Basic Marketing Midterm

Competition between two companies...

... can be understood from a global perspective, such as local vs. global competition ... can be understood from an offering perspective, such as generic vs. budget competition

Put the levels of competition in correct order

1) Budget 2) Generic 3) Product category 4) Product form

A student's weekly meal budget is around $150. She eats five days a week on campus where she spends on average $6 in the cafeteria. What is the cafeteria's share of her wallet?

20%

Belief

A cognitive component of attitude

Sub-Culture

A group of people such as bikers or hippies, that is different from the main culture, but shares some common values and norms

Reference Group

A group that affects our opinions, thoughts, and attitudes. It is also a group to which an individual or another group is compared

Consumer-Generated Marketing

A marketing strategy that uses customer-created material and feedback

Family Life-Cycle (FLC) Marketing

A method for separating the aspects of the family market at different stages of life

Operant Conditioning Learning

A method of learning that employs rewards and punishments for behavior

Telepresence

A sensation of being someplace else

Heuristics

A simplified decision rule (rules of thumb)

Consumerism

A social and economic order that encourages the purchase of goods and services. It also seeks to protect and inform consumers by requiring companies to adopt consumer friendly business practices

Store Atmosphere

A store environment created by thoughtful use of sounds, scents, lights, fixtures, and salespeople

Consumer Value

A totality of all perceived benefits minus a totality of all perceived costs

A consumer seeking out a brand is?

A want

NFC

An embedded chip that can transmit data wirelessly

Augmented Reality

An enhanced version of reality created by the use of technology to overlay digital information on an image being viewed through a device

Customer Loyalty

An ongoing positive relationship between a customer and a brand or a business

Psychological factors that influence the consumer journey are

Attitudes, background music, and motivation

Determinant attributes can be

Brand and Price

B2B

Business to business

B2C

Business to consumer

Societal trends that affect marketing decisions are

Connectedness of people via digital social networks, Green marketing, Strong information privacy laws, Emergence of a knowledge society

C2B

Consumer to business

C2C

Consumer to consumer

T or F - Environmental scanning is the process to gather information about climate change.

False

T or F- B2C is best described as industrial marketing.

False

T or F- Consumer needs backed up by financial means become demands.

False

T or F- Consumer perceived benefits are easy to calculate.

False

What are some of the economic forces shaping the business marketing environment?

GDP, Inflation rate, and Mortgage interest rates

Put the levels of competition in correct order. (Note- Begin with Global)

Global, International, National, Regional, & Local

Identify correct elements of and/or consequences of globalization:

Globalization helps with flow of ideas around the world. Globalization results in innovation and productivity. Workers in some countries felt "left behind" by globalization.

These macroenvironmental forces influence business (marketing) decisions

Globalization, Political, Technology

When a small child says, "You can get me any toy as long as it is pink," she is using

Heuristics

According to the AMA, which of the following are some of the positive values that marketers need to foster

Honesty, Respectfulness, Responsibility, & Transparency

Delivers Value

Where and how our customers shop: online, in stores?: Exchanges Value: What are our customers willing to pay and can we make a profit?

Marketing

a business function that creates, communicates, delivers, and exchanges offerings that have value for customers

Permission Marketing

a form of marketing when consumers opt-in to receive marketing offers and announcements from a brand or company

Relationship Marketing

a marketing approach designed to foster customer loyalty, interactions, and long-term engagement while developing strong connections with customers

Adaptation Marketing

a marketing strategy that uses a tailored marketing mix to specific countries/cultures/markets

Standardized Marketing

a marketing strategy that uses an identical or very similar marketing mix across multiple countries/ cultures/ markets

Gross Domestic Product (GDP)

a metric of the monetary value of final goods and services produced in a country in a given period of time

Traditional Marketplace

a physical location where buyers and sellers come together to perform transactions

Marketing Mix

a set of marketing tools (offering, price, place, promotion) that marketers use to achieve marketing objectives

Knowledge Society

a society that emphasizes and values scientific and technological knowledge. According to UNESCO, Knowledge societies are about capabilities to identify, produce, process, transform, disseminate and use information to build and apply knowledge for human development

Inflation

a sustained increase in the general price level in an economy. Increased inflation means an increase in the cost of living as the prices of goods and services rises.

