Marketing review Test Answers – Flashcards
Flashcard maker : Maxim Beck
Define marketing and identify the requirements for marketing to occur
Marketing is “the activity for creating, communicating, delivering, and exchanging offerings that benefit an organization, its stakeholders, and society at large.”
What does Marketing seek to do?
1. Discover needs and wants of customers
2. Satisfy them
2. Satisfy them
What is required for marketing to occur?
1. Two or more parties with unsatisfied needs
2. A desire and ability to be satisfied
3. A way for the parties to communicates
4. Something to exchange
2. A desire and ability to be satisfied
3. A way for the parties to communicates
4. Something to exchange
Know what relationship marketing involves and understand the consumer value concept
-Relationship Marketing: Linking the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit.
-Customer Value: the unique combination of benefits received by the targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sales service at a specific price.
Describe how core values, mission, organizational culture, business, and goals are important to organizations
-Core values p. 29 The fundamental, passionate, and enduring principles of an organization that guide its conduct over time.
-Mission p. 29 A statement of the organization’s function in society, often identifying its customers, markets, products, and technologies. Often used interchangeably with vision.
-Organizational culture p. 30 The set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization.
-Business p. 30 The clear, broad, underlying industry or market sector of an organization’s offering.
-Goals p. 31 Statements of an accomplishment of a task to be achieved, often by a specific time. Also called objectives.
Understand the strategic marketing process, including what developing a situational and SWOT analysis entails
ituation analysis, which means taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization’s marketing plans and the external forces and trends affecting it.
An effective summary of a situation analysis is a SWOT analysis, an acronym describing an organization’s appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats.
Know how the marketing mix elements are blended into a cohesive marketing program
The Four P’s (price, place, promotion, and product) are all used to satisfy the “Market” of people with both the desire and the ability to buy a specific offering.
Understand the forms of competition that exist in a market
There are three main types of competition:
-Pure Competition: where there are many sellers and they each have similar product. Ex: Gas
-Monopolistic Competition: Many sellers compete with substitutable products within a price range. If the price of coffee rises too much consumers may switch to tea. Ex: Fast Food in San Marcos.
-Pure Monopoly: Occurs when only one firm sells the products. Monopolies are common for producers of goods considered essential to community: water, electricity, and cable service.
-Pure Competition: where there are many sellers and they each have similar product. Ex: Gas
-Monopolistic Competition: Many sellers compete with substitutable products within a price range. If the price of coffee rises too much consumers may switch to tea. Ex: Fast Food in San Marcos.
-Pure Monopoly: Occurs when only one firm sells the products. Monopolies are common for producers of goods considered essential to community: water, electricity, and cable service.
Understand the role that regulation plays in the marketing environment
Regulation consists of restrictions state and federal laws place on business with regard to the conduct of its activities. Regulation exists to protect companies as well as consumers
Understand what is meant by multicultural marketing programs and why they are important
Multicultural marketing which are combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preference, and lifestyles of different races all contribute to the marketing strategy
Be able to differentiate between what is ethical and what is legal:
-Ethics: The moral principles and values that govern the actions and decisions of an individual or group. They serve as guidelines on how to act rightly and justly when faced with moral dilemmas.
-Laws: Societies values and standards that are enforceable in the courts. There are four ways to classify marketing decisions according to ethical and legal relationships: Ethical but illegal, Ethical and Legal, Unethical and Illegal, Unethical but legal.
-Laws: Societies values and standards that are enforceable in the courts. There are four ways to classify marketing decisions according to ethical and legal relationships: Ethical but illegal, Ethical and Legal, Unethical and Illegal, Unethical but legal.
Identify factors (e.g., societal, business and corporate culture) and moral philosophies (e.g., moral idealism and utilitarianism) that influence ethical and unethical marketing decisions
-Business Cultures: Compromise the effective rules of the game, the boundaries between competitive and unethical behavior and the codes of conduct in business dealings. Social Responsibility: Refers to obligations that organizations have (1) to the preservation of the ecological environment and (2) to the general public.
-Corporate Culture: The set of values, ideas, and attitudes that is learned and shared among the members of an organization.
-Moral Idealism: Is a personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome. Ex: when scotch guard ingredients had the possibility of making only a few people sick they still took it off the shelf. Utilitarianism: Is the personal moral philosophy that focuses on “the greatest good for the greatest amount of people” by assessing the costs and benefits of the consequences of ethical behavior. If the benefits exceed the cost then the behavior is ethical. If not the behavior is unethical
-Corporate Culture: The set of values, ideas, and attitudes that is learned and shared among the members of an organization.
-Moral Idealism: Is a personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome. Ex: when scotch guard ingredients had the possibility of making only a few people sick they still took it off the shelf. Utilitarianism: Is the personal moral philosophy that focuses on “the greatest good for the greatest amount of people” by assessing the costs and benefits of the consequences of ethical behavior. If the benefits exceed the cost then the behavior is ethical. If not the behavior is unethical
Understand the various components of social responsibility
Societal Responsibility: Refers to obligations that organizations have (1) to the preservation of the ecological environment and (2) to the general public.
Today emphasis is placed on what is termed the Triple-bottom-line Recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable long term growth. This includes Green Marketing, Cause Marketing, And Sustainable Development.
Be aware of some of the different types or manifestations of societal responsibility
-Green Marketing: Marketing efforts to produce promote and reclaim environmentally sensitive products.
