MKT 300

Situational Involvement

Temporary or dynamic involvement resulting from a particular set of circumstances example: need to buy a new car after being in an accident

Strategic Planning

The Process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, marketing strategy, and marketing plan. -Should be guided by a market orientation

Marketing Environment Defintion

The Six forces that surround the customer and affect the marketing mix

Consumer Buying Behaviors

The decision processes and purchasing activities of ultimate consumers, those people who purchase products for personal or household use and not for business purposes

Marketing Strategy

The next step is the development of strategies for each functional area of the organization. Target MarketL selecting an appropriate target market may be the most important decision a company has to make in the strategic planning process Creating the Marketing Mix: All marketing mix decisions should be consistent with the business unit and corporate strategies Sustainable Competitive Advantage: An Advantage that the competition cannot easily copy in the foreseeable future

Environmental Analysis

The process of assessing and interpreting the information gathered through environmental scanning (how you deal with the information collected during scanning)

Environmental Scanning

The process of collecting information about forces in the marketing environment

Oligopoly

When a few sellers control the supply of a large proportion of a product

Monopoly

When an organization offers a product that has no close substitute, making it the sole source of supply

Monopolistic competition

When an organization with many competitors develops a marketing strategy to differentiate its product

Undifferentiated Targeting Strategy

Should be a homogeneous market: customers have similar needs for a product A single marketing mix directed at the entire market

Corporate Identity

Should support all corporate activities - Unique symbols - Personalities - Philosophies

Self Regulatory Forces

Some businesses choose to self-regulate Often use the help of organizations like: -Better business bureau: a system of nongovernmental independent, local regulatory agencies supported by local businesses that help settle problems between customers and specific business firms - National Advertising Review Board (NARB) : a self-regulatory unit that considers challenges to issues raised by the national advertising division about an advertisement

Steps 1-3 for Target Market Selection Process

Step 1: Identify the Appropriate Targeting Strategy Step 2: Determine Which Segmentation Variable to Use Step 3:Develop Market Segment Profiles

Creating the Marketing Plan

-A written document that specifies the activities to be performed to implement and control the organization's marketing strategies - The systematic process of -----assessing marketing opportunites and resources -----Determining objectives -----Defining Strategies -----Establishing guidelines for implementation and control of the marketing program - Written in alignment with corporate and business-unit strategies and is accessible to and shared with all key employees

6 Kinds of Marketing Environments (Have no control over)

1. Economic 2. Political 3. Legal and Regulatory 4. Technological 5. Socio-Cultural 6. Competitve

Influences of the Business Buying Decision Process

1. Environmental -competitive & economic factors, political forces, legal & regulatory forces 2. Organizational Influences -company objectives, purchasing policies/resources 3. Interpersonal -relationships between people 4. Individual -personal characteristics (age, edu. Level, etc.)

Types of Business Purchases

1. New Tasks Purchases- item is purchased to be used to perform a new job/solve a problem 2. Strategy Rebuy- routine purchases of same products under approx. same terms 3. Modified Rebuy- new-task purchase that is changed on subsequent orders or when straight rebuy requirements are modified

Consumer Buying Decision Process (5 Steps)

1. Problem Recognition 2. Information Search 3. Evaluation of Alternatives 4. Purchase Stage 5. Post-Purchase Evaluation

Business Markets

1. Producer Markets-purchase in order to make a profit by using them in producing other products in their operation 2. Reseller Markets-wholesalers who buy finished good and resell them for profit 3. Government Markets-federal, state, country, local governments that buy goods and services to support internal operations ex. prison 4. Institutional Markets-organizations with charitable goals ex. hospitals

Mission Statement

A long-term vision of what the organizations wants to become. - Who are our customers? -What is our core competency?

Corporate Strategy

A strategy that determines the means for utilizing resources in the various functional areas to reach the orgaization's goals - functional areas include marketing, production, finance, R&D, and human resources

Random Sampling

A type of probability sampling in which all units in a population have an equal chance of appearing in a sample

Post-Purchase Evaluation

After purchase, the buyer evaluates the product and is either satisfied or dissatisfied Cognitive Dissonance: a buyer's doubts shortly after a purchase about whether the decision was the right one (often occurs after expensive, high-involvement purchases)

Information Search

After recognizing the problem, the seek out product information Internal search: buyers search their memories for information about products that might solve their problem External search: When an internal search is not sufficient, consumers seek additional information from outside sources (commercials)

Market Orientation

An organization-wide commitment to researching and responding to customer needs Determine what customers want and produce those products

Social responsibility

An organizational's obligation to maximize its positive impact and minimize its negative impact on society

Marketing is the process of A.) promoting products through personal selling and advertising to develop and maintain favorable relationships with customers and stakeholders B.) Creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment C.) Delivering a standard of living to a society D.) Creating, distributing, promoting, and pricing goods, services, and ideas to facilitate the achievement of the firm's objectives E.) Focusing on customers' needs.

