MKT Online – Flashcards

needs, desires and expectations

economies of scale

exchange

Consumers decide what is to be produced and by whom through their dollar "votes"

it tries to determine customers' need before developing product

lettuce farming

customer value is difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits

repeat purchases above one time transactions

making sure that all departments focus their efforts on satisfying customer needs

a producer of health and beauty aids making what is desired or wanted" rather than "selling what we make." The market orientation is characterized by the following: customer focus coordinated marketing effort long-term success

Product Place promotion and price

Price is affected by the kind of competition in the target market

the needs of a target marget

None of the above statements

sociocultural

a written statement of a marketing strategy plus the time related details for carrying it out

determining product position

four

customer equity is expected profitability of a firm's current and prospective clients over some period of time

market development

Product orientation: A focus on the efficient production of company products without the use of customer information. This orientation was the norm until the early 1900s and is best when demand exceeds supply. Sales orientation: The communication is predominantly one-way to the customer and the main emphasis is to just "sell the product." This orientation emphasizes promotion. Market orientation: Prior to the selling process, information about the market is collected in order to determine what the customer needs and the best way to satisfy those needs. This is the most prevalent philosophy found in the business world today.

the marketing concept entails discovering and identifying the customers' unmet needs, and then satisfying them. The market orientation is based on this concept and is characterized by customer focus, a coordinated marketing effort, and long-term success. A customer focus involves a consistent and continuous effort to find out what customers need or want. A coordinated marketing effort means that information about the customer or marketplace is shared throughout the organization. Firms whose actions are customer-driven are better able to adapt to a dynamic marketplace, and they perform better in the long run.

The most important aspect of relationship marketing is the fact that people buy from people and companies they like and trust. As a result, building relationships with customers is extremely important in order to ensure continued sales as well as to attract new markets and customers.

The marketing mix is the blend of marketing decisions used to satisfy customer needs. They are known as the four Ps of marketing: product, place, price, and promotion.

Demographics: the characteristics of the population Economic trends: how business cycles play an important role in determining strategy Competitors: knowing competitors' positions and strategies Sociocultural trends: used to identify the emergence of substitutes Political: reflected in laws and policies that regulate business and competition Technological and scientific advances: must be monitored and analyzed

Conduct a situation analysis. This involves analyzing current marketing programs to see what changes need to be made. Develop marketing objectives. These must be specific, measurable, attainable, and consistent with larger strategic goals and the findings from the situation analysis. Determine positioning. This is based on the differential advantage or unique selling proposition. Select target markets. This requires an assessment of potential demand from potential consumer segments. Design a strategic marketing mix.

$35,000

selective perception

drive, cue, response, reinforcement

beliefs

dissonance

evalution

alternative evalution

attracting the customer to buy without exaggerating what he or she should expect

level of involvement

Get your rotten apples here

Need recognition The start of the buying process begins with the recognition that there is a need or want that requires satisfaction. Need recognition comes as a result of some form of stimuli, whether it is an element of the marketing mix, a primary or secondary need, or another external stimulus, such as seeing something you want. Information search The consumer will engage in some search of information about alternatives that may satisfy the need. An information search can occur internally or externally. An internal search is the process of recalling information stored in the memory. An external information search seeks information in the outside environment, such as from advertising, other marketing elements, or a salesperson. Alternative evaluation Once the consumers have settled on a set of alternatives, they engage in an evaluation of which is best suited to their needs. What determines the alternative selected is an attribute or set of attributes that the individual uses to judge the alternatives. Purchase decision The purchase decision stage of the consumer buying process includes whether to buy a product as well as where and how to buy it. Postpurchase evaluation Cognitive dissonance, or a feeling of anxiety or regret following a purchase decision, is a key factor in this final process. Whether a consumer experiences this phenomenon depends on his or her level of satisfaction versus his or her expectations. This is known as expectancy gap theory. The imperative and difficulty for marketers is to deliver on performance through quality products and consistent services and to attract customers without exaggerating what they should expect.

Routine decision making—for low-priced, everyday items like chewing gum, soft drinks, or magazines. Limited decision making—for moderately-priced items like small appliances, or clothing. Extensive decision making—for high-priced purchases like a house, automobile, or university education. In general, the more expensive an item is to the consumer, the more involved the consumer will be: more time will be spent searching for information, evaluating the alternatives, and evaluating the performance of the product.

