BUS 360 Study Guide

Definition of Marketing
The performance of activities that seek to accomplish an organization’s objectives by anticipating customer or client needs and directing a flow of need-satisfying good and services from producer to customer or client.
Macro marketing
is the social process that directs an economy’s flow of goods and services from producers to consumers in a way that effectively matches supply and demand and accomplishes the objectives of society
Micro marketing
is a set of activities performed by organizations
Universal Functions
buying, selling, transporting, storing, standardization and grading, financing, risk taking, and market information
Marketing Concept
an organization aims all its efforts at satisfying its customers – at a profit
4 P’s
Product, Place, Promotion, Price
Price
Setting must consider the kind of competition in the target market and the cost of the whole marketing mix. Manager must also estimate markups, discounts, and other terms of sale.
Place
Concerned with all the decisions involved in getting the “right” product to the target market’s place. A product isn’t much good to a customer if it isn’t available when and where it’s wanted
Promotion
Concerned with telling the target market or others in the channel of distribution about the “right” product. Sometimes focused on retaining current customers. Includes personal selling, mass selling and sales promotion.
Product
Concerned with developing the right “product” for the target market. This offering may involve a physical good, a service, or a blend of both.
Breakthrough Opportunities
Opportunities that help innovators develop hard-to-copy marketing strategies that will be very profitable for a long time.
5 Step Research Process
(1) defining the problem, (2) analyzing the situation, (3) getting problem-specific data, (4) interpreting the data, and (5) solving the problem
Quantitative
seeks structured responses that can be summarized in numbers, like percentages, averages, or other statistics
Qualitative
seeks in depth, open-ended responses, not yes or no answers
Product v Brand
The need-satisfying offering of a firm.
Branding
The use of a name, term, symbol or design–or a combination of these–to identify a product. It includes the use of brand names, trademarks, and practically all other means of product identification
Packaging
involves promoting, protecting, and enhancing the product.
Product Life Cycle
the stages a really new product idea goes through from beginning to the end. It is divided into four major stages
1. market introduction
2. market growth
3. market maturity
4. sales decline
5 Step New Product Development
1. Idea generation
2. Screening
3. Idea evaluation
4. Development (of product and marketing mix)
5. Commercialization
Ad Types
Product advertising and institutional advertising
From a micro view, marketing
is a set go activities performed by an individual organization to satisfy its customers
From macro view, marketing
emphasis how the whole marketing system works
Three basic ideas in the “marketing concept”
1. Customer satisfaction
2. Total company effort
3. Profit
Marketing means
much more than selling and advertising
Selecting the most effective advertising media depends on the
nature of media, firm’s target market, funds available for advertising, firm’s promotion objectives
To guarantee good media selection, the advertiser FIRST must clearly specify its
target market
Advertising which tries to develop selective demand for a specific brand rather than a product category is called _____ advertising
competitive
The _________ type of competitive advertising points out product advantages to affect future buying decisions
indirect
Which of the following is a sales-oriented pricing objective
growth in market share
“Promotion” includes
personal selling, mass selling, sales promotion
A retailer’s promotion objective might be to __________ its target market about its marketing mix
inform, persuade, remind
The most popular sales force payment method is
a combination plan
Marketing managers should make specific strategy decisions about
How many and what kind of salespeople are needed
How salespeople should be compensated and motivated
What kind of sales presentation should be used
How salespeople should be selected and trained
What are the sale presentation approaches?
Prepared sales presentation
Selling formula approach
Consultative selling approach
The traditional communication process
Source-encoding-message channel-decoding-receiver-feedback
Which of the following shows the correct sequence of market acceptance of a new idea, as represented in the adoption curve?
Innovators, early adopters, early majority, late majority, laggards
The promotional approach emphasizes the importance of securing the wholehearted cooperation of channel members to promote the product in the channel and to the final user
Pushing
The AIDA model consists of
Attention, Interest, Desire, and Action
The “adoption curve” shows
when different group accept ideas
Scrambled merchandising is carrying
any product lines that a store thinks that they can sell profitably
“Retailing” refers to
the sale of products to final consumers
The adoption curve concept is most likely related to which of the following?
The product life cycle
“Advertising” is
any paid form of non personal presentation of ideas, goods, or services by an identified sponsor
Personal selling
involved direct spoken communication between sellers and potential customers
Trying to get the “cream” of a market at a high price before aiming at the most price-sensitive customers is consistent with a
skimming pricing policy
__________ is what a customer must give up to get the benefits offered by the rest of a firm’s marketing mix
Price
A marketing manager may choose a pricing objective that is
sales oriented,
Status-quo oriented
profit oriented
any of the above, depending on the situation
Offering a cumulative quantity discount seeks to
encourage the buyer to make additional purchases
Which is a status-quo pricing objective?