B.) Creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment

Philanthropic Responsbilities

Cause-related marketing: the practice of linking products to a particular social cause on an ongoing or short term basis Strategic philanthropy: the synergistic use of organizational core competencies and resources to address key stakeholders' interests and achieve both organizational and social benefits

Segmentation Variables

Characteristics of individuals, groups, or organizations used to divide a market into segments

Purchase stage

Chooses the product or brand to be bought (product availability may influence the decision) Chooses the seller Negotiates the terms of the transaction Makes the actual purchase or terminates the process

Evaluation of Alternatives

Consideration Set: a group of brands within a particular product category that the buyer views as alternatives for possible purchase Evaluative Criteria: objective and subjective product characteristics that are important to the buyers Marketers can influence customers by framing the alternatives in a certain way

Types of Markets

Consumer Markets: Purchasers are household members who intend to consume or benefit from purchased products and do not buy products to make profits Business Markets: individuals or groups that purchase a specific kind of product for resale, direct use in producing other products, using in general daily operations.

Marketing decision support systems (MDSS)

Customized computer software that aids marketing managers in decision making

Discretionary income

Disposable income available for spending and saving after an individual has purchased the basic necessities

Interpreting Research Findings

Drawing Conclusions Data must be Analyzed - statistical interpretation Data require careful interpretation Managers must understand the research results and relate them to a context that permits effective decision making

Social Responsibility and Ethics Improve Marketing Performance

Evidence shows there are long term financial benefits to being ethical and socially responsibility

Consumer Protection Legistion

Federal and state laws - protects people from harm - prohibits hazardous products - Requires information disclosure - aimed at particular marketing activities

Adoption and Use of Technology

Firms must keep up with technology to maintain their status as market leaders -must ensure that their technology is not easily copied Use a technological assessment to learn about and attempt to foresee the effects of new products and processes

Locating and Defining Problems or Research Issues

Focus on uncovering the nature and boundaries of a situation

Market:

Group of people who, as individuals or organizations, have needs for products in a product category ad have the ability, willingness and authority to purchase such products

Differentiated Targeting Strategy

Heterogeneous market Targeting two or more segments with marketing mix for each Advantages: could mean increased sales and uses excess production capacity Disadvantages: production costs are higher

Concentrated Targeting Strategy

Heterogeneous market: individuals or organizations with diverse needs for products in the same class Targeting a single market segment using one marketing mix Advantages: allows specialization and a small firm can compete Disadvantages: Profits fall with demand and difficult to diversify

Production Orientation

Industrial Revolution, improved speed and efficiency Large Increases in available products.

Pure competition

Involves a large number of sellers, no one of which influences price or supply

Sales Orientation

Many products with not enough demand Businesses viewed sales and selling as the main means of increasing profits

Problem Recognition

Occurs when a buyer becomes aware of a difference etween a desired state and an actual condition Speed of consumer problem recognition can be rapid or slow Some consumers are unaware of their problems or needs

Extended problem solving

Occurs when purchasing unfamiliar, expensive, or infrequently bought products

The five major stages of the consumer buying decision process, in order, are

Problem recognition, information search, evaluation of alternatives, purchase, post purchase evaluation

Sample Ethical Issues Related to the Marketing Mix

Product Issue - Covering up defects that could cause harm to a consumer Distribution Issue - Counterfeit products are widespread Promotion Issue - Deceptive Advertising Pricing Issue - Indicting that an advertised sales price is a reduction below the regular price when in fact that is not the case

Marketing Mix

Product Variable Price Variable Destination Promotion Variable

Evolution of Marketing Concept

Production Orientation, Sales Orientation, Market Orientation

Marketing implementation

The process of putting marketing strategies into action - intended strategies: the strategy the organization decides on during the planning phase and wants to use - Realized Strategies: The strategy that actually takes place

Marketing research:

The systematic design, collection, interpretation and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities

Routinized Response

Used when buying frequently purchased, low0cost items that require very little search-and-decision effort

Limited problem solving

Utilized when buying products occasioinally or when one needs to obtain information about an unfamiliar brand in a familiar product category

Value-Driven Marketing

Value: a customer's subjective assessment of benefits relative to the costs in determining the worth of a product (customer benefits-customer costs)

The Marketing Concept

a management philosophy that an organization should try to provide products that satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals - Not a second definition of marketing or philanthropic philanthropy - A firm must satisfy its own objective

