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Bus 343 Exam Questions With Correct
Answers
Strategic Planning - ANSWER-the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities SWOT analysis - ANSWER-strengths, weaknesses, opportunities, threats marketing strategy - ANSWER-identifies target markets and sets marketing mix choices that focus on those markets to build a sustainable competitive advantage (Segmentation, Targeting, Positioning) sustainable competitive advantage - ANSWER-something the firm can persistently do better than its competitors and is not easily copied and thus can be maintained over a long period of time Marketing Mix - ANSWER-the set of tactical marketing tools - product, price, place, and promotion - that the firm blends to produce the response it wants in the target market Customer Marketing Mix - ANSWER-Customer driven managing tools to influence demand - customer value, customer cost, convenience, communication Marketing Plan - ANSWER-A written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and projected or pro forma income (and other financial) statements. Planning, implementation, and control - ANSWER-The three major phases of the marketing plan. planning phase - ANSWER-Where marketing executives and other top managers define the mission and objectives of the business, and evaluate the situation by assessing how various players, both inside and outside the organization, affect the firm's potential for success. implementation phase - ANSWER-Where marketing managers identify and evaluate different opportunities by engaging in a process known as segmentation, targeting, and positioning. They then develop and implement the marketing mix by using the four Ps. control phase - ANSWER-the part of the strategic marketing planning process when managers evaluate the performance of the marketing strategy and take any necessary corrective actions
Mission Statement - ANSWER-A broad description of a firm's objectives and the scope of activities it plans to undertake; attempts to answer two main questions: What type of business is it? What does it need to do to accomplish its goals and objectives? Culture, demographic, social, technological, economic, and political - ANSWER- CDSTEP Market Segment - ANSWER-A group of consumers who respond similarly to a firm's marketing effort Marketing Segmentation - ANSWER-The process of dividing the total market into groups whose members have similar characteristics. Target marketing - ANSWER-the process of evaluating each market segment's attractiveness and selecting one or more segments to enter market positioning - ANSWER-involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products
- Business Mission & Objectives
- Situation Analysis
- Identify Opportunities (STP)
- Implement Marketing Mix (4 Ps)
- Evaluate Performance by Using Marketing Metrics - ANSWER-What are the steps in a marketing plan? Internal Analysis - ANSWER-2 components of Situation Analysis Strategic Business Unit (SBU) - ANSWER-A division of the company that can be managed somewhat independently from other divisions since it markets a specific set of products to a clearly defined group of customers Product Line - ANSWER-a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges relative market share - ANSWER-a measure of the product's strength in a particular market, defined as the sales of the focal product divided by the sales achieved by the largest firm in the industry market growth rate - ANSWER-the annual rate of growth of the specific market in which the product competes
take as much risk as innovators but instead wait and purchase the product after careful review early majority - ANSWER-a group of consumers in the diffusion of innovation model that represents approximately 34% of the population; members don't like to take much risk and therefore tend to wait until bugs are worked out late majority - ANSWER-the last group of buyers to enter a new product market; when they do, the product has achieved its full market potential laggards - ANSWER-consumers who like to avoid change and rely on traditional products until they are no longer available relative advantage - ANSWER-the degree to which a consumer perceives that a new product provides superior benefits compatibility - ANSWER-the extent to which a new product is consistent with existing cultural values, customs, and practices observability - ANSWER-the degree to which the results of an innovation are visible to others Complexity and Trialability - ANSWER-products that are relatively less complex are also relatively easy to try relative advantage, compatibility, observability, & complexity and trialability - ANSWER- Factors Affecting Product Diffusion internal idea sources - ANSWER-internal social networks, intrapreneurially programs, and R&D reverse innovation - ANSWER-when companies initially develop products for niche or underdeveloped markets, and then expand them into their original or home markets licensing, brainstorming, outsourcing, competitor's products, and customer testing - ANSWER-External idea sources reverse engineering - ANSWER-involves taking apart a competitor's product, analyzing it, and creating an improved product that does not infringe on the competitor's patents, if any exist lead users - ANSWER-innovative product users who modify existing products according to their own ideas to suit their specific needs concepts - ANSWER-brief written descriptions of a product or service; its technology, working principles, and forms; and what customer needs it would satisfy
