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Exam 2 Study guide

by: Mallyna Sessions

Exam 2 Study guide MKT 313

Mallyna Sessions
GPA 3.3

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Kris Lindsey Hall
Study Guide
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This 12 page Study Guide was uploaded by Mallyna Sessions on Tuesday November 3, 2015. The Study Guide belongs to MKT 313 at University of Alabama - Tuscaloosa taught by Kris Lindsey Hall in Fall 2015. Since its upload, it has received 211 views. For similar materials see Marketing in Marketing at University of Alabama - Tuscaloosa.


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Date Created: 11/03/15
Ch 2 - Marketing across cultural boundaries is a difficult and challenging task, because there are cultural variations in: o Language o Demographics o Values o Nonverbal Communication - Globalization: product exports and imports; exporting and importing of values, lifestyle, and attitudes; changing from traditional view of one way influence to mutual influence - Four major types of world citizen: o Global citizens- positive toward international brand; concerned with Corporate Social Responsibility (CSR) o Global dreamers- positive toward international brand; less concerned with CSR o Anti-globals: negative toward international brand; don’t trust multinationals o Global Agnostics: don’t base decisions on global brand name - Culture: the complex whole that includes knowledge, belief, art, law, morals, customs, any other capabilities, and habits acquired by humans as members of society. - Variations in culture values o 1. Other-Oriented Values: How a society views the appropriate relationships between individuals and groups within the society § Individual/ collective § Youth/ Age § Extended/ Limited Family § Masculine/ Feminine § Competitive/ Cooperative § Diversity/ Uniformity o 2. Environment- Oriented Values: How a society relates to its economic, technical, and physical environment § Cleanliness § Performance/ Status § Tradition/ Change § Risk Taking/ Security § Problem solving/ Fatalistic (Fatalistic- what will happen is going to happen) § Nature o 3. Self-Oriented Values: What objects and approaches to life do the society’s individual members find desirable § Active/ Passive § Sensual Gratification/ Abstinence § Material/ Nonmaterial § Hard Work/ Leisure § Postponed Gratification/ Immediate Gratification § Religious/ Secular - Verbal communication systems= language - Nonverbal communication systems are: time, Etiquette, things, agreements, relationships, symbols, space o Time: two major ways: time perspective and interpretations; Monochronic- Be on time or early; Polychronic- says 7:30 and gets there at 9 o Space: overall use and meanings assigned to space vary widely among different cultures o Symbols: colors, animals, shapes, numbers, and music have varying meanings across cultures; failure to recognize the meaning assigned to a symbol can cause serious problems o Relationships: how quickly and easily do cultures from relationships and make friends o Agreements: how does a culture ensure business obligations are honored? How are disagreements resolved?; Some cultures rely on a legal system, others rely on relationships, friendships, etc. o Things: The cultural meaning of things leads to purchase patterns that one would not otherwise predict; the differing meanings that cultures attach to things, including products, make gift giving a particularly difficult task o Etiquette: The generally accepted ways of behaving in social situations; behaviors considered rude or obnoxious in one culture may be quite acceptable in another; normal voice, tone, pitch, and speed of speech differ between cultures and languages, as do the use of gestures. - A global teenage culture- mass media and the Internet have has an impact of uniformity among teens around the world. Technology is important factor but U.S. youth and brands no longer lead the way. - Demographics- describe a population in terms of its size, structure, and distribution; Disposable income; the rapid growth in personal income in parts of china has led to an overall market explosion. - Demographics are both a result and a cause of cultural values o Purchasing Power Parity PPP: based on the cost of a standard market basket of products bought in each country - Glocalization: global localization; idea you are going to change a product to fit a certain market. - Considerations in Approaching a Foreign Market o 1. Is the geographic area homogeneous or heterogeneous with respect to culture? o 2. What needs can this product or a version of it fill in this culture? o 3. Can enough of the people needing the product afford the product? o 4. What values or patterns of values are relevant to the purchase and use of this product? o 5. What are the distribution, political, and legal structures for the product? o 6. In what ways can we communicate about the product? o 7. What are the ethical Implications of marketing this product in the country? Ch. 3 - Cultural Values- Widely held beliefs that affirm what is desirable in a specific culture. - Last chapter we talked about culture changes across cultures, this chapter regards changes within cultures, specifically