Exam 1 Study Guide
Questions from Video Study Guides
1. Pemberton’s bookkeeper, Frank Robinson, came up with the name and the trademark for
CocaCola, what would become the world’s ___most recognized_____ brand name. 2. Robinson later launched a pioneering ad campaign, among the first direct mail
campaigns in history.
3. Coke’s competitors had an easy time confusing the drinkbuying public until Coke came up with a unique, distinctive package. The result, unveiled in 1916, was a universal
4. Candler attributed his success as much to the taste of Coke as to the marketing and
distribution operation he had created.
5. CocaCola became an icon to the American G.I., and the American G.I. came to have a
devotion to Coke.
6. There would be other changes, too. The “cola wars” were escalating, and there was a
new, all powerful weapon in the battle: television.
7. Faced with the World War II generation’s fanatical devotion to CocaCola, Pepsi simply
ignored them, focusing on their kids instead.
8. Pepsi came upon the notion of, instead of talking about the product so much, let’s talk
about the consumer that uses it.
9. American consumers loved New Coke. True or False?
The 80s: Shop till You Drop
10. Widespread] conspicuous consumption comes straight out of the 80s. It’s not about what
you need, but it’s about what you want. And you go shopping for sport. 11. We were more conditioned to the word luxury. We spent like there was no tomorrow. 12. The mall made shopping a form of total recreation, and middleclass America seemed to Don't forget about the age old question of Why do we need to measure cost?
13. In the 1980s Americans got used to debt, and as a result debt levels really rose. True or
14. In 1984, we coined a new word for a new addiction: shopaholic.
15. No consumer product in the history of humanity has been adopted by people around the world as quickly as the cell phone. True or False
16. People just wanted to spend. They were intoxicated by the things that they saw on the
TV. They were intoxicated by the marketing campaigns.
17. It’s not just the Dynasty clothes and perfume that sells. It’s the house, too. Or a version of it. The first McMansions are built, and wanting to own one becomes the real drama in
many Americans’ lives.
18. Houses became bigger, even as the average American family shrank in size. Another
way for the consumer to buy bigger to feel richer.
19. No matter how big or small the product, it looked like consumers would buy anything We also discuss several other topics like What is Experiment Ablation?
with the right image.
20. What we learned is that consumer has the power, not the advertising agencies, and not the marketing departments of companies that are trying to sell them products. Consumers
pretty much reject or accept things that they like.
21. The customer is king. “If it ain’t broke, don’t fix it.”
22. We [Americans] started buying bottled water in a serious way at the end of the 1970s when Perrier came across the ocean and was introduced to urban markets. It was a niche
product, really popular with urban professionals. If you want to learn more check out An oxidizing agent is itself is what?
23. In 1989, it became possible to put water into lightweight, cheap, clear plastic bottles
made of PET, and that changed the market.
24. The big change came when Coke and Pepsi got into the game. They introduced waters
because they saw their market share for sodas dropping.
25. The Unites States falls behind the world average of all beverage containers getting
26. Municipalities are meant to pick up the tab by providing all the recycling for the plastic
27. A Bottle Bill, a.k.a. container deposit legislation] is a proven system, they’ve been in
place in some states for 25 or more years, and they work well. True or False 28. Of the 80 million bottles of water we drink in the United States every day, many of them
make their way to the sea.
29. The success of Eskimo Joe’s ultimately led Stan Clark and his partner into other business opportunities. But it was Joe’s distinctive logo that became the company’s biggest asset.
30. A big part of their marketing [when they first opened] was the word of mouth We also discuss several other topics like Who is the ultimately responsible for the performance of employee in a hotel?
advertising that the Tshirt generated.
31. Even to this day, fun is their core product.
32. There are a lot of similarities between their retail store and the operation of their restaurant. Managing the guest experience is probably the most important piece of the puzzle.
a. An organizational process (involves everyone in an organization) We also discuss several other topics like Response of the entire organism including physiological arousal, expressive behaviors, and conscious experience, is what?
i. An organizational process for
1. Managing customer relationships
2. Creating, communicating, and delivering values to customers
b. Marketing is all about delivering value and satisfying everyone involved in the If you want to learn more check out What is stress?
marketing process (i.e. stakeholders)
a. Any person, group, or organization who has a “stake” in the outcome of the marketing process. ( consumers, marketers, manufactures, suppliers, distributors,
retailers, advertisers, investors, communities, cities, states, and nations)
a. Ultimate user of a good or service
b. Commonly used to refer to individuals rather than businesses.
a. The actual or prospective purchaser of products or services
b. Businesses are commonly referred to as customers, not as consumers. 37. Consumer Goods
a. Tangible products that individual consumers purchase for personal or family use.
a. Intangible products that we pay for but never own.
a. Business–to–Consumer Marketing – marketing to consumers
a. BusinesstoBusiness Marketing – the marketing of goods and services from one
organization to another.
