307 midterm 1

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  1. product orientation
    focus on products and technology, driven by technology rather than customer needs

    primarily uses promotion to achieve corporate goals
  2. market orientation
    focus on developing customer needs, effort to find solutions to problems even if it requires new product or technology
  3. sales orientation
    slow adaptation to changing needs, emphasis on selling
  4. social orientation
    emphasis on social responisbility even if this requires sacrifice of profits
  5. marketing concept
    the idea that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives

    based on an understanding that sales don't depend on an aggressive sales force but rather on a customer's decision to purchase a product
  6. evaluation types
    compensatory: based on overall value

    non-compensatory: absolutley must meet at least one important criterion
  7. five factors of consumer behavior
    • level of consumer involvement
    • length of time to make decision
    • cost of good or service
    • degree of info search
    • number of alternatives considered
  8. routine response behavior
    • little involvement in selection
    • frequently purchase low cost goods
    • may stick with one brand
    • buy first, evaluate later
    • quick decision
  9. limited decision-making
    • low levels of involvement
    • low to moderate cost goods
    • evaluation of a few brands
    • short to moderate time to decide
  10. 5 factors determining level of consumer involvement
    • previous experience
    • interest
    • perceived risk of negative consequences
    • situation
    • social visibility
  11. marketing implications of perception
    • important attribuets
    • price
    • brand names
    • quality and reliability
    • threshold level of perception
    • product/repositioning changes
    • foreign consumer perception
  12. Maslow's hierarchy of needs
    • psychological needs
    • safety needs
    • social needs
    • esteem needs
    • self-actualization
  13. criteria for succesful segmentation
    • substantiality: seg must be large enough to warrant a special marketing mix
    • identifiability and mesurability: seg must be identifiable and their size measurable
    • accesibility: members of targeting segments must be reachable w/marketing mix
    • responsiveness: unless a seg responds to a marketing mix differently, no separate treatment is needed
  14. bases for segmentation
    characteristic of individuals, groups, or organizations that marketers use to divide a total market into segmentations

    • geographic: regional differences
    • demographics: age, gender, ethnicity, willingness to spend
    • psychographics: personality, motives, lifestyle
    • benefits: taste, convenience, time-saving
    • usage rate: dividing a market by the amount of product being bought or consumed
  15. reasons for targeting smaller segments
    • reduced competition
    • opportunity for growth
  16. undifferentiated targeting strategy and advantages/disadvantages
    • marketing approach that views the market as one big market with no individual segmenst and thus requires a single marketing mix
    • advantages: potential savings on promotion and marketing costs
    • disadvantages: unimaginative product offerings, company more susceptible to competition
  17. concentrated targeting strategy and advantages/disadvantages
    • used to select one seg of a market for targeting market efforts (niche)
    • advantages: concentration of resourcees, meets narrowly defined seg, small firms can compete, strong positioning
    • disadvantages: seg too small or changing, large competitors may market to niche segment
  18. multi-segment targeting strategy and a/d
    • chooses two or more well-defined market segs and develops a distinct marketing mix for each
    • a: greater financial success, ecnonomies of scale
    • d: high costs, cannibalization
  19. one-to-one marketing
    utilizes customer info to build long-lasting, personalized and profitable relationship with each customer
  20. positioning bases
    • attribute
    • price and quality
    • use or application
    • product user
    • product class
    • competitor
    • emotion
  21. process of marketing research
    • 1. define problem
    • 2. plan design/primary data
    • 3. specify sampling procedure
    • 4. collect data
    • 5. analyze data
    • 6. prepare/present report
    • 7. follow up
  22. a/d of secondary data
    • a: saves time and $, aids in determining direction for primary data collection, pinpoints the kinds of people to approach, serves as a basis of comparison for other data
    • d: may not give adequate detailed info, may not be on target with research problem, quality and accuracy of data may pose a problem
  23. a/d of primary data
    • a: answers specific research problem, data are current, source of data is known, secrecy can be maintained
    • d: expensive, piggybacking may confuse respondents, quality declines if interviews are lengthy, reluctance to participate in lengthy interviews
  24. observational research
    • people watching people
    • people watching an activity
    • machines watching people
    • machines watching an activity
  25. types of research error
    • measurement: error when there is a difference between the info desired and info provided
    • sampling: when a sample somehow doesn't rep target population
    • frame: when a sample drawn from a population differs from the target population
    • random: b/c the selected sample is imperfect rep of the overall population
  26. scanner-based research
    a system for gathering info from a single group of respondents by continuously monitoring the advertising, promotion, and pricing they are exposed to and the things they buy
  27. four parts of corporate responsibility
    • philanthropic
    • ethical
    • legal
    • economic
  28. sustainability
    the idea that socially responsible companies will out perorm their peers by focusing on the world's problems and viewing them as opportunities to build profits
  29. discounted cash flow
    • present value of $ in the future
    • PV(x,i)n = x/(1+i)^n
    • x = amount
    • i = interest rate
    • n = number of years
  30. marketing environmental factors not in direct control of managers
    • social
    • demographic
    • economic
    • technological
    • political/legal
    • competitive
  31. tweens
    • age 8-14
    • population 29 million
    • emerging as richest generation
    • TV ads are "just advertising"
  32. generation y
    • age 18-33
    • population 60 million
    • word of mouth marketing very effective
  33. generation x
    • age 34-47
    • population 40 million
    • savvy and cynical
    • entering money making years
  34. baby boomers
    • age 48-66
    • population 77 million
    • $1 trillion in spending power for those 50-60
    • income will grow as they keep working
  35. economic factors
    • consumers' incomes: incomes have risen at a slow pace, consumers strapped for cash, education is the primary determinant of earning potential
    • inflation: measurement of the decrease in the value of money, expressed as the percent reduction in value since the previous year
    • recession: period of economic activity characterized by negative growth, which reduces demands for goods and services
  36. costs of competitive advantage
    • reengineering
    • experience curves
    • efficient labor
    • production innovation
  37. competitive advantage
    • one or more unique aspects of an organization that cause target consumers to patronize that firm rather than competitors
    • it is sustainable if it cannot be copied by the competition
  38. four p's
    • product: includes product development, production assistance, packaging, warranties, servicing, branding, company image, physical product unit
    • place: distribution strategies make the product available to consumers when and where they want them
    • promotion: personal selling, advertising, sales promotion, PR. serves to inform, educate, persuade, remind target markets about product benefits
    • price: important component because it is flexible and allows revenue to be estimated and measured
  39. bcg matrix
    • stars: high growth, high market share
    • cash cows: low growth, high market share
    • dogs: low growth, low market share
    • question marks: high growth, low market share
Card Set
307 midterm 1
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