Marketing 3000 exam 1 – Mizzou – Flashcards
Unlock all answers in this set
Unlock answersquestion
Marketing
answer
is the study of exchange
question
requirements of marketing
answer
-2 or more parties -communication
question
Marketing's first task
answer
discovering consumers needs (when new product fails, marketing wasn't practiced)
question
Marketing's second task
answer
satisfying consumer needs -find the right combination of; Product (most important) Price (important-with similar goods) Promotion (if products & price are same) Place (vending machine)**
question
What are the 4 ps
answer
1. Product, 2. Price, 3. Promotion 4. Place
question
Functional definition of marketing
answer
entails the facilitation of exchanges (suggests that there are techniques that may improve the exchange process, helping businesses and customers make more efficient exchanges)
question
communication
answer
is part of all marketing exchanges
question
marketing as business philosophy
answer
Evolved from "self-centered" firm to an empathetic, customer-based one
question
Product orientation
answer
focus on the efficient production of their products with no input from costumers -"if we build it, they will come"
question
Sales orientation
answer
to sell (persuade people to buy) what is made -"just sell the damn product"
question
Marketing orientation
answer
requires that information about the market (potential customers, trends, competitors) is collected prior to making decisions that involve the selling process (what to sell, where to sell, how much to charge, how to promote the product) -"making what is desired or wanted" rather than "selling what we make"
question
marketing orientation is characterized by
answer
marketing orientation is characterized by
question
Relationship marketing concept
answer
the creation and maintenance of long-term relationships with all participants (customers, suppliers, retailers) in the exchange process
question
Strategic planning
answer
the process of developing and maintaining a strategy fit between the organizations goals and capabilities and its changing marketing opportunities
question
1. conducting a situation analysis 2. developing marketing objectives 3. segmentation and selecting target markets 4. determining product position 5. designing a strategic marketing mix
answer
What are the 5 parts of market analysis
question
1. conducting a situation analysis
answer
Environmental analysis- is an ongoing process of identifying external forces, analyzing them, and predicting their potential impact
question
Demographics
answer
referring to the characteristics of a population (E.g., age, ethnicity, income, gender) (change in size or distribution)
question
Economic trends
answer
____________ such as business cycles - periods of prosperous growth or decline (recessions) - affect almost every marketing program
question
Competitive
answer
a substitute product is one from a different product category that can be substituted or used instead of another product
question
Sociocultural
answer
a change in consumer taste
question
Political and legal
answer
environments of a market are reflected in laws that regulate competition or protect consumers
question
Technology
answer
advances, may have developments that have sweeping effects for businesses (innovations such as internet, tablets, smart phones)
question
2. developing marketing objectives
answer
To be effective objectives need to be specific, measurable, and attainable.
question
3. segmentation and selecting target markets
answer
-selecting target markets requires an assessment of potential demand from potential consumer segments -consumer segment must be large enough to generate enough demand to be profitable
question
Market segmentation
answer
the process of dividing the market up into different groups of potential customers who share a common characteristic that differentiates them from other groups
question
4. determining product position
answer
Every product should have something special about it (differential advantage) that makes a particular group of consumers select it over competing alternatives, the positioning of a product
question
positioning
answer
refers to a product's image in relation to competing products -based on the differential advantage or unique selling position
question
-Product -Place -Pricing -Promotion
answer
5. Designating a strategic marketing mix
question
Marketing mix
answer
refers to the blend of product, distribution (place), pricing, and promotion strategies, known as the "four P's" -must be designed for each target market
question
Target market
answer
the intended target of a particular marketing mix
question
Marketing research
answer
the process of defining a marketing problem or opportunity, systematically collecting and analyzing information, and making recommendations based on that analysis
question
Purpose of marketing research
answer
to aid managerial decision making, and it is the function that links the customer and public to the marketer
question
Secondary data
answer
is information that has already been collected
question
secondary data internal sources
answer
such as accounting data, sales reports, or various databases that the company maintains
question
Government data (the census) -Magazines and periodicals (Buying Power Index, The Wall Street Journal) -Or Syndicated data services (Marketing Research Corporation of America)
answer
Secondary Research data includes
question
-Using data already collected is almost always more cost effective -Usually has more credibility because it is often available from multiple sources and because its collection is usually independent of the firm or research interest at hand
answer
When possible use secondary data because
question
Primary data
answer
is information that is collected for a current, specific purpose
question
Primary data research
answer
1. Broad exploratory research which is performed to identify the scope of research issues 2. Descriptive research which determines the magnitude of the issues 3. Experimental research is used to narrow the issues down to a decision
question
-focus group -depth interview -projective technique
answer
Exploritory research includes what three things?
