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This 4 page Study Guide was uploaded by Anna Notetaker on Thursday October 15, 2015. The Study Guide belongs to Mkt 3820 at Middle Tennessee State University taught by Dr. Lucy Matthews in Fall 2015. Since its upload, it has received 48 views. For similar materials see principles of marketing in Business at Middle Tennessee State University.
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Date Created: 10/15/15
Principles of Marketing Exam 2 Prof Lucy Matthews Chapter 5 Large corporations have traditionally been the major global competitors but more small businesses are entering marketplace Despite fears ofjob losses to other countries with cheaper labor there are many bene ts to globalization including reduction of poverty and increased standards of living Multinational corporations are international traders that regularly operate across national borders They have great in uence on the world economy Many countries block foreign investment in factories land and companies to protect their economies Global marketers face the same environmental factors as they do domestically This includes culture economic and technological development political structure and actions demography and natural resources A country s economic and technological status depends on its stage of industrial development which in turn affects average family incomes Five methods of entering the global marketplace exporting licensing and franchising contract manufacturing joint venture and direct investment A rm39s major consideration is how much it will adjust the four P39s product promotion place and price within each country Product Promotion Place Distribution Price One product one Channel choice Dumping message Product invention Channel structure Countertrade Product adaptation Country infrastructure Exchange rate Message adaptation Purchasing power International carriers such as UPS can help solve logistics problems Language translation software can help an ecommerce business become multilingual Chapter 6 An understanding of consumer behavior reduces marketing managers39 uncertainty when they are de ning a target market and designing a market mix The consumer decisionmaking process begins with need recognition when stimuli trigger awareness of an unful lled want If additional info is required the consumer may engage in an internalexternal info search The consumer will then evaluate the alternatives and nally make a decision Consumer postpurchase evaluation is in uenced by prepurchase expectations the prepurchase information search and the consumer39s general level of self con dence Consumer39s decision making falls into three categories routine response behavior limited decision making and extensive decision making The main factors affecting the level of consumer involvement are previous experiences interest perceived risk of negative consequences nancial social and psychological and social visibility A purchase decision can be highly involved due to a wide range of factors including product involvement situational involvement shopping involvement enduring involvement and emotional involvement Culture is the essential character of a society that distinguishes it from other cultural groups The underlying elements of every culture are the values language myths customs rituals laws and the artifacts that are transmitted from one generation to the next The most de ning element of a culture is its values A culture can be divided into subcultures on the basis of demographic characteristics geographic regions national and ethnic backgrounds political beliefs and religious beliefs Consumers may use products or brands to identify with or become a member of a reference group or to follow an opinion leader Family members also in uence purchase decisions children tend to shop in similar patterns as their parents Individual factors that affect consumer buying decisions include gender age and family life cycle stage and personality selfconcept and lifestyle Beyond physiological differences men and women differ in their social and economic roles and that affects consumer buying decisions Psychological factors include perception motivation learning values beliefs and attitudes These factors allow consumers to interact with the world around them recognize their feelings gather and analyze information formulate consumption problems Chapter 7 Business marketing provides goods and services that are bought for use in business rather than for personal consumption Intended use not physical characteristics distinguishes a business product from a consumer product Many marketers use social media to create awareness and build relationships and community Some metrics that are particularly useful for increasing success of a social media campaign are awareness engagement and conversion Relationship marketing entails seeking and establishing longterm alliances or partnerships with customers A strategic alliance is a cooperative agreement between business rms Producer markets consist of forpro t individuals and organizations that buy products to use in producing other products as components of other products or in facilitating business operations Government markets include federal state county and city government that buy goods and services to support their own operations and serve the needs of citizens The more people involved in the buying process negotiation is more complex and the reciprocity and leasing are more common because of the increase in people Business buying behavior is distinguished by ve fundamental characteristics First buying is normally undertaken by a buying center consisting of many people who range widely in authority level Second business buyers typically evaluate alternative products and supplies based on quality service and price in that order Third business buying falls into three general categories new buys modi ed rebuys and straight rebuys Fourth the ethics of business buyers and sellers are often scrutinized Fifth customer service before during and after the sale plays a big role in business purchasing decisions Chapter 8 A market is composed of individuals or organizations with the ability and willingness to make purchases to ful ll their needs or wants Segmentation is a crucial marketing strategy for nearly all successful organizations Market segmentation enables marketers to tailor marketing mixes to meet the needs of particular population segments Segmentation helps marketers identify consumer needs and preferences areas of declining demand and new marketing opportunities Market segmentation depends on four basic criteria must be substantial and have enough potential customers must be identi able and measurable must be accessible to market efforts and must respond to particular marketing efforts in a way that distinguishes it from other segments Five bases are commonly used for segmenting consumer markets Geographic segmentation is based on region size density and climate characteristics Demographic segmentation is based on age gender income level ethnicity and family life cycle characteristics Psychographic segmentation includes personality motives and lifestyle characteristics Businesses may segment markets based on company characteristics such as customers39 geographic location type of company company size and product use as well as based on the buying processes those customers use Marketers select target markets using three different strategies undifferentiated targeting concentrated targeting and multisegment targeting CRM relies on four things to be successful personalization time savings loyalty and technology To establish a unique position many rms use product differentiation emphasizing the real or perceived differences between competing offerings Products may be differentiated on the basis of attribute price and quality sue or application product user product class competitor or emotion Sometimes products or companies are repositioned in order to sustain growth in slow markets or to correct positioning mistakes
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