EXAM1 Basic Marketing

1. What is a market
A group of people with similar needs that can be satisfied with a product/ This group must have unmet needs possess something to exchange for the product and a willingness and authority to make the exchange/”pester power”-dual target child-parent.
2. What is the Marketing Concept
the satisfaction of consumers wants and needs at a profit
3. What is a target market
a group of people with similar needs which a company focuses its marketing plan
4. What are the 4 P’s of Marketing (Be able to apply them to examples.)
Product
Price
Promotion
Place
5. What are the 5 elements of the Promotion Mix
Advertising
Publicity
Personal Selling-one on one
Sales Promotion-Frequent flyer miles
Direct Marketing-online marketing (QVC)
6. What is the difference between a Consumer Good and an Industrial Good
Consumer good-purchased by final/ultimate consumers for personal or household use
Industrial Good-purchased by B2B markets for use in business
7. Know the 4 eras of the Evolution of Marketing. How has marketing evolved as we know it today
The Production Era
The Sales Era
The Relationship Era
The Triple Bottom Line Era
The Production Era
1860’s -1920’s
Focus on the most efficient ways to make and distribute
products, like Henry Ford’s Model T & Ivory soap
Marketing plays an insignificant role
The Sales Era
1920’s – 1960’s
Focus on one-time sales of goods rather than repeat
business
Marketing viewed as a sales function
The Relationship Era
Consumer Orientation: focus on the satisfaction of customers’ wants and needs
Marketing becomes more important in the firm
Recessionary times of the 1980’s led to the development of Total Quality Management (TQM) that involves ALL employees in continuous product quality improvement
The Triple Bottom Line Era
Maximize 3 components:
Financial Bottom Line: financial profits to stakeholders
Social Bottom Line: contributing to the communities in which the company operates
Environmental Bottom Line: Creating sustainable business practices that minimize damage to the environment or that even improve it
8. Be able to apply the 3 components of the triple bottom line era to examples in the marketplace.
Customer Relationship Management (CRM) tracks consumers’ preferences and tailor the value
proposition to each individual
Social marketing concept:
Management philosophy that marketers must satisfy customers’ needs in ways that also benefit society and deliver value to the firm
Sustainability-Creating products that meet present needs and ensuring that future generations can have their needs met
Green marketing is one type of sustainable business practice…
9. What is green marketing
Marketing strategy that supports environmental stewardship, thus creating a differential benefit in the minds of consumers
1. Review the concepts of Business Ethics, Social Responsibility, Codes of Ethics
Business ethics:
Basic values that guide a firm’s behavior
Code of ethics:
Written standards of behavior to which everyone in the organization must subscribe
Social Responsibility:
A management practice in which organizations seek to engage in activities that have a positive effect on society and promote the public good
2. Know the 4 levels of the Social Responsibility Pyramid. (Be able to apply each level to examples.)
Philanthropic:Be a good corporate citizen
Ethical:Be Ethical
Legal:Obey the Law
Economic:Be Profitable
3. Who is Shawn Fanning
Napstar Inventor-Got sued for copyright issues with the file sharing he invented
4. Who is Jeffrey Wigand
The tobacco whistle-blower
5. What is cause marketing
activities in which firms seek to have their corporate identity linked to a good cause through advertising, public service, and publicity
6. How does cultural diversity apply to social responsibility
management practice that actively seeks to include people of different sexes, races, ethnic groups, and religions in an
organization’s employees, customers, & suppliers
This relates in the way that they are trying to be ethical and have a positive effect on society and promote public good.
Monopoly
One firm controls all or nearly all the market for a good or service
Oligopoly
dominated by a small group of firms that are to exert control over supply and market prices EX-Car industry, Steel industry, cereal
Monopolistic Competition
Many firms in an industry offer wide variety of the 4 P’s (product, price promotion place)
Perfect Competition
Many firms in an industry offer virtually homogenous product (a theoretical absolute and no pure examples really exist)
8. What does the phrase “define competition generically” mean
Rule of thumb. Overall competition is increasing Global Competition Competing on the internet
9. Know the 5 periods of the Business Cycle as they relate to the Economic Environment of Marketing.
Prosperity: high levels of demand, income, employment
Recession: falling demand, income, employment
Recovery: gradual improvement of these factors
Depression: A severe recession; prices fall but low demand due to low incomes and high unemployment
Inflation: prices and the cost of living rise while money loses its purchasing power due to escalating cost of goods
10. How do advancements in technology affect marketing opportunities
