question

Satisfaction

answer

the difference between the expectations for a product and the experience it actually delivers

question

types of loyalty

answer

-companies should focus on building consumer loyalty -Earning loyalty decreases market costs and increases consumer tolerance for price changes. 1. Cognitive: the consumer objectively chooses the product with the best qualities. 2. Affective: the consumer chooses the product that he/she likes the best 3. Conative: the consumer intends to be loyal to the brand 4. Action: The consumer will overcome obstacles such as higher prices or locational inconveniences in order to by loyal to the brand

question

relationship marketing

answer

-Loyalty is achieved by building a relationship with consumers, which is known as relationship marketing. Relationship marketing can include: 1. Customer Relationship Management 2. Life Time Value 3. Integrated Marketing

question

customer relationship management

answer

Companies use CRM software to manage all interactions with consumers

question

life time value

answer

Companies consider the total amount of money a consumer will spend throughout their relationship with the company

question

integrated marketing communication

answer

Companies implement a consistent brand image or message across multiple communication channels or touch points.

question

anticipated regret

answer

where consumers have doubts about the product they are choosing because so many other options are available.

question

services marketing

answer

-Services generate much greater revenue for a company than selling products -for example, if a consumer buys a computer, he/she will spend five times more on services like technical support, network connection, administration, etc than the product itself -in order to have a successful marketing strategy, companies must determine what exact services they will provide and what attributes will best attract consumers.

question

brand image

answer

how the company is viewed in the eyes of the consumer

question

heuristics

answer

Rules consumers apply when making decisions in intangible situations -Consumers will often use signals such as a service's price or appearance to determine their opinion of it -For example, a magazine ad for All State Insurance showed a man in a suit wiping his expensive car with a handkerchief. These signals portray AllState as a dependable business that can be trusted to take good care of a valuable car. -Consumers also make decisions based on the past experiences of others, communicated through word of outh or consumer referral sources like YELP.

question

Inseperability

answer

-The idea that a service cannot be detached from the person providing it -A haircut and a trip to Disney world are both examples of inseperable services -Front line service employees are inseperable from the service -They are the service, the brand, the organization and the marketers. -Customers can also be the employees in situations like self service resteraunts, health care, and education. -Because of this inseperability, companies must train and indoctrinate employees to provide the expected service.

question

heterogeneity

answer

-The idea that a service is not uniform and changes between experiences -However, companies like Mcdonalds and Holiday Inn have removed this heterogeneity by standardizing their operating precedures, prices, appearances, etc. -As a result, they have removed the risk factor and consumers know exactly what they are getting when they purchase the service -Resteraunts like chipotle standardize the food they offer, but then give control back to the consumer to choose his/her own meal -Customizing a physical good while standardizing a service is the key to a successful franchise

question

process

answer

-one should also consider the process, physical evidence and people. -it is important to standardize the process of a service, especially the touch point.

question

touch points

answer

-"touch points" are parts of a process where consumers experience satisfaction or dissatisfaction. -These points are almost always people-oriented

question

physical evidence

answer

-Business must ensure that the physical evidence of their service conveys the proper message to consumers -These tangible cues are also known as a business "servicescape" These cues can include the exterior design of a building, the parking situation, the signage, or the employee uniforms. -Blue Frog Lounge example: Simply by observing the resteraunt's interior and place settings one can deduce that it is trendy fine dining and is built for intimate conversation -Because services are intangible, businessnes like hotels can reduce consumer uncertainty

question

people

answer

People have the greatest effect on customer experiences, which is where internal marketing becomes important

question

internal marketing

answer

-enables employees to deliver an expected service to consumers -for services, marketing function drives marketing -Service oriented businesses support customer service through their policies, procedures, reward systems and actions -Employees must be properly incentivsed and empowered -Giving employees properly aligned incentives increases their satisfaction and productivity, which indirectly improves customer satisfaction

question

service culture

answer

-It is important to create a service culture, which places customers as the top priority - similar to internal marketing - Nordstrom's example: consumer tried to return a set of snow tires at Nordstrom's, a shoe store. Instead of refusing him, the front line employee reimbursed the customer. The employee had the power to solve the problem and kept the consumer happy

question

work adjustment

answer

measures an employees "fit" for a job and includes two main charachteristics: satisfaction and satfaction and satisfactoriness

