Marketing Quiz 1 – Flashcards
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Marketing focuses on what?
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Discovering and satisfying consumer needs
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Widorski, a 3M inventor, along with a team of 4 college students did what?
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Observed and questioned dozens of students about how they used their text books, took notes, wrote term papers and reviewed for exams.
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When was Facebook founded?
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In 2004 by 19 year old Mark Zuckerberg
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Facebook was an Internet start-up that had how many users a few after its launch?
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Half a billion users
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More than half of all new business fail within how many years of their launch?
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Within 5 years
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Who represents marketing professionals?
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The American Marketing Association
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What is Marketing?
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The activity for creating, communicating, delivering, and exchanging offers that benefit its customers, the organization, its stakeholders, and society at large.
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What are the 2 concepts of the marketing concept?
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1. To discover the needs and wants of prospective customers 2. To Satisfy them
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The trade of things of value between buyer and seller so that each is better off after that trade is called what?
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Exchange
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Who are the prospective customers being marketed to?
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Individuals buying for themselves and their households, Organizations buying for their own (such as manufacturers), or for Resale such as wholesalers and retailers.
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What is the mission of the organization itself?
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To determine what business it is in and what goals it seeks
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Within the organization, management is responsible for what?
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Establishing the goals of the organization
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The marketing department does what?
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Works closely with a network of other departments and employees to help provide the customer-satisfying products required for the organization to survive and prosper. The department is also responsible for facilitating relationships, partnerships, and alliances with the organization's customers, its shareholders, its suppliers, and other organizations.
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What environmental forces shape's an organization's marketing activities?
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Social, economic, technological, competitive and regulatory considerations.
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What 4 factors are needed for marketing to occur?
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1. Two or more parties with unsatisfied needs 2. A desire and ability on their part to be satisfied 3. A way for the parties to communicate 4. Something to exhange
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If I wanted to read up on a celeb gossip magazine from a bookstore and needed to get that need met, who would be the 2 parties with the unsatisfied needs?
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Me, desiring the celeb gossip info and the bookstore owner who is needing someone to buy a copy of the magazine.
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Obviously the bookstore owner and I have the desired need, but how would I and the bookstore owner satisfy this need?
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I have the money to guy buy the magazine and the time to get to the bookstore. The bookstore owner has not only the desire to sell the item but also the ability to do so since it is stocked on the shelves.
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How could the parties communicate to turn this unmet need now into a marketing transaction of buying the magazine?
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By knowing the product exists and where to buy the product. Example would be receiving a free copy of the magazine in the mail or seeing the magazine on display in the bookstore.
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What is the exchange when I buy the magazine from the bookstore?
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I exchange my money for the bookstore's magazine. The bookstore owner and I have both given up something and gained something, but we are both better off because we have each satisfied our unmet needs.
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New-product experts generally estimate what percent of more than 40,000 new consumable products introduced in the US annually don't succeed in the long run?
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94%
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What are two suggestions for new-product launches?
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1. Focus on what the customer benefit is 2. Learn from the past
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The term "showstoppers" means what?
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Factors that might doom the product
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Product 1: Dr. Care Toothpaste
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An aerosol container toothpaste with a vanilla-mint flavor. The product doomed after parents were not enthusiastic about the bathroom wall paintings sprayed with toothpaste.
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Product 2: Hot Pockets Pizza Snacks
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Bite-sized microwavable sandwiches in four flavors. The product, when frozen, had excessive ice crystals forming on the product due to variations in freezer temperatures making it not taste as good if the sandwich is thawed and refrozen before being microwaved.
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Product 3: Terrafugia Transition
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The world's first combination personal airplane and car. Can land at most of the 5,200 general aviation airports in the US. As a car, it can fold its wings, making it drivable on a roadway. Comes with a safety parachute and has a 23-gallon tank that can be filled at most gas stations. The showstopper was the whopping price of $250,000 (you can reserve one for $10,000) and the potential buyer's concern hat a vehicle bumped in a fender bender on a road might now be something to fly around in.