within the American culture. - We must understand the underlying value shifts in order to understand current and future consumer. - Variations in American Culture o Self-Oriented Values: reflect the objectives and approaches to life that the individual members of society find desirable § Religious/ Secular: Secular society, but religion is important to many as evidenced by behaviors and politics. § Sensual Gratification/ Abstinence: Traditionally abstinent due to religious roots, but now much more accepting of gratification § Postponed Gratification/ Immediate Gratification: immediate gratification; slightly curbed by recession but coming back strongly § Hard Work/ Leisure: Strong tradition of Hard Work § Material/ Nonmaterial: strong material orientation; subgroup of consumers who engage in voluntary simplicity § Active/ Passive: Strong tradition of activeness o Environment-Oriented Values: prescribe a society’s relationship to its economic and technical as well as it’s physical environment. § Cleanliness: strong tradition in cleanliness § Tradition/ Change: strong tradition of being receptive to change, seeing a slight shift away due, in part, to aging population § Risk Taking/ Security: risk taking is highly valued, but this has fluctuated over time § Problem Solving/ Fatalistic: strong tradition of problem solving § Admire/ Overcome Nature: traditionally overcome, but dramatically shifting in the last 30 years § Performance/ Status: tradition of performance o Other-Oriented Values: reflect a society’s view of the appropriate relationships between individuals and groups with in that society § Individual/ collective: strong emphasis on individualism § Youth/ Age: youth; recently trending away towards age a bit § Extended/ Limited Family: limited (nuclear) family § Masculine/ Feminine: masculine, becoming less § Competitive/ Cooperative: strong tradition of competition § Diversity/ Uniformity: diversity, especially among younger generations; moved away from uniformity. - A) Green Marketing o Develop products whose production, use, or disposal is less harmful to the environment than the traditional versions of the products o Developing products that have a positive impact on the environment o Tying the purchase of a product to an environmental organization or event - For example: Hybrid Vehicles - Shades of Green Market Segmentations: o 1. Eco-Centrists and Respectful Stewards: some highly motivated overall and will pay more for eco-friendly o 2. Proud Traditionalists and Frugal Earth Mothers: some motivated by efficiency, practicality, and family o 3. Eco-Villains: don’t buy into environmental products; some very dismissive of environmental concerns § Greenwashing- promoting environmental benefits that are unsubstantiated and/or on which they don’t deliver - B) Cause Related Marketing (CRM): marketing that ties a company and its products to an issue or cause with the goal of improving sales or corporate image while providing benefits to the cause - C) Marketing to Gay and Lesbian Consumers: LGBTQA+ **Massive Market o What American Values are being emphasized? Diversity, independence, individual rights - Product and Communication Issues Include: o 1. Does the product need to be modified to meet the needs of the market? o 2. Should the firm advertise in gay-oriented media using its standard ads? o 3. Should it advertise in gay media using ads with gay themes? o 4. To what extent should the firm be involved in gay community activities? o 5. Should its ads in mainstream media include gay themes? § EXAMPLE: MACY’S VS. GAP - Implicit vs. Explicit: implicit- subtle (wedding cake); explicit- super obvious (2 men in one shirt) - Market Segmentation: o Traditional Housewife: not employed outside of house and content o Trapped Housewife: not employed and not content o Trapped Working Wife: Working and not content o Career Working Woman: working and content - Gender Identity vs. Gender Roles o Identity: Traits associated with femininity (e.g. compassion) and masculine (e.g. dominance) o Roles: behaviors considered appropriate for male and females in a certain society - Ascribed vs. Achievement o Ascribed: attribute over which an individual has little or no control (like gender) o Achievement: based on performance criteria over which as individual has control (like profession) - Traditional vs. Modern Gender orientation o Traditional: husband provides for the family and wife runs the household o Modern: husband and wife share responsibilities and both work and share homemaking responsibilities - Product Strategy Example: Barbra’s way tools- cushion handles; Smith and Wesson- redesigned to “fit” women’s hands - Retail Strategy: men are increasing shopping for the household, which is usually done by women, and women shopping for masculine stuff like power tools and lawn mowers. Retailers now making products to fit both. Ch. 7 - Group: two or more individuals who share a set of norms, values, or beliefs, and have certain implicitly or explicitly defined relationships to one another such that their behaviors are interdependent. - Reference Group: a group whose presumed perspectives or values are being used by an individual as the basis for his/her current behaviors - Four