question

satisfaction

answer

the extent to which an employees needs, interests and values match his/her reinforcements or rewards. It is essentially getting the things one most values out of one's job, such as money, achievement or connections

question

satisfactoriness

answer

the extent to which an employees abilities match the ability requirements. It can also be called one's performance, or the extent to which one experiences "flow" in a job

question

flow

answer

a psychological state experiences as a loss of time. It occurs when one is performing at his/her top level

question

Market Segmentation

answer

dividing a market based on certain characteristics

question

mass marketing

answer

the same product is delivered to all consumers -Ex: Regular Coke

question

niche marketing

answer

-In recent years, there has been a shift from mass marketing to niche marketing -Traditionally, businesses have chosen to mass market products that would appeal to most people - However, businesses are now trying to serve the long tail, or greater amount of consumer segments

question

long tail

answer

- niche marketing - If businesses can successfully market to this long tail, they can generate more revenue -Example: Blockbuster used a mass marketing strategy, stocking only the most popular movies.however, Netflix uses niche marketing and stocks fewer copies of a variety of films

question

targeting

answer

-choosing a segment towards which to market -Businesses have 3 different types of segments from which to choose:

question

georgraphic segmentation

answer

-Consumers have different preferences based on where they lived: -Ex: Beer, fast food and grocery store preferences vary depending on the region of the US

question

demographic segmentation

answer

Consumer preferences vary according to characteristics like: -Gender: Products are often targeted towards either men or women -Age: Different generations -seniors, baby boomers, generations all have differet products and needs

question

psychographic segmentation

answer

Preferences vary based on consumers values, opinions or interests. These are predicted by: -Socio Economic status - this is a weighted average btwn occupation, income, wealth and edu -Personality - Behavior - If business can predict a consumer's actions, they can create more personalized marketing strategies.

question

CANOE

answer

The 5 most important traits in psychogrphic segmentation are -conscieniusness -agreeableness - neuroticism -openness to experience - extraversion

question

positioning

answer

-Positioning is establishing an identity using the 7 P's of marketing -establishing the identity of a product in a consumer's mind. -The strategic goal is to create a clear and desirable place in the market relative to competition

question

market positon

answer

-A products market position is the way that a consumer defines that product based on its important attributes -Ex: A Volvo has a market position as a safe car based on its design and its extensive protective featrues -Once a product's market position is defined, businesses can then choose an effective marketing strategy

question

competitive differentiation

answer

-Businesses must identify the possible competitive advantages of their product -Selecting the right competitive advantage then creates a unique selling proposing for the product

question

unique selling proposition

answer

-Selecting the right competitive advantage then creates a unique selling proposing for the product - Perceptual mapping can help identify the different market positions of competitive products

question

core product

answer

-the true use, benefit, or service a consumer is buying -Ex: when a consumer buys an airplane ticket, the core product is transportation

question

facilitating product

answer

-is a product that is necessary to deliver the core produjct, such as people, packaging, process, physical evidence, design -Ex: a drill bit is a facilitating product because it helps create the hole, which is the core product

question

supporting product

answer

-helps add value to a core product -Ex: delivery systems, product warranties or loyalty programs

question

augmented product

answer

-a non-physical aspect that affects a consumer's perception or opinion of the core product -Ex: Customer-Customer interaction, accessibility (providing knowledge about the business such as hours of operation), atmosphere (visiual), self service technologies and service delivery systems -Augmented products can also have significant effect on a consumer's decision to purchase a product -For example, bakeries will pump "baked cookie" scents into the ventilation because this olfactory cue inspire consumers to purchase more cookies. -As another example, one study found that consumers unknowingly judged the power of a vacuum cleaner based on its loudness

question

produce life cycle

answer

1. Introduction: the brand new product experiences small, yet increasing sales 2. Growth: The product experiences an exponential growth in sales 3. Maturity: the established product reaches its peak sales 4. Decline: the products sales start to decrease

question

product pioneer

answer

the first business to introduct a new product, known as a product pioneer, is at a disadvantage because they must spend time and money educating consumers about the product and generating interest in it. Once a product is established, other companies can easily copy it

question

network effect

answer

occurs when consumers only want to purchase a product if many other people already have it o EX: no consumer would want to purchase the first fax machine bc there wouldn't be anyone else to connect with.

