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Marketing Exam 1
Intro, Materialism, Sustainability, CSR, Market Segmentation, Target Marketing, Positioning, Consumer Behavior, Cognitive Psych, Marketing Research.
73
Marketing
Undergraduate 2
02/15/2010

Additional Marketing Flashcards

 


 

Cards

Term
What is the difference between the production and marketing processes?
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

Term
What percent of price pays for marketing activities?
Definition
about 50% of every dollar spent
Term
Marketing encourages research and innovation. Define innovation.
Definition
The development of and spread of new ideas, goods, and services.
Term
What is the difference between micro and macro marketing?
Definition

Micro- the set of activities performed by organizations

Macro- a social process that directs the flow of goods from consumers to producers

Term
What are economies of scale?
Definition
When a company produces larger numbers of a particular product, the cost of each unit goes down
Term
Describe the 8 functions of marketing.
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

 

Term

What is an intermediary?

What are the 2 types of intermediaries?

Definition

(Middleman)- Someone who specializes in trade rather than production

Includes retailers and wholesalers

Term
What is a command directed economy?
Definition
Government officials decide what and how much is produced and distributed and boy whom, when, and to whom, and why.
Term
What is a market directed economy?
Definition
Individual decisions of the many producers and consumers make macro-level decisions for the whole economy.
Term
What are some characteristics of a market-directed economy?
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.

Term
What is social responsibility?
Definition
A firm's obligation to improve its positive effects on society and reduce its negative effects. 
Term
What are some characteristics of a command economy?
Definition

-"Planned" economies

-Producers have little choice about what to produce

-Consumers have some choice- but it is limited

Term
What is included in the marketing management process?
Definition

1) Planning marketing activities

2) Implementation of plans

3) Controlling these plans

Term
What is strategic planning?
Definition
The managerial process of developing and maintaining a match between an organization's resources and its market opportunities
Term
What does a marketing strategy specify?
Definition
The target market and the related marketing mix.
Term
What is the marketing mix?
Definition

The controllable variables the company puts together to satisfy their target market.

Variables = 4 P's

Term
What are the 4 P's?
Definition
Product, Price, Promotion, Place
Term
What is the difference between target and mass marketing? Which is more beneficial?
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

Term
What is the difference between a marketing plan and a marketing strategy?
Definition
A marketing plan IS a marketing strategy PLUS the time-related details for carrying it out.
Term
What should a marketing plan include?
Definition

1. What marketing mix will be offered, to whom, and for how long

2. What company costs will be needed

3. Expected results

Term
What is the purpose of a marketing program?
Definition
It blends all of the firm's marketing plans into one big plan
Term
What is customer equity? How is it different from profit?
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

Term
What is competitive advantage?
Definition
A firm has competitive advantage when the target market sees its marketing mix as better than a competitor's mix
Term
What is differentiation?
Definition
Differentiation means that the marketing mix is distinct from AND better than what is available from a competitor
Term
What is an S.W.O.T analysis?
Definition

It identifies strengths, weaknesses, opportunities, and threats of a firm.

 

Term
Market penetration?
Definition
Present products, present markets
Term
Market development?
Definition
Present product, new market
Term
Product development?
Definition
New product, present market
Term
Diversification?
Definition
New product, new market
Term
What is discretionary income?
Definition
What is left of income after paying taxes and paying for necessities
Term
What are the categories in the hierarchy of needs?
Definition

Physiological needs- food, drink, rest, sex

Safety needs- health, protection

Social needs- friendship, love, acceptance

Personal needs- self-esteem, accomplishment, fun

Term
What is perception?
Definition
How we gather and interpret information from the world around us.
Term
What is selective exposure?
Definition
We only notice info that is interesting to us
Term
What is selective perception?
Definition
We screen out or modify ideas, messages, and info that conflict with previously learned attitudes or beliefs
Term
What is selective retention?
Definition
We only remember what we want to
Term
What are the steps of the learning process?
Definition
Drive, cues, response, reinforcement
Term
How does reinforcement affect the buying process?
Definition
It strengthens the relationship (either positively or negatively) between cues and response based on consumer satisfaction
Term
What do marketers know about personality traits? Is this helpful?
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.
Term
What have marketers replaced personality research with?
Definition
Psychographics or lifestyle analysis
Term
What other factors influence customer buying behavior?
Definition

Purchase situation=surroundings or time

 

Term
Describe the adoption process.
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

Term
What is a marketing information system?
Definition
Continually gathering, accessing and analyzing information that marketing managers need to make ongoing decisions
Term
What is a marketing model?
Definition
a statement of relationships among marketing variables
Term
What is a basic definition of marketing?
Definition
The study of exchange
Term
What is marketing's first task?
Definition

Discovering consumer needs

ex: Pakistani food restaurant fails, even though its good, because there is no demand

Term
What is marketing's second task?
Definition
Satisfying consumer needs
Term
What are some different orientations/approaches to marketing?
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

Term
What are the four types of benefits?
Definition

-Functional: hammer, lamp

-Social: cell phone, facebook

-Personal: make up, gym membership

-Experiential- football game, movie

Term
What are four types of costs?
Definition

-Monetary

-Temporal (time)

-Psychological (stress, tiredness)

-Behavioral (energy)

Term
In terms of cost & benefit, what is the goal of marketing?
Definition
Add benefit, subtract (non-monetary) costs
Term
How are marketing and materialism related?
Definition

Marketing promotes materialism

However, it does NOT create needs

Term
What is sustainable development?
Definition
Balancing economic growth and social needs with the natural environment.
Term
What challenges are faced in sustainable development?
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

Term
What kind of consumers are socially responsible?
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

Term
What main ways do consumers differ so that segmentation is necessary?
Definition

-Differences in buying habits

-Differences in the way the good/service is used

-Different motives for buying

Term
Why is market segmentation beneficial?
Definition

-Doesn't waste resources on a certain segment

 

Term
What are the types of market segmentation?
Definition

-Demographic: age, gender, ethnicity, income, education, occupation, family type

-Geographic: nation, region, urban/rural, climate

-Psychographic: attitudes/lifestyles

-Purchase behavior

-Benefit

Term
What are the different categories of purchase behavior?
Definition

-Loyalty status: brand loyal vs. variety seeking

-User status: user, nonuser, former user

-Usage: heavy, medium, light

Term
What is niche marketing?
Definition
One product for one segment
Term
Differentiated marketing
Definition
Multiple products for multiple segments
Term
Individualized marketing
Definition
customizing product/service for an individual
Term
What five qualities lead to effective segmentation, and thus profitability?
Definition

Measurable

Substantial

Accessible

Differential

Actionable

Term
What does competitive based positioning rely on?
Definition
Category membership & points of difference
Term
What is goal positioning based on?
Definition
Brand essence (personality)
Term
What are some decision making sets?
Definition

TOTAL

AWARENESS

CONSIDERATION

CHOICE

DECISION

Term
What are correlational inferences?
Definition
Associations (positive or negative) between 2 attributes
Term
What is the country of origin effect?
Definition

The assumption that if something is produced in a certain country it must be good

Germany-beer

KC-barbeque

Term
What are some major heuristics?
Definition

-Representativeness: stereotyping

-Availability: most readily availably due to recency or vividness

-Anchoring- discounting!!!

Term
What is the marketing research process?
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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