In which of the following situations is the marketer selling an idea, rather than a service or a good? a) The Green Party holds a press conference to let the public know its views on capital punishment b) Charity organization Friends of Families publicizes its charitable activities in African countries to collect funds c) Skin-So-Soft Salons offer consultations to help customers determine their skin type and the products best suited for their skin d) GreenLawns is a private school that focuses on arts and the humanities in addition to traditional subjects e) BlueGray Jeans markets its jeans using a famous actor in its advertisements, to convey an impression of ruggedness and durability

a) The Green Party holds a press conference to let the public know its views on capital punishment

The purchase manager of a cake and pastries store wanted to purchase supplies of milk. He told the seller that he wanted the cow's milk that contained at least 10% fat. Which of the following methods of business buying did the purchase manager use? a) description b) inspection c) sampling d) straight rebuying e) negotiation

a) description

The amount of money left after payment of taxes that is used by individuals for spending on purchase of basic necessities, and savings is referred to as a) disposable income b) wealth c) discretionary income d) income e) credit

a) disposable income

To monitor changes in the marketing environment effectively, marketers must engage in a) environmental scanning and analysis b) economic scanning c) self-regulatory analysis d) marketing research analysis e) information collecting

a) environmental scanning and analysis

The group of brands buyer views as possible alternatives is known as the _____. a) evoked set b) evaluative criteria c) product family d) inert set e) marketing mix

a) evoked set

An unplanned buying behavior resulting from a powerful urge to buy something immediately is called a) impulse buying b) habitual buying c) compulsive response behavior d) non-problem solving e) cognitive dissonance

a) impulse buying

Which of the following is a characteristic of pure competition? a) large number of sellers b) differentiation of products c) large number or entry barriers d) few competitors e) no product substitutes

a) large number of sellers

The term ____ refers to the principles and standards that define acceptable conduct in marketing as determined by various stakeholders. a) marketing ethics b) relationship marketing c) customer-centric marketing d) green marketing e) sustainable marketing

a) marketing ethics

The process of putting marketing strategies into action is called a) marketing implementation b) marketing control c) marketing action d) marketing auditing e) the marketing action plan

a) marketing implementation

Groups of individuals and/or organizations that need products in a product class and have the ability, willingness, and authority to purchase those products are called ___. a) markets b) suppliers c) shareholders d) investors e) competitors

a) markets

Many suppliers an their customers invest time and resources to build and maintain mutually beneficial relationships which are often called a) partnerships b) co-ops c) monopolies d) reciprocity e) alliances

a) partnerships

An overall plan for obtaining the information needed to address a research problem or issue is called the a) research design b) problem recognition c) hypothesis d) data collection method e) sampling procedure

a) research design

____ Describes the tendency of people to reject information that is inconsistent with their beliefs, even when presented with information to the contrary a) selective distortion b) selective retention c) selective exposure d) framing e) closure

a) selective distortion

Disposable Income

after-tax income

Reciprocity

an arrangement in which 2 organizations agree to buy from each other Reciprocal Agreements: threaten competition, are illegal but sill happen

All companies have a responsibility to _____ so they can provide a return on investment to their owners and investors, create jobs for the community, and contribute goods and services to the economy a) offer the lowest price b) be profitable c) obey their customers d) provide the largest selection possible e) pay employees more than minimum wage

b) be profitable

The practice of linking products to a particular social cause on an ongoing or short-term basis is known as: a) target marketing b) cause-related marketing c) relationship marketing d) customer-centric marketing e) sustainable marketing

b) cause-related marketing

George, the purchase manager for a car manufacturing company, was asked to collect the specification of a new engine part form the production manager and the vendor specifications form the other departments before placing an order with a supplier. He was also asked to create the procedures for future purchases of the particular engine part that would help increasing the car's mileage. Which of the following types of business purchase is the company going making? a) negotiation b) new-task purchase c) straight rebuy purchase d) modified rebuy purchase e) sampling

b) new-task purchase

Most marketers operate in a competitive environment of either a) oligopoly or monopoly b) oligopoly or monopolistic competition c) oligopoly or pure competition d) monopoly or pure competition e) pure competition or monopolistic competition

b) oligopoly or monopolistic competition

For the purpose of marketing research, Joe picked up the telephone directory and just selected a few numbers from it to form his sample. Joe is using ____ sampling to select the participant for his research. a) non-probability b) random c) stratified d) quota e) core

b) random

Employees, customers. communities, and investors are all considered ______ in relation to marketing. a) responsibilities b) stakeholders c) shareholders d) constituents e) owners

b) stakeholders

Distribution, price, promotion, and product are all elements of a) marketing strategy b) the marketing mix c) a target market d) a consumer good e) a business strategy

b) the marketing mix

Which of the following is a geographic variable for segmentation of a market? a) Family size b) Benefit expectations c) City Size d) Lifestyle e) Gender

c) City Size

An organization's goals should be based on its ____, which is a long-term view or vision of what the organization wants to become. a) SWOT analysis b) Marketing plan c) Mission statement d) strategic window e) sustainable competency

c) Mission statement

The marketing plan is a) a plan of all aspects of an organization's business strategy b) written differently for each SBU c) a written document detailing activities to be performed to implement and control marketing actions d) designed to specify not only marketing, but all other functional areas of business activities as well e) updated only periodically

c) a written document detailing activities to be performed to implement and control marketing actions

