Study Guide for Mid Term
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Popular in Marketing
This 18 page Study Guide was uploaded by Kalie Holub on Wednesday October 7, 2015. The Study Guide belongs to at Ohio University taught by Tom Marchese in Fall 2015. Since its upload, it has received 27 views. For similar materials see Marketing in Marketing at Ohio University.
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Date Created: 10/07/15
Marketing Study Guide Tom Marchese Cluster Exam 1 This is a study guide prepared for the marketing exam over chapters 1256910 and 11 For each chapter the questions and answers from the review session are addressed Seeing that most of the review was based on de nitions I prepared a list of key terms for each chapter from the book Then I typed up notes from reading each chapter The notes from the chapter contains terms de ned in the key terms sections Any areas left blank are self explanatory such as the de nition for location Good luck everyone Chapter 1 1 Review Session Questions and Answers Question Which of the following is not a core aspect of marketing Answer A ensuring nancial statements correctly re ecting value Question What is it called when customers give up things they value such as time money etc Answer D Marketing Exchange Question What are the four P39s of marketing called product price promotion and place Answer D Marketing Mix Question Intangible bene ts produced by people and machines are caHed Answer C Services Question Inform persuade remind potential buyers about a service or good to in uence the buyer to purchase is called Answer B Promotion Question The group of rms that make and deliver a given set of good and services Answer D Supply Chain Question Marketers should do all except Answer E Advise human resources on right type of employees to higher 2 Notes From Chapter Key Terms Marketing the activity set of institutions and processes for creating capturing communicating delivering and exchanging offerings that have value for customers clients partners and society at large Marketing Plan speci es the marketing activities for a speci c period of time how it will be perceived or designed price where and how it will be promoted and how it will get to the customer better off as a result Marketing MiX The four P39s Product Price Place and Promotion Goods items that you can physically touch Services Intangible customer bene ts that are produces by people or machines and cannot be separated from the producer Ideas Concepts opinions and philosophies that can be marketed For example a group has an idea to promote bicycle safety the hire talkers to travel to schools and speak then they sponsor a certain bycycle helmet etc Value re ects the relationship of bene ts to costs or what you get for what you give Supply Chain Marketing Channe a group of rms that make and deliver a given set of goods and services Key Points 1 Core Aspects of Marketing a Marketing helps create value This is about promotion Informing persuading and reminding potential buyers about a product or service to in uence their opinions and get a response An example of this would be advertising One must keep in mind that even the best product would not be successful without proper and effective promotion b Marketing is about satisfying customer needs and wants this is understanding the marketplace Coke and Pepsi may be present worldwide but there are different things to think about when marketing the drink it can be segmented into different groups Men vs Women Calorie conscious or not avor preference etc c Marketing entails an exchange the different trade offs between the buyer and the seller to bene t each one Example is lTunes they let you preview the song the buyer can try it out to ensure they like it and iTunes is more likely to get the sale after the customer hears the songs and enjoys it They provide you with a quick way to pay with your credit card info already store the buyer can save time and the seller bene ts from the sale and also records purchase information so they can record trends d Marketing requires product price place and promotion decisions Product Identifying what consumers want and creating a good or service that will satisfy them Price this is what the buyer gives up money time and energy Determine a price that consumers are willing to pay so that they are satis ed with the purchase and the seller achieves a reasonable pro t e Marketing can be performed by both individuals and organizations explains how there are middlemen between buyers and sellers We do not have to go to 100 different farms to pick up different vegetable meats and fruits Many farms all sell to Kroger and we are able to go to one Kroger location and pick up a plethora of different product f Marketing occurs in many settings Activities necessary to get the good or service to the customers Supply Chain Management handles a lot of this A good example is a kiosk A kiosk is a lot cheaper easier and more affordable than opening up a store So when a rm sees a demand in a new location they often open up a kiosk which is less permanent less expensive requires few employees and it convenient for consumers 2 Different Era39s a SalesOriented Era 19201950 Firms had the capacity to produce more than the buyers