Marketing Midterm Chapters 1, 2, 4, 5, 10, 6, 13, 9, 14 & Practice Questions
What are some important factors of marketing?
1. Helps Create Value 2. Is about satisfying customer needs and wants 3. It entails an exchange 4. It requires product, price, place, and promotion decisions. 5. It can be performed by both individuals and organizations. 6. It occurs in many settings
Define Sales Oriented
- Focus on Increasing Sales - Does not always imply setting low prices - More concerned with overall market share *Adopt this orientation to establish a position in the market by getting the most price sensitive consumers to change brands *Firms that want to attain market leadership set prices at less profitable levels to gain market share.
What are the 3 Components that make up Attitude?
1) Behavioral 2) Affective 3) Cognitive The cognitive aspect reflects what we believe to be true The affective component involves what we feel about the issue at hand The behavioral component comprises the actions we undertake with regard to that issue.
What are the 5 C's of Pricing?
1) Company Objectives 2) Customers 3) Costs 4) Competition 5) Channel Members
What is Quantitative Research?
1) Experiments 2) Survey 3) Scanner 4) Panel
What are the 2 types of buying decisions depending on customers level of involvement?
1) Extended problem solving 2) Limited problem solving - impulsive buying
What are the 4 gaps for Providing Great Service?
1) Knowledge Gap 2) Standards Gap 3) Delivery Gap 4) Communication Gap
What is Qualitative Research?
1) Observation 2) Focus Groups 3) In-depth interviews 4) Social Media
What are the 5 ways for Evaluating Service Quality?
1) Reliability 2) Responsiveness 3) Assurance 4) Empathy 5) Tangibles
What are the 2 kinds of Price Fixing?
1) Vertical Price Fixing 2) Horizontal Price Fixing
What are the 6 Positioning Steps?
1. Determine consumers' perceptions and evaluations in relation to competitors'. 2. Identify the market's ideal points and size. 3. Identify competitors' positions. 4. Determine consumer preferences. 5. Select the position. 6. Monitor the positioning strategy.
What are some Important Political/Regulatory Environment legislations?
1890 - Sherman Antitrust Act 1914 - Clayton Act 1914 - Federal Trade Commission 1936 - Robinson-Putnam Act
What is the C 3) Costs?
3 kinds of Costs; 1) Variable Costs 2) Fixed Costs 3) Total Costs *The price must at least cover the cost of the item
What is the C 1) Company Objectives?
4: - Profit Oriented - Sales Oriented - Competitor Oriented - Customer Oriented
Define Demographic Segmentation
Age Gender - Commonly used to segment market - Although they represent only slightly more than half of the population, women disproportionately influence buying decisions
Define Empowering Service Providers
Allowing employees to make decisions about how service is provided to customers
What is the Planning Phase?
An ethical issue might be whether to include a commitment to ethics in its mission. The mission or vision statement sets the overall ethical tone for planning. Mission statements can be used as a means to guide a firm's SWOT analysis.
What is A Marketing Environment Analysis Framework?
Anything that affects consumers affects marketers. Any change in one of these environments likely requires an adjustment to the firm's marketing mix. By identifying potential environmental trends, firms often can take proactive steps. CONSUMER IS ALWAYS AT THE CENTER
What are Compensatory Decision Rules?
Assume that the consumer, when evaluating alternatives, trades off one characteristic against another, such that good characteristics compensate for bad characteristics
What kind of segmentation is measurable characteristics that describe a population by age, gender, income, ethnic background, education, and occupation? a. Geodemographic b. Demographic c. Behavioral d. Psychographic
B. Demographic Can be found in chapter 5.
Generational cohorts: 1946-1964
Baby Boomers
Define Benefits & Behavioral Segmentation
Benefit segmentation: The grouping of consumers on the basis of the benefits they derive from products or services Behavioral segmentation: Divides customers into groups based on how they use the product or service. Done by occasion segmentation or loyalty segmentation. Firms encourage loyalty in various ways, such as airline mileage or hotel point reward programs.
What is the Scope of Marketing Ethics?
Business Ethics Marketing Ethics
What is the Control Phase?
Check successful implementation React to change Any plan requires constant evaluation and revision, and this truism applies particularly to the evaluation of ethical issues.
What are the steps in getting DATA?
Collecting Recording Analyzing Interpreting Decision Making
Define Economic Situation
Combined with inflation and interest rates affect firms' ability to market goods and services
What is Step 4) Analyzing data and collecting insights?
Converting data into information to explain, predict and/or evaluate a particular situation.
What is Internal Secondary Data?
Data Warehouse Data Mining
Define Deceptive or Illegal Price Advertising
Deceptive reference prices Loss leader pricing Bait and switch
What is Step 1) Strategy or Objective?
Establish Overall Strategy or Objectives *Any strategy must be consistent with the firm's mission statement and be based on the current assessments from SWOT analyses
Evaluation of Alternatives: Evaluate Criteria?
Evaluative Criteria - consist of a set of important attributes about a particular product Determinant Attributes - product or service features that are important to the buyer and on which competing brands or stores are perceived to differ.
What are Understanding Customer Expectations?
Expectations are based on knowledge and experience Expectations vary according to type of service Expectations vary depending on the situation
What is Step 1) Need Recognition?
Functional need - which pertain to the performance of a product or service Psychological need - pertain to the personal gratification consumers associate with a product or service
Generational cohorts: 1965-1980
Generation X
Generational cohorts: 1981-2000
Generation Y
What is Step 2) Segmentation Methods?
Geographic Demographic Psychographic Benefits Behavioral
Define Identifiable & Substantial
Identifiable: - Who is in their market? - Are the segments unique? - Does each segment require a unique marketing mix? Substantial: - Too small and it is insignificant - Too big and it might need it's own store
What is Step 2) Gather information and identify stakeholders?
Identify all ethical issues and relevant legal information Identify all relevant stakeholders and get their input on any identified ethical issues
What is The Immediate Environment?
Includes the firm and its immediate influences, such as competition and corporate partners.
