Exam 1 Study Guide MKT390 ASU
Exam 1 Study Guide MKT390 ASU MKT 390
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This 13 page Study Guide was uploaded by Lindsey Tillett on Sunday May 29, 2016. The Study Guide belongs to MKT 390 at Arizona State University taught by Scott Cowley in Summer 2016. Since its upload, it has received 31 views. For similar materials see Essentials of Marketing in Marketing at Arizona State University.
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Date Created: 05/29/16
MKT 390 Exam 1 Study Guide Modules 1-4 Module 1: Marketing- organizational function and collection of processes designed to plan for, create, communicate and deliver value to customers and to build effective customer relationships in ways that benefit the organization and its stakeholders. Marketing Mix definitions- product, price, promotion, place (distribution) Concept of Exchange- at least 2 parties, something of value, communication and delivery, freedom to accept or reject, desire to deal with the other party Demographics vs. Psychographics- similarities vs. differences, demographics are necessary but not always sufficient to make connections Marketing Concept- a consumer-oriented philosophy that suggests that satisfaction of consumer needs provides the focus for product development and marketing strategy to enable the firm to meet its own goals. Value-> customer relationships-> customer loyalty Marketing Management Philosophies- Market Orientation- focus on satisfying customer needs and wants Module 2: Marketing Environment- Macro environment: Economy, Political, Technology, Social Micro: Consumers, Competitors, and Suppliers Social Changes- Values- achievement/success, efficiency/convenience, material comfort, individualism, freedom, youthfulness, fitness and health Changing trends in households- delayed marriage, cohabitation, dual career, families, divorce, and smaller families. Component households- practice of choosing foods and services that meets ones diverse needs and interests rather than conforming to a single, traditional lifestyle Changing roles of women-63% women in the work force, female population growing faster, longer life expectancy o Competition- o Generic competition- anything that competes for same consumer disposable dollars o Form competition- product that serves the same purpose example: transportation o Industry competition- competitors who make the same products or class of products but at very different price points o Brand competition- offer similar products to the same customers at similar prices o Consumers Porter’s Five Forces STP Segmenting- divides market based on needs/benefits, demographics, lifestyles, and behavioral measures Demographic segmentation- gender, age, income, family size, family life cycle, occupation, ethnicity Psychographic segmentation- values, lifestyle, personality, activities, interests, opinions… AIO Behavioral segmentation- amount of product bought or consumed 20% 80% rule Needs segmentation- process of grouping customers into a market according to the benefits they seek from the product Targeting- select most appropriate markets Positioning- placement of a product or service offering in the minds of selected target market Unique selling proposition- why should they buy from me? What does the brand stand for? For whom am I trying to serve? o Bases of Segmentation- markets have a variety of product needs and preferences, marketers can better define customers needs, decision makers can define objectives and allocate resources more accurately, one word; competitive advantage Targeting Strategies- Undifferentiated- views the market as one big market with no segments and requires a single marketing mix Differentiated- 2 or more defined segments and develops a distinct marketing mix for each Niche- 1 segment of a market for targeting marketing efforts Micro- 1-to-1 marketing, individualized, increased customer loyalties Positioning Perceptual Maps- displaying or graphing, in two or more dimensions, the location of products, brand or groups of products in customers’ minds Repositioning- changing consumers’ perceptions of a brand in relation to competing brands Weber’s Law- stronger the initial stimulus, the greater the added intensity needed to perceive a difference Strategic Market Plan- managerial process of creating and maintaining a fit between the organization’s objectives and resources and evolving market opportunities Provides basic direction, determines general product and market scope, long range and broad in scope o SWOT analysis- or situational analysis, an element of the strategic market plan o BCG Matrix o Market Strategy Focus Competitive Advantage- set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition o Types- cost, product/service differentiation, niche o Positional Strategies- market leader, market challenger, market follower, market nicher Strategic Opportunity Matrix Consolidation Strategies- retrenchment: Coca-Cola severely reduces the advertising budget and distribution for vanilla coke pruning: home depot discontinues its EXPO stores divesting: eBay sells off Skype Balanced Scorecard Sections of a Marketing Plan- Executive summary- written with senior leadership as primary audience… goals, recommendations Company description, purpose, goals- historical info on business and products and the company’s core competencies and reason for existence Marketing situation- customers, competitors, product portfolio, distribution channels, marketing environment Forecasting- anticipated outcome if marketing objectives are met Marketing strategy- target market, positioning, marketing mix Measurement and control- how to monitor progress toward meeting objectives… financial factors, non-financial factors Consumer Culture- sum total of learned beliefs, values, and customs that serve to direct the consumer behavior of members of a particular society o Environmental consumers- lohas- 19%- lifestyles of heal and sustainability- dedicated to the health of themselves and the plan… ultra environmentalist Naturalists- 19%- buy natural and organic products but to not go to the same extreme as LOHAS drifters- 25%- mean well but are price sensitive and trendy with regard too the products they buy Conventionalists- 19% practical and do not have an active “green” lifestyle. They recycle and conserve energy though. Unconcerned- 17% do not make protecting the environment or improving society a priority o Acculturation/enculturation/reverse acculturation o Regulatory bodies- CPSC- consumer product safety commission- product safety FCC- federal communications commission- broadcast advertising Icc- interstate