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MKT 301 - Exam 2 Study Guide

by: Rachel_Anderson

MKT 301 - Exam 2 Study Guide MKT 301

Marketplace > Clemson University > Marketing > MKT 301 > MKT 301 Exam 2 Study Guide
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Chapters 6-9, 10 will be covered in Class tomorrow morning & I'll post my notes for that Chapter!
Intro to Marketing
James Gaubert
Study Guide
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This 12 page Study Guide was uploaded by Rachel_Anderson on Monday February 15, 2016. The Study Guide belongs to MKT 301 at Clemson University taught by James Gaubert in Spring 2016. Since its upload, it has received 94 views. For similar materials see Intro to Marketing in Marketing at Clemson University.


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Date Created: 02/15/16
Exam 2 Chapter 6 - Consumer Behavior Consumer Decision Making Process ◦ Need Recognition - need people to recognize that it exists ‣ functional needs - slippers ‣ psychological needs - loubitons ◦ Search for information ‣ internal search for information • rely on memory (get hungry, go to fridge, get food/remember that there is food in the fridge) ‣ external search for information • advertisements, apps, articles, friends, etc. Factors Affecting Consumer's Search Process ◦ Perceived Cost ‣ what is the cost? ‣ is it available nearby? ◦ Perceived Benefits Locus of Control ◦ internal - I'm empowered, i will make an intelligent choice by myself/more search activities ◦ external - ill make my choice but if i go to the store and its not available then its out of my control/fate, external factors Actual or Perceived Risk ◦ Performance Risk ‣ mobile device for example: could break, battery life might be less/more, will it perform how i would like it to, will i have to relearn it, etc. ◦ Financial Risk ‣ does the cost benefit me? ◦ Social Risk ‣ flip phones rather than iPhone ◦ Physiological Risk ‣ "don't put your phone under your pillow, radiation or blow up" ◦ Psychological Risk ‣ if i don't know what I'm doing with my phone ill look stupid Consumer Decision Process Evaluation of Alternatives ◦ Attribute Sets ‣ Universal • all of them ◦ all car brands ‣ Retrieval • ones we can name off of memory • sources that we know ◦ nissan/ford ‣ Evoked • basing it on the criteria that you can use ◦ lambo ◦ Evaluate Criteria ◦ Determinant Criteria ◦ Consumer Decision Rules ‣ if consumer makes a choice using a compensatory decision rules which cereal will they choose? • Cheerios ‣ if the consumer makes a decision based only on natural or organic claims, which will cereal they choose? • Kashi The Consumer Decision Process Purchase & Consumption ◦ Increase conversion rate ‣ want to convert people who go to the website, to go to the store. • same with how many will look at actually purchasing ‣ reduce real or virtual abandoned cars • sales, to push you into the store ‣ merchandise in sock • to make sure inventory is in stock in the store & online ‣ reduce the actual wait time • offering free shipping etc Step 5: Post-Purchase: ◦ Customer satisfaction ‣ what did you promise them & did you fulfill? • if you didn't then that is now a good customer satisfaction ◦ Customer loyalty ◦ (Cognitive) Dissonance ‣ not good, psychological term ‣ when you recently purchase something & something tells you "should I have actually bought that?" • can return it, can give a warranty - to reduce or minimize dissonance with a customer Factors Influencing the Consumer Decision Process ◦ Consumer Decision Process ‣ Marketing mix • 4Ps ◦ product ◦ place ◦ price ◦ promotion ‣ Psychological factors • motives ◦ different orders of needs for products ‣ bodily needs - food/water (lowest level) ‣ safety - shelter/insureance ‣ love ‣ esteem ‣ self-actualization (highest level) "be all that you can be" • define being a better you by getting nicer house, car etc • attitudes ◦ tri-component aka ABC model ‣ Affective • a feeling, positive or negative/emotional • thoughts about an ad, etc. ‣ Behavioral • Do we make that purchase or not? ‣ Cognitive • functional needs, what are our thoughts? • perceptions ‣ Dozen eggs experiment: • Prime us/we learned: cracked a few eggs • Perception: went for the third & threw the rest of them at the class & they were scared but they weren't real • learning ◦ affects both attitudes & perceptions ◦ using the same detergent our parents used • lifestyle ◦ involved decisions in spending time & money Social Factors: ◦ Groups ‣ family ‣ friends ‣ coworkers ‣ famous people ◦ Provide ‣ info ‣ rewards ‣ self-esteem (maslov) ◦ Culture: ‣ whatever products that are available worldwide, are different • when people study abroad they notice a difference in culture quickly Situational Factors ◦ Purchase ◦ Shopping Involvement & Consumer Buying Decisions ◦ Superbowl: ‣ some people will tune out during a commercial & get food ‣ others will watch the ads to see hcihc they like the best ◦ High Involvement ‣ greater attention ‣ deeper processing ◦ Low ‣ less attention ‣ peripheral processing Types of Buying Decisions ◦ Extended ◦ Limited Problem solving Chapter 7 - Business-to-Business Marketing Business Products ◦ are used to manufacture other products ◦ become part of another product ◦ aid the normal operations of an organization ◦ are acquired for resale without change in form B2B Markets (probably on exam) ◦ Resellers ◦ Institutions ◦ Government ◦ Manufacturers/Service providers Manufacturers and Service Providers ◦ B2B type of transaction ◦ buy raw materials, components or parts ◦ manufacture their own goods Resellers ◦ Manufacturer ◦ Reseller ◦ Retailer Institutions to Know ◦ Schools ◦ Museums ◦ Religious Organizations ‣ TIP FOR TEST: • government is not an institution market Government ◦ US Gov spends $2.1 trillion procuring goods ‣ paperwork process ◦ State and local gov's also make significant purchases ◦ Firms specialize in selling to government B2B Buying Process ◦ Need recognition ◦ Product specification ◦ RFP process ◦ Proposal analysis and supplier selection ◦ Order specification ◦ Vendor/performance assessment using metrics Stage 1: Need Recognition ◦ Can be generated: ‣ Internally: "My HD is full, I need an External HD" ‣ Externally: Determined we needed to "buy new computers bc 'our competitors' have new computers" ◦ Sources for recognizing new needs ‣ suppliers ‣ salespeople ‣ competitors Stage 2: Product Specifications ◦ Used by Suppliers to develop proposals ◦ Can be done collaboratively with suppliers ‣ With Contractors, might have a contract talking about how they have to: • finish "core campus" by August or else they owe a lot of money to Clemson U. • bus their people in Stage 3: RFP Process ◦ Request for Proposal Stage 4: Proposal Analysis, Vendor Negotiation & Selection ◦ Often several vendors are negotiating against each other ◦ considerations other than price play a role in a final selection ◦ price plays a large role in decision process ‣ not so much when it comes to a corporate decision ‣ price will not be the only factor bc some items that cost more sometimes last longer (CAT machines) Stage 5: Order Specification ◦ Firm places the order ◦ The exact details of the purchase are specified ◦ All terms detailed including payment Step 6: Vendor Analysis ◦ Every customer will evaluate a vendor after they perform ‣ yes or no we'd use their services again The Buying Center ◦ Buying Center (one person can play multiple roles) ‣ Initiator • Teacher says she wants new seats in Newman 104 ‣ Influencer • Billy (head of facilities) decides he wants to order them - goes to Sally for purchasing chairs ‣ Buyer • Sally is the buyer - handling all the new purchases ‣ User • Us, the students, who will use them throughout the semester ‣ Gatekeeper • Someone to slow down the purchase (13:14 to understand better) Organizational Culture ◦ Buying culture ‣ Democratic • When graphic designers take a vote for MAC or PC ◦ Majority votes MAC - graphic designers get MACs bc of the majority vote ‣ Consultative • take into account some peoples opinions but its ultimately going to be one way • a little sweeter than autocratic ‣ Consensus • everyone agrees or disagrees ◦ like a jury ‣ Autocratic • Doesn't take into account anyones opinion - CEO just chooses • "this is how it is" type of situation • Sidam Hussein - "I'm gonna chop your head off if you do do what i say" Buying Situations ◦ New Buy ‣ purchasing for the first time ‣ likely to be quite involved ‣ the buying center will probably use al six steps in buying process • long process if you are talking about it for the very first time ◦ Modified Rebuy ‣ purchasing a similar product but changing specifications ‣ current vendors have an advantage • still doing at