wanted So they relied heavily on sales and advertising to make revenue b MarketOriented Era After WWII soldiers came home and started new lives Instead of focusing on the war they focused on the consumer who became their king They made decisions on quality convenience and price This is when rms discovered marketing c ValueBased Marketing Era Most rms are this today They realized that not only do they have to market to make their product or service look great but somehow convey that their product is better than the competitor 3 Become More Value Driven a Sharing information Information on consumer behavior and what their needs demands and buy behavior is like and how you can manipulate your marketing to work best with the consumer For example a Kroger plus card records everything you buy and lets Kroger know the current buying trends b Balancing Bene ts with Costs Try to satisfy consumer needs in the most costly manner For example lKea has cheap salesmen but their designs are simple and easy to choose from so expensive salesmen aren39t necessary c Building Relationships With Customers 4 Connecting With Customers Using Social Media a Making application for their rms to maybe online shop online reservations receive coupons receive news etc b Use application to make operations go smoothly example square app for credit transactions c have social media accounts to stay present with customers and remind them 0 have people quotcheck inquot on Facebook e Customer reviews are on social media could be good or bad Chapter Two 1 Review Questions and Answers Question SCE strong brand name and customer satisfaction are all part of Answer B Sustainable Competitive Advantage Question Competitors can copy what a rm offers but in the end you will still have what Answer D Product Excellence Question blank a document analyzes SWOT opportunities threats nancial statements etc Answer Marketing Plan Question SWOT is an acronym for Answer D Strengths Weaknesses Opportunities Threats Question Before selecting a target market a rm needs to Answer A Evaluate each potential segments attractiveness Question Executive pricing promotion place and product are all part of Answer D Implementation Question This unit used the term quotcash cowquot what does meangt Answer B Has excess resources that can be use to put towards other business units that need it Question Out of the four growth strategies which one is most typical for marketers Answers D Market Development 2 Notes from Chapter 2 Key Terms Marketing Strategy Identi es a rms39 target markets a related marketing mix and the four P39s and the bases on which the rm plans to build a sustainable competitive advantage Costumer Excelence focuses on retaining loyal customers and excellent customer service Operational Excelence Achieved through ef cient operations and excellence supply chain and human resource management Product Excelence Having products with high perceived value and effective branding and positioning Locational Excelence having a good physical location and internet presence Sustainable Competitive Advantage an advantage over the competition that is not easily copied and this can be maintained over a long period of time Location selfexplanatory Marketing Plan a written document compose of an analysis of the current marketing situation opportunities and threats for the rm marketing objectives and strategy speci ed in terms of the four P39s action programs and projected or proforma income and other nancial statements Planning Phase de ne the missionvision of the company Implementation Phase Identify and evaluate different opportunities by engaging in segmentation targeting and positioning Control Phase evaluating the results and correcting things for next time Situation Analysis A SWOT analysis which refers to both the internal environment and the external environment STP Segmentation Targeting Positioning Market Segment consumers who respond similarly to a rm39s marketing efforts Market Segmentation The process of dividing the market into groups of customers with different needs wants or characteristics Target Marketing After rms de nes different segment they go through a process where they evaluate which segments are more attractive and which one to pursue Market Positioning The process of de ning the market mix variables so that the target customers have a clear understanding of what the product does or what bene ts they are supposed to receive Product Includes both goods and services Metric a measuring system that quanti es a trend dynamic or characteristic Market Share Percentage of a market accounted for by a speci c entity Market Penetration Strategy employs the existing marketing mix and focuses the rms39 efforts on existing customers Market Development Strategy employs the existing marketing offering to reach new market segments whether domestic or international Product Development Strategy Offers a new product or service to a rms39 current target market Diversi cation Strategy introduces a new product or service to a market segment that currently is not served Key Points 1 Marketing Strategy a Customer Excellence i Helps retain loyal customers and build customer service b Operational Excellence i Helps ensure good value maximize pro ts and minimize mistakes c Product