MKT305 Exam 2 Study Guide
MKT305 Exam 2 Study Guide MKT 305
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This 6 page Study Guide was uploaded by Taylor Devereux on Sunday February 28, 2016. The Study Guide belongs to MKT 305 at Colorado State University taught by James Cook in Summer 2015. Since its upload, it has received 112 views. For similar materials see Fundamentals of Marketing in Business at Colorado State University.
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Date Created: 02/28/16
Marketing 305 Exam #2 StudyGuide Chapter 3 Demographics o Description of a population according to characteristics such as age, gender, ethnicity, income, and occupation 3 key demographic characteristics 1. Population profile 2. Description of generational cohorts 3. Description of racial and ethnic diversity Baby boomers o Generation of kids born between 1946 and 1964 Generation X o Members of the U.S. population born between 1965 and 1976 Generation Y millennials o The 72 million Americans born between 1977 and 1994 Multicultural marketing o Marketing programs that reflect unique aspects of different races Combination of marketing mix Culture o The set of values, ideas, and attitudes that is learned and shared among the members of a group Economy o Pertains to the income and resources that affect the cost of running a business or household Economic Forces o Macro 1. Gross income total amount of money made in one year by a person, household, or family unit “money income” 2. Disposable income money consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation 3. Discretionary income money that remains after paying for taxes and necessities Competitive Forces 1. Pure competition Many sellers with similar products Consumers in charge because LOTS of competition 2. Oligopoly Few companies that control the majority of the sales that happen in the industry Airlines 3. Monopoly One firm sells the product Cable companies Ways to ensure ethical behavior in organizations o 5ways: 1. Code on ethics policies and procedures a. Formal statement of ethical principles and rules of conduct i. Policies definition, consequence ii. Procedures process 2. Ethics training happens during training/regular reminders a. Rigorous b. Limited retries c. Follow up training if needed 3. Leadership by example MOST important 4. Quick and meaningful ethics discipline a. Do it right away, when kid does something wrong punish him right away 5. Ethics committee adjudication Should not just be upper management a. Appeal group b. Administrative c. Adjudication/part of investigation Moral Philosophies 1. Moral idealism A personal moral philosophy that considers certain individual rights or duties as universal regardless of the outcome 2. Utilitarianism A personal moral philosophy that focuses on the greatest good for the greatest number 3. Categorical imperative 4. Prima facie obligation Three concepts of social responsibility o Social responsibility The idea that organizations are part of a larger society and are accountable to that society for their actions 1. Legal/ethical responsibility 2. Profit responsibility a. Companies have the duty of maximizing profits for their owners or stockholders 3. Stakeholder responsibility a. On the obligations an organization has to those who can affect achievement of its objectives Societal Responsibility o Refers to obligation that organizations have to: Preserve the ecological environment To the general public o Green marketing Marketing efforts to produce, promote, and reclaim environmentally sensitive products o Cause marketing Tying the charitable contributions of a firm directly to sales produced through the promotion of one of its products Chapter 4 The fivestage purchasing decision process 1. Problem recognition initial step in the purchase decision, perceiving a need, recognizing a problem 2. Info search seeking value, consumer beginning to search for information 3. Alternative evaluation assessing value 4. Purchase decision buying value, evaluate who to buy from and when to buy it 5. Post purchase behavior value in consumption or use, after buy the product consumer evaluates the satisfaction Sociocultural influences: They are in order, going from the outer circle to the most inner circle: 1. Culturestate, country 2. Subculture ethic, nationality, religion, ideals, attitudes 3. Referent groups by interest, by activity, friends, by avoidance, etc. 4. Family 5. Personal Situational influences 1. Purchase task you need food 2. Social surroundings what people are with you? Children? Behaviors? 3. Physical surroundings crowding, lighting, store layout, presentation, music playing, number of registers open 4. Temporal effects time of day? How much time you have? Weather outside? 5. Antecedent effects your mood? Internal distractions? Your budget? Selective perception 1. Selective exposure you notice messages that you agree with or agree with your attitude 2. Selective comprehension interpreting messages based on your attitudes, beliefs, prejudices 3. Selective retention – remembering what is important to you, what your brain has “room for” Perceived risk o The anxiety felt when a consumer cannot anticipate possible negative outcomes of a purchase o Different people have different risk thresholds o Can sometimes be predicted, sometimes cannot o How do you deal with perceived risks in making purchase? Behavioral learning o Exposure/experience= drivecueresponsereinforcement o Process of developing automatic responses to a situation built up through repeated exposure to it Cognitive learning o Learn through thinking, reasoning, and mental problem solving without direct experience o Thinking/reasoning= can be personal or vicarious= stimulus (brand)idea Brand loyalty o A favorable attitude toward and consistent purchase of a single brand over come Attitude vs. Beliefs o Attitude tendency to respond to something in a consistently favorable or unfavorable way o Beliefs consumers perception of how a product or brand preforms o What we feel/think about something vs. what we conceptually/intellectually “buy”/are convinced/sure of. Three approaches marketers uses to change consumers’ attitudes toward products and brands: o Changing beliefs about the extent to which a brand has certain attributes o Changing the perceived importance of attributes. o Adding new attributes to the product. Chapter 6 Protectionism vs. Free Trade o Protectionism the practice of shielding one or more industries within a country’s economy from foreign competition through the use of tariffs or quotas Tariffs vs. Quotas o Tariffs A government tax on goods or services entering a country, primarily serving to raise prices on imports Helped build our country o Quota A restriction placed on the amount of a product allowed to enter or leave a country World Trade Organization o Institution that sets rules governing trade between its members through a panel of trade experts NAFTA (North American Free Trade Agreement) Lifted many trade barriers between Canada, Mexico, and the United States and created a marketplace with more than 450 million consumers European Union o Consists of 27 member countries that have eliminated most barriers to the free flow of goods, services, capital, and labor across their borders International Firm vs. Multinational firm vs. Transnational firm 1. International firms market based on home strategy 2. Multinational firms market based on particular country 3. Transnational firms market based on global strategy Global brand o Brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs Economic considerations o Economic infrastructure Country’s communications, transportation, financial and distribution system o Consumer income and purchasing power Average income is the key o Currency exchange rates Good sell better or worse abroad depending on the exchange rate Political regulatory environment o Political stability Social unrest? Nationalization? Changes in policy? o Trade regulations Can help or hinder? Often based on cultural values Direct export o When a firms sells its domestically produced goods in a foreign country without intermediaries, volume of sales likely to increase Indirect export o Is when a firm sells its domestically produced goods in a foreign country through a intermediary Least amount of commitment and risk but returns the least profit Licensing o A company offers rights to trademark, patent, trade secret, or other similarly valued item of intellectual property in return for a royalty or a fee Joint Venture o An international partnership o When a foreign company and a local firm invest together to create a local business, sharing ownership, control, and the profits of the new company Direct investment o Building, locating there Product and promotion strategies o Product extension making minor/no changes in your product o Production adaption making changes to suit local tastes, preferences, norms, values o Production invention making a product particularly for multinational or local use Diversification Analysis o Current market + Current product = Market Penetration o Current market + New product = Product Development o New market + New product = Market Development o New market + New product = Diversification
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