Intro to Marketing Rutgers Chapter 1 – 6 Midterm Methot – Flashcards
Unlock all answers in this set
Unlock answersquestion
Marketing
answer
Process by which companies CREATE VALUE for customers and build strong customer relationships in order to CAPTURE VALUE from customers in return
question
"Marketing is __________"
answer
marketing is customers
question
Marketing is the process by which companies create _____________ for customers and capture __________ in return.
answer
value; value
question
Value=
answer
perceived benefits - perceived costs
question
The value of an offering is its perceived ______ minus its perceived ___________.
answer
benefits; costs
question
The Marketing Process
answer
Analysis -> Decisions -> Outcomes
question
4 P's
answer
Product, Place, Price, Promotion
question
Marketing Mix Decisions
answer
4 P's :Product, Place, Price, Promotion
question
The 5 Cs
answer
• Customers • Company • Competitors • Collaborators • Context
question
The Marketing Process: ANALYSIS
answer
Understand the marketplace and customer needs and wants ex: The 5 Cs
question
The Marketing Process: DECISIONS
answer
Design a customer value driven marketing strategy Construct an integrated marketing program that delivers superior value Aspirational and Marketing Mix decisions ex: segmentation, target positioning, 4P's
question
• Customer Needs
answer
• States of felt deprivation • Part of being human • e.g. physical needs, individual needs
question
The Marketing Process: OUTCOMES
answer
Engage customers, build profitable relationships, and create customer delight. Relationship Management (customers and partners) Capture Value : (Create Satisfied, Loyal Customers, generate referrals)
question
Customer Wants
answer
-Needs shaped by culture and individual personality • Described as specific objects
question
Customer Demand
answer
Wants backed by buying power.
question
Marketing Myopia
answer
Focus on company's needs instead of customers' needs and wants
question
Market Offerings
answer
Market Offerings fulfill customer needs ; wants.
question
Customer Satisfaction
answer
How well a market offering meets or surpasses customer expectations
question
When customer expectations exceed their actual experiences, the result is _______________.
answer
dissatisfaction
question
Exchange
answer
Exchange is the act of obtaining a desired object from someone by offering something in return.
question
Marketing Management Orientation
answer
-The company orientation towards the marketplace. -The philosophy the company applies while targeting a market. -There are 5 different marketing management orientations...
question
Types of Marketing Management Orientation
answer
Production Concept Product Concept Selling Concept Marketing Concept Societal Concept
question
Production Concept
answer
"Inside Out" Approaches FOCUS: production ; distribution efficiency
question
Product Concept
answer
"Inside Out" Approaches FOCUS: continuous product improvement
question
Selling Concept
answer
"Inside Out" Approaches FOCUS: large-scale selling and promotion
question
Marketing Concept
answer
"Outside In" Approaches FOCUS: delivering customer needs and value
question
Societal Marketing Concept
answer
"Outside In" Approaches FOCUS: improving customer and society wellbeing
question
Customer Lifetime Value (LTV)
answer
LTV is the value of the entire stream of purchases a customer makes over a lifetime of patronage
question
Share of Customer
answer
Share of Customer is the % they get of the customer's purchasing in their product categories Increase SOC of existing customers by: • Good customer relationship mgmt • More product variety • Cross-sell and up-sell opportunities
question
Share of Customer helps companies measure __________.
answer
their percentage of spending from specific buyers in the market
question
Customer Equity
answer
Customer Equity is the total combined LTVs of the all the company's current ; potential customers
question
Customer Relationship Management
answer
Short-term / Long-term High Profit Butterflies/ True Friends Low Profit Strangers/ Barnacles
question
Companies should invest in retaining all customers who purchase from them. (T/F)
answer
False
question
I splurged on an expensive vacation in Hawaii 7 years ago but haven't traveled much since. The resort likely now views me as a _______.
answer
Butterfly
question
Customer Satisfaction relates to how well a market offering meets or surpasses ____________.
answer
customer expectations
question
Strategic Planning
answer
Strategic planning helps a firm to maintain a strategic fit between its goals and capabilities and its changing marketing opportunities.