What is the Locus of Control?
Indicates how much control people think they have over the outcomes of various activities, such as purchasing a product or service. Internal Locus of Control = more search activities External Locus of Control = Fate, external factors
What is Step 2) Information Search?
Internal Search for information - the buyer examines his or her own memory and knowledge about the product or service External Search for information - the buyer seeks information outside his or her personal knowledge base to help make the buying decision
What is Syndicated Data?
More detailed Can be very costly
How has Technological Advances impacted every aspect of marketing?
New products New forms of communication New retail channels Arguably the single most important change in the way we live is the introduction of new technology.
What are the Factors Affecting Consumers' Search Process?
Perceived Benefits Perceived Costs
What are the 5 types of Perceived or Actual Risks?
Performance Risk Financial Risk Social Risk Physiological Risk Psychological Risks
What are the 3 phases when Integrating Ethics Into Marketing Strategy?
Planning Phase Implementation Phase Control Phase
What is Step 3) Data collection process?
Primary Data Secondary Data
Define RFID
Radio Frequency Identification Device *Use of technology
Define High/Low Pricing
Relies on the promotion of sales, during which prices are temporarily reduced to encourage purchases
What is Step 3) Evaluate Segment Attractiveness?
Segment Attractiveness - Substantial - Reachable - Responsive - Profitable - Identifiable
What is Segment Profitability?
Segment Profitability = (Segment size * Segment adoption percentage * Purchase behavior * Profit margin percentage - Fixed costs)
What are the 5 Steps in Segmentation, Targeting, Positioning Process?
Segmentation: Step 1) Strategy or Objective Step 2) Segmentation Methods Targeting: Step 3) Evaluate Segment Attractiveness Step 4) Select Target Market Positioning: Step 5) Identify & Develop Positioning Strategy
What is the BCG Matrix?
Stars Question Mark Cash Cow Dog
What is are the steps in the Marketing Research Process?
Step 1) Defining the objectives and research needs Step 2) Designing the research Step 3) Data collection process Step 4) Analyzing data and collecting insights Step 5) Action plan and implementation
What is Factor 2) Heterogeneous?
Technology Training Automation
What is Step 3) Brainstorm and evaluate alternatives?
The alternative solutions depend on the type of ethical issue and how the stakeholders are affected.
Define Income Effect
The change in quantity of a product demanded by consumers due to a change in their income. Ex: people do not buy new cars when the economy is not doing well.
Define Perception
The process by which we select, organize, and interpret information to form a meaningful picture of the world. Societies' perceptions can change. For example, tattoos used to be only considered acceptable for unsavory individuals
What is the purpose of Marketing Research?
To inform an organization about: - Customers' needs and desires - Marketing opportunities for products - Changing attitudes and purchase patterns of customers
Why do retailers use the Conversion Rate?
To measure how well they convert purchase intentions into actual purchases.
Define Fixed Costs
Unaffected by production volume
What is the 1) Knowledge Gap?
Understanding customer expectations Evaluating service quality Reflects the difference between customers' expectations and the firm's perception of those expectations.
What are the Evaluation of Alternatives: Attribute Sets?
Universel - include all possible choices for a product category Retrieval - subset of the universal set is the retrieval set, which are those brands or stores that can be readily brought forth from memory Evoked - which comprises the alternative brands or stores that the consumer states he or she would consider when making a purchase decision.
Define Variable Costs
Vary with production volume
How do we do Step 1) Defining the objectives and research needs?
We ask: What information is needed to answer specific research questions? How should that information be obtained?
What is Step 4) Choose a course of action?
Weight the alternative Take a course of action Alternatives are then evaluated and a course of action is chosen. The chosen course represents the best solution for the stakeholders using ethical best practices.
What questions are asked in determining the Zone of Tolerance?
What is the desired and expected level of service for each dimension? What are the customer's perceptions of how well the focal service performs and how well a competitive service performs? What is the importance of each service quality dimension?
What are Non-compensatory decision rules?
When consumers choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes.
What is Postpurchase: Customer loyalty?
When marketers attempt to solidify a loyal relationship. Satisfied customers purchase and buy from the same company again.
Define Predatory Pricing
When prices are set low with the intent to drive competitor out of business - Illegal - Difficult to prove
Promotion does not include which of the following? a) Personal selling b) Marketing research c) advertising d) sales promotion
b) Marketing research
Demographic forces affect which of the following? a) Changes in price b) Changes in population c) Changes in technology d) Changes in the marketplace e) Changes in climate
c) Changes in technology
a key determinant of the extent to which consumers evaluate a brand before purchase is their: a) disposable income b) level of involvement c) position or role in the buying center d) level of need e) level of awareness
d) level of need
Which one of the following is not a geodemographic basis for market segmentation a) postcode b) occupation c) marital status d) personality
d) personality
What are the 4 strategies are used to create and deliver value and a sustainable competitive advantage.
1) Customer Excellence 2) Operational Excellence 3) Product Excellence 4) Locational Excellence
What is Step 2: Construct a situation Analysis?
A SWOT analysis is comprehensive, in that it offers both an internal and an external assessment. The firm therefore must possess expertise in both what the firm can provide and what the market wants the firm to provide.
Define Locational Excellence
A competitive advantage based on location is sustainable because it is not easily duplicated. Many say "The three most important things in retailing are location, location, location."
What is the third step in the Consumer Decision Process? a. Alternative Evaluation b. Need Recognition c. Information Search d. Purchase e. Post-purchase
A. Alternative Evaluation The reason for this being that if you look at the consumer decision process chart, alternative evaluation is the third step. You can find this information in Chapter 6 page 103 in exhibit 6.1.
In the steps of marketing research, which step comes first? A) Collecting B) Analyzing C) Recording D) Interpreting
A. Collecting Found on page 195, Chapter 10 The set of steps of marketing research are collecting, recording, analyzing, and interpreting data.