a quicker pace since you have experience ◦ Straight Rebuys ‣ Buying additional units or products that have been previously purchased ‣ Most B2B purchases fall into this category Chapter 8 - Global Marketing Why American Businesses Fail in China? ◦ They don't value real estate as much as we do ◦ Labor is very inexpensive, can pay for a lot of people to do things for them for a small amt of $ ◦ Culture - needing to know what the culture of the area are inclined to purchase or be attracted to ‣ Examples: • "House of Barbie" failed because: ◦ An American Icon, not Chinese • Ebay ◦ Chinese culture likes to have the personal connection when they purchase things ◦ Tall = China's Ebay because they use video chatting rather than buying from eBay and never caring about the person afterwords/talking through a phone just about the product/email etc. • Google ◦ China wanted Google to censor - Google said no ◦ Google tried to work with them ◦ "Played by their rules" ◦ Shut down again ◦ Google just doesn't think the same way Chinese censorship does/care Rewards of Global Marketing ◦ Having a global vision means... ‣ Recognizing & reacting to international marketing opportunities ‣ Using effective global marketing strategies ‣ Being aware of threats from foreign competitors Globalization - we are very interdependent now (USA/other countries combined) ◦ The creation of global economy ◦ The creation of a global culture ◦ The concentration of power in a smaller number of hands and/or nations. The erasure of the borders that divide us. Examples of Global Marketing Gone Wrong (More) ◦ Gerber baby food was sold in China ‣ Gerber baby is on the label ‣ China puts the ingredients/food you're buying on the label • Chinese people thought Americans put dead babies in food so they wouldn't purchase Gerber baby food General Agreement on Tariffs & Trade (GATT) ◦ World Trade Organization (WTO) ◦ International Monetary Fund (IMF) ‣ creating a global currency (probably won't happen) ◦ World Bank Group ‣ Loans money to companies to get infrastructure in place in other countries to begin building businesses Assessing Global Markets ◦ Economic Analysis - General Economic Environment • Gross Domestic Product - how successful a country is • Gross National Income - how successful a country is • Purchasing Power parity - • Human development index - education, if you need water you won't buy nike shoes etc. Examples of Global Marketing Gone Well ◦ Kit Kat in Japan ‣ K-word in japan with "Kat" means "Good luck" ‣ Japan liked Kit Kat • used for good luck to students before exams • created many different flavors Big Mac Index & Burgernomics ◦ "Burgernomics" is based on the theory of purchasing power parity (PPP) - a dollar should buy the same amount in all countries. ◦ Exchange rates bw two countries should equalize prices prices of an identical good ◦ Finish filling out slide**** • Places that have the most expensive Big Mac ◦ Norway ($6.81), Sweeden, Brazil, England ◦ India, China, Malaysia, Hong Kong, Ukraine, South Africa Evaluating Market Size ◦ Want to make sure you're somewhere where population is growing Evaluating Real Income ◦ Firms can make adjustments to an existing product of change the price to meet the unique needs of a particular country market. Analyzing Infrastructure & Technological Capabilities ◦ Transportation - does the country you want to distribute to have roads? ◦ Communication - do they have wifi, internet to communicate etc? ◦ Distribution Channel - do they have a distribution warehouse? ◦ Commerce - ‣ Infrastructure is key, if you don't have any of these doing business is 5x harder Analyzing Gov't Actions ◦ Quota ‣ Max limit ‣ Reduces availability of imported good ‣ Protects local countries own businesses by using a limit ◦ Exchange Control ‣ Exchange Rate • can exchange currency ‣ Countertrade ◦ Trade Agreement ‣ Important bc: • make it easier to trade • lower trade barriers • 27 Member countries of the EU: ◦ • Know NAFTA: ◦ Agreement b/w US, Canada, Mexico • Know CAFTA: ◦ US, Costa Rica, Domican Repub, El Sal, Guatemala, Honduras, Nica. • Know others on chart from slide*** ◦ Tariff ‣ Tax ‣ Artificially raises prices ‣ Lowers Demand Analyzing Sociocultural Factors ◦ Power Distance ‣ having a president in the US - someone running the country but not constantly telling us what to do ‣ vs North Koreas Communist government telling