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68 Cards in this Set

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  • Back
All of the following are accurate descriptions of modern marketing today, except which one?
a.Marketing is creation of value for customers.
b.Marketing is managing profitable customer relationships.
c.Selling and advertising are synonymous with marketing.
d.Marketing involves satisfying customers’ needs.
e.Marketing is used by for-profit and not-for-profit organizations.
Selling and advertising are synonymous with marketing.
When backed by buying power, wants become ________.
a.social needs
b.demands
c.physical needs
d.self-esteem needs
e.exchanges
Demands
_____ is the act of obtaining a desired object from someone by offering something in return.
a.A value proposition
b.Exchange
c.Value
d.Donation
Exchange
_____ is the set of actual and potential buyers of a product.
a.A market
b.An audience
c.A group
d.A segment
e.An exchange
A market
In the case of excess demand, ________ may be required to reduce the number of customers or to shift demand temporarily or permanently.
a.marketing
b.demarketing
c.value marketing
d.surplusing
e.negotiating
demarketing
The mousetrap case I narrated in the very first class reflects the ________.
a.production concept
b.marketing concept
c.selling concept
d.product concept
e.target marketing
product concept
A highly profitable, short term customer is a ________.
a.true friend
b.butterfly
c.stranger
d.barnacle
e.true believer
butterfly
A church targeting different demographic groups to increase attendance is an example of ________.
a.for-profit marketing
b.not-for-profit marketing
c.mindless marketing
d.ethics in marketing
e.societal marketing
not-for-profit-marketing
Which of the following terms is used to describe the factors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers?
a.the marketing environment
b.strategic planning
c.target markets
d.the marketing mix
e.none of the above
the marketing environment
Percy Original caters to a market of individuals and households that buys goods and services for personal consumption. What type of market does Percy Original cater to?
a.business
b.reseller
c.government
d.consumer
e.marketing intermediary
consumer
Which type of market buys goods and services for further processing or for use in the production process?
a.business
b.reseller
c.wholesale
d.consumer
e.retail
business
Your marketing department is currently researching the size, density, location, age, and occupations of your target market. Which environment is being researched?
a.demographic
b.psychographic
c.economic
d.geographic
e.cultural
demographic
The three largest age groups in America are the baby boomers, Generation Xers, and ________.
a.seniors
b.Millennials or Generation Y
c.teens
d.tweens
e.toddlers
Millennials or Generation Y
The most commercially influential American demographic group today is ________.
a.Generation X
b.the baby boomers
c.the Millennials or Generation Y
d.the seniors
e.the infants
the baby boomers
Baby boomers were born between the years 1946 and _____.
a.1954
b.1960
c.1964
d.1970
e.1980
1964
1.Products and Services
2.Value,satisfaction, and quality
3.Exchange,transactions,
and relationships
4.Markets
5.Needs,wants, and demands
Core marketing concept
is identifying and satisfying consumer needs.
Marketing
1.Defining the Problem and Research Objectives
2.Developing the Research Plan
3.Implementing the Research Plan
4.Interpreting and Reporting the Findings
The Marketing Research Process
Observational research
gathering primary data by relevant people, actions, and situations.
personal interviewing that involves inviting 6 to 10 people to gather for a few hours with trained interviewer to talk about their product.
Focus-group research
gathering primary data asking people ?s about their knowledge, attitudes, preferences, and buying behavior.
Survey research
Tries to explain cause-and-effect relationships.
Experimental research
Stars
high growth, high market share businesses or products.
Cash Cows
low growth, high market share businesses or products.
Question marks
low share business units in high growth markets.
Dogs
low growth, low market share business.
Factors Influencing Consumer Behavior
1. Cultural
Culture, Sub-culture Social class
Exert broadest and deepest influence.
2.Social
Reference Groups-membership-primary vs. secondary, Family roles, and status.
3.Personal
Age and life-cycle, Occupation,
Economic situation, Lifestyle, Personality, and self-concept
4.Psychological
1. Motive
need that is sufficiently pressing to direct the person to seek satisfaction.
2. Perception
the process by which people select, organize, and interpret information from a meaningful picture of the world.
3.Learning
changes in an individual's behavior arising from experience.
4. Beliefs/ Attitudes
A descriptive thought that a person holds about something.

How someone feels about the product.
Compared to Consumer Markets, Business Markets have?
Fewer buyers Close relationships with their supplier-customers

Larger buyers, Geographically concentrated buyers
Market Segmentation:
1.Measurable
2.Accessible
3.Substantial
4.Differential
5.Actionable
Size, purchasing power, profiles
of segments can be measured

Segments can be effectively
reached and served.

Segments are large or profitable enough to serve.

Segments are large or profitable enough to serve.

Effective programs can be designed to attract and serve the segments.
Deeds,processes,and performance
1.Intangible

2.Perishable Challenged by human interaction:

3.Produced/Consumed
Simultaneously

4.Heterogeneous
Service Products are?
New-Product Development Process
1.Idea generation
2.Idea Screening
3.Product concept
the systematic search for new-product ideas.

