question

marketing

answer

building profitable customer relationships

question

purpose of marketing

answer

to create value for customers and to capture VALUE in return

question

marketing

answer

the process of planning and executing the conception, pricing, distribution, and promotion of ideas, goods and services to create exchanges that satisfy the perceived needs, wants and objectives of individuals and or organizations

question

marketing

answer

the focus is on developing and sustaining RELATIONSHIPS with their customers

question

needs

answer

states of felt deprivation

question

physical needs

answer

food, water, shelter

question

social needs

answer

belonging

question

individual needs

answer

personal desires

question

wants

answer

needs shaped by culture & individual personality -> triggers demand (as does needs)

question

demands

answer

wants combined with buying power (how marketing survives)

question

products

answer

tangible, physical things

question

services

answer

intangible, eg. customer services

question

experiences

answer

brand experiences, eg. disneyland

question

marketing offerings

answer

some combination of products, services, info, or experiences offered to a market to satisfy a need or want. HAS to be offered to the right consumers

question

marketing myopia

answer

sellers pay more attention to the specific products they offer than to the benefits and experiences produced by the products

question

exchange

answer

the act of obtaining a desired object from someone by offering something in return. eg. payment; profit for services/products

question

transaction

answer

consists of a trade of values between 2 parties

question

value

answer

the customer's perception of all the benefits of a product or service weighted against all the COSTS of acquiring and consuming it

question

marketing management

answer

the art and science of choosing target markets and building profitable relationships with them; all depends on the research that was done prior to the actual marketing- goal is NOT to promote to as many people as possible, all marketing is focused on SPECIFIC target markets

question

customer relationship management

answer

the overall process of building and maintaining profitable customer values and satisfaction

question

customer perceived values

answer

the difference between total customer value and total customer cost

question

customer satisfaction

answer

the extent to which a product's perceived performance matches a buyer's expectations (TRUST IS KEY)

question

customer equity

answer

the total combined customer life-time values of all the company's customers. They view customers as an assets need to be maximized

question

butterflies

answer

good fit between company's offerings and customer's needs. High profit potential

question

true friends

answer

good fit between company's offerings and customer's needs. highest profit potential

question

strangers

answer

little fit between company's offerings and customer's needs. lowest profit potential

question

barnacles

answer

limited fit between company's offerings and customer's needs. low profit potential

question

customer loyalty and retention, share of market and share of customer, customer equity

answer

outcomes of creating customer value include:

question

understand the marketplace, design a customer-driven marketing strategy, construct a marketing program that delivers superior value, build profitable relationships & create customer delight, capture value from customers to create profits & customer equity

answer

the marketing process

question

brand loyalty

answer

loyal to a product or service coming from the same brand

question

functional benefits

answer

actual benefits

question

experimental benefits

answer

benefits from tourism

question

psychological benefits

answer

benefits from luxury brands

question

money paid for, other factors such as acquiring information about the product/services making actual purchase, learning to use it, maintenance & disposal

answer

costs include:

question

dividing the market into segments, selecting the segment to the the target market, decide on a value proposition

answer

selecting customer to serve

question

consumer buying behavior

answer

the buying behavior of final consumers- individuals & household who buy goods & services for personal consumption

question

products, services, activities, ideas

answer

consumer behavior involves:

question

acquisition, use, disposal

answer

consumer behavior involves: (more than buying)

question

many

answer

consumer behavior can involve ___________ people

question

many

answer

consumer behavior involves _______ decisions

question

feeling and coping

answer

consumer behavior involves______ and _______

question

culture

answer

most basic cause of a person's wants & behavior

question

subcultures

answer

groups of people with shared value systems based on common life experiences and situations

question

social classes

answer

a status hierarchy by which groups & individuals are classified on the basis of esteem and prestige (usually do not move to another social class easily, relatively permanent, homogeneous)

question

group influence

answer

the ways in which group memebrs influence the attitudes, opinions, and behaviors of others within the group

question

word of mouth

answer

information about products, services, and experiences that is transmitted from consumer to consumer

