Marketing 101 Final Exam

What is environmental scanning?
The process of interpreting potential trends outside of the organisation.
What are the forces behind the environment?
Social, economic, technological, competitor rivalry and regulatory.
What are social forces?
They are demographic characteristics of the population and its values.
What are demographics?
Age, gender, ethnicity, income and occupation.
What is a culture?
A set of ideas and values that are learned and shared among the members of a group.
What is hiving?
Hiving is an emerging trend referring to social activities that bring people into contact with each other around a central home base.
What has been the main change in Australia from racial and ethnic diversity?
The investment on ethnic food worth $6 billion a year.
What is the technological impact on customer value?
It increases customer value by reducing the costs of products, providing new products and improving new products.
What is the marketspace?
The marketspace is an information and communication-based electronic exchange environment occupied by digitised offerings. Often is related to electronic commerce.
What are the economic forces?
The economy, disposable and discretionary income.
What are the competitive forces?
Pure competition, monopolistic competition, oligopoly and monopoly.
What are the regulatory forces?
Penalties, consumer protection, advertising.
What is switch and bait advertising?
When a trader advertises a bargain price on an item to attract consumers into their shop and the consumers arrive to it being sold out only to be referred to a more expensive item.
What are some anti-competitive practices?
Market sharing, misuse of market power, exclusive dealing, price discrimination, predatory pricing, price fixing and resale price maintenance.
What are the three possible reasons for the present state of ethical conduct in business?
1. There is increased pressure on business people to make decisions in a society characterized by diverse value systems.
2. There is a growing tendency for business decisions to be judged publicly by groups with different values and interests.
3. Ethical business conduct may be declined.
What influences ethical marketing behaviour?
Societal culture and norms, business culture and industry practices, corporate culture and expectations.
What are two examples of unethical behaviour?
Economic espionage and bribery.
What is moral idealism?
Moral philosophy that considers certain individual rights or duties as universal regardless of the outcome.
What are the three concepts of Social Responsibility?
Profit responsibility, stakeholder responsibility and societal responsibility.
What are the stages of the purchase decision process?
1. Problem recognition (perceiving a need)
2. Information search (seeking value)
3. Alternative evaluation (assessing value)
4. Purchase decision (buying value)
5. Postpurchase behaviour (value in use)
What characteristics do high-involvement purchases have?
1. Expensive
2. Serious personal consequences
3. Could reflect on one’s social image.
What five situational influences tend to have an impact on our purchase decision process?
1. The purchase task
2. Social surroundings
3. Physical surroundings
4. Temporal effects
5. Antecedent states
What are the psychological influences on consumer behaviour?
Motivation, personality, perception, learning, values, beliefs and attitudes and lifestyle.
What are the three main types of organisational buyers?
Industrial, reseller and government markets.
What are the factors that affect global marketing?
Cultural, economic and political-regulatory factors.
What are four general ways to enter the global marketplace?
Exporting, licensing, joint venture and direct investment.
A product may be sold globally in one of three ways:
1. Product Extension – In the same form as in its home market
2. Product Adaption – With some adaptions
3. Product Invention – As a totally new product
What is marketing research?
The process of collecting and analyzing information in order to recommend actions to improve marketing activities.
What are the four steps marketing researchers use to help develop marketing actions?
1. Defining the problem
2. Developing a research plan to solve the problem
3. Collecting relevant data
4. Developing a report with the findings and recommendations.
What is market segmentation?
Market segmentation is sorting potential buyers into groups that have common needs and will respond similarly to a marketing action.
What is synergy?
Synergy is the increased customer value achieved through performing organisational functions more efficiently.