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MKT 3013 Study Guide for the FINAL EXAM (chapters 1-8; 10-15) Chapter 1 Define marketing, needs, wants, demands. Marketing: the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return Needs: states of felt deprivation Wants: the form human needs take as they are shaped by culture and individual personality Demands: human wants that are backed by buying power Define market offerings Market offerings: some combination of products, services, information, or experiences offered to a market to satisfy a need or want Define marketing myopia Marketing myopia: the mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products Define value and satisfaction Value: Satisfaction: feelings of pleasure or disappointment resulting from comparing a product’s perceived performance in relation to expectations Define exchange and relationships Exchange: the act of obtaining a desired object from someone by offering something in return Relationships: What is a market? Market: the set of all actual and potential buyers of a product or service What is a value proposition? Value Proposition: set of benefits or values it promises to deliver to consumers to satisfy their needs List the 5 marketing management orientations and define each.
- Production concept: the idea that consumers will favor products that are available and highly affordable, therefore, the organization should focus on improving production and distribution efficiency
- Product concept: the idea that consumers will favor products that offer the most quality, performance, and features; therefore, the organization should devote its energy to making continuous product improvements
- Selling concept: the idea that consumers will not buy enough of the firm’s products unless the firm undertakes large-scale selling and promotion effort
- Marketing concept: a philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do
- Societal marketing concept: the idea that a company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumer’s long run interest, and society’s long run interests What is perceived-customer value? Customer lifetime value? Customer perceived value: the customer’s evaluation of the difference between all the benefits and all the cots of a market offer relative to those of competing offers Customer lifetime value: the value of the entire stream of purchase a customer makes over a lifetime of patronage Chapter 2 Define strategic planning. Mission statement.
Strategic planning: the process of developing and maintaining a strategic fit between the organizations goals and capabilities and its changing marketing opportunities Mission statement: a statement of the organization’s purpose- what it wants to accomplish in the larger environment What is the BCG? Know the two axis and the names of each quadrant (figure 2.2). BCG: x-axis: relative market share y-axis: market growth rate Star Question mark Cash cow dog Review the Product/Market Expansion Grid (Figure 2.3). Know each quadrant. Define market segmentation, market segment, targeting, differentiation, positioning. Market segmentation: dividing a marketing into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs Market segment: a group of consumers who respond in a similar way to a given set of marketing efforts Market targeting: the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter Differentiation: Positioning: arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers What is the marketing mix? 4 P’s? Define each one. Marketing mix: 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 4 P’s: o Product: the goods and services combination the company offers to the target market o Price: the amount of money customers must pay to obtain the product o Place: company activities that make the product available to target consumers o Promotion: activities that communicate the merits of the product and persuade target customers to buy it Define SWOT (see figure 2.7) SWOT: o Strengths: internal capabilities that may help a company reach its objectives (Internal, positive) o Weaknesses: internal limitations that may interfere with a company’s ability to achieve its objectives (internal, negative) o Opportunities: external factors that the company ay be able to exploit to its advantage (external, positive) o Threats: current and emerging external factors that may challenge the company’s performance (external, negative) Chapter 3 Define marketing environment. Micro and Macro. Marketing environment: the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers Microenvironment: the actors close to the company that affect its ability to serves its customers- the company, suppliers, marketing intermediaries, customer markets, competitors, and publics
Exploratory research: marketing research to gather preliminary information that will help define problems and suggest hypotheses Descriptive research: 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 Casual research: marketing research to test hypotheses about cause and effect relationships Secondary data versus primary data. Secondary data: information that already exists somewhere, having been collected for another purpose Primary data: information collected for the specific purpose at hand What is observational, ethnographic research, survey, experimental? Observational research: gathering primary data by observing relevant people, actions, and situations Ethnographic research: a form of observational research that involves sending trained observers to watch and interact with consumers in their “natural environments” Survey research: gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior Experimental research: gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses Define sample. A segment of the population selected for marketing research to represent that population as a whole Define CRM. Customer relationship management: managing detailed information about individual customer and carefully managing customer touch points to maximize customer loyalty Chapter 5 Define consumer behavior and consumer market. Consumer buyer behavior: the buying behavior of final consumers- individuals and households that buy goods and services for personal consumption Consumer market: all the individuals and households that buy or acquire goods and services for personal consumption List the characteristics that affect CB. Cultural factors Social factors Personal factors Psychological factors What is the BBB? Business buyer behavior: the buying behavior of organizations that buy goods and services for sue in the production of other products and services that are sold, rented, or supplied to others What is culture? Culture: the set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions Social class? Social class: relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors What are reference groups? Opinion leaders? Reference groups: serve as direct or indirect points of comparison or reference in forming a person’s attitudes or behavior Opinion leaders: a person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others Review Maslow’s Hierarchy of Needs (list and define)
- Self-actualization needs: self-development and realization (top)
- Esteem needs: self-esteem, recognition, status
- Social needs: sense of belonging, love
- Safety needs: security, protection
- Physiological needs: hunger, thirst (bottom) What are the steps in the Buyer Decision Process (Figure 5.5)
- Need recognition
- Information search
- Evaluation of alternatives
- Purchase decision
- Post purchase behavior List the adopter categories (Review figure 5.6) Innovators Early adopters Early mainstream Late mainstream Lagging adopters List/define the 5 factors that influence the rate of adoption Relative advantage: the degree to which the innovation appears superior to existing products Compatibility: the degree to which the innovation fits the values and experiences of potential consumers Complexity: the degree to which the innovation is difficult to understand or use Divisibility: the degree to which the innovation is difficult to understand or use Communicability: the degree to which the results of using the innovation can be observed or descried to others Define business market. Define derived demand. Business market: operate behind the scenes to most consumers. Most of the things you buy involve many sets of business purchases before you ever see them Derived demand: business demand that ultimately comes from the demand for consumer goods List and define the 3 major types of buying situations (page 155)