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Product 4: Pepsi Max
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The first diet cola for men, 25 and older who haven't liked the taste of other diet colas. Pepsi Max has ginseng and extra caffeine to differentiate it from Diet Pepsi, Coke Zero and energy drinks. The potential showstopper is women would not consume a soft drink targeted specifically toward men.
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What is the continuing challenges for firms around the world when it comes to marketing?
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Trying to meet the changing needs of consumers
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Should marketing try to satisfy consumer needs or consumer wants?
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Marketing tries to do both
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When a person feels deprived of basic necessities, such as food, clothing and shelter it is called what?
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A need
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What is it called when a need is shaped by a person's knowledge, culture, and personality.
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A want
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Effective marketing can clearly shape a person's wants by doing what?
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Creating an awareness of good products at convenient location. Example: do I want to eat a candy bar or apple?
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Why are legal and social issues central to marketing?
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Because marketing tries to influence what we buy. At what point do we want government and society to step in to protect consumers? Most consumers would say they want government to protect us from harmful drugs and unsafe cars but not from candy bars and soft drinks. Psychologists and economists still debate the exact meaning of need and want.
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What is a market?
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These are the potential consumers with both the desire and the ability to buy a specific offering.
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What is the target market?
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When an organization can't satisfy the needs of all customers, so it must focus on one or more subgroups.
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What are the four P's that successfully implement a marketing program that possesses the right combination of the marketing mix?
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1. Product: A good, service or idea to satisfy the consumer's needs 2. Price: What is exchanged for the product 3. Promotion: A means of communication between the seller and buyer 4. Place: A means of getting the product to the consumer
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What is the marketing mix?
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Controllable factors that contain 4 P's - product, price, promotion, place - that can be used by the marketing manager to solve a marketing problem. For example, when a company puts a product on sale, it is changing the price because that is a "controllable" factor.
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What is the customer value proposition?
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A cluster of benefits that an organization promises customers to satisfy their needs. For example: Walmart's customer value proposition is "everyday low prices for a broad range of products that are always in stock"
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What are the environmental (uncontrollable) forces?
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Social (what we want and need), economic (money, jobs, etc), technological (changing technology), competitive (actions that competitors take), and regulatory forces (government restrictions).
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An organization's marketing program connects with its customers by doing what?
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Customer value, customer relationships, and relationship marketing.
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What is customer value?
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The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price. Loyal, satisfied customers are likely to repurchase more over time.
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What are the 3 value strategies that organization's use to deliver outstanding customer value?
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Best price, best product or best service.
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Walmart, Southwest Airlines, Costco use which value strategy?
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Best Price
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Starbucks, Nike, and Johnson & Johnson use which value strategy?
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Best Product
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Marriot, Lands End, Home Depot use which value strategy?
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Best Service
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What is relationship marketing?
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The hallmark of developing and maintaining effective customer relationships which links the organization to its individual customers, employees, suppliers and other partners for their mutual long-term benefit.
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Why is it harder today to develop and sustain relationship marketing?
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Because of technology and the increase of internet purchases which doesn't give the consumer the ability to be face-to-face with anyone to build a relationship with.
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What is a marketing program?
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A plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.
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What is the difference between ultimate customers and organization buyers?
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Ultimate consumers are the people who use the goods and services purchased for the household. Organzational buyers ae those manufactorers, wholesalers, retailers, and government agencies tjat buy goods or services for their own use or for resale.
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What is the difference between a business firm and a nonprofit organization?
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A business firm is a privately owned organization that serves its customers to earn a profit so that it can survive. A nonprofit organization is a nongovernmental organization that serves its customers but does not have product as a goal, instead it strives for operational efficiency and client satisfaction.
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What are examples of a fuctional level in an organization?
