EXAM1 Basic Marketing – Flashcards
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1. What is a market
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A group of people with similar needs that can be satisfied with a product/ This group must have unmet needs possess something to exchange for the product and a willingness and authority to make the exchange/"pester power"-dual target child-parent.
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2. What is the Marketing Concept
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the satisfaction of consumers wants and needs at a profit
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3. What is a target market
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a group of people with similar needs which a company focuses its marketing plan
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4. What are the 4 P's of Marketing (Be able to apply them to examples.)
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Product Price Promotion Place
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5. What are the 5 elements of the Promotion Mix
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Advertising Publicity Personal Selling-one on one Sales Promotion-Frequent flyer miles Direct Marketing-online marketing (QVC)
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6. What is the difference between a Consumer Good and an Industrial Good
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Consumer good-purchased by final/ultimate consumers for personal or household use Industrial Good-purchased by B2B markets for use in business
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7. Know the 4 eras of the Evolution of Marketing. How has marketing evolved as we know it today
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The Production Era The Sales Era The Relationship Era The Triple Bottom Line Era
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The Production Era
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1860's -1920's Focus on the most efficient ways to make and distribute products, like Henry Ford's Model T & Ivory soap Marketing plays an insignificant role
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The Sales Era
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1920's - 1960's Focus on one-time sales of goods rather than repeat business Marketing viewed as a sales function
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The Relationship Era
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Consumer Orientation: focus on the satisfaction of customers' wants and needs Marketing becomes more important in the firm Recessionary times of the 1980's led to the development of Total Quality Management (TQM) that involves ALL employees in continuous product quality improvement
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The Triple Bottom Line Era
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Maximize 3 components: Financial Bottom Line: financial profits to stakeholders Social Bottom Line: contributing to the communities in which the company operates Environmental Bottom Line: Creating sustainable business practices that minimize damage to the environment or that even improve it
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8. Be able to apply the 3 components of the triple bottom line era to examples in the marketplace.
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Customer Relationship Management (CRM) tracks consumers' preferences and tailor the value proposition to each individual Social marketing concept: Management philosophy that marketers must satisfy customers' needs in ways that also benefit society and deliver value to the firm Sustainability-Creating products that meet present needs and ensuring that future generations can have their needs met Green marketing is one type of sustainable business practice...
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9. What is green marketing
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Marketing strategy that supports environmental stewardship, thus creating a differential benefit in the minds of consumers
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1. Review the concepts of Business Ethics, Social Responsibility, Codes of Ethics
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Business ethics: Basic values that guide a firm's behavior Code of ethics: Written standards of behavior to which everyone in the organization must subscribe Social Responsibility: A management practice in which organizations seek to engage in activities that have a positive effect on society and promote the public good
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2. Know the 4 levels of the Social Responsibility Pyramid. (Be able to apply each level to examples.)
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Philanthropic:Be a good corporate citizen Ethical:Be Ethical Legal:Obey the Law Economic:Be Profitable
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3. Who is Shawn Fanning
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Napstar Inventor-Got sued for copyright issues with the file sharing he invented
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4. Who is Jeffrey Wigand
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The tobacco whistle-blower
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5. What is cause marketing
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activities in which firms seek to have their corporate identity linked to a good cause through advertising, public service, and publicity
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6. How does cultural diversity apply to social responsibility
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management practice that actively seeks to include people of different sexes, races, ethnic groups, and religions in an organization's employees, customers, & suppliers This relates in the way that they are trying to be ethical and have a positive effect on society and promote public good.
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Monopoly
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One firm controls all or nearly all the market for a good or service
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Oligopoly
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dominated by a small group of firms that are to exert control over supply and market prices EX-Car industry, Steel industry, cereal
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Monopolistic Competition
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Many firms in an industry offer wide variety of the 4 P's (product, price promotion place)
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Perfect Competition
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Many firms in an industry offer virtually homogenous product (a theoretical absolute and no pure examples really exist)
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8. What does the phrase "define competition generically" mean
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Rule of thumb. Overall competition is increasing Global Competition Competing on the internet
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9. Know the 5 periods of the Business Cycle as they relate to the Economic Environment of Marketing.