_________ provides an easily understood snapshot of the typical consumer in a specific target market a. Demographics b. Culture c. Social trends d. Psychographics
A. Demographics Explain who your buyer is Ex: age, gender, income, education PowerPoint chapter 5 page 11
Age, gender, race, and income and educations are all examples of: A. demographics B. culture C. social trends D. competitors
A. Demographics Indicate the characteristics of human population and segments, especially those used to identify consumer markets. Page 88
Which best defines Corporate Social Responsibility (CSR)? A. Entails voluntary actions taken by a company to address the ethical, social, and environmental impacts of it its business operations and the concerns of its stakeholders B. Moral or ethical dilemmas that might arise in a business setting C. The act of forcing employees to volunteer or to donate a part of their income to charity D. A misleading commercial that convinces consumers to get their products
A. Entails voluntary actions taken by a company to address the ethical, social, and environmental impacts of it its business operations and the concerns of its stakeholders This answer is correct because these actions are voluntary and they address all aspects of their business to make sure it is ethically sound. I found this in my notes.
"A variability in the service's quality", is used to define which type of service or product marketing? a. Heterogeneous b. Intangible c. Perishable d. Inseparable The correct answer for Question #4 would be
A. Heterogeneous The reason for this being that the definition for Heterogeneous is a variability in the service's quality. The information for this question is in Chapter 13 page 226 under the heading for heterogeneous.
What are the four methods to collect qualitative research? a. In-depth Interviews, social media, focus groups, observation b. Social media, experiments, panel, focus groups c. Experiments, survey, scanner, panel d. Panel, focus groups, in-depth interviews, and social media
A. In-depth Interviews, social media, focus groups, observation Can be found in chapter 10.
What kind of data is information collected prior to the start of the research project? a. Secondary b. Primary c. Tertiary
A. Secondary Chapter 10 page 195: Secondary data information that has been collected prior to the start of a research project and can include both external and internal data sources.
The steps of the marketing plan in the correct order are? a. Define the business mission, SWOT analysis, identify opportunities, implement marketing mix b. SWOT analysis, identify opportunities, define the business mission, implement marketing mix c. Define the business mission, identify opportunities, SWOT analysis, implement marketing mix d. SWOT analysis, implement marketing mix, define the business mission, identify opportunities
A. define the business mission, SWOT analysis, identify opportunities, implement marketing mix PowerPoint chapter 2 Step 1: define the business mission- mission statement Step 2: SWOT analysis- internal and external assessment Step 3: identify and evaluate opportunities- using STP Step 4: implement marketing mix- resources are limited and must be allocated so that they
Define Marketing
An organizational function and a set of processes for creating, capturing, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
When do Cash Cows occur in the BCG matrix?
Are in low-growth markets but are high market share products. Because these products have already received heavy investments to develop their high market share, they have excess resources that can be spun off to products that need it.
Which is the fourth step in the marketing research process? A. Collecting Data B. Analyzing the data and delivering insights C. Defining the objectives and research needs D. Developing and implementing an action plan
B. Analyzing the data and delivering insights This is the answer because identifying your research needs and then going about getting the research comes before actually analyzing it. I found this in my book.
In the Marketing Mix (4 P's), Price __________ value? a. Creates b. Captures c. Delivers d. Communicates
B. Captures Value. Price is everything the buyer gives up in exchange for the product. Marketers figure out how much a customer is willing to pay in exchange for a product. Textbook page 9
What can a company to do enact CSR towards customers? A) Offer cheaper products B) Ensure the healthiness of products for children C) Track customers purchases without their knowledge D) Training employees to be better in customer service
B. Ensure the healthiness of products for children Found on page 79 Chapter 4. It is a growing trend that customers are aware of the purchases they are making and what they are being made out of. Consumers want to make sure their products are made healthfully and ethically.
Which of the methods below is an example of Quantitative Research? a. Following social media sites b. Experiments c. Focus groups d. In-depth interviews
B. Experiments The reason for this being that all of the other choices are defined as qualitative research. You can find this information in Chapter 10 on page 206, in the definitions for qualitative and quantitative research.
Firms typically use ___________________ to evaluate the effectiveness or performance of a marketing strategy. a. A SWOT analysis b. Marketing metrics c. Customer Surveys d. Mission Statement
B. Marketing Metrics Chapter 2 page 27 : The final step in the planning process involves evaluating performance using marketing metrics such as sales, profits, gross margin, and return on investment in order to compare a firm's performance over time to that competing firms.
What is another name for members of Generation Y (Gen Y)? A. Baby Boomers B. Millennials C. Digital Natives D. The generation addicted to technology
B. Millennials. The reason this answer is correct is because as stated by the textbook, Generation Z are also called the Digital Natives, Generation X are called the Baby Boomers, and "the generation addicted to technology" is completely made up. I found this answer in chapter 5 on page 89 of the textbook.
Sustainable customer advantage has four parts to customer value what part involves an excellent supply chain management and efficient performance? A. Product Excellence B. Operational Excellence C. Product Excellence D. Customer Excellent
B. Operational Excellence If your operations are smooth and efficient then you will excel in operations, an example would be fast shipping to customers. I found this answer on the power points.
Fate, Luck, and external factors are examples of _________. A. External Locus Control B. Perceived risk C. Psychological Attitude D. Internal Locus Control
B. Perceived Risk Because these are external factors that a person can not control over in events in their lives. I found this in the powerpoint.
A service that is ____________, which can not be stored for use in the future. A. Inseparable B. Perishable C. Intangible D. Heterogeneous
B. Perishable Because it can be a one time use only at a certain time for example a plane ticket. You buy the ticket for a certain flight and seat so you can't save it for a future trip.