Procter & Gamble's superb marketing distribution skills and R&D capabilities in five core technologies (fats, oils, skin chemistry, surfactants, and emulsifiers) have enabled it to build a strong reputation in the marketplace and drive down competition. It can be said that these skills and capabilities are examples of Procter & Gamble's: a) Market opportunities b) marketing plan c) core competencies d) strategic windows e) marketing objectives

c) core competencies

____ are the focal point of all marketing activities a) products b) advertisements c) customers d) brands e) retailers

c) customers

____ is the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities a) marketing ethics b) codes of conduct c) marketing research d) market planning e) A SWOT analysis

c) marketing research

Marketing Research is a process designed to gather information a) exclusively about a company's customers b) from the company's database c) not currently available to decision makers d) about the needs and desires of employees e) Concerning the interpretation of the company's sales goals

c) not currently available to decision makers

____ Refers to the potential for the long-term well-being of the natural environment, including all biological entitles, as well as the interaction among nature and individuals, organizations, and business strategies a) consumerism b) Multicultural marketing c) sustainability d) real-time marketing e) strategic philanthropy

c) sustainability

Which of the following is characteristic of the prosperity stage of the business cycle a) there is high amount of unemployment b) the buying power of consumers is low c) total income is relatively high d) customers are more price- and value-conscious e) there is decrease in consumer and business spending

c) total income is relatively high

Attitudes

cognitive, affective, behavioral; remains stable short term

____ is the process of dividing a total market into group of people with similar product needs in order to design a marketing mix that matches those needs a) market testing b) target marketing c) market analysis d) market segmentation e) positioning

d) market segmentation

Dell obains most of its computer parts and chips from other producers and assembles them together into a desktop or a laptop, which is then sold to consumer. It can be said that Dell is part of a(n) ____ market. a) resellet b) government c) retailer d) producer e) institutional

d) producer

In business markets, individuals or groups purchase for one of three purposes. These purposes are a) resale, wholesale, and direct use b) wholesale, direct use, and use in producing other products c) resale, wholesale and use in producing other products d) resale, direct use in producing other products, and use in general daily operations e) use in general daily operations, wholesale and resale

d) resale, direct use in producing other products, and use in general daily operations

Conclusive Research

designed to verify insights through objective procedures and to help marketers in making decisions

A(n) _____ market consists of purchases and household members who intend to use or benefit from the purchased products and do not buy products for the main purpose of making a profit a) business b) industrial c) institutional d) reseller e) consumer

e) consumer

The marketing research process begins with: a) the collection of data b) the segmentation of the market c) designing the research project d) benchmarking competitors e) locating and defining the problem

e) locating and defining the problem

Emma looks at her watch and realizes that it has stopped. She knows that the watch is old and that she will have to buy a new one. Emma is in the ____ stage of the consumer buying decision process. a) information search b) purchase c) alternative evaluation d) postpurchase evaluation e) problem recognition

e) problem recognition

Age, rate of product use, location and gender are all examples of common a) demographic variables b) geographic characteristics c) targeting strategies d) psychographic variables e) segmentation variables

e) segmentation variables

To find a target market, a firm can use the a) total market strategy and the undifferentiated strategy b) product differentiation strategy and the customer differentiation strategy c) demographic strategy and the psychographic strategy d) socioeconomic strategy and the psychological strategy e) undifferentiated strategy, the concentrated strategy, and the differentiated strategy

e) undifferentiated strategy, the concentrated strategy, and the differentiated strategy

Lifestyle

individuals pattern of living expressed through activities, interests and opinions. Strongly influences buying decision

Attitude Scales

means of measuring consumer attitudes by gauging the intensity of individual's reactions to adjectives, phrases about an object

Perception

selecting, organizing and interpreting information to produce meaning Subliminal Perception: perceived stimuli below the conscious threshold of perception Perception Process: Selective Exposure, Selective Distortion, Selective Retention

Defintion of Marketing

the process of creating, distributing, promoting and pricing goods, services and ideas to facilitate satisfying exchange relationships with customers and develop and maintain favorable relationships with stakeholders in a dynamic environment.