Meeting competitive
Order getters
are concerned with established relationships with new customers and developing new business
The ______ involves developing a good understanding of the individual customer’s needs before trying to close the sale
consultative selling approach
The commission method of payment
offers the most incentive for the salesperson
A _________ is a written statement of what a salesperson is expected to do
Job description
Some retailers commonly use prices that end in certain numbers. They seem to assume that their customers see prices with these numbers as substantially lower this is
odd-even pricing
The two basic approaches to price setting are
cost-orientated and demand-oriented price setting
A retailer who advertises a low price on an item–with no intent to sell that item–but only to attract customers to try to sell more expensive products is using
bait pricing
Setting relatively high prices to suggest high-quality or high-status is
prestige pricing
Average fixed costs
decrease steadily as output increases
Advertising objectives should be
more specific than personal selling objectives
“Copy trust” refers to
what is to be communicated by the words and illustrations
__________ advertising tries to develop primary demand for a product category rather than demand for a specific brand
pioneering
Competitive advertising which makes specific brand comparisons—using actual names—is ______________
comparative
All of the following are product-based advertising except
institutional advertising
The vertivsl marketing system that typically has the greatest amount of cooperation among channel means
a corporate channel system
A convenience product would probably be sold using
intensive distribution
Many firms prefer to distribute directly to the final customer or consumer because they
Want to control the whole marketing job
Believe they can serve target customers at a lower cost
Think they can do the work more efficiently than intermediaries
Can use the internet to make direct distribution easier
Which of the following is NOT a place decision?
Recruiting, selecting and managing the sales force
“logistics” is concerned with
physical distribution
reducing spatial separations between producers and consumers
transporting, storing, and handling physical goose along/within channel systems and individual firms
Public warehouses
provide flexibility because the user pays only for the space used
The first retailers show the importance of the mass-merchandising concept were the operations of
supermarkets
The main difference between agent wholesalers and merchant wholesalers is
that agent wholesales do not own the products they sell–while merchant wholesalers do
Specialty shops
carry specialty products almost exclusively
The marketing mix
helps to organize the marketing strategy decisions area
A marketing strategy
specifies a target market and a related marketing mix
In which of the external environments do changes usually occur most slowly?
cultural and social environments
General Electric’s “strategic planning grid”
requires subjective judgements about business strengths and industry attractiveness
It is towards the end of the _____ stage of the product life cycle when industry profits begin to decline
Market growth
Discretionary incomes is defined as
income available after taxes and necessities
An economic buyer is a person who
logically compares choices to get the greatest satisfaction from spreading time and money
Which of the following is not a selective process used in gathering and interpreting information from the world around us?
Selective attention
Psychographics may also be called
lifestyle analysis
Markups
are percentages of selling price—unless otherwise stated
The three basic tasks of ALL managers
planning, implementation, and control
When looking for attractive opportunities, a marketing manager should consider
a firm’s producing capability and flexibility
the firm’s financial strength
whether the firm has good relations with established intermediaries
the firm’s marketing strengths
The total market value of goods and services provided in a country’s economy per year by both residents and nonresidents of that country
gross domestic product
Positioning
helps strategy planners understand how customers think about various brands or products in relation to each other
Segmenting
tries to aggregate together individuals who have similar needs and characteristics
The purpose of naming broad-product and then segmenting them in order to select target markets and develop suitable marketing mixes is called
market segmentation
Which is not included in the four-level hierarchy of needs
physiological needs
The whole set of beliefs, attitudes, and ways of doing things of a reasonably homogenous set of people is
culture
Which of the following is NOT a psychological variable?
Social class
Behavioral scientists recognize different levels of consumer problem solving. Which of the following is not one of these?
Rational problem solving
Which of the following is NOT a level of brand familiarity?
Brand nonexistence
The scientific method
is an orderly and objective approach to judging how good an idea really is
The most difficult step of the marketing research process is
defining the problem
A _____refers to all of the people who participate in or influence a purchase
buying center
Which of the following statements about social class is not true?
Measuring social class is based solely on a person’s income
Regarding “marketing research” and “marketing information systems”
marketing information systems tend to increase the quantity of information available for decision making, but with some decrease in quality