EXAM 1

Chapter 1

100

What is Marketing?

The activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large.

200

What is the Marketing Concept?

This has three parts to it: 1.) Customer Focused - focuses on customer's wants/needs 2.) Profit Oriented - serves only the customer's that make you money 3.) Organizational Integration - marketing is a philosophy, not a concept

300

What are the 4 P's of the Marketing Mix?

1.) Product - tangible goods, services, image, value 2.) Place - key aspect of exchange of ownership 3.) Promotion - a.k.a. communication, informs, educates, persuades and reminds 4.) Price - this is the most flexible "P", TR = Q x P

400

Define Customer Value

Perceived benefits/price

500

1.) What is RELATIONSHIP MARKETING? 2.) What is CORPORATE SOCIAL RESPONSIBILITY?

1.) This links the organization to its individual customers, employees, suppliers and other partners for their mutual long-term benefit. 2.) The belief that the business has a responsibility to society as a whole.

Chapter 2

100

1.) What is Strategic Planning? 2.) What is an SBU (Strategic Business Unit)?

1.) This is the managerial process of creating and maintaining a fit between the organization's objectives/resources and the evolving market opportunities 2.) This is a stand alone division of a large company that operates as an independent company/unit

200

1.) What is Market Share? 2.) Define the 4 steps in the PLANNING phase of the Strategic Marketing Process

1.) Company Sales DIVIDED BY Industry Sales 2.) Planning Phase: 1. Define the Business - mission statement 2. Situation Analysis/Opportunity ID - SWOT Analysis 3. Market Product Strategy - Determine which products will be directed toward which customers (Ansoff's model) 4. Marketing Program - strategies of the 4 P's

300

1.) Describe Ansoff's Model 2.) What is a marketing plan?

1.) a. Market Penetration - present product/market b. Market Development - present product/new market c. Product Development - new product/present market d. Diversification - new product/new market 2.) it consists of a mission statement and a SWOT analysis a. Mission Statement - profoundly affects the firm's long run resource allocation, profitability and survival b. SWOT Analysis - identifies industry trends, analyzes competitors, assesses the organization and researches present and prospective customers and CREST forces

400

1.) Describe the types of Competitive Advantage 2.) What is a set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition?

1.) a. BROAD (industry wide) - cost (advantage here is low cost) and product/service differentiation (advantage here is product uniqueness) b. NARROW (market segment) - niche (can have either advantage of low cost or product uniqueness) 2.) Sustainable Competitive Advantage

500

Show us the BCG Grid!

STARS - high market growth rate/high market share QUESTION MARKS - high market growth rate/low market share CASH COWS - low market growth rate/high market share DOGS - low market growth rate/low market share

Chapter 3 & 8

100

1.) What has been the greatest impact on marketing in recent years? 2.) What is money that the consumer has left (after paying taxes) to use for necessities such as food, housing, clothing and transportation? 3.) What is measured by comparing income to the relative cost of a standard set of goods and services in different geographic areas, usually referred to as the cost of living?

1.) Social Media 2.) Disposable Income 3.) Purchasing Power

200

1.) What is a measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year? 2.) What is a period of economic activity characterized by negative growth which reduces demand for goods and services? 3.) List the two major legislations and define them (ex. FTC Act of 1914)

1.) Inflation 2.) Recession 3. a. CAN SPAM ACT - This act makes spam illegal, you have to be given the option to opt out b. The Children's Online Privacy Protection - you cannot market to children

300

1.) Describe Porter's 5 Force Model 2.) What are the 3 types of research 3.) List the 5 steps of research

1.) The organization is surrounded by the bargaining power of suppliers, bargaining power of buyers, threat of new entrants and threat of substitute offerings 2.) Exploratory, Descriptive and Causal 3.) a. Define the problem b. Develop the research plan c. Collect relevant information d. Develop findings e. Take marketing actions

400

1.) Define Primary and Secondary Research 2.) What are the advantages/disadvantages of primary research? 3.) What are the advantages/disadvantages of secondary research?

1.) Primary - facts and figures NEWLY collected for the project Secondary - facts and figures ALREADY recorded prior to the project, you should ALWAYS start with secondary data 2.) Advantages - answers specific questions, current data, known data source, maintain secrecy Disadvantages - can be expensive, slow data collection, losing first mover advantage 3.) Advantages - time saving and inexpensive Disadvantages - out of date, not specific enough and definitions/categories not right

500

1.) What are the internal and external sources of secondary research? 2.) Define Probability Sample 3.) Define and calculate the Net Promoter Score

1.) Internal - Budgets, financial statements and sales calls External - U.S. Census report, trade association studies and internet based reports 2.) A sample in which every element in the population has a known statistical likelihood of being selected (everyone has an equal chance of participating) 3.) A measure of a customer's willingness to recommend a company or a brand NPS = % promoter - % detractor

Chapter 5

100

1.) List the 5 steps of the Consumer Decision Making Process and define each step 2.) What contributes to an external stimulus?

1.) a. Problem Recognition - perceiving a need b. Info Search - seeking value internally and externally c. Alternative Evaluation - assessing value d. Purchase Decision - buying value e. Post Purchase Behavior - consuming/using value 2.) Marketing

200

1.) Define an evoked set 2.) What are the 3 ways to evaluate alternatives? 3.) Define Cognitive Dissonance

1.) a.k.a. Consideration Set, it is a group of brands, resulting from an information search in which a buyer can choose, once this happens you can make a decision. 2.) a. Analyze the product attributes b. Use the cutoff criteria (price) c. Rank attributes by importance 3.) a.k.a. Buyer's Remorse, it's the inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions.

300

1.) Define Customer Lifetime Value 2.) List the 4 factors that influence buying decisions 3.) List the 3 social factors that influence marketing

1.) The net present value of the stream of future profits expected over the customer's lifetime purchases, the total value of your relationship with the company your entire life. 2.) Culture, Social Class, individual Factors and Psychological Factors 3.) Attitudes, Values and Lifestyle

400

1.) Define the Family Life Cycle 2.) Define Selective Perception

1.) consists of the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors 2.) individuals perceive/interpret what they want to in media messages while ignoring opposing viewpoints (Tabitha car example)

500

1.) What are the factors of involvement and the highs/lows? 2.) When does a consumer use routine, limited or extended decision making?

1.) Factors include previous experience, interest, perceived risk of negative consequences and social visibility High Involvement - provide customers with easy access to product in, use comparative ads, use personal selling and introduce evaluation criteria for judging competition brands Low Involvement - link attributes to high involvement issues, maintain quality, avoid stock outs, reinforce knowledge and assure decision (reduce buyer's remorse with ads) 2.) Routine = Less involvement Limited = In the middle Extended = Most involvement

Chapter 7

200

Define an evoked set

a.k.a. Consideration Set, it is a group of brands, resulting from an information search in which a buyer can choose, once this happens you can make a decision.

500

List the benefits and negatives/concerns of global marketing

Benefits - expands economic freedom, spurs competition, raises productivity and living standards, offers access to foreign capital, global export markets and advanced technology, promotes higher labor and environmental markets and acts as a check on government power Negatives/Concerns - million of Americans have lost jobs, fear losing jobs, threat of outsourcing if workers do not accept pay cuts and vulnerability to operations moving offshore