question

service quality

answer

Consumers judge service quality based on the quality of the service that was provided compared to the quality of service that they expected - This idea can be called the serv-qual or the serv-perf (service performance model) - There are 5 dimensions of service quality: o Reliability o Assurance o Tangibility o Empathy o Responsiveness

question

brand

answer

a name, term, sign, symbol or design that intends to identify a product/service. It differentiates one seller's product/service from those of competitors -Morton's salt has created a brand that consumers recognize and respond to, even though they are simply selling a plain, tangible product -Brand names aim to be easy to say, distinctive, translatable, protectable and denotive of something specific.

question

lifestyle branding

answer

embodies the opions, interests, experiences or identity of a group of people -Example: the clothing brand Patagonia appeals to outdoorsy, environmentally friendly and active consumers

question

co branding

answer

-involves placing two different brands onto the same product. - Ex: Better Crocker brownie mix co branded with Hershes to include their chocolate chips in the recipe

question

multi branding

answer

-is when companies set up different businesses in the same geographical location -Ex: Taco bell and KFC can often be found side by side in the same building

question

licensing

answer

-Buinesses can also license brands by allowing other companies to pay to use their name/symbol - Ex: After failing as a magazine business, playboy decided to license its brand to other companies because it was so valuable and recognizable

question

line extension

answer

-when an existing brand creates another product in an already existing product category -EX: Nabisco regularly indroduces new flavors of wheat thins

question

brand extension

answer

-is when an existing brand introduces a product into a new market - EX: Disney expanded into the interior design market with its new line of paint products

question

flanker brand

answer

-when a company introduces a new brand into the same market as their original product -EX: Tide laundry detergent created the detergent brand cheer as a cheaper option

question

cannibalization

answer

companies must be aware of the dangers of cannibalization, which occurs when consumers want to purchase the new cheaper brand and it kills the sales of the original product

question

massclusivity

answer

occurs when you make a product available to too many consumers (price, stocking merchandise in department stores) and brand image is downgraded

question

bundling

answer

when a company includes an extra product or service for the price of the orginal such as a 2 for 1 deal ** bundling allows businesses to discount their product or service without negatively impacting the brand name.

question

The Four Key Marketing Functions

answer

• Acquisition • Satisfaction • Retention • Advocacy

question

The Marketing Process

answer

1. Understand the market place and what the customer needs and wants 2. Design a customer-driven marketing strategy 3. Construct an integrated marketing program that delivers superior value 4. Build profitable relationships and create customer delight 5. Capture value from customers to create profits and customer equity

question

human need

answer

A human need is a state of felt deprivation. These needs were not invented by marketers but are part of human nature

question

human want

answer

the form human needs take as they are shaped by culture and individual personality -Wants are how ppl communicate needs - Wants are described in terms of objectives

question

human demand

answer

When backed by buying power, wants become demands

question

Customer value

answer

difference between benefits from owning a product, and the costs of obtaining the product.

question

Customer expectations

answer

based on: - past buying experiences -the opinions of friends - market information.

question

Marketing Management:

answer

The art and science of choosing target markets and building profitable relationships with them.

question

Two questions to ask: Winning marketing strategy:

answer

-what customers will we serve/ what is our target market? How can we serve these customers best?/ Whats our value proposition?

question

Marketing Information System

answer

A marketing information system(MIS) consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. - interacts with managers to assess their information needs -it develops needed information from internal company records, marketing intelligence activities, and the marketing research process - analysts process information to make it more useful - the MIS distributes information to managers in the right form, at the right time to help in marketing planning, implementation, and control

question

exploratory research

answer

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

question

descriptive research

answer

to describe size ; composition of the market

question

causal research

answer

to test hypotheses about cause-and-effect relationships

question

Three basic research approaches are:

answer

Observations: -observe relevant ppl, actions and situations. -Yields info ppl are usually unwilling to provide -Ethnographic research - observers who watch and interact with consumers -Feelings, beliefs and attitudes that motivate buying behavior cannot be observed.Surveys : -best suited to gather descriptive info and can be structured or unstructured. -Formal lists of questions asked of all respondents in the same way -Advantage is flexibilityExperiments: -capture cause and effect relationships by eliminating competing explanations of the observed findings -The most scientifically valid research -If the experiement is well designed and executed, managers can have confidence in conclusions.