Technology provides firms with important competitive advantages
Technology provides new product opportunities but also makes other products obsolete
Technology provides new ways of marketing products
Sherman Anti-trust act (1890)-
monopolies and any attempt to unreasonable restrain trade are illegal
FTC Act (1914)
established the FTC to act as a watchdog over monopolistic practices
Wheller-Lea Amendment ( 1938)
amended the FTC Act makes deceptive and misleading advertising illegal
Lanham Act (1946)
protects and regulates brand names and trademarks
12. What government agency has jurisdiction over false advertising
FTC
13. What is a cease and desist order as it pertains to false advertising
It makes you remove and pull all of the false advertising off of the shelves and off of tv immediately
14. What is corrective advertising
Fixing a false advertisement and making people aware of the fix
15. What is meant by “puffery” in advertising
Puffery is to puff things up “worlds best coffee”
16. What is meant by “weasel words” in advertising
Weasel words make a claim that look legitimate to casual people “up to 50% off all products”
17. What is consumerism
The social movement directed toward protecting consumers from harmful business practices
18. Know JFK’s Consumer Bill of Rights. (How did these rights impact marketing actions, product designs, advertising, laws, etc.
The right to be safe
The right to be informed
The right to be heard
the right to choose freely
Fair Packaging and and Labeling act 1966
ensures product packages are labeled honestly
Cigarette labeling act 1967
requires health warnings on cigarettes
Public Health Cig Smoking Act 1970
stronger health warning on cigarettes; banned cigarette advertising on radio and television
Consumer Product Safety Commission Act 1972
created the CPSC to monitor and recall unsafe products sets product safety standards
20. Trademark Law: What is the time period for trademark protection What is required to get a
trademarked renewed? Be able to give examples of brand names that lost their trademark rights due to the generic use of the brand name. What elements of the brand can be given trademark protection?
Lanham Act- Brand names cannot be confusingly similar.
10 year of trademark protection. You have to prove that the trademark is currently being used by the company and that the trademark has not become generic in use by consumers. Aspirin Escalator Yo-Yo Zipper. Symbols, Colors, Shapes, and sounds are elements in which trademarks can be given.
21. What are demographics as part of the sociocultural environment of marketing
people descriptions”; age, gender, race, income, education level, occupation, family size, marital status, etc.
22. What is meant by the term “ethnocentrism”
the tendency to prefer products from one’s own culture
1. What are the 4 sources of information for a Marketing Information System
Internal Company data
Marketing Intelligence data
Marketing Research data
Acquired Databases
2. What is data mining
Sophisticated analysis techniques to take advantage of the massive amount of transaction information now available
Analysts sift through data to identify unique patterns of behavior among different customer groups
Finding statistical links that can help determine marketing actions Men buying beer when they buy diapers
3. What are the 7 steps to the Marketing Research Process
Define the Research Problem
Determine the Research Design
Choose the method to collect primary data
design the sample
collect the data
analyze and interpret the data
prepare the research report
4. What is the difference between primary and secondary data
Secondary data have been collected for some purposes other than the problem at hand
Primary data is information collected directly from the respondents to specifically address the question at hand it is collected only if the secondary data is insufficient
6. What are the characteristics, advantages and disadvantages of the 4 main types of survey methods
Mail-questionnaires: low cost, anonymous, time lag, low response rate, “junk mail”
Telephone- interviews: low cost, faster to conduct, higher response rate than mail, harder to reach a specific segment of the population that cannot be reached by phone for various reasons
Face to face- interviews: ability to use visuals, higher cost, more time-consuming, “Mall Intercept Interviews”
Online- questionnaires: faster, low cost, no geographic restrictions, ability to use visuals, instantaneous data collection and analysis, loss of control over who answers the survey, “hackers” can influence results or share data with competitors
7. What do we mean by “observational” methods of data collecting
data collection where the researcher records consumers’ behaviors, often without their knowledge
8. What is a “garbologist”
An unobtrusive method
A garbologist sifts through trash cans searching for clues about each household’s consumption patterns
Example: What beverages are consumed with what foods?
Example: What income levels tend to eat canned soup
9. What are “cookies” as they pertain to online data collection and observation methods
online text files stored on an end-user’s computer to enable web sites to identify the user and track the user’s moves