Primary Criteria for classifying groups: o 1. Membership: yes or no; in or out o 2. Strength of Social Tie: our affiliation with the group § Primary groups: immediate family, bffs, FREQUENT INTERACTION AND STRONG TIES § Secondary groups: co-workers, LESS FREQUENT INTERACTION AND WEAKER TIES o 3. Type of Contact: direct or indirect; face to face or emails o 4. Attraction: desirable the membership is § Dissociative group: undesirable; could steer you to something else § Aspiration Reference Groups: positively desirable; its important to us - Consumption subculture: group that self-selects on the basis of a shared commitment to a particular product or consumption activity o 1. Identifiable Hierarchy o 2. Set of Shared Beliefs and Values o 3. Unique Jargon and Rituals - Brand Communities: non-geographically bound and based on set of social relationships among owners of a brand o Marketing and Brand Communities: JEEP; p.217-218;222 - Online Communities: a community that interacts over time around a topic of interest on the internet. - Online Social Network Site: An online social network site is a web based service that allows: o Create a profile o List of users o View and traverse their list - Types of Reference Group Influence: o 1. Informational: group provides useful info; track-same health products as other runners o 2. Normative: enhancing and reason for having or- reasons for not having o 3. Identification: use group membership to express values; High level of involvement; value expressive-group values=my values - Two Important Consumption situation characteristics: o Private/ visible : § Private: weak reference group influence on brand § Visible: strong reference group influence on brand o Necessity/ Nonnecessity: § Nonnecessity: strong reference group influence on product § Necessity: weak reference group influence on product - Three Additional determinants: o Commitment o Relevance o Confidence - Marketing Strategies based on reference group influence o 1. Personal Sales Strategies: using first person in group as model and putting social pressure on last person o 2. Advertising Strategies: using expert reference (informational) or showing the “type” of users in the advertisement that are target market; implicit or explicit suggestions that not using product will have positive or negative outcomes (normative) - WOM (word of mouth): individuals sharing info with other individuals in verbal form, include face-to-face, phone or internet - Opinion Leaders: the “go to person” for specific types of information, this person filters, interprets, and passes along information. Enduring environment; category specific - Flow of Communications: depends on the degree to which an opinion leader is involved in the communication process. o Two step flow: no interruption by opinion leaders o Multi-step flow: some influence by opinion leader - 1. Situations in which WOM and Opinion Leadership Occur: product involvement and product Knowledge o individual seeks info from another o individual volunteers infor - 2. Characteristics of Opinion Leaders o 1. Market Mavens: a generalized market influencer who provides significant amounts of info about products, shops, etc. o 2. Influentials: 18% of population nut use broad social networks to influence the other 90% o 3. E-Fluentials: they wield significant online and offline influence - A) Advertising: celebrity endorser - B) Product Sampling: completely free to try and buy later, operant conditioning - C) Retailing/ Personal Selling: rewarding people for referring people - D) Creating Buzz: Virtual market, Blogs, Twitter - Innovation: an idea, practice, or product perceived to be new by the relevant individual or group - Categories of Innovations o 1. Continuous: Adoption of innovation requires relatively minor changes in behavior(s) that are unimportant to the customer o 2. Dynamically continuous: Adoption of this type of innovation requires a moderate change in an important behavior or a major change in a behavior of low or moderate importance to the individual o 3. Discontinuous: Adoption of this type of innovation requires major changes in behavior of significant importance to the individual or group - Diffusion Process: manner which innovations spread throughout market - Factors affecting the spread of innovations: o 1. Type of Group: more accepting the group faster innovation o 2. Type of Decision: fewer people involved the faster innovation o 3. Marketing Effort: greater marketing effort the faster innovation o 4. Fulfillment of felt need: greater the need the faster innovation o 5. Compatibility: greater compatibility with values the faster innovation o 6. Relative Advantage: more perceived as advantage to competition the faster innovation o 7. Complexity: easier to use, faster innovation o 8. Observability: easier benefits are to see the faster innovation o 9. Trialability: lower risk and lower cost of trial the faster innovation o 10. Perceived Risk: less perceived risk the faster innovation - Innovators: risk takers; resources, highly educated, younger - Early Adopters: opinion leaders; successful and well educated - Early Majority: cautious toward adoption but follow shortly; socially active but rarely considered leaders - Late Majority: Delayed participation; older, less socially active - Laggards: locally oriented; limited social interaction and tend to focus on the past. Ch. 13 - Four types of situations that can influence CB: o 1. The Communications Situations: receive the communication from the company; situation consumer receives information o 2. The Purchase Situation: situation in which a purchase is made o 3. The Usage Situation: situation in which the product is, or may become, appropriate o 4. The Disposition Situation: how you get rid of the product or product packaging § ex: mattress and cars - 5 key dimensions or characteristics are o 1. Physical Surroundings: décor, sounds, aroma, lighting, weather, how merchandise is arranged § Store Atmosphere: the sum of all the physical features of a retail environment § Atmosphere: influences consumer judgments of the quality of the store and the store’s image § Atmosphere is referred to as service scape when describing a service business such as a hospital, bank, or restaurant. § Components of physical surroundings: • Colors: create different feelings and attention levels; warm- red orange yellow VS. cool- blue purple green • Aromas: increase revisits, attention, pleasure, etc. environmental fragrancy • Music: influences mood and other behaviors; tempo • Crowding: generally, has a negative impact; less is better o 2. Social Surroundings: other individuals or things present in the particular situation o 3. Temporal Perspectives: deal with affect of time on consumer behavior o 4. Task Definition: the reason the consumption activity is occurring. Purchase for self vs. gift o 5. Antecedent States: features of the individual that are not lasting characteristics § moods: transient feeling states that are generally not tied to a specific event of object. Consuming as mood- regulation (e.g. “retail therapy”) § momentary conditions: temporary states of being (tired, ill, having extra money, being broke, etc.) - Ritual Situations: socially defined occasion that triggers a set of interrelated behaviors that occur in a structured format and that have symbolic meaning. Critical to marketers because they often involve prescribed consumption behavior. However, ritual behavior can involve injurious consumption, such as binge drinking. - 5 Steps for Developing situation-based marketing strategies: o 1. Use observational studies, focus group discussions, depth interviews, and secondary data to discover the various usage situations that influence the consumption of the product. o 2. Survey a larger sample of consumers to better understand and quantify how the product is used and the benefits sought in the usage situation by the market segment. o 3. Construct a person-situation segmentation matrix. o 4. Evaluate each cell in terms of potential. o 5. Develop and implement a marketing strategy for those cells that offer sufficient profit potential given your capabilities. Ch. 14 - Purchase Involvement: the level of concern for, or interest in, the purchase process, triggered by need to consider a particular purchase, and so it is temporary state influenced by the interaction of individual, product, and situational characteristics - Types of Decision making o 1. Nominal Decision Making: habitual decision making; involves no decisions per se; low involvement § brand loyal purchases § repeat purchases o 2. Limited Decision Making: involves internal and limited external search, few alternatives, simple decision rules on few attributes, and little post purchase evaluation o 3. Extended Decision Making: involves extensive internal and external search followed by a complex evaluation of multiple alternatives; high involvement - The process of problem Recognition o Desired State: where consumer would like to be in this point in time o Actual State: condition consumer perceives him or herself at this point in time o Problem Recognition: search decision initiated; when actual state and desired state don’t match. - Types of Consumer problems: o Active problem: one the consumer is aware of or will become aware of ** convince consumer the brand is the best o Inactive problem: consumer not aware *** convince 1. There is a problem 2. Your brand is the best. - Marketing strategy and problem recognition: o 1. Discovering Consumer Problem: • Intuition: depends on experience and logic, might not always be correct • Marketing Research § Surveys and focus groups use: • 1. Activity Analysis: particular activity to determine the problems during the activity • 2. Product Analysis: purchase or use of a particular product or brand • 3. Problem Analysis: starts with a problem • 4. Human Factors: human capabilities research • 5. Emotion Research: emotions associated o 2.Responding to consumer problems § 1. Developing a new product or altering existing one § 2. Modifying channels of distribution § 3. Changing pricing policy § 4. Revising advertising strategy o 3. Helping Consumers Recognize Problems § Generic Problem Recognition: variety of brands; increase generally results of expansion in total market § Selective Problem Recognition: only one brand can solve; to gain or maintain market share o 4. Suppressing Problem Recognition: minimize for current users of brand CH. 15 - Internal Search: search