question

most common survey instrument

answer

questionairre: -Bc there are many ways to ask questions, the quesitonaire is very flexible -Questionaires should be developed and tested carefully before being used on a large scale

question

Vision Statement

answer

outlines what the organization wants to be. It concentrates on the future. It is a source of inspiration. It provides clear decision- making criteria. -A place for creating and bringing big ideas to life -To help people and businesses throughout the world realize their full potential

question

Key elements of a Vision

answer

-Desired future state -A pithy statement describing what we aspire to do -More broad and future oriented - the goal on the horizon

question

6 characteristics of highly effective vision statements

answer

- CLEAR to both internal and external customers. - CONCISE brief and to the point. - CREDIBLE that we can do it. - ASPIRATIONAL makes us all "stretch". - ACHIEVABLE in the foreseeable future. - ALIGNED with our stakeholders.

question

Mission statement

answer

tells you the fundamental purpose of the organization. It concentrates on the present. It defines the customer and the critical processes. It informs you of the desired level of performance.

question

THE 6 CHARACTERISTICS OF A HIGHLY EFFECTIVE MISSION STATEMENTS (same as vision)

answer

• CLEAR to both internal and external customers. • CONCISE brief and to the point. • CREDIBLE that we can do it. • ASPIRATIONAL makes us all "stretch". • ACHIEVABLE in the foreseeable future. • ALIGNED with our stakeholders.

question

Buyer decision process

answer

need recognition --> information search --> evaluation of alternatives --> purchase decision --> post purchase behavior

question

Market Scanning

answer

• POLITICAL • ECONOMIC • SOCIAL • TECHNOLOGICAL • LEGAL • ENVIRONMENTAL

question

Nextsegmentation:

answer

The long tail -marketplace is now composed of many narrow segments rather than large industries -American express

question

Emancipation: Rulemakers

answer

-customers now more in charge, able to tell organizations what they want and when they want it through social media -Five easy pieces

question

Hypercompetition:

answer

-way to put competitors out of business -Ultimate measure -Coke v pepsi

question

Globalization:

answer

-Beyond all borders -global expansion and interconnection of business -Earl of sandwich

question

Consolidation:

answer

-Megabrand portfolios -Marriott (resorts, family, corporate)

question

Techonologization:

answer

-M-commerce -Starwood, apply pay, iphone

question

Disruption:

answer

-New business models -"system disruption"... takes over existing business styles ? sharing industry -Air BnB

question

Standardization:

answer

-Brand standards rule -McDonald's... food is exactly same whenever you are

question

• Commoditization:

answer

e-intermediation -look-a-like concepts, OTAs -E.g. Brands of water, Perdue chicken (make it look yellow), Morton Salt doesn't clump

question

Corporatization:

answer

-Emasculation of operators -shift from individual unit owner to central company -E.g. Honest Tea being bought by Coke -Room 77

question

Discussion question: How does modern marketing (as discussed in last lecture) affect consumers?

answer

-It benefits them by increasing product/brand awareness and creating a "pull" system, where greater consumer demand is met with increased production -It disadvantages consumers by creating extraneous wants. It also generated anticipated regret, where consumers have doubts about the product they are choosing because so many other options are available. -It can be objectively better by creating more options for the consumer, but subjectively worse by overwhelming them with choices and advertising

question

Discussion question: A hotel with empty rooms has multiple options for setting a last minute price:

answer

• The hotel could sell the room for full price which does not allow them to sell as many rooms but protects their brand image • The hotel could sell the room for half price, which protects the brand but still allows them to generate some profit off of the empty rooms • The hotel could sell the room for its marginal cost (the cost to clean it), which prevents dead weight loss and possibliy encourages guests to spend money in other areas of the hotel • The hotel could give away the room for free which generates loss of sale, but may increase the life time value of the consumers. - Loyal consumers will be more likely to come back to the hotel and spend their money in other areas of the hotel

question

Discussion Question: What is an example of a pure service?

answer

-Business consulting embodies the 4 characteristics of a service - perishability, intangibility, inseparabilties and heterogeneity. - The is no tangible result from consulting, the service is inseperable from the person delivering it and every experience is unique

question

Discussion question: In a perceptual map of beer brands, which is the best option?

answer

- The Budweiser black crown beer is average in - Antoher idea is that the extreme coreners of the map will stand out to consumers

question

DQ: Marriott have effective positioning strategy by using numerous brand names

answer

- Creates many options for consumers to fit diverse needs. Brand is still recognizable.

question

DQ: when coke's formula was leaded to the public, was the core product comprimied?

