Term
| What is the difference between the production and marketing processes? |
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Definition
Production- actually making goods or performing services
Marketing- providing needed direction for production and making sure that the right goods and services are produced and find their way to customers |
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Term
| What percent of price pays for marketing activities? |
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Definition
| about 50% of every dollar spent |
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Term
| Marketing encourages research and innovation. Define innovation. |
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Definition
| The development of and spread of new ideas, goods, and services. |
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Term
| What is the difference between micro and macro marketing? |
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Definition
Micro- the set of activities performed by organizations
Macro- a social process that directs the flow of goods from consumers to producers |
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Term
| What are economies of scale? |
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Definition
| When a company produces larger numbers of a particular product, the cost of each unit goes down |
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Term
| Describe the 8 functions of marketing. |
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Definition
Buying- looking for and evaluating g&s
Selling- promoting g&s (ads)
Transporting- movement of goods from one place to another
Storing- holding goods until consumers need them
Standardization & Grading- sorting products according to size and quality
Financing- providing $ to perform such activities
Risk taking- understanding uncertainties involved in marketing process
Marketing Info- collection, analysis, and distribution of all info needed to plan marketing process
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Term
What is an intermediary?
What are the 2 types of intermediaries? |
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Definition
(Middleman)- Someone who specializes in trade rather than production
Includes retailers and wholesalers |
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Term
| What is a command directed economy? |
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Definition
| Government officials decide what and how much is produced and distributed and boy whom, when, and to whom, and why. |
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Term
| What is a market directed economy? |
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Definition
| Individual decisions of the many producers and consumers make macro-level decisions for the whole economy. |
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Term
| What are some characteristics of a market-directed economy? |
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Definition
-Prices are a rough measure of how society values goods & services.
-Consumers enjoy freedom of coice
-Government regulates interest rates, money supply, broadcasting, wages and prices. |
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Term
| What is social responsibility? |
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Definition
| A firm's obligation to improve its positive effects on society and reduce its negative effects. |
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Term
| What are some characteristics of a command economy? |
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Definition
-"Planned" economies
-Producers have little choice about what to produce
-Consumers have some choice- but it is limited |
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Term
| What is included in the marketing management process? |
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Definition
1) Planning marketing activities
2) Implementation of plans
3) Controlling these plans |
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Term
| What is strategic planning? |
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Definition
| The managerial process of developing and maintaining a match between an organization's resources and its market opportunities |
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Term
| What does a marketing strategy specify? |
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Definition
| The target market and the related marketing mix. |
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Term
| What is the marketing mix? |
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Definition
The controllable variables the company puts together to satisfy their target market.
Variables = 4 P's |
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Term
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Definition
| Product, Price, Promotion, Place |
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Term
| What is the difference between target and mass marketing? Which is more beneficial? |
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Definition
Target- marketing mix is tailored to fit some specific target customers
Mass- aims at everyone with the same marketing mix
Target marketing is ALWAYS more beneficial |
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Term
| What is the difference between a marketing plan and a marketing strategy? |
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Definition
| A marketing plan IS a marketing strategy PLUS the time-related details for carrying it out. |
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Term
| What should a marketing plan include? |
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Definition
1. What marketing mix will be offered, to whom, and for how long
2. What company costs will be needed
3. Expected results |
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Term
| What is the purpose of a marketing program? |
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Definition
| It blends all of the firm's marketing plans into one big plan |
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Term
| What is customer equity? How is it different from profit? |
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Definition
Customer equity is the expected earnings stream of a firms current and prospective customers
Profit is the difference between the firm's revenues and the cost it runs up to make those sales |
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Term
| What is competitive advantage? |
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Definition
| A firm has competitive advantage when the target market sees its marketing mix as better than a competitor's mix |
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Term
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Definition
| Differentiation means that the marketing mix is distinct from AND better than what is available from a competitor |
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Term
| What is an S.W.O.T analysis? |
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Definition
It identifies strengths, weaknesses, opportunities, and threats of a firm.