commerce commission- distribution channels Epa- environmental protection agency- product manufacturing FDA- food and drug administration= product safety o Corporate social responsibilityconcern for how a company’s actions might affect the interest of others o Sustainability- idea that socially responsible companies will outperform their peers by focusing on the worlds social problems and viewing them as opportunities to build profits and help the world at the same time o Ethical Development levels More childlike preconventional morality Conventional morality More Mature postconventional morality Business-to-business Marketing o Types of business demand Derived- Inelastic- Joint- Fluctuating- o Business vs. Consumer markets o Buying situations Straight rebuy- original product is reordered (less involvement) Modified rebuy- changes are desired in the original product New task- product is purchased for the first time (more involvement) Global market standardization Entering the global marketplace – export, licensing, contract manufacturing, joint venture, direct investment Module 3: 5-Step Decision-Making Process 1) Need recognition 2) Information search 3) Evaluation of alternatives 4) Purchase 5) Post purchase behavior o Consumer decision strategies – make sure you can tell me which choice is made with each of the three different decision models, given a chart similar to our Four Vacation Choice chart o Cognitive Dissonance- discomfort caused by a purchase decision- low satisfaction, product returns Factors Influencing Purchase o Social- family, culture, gender roles, social class, group, global, subculture o Reference groups- direct- primary (fam, friends, co-workers), secondary (clubs, professional and religious groups) Indirect- aspirational and non-aspirational o Personal influences – o Lifestyle- external characteristics- activities, interests, opinions o Personality- internal characteristics; dogmatism? Self-monitoring? Need for cognition? o Innovativeness? Materialism? Compulsive consumption? o Psychological – motivation, attitudes/beliefs, perception, learning o Situational- context, digital environment, time, purchase environment Theory of Reasoned Action o Beliefs- represent the knowledge a consumer has about objects, their attributes and their benefits provided Attitudes- consistent response toward an object, amount of affect or feeling for or against stimulus Cognitive- guide our thoughts Affective- influence our feelings Conative- affects our actions o Central-route- high motivation Peripheral-route processing- low motivation o Internal/external components o Formulation of TORA (BI = Aact + SN) Act= attitude toward the act Sn- influence of others opinions (subjective norms) B= behavior BI= intentions to behave Consumer Insight- consumer insight is perceived meanings of data collected from the study of consumer behavior Marketing research- the acquisition and analysis of information used to identify and define marketing opportunities that connect consumers to marketers Marketing research process 1. Define the problem 2. Design the research 3. Conduct the research 4. Analyze the data 5. Address the problem o Secondary vs. Primary data Secondary- info previously collected… census data, Internet sources Primary- info collected first hand specific to your purpose… surveys, interviews, and experiments o Exploratory- why do consumers purchase brand x? o Descriptive- how often do consumers shop for groceries and where? o Explanatory- what happens if we increase price? o Measurement scales o Closed-ended questions- dichotomous- t/f or yes/no, multiple choice, scaled response- likert scale, semantic differential scale, importance and rating scales o Sampling plans o Reliability/validity/representativeness o Marketing information systems o BDI and CDI – here are sample problems that will be similar to those on the exam (remember, no calculators as this isn’t a math test): o Q1. Let's say that there are 50 finance majors in my class of 250 students. I've found that my class drinks 100 bottles of Fiji water a week and that 40 of those bottles are consumed by finance majors. What's the BDI for Fiji and finance majors? o Q2. There are 60,000 undergrads at ASU, of these 15,000 are seniors. These 60,000 students purchased 100,000 boxes of cereal last month and 25,000 boxes of cereal were purchased by seniors. What's the CDI (same thing as BDI, just for a product category instead of a brand) for cereal purchased by seniors? o The answers are on the last page – don’t look until you’ve completed the problems! Module 4: Branding, brand elements o Elements of Brands- brand names, slogans, websites, characters, logos, color scheme Choice criteria- memorable, likability, meaningful, transferable, adaptable, protectable o Role of brands- identify the maker, create barriers to entry, serve as competitive advantage, signify quality Brand equity o Brand equity benefits (consumers)- search cost reducer, signal of quality, risk reducer, symbolic device o Brand equity benefits (companies)- source of competitive advantage, predictability and security of demand, barriers to entry, financial returns o Intangible value- name vs. assets o Brand equity models (especially BAV and Interbrand models) brand asset valuator: differentiation, relevance, esteem, knowledge Brand personality o Branding strategies o Functions of packaging- contain and protect, promote, facilitate storage, use and convenience, facilitate recycling o Labeling- persuasive: focuses on promo theme, consumer info is secondary o Informational labeling- helps make proper selections, lowers cognitive dissonance, includes use/care BDI/CDI Answers: Q1. BDI = (percent this group consumes/percent of the population that this group is) x 100. Numerator is the percent consumes, denominator is the percent the group represents of the entire population. 50 Finance majors out of 250 students puts finance majors at 20% of the students. They consume 40/100, so they consume 40% of the Fiji water in my class. (40% of all consumption/20% of the population) x 100 = 200. The BDI for finance majors at Fiji water is 200, which is quite high. This means finance majors drink twice the amount of Fiji water that they are expected to drink. Q2. 15,000 Seniors out of 60,000 students, puts seniors at 25% of the undergrads. They consume 25,000 out of 100,000 total consumed boxes of cereal which is also 25%. (25% actual consumption / 25% of the population) x 100 puts the CDI of Seniors and Cereal boxes at exactly 100. This means that seniors consume exactly the expected amount of cereal boxes.
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