Excellence i Investing in the brand itself having a distinctive brand reinforcing that image through product dLoca onalExceHence i Customers want easy location For example many people will not drive too far for a cup of coffee Starbucks has great locational excellence because you can nd one anywhere 2 The Marketing Plan Step 1 Planning Phase i What type of business are we What do we need to do to accomplish our goals and objectives Step 2 Evaluate the situation by assessing how various players both in and outside the organization affect the rms39 potential for success i SWOT Step 3 Implementation Phase i STP Step 4 Implementing the marketing mix using the four P39s Step 5 Control Phase i Evaluate using a metric Explain why things happened and project the future A rm can evaluate portfolio performance human performance and nancial performance 3 Growth Strategies 1 Market Penetration 2 Market Development 3 Product Development 4Diversi cation Chapter Five 1 Review Session Questions and Answers Question The MacroEnvironment includes blank factors which the marketer cannot blank Answer D External Control Question The blank is the center of all marketing efforts Answer D consumer Question blank is the shared meanings beliefs and morals of a group of people Answer B Culture Question Age gender income are all considered Answer C Demographics 2 Notes from Chapter 5 Key Terms Macroenvironmenta factors these are things that operate in the external environment the culture demographics social issues tech advances economic situation and political Culture Shared meanings beliefs morals values and customs of a group of people Country Culture artifacts behavior dress symbols physical settings ceremonies language differences colors tastes food preferences Regional Culture selfexplanatory Demographic indicate the characteristics of human populations and segments especially those used to identify consumer markets Generational Cohort a group of people of the same generation have similar purchase behaviors because they have shared the same experience Generation Z also known as the digital natives this is the current generation that was born into a generation of technology That have always had computers cell phones televisions smart phones tablets at our hands They were the rst generation to not have to learn or adapt to social media and social networks Generation Y also called millennia s which includes people born from 1977 2000 This was the children of the baby boomers This generation is either in or entering the workforce We want to balance work and a nice lifestyle We are all tech savvy We are known to act the same compared to other developed countries Generation X People born between 1965 and 1976 These are latchkey kids were they grew up where both parents work 50 of their parents are divorced Now when it comes to parenting they live in fear of giving their children a disappointing home life They are not affected by marketing They tend to play safe and wait to marry purchase a house do not like to spend do not believe advertisements Baby Boomers People born between 19461964 They are individualistic They make leisure time a top priority They believe they will always be able to take care of themselves even though they may not make the smartest spending choices They love Rock n39 Roll Greenwashing consumers need to question whether a rm is spending signi cantly more money and time advertising being green rather than actually spending these resources on environmentally sound practices Key Points 1 The Immediate Environment a Company Capabilities the rst factor that affects the consumers is the rm itself Focus on customer needs that match their core competencies b Competitors c Corporate Partners only few rms operate in isolation Think about the role these partners play and how they work with the rm to create a single ef cient system 2 Macroenvironment Factors Culture Demographics Social Issues Technological Advances Economic Situations Political Also Includes a Education higher education leads to higher paying jobs and better income Knowing the consumers education is very important A high school student working part time and a college student working parttime probably have around the same income But because of their different stages in life they will allocate their money differently and spend it on different things Like a high school kid would spend money on gaming systems new games movie tickets etc A college kid would spend their money on good food bars beer etc b Generations c Income Middle and Lower class purchasing power keeps declining 110 of the population hold the majority of the income Obviously your consumer s income has a lot to do with their purchase behavior dGender e Ethnicity most developed countries are becoming more and more diverse Different ethnicity have different typical purchase behaviors income levels etc f Social trends Thrift has become a trend to nd cool clothes for cheap to resell things in used stores or on eBay or recycle things to make crafts etc Health and Wellness Concerns recently obesity high blood pressure and high cholesterol have become huge problems This affects food industries and concerns of all people For example McDonalds tries to advertise new healthy choices Chapter Six 1 Review