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This is level is when a group of specialists from the marketing, finance, manufactoring/operations, accounting, information systems, research & development, and/or human resources departments focus on a specific strategic direction to create value for the organization.
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What is the meaning of an organization's mission?
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A mission is a statement of the organizationals function in society, often identifying customers, markets, products, and technologies, It is often used interchangeably with vision.
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What is the difference between an organization's business and its goals?
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An organization's business describes the clear, broad, underlying industry or market sector of an organizations offering. An organization's goals (or objectives) are statements of an accomplishment of a task to be achieved, often by a specific time. Goals convert an organization's mission and business into long and short term performance targets to measure how well it is doing.
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What is the difference between the marketing dashboard and a marketing metric?
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A marketing dashboard is the visual computer display of the essential information related to achieving a marketing objective. Each variable in the marketing dashboard is a marketing metric, which is the measure of the quantitative value or trend of a marketing activity or result.
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What is a business portfolio analysis?
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A technique that managers use to quantify performance measures and growth targets to analyze its clients' strategic business units (SBUs) as though they were a collection of seperate investments.
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Explain the four market-product strategies in diversification analysis.
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1. Market penetration: increase current sales of current products in current markets. 2. Market development: sell current products to new markets. 3. Product development: sell new products to current markets. 4. Diversification: high-risk strategy of developing new products and selling them in new markets.
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What are the 3 steps of the planning phase of the strategic marketing process?
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1. Situation (SWOT) Analysis: which involves taking stock of where the firm or product has been recently, where it is now, and where it is headed based on external forces and trends affecting it. SWOT: Strengths, Weaknesses, Opportunities, Threats 2. Market-product focus and goal setting, which determines what products an organization will offer to which customers. Based on market segmentation; aggregating prospective buyers into groups or segments that have common needs and will respond similarly to a marketing action. 3. Marketing program, in which an organization develpos the marketing mix elements and budget for each offering.
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What are the points of difference and why are they important?
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Points of difference are those characteristics of a product that make it superior to competitive substitutes - offerings it faces in the marketplace. They are the single most important factors in the success or failure of a new product.
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What is the implementation phase of the strategic marketing process?
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This phase carries out the marketing plan that emerges from the planning phase and consists of 1) obtaining resources, 2) designing the marketing organization, 3) developing planning schedules, 4) executing the marketing program designed in the planning phase.
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How do the goals set for a marketing program in the planning phase relate to the evaluation phase of the strategic marketing process?
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The planning phase objectives are used as the benchmarks with which the actual performance results are compared in the evaluation phase to identify deviations from the written marketing plans and then correct negative ones or exploit positive ones.
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Describe 3 generational cohorts.
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1. Baby Boomers: born between 1946 and 1964. These Americans are growing older and are the wealthiest generation in US History. 2. Generation X: those among the 15% of the US population born between 1965 and 1976. Well-educated Americans that have a collected net-worth less than the baby boomer generation. 3. Generation Y: the 72 million Americans among the US population born between 1977 and 1994. This generation is the result of the baby boomers having babies called "baby boomlet". After Generation Y are people born since 1994 called Millenials.
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Why are many companies developing multicultural marketing programs?
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These marketing programs consist of combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races. The reasons why companies are developing these multicultural programs is: 1) the racial and ethnic diversity of the US is changing rapidly due to the increases in the African American, Asian, and Hispanic populations, which increases their economic impact. 2) an accurate understanding of the culture of each group is essential if marketing efforts are to be successful. 3) based on an anaylsis of population demographic data, racial, and ethnic groups tend to be concentrated in specific geographical regions.
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How are important values such as sustainability reflected in the marketplace today?
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Many Americans desire and practice sustainability to preserve the environment. These kind of consumers buy hybrid cars and energy-efficient light bulbs. They also prefer brands that have a strong link to social action. Companies are responding to this consumer trend by using renewable energy in producing and reducing packaging of their products.
