EXAM 1

Exam 1

100

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?

Purchasing Power

100

What is an SBU (Strategic Business Unit)?

This is a stand alone division of a large company that operates as an independent company/unit

100

What has been the greatest impact on marketing in recent years?

Social Media

100

What contributes to an external stimulus?

Marketing

100

Define Political Structure

The countries that grow the most economically are the one's that have less governmental control (which equals max personal freedom)

200

List the two major legislations and define them (ex. FTC Act of 1914)

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

200

1.) What is Market Share?

1.) Company Sales DIVIDED BY Industry Sales

200

What is a measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year?

1.) Inflation

200

Define Cognitive Dissonance

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.

200

Define Customer Lifetime Value

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.

300

What are the 3 types of research

Exploratory, Descriptive and Causal

300

Describe Ansoff's Model

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

300

List the 5 steps of research

a. Define the problem b. Develop the research plan c. Collect relevant information d. Develop findings e. Take marketing actions

300

List the 3 social factors that influence marketing

Attitudes, Values and Lifestyle

300

Define Global Marketing Standardization vs. Multi-Domestic Strategy and list the advantage for each

Global Marketing Standardization - Production of uniform products that can be sold the same way all over the world. The advantage here is that its cheap to produce Multi-Domestic Strategy - Subsidiaries of multinational firms are allowed to compete independently in domestic markets. The advantage here is that you can customize your product.

400

What are the advantages/disadvantages of primary research?

Advantages - answers specific questions, current data, known data source, maintain secrecy Disadvantages - can be expensive, slow data collection, losing first mover advantage

400

Describe the types of Competitive Advantage

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)

400

What are the advantages/disadvantages of secondary research?

Advantages - time saving and inexpensive Disadvantages - out of date, not specific enough and definitions/categories not right

400

Define Selective Perception

individuals perceive/interpret what they want to in media messages while ignoring opposing viewpoints (Tabitha car example)

400

*What is the CREST Model?

Reference handout

500

What is CORPORATE SOCIAL RESPONSIBILITY?

The belief that the business has a responsibility to society as a whole.

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

500

Define and calculate the Net Promoter Score

A measure of a customer's willingness to recommend a company or a brand NPS = % promoter - % detractor

500

What are the factors of involvement and the highs/lows?

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)

500

What are the internal and external sources of secondary research?

Internal - Budgets, financial statements and sales calls External - U.S. Census report, trade association studies and internet based reports