MKTG 350 Exam 1 study guide
MKTG 350 Exam 1 study guide MKTG 350 - 001
Popular in Principles of Marketing
Popular in Marketing
MKTG 351 - 001
verified elite notetaker
This 7 page Study Guide was uploaded by Tulsi on Friday September 16, 2016. The Study Guide belongs to MKTG 350 - 001 at University of South Carolina taught by Courtney R Worsham (P) in Fall 2016. Since its upload, it has received 204 views. For similar materials see Principles of Marketing in Marketing at University of South Carolina.
Reviews for MKTG 350 Exam 1 study guide
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 09/16/16
MKTG 350 Test 1 Study Guide Chapter 1 Marketing: the activity, set of instructions, and processes for creating, capturing, communication, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Core aspects of marketing 1) Satisfying needs and wants 2) Entails an exchange 3) 4 Ps (product, price, place, promotion) 4) Can be B2B, B2C, and C2C 5) Many settings: society, consumers, supply chain, employees 6) Help creates value Components of marketing mix: Product, Price, Place, Promotion Product: creates value with good/service Price: captures value, what a buyer gives up for good (time, money) Place: delivering value (supply chain, distribution) Promotion: communicating value (persuade buyers) Components of market: group of customers with common needs to satisfy and problems to solve who have the ability AND authority to buy products Supply chain management: group of firms that make and deliver a given set of goods and services Value: reflects the relationship of benefits to cost Value co-creation: customers act as collaborators to create the product/service (customized Nike shoes, smartphone accessories, monograms) Production oriented: Henry Ford; firms focused on production and believed a good product would sell itself Sales oriented Great Depression/WWII; consumers buying less so firms focused on selling and advertising Marketing oriented: After WWII, firms focused on what consumers wanted before designing product Value-based: today; transcended production/selling orientation; customers seek a fair return of value on the goods/services purchased; all types of price levels (luxury v store brand) Value driven companies: most companies today are value driven and focus on giving consumers “the bang for their buck” consumers recognize what they are paying for and are willing to either pay the premium or not How to improve value: sharing information, balancing costs and benefits, build relationships with customers, connect with consumers using social media Customer relationship management (CRM): identifying and building loyalty among most valued customers Chapter 2 3 components of marketing strategy: 1) Identify a target market 2) Develop a marketing mix that satisfies needs 3) Determine a basis upon which firm plans to build sustainable, competitive advantage Sustainable competitive advantage: advantage over the competition that isn't easily copied and can be maintained over a long period of time Target market: a particular group of consumers that the product/service is aimed at 4 macro strategies (for sustainable competitive adv) Customer excellence: retaining loyal customers and provide customer service Operational excellence: efficient operations and supply chain management Product excellence: products with high perceived value and effective branding and positioning Location excellence: good physical location and social media presence Growth strategies Market Penetration -uses existing marketing mix and existing customers Market Development-existing marketing mix and new customers Product Development-new product or service and current target market Diversification-new product or service and new market segment 3 phases of strategic marketing process Planning: (1) define vision of business and (2) evaluate situation with SWOT Implementing: (3) evaluate opportunities with STP, (4) implement marketing mix (4Ps) Controlling: (5) evaluate market performance of strategy SWOT: assess internal and external environment for positives and negatives Strength Weakness Opportunity Threat Segmentation, Targeting and Positioning Segmentation: divide market into segments/subgroups (small, homogeneous) Targeting: evaluate segments and pursue them with strategy Positioning: define marketing mix so consumers understand what product does in comparison to competition BCG portfolio analysis Stars: high market share/growth rate; need heavy resource investment (iPhone) Cash cows: low growth/high market share; have excess resources to spin off (iPod) As growth slows, stars can migrate to cash cows ? marks: high growth rate, low market share; managerially intensive, requires significant resources to maintain (iPad) Dogs: low growth/low market share: should be phased out unless complements other things or for competition (iMac) Chapter 4 Scope of marketing ethics Business ethics: moral or ethical dilemmas in a business setting Marketing ethics: examines ethical problems specific to marketing Deceptive advertising: representation, omission, act, or practice that can mislead consumers Corporate social responsibility: actions taken by company to address ethical, environmental, and social impacts of its business operations and concerns of stakeholders (charities, nonprofits, support or minority groups, responsible practices) Employees: safe working environment Marketplace: following footsteps of other firms’ CSR efforts Sustainability: benefit environment Customers: respect privacy, etc Society: improve community and physical environment Integrating ethics into marketing strategy – know all 3 areas and recognize ethics examples from each area Planning: include ethical statements in mission statement Implementation: consider how implementing marketing mix is affected by ethics Control: evaluate actions based on ethical perspective, react to change Ethical decision metric (6 tests) The Publicity Test: would you want action displayed on front page of newspaper The Moral Mentor Test: Would the person I admire engage in this activity? The Admired Observer Test: Would I want the person I admire seeing me do this? The Transparency Test: Could I give a clear explanation for my doings and motives that would satisfy a moral judge? The Person in the Mirror Test: Will I able to look myself in the eye and respect myself? The Golden Rule Test: Would I like to be on the receiving end of this action and its consequences? Chapter 5 Customer is at center of mktg. environment: the consumer is always at the center of all marketing efforts. Therefore all business processes should be conducted from the consumer’s point of view. Consumers can be influenced by immediate actions of company, competitors, partners, etc. 3 components of immediate environment Company capabilities: satisfying consumer needs that match core competencies Competition: need to be cognizant of competitors’ strengths and weakness, be proactive