In the marketing mix three of the 4P's add to company costs. Which is the only P directly concerned with producing revenues? a. Promotion b. Price c. Place d. Product
B. Price Price is correct because it is the only one that is not a cost. It makes money off the product and generates a positive cash flow. Found in Chapter 10
What is a marketing mix? A. The value of an item. B. Product, price, place and promotion - the controllable set of activities that a firm uses to respond to the wants of its target markets. C. The process in which consumers sell to other consumers. D. Written documents which analyze the marketing situation
B. Product, price, place and promotion - the controllable set of activities that a firm uses to respond to the wants of its target markets Marketing has been divided into a set of four interrelated decisions and consequent actions. Page 7
Which of the following is NOT one of the five service dimensions that consumers use to evaluate how well a service meets or exceeds expectations? a. Tangibles b. Indifference c. Responsiveness d. Reliability
B. Reliability Chapter 13 page 264: Customers use the five dimensions to evaluate how well a service meets or exceeds their expectations are reliability, responsiveness, assurance, empathy and tangibles.
Define culture. A. Entails easy-to-spot visible nuances that are particular to a country B. Shared meanings, beliefs, morals, values, and customs of a group of people C. The influence of the area within a country in which people live D. None of the above
B. Shared meanings, beliefs, morals, values, and customs of a group of people This is the answer because while A and C have to do with culture it is not the actual definition of it. I got this from the book.
The initials SWOT stand for: A. Selected- Weakness- Options- Tests B. Strengths- Weakness- Opportunities- Threats C. Situation- Withdraw- Opportunities- Treats D. Strength- Weakness- Opinion- Tests
B. Strengths- Weakness- Opportunities- Threats SWOT analysis is a process that identifies an organization's strengths, weaknesses, opportunities and threats. Found in Chapter 2
For marketers to get a better understanding of how consumers make their purchasing decisions, what process do they use? A. The Guessing Process B. The Consumer Decision Process C. The Research Process D. They don't use a process and just ask their mothers
B. The Consumer Decision Process. The reason this answer is correct is because all of the other options other than, B. The Consumers Decision Process, are made up answers. I found the answer to this question in chapter 6 on page 104 of the textbook.
Which focuses on retaining loyal customers and excellent customer service? A. Operational Excellence B. Locational Excellence C. Customer Excellence D. Product Excellence
C. Customer Excellence This answer is correct because customer excellence has to do with the customers and making sure they pleased with the product or service. I found this in my book.
Which is not a gap in the Gaps Model? A. Standards Gap B. Delivery Gap C. Customers Gap D. Communications Gap
C. Customers Gap While the customer typically has something to do with each gap it does not have its own. The missing gap is the knowledge gap which has to do with understanding the customer expectations. I got this from the book.
Which of the following is internal secondary data? a. Syndicated data b. Scanner research c. Data mining d. Panel data
C. Data Mining Consumers provide wide-ranging data that get stored in increasingly large databases PowerPoint chapter 10
What are the correct four steps of making ethical decisions? a. Planning phase, implementation phases, control phase b. Targeting, positioning and segmentation c. Identity issues, gather information and identify stakeholders, brainstorm and evaluate alternatives, choose course of action d. Choose a course of action, gather information, evaluate alternative, segment the audience
C. Identity issues, gather information and identify stakeholders, brainstorm and evaluate alternatives, choose course of action Can be found in chapter 2.
Data can be defined as raw numbers or other factual information that, on their own have limited value to marketers. But, when data are organized, analyzed, and interpreted it becomes known as _________________, which is valuable to marketers. A. primary data B. sample C. information D. secondary data
C. Information Interpreting and analyzing data makes it more useful to marketing decision makers. For example a scanner in a grocery store collects sales data about individual consumer purchases, but not until they are categorized and examined do they provide useful information. Page 198
Psychographic segmentation refers to: A. Social Class B. Gender and Age C. Lifestyle and personality D. Benefits
C. Lifestyle and Personality Psychographic segmentation involves dividing your market into segments based upon different personality traits, values, attitudes, interests, and lifestyles of consumers. Found in Chapter 9
A firm's target market, marketing mix, and method of obtaining a sustainable competitive advantage is known as a: A. sustainable competitive advantage B. marketing plan C. marketing strategy D. marketing position
C. Marketing strategy Outlines the specific actions a firm intends to implement to appeal to potential customers. Page 23
Maslow's model refers to five categories of: A. Beliefs B. Lifestyles C. Motivation D. Buying Stages
C. Motivation Maslow's hierarchy of needs is a motivational theory in psychology comprising a five-tier model of human needs, often depicted as hierarchical levels within a pyramid. Found in Chapter 6
The sales oriented era in the 1920s-1950's consisted of A) Focusing on what consumers wanted, a buyers market B) Believing that a good product would sell itself C) Personal selling and heavy advertising due to not enough consumers purchasing D) None of the above
C. Personal selling and heavy advertising due to not enough consumers purchasing Found on page 13 of chapter 1. WW2 conditioned people to want to buy less, and manufacturers were making more than people were buying. They had to rely on heavy advertising to get people to want to buy products again.
Which is not one of the 4 P's? a. Product b. Price c. Production d. Place
C. Production The reason for that being that the 4 P's are product, price, place and promotion. The information for this can be found on Page 7 in Chapter 1. The definition for the word marketing mix lists the 4 P's and goes into more detail about each one.
What are the 4'ps of the marketing mix? a. Price, Project, Promotion, place, b. Promotion, Price, Place, Product, c. Placement, Product, Production, Position d. Promotion, Price, Project, Position
C. Promotion, Price, Project, Position Which can be found in chapter 1.
Empowering an employee can help the company overall by A) Making resolution of a customer issue quicker B) Helping employees feel valued and trusted within the company C) None of the above D) Both A and B
D. Both A and B Found in Chapter 13 page 278 Giving employees agency to solve problems without management is not only helpful in solving a customer issue but it also helps the employee feel like they are capable of handling issues within the company.
"Information about the characteristics of human populations and segments, especially those used to identify consumer markets such as by age, gender, income and education", is used to define which term? a. Generational cohort b. Culture c. Macro environmental factors d. Demographics
D. Demographics The reason for that being that the definition of demographics is information about the characteristics of human populations and segments, especially those used to identify consumer markets such as by age, gender, income and education. The information for this can be found in Chapter 5 on page 88 in the definition for Demographics.