Session Questions and Answers Question A marketer would use principles and theories from sociology and psychology to Answer A Decipher many consumer choices for dealing with their behavior Question blank steps that consumers go through before during and after making purchases Answer C The consumer decision process model Question After a consumer recognizes they should go from need to desire they Answer A Internal and External search for information Question A market would like to be in blank set for purchase decision but would like it even more to be in the blank set Answer C Retrieval Evoked Question Final step of consumer decision process Answer D Post purchase behavior Question Maslow s Hierarchy is powerful because it Answer A Explains different types of motives Question Purchases may be perceived as time spent or money Answer E Lifestyles 2 Notes from Chapter Key Terms Need Recognition When you realize you are not satis ed and you need to do something about it Functional Needs pertain to the performance of a product or service BMW makes superior functional motorcycles with quality engines The quality engines are functional Psychological Needs Needs that go beyond the functional needs For example shoes are a functional need to keep feet clean and protected So why would a girl buy 1000 for Christian LouBoutin39s This is a psychological need Internal Locus of Control Believe they have some control over the outcomes of their actions External Locus of Control consumers believe that fate has control on their future Performance Risk the perceived danger inherent in a poorly performing product or service Financial Risk involves the initial cost of a purchase and well as the costs of using the item or service Social Risk the fear that consumers suffer when they worry other might not regard their purchase positively Physiological Risk fear of actually harm if the product does not perform properly An example would be a car Psychological Risks the way people will feel if the product does not convey the right image Universal Sets includes all possible choices for a product category Retrieval Sets those brands or stores that can be readily brought forth from memory Evoked Sets the alternatives brands that the consumer states he or she would consider when making a purchasing decision Evaluative Criteria consists of important attributes about a particular product Determinant Attributes product or service features that are important to the buyer and on which competing brands or stores are perceived to differ Compensatory Decision Rue assumes that the consumer when evaluating alternatives trade off one characteristic against another such that good characteristics compensate for bad characteristics MultiAttribute Model Where different attributes have different weights explaining which attribute are more important Noncompensatory Decision Rue Chose based on one characteristic For example I only eat organic foods So I will always buy the choice that is organic no matter the price or anything Negative Word ofMouth when consumers spread negative information about a product service or store to others Motives a need or want that is strong enough to cause the person to seek satisfaction Masow s Hierarchy ofNeeds He categorized needs into ve categories physiological food water shelter safety secure employment health love friendship family esteem con dence respect and selfactualization engage in activities to meet intellectual aesthetic and creative needs Attitude a person39s enduring evaluation of his or her feelings about behavioral tendencies toward an object or idea Perception the process by which we select organize and interpret information to form a meaningful picture of the world Learning refers to a change in a persons39 thought process or behavior that arises from experience and takes place throughout the consumer decision process Lifestye Refers to the way consumers spend their time and money to live Situational Factors refers to the situation factors that in uence psychological and social issues Reference Group one or more persons whom an individual uses as a basis for comparison regarding beliefs feelings and behaviors Involvement the consumers39 degree of interest in the product or service Extended Problem Solving the customer perceives that the purchase decision entails a lot of risk There are multiple risks therefore multiple factors and a lot of effort is put into the decision Limited Problem Solving a decision that requires a little bit of effort and time Impulse Buying a buying decision made by consumer on the spot when they see the merchandise often in uenced by temptation Habitual Decision Making when consumers39 engage in little conscious effort For example QTips you walk into Kroger nd the Q Tips grab them and buy them No hard decisions were made 1 The Consumer Decision Making Process a Need recognition b Information Search internal and external de nes risks c Alternative Evaluation look at all your options d Purchase conversion turn decision into purchase e Post Purchase either satisfaction or not satis ed then decide if you will return as a customer 2 Factors In uencing the Consumer Decision Process a Motives b Attitudes c Perceptions d Lifestyles e Different types of needs f Maslow g Different types of