question
Strategic Planning Process
answer
Strategic planning helps a firm to maintain a strategic fit between its goals and capabilities and its changing marketing opportunities. -define company's mission -setting company objectives and goals -designing the business portfolio
question
Mission Statement
answer
Market (customer) oriented • Purposeful • Emphasizes strengths • Aspirational • Clarifies what's in, and what's out
question
Company Goals and Objectives
answer
The mission leads to long-term objectives - Business objectives - Marketing objectives • Objectives are achieved through short-term strategic goals ex: customer obj. operational obj. financial obj
question
Business Portfolio
answer
Business Portfolio is a collection of businesses and products that make up the company. Steps in business portfolio planning: - Analyze the firm's current business portfolio - Develop strategies for growth and downsizing to shape the future portfolio
question
Market Penetration
answer
Making more sales to current customers without changing your original products/services
question
Market development
answer
Identifying and developing new markets for existing products
question
Product development
answer
Offering modified or new products to current markets
question
Diversification
answer
Starting up or buying businesses beyond its current products or markets
question
Offering modified or new products to current markets represents which expansion strategy?
answer
Production development
question
Downsizing
answer
Reduces the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company's overall strategy • Reasons for downsizing: - Rapid growth of the company - Lack of experience in a market - Change in market environment - Decline of a particular product
question
_________ are internal limitations that may interfere with a company's ability to achieve its objectives.
answer
weaknesses
question
Marketing Strategy & Action Program - 4Ps
answer
Product: variety, quality, design, features, brand name, packaging, services, Price: list price, discounts, allowances, payment periods, credit terms Promotion: Advertising, personal selling, sales promotion, public relations. Place: channels, coverage, locations, inventory, transportation, logistics
question
Controls = Accountability
answer
Marketing ROI: - Standard marketing performance measures Financial ROI: Net return from a marketing investment divided by the costs of the marketing investment
question
Contents of a marketing plan
answer
1. executive summary 2. current marketing situation 3. threats and opportunities analysis 4. objectives and issues 5. marketing strategy 6. action program 7. budgets
question
In the Growth Share Matrix (aka BCG Matrix), SBUs that represent new innovations/ new product launches typically start in which quadrant?
answer
Question Mark
question
Marketing Environment
answer
Outside forces that affect marketing management's ability to build and maintain successful relationships with customers.
question
Microenvironnment
answer
Actors close to the company that affect its ability to serve its customers. -company -customers -competitors -collaborators
question
Macroenvironment
answer
Larger societal forces that affect the microenvironment
question
Actors close to the company that affect the organization's ability to serve its customers are part of the company's ______________.
answer
Microenvironment
question
5 majors forces in Macroenv.
answer
Demopgraphic economic natural technological political cultural
question
Demographic Environment
answer
Demography: Study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics • Marketers analyze: • Changing age* and family structures • Geographic population shifts • Educational characteristics • Population diversity
question
Economic Environment
answer
Economic factors that affect consumer purchasing power and spending patterns • Type of economy (industrial, developing, etc.) • Differences in income distribution • Changes in consumer spending
question
Natural Environment
answer
• Physical environment and natural resources needed as inputs by marketers or affected by marketing activities • Environmental sustainability concerns increasing • Trends: • Shortages of raw materials • Increased pollution • Increased government intervention
question
Technological Environment
answer
Most influential force • New technologies create new markets and opportunities.
question
Cultural Environment
answer
• Institutions and other forces affect shape our basic beliefs, values, perceptions, preferences, and behaviors. • Cultural characteristics that affect marketing decision making • Core beliefs ; values • Persistent, passed down through institutions and generations • Secondary beliefs ; values • Cultural swings cause beliefs ; values to change over time
question
Political Environment
answer
Forces that influence and limit various organizations and individuals in a society - Laws, government agencies, and pressure groups • Goals of enacting business legislation: - Protect companies from each other - Protect consumers from unfair business practices - Protect the interests of society against unrestrained business behavior
question
which of the following is a good strategy for marketing during a recession?
answer
Focus on family values
question
According to the five- step model of the marketing process, the first step in marketing is ________. A) understanding the marketplace and customer needs and wants B) engaging customers, building profitable relationships, and creating customer delight C) designing a customer- driven marketing strategy D) constructing an integrated marketing program that delivers superior value E) capturing value from customers to create profits and customer equity
answer
A) understanding the marketplace and customer needs and wants
question
________ is the art and science of choosing target markets and building profitable relationships with them. A) Segmentation B) Positioning C) Differentiation D) Marketing management E) Value engineering
answer
D) Marketing management
question
Dividing a market into several sections of customers is known as ________.