What is the correct order of the STP process? A. Describe segments, Establish strategy or objectives, Evaluate segment attractiveness, Select target market, Identify and develop positioning strategy B. Evaluate segment attractiveness, Establish strategy or objectives, Describe segments, Identify and develop positioning strategy, Select target market C. Select target market, Establish strategy or objectives, Describe segments, Evaluate segment attractiveness, Identify and develop positioning strategy D. Establish strategy or objectives, Describe segments, Evaluate segment attractiveness, Select target market, Identify and develop positioning strategy
D. Establish strategy or objectives, Describe segments, Evaluate segment attractiveness, Select target market, Identify and develop positioning strategy Because these are the right steps to how a company chooses to compete in a certain market of what their product segmentation falls under and why they are selling it to that market. I found these 5 steps in the learnsmarts and online textbook.
Which is true about corporate social responsibility? a. Firms are always socially responsible. b. Firms are not always socially responsible c. Firms consider ethics and socially responsibility to be unrelated. d. Firm's employees must engage in ethical practices in order to be socially responsible.
D. Firm's employees must engage in ethical practices in order to be socially responsible. Chapter 4 page 71 : For a company to be considered acting in a socially responsible manner, the employees of the company must first maintain high ethical standards however, maintaining high ethical standards alone does not make a firm socially responsible in and of itself.
____________ pertains to the difference between the firm's perceptions of customers' expectations and the service standards it sets. A. The Delivery Gap B. The Knowledge Gap C. The Communication Gap D. The Standards Gap
D. The Standards Gap. The reason this answer is correct is because the knowledge gap reflects to the customer's expectations and the firm's perception of those customer expectations, the delivery gay is the difference between the firm's service standards and the actual service it provides to customers, and the communication gap refers to the difference between the actual service provided to customers and the service that the firm's promotion program promises. I found this answer in chapter 13 on page 269 of the textbook.
What is the Zone of Tolerance? a. The name, symbol, slogan message or design used to identify a products reputation and image. b. The impression people have of a company; it's personality or reputation. c. An ongoing marketing research system that collects customer inputs and integrates them into managerial decisions. d. The difference between what the customer really wants and what he or she will accept before going elsewhere.
D. The difference between what the customer really wants and what he or she will accept before going elsewhere. Can be found in chapter 13.
Identify 2 of the 4 targeting strategies:
Differentiated, Concentrated, Micromarketing or One-to-One, and Undifferentiated or mass marketing (Chapter 9)
When do Dogs occur in the BCG matrix?
Dogs: In low-growth markets and have relatively low market shares. Should be phased out unless they are needed to complement or boost the sales of another product or for competitive purposes.
Define Operational Excellence
Efficient operations Excellent supply chain management Strive for efficient operations to get customers the merchandise they want, when they want it, in the required quantities, and at a lower cost than their competitors.
Define Market Penetration
Employs the existing marketing mix and focuses the firm's efforts on existing customers. Sales encourage current users to consume more of the current product mix, but they also bring new customers to the business. Many strategies can be used to get current consumers to consume more of your product. Loyalty cards and coupons help with market penetration
Define Market Development
Employs the existing marketing offering to reach new marketing segments. Ex: Add stores in new geographic locations. Chick- fil- a is no longer just in the south
What is Step 1) Identify Issues?
Ethical issues might include: - data collection methods—not informing respondents that they are being observed - hiding the true purpose of a study from respondents—telling them they are an independent research company, but actually doing research for a particular politician. - using results to mislead or even harm the public—results of a pharmaceutical study.
Define Marketing Ethics
Ethical problems that are specific to the domain of marketing. Ex: damage to the environment, use of child labor, deceptive advertising, dangerous products.
Define Business Ethics
Examines ethical rules and principles within a commercial context, the various moral or ethical problems that might arise in a business setting, and any special duties or obligations that apply to persons engaged in commerce.
Define Diversification
Introduces a new product or service o a market segment that is currently not served. Diversification opportunities may be either related or unrelated. In a related diversification opportunity, the current target market and/or marketing mix shares something in common with the new opportunity. In other words, the firm might be able to purchase from existing vendors, use the same distribution and/or management information system, or advertise in the same newspapers to target markets that are similar to their current consumers. In contrast, in an unrelated diversification, the new business lacks any common elements with the present business. Ex: Restaurant may sell products in the grocery store
What happens with creating value over the long run in Firms Goals?
Long term success Profit is important to the success of the firm. But how the firm makes that profit can have a dramatic impact on the firm's future.
What is Step 1: Define the Business Mission?
Mission Statement: A broad description of a firm's objectives and the scope of activities it plans to undertake.
When do Stars occur in the BCG matrix?
Occur in high growth markets and are high market share products. Stars often require a heavy resource investment in things like promotions and new production facilities
Define Place: Delivering the Value Proposition
Place, or supply chain management, describes all activities necessary to get the product to the right customer when the customer wants it.
What are the Three Phases of a strategic place?
Planning Implementing Controlling A poorly executed plan leads to failure, regardless of how good or solid the plan may be. Even well-executed plans require monitoring and updating, because the needs of any market constantly change.
Define Price: Capturing Value
Price is everything a buyer gives up (money, time, energy) in exchange for the product. How much are customers willing to pay and can a profit can be made at that point?
What is Step 4: Implement Marketing Mix and Allocate Resources?
Product Value Creation Price Value Capture Place Value Delivery Promotion Value Communication In all firms, resources are scarce and must be allocated so that they create the most value for the firm.
Define Promotion: Communication Value
Promotion is communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their opinions or elicit a response.
Define Demographic
Provides an easily understood snapshot of the typical consumer in a specific target market (chapter 5)
Define Product Excellence
Providing products with high perceived value and effective branding and positioning Expensive should not be confused with the fact that the product has a clear and distinctive brand image and that it is clearly positioned.
When do Question Marks occur in the BCG matrix?
Question marks: Appear in high-growth markets but have relatively low market shares. They are often the most managerially intensive products in that they require significant resources to maintain and potentially increase their market share. Managers must decide whether to infuse question marks with resources generated by the cash cows so they can become stars, or withdraw resources and eventually phase out the products.