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Term
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Definition
| Present products, present markets |
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Term
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Definition
| Present product, new market |
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Term
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Definition
| New product, present market |
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Term
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Definition
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Term
| What is discretionary income? |
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Definition
| What is left of income after paying taxes and paying for necessities |
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Term
| What are the categories in the hierarchy of needs? |
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Definition
Physiological needs- food, drink, rest, sex
Safety needs- health, protection
Social needs- friendship, love, acceptance
Personal needs- self-esteem, accomplishment, fun |
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Term
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Definition
| How we gather and interpret information from the world around us. |
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Term
| What is selective exposure? |
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Definition
| We only notice info that is interesting to us |
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Term
| What is selective perception? |
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Definition
| We screen out or modify ideas, messages, and info that conflict with previously learned attitudes or beliefs |
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Term
| What is selective retention? |
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Definition
| We only remember what we want to |
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Term
| What are the steps of the learning process? |
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Definition
| Drive, cues, response, reinforcement |
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Term
| How does reinforcement affect the buying process? |
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Definition
| It strengthens the relationship (either positively or negatively) between cues and response based on consumer satisfaction |
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Term
| What do marketers know about personality traits? Is this helpful? |
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Definition
| They know that personality traits affect buying behavior. This has not been especially helpful. Marketers have been unsuccessful in using personality traits to effectively sell products. |
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Term
| What have marketers replaced personality research with? |
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Definition
| Psychographics or lifestyle analysis |
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Term
| What other factors influence customer buying behavior? |
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Definition
Purchase situation=surroundings or time
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Term
| Describe the adoption process. |
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Definition
Awareness- knowing the product exists
Interest- gathering of general info about the product
Evaluation- a mental trial, application of the product to his/her life
Trial- (this step may be skipped) purchase of the product, experiment use
Decision- adoption or rejection of the product
Confirmation- further reinforcement |
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Term
| What is a marketing information system? |
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Definition
| Continually gathering, accessing and analyzing information that marketing managers need to make ongoing decisions |
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Term
| What is a marketing model? |
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Definition
| a statement of relationships among marketing variables |
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Term
| What is a basic definition of marketing? |
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Definition
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Term
| What is marketing's first task? |
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Definition
Discovering consumer needs
ex: Pakistani food restaurant fails, even though its good, because there is no demand |
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Term
| What is marketing's second task? |
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Definition
| Satisfying consumer needs |
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Term
| What are some different orientations/approaches to marketing? |
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Definition
Production: produce it, then let consumers come to you
Sales: produce it, then get the customers to buy it
Marketing*: Find out what customers want, then produce it |
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Term
| What are the four types of benefits? |
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Definition
-Functional: hammer, lamp
-Social: cell phone, facebook
-Personal: make up, gym membership
-Experiential- football game, movie |
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Term
| What are four types of costs? |
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Definition
-Monetary
-Temporal (time)
-Psychological (stress, tiredness)
-Behavioral (energy) |
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Term
| In terms of cost & benefit, what is the goal of marketing? |
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Definition
| Add benefit, subtract (non-monetary) costs |
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Term
| How are marketing and materialism related? |
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Definition
Marketing promotes materialism
However, it does NOT create needs |
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Term
| What is sustainable development? |
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Definition
| Balancing economic growth and social needs with the natural environment. |
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Term
| What challenges are faced in sustainable development? |
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Definition
-Inherit complexity of the problem: over focus on one area, solutions require changes, common definition
-Conflicting interests: corporate interests, national interests, personal interests, interest groups
-Post-modernization factors: population growth, science and technology, large scale industrialism, materialism |
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Term
| What kind of consumers are socially responsible? |
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Definition
Simplifiers
Eco-efficient: reflect their social concern
Better world: want to help the world
Quality of life: less needs=less worry
Involuntary: people forced to simplify - financial reasons |
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Term
| What main ways do consumers differ so that segmentation is necessary? |
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Definition
-Differences in buying habits
-Differences in the way the good/service is used
-Different motives for buying |
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Term
| Why is market segmentation beneficial? |
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Definition
-Doesn't waste resources on a certain segment
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Term
| What are the types of market segmentation? |
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Definition
-Demographic: age, gender, ethnicity, income, education, occupation, family type
-Geographic: nation, region, urban/rural, climate
-Psychographic: attitudes/lifestyles
-Purchase behavior
-Benefit |
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Term
| What are the different categories of purchase behavior? |
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Definition
-Loyalty status: brand loyal vs. variety seeking
-User status: user, nonuser, former user
-Usage: heavy, medium, light |
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Term
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Definition
| One product for one segment |
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Term
|
Definition
| Multiple products for multiple segments |
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Term
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Definition
| customizing product/service for an individual |
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Term
| What five qualities lead to effective segmentation, and thus profitability? |
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Definition
Measurable
Substantial
Accessible
Differential
Actionable |
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Term
| What does competitive based positioning rely on? |
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Definition
| Category membership & points of difference |
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Term
| What is goal positioning based on? |
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Definition
| Brand essence (personality) |
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Term
| What are some decision making sets? |
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Definition
TOTAL
AWARENESS
CONSIDERATION
CHOICE
DECISION |
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Term
| What are correlational inferences? |
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Definition
| Associations (positive or negative) between 2 attributes |
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Term
| What is the country of origin effect? |
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Definition
The assumption that if something is produced in a certain country it must be good
Germany-beer
KC-barbeque |
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Term
| What are some major heuristics? |
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Definition
-Representativeness: stereotyping
-Availability: most readily availably due to recency or vividness
-Anchoring- discounting!!! |
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Term
| What is the marketing research process? |
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Definition
1. Defining the problem
2. Developing the research plan
3. Collect the information
4. Analyze the information
5. Present the findings |
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