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What is the difference between a consumer's disposable and discretionary income?
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Disposable income is he money a consumer has left after paying taxes to necessities such as food, housing, clothing, etc. Discretionary income is the money that remains after paying for taxes and necessities and is used for luxury items.
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How does technology impact customer value?
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1. Consumers can now assess value on the basis of other dimensions such as quality, service and relationships, due to the decline in cost of technology. 2. Technology provides value through the development of new products. 3. Technology has changed the way existing products are produced through recycling and precycling.
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In pure competition there are a __________ number of sellers.
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Large
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Which Act was punitive toward monopolies and ensures a competitive marketplace?
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Sherman Antitrust Act
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Which Act was preventative?
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Clayton Act
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Describe some of the recent changes in trademark law.
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The Trademark Law Revision Act (1988) allows companies to secure rights to a name before its actual use by declaring an intent to use the name. In 2003, the US agreed to participate in the Madrid Protocol, which is a treaty that facilitates the protection of US trademark rights. The US Supreme Court recently ruled that a company may obtain trademarks for colors associated with their products.
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What does the Federal Dilution Act of 1995 do?
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This Act prevents someone from using a trademark on a noncompeting product (such as the "Cadillac" of brushes).
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How does the BBB encourage companies to follow its standards for commerce?
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The BBB uses moral suasion to get members to comply with its standards. Companies, which join the BBB voluntarily, must agree to follow these standards before they are allowed to display the BBB logo.
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What is the first stage in the consumer purchase decison process?
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Problem recognition
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The brands a consumer considers buying out of the set of brands in a product class of which the consumer is aware are collectively called what?
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Consideration set
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What is the term for postpurchase anxiety?
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Cognitive Dissonance
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The problem with the Toro Snow Pup was an example of what?
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Selective Comprehension
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What 3 attitude-change approaches are most common?
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1. Change beliefs about the extent to which a brand has certain attributes 2. Change the perceived importance of the attributes 3. Add new attributes to the product
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What does lifestyle mean?
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This is a mode of living that is identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them.
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What are the 2 primary forms of personal influence?
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1. Opinion leadership 2. Word of mouth activity
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Marketers are concerned with which types of reference groups?
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Membership groups, aspiration groups, dissociative groups.
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What 2 challenges must marketers overcome when marketing to Hispanics?
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1. The diversity of nationalities amond this subculture 2. The language barrier that can lead to misinterpretation or mistranslation of commercial messages.
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What are the 3 main types of organizational buyers?
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Industrial firms, resellers, government units
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What is the North American Industry Classification System (NAICS)?
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This system provides common industry definitions for Canada, Mexico, and the US, which makes it easier to measure economic activity in the three member countries of NAFTA (North American Free Trade Agreement)
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What one department is almost always represented by a person in the buying center?
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Purchasing department
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What are the 3 types of buying situations or buy classes?
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New buy, straight rebuy, modified rebuy
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What is a make-buy decision?
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This decision is an evaluation of whether components and assemblies will be purchased from outside suppliers or built by the company itself.
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What is a bidder's list?
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This list is a list of firms believed to be qualified to supply a given item.
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What are e-marketplaces?
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These marketplaces are online trading communities that bring together buyers and supplier organizations to make possible the real-time exchange of information, money, products, and services.
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Which type of online auction creates upward pressure on bid prices?
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Traditional auction
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Which type of online auction creates downward pressure on bid prices?
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Reverse auction
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Describe how today's customer relationship era differs from pior eras.
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1. The production era: covers period up until the 1920's when buyers were willing to accept virtually any goods that were available, "product would sell themselves" 2. The sales era: 1920s to 1960s, manufactorers found they could produce more goods than buyers could consume, and competition grew, so solution was to hire more sales people to find new buyers. 3. The marketing concept era: late 1950s, when organization adopted a strong market orientation and integrated marketing into each phase of their business. 4. The current customer relationship era: started in the 1980s to today, organizations seek continuously to satisfy the high expectations of customers - an aggresive extension of the marketing concept era.