concept testing - ANSWER-the process in which a concept statement that describes a product or a service is presented to potential buyers or users to obtain their reactions product development - ANSWER-entails a process of balancing various engineering, manufacturing, marketing, and economic considerations to develop a product's form and features or a service's features prototype - ANSWER-the first physical form or service description of a new product, still in rough or tentative form, that has the same properties as a new product but is produced through different manufacturing processes, sometimes even crafted individually alpha testing - ANSWER-An attempt by the firm to determine whether a product will perform according to its design and whether it satisfies the need for which it was intended; occurs in the firm's research and development (R&D) department. beta testing - ANSWER-having potential consumers examine a product prototype in a real-use setting to determine its functionality, performance, potential problems, and other issues specific to its use premarket tests - ANSWER-conducted before a product or service is brought to market to determine how many customers will try and then continue to use it test marketing - ANSWER-introduces a new product or service to a limited geographical area (usually a few cities) prior to a national launch promotion, place, product, price (also timing) - ANSWER-the 4 P's
- Satisfies technical requirements
- Customer Acceptance
- Satisfies firm's financial requirements - ANSWER-3 Factors for Evaluating Products Commercialization - ANSWER-full-scale introduction of product or service into a market Too small target market, poor design, low quality, incorrect positioning, wrong price strategy, poor marketing communication, competition, & failure to test the product/market - ANSWER-Common Reasons for Product Failure Product Life Cycle - ANSWER-defines the stages that new products move through as they enter, get established in, and ultimately leave the marketplace and thereby offers marketers a starting point for their strategy planning introduction stage - ANSWER-stage of the product life cycle when innovators start buying the product
generation x - ANSWER- 1965 - 1976, 8% of population, latchkey kids, travellers, highly educated, cynical consumers, more in debt, experientially driven millennials - ANSWER- 1972 - 1992, 27% of population, tech savvy, media skeptics, personally centered, good work life balance generation z - ANSWER- 1993 - 2011, 22% of pop, demographically fluid, community centered, risk adverse and anxious, world changers Changing Demographics: Increased Diversity - ANSWER-Larger & growing visible minorities, growth in recognized disabilities, and acceptance of LGBTQ+ rights Changing Demographics: Families and Households - ANSWER-Growth of non- traditional families, growing crowded nest syndrome, fewer families have children, more dual-income, blended families, and divorce Changing Demographics: Education - ANSWER-increase demand for higher quality, increased understanding of value, creates demand in different products Changing Demographics: Geographic - ANSWER-rural to urban migration continue, rising asian influence, buying habits differ by region, growth in telecommuting market Technology advances - ANSWER-technological changes that have contributed to the improvement of the value of both products and services in the past few decades new markets and opportunities, increased obsolescence, accelerating customer needs, and resulting in constantly evolving regulations - ANSWER-What has tech advances resulted in? economic situation - ANSWER-Economic changes that affect the way consumers buy merchandise and spend money inflation - ANSWER-refers to the persistent increase in the prices of goods and services foreign currency fluctuations - ANSWER-changes in the value of a country's currency relative to the currency of another country; can influence consumer spending interest rates - ANSWER-cost of borrowing money (high = save more spend less) (low = borrow more spend more) Political-Legal Environment - ANSWER-Comprises political parties, government organizations, and legislation and laws that promote or inhibit trade and marketing activities. Green marketing - ANSWER-involves a strategic effort by firms to supply customers with environmentally friendly merchandise
time poverty - ANSWER-a feeling of having less time available than is required to meet the demands of everyday living Reactive Approach to Marketing - ANSWER-waiting for change then reacting, missed opportunities, damage from threats Proactive Approach to Marketing - ANSWER-Anticipate change and act now, seized opportunities, mitigate impacts of threats Hofstede's Cultural Dimensions - ANSWER-power distance, individualism, masculinity, uncertainty avoidance, long-term orientation ethical climate - ANSWER-the set of values within a marketing firm, or in the marketing division of any firm, that guide decision making and behaviour Corporate Social Responsibility - ANSWER-refers to the voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders
- Identify issues
- Gather information and identify stakeholders
- Brainstorm and evaluate alternatives
- Choose a course of action - ANSWER-Framework for Ethical Decision Making
- need recognition
- information search
- evaluation of alternatives
- purchase decision