question

organic

answer

occurs naturally when consumers truly enjoy a product or service and want to share their experiences with others

question

amplified

answer

occurs when marketers attempt to launch or accelerate word of mouth

question

opinion leaders

answer

people within a reference group who have/exert social influence on others: family, friends, famous ppl

question

age and life cycle, occupation, economic situation, lifestyle, personality and self concept

answer

personal factors include:

question

activities, interests, opinions

answer

AIO Dimensions stands for:

question

professionalism

answer

look professional when looking for a job

question

motivations

answer

the inner reasons or driving forces behind human actions as consumers are driven to address real needs

question

maslow's hierarchy of needs theory

answer

theory that explains the factors that compel a consumer to take an action

question

physiological needs, safety, social love/ belonging, esteem, self actualization

answer

Hierarchy of needs from bottom to top

question

perception

answer

the process by which people select, organize, and interpret information to form a meaningful picture o the world

question

selective perception

answer

perception as selective and subjective

question

learning

answer

_______ describes changes in an individual's behavior arising from experience

question

belief

answer

a descriptive thought that a person has about something

question

attitude

answer

a person's relatively consistent evaluations, feelings, and tendencies toward an object or idea (learned, difficult to change)

question

complex buying behavior

answer

type of buying decision behavior, high consumer involvement--> percieved significant brand differences

question

dissonance-reducing buying behavior

answer

type of buying decision behavior, high consumer involvement for an expensive, infrequent, or risky purchase (or meaningful) ->little significant brand difference

question

habitual buying behavior

answer

type of buying decision behavior, low consumer involvement --> little significant brand difference

question

variety-seeking buying behavior

answer

type of buying decision behavior, low consumer involvement --> significant perceived brand differences, brand switching

question

need recognition

answer

the recognition of the current actual state vs. ideal state

question

problem recognition, information search, alternative evaluation, purchase decision, post purchase evaluation

answer

stages in the consumer decision-making process

question

cognitive dissonance

answer

discomfort caused by post purchase conflict, occurs in most major purchases; maybe a lot of money was spent and you can't return it

question

awareness, interest, evaluation, trial, adoption

answer

stages in the adoption process

question

innovators

answer

venturesome; type of people to LINE UP FOR PRODUCTS

question

early adopters

answer

opinion leaders in their communities; tend to post reviews

question

early majority

answer

adopt new ideas before the average person

question

late majority

answer

adopt an innovation only after a majority of people have tried it

question

laggards

answer

tradition bound; adopt the innovation only when it has become something of a tradition itself, or not accept it

question

customer needs, marketing environment, competition

answer

companies need information about their:

question

more, better

answer

marketing managers do not need _____ information, they need _______ information

question

customer insights

answer

the real value of marketing research

question

marketing information system

answer

a company's skills, processes and tools for gathering, analyzing and using environmental information

question

internal data

answer

customer records, sales history, etc

question

data can age quickly, may be incomplete or in the wrong form

answer

problems with internal data:

question

marketing intelligence

answer

the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketplace (not done independently by organization)

question

marketing research

answer

the systematic design, collection, analysis, and reporting of data relevant to a SPECIFIC marketing situation facing an organization ( customized, designed by self for the needs of each organization)

question

defining the problem and research objectives, developing the research plan, implementing the research plan, interpreting and reporting the findings

answer

market research process

question

exploratory research

answer

to gather preliminary information that will help define the problem and suggest a hypothesis

question

descriptive research

answer

to describe things and/or phenomenas; statistics/photos doesn't explain why or how something happened

question

casual research

answer

to test hypothesis about cause and effect relationships; WHY

question

cause, effect

answer

_______ must happen before an ______: chronological order the study of why and how things happen

question

secondary data

answer

information that already exists somewhere, having been collected for another purpose; public statistics, published texts

