MKT 300- Test 1 Study Guide
MKT 300- Test 1 Study Guide MKT 300
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This 12 page Study Guide was uploaded by Julie Knight on Monday February 8, 2016. The Study Guide belongs to MKT 300 at University of Alabama - Tuscaloosa taught by Susan Fant in Spring2015. Since its upload, it has received 122 views. For similar materials see Marketing in Business at University of Alabama - Tuscaloosa.
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Date Created: 02/08/16
MKT 300 Susan Fant Marketing Test Review (Chapters 1-5): Chapter 1: Marketing 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 Market offering- some combination of products, services, information, or experiences offered to a market to satisfy a need or want 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 Exchange- the act of obtaining a desired object from someone by offering something in return Market- the set of all actual and potential buyers of a product or service Marketing management- the art and science of choosing target markets and building profitable relationships with them Market segmentation- refers to dividing the markets into segments of customers Target marketing- a set of buyers sharing common needs ort characteristics that the company decides to serve Value proposition- the set of benefits or values it promises to deliver to customers to satisfy their needs MKT 300 Susan Fant 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; the focus is on continuous product improvements Selling concept- the idea that consumers will not buy enough of the firm’s products unless the firm undertakes a 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 consumer’ wants, the company’s requirements, consumers’ long run interests, and society’s long run interests Producti Marketi Societal Product Selling Marketi on concept concept ng ng concept concept concept Marketing mix- the set of tools (four Ps) the firm uses to implement its marketing strategy; product, price, promotion, and place Integrated marketing program- a comprehensive plan that communicates and delivers the intended value to chosen customers Customer relationship management- the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction Customer perceived value- the customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers Customer satisfaction- the extent to which a product’s perceived performance matches a buyer’s expectations Customer- perceived value Customer satisfaction • The difference between total • The extent to which customer perceived benefits perceived performance and customer cost matches a buyer’s expectations MKT 300 Susan Fant Customer engagement marketing- making the brand a meaningful part of consumer’s conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences, and community Customer generated marketing- brand exchanges created by consumers themselves- both invited and uninvited- by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers Partner relationship management- working closely with partners in other company departments and outside the company to jointly bring greater value to customers Customer lifetime value- the value of the entire stream of purchases a customer makes over a lifetime of patronage Share of customer- the portion of the customer’s purchasing that a company gets in its product categories Customer equity- the total combined customer lifetime values of all the company’s customers Digital and social media marketing- using digital marketing tools such as Web sites, social media, mobile apps and ads, online video, email, and blogs that engage consumers anywhere, at any time, via their digital devices MKT 300 Susan Fant Chapter 2: Company and Marketing Strategy Strategic planning- the process of developing and maintaining a strategic fit between the organization’s 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 Business portfolio- the collection of businesses and products that make up the company Portfolio analysis- the process by which management evaluates the products and businesses that make up the company Growth share matrix- a portfolio planning method that evaluates a company’s SBUs in terms of market growth rate and relative market share Product/market expansion grid- a portfolio planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification Market penetration- company growth by increasing sales of current products to current market segments without changing the product Market development- company growth by identifying and developing new market segments for current company products Product development- company growth by offering modified or new products to current market segments Diversification- company growth through starting up or acquiring businesses outside the company’s current products and markets MKT 300 Susan Fant Value chain- the series of internal departments that carry out value creating activities to design, produce, market, deliver, and support a firm’s products Value delivery network- the network made up of the company, its suppliers, its distributors, and, ultimately, its customers who partner with each other to improve the performance of the entire system Marketing strategy- the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships Market segment- dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs Market targeting- the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter Positioning- arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers Differentiation- actually differentiating the market offering to create superior customer value 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 SWOT analysis- an overall evaluation of the company’s strengths (S), weaknesses (W), opportunities (O), and threats (T) Internal External MKT 300 Susan Fant Marketing implementation- turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives (addresses who, where, when, and how) Marketing control- measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved Marketing return on investment (marketing ROI)- the net return from a marketing investment divided by the costs of the marketing investment (measurement of profits generated by investments in marketing activities Chapter 3: Analyzing the Marketing Environment Marketing environment- the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target consumers Microenvironment- the actors close to the company that affect its ability to serve its customers- the company, suppliers, marketing intermediaries, customer markets, competitors, and publics Macroenvironment- the larger societal forces that affect the microenvironment- demographic, economic, natural, technological, political, and cultural forces MKT 300 Susan Fant Marketing intermediaries- firms that help the company to promote, sell, and distribute its goods to final buyers Public- any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives Demography- the study of human population in terms of size, density, location, age, gender, race, occupation, and other statistics Demographic environment- involves people, and people make up markets Demographic trends- include changing age and family structures, geographic population shifts, educational characteristics, and population diversity Generational marketing- important in segmenting people by lifestyle or life state instead of age Baby boomers- the 78 million people born during the years following WWII and lasting until 1964 Generation X- the 49 million people born between 1965 and 1976 in the “birth dearth” following the baby boom Millennials (Generation Y)- the 83 million children of the baby boomers born between 1977 and 2000 Generation Z- people born after 2000 (although many analysts include people born after 1995) who make up the kids, tweens, and teens markets Economic environment- consists of factors that affect consumer purchasing power