answer
market segmentation
question
JetBlue's promise to put "You Above All" by "bringing humanity back to travel" is their ________. A) selling concept B) value proposition C) market offering D) production concept E) segmentation strategy
answer
B) Value proposition
question
A ________ is purposeful, specifying what an organization wants to accomplish in the larger environment.
answer
Mission statement
question
Which of the following best describes a company's business portfolio? A) the target segments of the company's various businesses B) the list of all the marketing activities in which the company invests C) the company's strengths in terms of technology, people, and products D) the collection of businesses and products that make up the company E) the company's products or services in a particular market
answer
D) the collection of businesses and products that make up the company
question
The two dimensions the BCG approach uses to evaluate and manage SBUs are ________. A) market growth rate and relative market share B) relative market share and market penetration C) relative market share and product development D) market growth rate and market development E) market growth rate and market penetration
answer
A) market growth rate and relative market share
question
Which of the following is part of the microenvironment of a firm's marketing environment? A) the cultural forces that exist in a society B) the political state of the country in which the firm exists C) the technological resources available to the company D) the different demographic trends in the market E) the suppliers who work with the company
answer
E) the suppliers who work with the company
question
Demographic, economic, natural, technological, political, and cultural forces form the ________ of an organization. A) microenvironment B) supply chain C) internal environment D) marketing intermediary network E) macroenvironment
answer
E) macroenvironment
question
________ markets consist of individuals and households that buy goods and services for personal use. A) Consumer B) Business C) Retailer D) Government E) Wholesaler
answer
A) Consumer
question
Market
answer
A Market is the set of actual and potential buyers of a product or service -share a particular want or need that can be satified through an exchange relationship
question
Bic believes that saving handwriting will serve short-term customer needs and their long-term welfare. This represents which marketing management orientation? A. Societal Marketing Orientation B. Customer Relationship Orientation C. Sustainable Orientation D. Product Orientation
answer
A) Societal Marketing orientation
question
A growing number of college students have a laptop or tablet with them at all times. Using SWOT analysis, what does this represent for Bic? A. Strength B. Weakness C. Opportunity D. Threat
answer
D. Threat
question
Some customers have continued to purchase Bic pens for many years, and prefer more expensive designs and colors. To which customer relationship group do these customers likely belong? A. Strangers B. True Friends C. Barnacles D. Butterflies
answer
B. true friends
question
Customer Insights
answer
are fresh understandings of customers and the marketplace, derived from marketing information. - used to create more value for customers -difficult to obtain because its not obvious and cusotmers are unsure of their own behavior
question
Marketing Information Systems (MIS)
answer
represent people and procedures for: 1. Assessing information needs 2. Developing needed information 3. Analyzing and using information
question
Internal Data
answer
Consumer and market info obtained from data sources within the company network
question
Marketing Intelligence
answer
Collection and Analysis of publicly available info about consumers, competitors ; developments in the marketplace Actively scan environment
question
Marketing Research
answer
Design, collection, analysis ; reporting of data relevant to a specific marketing situation facing an organization focused studies exploratory research descriptive research causal research
question
Exploratory Research
answer
Gather preliminary info to help define problem and suggest hypotheses.
question
Descriptive Research
answer
Describe things, such as the market potential for a product of the demographics / attitudes of customers who buy it
question
Causal Research
answer
Test hypothesis about cause and effect relationships.
question
Q. In 1985, Coca-Cola should have first undergone ______ research to gather preliminary info and create a hypothesis as to why people were drinking less cola. A. Causal B. Usability C. Exploratory D. Descriptive
answer
C. Exploratory
question
If Coca-Cola wanted to study the impact of changing the taste of Coke on purchase preference, they could have undergone _____ research. A. Causal B. Usability C. Exploratory D. Descriptive
answer
A. causal
question
Primary Data
answer
• Gathering info for the specific purpose at hand.
question
Secondary Data
answer
Collecting info that already exists somewhere; collected prior to purpose sources can include: internal, purchased outside, commercial database, and search engines
question
Observational Research
answer
Gathering primary data by observing relevant people, actions, and situations • Ethnographic research
question
Ethnographic research
answer
Sending trained observers to watch and interact with consumers in their natural environments
question
Many companies are using _____ to gain more speed, scale, and efficiency from its ethnographic research efforts. A. in-house research teams B. mobile apps C. customer surveys D. online focus groups
answer
B. Mobile apps
question
Survey Research
answer
Asking people questions about their knowledge, attitudes, preferences, and buying behavior
question
Experimental Research
answer
Selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses
question
Contact Methods
answer
Mail, telephone, personal, online.