question

less expensive and accessible, only way to examine large scale trends

answer

advantages of secondary research include

question

needed information may not exist, data might not be useful, could be incomplete

answer

disadvantages of secondary research

question

primary data

answer

information collected for the specific purpose at hand

question

easier to organize, customized for the purpose of a study

answer

advantages of primary data

question

can be time consuming and expensive to collect

answer

disadvantages of primary data

question

observational research

answer

involves gathering primary data by observing relevant people, actions, and situations

question

ethnographic research

answer

type of research, trained observers watch and interact with consumers/subjects in their "natural habitat" (unnoticed, have to blend in)

question

survey research

answer

type of research suitable for collecting descriptive information

question

experimental research

answer

type of research that test casual relationships

question

descriptive survey

answer

type of survey, attempts to describe or document current conditions or attitudes (to explain what exists at the moment)

question

analytical survey

answer

attempts to describe and explain why situations exist

question

mail questionnaires

answer

type of contact method used to collect large amounts of information at a low cost per respondent (not very flexible, response rate is low, researcher often has little control over the sample)

question

telephone interviewing

answer

type of contact method, fast to collect information, flexible, intrusive, going out of date; still occasionally used

question

personal interviewing

answer

type of contact method, getting really detailed information

question

focus groups

answer

from 6~12 ppl are interviewed simultaneously with a moderator leading the respondents in a relatively unstructured discussion about the focal topic (organized discussion, can obtain several perspectives about the same topic, interactions among participants, fast data collection method)

question

sample

answer

a segment of the population selected for marketing research to represent the population as a whole

question

population

answer

a group or class of subjects, variables, concepts or phenomena

question

lower cost relative to a census study

answer

One main advantage of a sampling study is its _______________________

question

probability samples

answer

an objective procedure in which the probability of selection is known in advance for each population unit

question

random sampling

answer

each subject or unit in the population has an equal chance of being selected

question

simple random sample

answer

equal chance of selection; placed in list

question

systematic random sample

answer

issue of periodicity; chance of selection is influenced by the order of the list

question

cluster sample

answer

groups divided in groups, such as blocks, and draw samples for those blocks

question

available sample

answer

also known as convenient sample, collection of readily accessible subjects for study, may contain unknown/ unexplained errors

question

purposive sampling

answer

explicitly chosen to be a nonrepresentative to achieve a specific analytical objective to make sure that here are sufficient numbers of elements

question

snowball sampling

answer

sharing a survey via survey takers (collecter gives 5 ppl survey and asks the 5 ppl to each give the survey to another 5 ppl)

question

questionnaire

answer

a set of questions designed to generate the data necessary to accomplish the objectives of the research project

question

closed end

answer

___________________ questions include all the possible answers, and subjects make choices among them

question

highly efficient, time consuming to generate, not flexible

answer

characteristics of closed end questions include

question

open end

answer

__________________ questions allow respondent to answer in their own words

question

can provide more information, flexible, time consuming, interviewer bias may be present

answer

characteristics of open end questions

question

interpret the finding, draw conclusions, report to management

answer

process to interpreting and reporting the findings(make sure to answer whatever research question was raised in the beginning )

question

target segment

answer

the subgroup chosen as the focal point for the marketing program and advertising campaign

question

positioning

answer

designing and representing ones product or service so that it will occupy a distinct and valued place in the consumer's mind

question

positioning strategy

answer

involves the selection of key themes or concepts that the organization will feature for communicating this distinctiveness to the target segment

question

STP marketing

answer

the sequence of activities involving segmenting, targeting, and positioning

question

purpose of marketing

answer

to create exchanges that satisfies the perceived needs and wants of individuals and organizations

question

product's utility

answer

the products ability to satisfy both functional needs and symbolic or psychological wants

question

market segmentation

answer

breaking down large, diverse markets into more manageable submarkets or homogenous segments

question

geographic, demographic, psychographic, behavioral

answer

4 different kinds of market segmentation (bases for segmenting consumer markets)

question

demographic segmentation

answer

age and life cycle, gender, income, etc.