- Straight rebuy: a business buying situation in which the buyer routinely reorders something without any modifications
- Modified rebuy: a business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers
- New task: a business buying situation in which the buyer purchases a product or service for the first time Chapter 6 List the variables for segmentation and define each.(table 6.1 provides examples) Geographic segmentation: dividing a market into different geographical units, such as nations, states, regions, counties, cities, or even neighborhoods Demographic segmentation: dividing the market into segments based on variables such as age, life- cycle stage, gender, income, occupation, education, religion, ethnicity, and generation Psychographic: dividing a market into different segments based on social class, lifestyle, personality Behavioral: dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product List and define the target marketing strategies (figure 6.2) Undifferentiated mass marketing: a market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer
Branding: a name, term, sign, symbol, or design, or a combination of these, that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors Packaging: the activities of designing and producing the container or wrapper for a product Labeling: Define product line, mix, length, width, filling, stretching. Product line: a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed though the same types of outlets, or fall within given price ranges Product mix: the set of all product lines and items that a particular seller offers for sale Product length: refers to the total number of items a company carries within its product lines Product depth: refers to the number of versions offered for each product in the line Product width: refers to the number of different product lines the company carries Product consistency: refers to how closely related the various product lines are in their end use List the 4 special service characteristics (figure 7.3)
- Service Intangibility: services cannot be seen, tasted, felt, heard, or smelled before they are bought
- Service inseparability: services cannot be separated from their providers
- Service variability: quality of services depends on who provides them and when, where, and how
- Service perishability: services cannot be stored for later sale or use Define brand equity, positioning, selection, sponsorship and development. (figure 7.5) Brand equity: differential effect that knowing the brand name has on customer response to the product or its marketing Brand positioning: attributes, benefits, beliefs and values Brand selection: selection, protection Brand sponsorship: manufacturer’s brand, private brand, co-branding, licensing Brand development: line extensions, brand extensions, multibrands, new brands Define line extension, brand extension, multibrands, new brands (figure 7.6) Line extension: extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an exiting product category Brand extension: extending an existing brand name to new product categories Multibrands: companies market many different brands in a given product category New brands:
Chapter 8 What is new product development?
New product development: Development of new products through the firm’s own research
and development efforts
New product - Original products, product improvement and modifications, and new brands
List and define the steps (figure 8.1). Idea generation- the systematic search for new product ideas. Major sources of new product ideas include internal sources and external sources. Idea screening- Screening new product ideas to spot good ones and drop poor ones as soon as possible Concept developing and testing- Developing a new product into alternative product concepts and Testing a group of target consumers to find out the degree of consumer appeal toward the concepts Marketing strategy development- Initial marketing strategy for a new product The marketing strategy statement Describes the target market, the planned value proposition, and the sales, market-share, and profit goals for the first few years Outlines the planned product price, distribution, and marketing budget for the first year Describes the planned long-run sales, profit goals, and marketing mix strategy Business analysis- Review of the sales, costs, and profit projections for a new product To find out whether the projections satisfy the company’s objectives Product development- Develop the product concept into a physical product To ensure that the product idea can be turned into a workable market offering Test marketing- The product and its proposed marketing program are introduced into realistic market settings. Gives the marketer an experience with marketing a product before the introduction Tests the product and its marketing program Costs can be high Time consuming Commercialization- Introducing a new product into the market Define product lifecycle and list each phase (figure 8.2). Know what happens with sales and profits for each phase.
What are the major logistic functions? Warehousing Inventory management Transportation Logistics information management Chapter 11 Define retailing. Retailor. Retailing- Activities involved in selling goods or services directly to consumers for their personal use Retailor- Business whose sales come primarily from retailing Chapter 12 What is the promotion mix (list and define EACH) Specific blend of promotion tools Used by companies to: Engage consumers and persuasively communicate customer value Build customer relationships -Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. -Sales promotion involves short-term incentives to encourage the purchase or sale of a product or service. -Personal selling is personal customer interactions by the firm’s sales force for the purpose of making sales and building customer relationships. -Public relations refers to building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events. -Direct and digital marketing involves engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships. Define IMC.
Define advertising. Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor What are the steps in advertising (figure 12.3)
- Objectives setting
- Budget decisions
- Message and media decisions
- Advertising evaluation What is the best advertising budget method? Define public relations. Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories and events. Publicity is a non-personal communication in a news-story form about an organization, its products, or both Is transmitted through a mass medium at no charge Public relations should be viewed as an ongoing program during crises and good times Promotes products, people, ideas, organizations, and nations Builds good relations with consumers, investors, the media, and communities Rebuilds interest in commodities for trade associations Chapter 13 Define personal selling. Personal selling: personal presentations by the firm’s sales force for the purpose of making sales and building customer relationships Steps of personal selling: o Prospecting and qualifying: the sales step in which a salesperson or company identifies qualified potential customers o Preapproach: salesperson learns as much as possible about prospective customer before making a sales call o Approach: salesperson meets the customer for the first time o Presentation: salesperson tell the value story to the buyer, showing how the company’s offer solves the customer’s problems o Handling objectives: salesperson seeks out, clarifies, and overcomes any customer objections to buying o Closing: salesperson asks the customer for an order o Follow-up: salesperson follows up after the sale to ensure customer satisfaction and repeat business Define sales promotions. Sales Promotions: Short-term incentives to encourage the purchase or sale of a product or a service Types of sales promotions: o Consumer promotions: sales promotion tools used to boost short term customer buying and engagement or enhance long term customer relationships