- post-purchase behaviour - ANSWER-Consumer Decision Process Need Recognition - ANSWER-The beginning of the consumer decision process; occurs when consumers recognize they have an unsatisfied need and want to go from their actual, needy state to a different, desired state. functional needs - ANSWER-pertain to the performance of a product or service Psycological Needs - ANSWER-pertain to the personal gratification consumers associate with a product or service internal search for information - ANSWER-occurs when the buyer examines his or her own memory and knowledge about the product or service, gathered through past experiences external search for information - ANSWER-occurs when the buyer seeks information outside his or her personal knowledge base to help make the buying decision
evaluative criteria - ANSWER-consist of a set of salient, or important, attributes about a particular product determinant attributes - ANSWER-product or service features that are important to the buyer and on which competing brands or stores are perceived to differ consumer decision rules - ANSWER-the set of criteria that consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives compensatory decision rule - ANSWER-at work when the consumer is evaluating alternatives and trades off one characteristic against another, such that good characteristics compensate for bad ones noncompensatory decision rule - ANSWER-at work when consumers choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes Decision Heuristics - ANSWER-Mental shortcuts that help consumers narrow down choices; examples include price, brand, and product presentation. ritual consumption - ANSWER-a pattern of behaviors tied to life events that affect what and how we consume
- Customer Satisfaction 2)Postpurchase dissonance
- Customer Loyalty - ANSWER-3 Postpurchase outcomes postpurchase dissonance - ANSWER-An internal conflict that arises from an inconsistency between two beliefs, or between beliefs and behaviour; buyer's remorse. marketing research - ANSWER-a set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can aid decision makers involved in marketing goods, services, or ideas customer lifetime value - ANSWER-The expected contribution from the customer to the retailer's profits over his or her entire relationship with the retailer 1 ) Define research problem & objectives
- Design the research plan
- Collect Data
- Analyze Data and Develop Insights
- Determine Action Plan - ANSWER-Marketing Research Process secondary data - ANSWER-pieces of information that have already been collected from other sources and usually are readily available
primary data - ANSWER-data collected to address the specific research needs/questions currently under investigation (focus groups, in-depth interviews, surveys) data - ANSWER-raw numbers or other factual information of limited value information - ANSWER-data that has been organized, analyzed, interpreted, and converted into a useful form for decision makers big data - ANSWER-extremely large data that companies have access to but are unable to handle using conventional data management and data mining software
- Customer acquisition
- customer retention
- customer abandonment
- market basket analysis - ANSWER-Data Mining is used for what? syndicated data - ANSWER-Data available for a fee from commercial research firms such as Information Resources Inc. (IRI), National Purchase Diary Panel, and ACNielsen. scanner data - ANSWER-A type of quantitative research that uses data obtained from scanner readings of UPC codes at checkout counters. panel data - ANSWER-A type of quantitative research that involves collecting information from a group of consumers (the panel) over time; data collected may be from a survey or a record of purchases.
- Saves time, money, & inconvenience
- clarifies or refines challenge
- might provide solution to problem
- might provide primary research alternatives
- can alert to research problems
- provides background info - ANSWER-advantages of secondary data Lack of availability, not relevant, insufficient, inaccurate info - ANSWER-limitations of secondary data
- specific to immediate data needs and topic at hand
- offers behavioural insights - ANSWER-advantages of primary data costly, takes longer to collect, requires sophisticated training and experience - ANSWER-disadvantages of primary data reliability - ANSWER-the extent to which the same result is achieved when a study is repeated in identical situations
unstructured questions - ANSWER-open-ended questions that allow respondents to answer in their own words structured questions - ANSWER-closed-ended questions for which a discrete set of response alternatives, or specific answers, is provided for respondents to evaluate experimental research - ANSWER-a type of quantitative research that systematically manipulates one or more variables to determine which variable has a casual effect on another variable Questionnaire Flow - ANSWER-Screeners, warm-ups, transitions, complicated questions, classification Questionnaire Flow: Screeners - ANSWER-Established that respondent is ideal Questionnaire Flow: Warm-ups - ANSWER-gets the respondent thinking about the topic and develops rapport Questionnaire Flow: Transitions - ANSWER-Sets the tone for more difficult questions to come Questionnaire Flow: Complicated Questions - ANSWER-use of rating scales for behaviour, attitudes, beliefs, options while tackling controversial issues Questionnaire Flow: Classification - ANSWER-personal and demographic questions not useful longterm, opportunity has passed, decision has been made, no agreement, data already exists, resources are lacking, costs outweigh the benefits - ANSWER- When to not do market research Physiological, Safety, Belongingness, Ego needs, self-actualization - ANSWER- Maslow's Hierarchy of Needs
- Exposure
- Attention
