Marketing 4

What two challenges must marketers overcome when marketing to Hispanics?
(1) The diversity of nationalities among this subculture. (2) The language barrier that can lead to misinterpretation or mistranslation of commercial messages.
What is meant by social responsibility?
Social responsibility means that organizations are part of a larger society and are accountable to that society for their actions. It comprises three concepts: (1) profit responsibility—maximizing profits for the organization’s shareholders; (2) stakeholder responsibility—the obligations an organization has to those who can affect the achievement of its objectives; and (3) societal responsibility—the obligations an organization has to preserve the ecological environment and to the general public.
Why are many companies developing multicultural marketing programs?
Multicultural marketing programs consist of combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races and ethnic groups. The reasons for developing these programs are: (1) The racial and ethnic diversity of the U.S. is changing rapidly due to the increases in the African American, Asian, and Hispanic populations, which increases their economic impact. (2) An accurate understanding of the culture of each group is essential if marketing efforts are to be successful. (3) Based on an analysis of population demographic data, racial and ethnic groups tend to be concentrated in specific geographic regions.
Describe three generational cohorts.
Baby boomers are the generation of 76 million among the U.S. population born between 1946 and 1964. These Americans are growing older and will all be 65 or older by 2030. (2) Generation X are those among the 15 percent of the U.S. population born between 1965 and 1976. These well-educated Americans, also known as the baby bust cohort because of declining birth rates, are supportive of racial and ethic diversity. (3) Generation Y are the 72 million Americans among the U.S. population born between 1977 and 1994. The rising birth rate of this “baby boomlet” cohort is the result of baby boomers having children. A subset of this generational cohort are millennials, who are younger Americans born since 1994. Because each generational cohort has its distinct attitudes and behaviors, marketers have developed generational marketing programs for each of them.
What does lifestyle mean?
Lifestyle is a mode of living that is identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them.
Explain Economy of Scale
a. When more units of a good or a service can be produced on a larger scale, yet with (on average) less input costs, economies of scale (ES) are said to be achieved. Alternatively, this means that as a company grows and production units increase, a company will have a better chance to decrease its costs.
Explain the Marketing Concept.
a. the idea that an organization should (1) strive to satisfy the needs of consumers (2) while also trying to achieve the organization’s goals.
Name the elements of the Marketing Mix.
a. Product. A good, service, or idea to satisfy the consumer’s needs.
b. Price. What is exchanged for the product.
c. Promotion. A means of communication between the seller and buyer.
d. Place. A means of getting the product to the consumer.
e. The marketing mix elements are called controllable factors because they are under the control of the marketing department in an organization.
Compare Target Marketing to Mass Marketing.
a. Target marketing – one or more specific groups of potential consumers toward which an organization directs its marketing program
Explain the component parts of Marketing Strategy.
a. The means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it. The term implies both the end sought (target market) and the means to achieve it (marketing program).
Differentiate between discretionary income and disposable income.
a. Disposable – The money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation. Thus, if taxes rise or fall faster than income, consumers are likely to have more or less disposable income. Similarly, dramatic changes in prices of products can require spending adjustments. In recent years, for example, as the price of gasoline increased, consumers found themselves adjusting their spending in other categories.
b. Discretionary – the money that remains after paying for taxes and necessities. Discretionary income is used for luxury items such as a Cunard cruise. An obvious problem in defining discretionary versus disposable income is determining what is a luxury and what is a necessity.
What is a reference group?
a. People to whom an individual looks as a basis for self-appraisal or as a source of personal standards. Reference groups affect consumer purchases because they influence the information, attitudes, and aspiration levels that help set a consumer’s standards.
What is an opinion leader?
a. Individuals who exert direct or indirect social influence over others
b. Opinion leaders are considered to be knowledgeable about or users of particular products and services, so their opinions influence others’ choices.
Define segmentation.
a. which involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action. This enables an organization to focus specific marketing programs on its target market segments.
What is SWOT analysis? How is it used?
a. An acronym describing an organization’s appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats.Situation (SWOT) Analysis
The essence of situation analysis is taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization’s marketing plans and the external forces and trends affecting it.
What is relationship marketing and how do affinity programs fit in?
a. Links the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit. In terms of selling a product, relationship marketing involves a personal, ongoing relationship between the organization and its individual customers that begins before and continues after the sale.