them what to do every two seconds ◦ Uncertainty avoidance ‣ trying to take care of people ‣ catering to the group, looking out for them/doing what they think will help their guests fit in ◦ Individualism ‣ Having our own opinions, being our own person ◦ Masculinity ‣ men are still paid more than women ◦ Time Orientation ‣ Do we look down the road or look at things now? • US = We want it now, I'll deal with things later • China = looks forward in the long term when it comes to decisions Choosing a Global Entry Strategy ◦ Know for Exam!! ‣ Export* Most likely to be on exam ‣ Franchising ‣ Strategic Alliance • an agreement on paper to work together, no money will exchange hands • Ex: Nokia has agreement w/google to use the OS on their phones ‣ Joint Venture • both have invested financial interests in whats happening ‣ Direct Investment* Most likely to be on exam The Global Marketing Mix • Sell product/service you sell now • Sell product/service similar to product you currently sell but minor make minor changes • Sell brand new product or service TGMM: Pricing Strategies ◦ Price ‣ Tariffs ‣ Quotas ‣ Anti-dumping policies ‣ Economic conditions ‣ Competitive factors TGMM: Global Distribution Strategies ◦ Some global channels are very long & complex ◦ Consumer shop local small local stores ◦ Suppliers must be creative in delivering to these outlets TGMM: Global Comm Strategies ◦ Literacy levels vary by country ‣ Coke, Soda, Pop etc ◦ Firms choose whether to adapt to language differences ◦ Cultural and religious differences also matter Chapter 9 - Segmentation, Targeting & Positioning The Segmentation, Targeting & Positioning Process ◦ Segmentation ‣ Step 1: Establish Overall Strategy or Objectives • Check yourself • Derived from mission & current state ‣ Step 2: Segmentation Methods • Geographic Segmentation ‣ Dominant car in Brussels: • Not trucks, more ford fiestas- mini hatchbacks ◦ living in an urban city, only used for small errands & parking perks (the smaller the better) ‣ The south when it comes to snow: • Don't invest in snowplows bc snow rarely sticks unlike the NE • Demographic Segmentation ◦ Most common segmentation strategy ‣ Age, income, gender etc. • Psychographic Segmentation ◦ a reflection of peoples (despite their demographics) lifestyle, what their interests are etc. ‣ Psychographic ‣ Self-values ‣ Self-concept ‣ Lifestyles • VALS Framework ◦ Take the survey sometime ◦ Shows basic contrasts ◦ 8 Categories • Geodemographic Segmentation ◦ ‣ breaks down by geography & demographics inside it • Benefit Segmentation • Behavioral Segmentation ◦ Occasion segmentation ‣ How often do they buy? ◦ Loyalty segementation ‣ Do they only buy with this brand? ‣ Step 3: Evaluate Segment Attractiveness • Identifiable ◦ can we locate them? ‣ if we cant identify them how do we know what they want? • Substantial ◦ too small & it is insignificant ◦ too big & it might need its own store • Reachable ◦ Know the product exists • Responsive • Profitable ◦ Homeowners vs Businesses ‣ Step 4: Selecting a Target Market • Segmentation Strategy ◦ Targeting Strategies ‣ Differentiated • Services ‣ Concentrated ‣ Micro marketing or One-to-One ‣ Undifferentiated or Mass Marketing • Most businesses ◦ Craft did it with Oreo, for other countries ‣ Step 5: Develop Positioning Strategy • Positioning Methods - making sure you're first by 1 or more of the following o say why you're better than your competitors ◦ Value ‣ First clue proposition ‣ Customers unmet needs ‣ Firms benefits that are not required - educate customer or redesign product ‣ Key benefits where firm & competitor require • carefully monitor performance relative to competitor on these benefits ‣ Competitor’s value proposition - monitor and imitate if needed. ‣ Benefits both firms provide that customers do not appear to need. ‣ Competitor benefits that are not required. ◦ Salient Attributes ◦ Symbol ◦ Competition ‣ Don't want any overlap • Perceptual Maps ◦ find the most relevant dimensions & map out where the relevant brands are ◦ Examples: ‣ Contemporary vs Traditional Cars & Low Price vs High price of Cars • If Kia wants part of Buick's Target market, this map can tell them how to do that. Ex, having more contemporary features available ‣ Beverage Products • Strong Taste vs Light Taste • Fun (Unhealthy) vs Healthy


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