- Interpretation - ANSWER-Perceptual Process Social, Psychological, and Situational Factors - ANSWER-Factors Affecting the Consumer Decision Process attitude - ANSWER-A person's enduring evaluation of their feelings about and behavioural tendencies toward an object or idea; consists of three components: cognitive, affective, and behavioural. cognitive component - ANSWER-a component of attitude that reflects what a person believes to be true
affective component - ANSWER-A component of attitude that reflects what a person feels about the issue at hand—their like or dislike of something. Behavioural component - ANSWER-refers to the way in which an attitude is expressed through our actions dissociative influence - ANSWER-A label that makes people have aversion to it reference group - ANSWER-one or more persons whom an individual uses as a basis for comparison regarding beliefs, feelings, and behaviours situational factors - ANSWER-factors affecting the consumer decision process; those that are specific to the situation that may override, or at least influence, psychological and social issues involvement - ANSWER-consumer's degree of interest in or concern about the product or service extended problem solving - ANSWER-a purchase decision process during which the consumer devotes considerable time and effort to analyzing alternatives; often occurs when the consumer perceives that the purchase decision entails a lot of risk limited problem solving - ANSWER-occurs during a purchase decision that calls for, at most, a moderate amount of effort and time impulse buying - ANSWER-A buying decision made by customers on the spot when they see the merchandise habitual decision making - ANSWER-a purchase decision process in which consumers engage with little conscious effort Cultural, personal, psychological, social - ANSWER-Factors that influence consumer behavior
- Overall Strategy & Objectives
- Segmentation Bases 3)Evaluate Segment Attractiveness 4)Select Target Market 5)Identify & Develop Positioning Strategy - ANSWER-Segmentation-Targeting- Positioning Process geographic segmentation - ANSWER-the grouping of consumers on the basis of where they live
Substantial Segmentation - ANSWER-Segment is large enough to make products profitable Reachable Segment - ANSWER-market is accessible and open to new promotions and value communicaiton responsive segment - ANSWER-market is likely to react positively to the company offering identifiable segment - ANSWER-segment is distinct and clear enough to target profitable - ANSWER-market is financially worth targeting in terms of spending habits (segment size x segment adoption % x purchase behaviour x profit margin) - fixed costs
- ANSWER-segment profitability purchase price x number of times per year customer will purchase - ANSWER-purchase behaviour (selling price-VC)/selling price - ANSWER-profit margin target market - ANSWER-a set of buyers sharing common needs or characteristics that the company decides to serve undifferentiated targeting strategy (mass marketing) - ANSWER-a marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix differentiated targeting strategy - ANSWER-a strategy through which a firm targets several market segments with a different offering for each Concentrated (or niche) targeting strategy - ANSWER-a marketing strategy of selecting a single, primary target market and focusing all energies on providing a product to fit that market's needs micromarketing (one-to-one marketing) - ANSWER-an extreme form of segmentation that tailors a product or service to suit an individual customer's wants or needs mass customization - ANSWER-The practice of interacting on a one-to-one basis with many people to create custom-made products or services; providing one-to-one marketing to the masses. marketing - ANSWER-A set of business practices designed to plan for and present an organization's products or services in ways that build effective customer relationships
marketing plan - ANSWER-A written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and projected or pro forma income (and other financial) statements. need - ANSWER-basic necessity, such as food, clothing, shelter, and safety want - ANSWER-the particular way in which a person chooses to satisfy a need, which is shaped by a person's knowledge, culture, and personality market - ANSWER-groups of people who need or want a company's products or services and have the ability and willingness to buy them exchange - ANSWER-the trade of things of value between the buyer and the seller so that each is better off as a result brand awareness - ANSWER-Measures how many consumers in a market are familiar with the brand and what it stands for; created through repeated exposures of the various brand elements (brand name, logo, symbol, character, packaging, or slogan) in the firm's communications to consumers. perceived value - ANSWER-the relationship between a product's or service's benefits and its cost brand associations - ANSWER-the mental links that consumers make between a brand and its key product attributes; can involve a logo, slogan, or famous personality brand personality - ANSWER-a set of human characteristics associated with a brand name Product Orientation - ANSWER-focus on developing and distributing innovative products with little concern about whether the products best satisfy customer's needs Sales Orientation - ANSWER-a company objective based on the belief that increasing sales will help the firm more than will increasing profits market orientation - ANSWER-companies that start out by focusing on what their consumers want and need before they design, make, or attempt to sell their products and services Value-Based Orientation - ANSWER-attempting to discover and satisfy their customer's needs and wants by focusing on people, profits, and the planet (align with people's values)