Environmental Scanning

a systematic process of gathering information about external events in their relationships to an organization

Brand

a unique name or design that distinctly differentiates products, services, packaging from those of other sellers

Digital Marketplace

a virtual/digital location where buyers and sellers come together to perform transactions

Feeling

an affective component of attitude

Consumer

an individual who consumes products or services

Artificial Intelligence (AI)

computer code or program that imitates human intelligence

Cryptocurrency

digital currency, such as Bitcoin, that primarily uses blockchain technology (distributed Ledger)

Knowledge societies value _______ and ___________.

education and training

Sustainable Marketing

environmental and socially sustainable marketing that meets the needs of present generation and sensitive to the needs of future generations

A Zero Emission logo would be an example of _______ __________.

green marketing

Competitive Edge

information, a resource, or unique skill or process that a company has or does better than its competition.

Transactional Marketing

it is a marketing strategy that focuses on individual point of sale business transactions. this type of marketing occurs when buyers and sellers do not maintain relationships and only engaged in exchange

Share of Wallet (SOW)

marketing metric used to calculate the percentage of a customer's spending for an offering that goes to a particular company

Green Marketing

marketing of products or services by highlighting their environmental benefits. also known as organic, eco-friendly, or cyclable, or sustainable

Consumer Marketing

marketplace offerings designed to meet individual consumer needs

Identify the forces that shape a business environment:

political, societal, Technological, and globalization

A ________- transaction would be an example of C2C marketing

private

Business Marketing

services and products purchased to be used in business operations or to be resold to intermediaries

Interest Rate

the monetary change for borrowing money, typically expressed as a percentage, such as an annual percentage rate (APR)

Marketing Ethics

the moral principles and values that need to be followed during any kind of marketing practice, such as advertising, selling, etc.

Business Ethics

the study of ethical dimensions of productive organizations and commercial activities

Customer Lifetime Value (CLV)

total sales (passed and estimated future) generated by the customer during the relationship with a business

a. Consumer needs are basic:

transportation, food, sleep

Value Creation

Offering

The marketing mix includes these elements

Offering, Place, Promotion, & Price

Attitude

Opinions or feelings about brands that manifest in behavior

Customer loyalty can be

Passive loyalty and True loyalty

Value Delivery

Place

Value Exchange

Price

Value Communication

Promotion

Relationship marketing suggests

Recurring relationship between buyer and seller

Personal factors that influence the consumer journey are

Self-role theory, lifestyle, and Family life-cycle

The smartphone industry is best described as having:

Short-lifespan technologies

Want

Something that people desire to have, such as a luxury car

Need

Something that people needed to survive, such as food

Consumer Demographics

Statistical information, such as age, gender, etc. About a consumer or consumer groups

Lead

The process of stimulating the interest of potential customers and then converting them into buyers

Politics influences marketing decisions

Through consumer legal representation, Through government regulations, Through regulation/deregulation of industries, & Through laws

The marketplace can be

Traditional, such as a grocery store; Digital, such as Amazon.com Music

T or F - Artificial intelligence is the technology (code) which allows companies to "mimic" human intelligence:

True

T or F - The business ↔ customer interaction is at the heart of marketing.

True

T or F- A consumer and a customer are the same person when he/she buys and consumes the product/service.

True

T or F- A relationship marketing approach implies that the buyer and the seller are familiar with each other.

True

T or F- B2B is marketplace where businesses buy and sell with each other.

True

T or F- Consumer Value is a totality of all perceived benefits minus a totality of all perceived costs.

True

T or F- Marketers create value by satisfying customer needs which are met by providing the right offering, in the right place, at the right price, and with the appropriate communication.

True

T or F- Marketing is a business function that creates, communicates, delivers, and exchanges offerings that have value for customers

True

Globalization affects

Use and acceptance of cryptocurrencies & Wages of middle-class workers

Creating Value

What do our customers need: product, service, experience?Communicating Value: How can we inform our customers and communicate with them: in-person, on social media, with flyers?

I am the customer and the consumer?

I am the customer and the consumer when I buy groceries and eat them.

I am the customer, but not the consumer?

I am the customer when I purchase Christmas gifts, but since I give the product away and do not use it, I am not the consumer.

b. Consumer wants exceed needs, ex:

I want to eat exceptional food - caviar

An economy can be evaluated by assessing

Interest rates - the APR that non-domestic banks charge, Inflation - changes in a currency's purchasing power, GDP - the value of all the economic activity of a country

Technology impacts marketing

It allows companies to experiment with creation of new products and services., It affects the way companies conduct business.