Corporate Partners: few firms operate in isolation so partners need to be aware of consumer interactions as well 6 macro-environmental factors Culture: shared meanings, beliefs, morals, values, and customs of a group of people Country culture: aspects of culture shared by a whole country Regional culture: aspects shared by a specific region Demographics: Characteristics of human populations and segments, used to identify markets Age, gender, income, generational cohorts, education Social: Health and wellness, greener consumers, privacy concerns Technology: has led to new products, forms of communication, retail channels Economics: Foreign currency fluctuations, interest rates, inflation affect ability to market Political/Legal: Legislation affecting practices of firms Generational cohorts: group of people in same age generation with similar purchase behaviors Gen Z (2001-current) digital natives Gen Y (1977-2000) millennials, children of baby boomers Gen X (1965-1976) Baby Boomers (1946-1964) after WWII Gender and gender roles: a shift in gender roles needs to be accounted for by marketing strategies Ethnicity – African American, Hispanic, Asian By 2050, minorities will represent 50% of the population Greener consumers: consumers wishing to purchase environmentally friendly, sustainable products Time poverty: high disposable income but low amount of leisure time Currency exchange rate, interest rates, inflation Inflation: persistent increase in price of goods (reduces purchasing power of income) Interest rate: the cost of borrowing money (save more when rates are higher) Exchange rate: price of foreign currency in relation to dollar, affects tourism/imports/exports Political legal environment: FDA, FTC, NAFTA, Sherman Anti-trust Act, Robinson-Patman Act Political legal environment is comprised of political parties, gov’t organization, legislation, and laws FDA: Food and Drug Administration: no fraudulently manufactured/labeled food/drug products FTC: Federal Trade Commission: regulates competitive practices, makes sure firms are fair to consumers NAFTA: North American Free Trade Agreement: Canada, Mexico, USA Sherman Antitrust: trusts to eliminate competition are not allowed Robinson Patman: prohibits price discrimination (different prices to different customers) Chapter 6 5 steps in consumer decision making process 1) Need recognition: functional vs psychological 2) Information search: internal and external search 3) Alternative evaluation: 4) Purchase 5) Post purchase Psychological and functional needs Psychological: pertain to personal gratification Functional: pertain to performance of product Internal and external search Internal: buyer examines own memory for product knowledge, gained from experience External: seeks info outside personal knowledge Factors affecting search: perceived benefit vs cost of search, locus of control, perceived/actual risk Locus of control Internal: believe that they have control over decision, more search activities External: believe outside factors control outcome, less searching Perceived or actual risk Performance risk-failure of product performance Financial risk-cost of purchase and upkeep Social risk-how others will view the purchase Physiological/safety risk-fear of harm occurring due to improper product performance Psychological risk-how people feel about the purchase Universal/retrieval/evoked set Universal: all possible choices for product Retrieval: brands readily thought of from own memory Evoked: set of brands we would consider purchasing Compensatory and non-compensatory decision rules Compensatory: when making decision, good outweighs bad of the product to buy it Non-compensatory: choose based on 1 attribute and disregard others Heuristics: practical method for problem solving, using experience to learn and improve Family/reference group/cultural influence Family: what will the family use daily? What types of purchasing patterns are influenced by other family members? Reference group: one or more persons that an individual uses as a basis for comparison of beliefs, feelings, and behaviors that the consumer would like to emulate (family, friends, coworkers, celebs) Culture: shared meanings and beliefs can affect what you buy Attitude: a person’s enduring evaluation of his feelings about and behavioral tendencies towards an object or idea Has behavioral (actions), affective (feelings), and cognitive (beliefs) components Can be influenced by communication, advertisements, free samples, demonstrations Maslow’s Hierarchy of Needs 5 levels of needs: physiological, safety, love, esteem, self-actualization Conversion rate: how often intention to buy is converted to a purchase Reduce abandoned carts, keep merchandise in stock, reduce wait time Cognitive dissonance: buyer’s remorse after purchasing, question oneself after buying Satisfaction and dissatisfaction: when customer is either happy or unhappy with product functions Evaluative criteria and determinant attributes Evaluative: important attributes about a product are evaluated by consumer Determinant: features important to a buyer that competing brands differ upon (what makes this brand different or special) Social factors influencing decision process Family, reference groups, culture 6 shopping situational factors influencing decision process Store atmosphere: music, lighting, scent Crowding: long lines, too many people Demonstrations: in store demos can convince people to buy Salespeople: well trained, friendly Promotions: BOGO, clearance, sales, free gift Packaging: need item to stand out on the shelf Types of risk Performance risk-failure of product performance Financial risk-cost of purchase and upkeep Social risk-how others will view the purchase Physiological/safety risk-fear of harm occurring due to improper product performance Psychological risk-how people feel about the purchase Involvement: consumer’s degree of interest in product or service High involvement: direct route, greater attention, deeper processing, develops strong attitudes and purchase intentions Low involvement: peripheral route, less attention, peripheral processing, weak attitudes and increased use of cues Extended, limited, and habitual problem solving Extended: buying process begins when consumer recognizes need, spends time and analyzes alternatives Limited: purchase decision calls for moderate amount of time, have had previous experience with buying this product Habitual: little conscious effort when buying, have bought it many times before 6 principles of persuasion – from lecture only Reciprocity: offer something first, offer something exclusive Commitment and consistency: earn customer loyalty Social proof: celebrity endorsements Liking: friendly salespeople more likely to make sales Authority: give off the sense that you are the expert in the product Scarcity: trigger customers with “limited edition” or “exclusive” items
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'