decision making Marketing Pysch Social Situation Product Motives Family Purchase Price Attitudes Reference Shopping Place Perceptions Culture Promotion LifestylesLearn 3 Involvement and Consumer Buying Decisions a Consumers degree of interest b Limited less risk impulse habit c Extended more risk more time more dif cult Chapter Nine 1 Reviews Session Questions and Answers Question The nal stage in STP process is Answer A Identify and develop positioning strategy Question Which of the following is not a type of segmentation Answer D Sociological Segmentation Question quotI39m like them I should but their productquot Answer B Self Concept Question quotTargeted NYC residences that are over 50 for a magazinequot Answer E Geodemographic Question When the selected potential market segment customers react similarly and positively to the offering Answer D Positioning Question After segmentation and targeting comes Answer D Positioning 2 Notes From Chapter Key Terms Geographic Segmentation organizes consumers based on where they live Demographic Segmentation organizes consumers based on age gender income and education Psychographics delves into how consumers describe themselves SelfValues goals for life overriding desires on how a person wants to live their life SelfConcept the image people ideally have of themselves Bene t Segmentation groups consumers based on bene ts they derive from products Behavioral Segmentation based on how the consumers use the product or service Occasion Segmentation things that happen every once in a while like prom or a wedding Or when companies advertise different foods in different colors and avors for holidays and season Loyalty Segmentation investing in retention and loyalty to retain their most pro table customers Geodemographic Segmentation Uses a combo of geographic demographic and lifestyle to categorize consumers Undifferentiated Targeting Strategy targets everyone and their similarities verses focusing on differences between people Example gas everyone needs it Differentiated Targeting Strategy target several market segments with a different offerings for each Concentrated Targeting Strategy Firm selects a single primary target market and focuses all efforts to meet that markets needs Micromarketing 0r onetoone marketing customization Value Proposition communicates the customer bene ts to be received from a product or service and provide reasons for wanting it Value the correlation between price and quality Perceptual Map displays two or more dimensions the position of products or brands in the consumers mind Perceptual Map Old Very sweet Key Points STP 1 Step One Identify the marketing strategy where the company wants to go and where it39s strengths and weaknesses are 2 Step Two Use particular method or a combo of methods a Geo b Demo cPyscho d Bene ts e Behavioral 3 Step Three Evaluate segment attractiveness is this worth pursuing a Is it identi able who is in this market what makes it distinct from others b Is it substantial is the market big enough to make pro t small enough for the company c Is it reachable can you access the people of the market d Pro table e Responsive do consumers react positively to this 4 Step Four select target market based on the ability to pursue a Differentiated b Concentrated c Micro d Undifferentiated 5 Step Five develop a Positioning Strategy consumers must have a clear distinctive desirable understanding a Perceptual map b Value c Attributes d Brand Reputation Chapter Ten 1 Review Session Questions and Answers Question What is it called when one collects records and analyzes in order to make decisionmaking Answer D Marketing Research Question When one uses a variety of statistical analysis tools to uncover previously unknown patterns in data or relationships among variables Answer B Data Mining Question The major advantage of blank data is that is can be tailored to meet speci c marketing research needs Answer B Primary Question The disadvantages to secondary research are that research may not be relevant to the information needed and Answer E Methods for data may not be appropriate Question Commercial research rms such as symphony all provide information you can purchase this type of info is called Answer A Syndicated Data 2 Notes From Chapter Key Terms Marketing Research recording collecting analyzing and interpreting data that can aid in decision marking for marketing products Secondary Data information that has been collected prior to the start of the focal research project Primary Data data collected to address speci c research needs interviews surveys focus groups Data raw numbers or facts that don39t have much meaning Information data that has been interpreted claims trends etc Scanner Data data used from scanning UPC labels at checkout counters Panel Data collected from a group of consumers organized into panels over time Syndicated Data available for commercial research and charge to obtain Data Warehouse billions and billions of pieces of data that are stored in huge computer les called data warehouses Data Mining variety of statistical analysis tools to uncover previously unknown patterns in the data or relationship among variable Quantitative structured responses that can be physically tested Quaitative understand phenomenon of