question
Focus group
answer
conduct an open discussion with the group about what they consider when choosing a pizza place (wants to uncover things that might not be an issue at their existing locations)
question
Depth interview
answer
is unstructured, are conducted one-on-one to maximize the depth an individual may be questioned
question
projective technique
answer
is an unstructured, indirect form of questioning that asks respondents to interpret the behavior of others -By answering how others act or think, respondents indirectly project their own motivations, attitudes or feelings into the situation -Useful when discussing situations that might be embarrassing to the respondent
question
Descriptive research
answer
using surveys of students to see how students rate the importance of each issue uncovered in exploratory research
question
variety of surveys (most popular)
answer
-Mall intercept- randomly survey people at a shopping center -Telephone -Internet -And Mail
question
Experimental research
answer
there is a hypothesis used to create a decision rule
question
Observational research
answer
can be personal observation -EX: Fischer Price wants to measure the preference for new toys, they could put children in the room with the toys and record how often/long they played with the toys
question
Sampling
answer
involves selecting representative units (the sample) from a total population
question
population
answer
includes all elements, units, or individuals that are of interest to researchers for a specific study
question
Random sampling
answer
this provides an equal chance for each member of the population to be selected as part of the sample
question
Stratified sampling
answer
in this technique, the population is divided into groups based on a common characteristic, then a random sample is taken from each group
question
Area (geographic) sampling
answer
this is the same as above using geographic areas as the basis for the sample
question
Functional, social, personal, experimental
answer
Describe benefits and costs categories
question
Functional benefit
answer
buy and use it for something EX: learn about marketing- get course credit, Hammer, water filter
question
Social benefit
answer
EX: cell phone, country club membership, social media EX: meet friends, business partners, etc
question
fun experiences EX: have fun, joy of learning EX: football games, tailgating, concert
answer
Example of Experimental Benefit
question
Personal benefit
answer
feeling good about your EX: feeling good about learning or excelling EX: makeup, working out
question
Monetary, temporal, psychological, and Behavioral
answer
Describe each cost
question
Monetary cost
answer
tuition and book fees
question
Temporal cost
answer
time spent in class and studying
question
Psychological cost
answer
stress studying for exams and listening to instructor
question
Behavorial cost
answer
expending energy walking to class or getting sick from lectures
question
What is a big part of analyzing the marketing environment
answer
A big part involves monitoring the external market for better trends. Examples of products that have benefited from these trends are Gyms, and organic/gluten free markets.
question
1. Industry competitiveness 2. Availability of substitutes 3. threat of potential entrants 4. Supplier power 5. buyer power
answer
What are Porter's Five Forces model?
question
1. Industry competitiveness
answer
intensity of current competitors -low intensity= higher profitability -industry has low intensity when few firms are competing (more intensity=less profit) EX: only two commercial aircraft
question
2. Availability of substitutes
answer
customers can choose different product as a substitute -few or no substitutes=higher profitability -EX: fresh veggies -> vitamins**
question
3. Threat of potential entrants
answer
high barriers to entry= higher profitability High barriers to entry exist when... - high capital requirements - large scale to make money - high product differentiation - network externalities (technology) EX: word software, tesla
question
4. Supplier power
answer
fewer suppliers hurt profitability because they can charge higher EX: tires Lower bargaining power when... -high number -low information
question
5. Buyer power
answer
information effects this lower buyer power EX: medical services (low info)
question
sustainable competitive advantage
answer
an advantage vs. competition that can be maintained consistently over time EX: McDonalds-operations, service efficiency with variety of items
question
1. Market penetration- promotion, lower prices - existing products and existing markets 2. Market development- same product, new group of people 3. Product development- same market, new product 4. Diversification- new market, new product
answer
Intensive Growth Strategies (Ansoff's product/market expansion grid)
question
market penetration
answer
What type of growth strategy is it when in one particular market firm
question
-syndicated research services -marketing information systems -marketing intelligence systems -non-recurring research projects
answer
Marketing research includes
question
syndicated research services
answer
collecting data from consumers from some other company
question
marketing information systems
answer
consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers -own data collecting sells people (weekly reports, recurring) (can be automatic- Mcdonalds)
question
marketing intelligence systems
answer
-or decision support systems
question
non-recurring research projects
answer
e.g. study of consumers perceptions toward hospital strategic alliance (not something you do every year) -study pregnant people to switch hospitals- mothers didn't want to move to other hospital
question
1. defining the problem and research objectives 2. developing the research plan 3. collect the information 4. analyze the information 5. present the findings
answer
What are the 5 steps of the Marketing research process?
question
Good marketing research
answer
1. is scientific (objective) 2. is creative (# of lights on in hotel) 3. uses multiple methods (more accurate) 4. realizes the interdependence of models and data 5. acknowledges the cost and value of info 6.maintains "healthy" skepticism 7. is ethical (Important-don't deceive the participants) not ethical- call during dinner
question
market share= (individual product sales)/(total industry sales)
answer
% of 1 company's or brand has in the total industry sales -add everything (including the one out)
question
Demand forecasting
answer
estimating sales of product during future time period
question
sales forecast
answer
a _______ is based on a specific marketing plan -expressed in dollars or product units -typically covers a 1-yr period
question
estimating future demand
answer
-market factor analysis -survey of buyers' intentions -past sales analysis -composite of sales force opinion -expert opinion -market test method
question
market-factor analysis
answer
demand for a product is assumed to be related to the behavior of certain sales activity
question
survey of buyer intentions
answer
a sample of current or potential customers are asked how much of a particular product they would buy at a given price during a specified future time period
question
past sales and trend analysis***
answer
flat % increase applied to past volume or past volume average -economically stable -trend analysis related to progression analysis, angle is used to predict future sales
question
sales- force composite
answer
a bottom-up method consisting of collecting estimates of sales for the future period from all salespeople
question
executive judgment
answer
obtaining opinions regarding future sales volume from one or more executives
question
test marketing
answer
a firm markets its product in a limited geographic area, measures sales, and then projects the company's sales over a larger area (goes to a city to try out new product)
