Business chapter 12 Marketing – Flashcards

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Marketing
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activity, set of institutions, and processes of creating, communicating, delivering, and exchanging offerings that have value for costumers, clients, partners, and society at large
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For profit organizations
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to deliver goods -Tide, Wrangler, Chevrolet, Hilton, Verizon, H&R Block
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Not for profit organizations
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private-sector organizations like Harvard University, Presbyterial Church, Red Cross, Sierra Club, American Cancer Society public-sector organizations like the University of Nebraska, state of Michigan, U.S postal service, U.S Marines, U.S treasury
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Marketing evolution
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production era, selling era, marketing concept era, customer relationship era
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Production era
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Production concept: emphasized producing as many goods as possible because there was an unlimited demand -represented a seller's market: market in which there is more demand for products than there is supply -Examples: oil
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Selling era
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Production underwent a massive change, introduced the assembly line Selling Concept: Emphasized high powered sales techniques to sell products -represented a Buyer's market: there were more products available than there were buyers -Example: aggressive TV ads
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Marketing concept era
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Marketing Concept: focuses on customer satisfaction, service, and profitability -Customer satisfaction: "We need to Give Buyers What They Expect From Us", concept of offering a product to please buyers by meeting their expectations -Focus on service: "Everyone from Ceo to Stock Clerk should focus on customer service", everyone focus on the same goal, the "not my job" attitude doesn't fit here -Emphasis on profitability: "We need to concentrate on the products that are most profitable", don't focus on offering the entire range of products and not on total sales
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Customer Relationship era
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Emphasizes finding out everything possible about customers and then using that information to satisfy and even exceed their expectations in order to build customer loyalty over the long term
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Value
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defined as a customer's perception that a certain product offers a better relationship between costs and befits than competitor's products do -firms are concerned with producing and delivering offerings that have value for customers, clients, partners, and society at large
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product
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a good (which is tangible) or service (intangible) that can satisfy customer needs
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product line
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collection of products designed for a similar market tor that are physically smaller examples: StateFarm home, health, and life insurance, Campell Soup Company different flavors
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Product mix
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combination of all product lines that a firm offers examples: StateFarm mutual funds, baking, loans, credit cards not just insurance, Campbell Soup company offering cookies, broth, sauces, etc
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consumer buying process
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behavior shown by consumers in considering and buying various products
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1. Problem Recognition
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"I realize I have a problem to resolve"
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2. Information search
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"I've got to find a solution to my problem"
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3. Evaluating alternatives
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"I'll weigh the pros and cons of the products available" -after gaining information you consider the benefits and drawbacks of each
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4. Purchase decision
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"I'll choose this one or not choose at all"
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5. Post purchase evaluation
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"Im happy/unhappy with my purchase and will/will not buy a similar one in the future" -buyers remorse
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Factors influencing buying behavior
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-culture and subculture: the influence of values and attitudes (nationality, gender and age, ethnicity and race, religion) -social class: the influence of our socioeconomic group (income level, profession, educational level, social status, political status) -reference groups: the influence of groups we identify with (family, friends, fellow students, college groups) -personal image: the look we wish to project (physical, profession, lifestyle, fashion) -situational matters: the effects of timing, moods, impulse, expectations, and so on (timing, coincidence, mood, impulse)
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three types of marketing
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-for profit marketing to consumers -for profit marketing of businesses to other businesses -not for profit marketing
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Marketing strategy
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1. plan for identifying the target market among market segments 2. creating the right marketing mix to reach that target market 3. dealing with important forces in the external marketing environment
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market segmentation
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dividing a market into groups whose members have similar characteristics or wants and needs
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target marketing strategy
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consisting of marketing directly to such segments-the target market
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For profit marking to consumers
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goods and service to personal use
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consumer market
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consists of all those individuals or households that want goods or services for their personal use -these are products that you buy everyday form toothpaste to downloaded songs -consumers fall into 5 segments from here
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1. geographic segmentation
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dividing the market by location categorizes customers according to geographical location -example: a nationwide retailer of hiking boots would tend to advertise more in colorado than new york city and tortilla factories would advertise in texas more than minnesota
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2. demographic segmentation
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dividing the market by by age, gender, income, and so on consists of categorizing consumers according to statistical characteristics of a population such as gender, age, income, education, social class, ethnicity, and so on
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3. Psychographic segmentation
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dividing the market by psychological characters, values, and lifestyles consists of categorizing people according to lifestyle, values, and psychological characteristics such as frugal versus free spending, or rebel versus conservative
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4. benefit segmentation
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diving the market by benefits that people seek in a product consists of categorizing people according to the benefits, or attributes that people seek in a product such as style verses economy or safety versus speed or high tech versus low tech features or even help for kinky hair over straight hair