Define Customer Excellence
Retaining loyal customers Customer service
What is a SWOT Analysis?
S - strengths, things the company do well? W - weaknesses, things the company does not do well? O - opportunities, conditions in the external environment that favor strengths T - threats, conditions in the external environment that do not relate to existing strengths or favor areas of current weakness
What is Step 3: Identifying and Evaluating Opportunities Using STP?
STP = Segmentation, Targeting, Positioning With STP, the firm first divides the marketplace into subgroups or segments, determines which of those segments it should pursue or target, and finally decides how it should position its products and services to best meet the needs of those chosen targets.
What happens with greed and short term profit seeking in Firms Goals?
Serious long term consequences Profit is important to the success of the firm. But how the firm makes that profit can have a dramatic impact on the firm's future.
The Marketing Research Process Fill in the missing steps: Step 1 - Defining the objectives and research needs Step 2 - Designing the research Step 3 - Step 4 - Analyzing the data and developing insights Step 5 -
The answer for step 3 is, collecting the data, and the answer for step 5 is, developing and implementing an action plan. The reason the answer for step 3 is correct is because it is necessary to collect data for any marketing research process. The reason the answer for step 5 is correct is because in the final step of the marketing research process the analyst must prepare the results and present them to the decision makers. I found this answer in chapter 10 on page 200 of the textbook.
Define Product: Creating Value
The fundamental purpose of Marketing is to create value by developing a variety of offerings, including GOODS SERVCIES IDEAS to satisfy customer needs
How do you Create an Ethical Climate in the Workplace?
Values - establish - share - understand Rules - management commitment - employee dedication Controls - reward - punishment A strong ethical climate requires a commitment from the top down within the firm. Everyone within the firm must agree to a system of controls that rewards appropriate behavior and punishes inappropriate behavior.
Why do People Act Unethically?
What makes people take actions that create so much harm? Are all the individuals who engage in the behavior just plain immoral and unethical? Decisions have conflicting outcomes, where both options have positive and negative consequences.
Is a doctor, service-dominant or product dominant?
A doctor is a service-dominant because it is not tangible (chapter 13)
In marketing the 4 P's are known as the: a. Marketing Mix b. Marketing orientation c. Marketing Segmentation d. Marketing plan e. Marketing strategy
A. Marketing Mix The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. Found in Chapter 1
What are the 5 steps to market research? A. Interpreting, Decision Making, Analyzing, Recording, Collecting B. Collecting, Analyzing, Decision making, Recording, Interpreting C. Collecting, Recording, Analyzing, Interpreting, Decision Making D. Decision Making, Analyzing, Collecting, Interpreting, Recording
C. Collecting, Recording, Analyzing, Interpreting, Decision Making This is systematic design that companies follow to design their information. This helps understand the market, and help determine success in new products. I found this In the power points.
Which of these is NOT one of the four-macro strategies for Customer Value? A. Customer Excellence B. Operational Excellence C. Corporate Excellence D. Product Excellence E. Locational Excellence
C. Corporate Excellence. The reason this answer is correct is because, C. Corporate Excellence, is not listed in the four macro strategies for customer value. I found this answer in chapter 2 on page 24 of the textbook.
Demographics consist of A) Location B) Self-Values C) Gender D) Economy
C. Gender Found on page 171, Chapter 9 Demographics consist of gender, age, income and education
Which can be said about the use of social media in today's global economy? a. Facebook is the social media site for marketers because nearly 75 percent of the world's population has signed up for a Facebook account. b. A big obstacle to the growth of social media is that only around 40 percent of the world's population has access to the Internet. c. The use of social media, once the premier way to connect to consumers, is rapidly falling off in popularity due to privacy concerns among users.
C. The use of social media, once the premier way to connect to consumers, is rapidly falling off in popularity due to privacy concerns among users. Chapter 1 page 11 : A hindrance to social media use around the world is that global average Internet- penetration rate hovers below 40 percent, with massive populations in Africa and Asia still limited in their access.
The second step in the framework of ethical decision-making is? a. Chose a course of action b. Identify issues c. Gather information and identify stakeholders d. Brainstorming alternatives
C. gather information and identify stakeholders You have to identify ethical issues and legal information and then identify all relevant stakeholders and get their input on ethical issues
A customer's interest in a product or service is considered their ____________. A. culture B. perception C. motive D. involvement
D. involvement Customers make two types of buying decisions depending on their level of involvement, extended problem solving or limited problem solving. Page 123
What is Step 5: Evaluate Performance Using Marketing Metrics?
Firms cannot simply remain content with a strategy for too long. Over time, all strategies must be revised to adjust to new markets, new competitors, and new technologies. The firm must recognize not only its failures, but also its successes to ensure continued success.
What are the influences of personal ethics?
Genetics Family Religion Values In many cases, ethics is in the eye of the beholder.
List 2 influence of personal ethics
Genetics, Family, religion or values (chapter 4)
What are the Growth Strategies in Marketing?
Market Penetration Market Development Product Development Diversification
Define Product Development
Offer a new product or service to a firm's current target market. A product development strategy requires that the firm understands its current consumers' needs/wants well enough to identify other products/services that would be attractive to them.
What are 4 the steps in Ethical Decision Making?
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 5 steps of The Marketing Plan?
Step 1: Business mission & objective Sep 2: Situation analysis (SWOT) Step 3: Identify opportunities (segmentation, targeting, positioning) Step 4: Implement marketing mix (Product, Price, Promotion, Place) Step 5: Evaluate performance using marketing metrics
First step in marketing research process is to: a) Define problem b) Stating research objectives c) Deciding research approach d) Both a and b
a) Define problem
What are Psychological Factors: Attitude?
An attitude is a person's enduring evaluation of his or her feelings about behavioral tendencies toward an object or idea.
What is the Implementation Phase?
An ethical issue might be whether the firm should proceed with marketing a product in a certain manner. Should the firm be relocating production to another country? Should the firm be targeting this market with this product? Should the firm be selling its product in this market in this manner?