question
Sampling Plan
answer
A Sample is a segment of the population selected to represent the population as a whole.
question
Questionnaires
answer
A research instrument, can be administered in person, by phone, by email, or online. -closed-end ?'s or -open-end ?'s
question
Mechanical Instruments
answer
neuromarketing checkout scanners smart shelves
question
Steps in the Marketing Research Process
answer
-Defining the problem and research objectives -developing the research plan for collecting information -implementing the research plan -- collecting and analyzing the data -Interpreting and reporting the findings
question
Responsibilities of the market researcher:
answer
Interpret findings - Draw conclusions - Report findings to management
question
Responsibilities of marketing managers:
answer
Work closely with researchers to interpret research results - Share responsibility for the research process and resulting decisions
question
Forces Influencing Consumer behavior
answer
Cultural, social, personal, psychological
question
Adoption rate categories
answer
Relative advantage compatibility complexity divisibility communicability
question
Relative advantage
answer
superiority vs/ existing products
question
compatibility
answer
"Fit" with values of potential cusotmers
question
complexity
answer
Difficulty to understand or use
question
divisibility
answer
ability to be tried on a limited basis
question
communicability
answer
results can be observed or described to others
question
Relative Time of Adoption of Innovations
answer
Innovators early adopters early mainstream late mainstream lagging adopters
question
Buyer decision process
answer
high involvement vs. low involvement utilitarian vs. self-expressive
question
Segmentation
answer
Divide the total market into smaller segments
question
Targeting
answer
Select the segment or segments to enter
question
Differentiation
answer
differentiate the market offering to create superior customer value
question
positioning
answer
position the market offering in the minds of target customers.
question
Segmentation Variables
answer
Geographic, Demographic, Psychographic, Behavioral
question
Demographic Segmentation
answer
Dividing a market into segments based on demographic variables Such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation
question
Psychographic Segmentation
answer
Dividing a market into segments based on interests, attitudes, and opinions (IAO) - Social class - Consumer lifestyles - Consumer personality
question
Behavioral Segmentation
answer
Dividing a market into segments based on their knowledge, attitudes, uses or responses about a product
question
Occasion Segmentation
answer
•When get idea to buy •When make their purchase •When use the product
question
Benefit Segmentation
answer
•Segment by different benefits buyers seek from the product
question
User Status
answer
Nonusers •Ex-users •Potential users •First-time users
question
Usage Rate
answer
Light users •Medium users •Heavy users
question
Loyalty Status
answer
Loyal to brand •Loyal to store •Loyal to company
question
Multiple Segmentation Bases
answer
help companies to: - Identify smaller, better-defined target groups - Identify and understand key customer segments - Reach customers more efficiently by tailoring market offerings and messages to customers' specific needs • Help marketers segment people and locations into marketable groups of like-minded consumers.
question
Behavioral Segmentation in Digital Mktg
answer
Contextual: • Targeting based on content of a specific webpage Retargeting: • Targeting based on previous interactions with specific cookies InterestBased • Targeting based on previous browsing activity
question
Requirements for Effective Segmentation
answer
-Measurable: Size & profiles can be measured -Accessible: Segment can be effectively reached -Substantial: Large, profitable enough to serve -Differentiable: Distinguishable segments respond differently -Actionable Programs can be developed in to reach segments:
question
Undifferentiated (mass)marketing
answer
targets broadly, Focuses on needs that are COMMON instead of needs that are different.
question
Differentiated (segmented) marketing
answer
Focuses on several market segments, with a separate offering for each
question
Concentrated (niche) marketing
answer
Focuses on going after a large share of one or a few smaller segments (or niches)
question
Micromarketing (local or individual marketing)
answer
Focuses on tailoring products & marketing programs to individual customers ** most relevant but most expensive
question
Value Proposition
answer
benefits and price vs their competitors
question
More for More Proposition
answer
Provides the most upscale product or service • Charges a higher price to cover the higher costs
question
More for the same
answer
High quality at lower prices can be used to attack a more-for-more positioning
question
More for less
answer
-Best winning position -Very difficult for companies to sustain such best-of-both positioning
question
The same for less
answer
-Gives a good deal -Used by discount stores that offer deep discounts based on superior purchasing power and lower-cost operations
question
Less for much Less
answer
Meeting consumer's lower performance or quality requirements at a much lower price.
