Ch 1 – Marketing Basics
What is the core purpose of marketing?
To create value for customers and build profitable customer relationships.
What are the four steps in strategic planning?
Define company mission, set objectives, design business portfolio, plan strategies.
What is the marketing microenvironment?
Forces close to the company that affect its ability to serve customers.
What is a marketing information system (MIS)?
|A process for assessing, collecting, and analyzing marketing data.
What is word-of-mouth influence?
|Recommendations from trusted individuals that affect buying behavior.
What does STDP stand for in marketing?
|Segmentation, Targeting, Differentiation and Positioning.
What are market offerings?
Products, services, or experiences offered to satisfy customer needs or wants.
What is the BCG matrix used for?
Evaluating SBUs based on market growth and market share.
What is the marketing macroenvironment?
Wider societal forces that affect the microenvironment.
What is big data?
|Extremely large data sets from digital and traditional sources.
What is motivation in psychology?
|A need that presses the person to seek satisfaction.
What are the four major segmentation bases?
|Geographic, demographic, psychographic, behavioral.
What is a want?|A human need shaped by culture and individual personality.
A human need shaped by culture and individual personality.
What is market development?
A strategy to sell existing products in new markets.
Name one demographic trend marketers track.
Changing age structure, diversity, or household composition.
What are the four steps in the marketing research process?
|Define the problem, develop the plan, collect data, analyze and report findings.
What is the difference between beliefs and attitudes?
|Beliefs are thoughts; attitudes are consistent feelings or tendencies.
What is undifferentiated marketing?
A mass marketing strategy targeting the whole market with one offer.
Define customer equity.
The total combined customer lifetime value of all the company’s customers.
What is the value chain?
The internal departments that carry out value-creating activities.
Define Generation Z.
Born after 1997; fluent in digital technologies and social media.
What is the difference between primary and secondary data?
|Primary is collected for the current research; secondary already exists.
What is derived demand?
|Business demand that results from demand for consumer goods.
What is concentrated marketing?
Targeting one or a few very specific segments or niches.
What are the five core customer and marketplace concepts?
Needs, wants, demands; market offerings; value and satisfaction; exchanges and relationships; markets.
What is diversification?
Introducing new products to new markets.
What is environmental sustainability?
|Strategies that support the planet while creating profits.
What is causal research?
|Marketing research to test hypotheses about cause-effect relationships.
What is postpurchase (cognitive) dissonance?
|Buyer discomfort caused by postpurchase conflict.
Define positioning.|Placing a product in a clear, distinct, and desirable position in consumers’ minds.
Placing a product in a clear, distinct, and desirable position in consumers’ minds.
What does the product concept focus on?
Producing quality products and continuous improvement.
What is a mission statement?
A market-oriented statement of the organization’s purpose.
What are publics in the microenvironment?
|Groups that influence the company’s ability to achieve objectives.
Define focus group.
|A form of qualitative research where a small group discusses a product or issue.
What is organizational buying?
Purchasing goods/services for use in production or operations.
What is a perceptual map?
A diagram showing customer perceptions of brands across attributes.
What is customer relationship management (CRM)?
The process of building and maintaining profitable customer relationships.
What is ROI in marketing?
Return on investment from marketing activities.
What is the difference between proactive and reactive firms?
|Proactive firms take action to influence the environment; reactive firms adapt after changes occur.
What is competitive marketing intelligence?
|Systematic collection of public data about competitors and the marketplace.
What are personal factors in consumer behavior?
Age, occupation, economic situation, lifestyle, personality.
What is the value proposition?
The full mix of benefits a brand promises to deliver.
What is the selling concept?
The idea that consumers will not buy enough without aggressive sales and promotion.
What is a strategic business unit (SBU)?
A unit of the company with its own mission and objectives.
What role do intermediaries play?
|Help promote, sell, and distribute products to buyers.
Name one ethical concern in marketing research.
|Privacy, consent, or data security issues.
What are the five stages of the buyer decision process?
|Need recognition, info search, evaluation of alternatives, purchase decision, postpurchase behavior.
What are the criteria for effective segmentation?
Measurable, accessible, substantial, differentiable, and actionable.