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MKT 300- Test 1 Study Guide

by: Julie Knight

MKT 300- Test 1 Study Guide MKT 300

Marketplace > University of Alabama - Tuscaloosa > Business > MKT 300 > MKT 300 Test 1 Study Guide
Julie Knight
GPA 3.8

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About this Document

This is a study guide for the first test covering Chapters 1-5
Susan Fant
Study Guide
Marketing, MKT, MKT 300
50 ?




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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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