owners of corporation, with direct financial interest in performance of corporation; elect members of Board of Directors

What is conscious marketing?

entails a sense of purpose for the firm that's higher than simply making a profit by selling products.

Define the role of the Board of Directors in a corporation

has ultimate responsibility for oversight of corporation's business and affairs; elected by shareholders Select, determine compensation of, and replace senior management Oversee conduct of business by senior management Approve major plans proposed by senior management

What are examples of internal stimuli?

hunger thirst

What is a consumers lifestyle according to the psychological factors?

pattern of consumption reflecting how a consumer spends time and money -- influences their identity and future purchasing decisions

What is sensation?

refers to the immediate response of our sensory receptors (eyes, ears, nose, mouth, skin) for basic stimuli such as light, sound, odor, and taste

What are psychological needs?

relates to personal gratification

What are functional needs?

relates to product performance

Define the role of Senior Management in a corporation

runs day-to-day business operations and informs BoD of status; hired by BoD Develop and implement strategic plans Develop and operate within annual plans and budgets Maintain efficient management and structure Manage risks and establish internal controls

What are examples of external stimuli?

social media post, TV ad, friends comment, broken profession, product placement in movie, medical diagnosis the stimuli trigger a needy state and you are trying to get to a future satisfied state

Why is it important for marketers to understand consumer behavior?

the overarching theme for marketing is personalization and customization the more you know target consumers behave the more you can customize and personalize the more likely you are to have a successful sale

What are example issues of marketing ethics

§Astroturfing: paying seemingly "impartial" reviewers to post positive reviews about your product on amazon.com and other sites §Buying social media followers §Photoshopping photos so they're no longer authentic representations §Making a deceptive comparison to a competitor's product §Making "limited time offers" when the offers aren't limited by time