MKTG Exam1 PDF

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Format ● Chapters 1-10 (excluding 3) ● 50 questions, 2pts each ● 1 essay question, 25 pts ○ Choose one of three or four choices Concept Review Chapter 1:

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Core Aspects of Marketing: CEEPS4 o Creates value o Entails exchange o Effects Stakeholders o Performed by Firms or People o Satisfies Consumer needs and Wants

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Page 5: Exchange ○ The trade of things of value between the buyer and the seller, each is better off as a result ○ goods/services producers(sellers) → communications and delivery→ consumer(buyer) → money and information→ sellers Page 6: Marketing Mix (The Four P’s) ○ Product: Creates value by developing a variety of offerings including goods and services and ideas to satisfy consumer needs ○ Price: Captures value - everything has a price, whether it be monetary, time or energy in order for an exchange to occur ○ Place: Delivers the value proposition, facilitates all of the necessary activity to get the product to the right customer when they want it ○ Promotion: Communicates the value proposition, conveying the product of the value of the service/ good to the public Page 7: ○ Goods- items that you can physically touch ○ Services- intangible consumer benefits that are produced by people or machines that cannot be separated by the producer ○ Ideas- thoughts, opinions, and philosophies; intellectual concepts that are marketable material Page 10:p ○ B2B: (business to business): the process of selling merchandise or services from one business to another ○ B2C: when businesses sell to consumers ○ C2C: when consumers sell to other consumers Page 12: Eras of Marketing ○ Production-Oriented Era: Turn of 20th century, where it was believed that a good product would sell itself ○ Sales-Oriented Era: 1920-1950 (major events: The Great Depression and WWII), where production and distribution techniques became more sophisticated, and where consumers were conditioned to consume less or manufacture items ○ Marketing-Oriented Era: After WWII (Baby Boomer Era), manufacturers began to focus more on consumer products rather than the war effort→ consumers had choices and purchasing decisions on the basis of factors such as quality, convenience, and price. ○ Value-Based Marketing Era: market oriented, where firms have transcended a production or selling orientation and attempt to discover and satisfy consumers’ needs and wants→ by the beginning of the 21st century, the main objective was to give consumers the greater value than the competitors Page 13: Value: reflects the relationship between benefits and cost→ you get what you give

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Page 15: Building Relationships: where firms focus on the lifetime probability of the relationship between them and the consumer, rather than the amount of money made during each transaction Page 19: Supply Chain: A group of firms that make and deliver a given set of goods and services ○ the sequence of processes involved in the production and distribution of a good/service Page 21: Entrepreneurs: people who organize, operate, and assume the risk of a business venture→ marketing can the center of success for these new ventures

Chapter 2: ● Page 30: ○ Marketing Strategy: identifies a firm’s target markets, a related marketing mix (its four Ps), and the bases on which a firm plans to build a sustainable competitive advantage ○ Sustainable Competitive Advantage: an advantage over the competition that is not easily copied and can be maintained over a long period of time ●

Page 31: 4 Macro Strategies ○ Customer excellence: focuses on retaining loyal customers and excellent customer service ○ Operational excellence: efficient operations, supply chain and human resource management ○ Product excellence: products with high perceived value and effective branding and positioning ○ Locational excellence: physical location and internet presence

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Page 35: Marketing Plan

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Page 37: ○ Situation Analysis: methods that managers use to analyze an organization's internal and external environment to understand the organization's capabilities, customers, and business environment ○ SWOT: The situation analysis uses the SWOT analysis, it assesses the internal environment with regard to its Strengths and Weaknesses, and the external environment with Opportunities and Threats Page 41: Implementation ○ Fourth step of planning process, where marketers actually implement the marketing mix- product, price, promotion, and place for each product and service on the basis of what they believe their target markets will value Page 43: Metric ○ a measuring system that quantifies a trend, dynamic, or characteristic. Used to explain why things happened and can project the future Page 48: ○ Portfolio Analysis

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Page 51: Growth Strategies: ○ Market penetration: uses marketing mix and focuses efforts on existing customers encouraging current customers to buy more, or by attracting new customers to the firm’s current target market ○ Marketing development: uses existing marketing offering to reach new market segments, domestic or international ○ Product development: offers a new product or service to current target market ○ Diversification strategy: introduces a new product or service to a market segment that is currently not served→ can be either related or unrelated ■ Related: the current target market and/or marketing mix shares something in common with the new opportunity ■ Unrelated: the new business venture lacks any common elements with the present business Chapter 4: ● Page 119:

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Conscious Marketing: entails a sense of purpose for the firm that is higher than simply making a profit by selling products and services ○ Four Overriding Principles i. Recognition of a marketing’s greater purpose: when the marketing function recognizes that the purpose of business should be more than just making profits-- the actions undertake change in focus ii. Consideration of stakeholders and their interdependence: conscious marketers consider how their actions will affect the expansive range of potential stakeholders iii. The presence of conscious leadership, creating a corporate culture: a conscious marketing approach implies that the firm’s leaders are dedicated to the proposition of being conscious at all levels of the business, throughout its entire culture iv. The understanding that decisions are ethically based: conscious marketers must make decisions based on marketing ethics, which examine ethical situations that are specific to the domain of marketing, including societal, global, or individual consumer issues. ○ Stakeholders: a broad set of people who might be affected by a firm’s action, including not just corporate shareholders and customers, but also past, current, and prospective employees and their families; supply chain partners; government agencies; the physical environment; and members of the communities in which the firm operates (on a local or global scale) Page 120: ○ Business Ethics: concerned with distinguishing between right and wrong actions and decisions that arise in a business setting, according to the broad and well-established moral and ethical principles that may arise in a business setting ○ Marketing Ethics: examines ethical situations that are specific to the domain of marketing, including societal, global, or individual consumer issues Page 121: ○ Corporate Social Responsibility (CSR): not mandated by any law or regulation, but is associated with the demands , expectations, requirements, and desires of various stakeholders→ the responsibilities that they have to society ○ Triple Bottom Line: economic, social, and environmental expectations in regard to CSR

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Page 127: Integrating Conscious Marketing ○ Must be integrated throughout the entire company and throughout the each marketing stage i. Planning Phase: includes the firm’s mission or statement ii. Implementation Phase: when the firm identifies potential markets and ways to deliver the four Ps to them, firms must consider pertinent issues like the law and ethics iii. Control Phase: systems must be in place to check if conscious marketing issues were successfully executed from the planning phase Page 130: ○ The Nature of Ethical and Unethical Marketing Decisions: The ability to distinguish what is right and wrong, to avoid potential unethical behaviors, conscious marketing seeks to align short-term goals to the long-term overriding goals of the firm i. Unethical Marketing Decisions: participating in high-pressure, misleading, or deceptive sales tactics; misrepresenting company earnings, sales and/or revenues; withholding or destroying documents that can hurt the company; and conducting false/ misleading advertisements.

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Page 131: Exhibit 4.4

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Page 132: Framework for Ethical Decision Making ○ Identify Issues: includes data entering or collecting mistakes, or using tactics that could potentially harm the public ○ Gather information and identify stakeholders: the firm focuses on gathering facts that are important to ethical issues, including all legal information- there must be an identification process where the firm finds all of the groups and individuals who have a stake and how to solve that problem ○ Brainstorm alternatives: process where a solution or alternative is found to resolve the issue

Chapter 5:

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Page 151: Immediate Environment ○ Competition- Significantly affects consumers in the immediate environment. Marketers must understand their firms competitors including strengths and weaknesses ○ Corporate Partners -Parties that work with the focal firm are its corporate partners Page 153: Culture ○ Shared meaning of beliefs, morals, values, and customs of a group of people. Page 155: Demographics ○ Indicate the characteristics of human populations and segments, especially those used to identify consumer markets (age, gender, race, income) Page 156: Generational Cohorts ○ A group of people of the same generation have similar purchase behaviors because they have shared experiences and are in the same stage of life. Page 159: Social Trends ○ Social trends shape consumer values. ○ Health and Wellness Concerns ○ Greener Consumers ■ Green marketing Page 162: Technological Advances ○ Improving the value of products and services. Page 164: Economic Situation

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Monitor economic situation in home country and abroad because it affects the way consumers buy merchandise and spend money. ○ Inflation- persistent increase in the prices of goods and services ○ Foreign Currency Inflation ○ Interest Rates- represent the cost of borrowing money. ● Page 165: Political and Regulatory Environment ○ Comprises political parties, government organizations, and legislation and laws. Organizations must understand and comply with legislation regarding fair competition, consumer protection, industry specific regulations. Chapter 6: ● Page 176:

Need Recognition: the consumer decision process begins with need recognition, where the consumer recognizes they have an unsatisfied need and they would like to go from their actual, needy stated to a different, desired state→ the greater discrepancy between the two states, the greater the need recognition. Page 178: Search for Information: ○ Searching information about the various options that exist to satisfy that need ○

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Internal search for information: the buyer examines their own memory or knowledge about the product or service gathered through past experiences ■ External search for information: the buyer seeks outside their personal knowledge base to help make a buying decision Page 181: Evaluation Alternatives: occurs while the consumer is engaged in the process of information search ○ Attribute Sets ■ Universal: all of the possible choices for the product category ■ Retrieval: which are 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 Page 185: Post Purchase: The final step of the consumer decision process is postpurchase behavior, it entails actual rather than potential customers, based off of factors such as customer satisfaction Page 186: ○ Cognitive Dissonance: an internal conflict that arises from an inconsistency between two beliefs or between beliefs and behavior, eg buyer’s remorse ○ Customer Loyalty: Following the post-purchase stage of the decision making process, where there is a solid relationship between the company and the customer, leading the customer to become loyal to the brand and company only purchasing their products and services Page 188: Factors Influencing the Consumer Decision Process

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Page 198: Involvement: the consumer’s degree of interest in the product or service, consumers may have different levels of involvement for the same type of product