What are Survey Methods?
Marketing researchers often employ sampling to collect primary data through: - Mail surveys - Telephone surveys - Personal interview surveys - Online surveys - Social networking surveys The survey method chosen depends on the: - Nature of the problem or issue - Data needed to test the hypothesis - Resources, such as funding and personnel, available to the researcher
Identify the three phases of a strategic plan
Planning, Implementing, and Controlling (chapter 2)
What is the Break Even Analysis?
Total Variable Cost = Variable Cost per unit x Quantity Total Costs = Fixed Costs + Total Variable Cost Total Revenue = Price x Quantity Break Even Point (Units) = Fixed Costs / Contribution Per Unit
What is the C 4) Competition?
- Monopoly - Oligopoly - Monopolistic Competition - Pure Competition
What are the 3 Factors Influencing: Price Elasticity of Demand?
1) Cross price elasticity 2) Income effect 3) Substitution effect
What are the 4 Factors Differentiating Services from Goods?
1) Inseparable 2) Heterogeneous 3) Perishable 4) Intangible
What are the 2 New Product Pricing Strategies?
1) Market Penetration Pricing 2) Price Skimming
What are the 4 Factors Influencing the Consumer Decision Process?
1) Marketing Mix 2) Psychological Factors 3) Social Factors 4) Situational Factors
What are the 5 Steps in the Consumer Decision Process?
1) Need Recognition 2) Information Search 3) Alternative Evaluation 4) Purchase 5) Post Purchase
How do we do Step 5) Action plan and implementation?
1. Executive Summary 2. Body 3. Conclusions 4. Limitations 5. Supplement including tables, figures, appendices
What is Step 4) Selecting a Target Market?
4 Targeting Strategies: Differentiated Undifferentiated or mass marketing Concentrated Micromarketing or one-to-one
Define Competitive Pricing
A firm's strategy of setting prices that are similar to those of major competitors.
What are the Legal Aspects and Ethics of Pricing?
A host of laws and regulations at both the federal and state levels attempt to prevent unfair pricing practices, but some are poorly enforced, and others are difficult to prove. 4 Factors: - Deceptive or illegal price advertising - Predatory Pricing - Price Discrimination - Price Fixing
What are Psychological Factors: Motives?
A motive is a need or want that is strong enough to cause the person to seek satisfaction. People have several types of motives, such as those illustrated in the PSSP hierarchy of needs Physiological needs- Related to the basic biological necessities of life: food, drink, rest, and shelter Safety needs: Pertains to protection and physical well-being Love needs: Needs expressed through interactions with others Esteem needs: Needs that enable people to fulfill inner desires Self-actualization: When a person is completely satisfied with his or her life
What is Factor 3) Perishable?
A service that cannot be stored for future use.
What are Evaluation of Alternatives: Consumer Decision Rules?
A set of criteria that consumers use consciously or subconsciously to quickly and efficiently select among several alternatives
Define Everyday Low Pricing
A strategy companies use to emphasize the continuity of their retail prices at a level somewhere between the regular, nonsale price and the deep-discount sale prices their competitors may offer.
Define Price Skimming
A strategy of selling a new product or service at a high price that innovators and early adopters are willing to pay in order to obtain it; after the high-price market segment becomes saturated and sales begin to slow down, the firm generally lowers the price to capture (or skim) the next more price sensitive segment.
What is 4) Communication Gap?
Communicating the Service Promise - Manage customer expectations - Promise only what you can deliver - Communicate service expectations
What are the 2 Orientations in Company Objective?
Competitor Orientation: - Competitive parity - Status quo pricing - Value is not part of this pricing strategy Costumer Orientation; - Focus on customer expectations by matching prices to customer expectations
Define Substitution Effect
Consumers' ability to substitute other products for the focal brand, thus increasing the price elasticity of demand for the focal brand.
What are the two types of culture?
Country Regional
Everyday Low Pricing vs. High/Low Pricing
Create value in different ways EDLP saves search costs of finding lowest overall prices High/low provides the thrill of the chase for the lowest price
What are microenvironmental factors?
Culture Demographics Politcal/Legal Technology Economic
Why is Listening to the Customer important?
Customers get emotional over a service failure Often customers just want someone to listen
What is the 3) Delivery Gap?
Delivering Service Quality Reduce delivery gaps - empowering employees - use of technology - provide support & incentives
Define Cross Price Elasticity
Demand for one product generated demand for the other. Ex: printers and printer ink
What is the C 2) Customers?
Demand increases as price decreases - Not all are downward sloping - Prestigious products or services have upward sloping curves *Knowing the demand curve enables to see relationship between price and demand
What is Step 2) Designing the research?
Determining: Type of data Type of research
What is Scanner Research?
Discover which consumers purchase what products together How often products are purchased
What are the 2 Fairness' in Finding a Fair Solution?
Distributive Fairness - Pertains to a customer's perception of the benefits he or she received compared with the costs (inconvenience or loss) that resulted from a service failure. Procedural Fairness - Refers to the customer's perception of the fairness of the process used to resolve complaints about service.
What is Corporate Social Responsibility?
Employees & their families Customers: current & potential Marketplace: partners & competitors Society: community & environment Recognize that they must appeal to a vast variety of stakeholders including countries, suppliers, the environment, employees and customers.
Define Country Culture
Entails easy-to-spot visible nuances that are particular to a country, such as dress, symbols, ceremonies, language, colors, and food preferences, and more subtle aspects, which are trickier to identify.
Define Situational Factors
Factors specific to the situation that override, or at least influence, psychological and social issues Situational factors are related to the purchase and shopping situation, as well as to the temporal state as illustrated in this slide.
What are examples of Secondary Data?
Government Sources Trade Associations & Shows Magazine, Newspapers, Video, & Audio News programming Corporate Information
What can Marketing Research do?
Help a firm better understand market opportunities Help a firm ascertain the potential for success for new products Help a firm determine the feasibility of a particular marketing strategy Help a firm develop marketing mixes to match the needs of customers Improve a marketer's ability to make decisions
Define Market Penetration Pricing
Helps firms build market share for their new products quickly, but consumers must be price elastic for this strategy to work.