-Cause Marketing: When the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products
-Sustainable Development: Involves conducting business in a way that protects the natural environment while making economic progress.
-Cause Marketing: When the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products
-Sustainable Development: Involves conducting business in a way that protects the natural environment while making economic progress.
Know and understand the purchase decision process model
The process includes 5 stages:
1. Problem Recognition: There is a difference between actual state and need that is unmet ex: you’re hungry, you need to eat.
2. Information Search: The info you need to make the decision on how to obtain your need.
3. Alternative Evaluation: Consumers create and use Evaluative Criteria which represent both objective attributes of a brand (such as display) and subjective ones (such a prestige) you use to compare different products and brands.
4. Purchase Decision: When you make the decision.
5. Post-purchase behavior: People and companies want to make sure that you are continuing your satisfaction with their product and that you are not experiencing cognitive dissonance.
1. Problem Recognition: There is a difference between actual state and need that is unmet ex: you’re hungry, you need to eat.
2. Information Search: The info you need to make the decision on how to obtain your need.
3. Alternative Evaluation: Consumers create and use Evaluative Criteria which represent both objective attributes of a brand (such as display) and subjective ones (such a prestige) you use to compare different products and brands.
4. Purchase Decision: When you make the decision.
5. Post-purchase behavior: People and companies want to make sure that you are continuing your satisfaction with their product and that you are not experiencing cognitive dissonance.
Distinguish among three variations of the consumer purchase decision process: routine, limited, and extended problem solving
-Extended Problem Solving: Exists in high-involvement purchase situations for items such as automobiles and audio systems. Ex: Big ticket items.
-Limited Problem Solving: Consumers typically seek some information or rely on a friend to help them evaluate alternatives. Limited problem solving might be used in choosing a toaster, a restaurant for lunch, and other purchase situations in which the consumer has little time or effort to spend.
-Routine Problem Solving: Is typically the case for low-priced, frequently purchased products such as table salt, a soft drink, or snack.
-Limited Problem Solving: Consumers typically seek some information or rely on a friend to help them evaluate alternatives. Limited problem solving might be used in choosing a toaster, a restaurant for lunch, and other purchase situations in which the consumer has little time or effort to spend.
-Routine Problem Solving: Is typically the case for low-priced, frequently purchased products such as table salt, a soft drink, or snack.
Understand the key characteristics of organizational buying that make it different from consumer buying
-Organizational Buyers: Those manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale.
-Organizational buying criteria: are the objectives attributes of the supplier’s products and services and the capabilities of the supplier itself.
Commonly used criteria includes: Price, ability to meet quality specifications requited for the item, ability to meet required delivery schedules, technical capability, warranties and claim polices in the event of poor performance, past performance contracts, production facilities and capacity.
Know the three types of buying situations:
-New Buy: The organization is a first time buyer of the product. This involves greater risk, so more people enter into the decision process.
-Straight Re-buy: A re-order of an existing product or service from the list of acceptable suppliers.
-Modified Re-buy: Involves a change in product specifications, price, delivery, schedule, or suppliers.
-Straight Re-buy: A re-order of an existing product or service from the list of acceptable suppliers.
-Modified Re-buy: Involves a change in product specifications, price, delivery, schedule, or suppliers.
Understand issues that a marketer must consider in global environmental scanning
Values: Represent personally or socially preferable modes of conduct or states of existence that tend to persist over time.
-Customs: Are what is considered normal and expected about the way people do things in a specific country.
-Cultural Symbols: Things that represent ideas and concepts. Symbols and symbolism play an important role in cross cultural analysis because different cultures attach different meaning to things.
-Cross Cultural Analysis: Involves the study of similarities and differences among consumers in two or more nations or societies.
Semiotics: Examines the correspondence between symbols and their role in the assignment of meaning for people.
-Cultural Ethnocentrism: The tendency to believe that it is inappropriate indeed immoral to purchase foreign-made products. The belief that buying imported products is wrong because such purchases are unpatriotic, harm domestic industries, and cause domestic unemployment.
-Customs: Are what is considered normal and expected about the way people do things in a specific country.
-Cultural Symbols: Things that represent ideas and concepts. Symbols and symbolism play an important role in cross cultural analysis because different cultures attach different meaning to things.
-Cross Cultural Analysis: Involves the study of similarities and differences among consumers in two or more nations or societies.
Semiotics: Examines the correspondence between symbols and their role in the assignment of meaning for people.
-Cultural Ethnocentrism: The tendency to believe that it is inappropriate indeed immoral to purchase foreign-made products. The belief that buying imported products is wrong because such purchases are unpatriotic, harm domestic industries, and cause domestic unemployment.
Know the various global market-entry strategies:
-Indirect Exporting: Using an intermediary to assist in the exporting. The easiest way to start, least commitment and risk, but also produces the least profit because some of it has to go to the intermediary. You sell it through a partner.
-Direct Exporting: Selling products in other countries without using an intermediary. This is tougher because you don’t have a cultural contact.
-Joint Venture: When a foreign company and local firm invest together to create a local business.
-Direct Investment: Entitles a domestic firm actually investing in and owning a foreign subsidiary (ex: Mercedes-Benz factory in Vance, Alabama.)
-Direct Exporting: Selling products in other countries without using an intermediary. This is tougher because you don’t have a cultural contact.
-Joint Venture: When a foreign company and local firm invest together to create a local business.
-Direct Investment: Entitles a domestic firm actually investing in and owning a foreign subsidiary (ex: Mercedes-Benz factory in Vance, Alabama.)