They enable a company to identify a previous visitor to a site, and build up a profile of that visitor’s online behavior

10. What does “Garbage in, garbage out” mean as it refers to marketing research
How much faith should marketing managers place in research?
Validity
Reliability
Representativeness
11. What is the difference between a probability sample and a nonprobability sample
Probability sample: Each member of the population has some known chance of being included
Sample is representative of your population, and inferences about population are justified

Nonprobability sample: Some members of population have no chance of being included
No way to ensure that sample is representative of population

1. What are the 5 steps of the Consumer Purchase Decision Process
Problem Recognition-fed up with car
Information Search-talks to friends visits show rooms
Evaluation of Alternatives- looks at 3 different models
Product choice-chooses car
Postpurchase evaluation-drives car happy with choice
3. What is Behavioral Targeting
Behavioral targeting or behavioural targeting is a technique used by online publishers and advertisers to increase the effectiveness of…
4. What are heuristics
a mental rule of thumb used for a speedy decision such as price=quality
brand loyalty
country of origin
5. What is Cognitive Dissonance
buyers remorse after a purchase a consumer may feel doubt or anxiety about the purchase decision
6. What are the 4 variations of the Consumer Decision Process(“Not all Decisions are the Same”)(Extended, Limited, Habitual, Impulse….Be able to identify examples of each.
extended problem solving(car house major appliance)
limited problem solving(clothing smaller appliance)
habitual decision making (toothpaste newspaper grocery items gas)
impulse purchase decisions (candy magazines)
7. What is subliminal perception (Be able to identify examples. What are the conclusions that have been drawn regarding their use and effectiveness in marketing?)
perception below the threshold of awareness hidden messages in advertising that attempt to appeal to a person’s subliminal level
8. What are the 5 levels of Maslow’s Hierarchy of Needs
Self Actualization- Self fulfillment enriching experiences(hobbies travel education)
Ego Needs-prestige status accomplishment(cars furniture credit cards
Belongingness-love friendship acceptance by others (clothing grooming clubs)
Safety- security shelter protection ( insurance alarm systems)
Physiological-water sleep food ( medicines staple items)
9. What are the 2 types of Behavioral Learning covered in class as it pertains to marketing
Classical conditioning- neutral stimulus will evoke the same response as the unconditioned stimulus
Operant Conditioning- the learning that occurs as the result of rewards or punishment
10. What is cognitive learning
learning that stresses the importance of internal mental processes and that views people as problem solvers
11. How is the study of lifestyle and psychographics used in marketing
lifestyle is a pattern of living that determines how people choose to spend their time, money, and energy
Psychographics group consumers according to activities interests and opinions (AIO inventory)
12. What is an AIO Inventory
Activities, Interests, and Opinions
13. What is sensory marketing
marketing techniques that link distinct sensory experiences such as unique fragrance with a product or service …
14. How has time poverty as a situational influence among American consumers led to marketing opportunities
consumers belief that they are more pressed for time than ever before a sense of time poverty has led marketers to fulfill a consumer need 1 hour photo labs drive thrus…
15. How do social influences such as culture, social class, group memberships, opinion leaders and gender roles impact a consumer’s decision making
the overall rank or social standing of groups of people within a society according to factors such as family background education occupation and income status symbols such as luxury products provide a way for people to flaunt their membership in higher social classes
16. What do we mean by the “Mass Class”
large numbers of global consumers who enjoy a level of purchasing power allowing them to afford high quality products offered by well known multinational companies
17. What are the 3 types of reference
groups Which two are more influential in consumer behavior than the third?
membership aspiration dissociative
18. What is an opinion leader
people who influence others attitudes or behaviors because others perceive them as possessing expertise about the product
have high interest in product category
impart both positive and negative product information
are among the first to buy new products
celebrity spokespersons are one form of opinion leaders.