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Prosperity: high levels of demand, income, employment Recession: falling demand, income, employment Recovery: gradual improvement of these factors Depression: A severe recession; prices fall but low demand due to low incomes and high unemployment Inflation: prices and the cost of living rise while money loses its purchasing power due to escalating cost of goods
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10. How do advancements in technology affect marketing opportunities
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Technology provides firms with important competitive advantages Technology provides new product opportunities but also makes other products obsolete Technology provides new ways of marketing products
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Sherman Anti-trust act (1890)-
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monopolies and any attempt to unreasonable restrain trade are illegal
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FTC Act (1914)
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established the FTC to act as a watchdog over monopolistic practices
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Wheller-Lea Amendment ( 1938)
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amended the FTC Act makes deceptive and misleading advertising illegal
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Lanham Act (1946)
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protects and regulates brand names and trademarks
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12. What government agency has jurisdiction over false advertising
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FTC
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13. What is a cease and desist order as it pertains to false advertising
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It makes you remove and pull all of the false advertising off of the shelves and off of tv immediately
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14. What is corrective advertising
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Fixing a false advertisement and making people aware of the fix
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15. What is meant by "puffery" in advertising
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Puffery is to puff things up "worlds best coffee"
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16. What is meant by "weasel words" in advertising
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Weasel words make a claim that look legitimate to casual people "up to 50% off all products"
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17. What is consumerism
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The social movement directed toward protecting consumers from harmful business practices
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18. Know JFK's Consumer Bill of Rights. (How did these rights impact marketing actions, product designs, advertising, laws, etc.
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The right to be safe The right to be informed The right to be heard the right to choose freely
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Fair Packaging and and Labeling act 1966
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ensures product packages are labeled honestly
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Cigarette labeling act 1967
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requires health warnings on cigarettes
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Public Health Cig Smoking Act 1970
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stronger health warning on cigarettes; banned cigarette advertising on radio and television
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Consumer Product Safety Commission Act 1972
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created the CPSC to monitor and recall unsafe products sets product safety standards
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20. Trademark Law: What is the time period for trademark protection What is required to get a trademarked renewed? Be able to give examples of brand names that lost their trademark rights due to the generic use of the brand name. What elements of the brand can be given trademark protection?
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Lanham Act- Brand names cannot be confusingly similar. 10 year of trademark protection. You have to prove that the trademark is currently being used by the company and that the trademark has not become generic in use by consumers. Aspirin Escalator Yo-Yo Zipper. Symbols, Colors, Shapes, and sounds are elements in which trademarks can be given.
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21. What are demographics as part of the sociocultural environment of marketing
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people descriptions"; age, gender, race, income, education level, occupation, family size, marital status, etc.
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22. What is meant by the term "ethnocentrism"
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the tendency to prefer products from one's own culture
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1. What are the 4 sources of information for a Marketing Information System
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Internal Company data Marketing Intelligence data Marketing Research data Acquired Databases
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2. What is data mining
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Sophisticated analysis techniques to take advantage of the massive amount of transaction information now available Analysts sift through data to identify unique patterns of behavior among different customer groups Finding statistical links that can help determine marketing actions Men buying beer when they buy diapers
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3. What are the 7 steps to the Marketing Research Process
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Define the Research Problem Determine the Research Design Choose the method to collect primary data design the sample collect the data analyze and interpret the data prepare the research report
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4. What is the difference between primary and secondary data
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Secondary data have been collected for some purposes other than the problem at hand Primary data is information collected directly from the respondents to specifically address the question at hand it is collected only if the secondary data is insufficient
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6. What are the characteristics, advantages and disadvantages of the 4 main types of survey methods
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Mail-questionnaires: low cost, anonymous, time lag, low response rate, "junk mail" Telephone- interviews: low cost, faster to conduct, higher response rate than mail, harder to reach a specific segment of the population that cannot be reached by phone for various reasons Face to face- interviews: ability to use visuals, higher cost, more time-consuming, "Mall Intercept Interviews" Online- questionnaires: faster, low cost, no geographic restrictions, ability to use visuals, instantaneous data collection and analysis, loss of control over who answers the survey, "hackers" can influence results or share data with competitors