interest through open and broad questions Focus Group Interviews a small group of persons come together for an intensive discussion about a particular topic Biometric Data one or more physical traits such as a facial characteristic iris scans or nger print Key Points 1 The Marketing Research Process a De ne objectives b Design the research type of data and research necessary c Data collection process d Analyzing data and developing insights interpretation e Action plan and implementation prepare results and present 2 Secondary Data a external b inexpensive c or expensive and more indepth d internal company sales invoices 3 Primary Data a observation b social media c indepth interviews d focus group e surveys 4 Emerging Technology and Ethics a people worrying about protection of information and companies observing them going too far and invading pnvacy b facial recognition Chapter Eleven 1 Review Session Questions and Answers Question For most consumers a laptop would be Answer B Shopping Product Question A rm39s product mix is often made up of Answer A Product Lines Question A brand extension Answer E Increases product mixes breadth 2 Notes From Chapter Key Terms Product MiX complete set of all products and services offered by a rm Product Lines what the product mix consists of groups of associated items that consumers tend to use together For example Kellogg s cereal crackers and cookies Breadth a count of the number of product lines offered by the rm Depth the number of products within a product line Brand Equity the set of assets and liabilities linked to a brand that adds to or subtracts from the value provided by the product or service Brand Awareness how many consumers in a market are familiar with the brand an what is stands for and have an opinion about it Perceived Value relationship between the products39 bene t and cost Brand Association re ects the mental links that consumers make between a brand and its key product attributes such as logo slogan or famous personality Brand Loyalty when a consumer buys repeatedly from the same brand Manufacturer Brands owned and managed by the manufacturer Tries to ensure a consistent quality like Nike or coke RetailStore Brands developed by retailers Some retailers produce their own brand and sometimes they sell other brands and sometimes they do both Family Brands a brand associated with the family name Like Kellogg39s Individual Brand what a rm uses to name each of it39s products for example Kellogg39s does not brand their cookies with the name Kellogg39s it brands them Famous Amos Brand Extension use of the same brand name in a different product line an increase in the product mix39s breadth For example Colgate started off with toothpaste But they incurred a brand extension and made mouth wash and oss Line Extension the use of the same brand name within the same product line increase in product line39s depth CoBranding the practice of marketing two or more brands together on the same package promotion or store Brand Licensing contractual arrangement between rms where one rm allows another to use its brand name logo etc for a fee An example would be gummies using Disney princesses on the packaging and the shape of the gummies Brand Reposition change a brands focus to target new markets Primary Package the one the consumer uses such as the toothpaste tube or the milk carton Secondary Package the wrapper or exterior that contains the primary package and provides the UPC label Key Points 1 Types of Products a Specialty consumers express such strong preference they will expend considerable effort to search for the best For example snowboard enthusiasts will spend a lot of time effort and money to ensure they get the best boa rd b Shopping Product consumers will spend a fair amount of time comparing alternatives such as furniture apparel appliances and travel c Convenience Products consumer is not willing to spend any effort such as soap food necessities d Unsought Products Products that people are not familiar with buying therefore they do not know how to behave For example a GPS or specialty insurance for international travelers This type is often for rst time buyers 2 Product Mix and Product Line a Increase Depth rm may add items if consumers preference changes A bank may offer a checking account but to increase depth they can offer one for college students highschool students and people who like to use online banking b Decrease Depth eliminate products that do not create pro t anymore c Decrease Breadth sometimes its necessary to delete an entire line to shift target market Maybe a food company will delete their bread line to focus more on dairy d lncrease Breadth add new lines to capture new or evolving markets 3 Branding a Facilitate purchases b Establish Loyalty c Protect from competition d Brands can be an assets e Impact market value 4 Brand Equity for the Owner a Brand Awareness b Perceived value c Brand Associations d Brand Loyalty 5 Branding Strategies a Brand Ownership i Manufacturer Brands ii Retailer Brands b Naming Brands and Product lines i Family Brands ii lndividualistic Brands c Brand and Line Extensions d CoBranding e Brand Licensing f Brand Repositioning 6 Packaging a Primary b Secondary
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