answer

- No, bc cokes core product is more than just a recipe. Consumers are loyal to the brand and have positive memories associated with drinking coke.

question

Discussion question: are hotel amenities supporting or facilitating products?

answer

- Facilitating product is nesassary to deliver the core product whereas a supporting product just adds extra value. Whether or not hotel amenties are supporting or facilitating depends on the type of consumers that the hotel is targeting and what core product is being sold - For example, in a cheap hostel, these amenities would just be additional features and can be considered supporting products. However, in an upscale hotel, consumers expect the amentities and they are physical evidence of a luxary experience.

question

Discussion question: Which dimension is influenced the most by other customers?

answer

Tangibility is influenced the most by other customers because customers can see how satisfied others are with the service and base their own opinions off of these observations.

question

Discussion question: Kellogg's used a laser to etch its brand name into each corn flake. Will this make the product take better?

answer

Obejctively, the laser etching should not affect the tase tat all. However, for consumers who are brand conscious, seeing the brand name as they eat the product would serve as a psychological cue of quality which makes them think the cereal tastes better.

question

Customer equity

answer

The discounted lifetime values of all the company's current and potential customers

question

Customer expectations

answer

Expectations based on past buying experiences, the options of friends, and market information

question

Customer relationship management

answer

It involves managing detailed information about individual customers and carefully managing customer "touch points" in order to maximize customer loyalty

question

Customer touch point

answer

Any occasion on which a customer encounters the brand and product—from actual experience to personal or mass communications to casual observation

question

Customer value

answer

The difference between the benefits that the customer fans from owning and/or using a product and the costs of obtaining the product

question

Demands

answer

Human wants that are acted by buying power

question

Exchange

answer

The act of obtaining a desired object from someone by offering something in return

question

Hospitality industry

answer

Made up of those businesses that offer one or more of the following: accommodation, prepared food and beverage service, and/or entertainment

question

Human need

answer

A state of felt deprivation in a person

question

Lifetime value (LTV)

answer

The lifetime value of a customer is the stream of profits a customer will create over the life of his or her relationship to a business

question

Market

answer

A set of actual and potential buyers of a product

question

Marketing

answer

The art and science of finding, retaining, and growing profitable customers

question

Marketing concept

answer

The marketing management philosophy that holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering desired satisfactions more effectively and efficiently that competitors

question

Marketing management

answer

The art and science of choosing target markets and building profitable relationships with them

question

Marketing manager

answer

A person who is involved in marketing analysis, planning, implementation, and control activities

question

Marketing mix

answer

Elements include product, price, promotion, and distribution. Sometimes distribution is called place and the marketing situation facing a company

question

Product concept

answer

The idea that consumers will favor products that offer the most quality, performance, and features, and therefore the organization should devote its energy to making continuous product improvements

question

Production concept

answer

Holds that customers will favor products that are available and highly affordable, and therefore management should focus on production and distribution efficiency

question

Purpose of a business

answer

To create and maintain satisfied, profitable customers

question

Relationship marketing

answer

Involves creating, maintaining, and enhancing strong relationships with customer and other stakeholders

question

Selling concept

answer

The idea that consumers will not buy enough of an organization's products unless the organization undertakes a large selliing and promotion effort

question

Societal marketing concept

answer

The idea that an organization should determine the needs, wants, and interests of target markets and deliver the desired satisfactions more effectively and efficiently that competitors in a way that maintains or improves the consumer's and society's well-being

question

Transaction

answer

Consists of a trade of values between two parties; marketing's unit of measurement

question

Value proposition

answer

The full positioning of a brand—the full mix of benefits upon which it is positions

question

Inseparability

answer

A major characteristic of services - they are produced and consumed at the same time and cannot be separated from their providers

question

Intangibility

answer

A major characteristic of services; they cannot be seen, tasted, felt, heard, or smelled before they are bought

question

Interactive marketing

answer

Marketing by a service firm that recognizes perceived service quality depends heavily on the quality of the buyer-seller interaction

question

Internal Marketing

answer

Marketing by a service firm to train effectively and motivate its customer-contact employees and all the supporting service people to work as a team to provide customer satisfaction

question

Organization image

answer

The way a person or group views an organization

question

Perishability

answer

A major characteristic of services; they cannot be stored for later use

question

Physical evidence

answer

Tangible clues such as promotional material, employees of the firm, and the physical environment of the firm. ?Physical evidence is used by a service firm to make its product more tangible to customers