Social influences—Some examples of social influences are culture, subcultures, class, reference groups, and families/households. Psychological influences—Some examples of psychological influences are those identified in Maslow's hierarchy of needs (physiological needs, safety, belonging and love, esteem, and self-actualization) and also perception, learning, personality, and attitudes. Situational influences—Some examples of situational influences are time, surroundings, purchase terms, and consumer moods and motives.

defining some broad product markets where you may be able to operate profitably

The product market segment should be large enough to be profitable

always when marketing products or services

single target market approach and multiple target market approach

purchase relationship

It may be more difficult because critical data may now be available or dependable

A. Computers are often used in clustering approaches today, largely replacing intuition and judgment formerly relied upon. B. Clustering could examine such dimensions as demographic characteristics, attitudes toward a product, and past buying behavior. C. Clustering tries to find similar patterns within sets of data. D. Results from clustering sometimes suggest new or better marketing strategies. E. All of the above are true.

beverage

create a competitive position

one

No, this is definitely not a good idea for Melissa. Although she may feel that everyone can use a wedding coordinator, it is never a good idea to market a product or service to everyone in the same way. The bottom line is you always segment your market. Thinking about how different groups of consumers may respond takes little effort and often leads to more effective and efficient marketing spending.

Identify the current and potential wants that exist within a market. Carefully examine the market to determine the specific needs being satisfied by current offerings, the needs current offerings fail to adequately satisfy, and the needs that may not yet be recognized. This may involve interviewing and/or observing consumers or firms to determine their behavior, levels of satisfaction, and frustrations. Identify characteristics that distinguish among the segments. Focus on what consumers who share a particular want have in common to distinguish them from other segments in the market that have different wants. Determine the size of the segments and how well they are being satisfied. Estimate how much demand each segment represents and the strength of the competition. This will help identify which segments are worth pursuing.

Geographic segmentation—subdividing markets into segments based on location (regions, counties, cities). This is done because consumers' wants and product or service usage are often related to one or more subcategory. Demographic segmentation—subdividing markets into segments based on age, gender, family life-cycle stage, income, and education. Segments are based on these characteristics because they are often strongly related to demand and are relatively easy to measure. Psychographic segmentation—examining attributes related to how a person thinks, feels, and behaves. Frequently included in a psychographic segmentation are personality dimensions, life-style characteristics (activities, hobbies, opinions, etc.), and consumer values. Behavioral segmentation—segmenting based on product or service-related behaviors, particularly the benefits that a consumer desires to obtain, and their usage rate.

A. implementing marketing strategies B. planning marketing strategies C. making operational decisions D. controlling marketing strategies E. all of the above

marketing research develops and analyzes new information about a market in single-project instances whereas marketing information systems gate, access and analyze market information on a continual basis

write a research propsal

study what information is already available

it is date collected specifically to solve a current problem

it provides in depth responses

I. Using data already collected is usually more cost-effective than collecting it yourself. II. Secondary data is more credible because it is often available from multiple sources. III. Secondary data is more credible because its collection is usually independent of the firm in question.

Research conclusions will vary because all those who watch the interview from their own impressions of what happened in the group discussion

mail surveys

A bank segments its current customers into age groups and then randomly surveys 1,000 customers within each of those age-defined groups in order to find out which of its services each demographic finds the most useful.

Primary data are new data gathered specifically for the project at hand. Collection of primary data should begin only once secondary data sources have been exhausted. Methods of acquiring primary data include observation, surveys, interviews, and experiments. Secondary data are available data already gathered for some other purpose that is applicable to the project at hand. Typically, secondary data can be gathered much faster and at far less expense than primary data. Some excellent sources of secondary data are internal firm records, various federal government agencies, firm Web sites, private research firms, universities, business publications, and libraries.

Privacy in data collection—This issue includes the question of at what point data collection becomes an invasion of privacy. Anonymity should be maintained whenever possible. Privacy in data use—In the routine process of doing business, firms often gather a lot of information about their customers or clients. This information contains material that must be kept confidential in order to assure privacy is maintained. Intrusiveness—A major problem for marketers is that gathering information can be annoying and inconvenient for the respondent. Therefore, companies must determine at what point requesting information becomes intrusive. Deceptive implementation—Falsely representing oneself to obtain information can be considered unethical. In most cases these deceptions are harmless, but they should be avoided. False representation—Attempting to earn or raise money under the guise of research is, unfortunately, fairly common and negatively affects those who legitimately try to gain respondents' cooperation.

To sell what is already made or is being made. New day orientation

efficient production of their products with no input from customers. Product will sell itself