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5. User rate segmentation
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diving the market by frequency of customer usage consists of categorizing people according to volume or frequency of usage
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Niche marketing
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consists of dividing market segments even further to micro segments for which sales may be profitable
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one to one marketing
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consists of reaching market segmentation to the smallest part-individual customers
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business market/business to business market
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known as the industrial or organizational market consists of those business individuals and organizations that want business goods and services that will help them produce or supply their own business goods or services -can be classified into three categories
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geographic segmentation
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dividing the market by location
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customer based segmentation
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categorizing business customers according to such characteristics as size, industry type, and product/service related attributes
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produce use based segmentation
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categorizes business customers according to how they will use the seller's product
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Not for profit marketing
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they use marketing too
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New products
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product that either is a significant improvement over existing products or performs a new function for the consumer -lifeblood of any company and of the free market system
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four reasons to introduce new products
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1. to stay ahead of or match the competition 2. to continue to expand revenue and profits 3. to fill out a product line 4. to take advantage of an opportunity
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Marketing mix
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Product (developing a product that will fit customer needs) Price Place Promotion
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Marketing research
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"is there an opportunity and a group of buyers for our possible product?"
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Product strategy
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"How do we design and test a product that will best meet consumer wants and needs" -concept testing: marking research designed to solicit initial consumer reaction to new product ideas -test marketing: process of testing products among potential users
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pricing strategies
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figuring out hose much to charge for a product-the price, or exchange value for a good or service -price can depend on whether you have competitors, whether you need to offer low prices to get costumers in the door, and etc
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place strategies
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placing or distribution is the process of moving goods and services from the seller to prospective buyers
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promotion strategies
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consists of all the techniques companies use to motivate consumers to buy their product
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Marketing research
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the systematic gathering and analyzing of data about issues relating to the marketing of goods and services
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1. define the problem
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clarify the question to be answered
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2. collect facts
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use published data or interviews, observation, experimentation, and focus groups to get information
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secondary data
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info acquired and published by others -U.S census Bureau data, various government publications, newspapers, magazines, academic journals, internet search, blogs
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primary data
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data derived from original research such as that which you might consider yourself -example: direct observation, interviews, surveys, questionnaires, customer comment cards, concept testing
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focus groups
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small groups of people who meet with a discussion leader and give their opinions about a product or other matters
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databases
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integrated collections of data stored in computer systems
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neuromarketing
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study of how people's brains respond to advertising and other brand related messages by scientifically monitoring brainwave activity, eye tracking, and skin response
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3. analyze the data
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use tools it may need editing which is checking over to eliminate mistakes or it may require the application of data analysis which is subjected to statistical tools to determine its significance
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4. take action
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implement the best solution
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external marketing environment
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the outside forces that can influence the success of marketing programs -global -economic -socioculture -technological -competitive -political -legal and regulatory
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environmentla scanning
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look at the wider world around them to identify what matters can affect the marketing program
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global forces
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influences brought about by all our global interconnections -example: the u.s national palate is changing-americans want hotter, minor, more flavorful foods-influenced by intense favors from places such as Latin America, China, Thailand
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economic forces
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recessions, inflations that certainly affect consumers buying power and willingness to buy -example: recent great recession with is vanished jobs, foreclosed homes, and destroyed savings, had a tremendous impact on retail sales
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sociocultural forces
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cultural changes reflecting customs, beliefs, and lifestyles or groups that differ in social class, ethnicity, age and so on. Example: members of the generation known as the Millennials are found to be optimistic
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technological forces
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consist of influences both highly visible that affect retailing such as the introduction of smartphones and less visible that affect manufacturing and distribution such as factory robots, which change the nature of delivering goods and services
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competitive forces
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consists of the actions of competing firms, industries, or counties
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political forces
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influences that occur because of the decisions of politicians and public officials -example: subsidies for green power
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legal and regulatory forces
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consist of laws and government regulations designed to protect consumers and restrain anticompetitive business behavior
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