and spending patterns Natural environment- the physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities Environmental sustainability- developing strategies and practices that create a world economy that the planet can support indefinitely Technological environment- forces that create new technologies, creating new product and market opportunities Political environment- laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society Cultural environment- institutional and other forces that affect society’s basic values, perceptions, preferences, and behaviors Value marketing- offering financially cautious buyers greater value- the right combination of quality and service at a fair price Core beliefs and values- persistent and are passed on from parents to children and are reinforced by schools, churches, businesses, and government Secondary beliefs and values- more open to change and include people’s views of themselves, other, organizations, society, nature, and the universe MKT 300 Susan Fant Uncontrollable Proactive Reactive •forces in thept to •to affect forces in the •forces in thect to environment environment environment Chapter 4: Managing Marketing Information Big data- the huge and complex data sets generated by today’s sophisticated information generation, collection, storage, and analysis technologies Customer insights- fresh marketing information based understandings of customers and the marketplace that become the basis for creating customer value, engagement, and relationships Marketing information systems (MIS)- people and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights Internal databases- collections of consumers and market information obtained from data sources within the company network Competitive marketing intelligence- the systematic monitoring, collection, and analysis of publicly available information about consumers, competitors, and developments in the marketing environment Marketing research- the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization 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 Causal research- marketing research to test hypotheses about cause and effect relationships MKT 300 Susan Fant Secondary data- information that already exists somewhere, having been collected for another purpose Primary data- information collected for the specific purpose at hand 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 Focus group interviewing- personal interviewing that involves inviting 6-10 people to gather for a few hours with a trained interviewer to talk about a product, service, or organization Online marketing research- collecting primary date online through internet surveys, online focus groups, Web based experiments, or tracking of consumers’ online behavior Advantages •Low cost •Speed •Higher response rates •Good for hard to reach groups Online focus groups- gathering a small group of people online with a trained moderator to chat about a product, service, or organization and gain qualitative insights about consumer attitudes and behavior Behavior targeting- using online consumer tracking data to target advertisements and marketing offers to specific consumers Sample- a segment of the population selected for marketing research to represent the population as a whole Customer relationship management (CRM)- managing detailed information about individual customers and carefully managing customer touch points to maximize customer loyalty MKT 300 Susan Fant Service Web and Customer Sales force and social purchases contacts support media calls sites Credit and CRM Touch Satisfactio payment Marketing n surveys interaction research Points s studies Chapter 5: Consumer Markets and Buyer Behavior 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 Culture- the set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions Subculture- a group of people with shared value systems based on common life experiences and situations Cross cultural marketing- including ethnic themes and cross cultural perspectives within a brand’s mainstream marketing, appealing to consumer similarities across subcultural segments rather than differences Social class- relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors Group- two or more people who interact to accomplish individual or mutual goals Membership Groups Aspirational Groups Reference Groups •Groups with direct • Groups an •Groups that form a influence and to individual wishes to comparison or which a person belong to reference in forming belongs attitudes or behavior MKT 300 Susan Fant Word of mouth influence- the impact of the personal words and recommendations of trusted friends, family, associates, and other consumers on buying behavior Opinion leader- a person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others Online social networks- online social communications- blogs, social networking Web sites, and other online communities- where people socialize or exchange information and opinions Family- the most important consumer buying organization in society Role and status- defined by a person’s position in a group Occupation- affects the goods and services bought by consumers Lifestyle- a person’s pattern of living as expressed in his or her activities, interests, and opinions Personality- the unique psychological characteristics that distinguish a person or group Motive (drive)- a need that is sufficiently pressing to direct the person to seek satisfaction of the need Motivation research- qualitative research designed to probe consumers’ hidden, subconscious motivations Selective attention- the tendency for people to screen out most of the information to which they are exposed Selective distortion- the tendency for people to interpret information in a way that will support what they already believe Selective retention- the tendency to remember good points made about a brand they favor and forget good points about competing brands Perception- the process by which people select, organize, and interpret information to form a meaningful picture of the world Learning- changes in an individual’s behavior arising from experience Belief- a descriptive though that a person holds about something Attitude- a person’s consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea Complex buying behavior- consumer buying behavior in situations characterized by high consumer involvement in a purchase and significant perceived differences among brands MKT 300 Susan Fant Dissonance reducing buying behavior- consumer buying behavior in situations characterized by high involvement but few perceived differences among brands Habitual buying behavior- consumer buying behavior in situations characterized by low consumer involvement and few significant perceived brand differences Variety seeking buying behavior-consumer buying behavior in situations characterized by low consumer involvement but significant perceived brand differences Need recognition- the first stage of the buyer decision process, in which the consumer recognizes a problem or need Information search- the stage of the buyer decision process in which the consumer is motivated to search for more information Alternative evaluation- the stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set Purchase decision- the buyer’s decision about which brand to purchase Postpurchase behavior- the stage of the buyer decision process in which consumers take further action after purchase, based on their satisfaction or dissatisfaction Cognitive dissonance- buyer discomfort caused by postpurchase conflict New product- a good, service, or idea that is perceived by some potential customers as new Adoption process- the mental process through which an individual passes from first hearing about an innovation to final adoption AwarenIntereEvaluati Adoptio Trial ess st on n
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