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7. What do we mean by "observational" methods of data collecting
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data collection where the researcher records consumers' behaviors, often without their knowledge
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8. What is a "garbologist"
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An unobtrusive method A garbologist sifts through trash cans searching for clues about each household's consumption patterns Example: What beverages are consumed with what foods? Example: What income levels tend to eat canned soup
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9. What are "cookies" as they pertain to online data collection and observation methods
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online text files stored on an end-user's computer to enable web sites to identify the user and track the user's moves They enable a company to identify a previous visitor to a site, and build up a profile of that visitor's online behavior
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10. What does "Garbage in, garbage out" mean as it refers to marketing research
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How much faith should marketing managers place in research? Validity Reliability Representativeness
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11. What is the difference between a probability sample and a nonprobability sample
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Probability sample: Each member of the population has some known chance of being included Sample is representative of your population, and inferences about population are justified Nonprobability sample: Some members of population have no chance of being included No way to ensure that sample is representative of population
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1. What are the 5 steps of the Consumer Purchase Decision Process
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Problem Recognition-fed up with car Information Search-talks to friends visits show rooms Evaluation of Alternatives- looks at 3 different models Product choice-chooses car Postpurchase evaluation-drives car happy with choice
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3. What is Behavioral Targeting
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Behavioral targeting or behavioural targeting is a technique used by online publishers and advertisers to increase the effectiveness of...
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4. What are heuristics
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a mental rule of thumb used for a speedy decision such as price=quality brand loyalty country of origin
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5. What is Cognitive Dissonance
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buyers remorse after a purchase a consumer may feel doubt or anxiety about the purchase decision
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6. What are the 4 variations of the Consumer Decision Process("Not all Decisions are the Same")(Extended, Limited, Habitual, Impulse....Be able to identify examples of each.
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extended problem solving(car house major appliance) limited problem solving(clothing smaller appliance) habitual decision making (toothpaste newspaper grocery items gas) impulse purchase decisions (candy magazines)
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7. What is subliminal perception (Be able to identify examples. What are the conclusions that have been drawn regarding their use and effectiveness in marketing?)
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perception below the threshold of awareness hidden messages in advertising that attempt to appeal to a person's subliminal level
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8. What are the 5 levels of Maslow's Hierarchy of Needs
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Self Actualization- Self fulfillment enriching experiences(hobbies travel education) Ego Needs-prestige status accomplishment(cars furniture credit cards Belongingness-love friendship acceptance by others (clothing grooming clubs) Safety- security shelter protection ( insurance alarm systems) Physiological-water sleep food ( medicines staple items)
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9. What are the 2 types of Behavioral Learning covered in class as it pertains to marketing
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Classical conditioning- neutral stimulus will evoke the same response as the unconditioned stimulus Operant Conditioning- the learning that occurs as the result of rewards or punishment
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10. What is cognitive learning
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learning that stresses the importance of internal mental processes and that views people as problem solvers
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11. How is the study of lifestyle and psychographics used in marketing
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lifestyle is a pattern of living that determines how people choose to spend their time, money, and energy Psychographics group consumers according to activities interests and opinions (AIO inventory)
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12. What is an AIO Inventory
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Activities, Interests, and Opinions
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13. What is sensory marketing
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marketing techniques that link distinct sensory experiences such as unique fragrance with a product or service ...
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14. How has time poverty as a situational influence among American consumers led to marketing opportunities
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consumers belief that they are more pressed for time than ever before a sense of time poverty has led marketers to fulfill a consumer need 1 hour photo labs drive thrus...
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15. How do social influences such as culture, social class, group memberships, opinion leaders and gender roles impact a consumer's decision making
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the overall rank or social standing of groups of people within a society according to factors such as family background education occupation and income status symbols such as luxury products provide a way for people to flaunt their membership in higher social classes
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16. What do we mean by the "Mass Class"
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large numbers of global consumers who enjoy a level of purchasing power allowing them to afford high quality products offered by well known multinational companies
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17. What are the 3 types of reference groups Which two are more influential in consumer behavior than the third?
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membership aspiration dissociative
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18. What is an opinion leader
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people who influence others attitudes or behaviors because others perceive them as possessing expertise about the product have high interest in product category impart both positive and negative product information are among the first to buy new products celebrity spokespersons are one form of opinion leaders.