41. The Marketing Concept
a. First they identify consumer needs
b. Then they provides products and services that satisfy those needs (providing
c. Thus ensuring the firm’s longterm profitability.
a. The difference between a consumers ideal or desired state
b. Physical needs – food, shelter, clothes, transportation
c. Psychological needs – wants
43. When does a product deliver a benefit? When it satisfies a need or want. 44. Differential Benefit – convincing consumers that your product is better than the
45. Demand = Desire + Buying Power
a. All consumers who
i. Share a common need that can be satisfied by a specific product
ii. Have the resources, willingness, and authority to make the purchase 47. Mass Market
a. Consists of all possible customers in a market, regardless of the differences in
their specific needs and wants.
b. Firms that adopt a mass marketing strategy must develop a basic product and a
single strategy for reaching everyone.
48. Market Segments
a. Groups of customers within a larger market who are similar to one another in
some way, yet whose needs differ from other customers in the larger market. b. When an organization chooses to focus on one segment, they are focusing on a
49. Marketplace – any location or medium used to conduct an exchange. 50. Utility – refers to the sum of benefits we receive from a good or service. 51. Value Proposition – the whole bundle of benefits the brand promises to deliver and not
just of the product itself.
52. Competitive advantage – the underlying goal of all marketing strategies a. Distinctive Competency – a firm’s capability that is superior to that of its
competition. Refers to your company.
b. Differential Benefit – a benefit that makes a difference, that has set a product
apart from the competition. Refers to your product or service
c. If a company has a competitive advantage then it has the ability to outperform the competition.
d. Gives consumers a reason to choose one firm’s product over another firm’s
53. It is more expensive to attract new customers than to retain current ones. 54. Lifetime Value of a Customer the profit the company expects to make from a
particular customer, including every purchase he or she will make from Nike now, and in
a. How to calculate the lifetime value of a customer
i. estimate the total amount the
person will spend
ii. then subtract what it will cost the company to maintain that relationship 55. The value chain – a series of activities involved in designing, producing, delivering,
marketing, and supporting any product.
a. Primary Activities of a value chain are inbound logistics, operations, outbound
logistics, service, marketing, and sales.
56. Marketing Mix – a.k.a. the 4P’s (product, price, place, promotion) a. Decisions about any of these affect the others
b. Decisions are totally interdependent
c. All of these must be coordinates to work handinhand
57. Market Position How the target market perceives your product in comparison to your
58. The Eras of Marketing
a. Production Era (pre 1930) – businesses focused on the most efficient ways to
produce and distribute products
b. Selling Era (1930s1950s) – business focused on the hard sell, aggressively
pushing their product.
c. Relationship Era (1950s–present) Firms adopted a Consumer
i. Businesses began focusing on satisfying customer needs (the Marketing
ii. Marketing’s importance within most companies was elevated
iii. Marketers began to understand the needs of different consumers, thanks to
iv. Companies began tailoring products and messages (ads) to different
v. The notion that a firm succeeds when it satisfies its customer’s needs is a pretty recent idea
59. Total Quality Management Involving all employees from the
assembly line onward in continuous product quality improvement. 60. Customer Relationship Management
a. systematically tracking consumers’ preferences and behaviors over time b. tailoring the Value Proposition to everyone’s wants and needs.
61. Consumer decision making is an ongoing process, not merely what happens now a
consumer pays for a product.
62. Effort Continuum Consumers make purchase decisions via a
range of effort.
a. Low involvement Habit or pure whim
b. High Involvement Extended analysis and comparison of products
63. How much effort consumers put into deciding what to buy depends on their Level of
64. Shelf Talkers Printed cards or signs attached to a store shelf to call buyers' attention to
a product displayed in that shelf. Also called Shelf Screamers.