of long-term memory to determine 1. A satisfactory solution 2. What are types of potential solutions 3. Ways to compare the solutions - External Search: on going; what I have to go and look for - NOTE: External Search is important to marketers because it is when they have access to consumers - NOTE: Even an external search usually starts with an internal search which will produce a set of guides (e.g. must have attributes) or decision constraints (e.g. max price that can be paid) that will impact the external search. - Consumer decisions require info about: o Evaluative Criteria: what must this product do? What am I looking for in a ______? o Appropriate Alternatives: brands, stores, etc. o Alternative Characteristics: how well does each alternative, meet the different things are looking for? § All potential alternatives (brands, products) • Awareness set: Alternatives the consumer is aware of • Unawareness set: alternatives the consumer is not aware of o Evoked Set: alternatives given consideration o Inert Set: backup alternatives o Inept Set: avoided alternatives § Specific Alternative: purchased § Alternatives Considered, but not purchased - Sources of information o Memory of past searches, personal experiences, and low-involvement learning o Personal Sources; such as friends, family, and others o Independent Sources, such as magazines, consumer groups, and government agencies o Marketing sources, such as sales personnel, websites, and advertising o Experiential sources, such as inspection or product trial - External Search Likelihood o Market Characteristics: increased search; number of alternatives; wider price range; store concentration; information availability o Product Characteristics: increase search; price; differentiation across brands; positive products o Consumer Characteristics: learning experience=decreased search; social status and perceived risk= increase search; shopping orientation, age, and level involvement=mixed o Situation Characteristics: purchase of self=decrease search; social surroundings are mixed; time availability increase - Nominal Strategy: o Maintenance Strategy: keep them buying your brand; evoked o Disruption Strategy: disrupt current decision pattern, free samples; not evoked - Limited Strategy o Capture Strategy: to try to set apart from limited options considered; evoked o Intercept Strategy: intercept consumer during search; not evoked - Extended Strategy o Preference Strategy: structure information to make brand preferred; evoked o Acceptance Strategy: must attract attention and motivate to learn about your brand; not evoked. - Mobile Search: next major growth arena for firms; 84% of U.S. adults have mobile phones Ch. 16 - Assumption vs. Reality o 1. Assumption: consumers seek one optimal solution to a problem and choose on that basis § reality: consumers have all sorts of “metagoals” that are different from this o Assumption: Consumers have the skill and motivation to find the optimal solution § Reality: consumers often lack both the skill or motivation to do so o Assumption: The optimal solution does not change as a function of situational factors such as time pressure, task definition, or competitive context § Reality: context effects are common - Types of Choice Process o 1. Affective Choice: affective choices tend to be more holistic, A brand is not decomposed into distinct components for separate evaluation; Evaluations generally focus on how they will make the user feel as they are used; choices are often based primarily on the immediate emotional response to the product or service. o 2. Attitude-Based Choice: Involves the use of general attitudes, summary impressions, intuitions, or heuristics: no attribute-by- attribute comparisons are made at the time of choice; more likely when under time pressure or with low motivation o 3. Attribute-Based Choice: requires the knowledge of specific attributes at the time the choice is made, and it involves attribute- by- attribute comparisons across brands; more likely if information is accessible or with high motivation - Evaluation Criteria: the various dimensions, features, or benefits a consumer looks for in response to a specific problem; they are typically associated with desired benefits and can differ in: o Type- tangible (cost, performance) or intangible (style, taste, prestige, image, feelings) o Number- how many things matter? o Importance- which is most important to you? - Determination of which evaluative criteria are used o Direct methods include asking consumers what criteria they use in a particular purchase o Indirect techniques assume consumers will not or cannot state their evaluative criteria § Projective techniques: allow the respondent to indicate the criteria someone else might use § Perceptual mapping: researcher uses judgment to determine dimensions underlying consumer evaluations of brand similarity (consumer looks at pairs of brands and tells which pairs are most similar to each other- judgment is based on how consumers differentiated the brands.) - Measuring consumer judgments of brand performance on specific attributes can include: o Rank ordering scales o Semantic Differential Scales o Likert Scales


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