question

psychographic segmentation

answer

personality, lifestyle (activities, interests, and opinions)

question

behavioural segmentation

answer

usage patterns

question

usage patterns/commitment levels

answer

heavy users, non users, brand loyal users, switchers/variety seekers

question

target market

answer

a set of buyers who share common needs or characteristics that the company decides to serve

question

undifferentiated marketing

answer

mass marketing, very rare

question

differentiated marketing

answer

segmented marketing

question

concentrated marketing

answer

niche marketing, a firm goes after a large share of one or a few smaller segments or niches

question

micro marketing

answer

tailoring products to suit specific individuals or locations

question

differentiation

answer

to design a set of meaningful differences to distinguish a company's offerings from those of competitors, sets your business apart from the others in the field, allows you to avoid head on competition, and creates an element of monopoly power for yourself

question

product, services, personnel, channel, image

answer

five dimensions of differentiation

question

identity

answer

designed by the company, communicated to the market by symbols, logos, events, written and audiovisual media, etc.

question

image

answer

the understanding and view of the market about the company, it establishes the products planned character and value proposition, and distinguish the product from competing products

question

position

answer

the set of perceptions, impressions, ideas and feelings that consumers have for the product

question

what is positioning

answer

identifying target market or markets, customers that the organization will seek the serve, and to create a different advantage or competitor edge that will enable the organization to serve the target market more effectively than competitors (also puts a firm in a sub segment of its chosen market)

question

types of positioning strategies

answer

more for more, more for the same, same for less, less for much less, more for less

question

physical positioning

answer

based on technical data rather than market data

question

perceptual positioning

answer

positioning based on consumers evaluation of many products, subjective

question

positioning concept

answer

the general meaning that is understood the customers in terms of its relevance to their needs and preferences

question

functional concept

answer

type of positioning concept, when the brand focuses on what the product does (crest, clorox)

question

symbolic positioning

answer

trying to communicate status/symbol through an idea (brand names)

question

experimental concepts

answer

type of positioning concept, BMW

question

positioning errors

answer

underpositioning, overpositioning, confused positioning, doubtful positioning

question

repositioning

answer

a marketing strategy that changes aspects of a product or brand in order to changes market position and alter consumer perceptions

question

positioning statement

answer

should follow the form: to (target segment abd need) our (brand) is (concept) that (point of difference)

question

product

answer

anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need

question

services

answer

a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible

question

levels of product and services

answer

core customer value, actual product, augmented product (offering additional consumer services and benefits, like warranties)

question

consumer products

answer

bought by final consumer consumers for personal consumption

question

industrial products

answer

for further processing or for use in conducting a business (materials and parts, capital items, supplies and services)

question

organization

answer

profit (businesses), non profit

question

person

answer

politicians athletes, actors, etc.

question

place

answer

tourism

question

social marketing

answer

using marketing tactics to bring social change (psas, cancer awareness rasing, etc.)

question

product quality

answer

creating customer value and satisfaction

question

quality performance

answer

consistency, and freedom from defects

question

project features and style

answer

for differentiation, appearance, and to add image

question

branding

answer

for identification, image, reputation, etc.

question

brand

answer

a name, term, sign, symbol, or design, or a combination of these, which identifies the maker or seller of a product or service

question

identification, communication of quality and consistency

answer

advantages of branding for buyers

question

legal protection, for easier market segments

answer

advantages of branding for sellers

question

line extension

answer

extended to new forms, sizes, and flavours or an existing product category

question

brand extension

answer

extended to new product categories

question

multibrands

answer

in the same category

question

new brands

answer

in new product categories

question

brand equity

answer

the differential effect that knowing the brand has on customer response to the product and its marketing (differentiation, relevance, knowledge, esteem)

question

brand evaluation

answer

estimating the total financial value of a brand

question

national brand vs store brand

answer

store brands yield higher profit margins for the reseller, and gives resellers exclusive products

question

co branding

answer

two established brand names of different companies are used on the same product

question

packaging

answer

designing and producing the container or wrapper for a product

question

labelling

answer

identification, promotion, gives description about the product

question

product line

answer

a group of products that re closely related because they function in a similar manner (all the ipads)