65. When consumers engage in extended problem solving, they go through the 5 steps of the
Consumer DecisionMaking Process
a. Problem recognition
b. Information search
c. Evaluation of alternatives
d. Product search
e. Post purchase evaluation
66. Evaluative Criteria This is a list of factors shoppers might use to decide among car
choices. What marketers call such decisionmaking factors
67. Heuristics – rules of “thumb” that help simplify the decisionmaking process. a. Brand loyalty – most common Heuristic
68. Search Engine Optimization (SEO) Marketers find out what keywords consumers use most in their searches. Then they edit their site’s
content to increase its relevance to those keywords.
69. Search Engine Marketing (SEM) the search engine company charges marketers to
display sponsored search ads that appear at the top or beside the search results. 70. Whenever a consumer recognizes a difference between the current state and his/her ideal
or desired state, problem recognition occurs.
a. Most problem recognition occurs spontaneously when a true need arises; but…
b. Marketers often develop advertising messages that stimulate consumers to believe
their current state does not equal their desired state.
71. Influences on Decision Making
a. Internal –
i. Perception process by which people select, organize, and
1. To help understand the Perception process,
marketers need to understand what three things?
2. The Perception process has implications for
marketers because the odds are that any single
message will get lost in the… Clutter
ii. Motivation – the internal state that drives us to satisfy our
1. Maslow’s Hierarchy of Needs
a. Before people can meet needs in a given level, what must
they do first? meet their lower level’s needs
b. Marketers must understand their target consumer’s level of
needs to tailor their products and messages to them.
iii. Learning –
iv. Attitudes –
v. Personality –
vi. Age groups –
3. Young adults
4. Adults – middle aged
6. the purchase of goods and services (Product Choice) depend more
on: The consumer’s current position in the family life cycle?
7. Demographics are statistics that measure observable aspects of a
population, such as segment size, age, gender, ethnic group,
income, occupation and family structure.
8. Can demographic characteristics also tell marketers why people
9. What characteristics must marketers use (analyze) instead to tell
why people buy? Psychographics
a. Psychographics group consumers via AIOs. What is AIO
an acronym for? Activities, Interests, and Opinions
vii. Lifestyle a pattern of living that determines how people choose to spend their time, money, and energy and that reflects their values, tastes, and
1. Consumers often choose goods, services, and activities that are
associated with a certain lifestyle.
b. Situational physical environment, time (when, where, and how consumers shop) i. What two factors determine whether a shopper will react positively or
negatively to a store environment? Arousal and Pleasure
ii. Placebased Media is a growing way to target consumers in
iii. It's easy for consumers to avoid ads on their home TVs, but placebased media offers marketers a way to reach consumers when they are a Captive
iv. Consistently managing a successful series of customer purchase
experiences is what creates a strong retail brand.
v. Despite the growth of Internet commerce, 70% of Americans still shop at
a store every week
vi. Time is one of consumers’ most abundant resources. True or False? Time is one of consumers’ most limited resources. The time of day and how
much time one must make a purchase affect decision making.
vii. Does the time of the year (season) affect decision making? Yes c. Social
i. Culture the values, beliefs, customs, and tastes produced and valued by a
group of people.
1. A consumer’s culture can influence his or her buying decisions. 2. When marketers understand a culture’s values, they can tailor their
products to the consumer within that culture
ii. Subculture coexist with other groups in a larger culture and share a
distinctive set of beliefs or characteristics
1. For marketers, some of the most important subcultures are racial
and ethnic groups. Why? Many consumers identify
strongly with their heritage (and products that
relate to this aspect of their identities appeal
iii. Social class The overall rank of people in a society
1. People in the same social class tend to have widely varying tastes
in clothes, decorating styles, and leisure activities. True / False
2. People in the same social class tend to share common tastes in
clothes, decorating styles, and leisure activities.
iv. group memberships
72. Selfconcept a person’s attitude toward the him or herself
73. Reference Group term for a set of people a consumer wants to
please or imitate
74. Opinion Leader Certain people that influence others’ attitudes or behaviors because they are perceived as possessing expertise about
75. Consumerism The social movement directed toward protecting consumers from
harmful business practices
76. Environmentalism The concern for the ways in which our consumption impacts our
77. BusinesstoBusiness (B2B) Marketing "The marketing of goods and services that
businesses and organizations buy for purposes other than personal consumption?" a. Aka Organizational Markets