Define Price Discrimination
Is not always illegal Different rules in the B2B and B2C markets Federal law does not apply to sales to end consumers
Define Learning
Learning refers to a change in a person's thought process or behavior that arises from experience and takes place throughout the consumer decision process. Learning affects both attitudes and perceptions. A person's perceptions and ability to learn are affected by their social experiences.
How can one increase Service Recovery?
Listen to the customer Resolve problems quickly Provide a fair solution
What is the C 5) Channel Members?
Manufacturers, wholesalers and retailers can have different perspectives on pricing strategies Manufactures must protect against gray market transactions
What is Data Collection?
Observation Social Media In-depth interview Focus Group
Define Horizontal Price Fixing
Occurs when competitors that produce and sell competing products collude, or work together, to control prices, effectively taking price out of the decision process for consumers.
Define Pure Competition
Occurs when different companies sell commodity products that consumers perceive as substitutable; price is usually set according to the laws of supply and demand. Ex: Most frequently purchased consumer goods such as soft drinks
Define Vertical Price Fixing
Occurs when parties at different levels of the same marketing channel (e.g., manufacturers and retailers) collude to control the prices passed on to the consumers.
Define Monopolistic Competition
Occurs when there are many firms that sell closely related by not homogeneous products; these products may be viewed as substitutes but not perfect substitutes. Ex: Watches
Define Monopoly
One firm provides the product or service for a particular industry Ex: Microsoft software products
Define Reference Groups
One or more persons whom an individual uses as a basis for comparison regarding beliefs, feelings, and behaviors Reference groups affect buying decisions by offering information, providing rewards for specific purchasing behaviors, and enhancing a consumer's self-image.
Define Oligopoly
Only a few firms dominate the market Example: Cable TV firms
What is Step 5) Develop Positioning Strategy?
Positioning Methods: - Value - Salient Attributes - Symbol - Competition *Positioning strategies generally focus on either how the product or service affects the consumer or how it is better than competitors' products and services.
What is Postpurchase: Dissonance?
Post-purchase cognitive dissonance, also known as buyer's remorse Is the psychologically uncomfortable state produced by an inconsistency between beliefs and behaviors that in turn evokes a motivation to reduce the dissonance. Examples: - Thank you letters - Congratulations letters - Quality ratings
What is Inseparable Production & Consumption?
Production and consumption are simultaneous Little opportunity to test a service before use Lower risk by offering guarantees or warranties
How does Providing Support and Incentives work?
Provide emotional support to service providers Provide support necessary to deliver service Consistent and coherent management Reward employees for excellent service *Systems must support the service providers and allow them to do their job and exceed customer expectations
Define/Examples: Demographics
Provides an easily understood snapshot of the typical consumer in a specific target market The most common form of segmentation because the information is so widely available. Examples: - age - gender - income - education - sexual orientation - household size
Define Reachable & Responsive
Reachable: - Know the product exists - Understand what it can do - Recognize how to buy Responsive: Customers must: - React positively to firm's offering - Move toward the firms products/services - Accept the firm's value proposition
Define Profit
Represents the difference between the total cost and the total revenue (total revenue or sales = selling price of each unit sold number of units sold) Can indicate how much money the firm is making or losing at a single period of time It cannot tell managers how many units a firm must produce and sell before it stops losing money and at least breaks even.
What is Factor 1) Inseparable?
Requires using cues to aid customers Atmosphere is important to convey value Images are used to convey benefit of value
Define RSA
Retail Store Assistant *Use of technology
Define Psychographic Segmentation
Self-values: Goals for life, not just the goals one wants to accomplish in a day. Self- concept: The image a person has of him or herself Lifestyles: The way a person lives his or her life to achieve goals. Psychographics: Delves into how consumers describe themselves; allows people to describe themselves using those characteristics that help them choose how they occupy their time (behavior) and what underlying psychological reasons determine those choices.
What is the 2) Standards Gap?
Setting Service Standards Setting standards for quality Developing systems to ensure high-quality service *Service quality flows from the top down
Generational cohorts: 1922-1945
Silent Generation
What are the Ethics of Using Customer Information?
Strong ethical orientation adhere to ethical practices
What are the TWO types of Survey Research?
Structured Unstructured
What is Panel Data?
Study surveys or sales receipts from a group of customers
Define Total Costs
Sum of variable & fixed costs
What are external secondary data?
Syndicated Data Panel Data Scanner Research
Define Profit Oriented
Target return pricing: Implemented by firms less concerned with the absolute level of profits and more interested in the rate at which their profits are generated relative to their investments; designed to product a specific return on investment, usually expressed in percentage of sales. Target profit pricing: Implemented by firms when they have a particular profit goal as their overriding concern; uses profit to stimulate a certain level of sales at a certain profit per unit. Maximizing profits: If a firm can accurately specify a mathematical model that captures all the factors required to explain and predict sales and profits, it should be able to identify the price at which its profits are maximized. *Does not take into consideration the value customers have for the product *Prices may be set below an optimal level
Define Status Quo Pricing
The firm only changes prices to meet competition.
Define Regional Culture
The influence of the area within a country in which people live.
Define Culture
The shared meanings, beliefs, morals, values, and customers of a group of people Influences consumers behaviors
Define Consumer Bevavior
The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy their needs and wants
Define Marekting Research
The systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities It is a process for gathering information that is not currently available to decision makers
What are the Social Trends?
Thrift Health & Wellness Concerns Greener Consumers Privacy Concerns Time-Poor Society
Define the 4 Targeting Strategies
Undifferentiated: Strategy that is used if the product or service is perceived to provide the same benefits to everyone, with no need to develop separate strategies for different groups. Differentiated: A firm targets several market segments with a different offering for each Concentrated: Selecting a single, primary target market and focusing all energies on providing a product to fit that market's needs Micromarketing: Tailors a product or service to suit an individual customer's wants or needs.
