CHAPTER 1
Introduction to Marketing
Introduction to Marketing
This broad marketing philosophy focuses on identifying and satisfying customer needs and wants, rather than simply pushing products the company already makes.
What is the marketing concept?
This classic planning tool examines a company's internal Strengths and Weaknesses alongside external Opportunities and Threats.
What is a SWOT analysis?
This type of buying behavior involves high consumer involvement and significant differences between brands common for expensive, infrequent purchases like a car or a college.
What is complex buying behavior?
This first step of the STP process involves dividing a broad market into smaller groups of consumers with shared characteristics or needs.
What is segmentation?
This type of research is used when a problem isn't well understood yet, often conducted through focus groups or informal interviews.
What is exploratory research?
This early marketing era assumes customers prefer products that are widely available and inexpensive, so companies focus on production efficiency above all else.
What is the production concept?
This step in strategic planning compares where a company currently stands to where it wants to be, often revealing problems like insufficient production capacity.
What is a gap analysis?
This type of buying behavior happens when involvement is low and brands are barely different, so consumers buy mostly out of routine.
What is habitual buying behavior?
Dividing a market based on age, income, gender, or family size is an example of this type of segmentation.
What is demographic segmentation?
This type of research describes the characteristics of a market or population, such as who buys a product and how often.
What is descriptive research?
This philosophy holds that consumers won't buy enough of a company's products unless the company undertakes a large-scale selling and promotion effort.
What is the selling concept?
In the BCG Matrix, a product with low market share in a slow-growing industry falls into this category.
What is a Dog?
A consumer picks a clothing brand mainly because most of their close friends wear it this purchase is driven primarily by this category of influence.
What is a social factor (reference groups)?
A sporting goods company builds separate ad campaigns for runners, hikers, and cyclists this is an example of this targeting strategy.
What is differentiated marketing?
This type of research tests cause-and-effect relationships, such as whether changing a price actually causes a change in sales.
What is experimental (causal) research?
Marketers who balance customer wants, company profit, and long-term societal well-being ,rather than just short-term sales are practicing this concept.
What is the societal marketing concept?
In the BCG Matrix, a product with high market share in a slow-growing industry generating steady cash with little reinvestment needed is this.
What is a Cash Cow?
Age, occupation, lifestyle, and economic situation are all examples of this category of factors that shape buying behavior.
What are personal factors?
This targeting strategy focuses all of a company's marketing effort on a single, narrow market segment or niche.
What is concentrated marketing?
Data collected firsthand by a company specifically to solve its own unique research problem as opposed to data someone else already published is called this.
What is primary data?
A company claims its product is 'environmentally friendly' but cannot back up the claim with evidence this is a violation of this ethical marketing principle.
What is transparency / truthful communication?
This Ansoff Matrix growth strategy means creating brand-new products for brand-new markets, making it the riskiest of the four growth strategies.
What is diversification?
This final stage of the consumer decision process occurs after the purchase and determines whether the buyer feels satisfaction or post-purchase dissonance.
What is post-purchase evaluation/behavior?
A streaming service calls itself home to 'the largest collection of independent films' to stand out from Netflix and Hulu. This is an example of this.
What is positioning through differentiation?
This is the very first step of the marketing research process, in which a company clearly states exactly what it needs to find out before designing a study.
What is defining the problem/research objectives?