question

Revenue management

answer

A pricing method using price as a means of matching demand with capacity

question

Service culture

answer

A system of values and beliefs in an organization that reinforced the idea that providing the customer with quality service is the principal concern of the business

question

Service profit chain

answer

A model that shows the relationships between employee satisfaction, customer satisfaction, customer retention, value creation, and profitability

question

Variability

answer

A major characteristic of services; their quality may vary greatly, depending on who provides them and when, where, and how they are provided

question

Ansoff product-market expansion grid

answer

A matrix developed by cell, plotting new products and existing products with new products and existing products. The grid provides strategic insights into growth opportunities

question

Backward integration

answer

A growth strategy by which companies acquire businesses supplying them with products or services (e.g., a restaurant chain purchasing a bakery)

question

Concentric diversification strategy

answer

A growth strategy whereby a company seeks new products that have technological or marketing synergies with existing product lines

question

Conglomerate diversification strategy

answer

A product growth strategy in which a company seeks new businesses that have no relationship to the company's current product line or markets

question

Corporate mission statement

answer

A guide to provide all the publics of a company with a shared sense of purpose, direction, and opportunity, allowing all to work independently, yet collectively, toward the organization's goals

question

Forward integration

answer

A growth strategy by which companies acquire businesses that are closer to the ultimate consumer, such as a hotel acquiring a chain of travel agents

question

Horizontal diversification strategy

answer

A product growth strategy whereby a company looks for new products that could appeal to current customers, which are technologically unrelated to its current line

question

Horizontal integration

answer

A growth strategy by which companies acquire competitors

question

Macroenvironmetal forces

answer

Demographic, economic, technological, political, legal, social, and cultural factors

question

Market development strategy

answer

Finding and developing new markets for your current products

question

Market segmentation

answer

The process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior and who might require separate products or marketing programs

question

Marketing opportunity

answer

An area of need in which a company can perform profitably

question

Marketing strategy

answer

The marketing logic by which the company hopes to create this customer value and achieve these profitable relationships

question

Microenvironmental forces

answer

Customers, competitors, distribution channels, and suppliers

question

Product development

answer

Offering modified or new products to current markets

question

Return on marketing investment ( marketing ROI)

answer

The net return from a marketing investment divided by the costs of the marketing investment. It measures the profits generated by investments in marketing activities

question

Strategic alliances

answer

Relationships between independent parties that agree to cooperate but still retain separate identities

question

Strategic business units (SBUs)

answer

A single business or collection of related businesses that can be planned separately from the rest of the company

question

Strategic planning

answer

The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing market opportunities

question

SWOT analysis

answer

Evaluates the company's overall strengths (S), weaknesses (W), opportunities (O), and threats (T)

question

Baby boomers

answer

The 78 million people born between 1946 and 1964

question

Demography

answer

the study of human populations in terms of size, density, location, age, sex, race, occupation and other statistics

question

Disintermediation

answer

The elimination of intermediaries

question

Echo boomers

answer

Born between 1977 and 1994, these children of the baby boomers now number 72 million, dwarfing the gen Xers and almost equal in size to the baby boomer segment. Also known as generation Y

question

Economic environment

answer

The economic environment consists of factors that affect consumer purchasing power and spending patterns. Markets require both power and people. Purchasing power depends on current income, price, saving, and credit; marketing must be aware of major economic trends in income and changing consumer spending patterns.

question

Environmental management perspective

answer

A management perspective in which a firm takes aggressive actions to affect the publics and forces in its marketing environment rather than simply watching and reacting to it.

question

Envrionemtnal sustainability

answer

A management approach that involves strategies that both sustain the environment and produce for the company

question

Financial intermediaries

answer

Banks, credict companies, insurance companies, and other businesses that help finance transactions or insure against the risks associated with the buying and selling of good

question

Generation X

answer

A generation of 45 million people born between 1965 and 1976; named generation x because they lie in the shadow of the boomers and lack obvious disgusting charachteristics; other names include baby busters, shadow generation

question

Macro environment

answer

The larger societal forces that affect the whole micro enbironemnt; competitive, demographic, economic, natural, technological, political, and cultural forces

question

Marketing environment

answer

The actors and forces outside marketing that affect marketing managements ability to develop and maintain successful transactions with its target customers

question

Marketing intermediaries

answer

Firms that help the company to promote, sell and distribute its goods to final buyers; they include the middle men, physical distribution firms, marketing service agencies and financial intermediaries

question

Marketing service agencies

answer

Marketing research firms, media firms, marketing consulting firms and other service providers that help a company to target and promote its prodcuts to the right markets

question

Micro environment

answer

The forces close to a company that affect its ability to sere its customers; the company, market chancel firms, customer markets, competitors, and the public

question

Millenials (also called generation Y)

answer

Born between 1977 and 2000, these children of the baby boomers number83 million, dwarfing the gen Xers and larger even than the baby boomer segment. This group includes several age cohorts; tweens, teens, and young adults.