Chapter 7: ● Page 210: ○ B to B ■ Process of buying and selling goods or services to be used in the production of other goods and services for consumption by the marketing transaction involves manufacturers ○ Derived Demand ■ Reflects the link between consumers demand for a company's output and the company's purchase of necessary inputs to manufacture or assemblee that particular output

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Page 216: B to B Buying Process ○ Need recognition ○ Product specification ○ RFP Process ○ Proposal analysis and supplier selection ○ Order specification ○ Vendor performance assessment using metrics Page 219: Buying Center ○ Initiator: first person who suggests buying the particular product/service ○ Influencer:PErson whose views influence other members ○ Decider: Person who determines any part of or the entire buying decision ○ Buyer:Person who handles the paperwork of the actual process ○ User:Person who consumers or uses product

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Gatekeeper:Person who controls information ro access to decision making and influencers. Page 220: Organizational Culture ○ Reflects the set of values, traditions, and customs that guides its employees behavior. Page 223: B to B: Relationships ○ Blogs, social media help build brand awareness and enhance B2B relationships. White papers are a promotional technique used by B2B sellers that provide info about a product or service in an educational not persuasive or ad like manner.

Chapter 8: Page 237: Accessing Global Markets ○ Economic Analysis Using Metrics ■ General economic environment/market size and growth/income ○ Infrastructure and technology ■ transportation/channels/communication/commerce ○ Government Actions ■ Tariff, quota, exchange control, trade agreement ○ Sociocultural Analysis ■ Power distance, uncertainty avoidance, individualism, masculinity, time orientation

Page 240: Bottom of the Pyramid

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In settings which consumers earn very low wages. Large impoverished populations that still want and need consumer goods but cannot pay the prices ■ P&G developed single use shampoo for consumer who cannot afford a whole bottle ■ Coca Cola lowered price to .10 cents a bottle in India Page 244: Analyzing Socio-Cultural Factors ○ Power Distance: willingness to accept social inequality as natural ○ Uncertainty Avoidance: the extent to which a society is willing to take risks and how much they rely on orderliness ○ Individualism: perceived obligation to and dependence on groups ○ Masculinity: Extent to which dominant values are male oriented ○ Time Orientation: Short Vs Long term. Long term commitments/ willingness to accept a longer time horizon ○ Indulgence: Extent to which a society allows for gratification and fun Page 250: Exhibit 8.5

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Page 253: Target Market STP Segmentation Targeting Position

Chapter 9: Page 269: Exhibit 9.1

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Page 270: Segmentation Methods

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○ Geographic: Continents ○ Demographic: Age, gender, income, education ○ Psychographic: Lifestyle, self-concept, self values ○ Benefits: Convenience, economy, prestige ○ Behavioral: Occasion, loyalty Page 277: Multiple Segmentation Methods ○ Geodemographic Segmentation ■ Combination of geographic, demographic, and lifestyle characteristics to classify consumers. ■ Tapestry Segmentation System

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Page 284: Exhibit 9.7

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Page 286: ○ Market Positioning ■ Defining the market mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products. ○ Value Proposition ■ Communicates the customer benefits to be received from a product or service and thereby provides reasons for wanting to purchase it. Page 289: Value ○ Popular positioning method because the relationship of price to quality is among the top considerations for customers when they make a decision.

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Chapter 10:

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Page 309: Secondary Data ○ Comes from free or inexpensive external sources (census data/trade association/reports in magazines)

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○ Can also purchase secondary data from specialized research firms Page 312: Internal Secondary Data ○ Data warehouses- Large computer files ○ Data mining-variety of statistical analysis tools to uncover patterns in data or relationships among variables. Page 315: Exhibit 10.5

Page 317: In-Depth Interviews ○ Trained researchers ask questions and listen to and record answers. Then they pose additional questions to clarify or expand on a particular issue. Helps managers understand the nature of their industry, important trends, and customer preferences. Page 318: ○ Focus Groups ■ Small groups (8-12) come together to have a intensive discussion about a particular topic. Moderator guides conversation using a predetermined outline of topics of interest. ○ Survey Research ■ Most popular type of quantitative primary collection method. ■ Survey-systematic means of collecting information from people using a questionnaire. ■ Questionnaire-document that features a set of questions designed to gather information from a respondent ■ Unstructured Questions-Open ended and allow respondents to answer how they want ■ Structured Questions-Close ended with a discrete set of alternative or specific answers. Page 320: Experimental Research (Experiment) ○ A type of quantitative research that manipulates one or more variables to determine which variables affect other variables.

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Page 321: Exhibit 10.9

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Page 323: Ethics ○ Critical for a firm to adhere to a ethical practices when conducting marketing research ○ Three Guidelines for Conducting Marketing Research ■ Prohibits selling or fundraising under the guise of conducting research ■ Supports maintaining research integrity by avoiding misrepresentation or the omission of pertinent research dada ■ Encourages the fair treatment of client and suppliers...