Screening new product ideas in order to spot good ideas and drop poor ones asap.

Detail version of the new-product idea stated in meaningful consumer terms.
4.Marketing Strategy

5.Business Analysis
Designing an initial marketing for a new product based on product concept.

A review of the sales, costs and profit projections for a new product to find out whether these factors satisfy the company's objectives.
Product Development

Test marketing
Developing the product concept into a physical product in order to ensure that the product idea can be turned into a workable market offering.

The stage of new-product development in which the product and marketing program are tested in realistic market setting.
Product life cycle:

1.Introduction

2.Growth
Period of slow sales growth as the product is introduced into the market.

Period of rapid market acceptance and increasing profits.
3.Maturity

4.Decline
Period of slowdown in sales and growth because the product has achieved acceptance by most potential buyers.

Period when sales fall off and profit drops.
Setting Prices:

Price
the amount of money charged for a product or service.
Factors to Consider When Setting Prices decisions
Internal Factors:
include the company's overall marketing strategy, objectives, mix, and organization for pricing.
Factors to Consider When Setting Prices decisions

External factors:
include the nature of the market and demand, competitors' strategies and prices, and environmental factors such as the economy.
Price Elasticity of Demand

A. Inelastic Demand

B. Elastic Demand
Demand Hardly Changes With
a Small Change in Price.True for unique, exclusive products or necessities

Demand Changes Greatly With
a Small Change in Price.Example: air travel
Vertical Marketing Systems:
A distribution structure in which producers, wholesalers, and retailers act as a unified system.
Corporate VMS:
a vertical marketing system that combines successive stages of production and distribution under single ownership-channel leadership is established through common ownership.
Contractual VMS:
a vms in which independent firms at different levels of production and distribution join together through contract to gain more economies or sales impact that they could achieve alone.
Administered VMS
vms that coordinates successive stages of production and distribution not through a common ownership or contractual ties.
Franchise Organization
a contractual vertical system in which a channel member called a franchisor, links several stages in the production, distribution process.
Specialty Store
(Bed bath and Beyond)
Narrow Product Line, Deep Assortment i.e. The Limited or Athlete’s Foot
Department Store
(Sears)
Wide Variety of Product Lines i.e. Clothing, Home Furnishings, & Household Items
Supermarkets
(Hyvees)
Wide Variety of Food, Laundry, & HouseholdProducts
Convenience Stores
(7-11)
Limited Line of High-Turnover Convenience Goods
Superstores
(New WalMarts)
Large Assortment of Routinely Purchased Food & Nonfood Products, Plus Services
Giant Specialty Store that Carries a Very Deep Assortment of a Particular Line
Category Killers
(Best Buy)
Hypermarkets
(Woolworth)
Huge Superstores
Integrated Marketing Communications
1.Consumer receive messages from various sources
2.All these messages get blurred and form a general impression about the company/product/brand
3.Conflicting messages means the consumer is confused about what you stand for. A premium product advertising does not go well with frequent promotions and price cuts
4.Often companies have a “communications director” who makes sure that the messages are consistent
Major Decisions in Advertising
1.Advertising objective
2.Budget Decision
3.Advertising Strategy
4.Evaluation
A specific communication task to be accomplished with a specific target audience during a specific period of time.

The dollars and other resources allocated to product or company advertising program.

The strategy by which the company accomplishes its advertising objectives.

Evaluating advertising campaigns.
personal selling
Involves two-way, personal communication between salespeople and individual customers whether: face to face,by telephone,through video conferencing,or by other means.
The term salesperson covers a wide spectrum of positions from
1.Order Taking (department store salesperson)

2.Order Getting (someone engaged in creative selling

3.Missionary Selling (building goodwill or educating buyers
Sales Force Structures

1.Territorial:
Exclusive Territory to Sell theCompany’s Full Product Line
1.Sales easy to track

2.Longterm relations

3.Low travel expenditure
Sales Force Structures

Product
Sales Force Sells Along
Product Lines
Better product knowledge
Can be difficult to coordinate
Sales Force Structure

Customer:
Sales Force Sells Along
Customer/ Industry Lines

Large vs. small

Industrial vs. institutional
Sales Force Structure
4.Complex
Combination of Above Types of Sales Force Structures
Territorial, and within that, customer-based
GATT (General Agreement on Tariffs and Trade)
1.World treaty to reduce trade barriers and promote world trade, initiated in 1948
2.So far 8 rounds to set rules of international trade
3.The most recent: Uruguay round. Focus on agriculture and intellectual property rights
WTO (World Trade Organization)
1.Uruguay round established WTO in 1995
2.Is an institution, not an agreement like GATT
3.Has binding power unlike GATT
4.Oversees implementation of GATT and other trade-related issues
Regional Free Trade Zones
1.Groups of nations organized to work towards common goals in international trade
2.Typically, provides for favorable treatments for members, and entry-barriers for non-members