question

product line length

answer

the number of items in the line

question

product line filling

answer

adding more items within the present range (colours, size)

question

product line stretching

answer

lengthening the product line beyond its current range

question

product mix

answer

product portfolio, all the product lines and items (has 4 dimensions, width, length, depth, and consistency)

question

product mix width

answer

different product lines

question

product mix length

answer

total number of items within its lines

question

product mix depth

answer

versions offered of each product in the lines

question

product mix consistency

answer

how closely related the various products lines are

question

service infallibility

answer

cannot be seen before purchase

question

service inseparability

answer

cannot be separated from provider/server, and quality depends on the server

question

service variability

answer

depends on who, when, where, how, the service is provided

question

service perishability

answer

be consumed on the spot

question

cause of new product failures

answer

presentation of market size, product design problems, product incorrectly positioned, priced, or advertised, competitive market

question

product development, introduction, growth, maturity, decline

answer

product life cycle

question

product development

answer

sales at zero, not ready

question

introduction

answer

profits are non existent, have to spend a lot of money to get people to be aware of the product

question

growth

answer

a period of rapid market acceptance and increasing profits

question

maturity

answer

a period of slowdown in sales, hits a plateau

question

decline

answer

sales fall off and profits drop if you don't put in efforts to rebrand or add new products to stimulate growth

question

price

answer

the amount of money charged for a product or service, also the only element that produces profit

question

price

answer

the sum of all the values that customers give up in order to gain the benefits if having or using a product or service

question

customer value based pricing

answer

pricing based on buyers perceptions of value

question

good value pricing

answer

the right combination of quality and good service at a fair price

question

every day low pricing

answer

charging at a constant, everyday, low price (100 yen, walmart)

question

high low pricing

answer

running frequent promotions to lower prices temporarily on selected items (supermarkets, online stores)

question

cost based pricing

answer

based on the costs for producing, distributing and selling for-profit plus a deliberate of return for its effort and risk

question

costs

answer

fixed costs, variable costs, total cost

question

cost plus pricing

answer

adding a standard markup to the cost of a product

question

break even pricing

answer

(target profit pricing) the firm tries to determine the price at which it will breakeven or make the target profit it is seeking

question

completion based pricing

answer

setting prices based on competitors' strategies, costs, prices, and market offerings

question

pure competition

answer

no single buyer or seller had much effect on the going market price

question

monopolistic competition

answer

a range of prices occurs because sellers can differentiate their offers to buyers

question

oligopolistic competition

answer

the market consists of a few sellers who are highly sensitive to each other's pricing and marketing strategies

question

pure monopoly

answer

the market consists of one seller and many buyers

question

elasticity of demand

answer

the percentage change in unit sales that results from a percentage change in price

question

inelastic demand

answer

demand hardly changes with a small change in price

question

elastic demand

answer

demand changes greatly with a small change in price, lower price increases demand significantly

question

market skimming pricing

answer

set high initial prices to skim revenues layer by layer from the market

question

market penetration pricing

answer

set a high initial price in order to penetrate the market quickly and deeply, to attract a large number of buyers quickly and win a large market share

question

discounts

answer

cash, quantity, trade, seasonal

question

trade in allowances

answer

bring in an old item to buy a new ones may usually have a slight discount

question

promotional allowances

answer

giving retailers discounts for sales promotion

question

customer segment pricing

answer

may get discounts if you become a memver, for loyalty programs

question

product form pricing

answer

part of segmented pricing

question

location pricing

answer

the different prices between adult sections and children sections

question

time based pricing

answer

type of pricing, seasonal

question

reference prices

answer

prices that buyers can carry in their minds and refer to when looking at a given product

question

initiating price cuts

answer

when there is an excess capacity, leftovers, fall in market shares, desire to dominate the market

question

initiating price increases

answer

occurs when the cost inflates, and there is high demand

Marketing Quizlet GG, marketing lecture 4 – 6 – Flashcards

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