question

Political environment

answer

Laws, Gov. agencies and pressure groups that influence and limit the activities of various organizations and individuals on society.

question

Public

answer

Any group that has an actual or potential interest in or impact on an organizations ability to achieve its objectives

question

Suppliers

answer

Firms and individuals that provide the resources needed by a company and its competitors to produce goods and services

question

Casual Research

answer

Marketing research to test hypotheses about cause-and-effect relationships

question

Data warehouses

answer

Collect data from a variety of sources and store it in an accessible location

question

Descriptive research

answer

Marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers

question

Ethnographic research

answer

Trained observers interact with and/or observe consumers in their natural habitat

question

Experimental research

answer

The gathering of primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses

question

Exploratory research

answer

Marketing research to gather preliminary information that will help to better define problems and suggest hypotheses

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Internal data

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Internal data consist of electronic databases and non electronic information and records of consumer and market information obtained from within the company

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Marketing dashboards

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Are like the instrument panel in a car or plane, visually displaying real-time indicators to ensure proper functioning

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Marketing Information System (MIS)

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A structure of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers The MIS begins and ends with marketing managers, but managers throughout the organization should be involved in the MIS. First, the MIS interacts with managers to assess their information needs Next, it develops needed information from internal company records, marketing intelligence activities, and the marketing research process Information analysts process information to make it more useful Finally, the MIS distributes information to managers in the right form and at the right time to help in marketing planning, implementation, and control

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Marketing intelligence

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Everyday information about developments in the marketing environment that help managers prepare and adjust marketing plans

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Marketing research

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The systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing a company

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Mystery shoppers

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Hospitality companies often hire disguised or mystery shoppers to pose as customers and report back on their experience

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Observational research

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The gathering of primary data by observing relevant people, actions, and situations

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Primary data

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Information collected for the specific purpose at hand

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Sample

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(1) A segment of a population selected for marketing research to represent the population as a whole (2) Offer of a trial amount of a product to consumers

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Secondary data

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Information that already exists somewhere, having been collected for another purpose

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Survey research

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The gathering of primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior

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Aspirational Group

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A group to which a person wishes to belong

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Attitude

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A person's enduring favorable or unfavorable cognitive evaluations, emotional feelings and action tendencies toward some object or idea.

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Belief

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A descriptive thought that a person holds about something

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Brand image

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The set of beliefs consumers hold about a particular brand

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Buzz marketing

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Cultivating opinion leaders and getting them to spread information about a product to others in their community

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Cognitive dissonance

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Buyer discomfort caused by post purchase conflict

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Culture

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The set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions

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Family life cycle

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The stages through which families might pass as they mature

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Group

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Two or more people who interact to accomplish individual or mutual goals

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Learning

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Changes in a person's behavior arising from experience

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Lifestyle

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A person's pattern of living as expressed in his activities, interests, and opinions

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Membership groups

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Groups that have a direct influence on a persons behavior and to which a person belongs

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Motive

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A need that is sufficiently pressing to direct a person to seek satisfaction of that need

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Online social networks

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Online social communities - blogs, social networking, websites where people socialize or exchange information and opinions

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Opinion leaders

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People within a reference group who, because of special skills, knowledge.

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Personality

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A person's distinguishing psychological characteristics that lead to relatively consistent and lasting responses to his environment

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Reference groups

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Groups that have a direct (face to face) or indirect influence on a persons attitude and behavior

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Role

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The activities that a person is expected to perform according to the persons around him/her

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Self concept

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Self image, the complex mental pictures people have of themselves

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Social classes

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Relatively permanent and order divisions in a society whose members share similar values, interests and behaviors

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Subculture

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

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Subculture

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

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Subculture

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

Flashcards and Answers – Marketing Prelim 1

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