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What are the 2 types of business organizations?
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1. A business firm 2. A nonprofit organization
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What are the 3 levels of of strategy in business organizations?
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1. Corporate level: where top management directs overall strategy for the entire organization 2. Strategic business unit level: where managers set a more specific direction for their businesses to exploit value-creating opportunities 3. Functional level: where groups of specialists actually create value for their organization.
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Why do managers use marketing dashboards?
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They use them to visually display on a single computer screen the essential information required to make a decision to take an action or further analyze a problem.
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Why do managers use marketing metrics?
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The use them to tie these metrics to the quantitative objectives established in their marketing plan, which is a road map for the marketing activities of an organization for a specified future time period, such as one year or 5 years.
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What 2 questions do managers sak when setting a strategic direction?
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1. "Where are we now?" - Reevaluate its competencies - Assess its present and prospective customers - analyze its current and potential competitors from a global perspective 2. "Where do we want to go?" -Business portfolio and diversification analyses help an organization do this.
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Which phase carries out the marketing plan that emerges from the planning phase?
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Implementation phase
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What are the 4 elements to the implementation phase?
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1. Obtaining resources 2. Designing the marketing organization to perform product management, marketing research, sales, and advertising and promotion activities. 3. Developing schedules to identify the tasks that need to be done, the time that is allocated to each one, the people responsible for each task, and the deadlines for each task's accomplishment 4. Executing the marketing strategies.
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Which phase seeks to keep the marketing program moving in the direction that was established in the marketing plan? Which requires the marketing manager to compare the results from the marketing program to the marketing plan's goals to identify deviations or planning gaps and take corrective actions to exploit positive deviations or correct negatie ones.
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Evaluation Phase
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Discuss how economic forces such as macroeconomic conditions and consumer income affect marketing.
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Economic forces include the strong relationship between consumers' expectations about the economy and their spending. Gross income has remained stable for more than 40 years although the rate of saving has fluctuated, declining to zero before rising to 6 percent recently.
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What are the 4 forms of competition?
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1. Pure competition 2. Monopolistic competition 3. Oligopoly 4. Monopoly
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What are the key components of competition?
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1. Likelihood of new competitors 2. The power of buyers and suppliers 3. The presence of competitors and possibly substitutes
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How many small businesses are currently in the US?
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Estimated 27.5 million
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What are the 5 stages of the consumer purchase decision process?
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1. Problem recognition 2. Information search 3. Alternative Evaluation 4. Purchase Decision 5. Postpurchase behavior
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What are the 3 variations of the consumer purchase decision process?
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1. Routine problem solving: for low-involvement purchases. They recognize a problem, make a decision, and spend little effort seeking external information and evaluating alternatives. 2. Extended problem solving: for high-involvement purchases; each of the 5 stages is used and considerable time and effort are devoted to each stage. 3. Limited problem solving: consumers typically seek some information or rely on a friend to help them evaluate alternatives.
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What are the physicological influences on consumer behavior?
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Motivation, personality, perception, learning, values, beliefs, attitudes, and lifestyle.
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What are the major sociocultural influences on consumer behavior?
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Personal influence, reference groups, the family, social class, culture and subculture.
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Distinguish amng industrial, reseller, and government organizational markets.
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1. Industrial: reprocess a product or service they buy before selling it to the next buyer. 2. Resellers: (wholesalers and retailers) buy physical products and resell them again without any reprocessing. 3. Government Agencies: the federal, state and local levels buy goods and services for the constituents they serve.
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What are the seven major characteristics or organizational buying that are different from consumer buying?
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1. Demand characteristics 2. The size of the order or purchase 3. The number of potential buyers 4. Buying objectives 5. Buying criteria 6. Buyer-seller relationships and supply partnerships 7. Multiple buying infuences within organization.
