Download MKTG 2500 Exam 1 Solutions: Marketing Fundamentals and Concepts and more Exams Brand Marketing in PDF only on Docsity!
Solutions.
MKTG 2500 EXAM 1 correct
Solutions.
What is marketing? - ANSWER-definition off slides: a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with another book definition: process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return what is a market? - ANSWER-the set of actual or potential buyers of a product (originally a place where buyers and sellers gather for exchange) what did economists use the term "market" to describe? - ANSWER-a collection of buyers and sellers in particular product class (i.e. housing and grain) marketing management orientations - ANSWER-production, selling, societal marketing, marketing, product concepts production concept - ANSWER-consumers favor products that are available and highly affordable, management should focus on improving production and distribution efficiency (2 situations this is most useful is demand exceeds supply & product cost is too high) product concept - ANSWER-customers favor products that offer the most in quality, performance, and innovative features. thus, an organization should devote energy to making continuous product improvements example of product concept... - ANSWER-the Kodak example - Kodak first overlooked digital cameras -- Kodak-customers wanted photographic film instead of a way to capture and share memories selling concept - ANSWER-consumers will not buy enough of a firm's product unless it undertakes a large-scale selling and promotion effort (usually on unsought goods like insurance and blood donations) disadvantage of the selling concept - ANSWER-overcapacity issues -- organizations want to sell what they make instead of what the market wants
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marketing concept - ANSWER-achieving organizational goals depends on knowing the needs and wants of target markets and delivering desired satisfactions better than the competition do societal marketing concept - ANSWER-a company's marketing decisions should consider consumers wants, the company's requirements, consumers long run interests and society's long run interests marketing process is a five step process in which.. - ANSWER-the first four steps, companies work to understand consumers, create customer value, and build strong customer relationships. in the final step, companies reap the rewards of creating superior customer value the marketing process steps - ANSWER-understand the marketplace and customer needs and wants >> design a customer driven marketing strategy >> construct an integrated marketing program that delivers superior value >> build profitable relationships and create customer delight >> capture value from customers to create profits and customer equity instead of the "make and sell" philosophy... - ANSWER-the marketing concept is a customer-centered "sense and respond" philosophy -- not find the right costumers for the product but find the right products for the customer marketing challenges - ANSWER-technological advances, rapid globalization, and continuing social and economic shifts are causing marketplace changes major marketing developments can be grouped under the theme of.. - ANSWER- connecting connecting via technology - ANSWER-advances in computers, telecommunications, video-conferencing, etc. are major forces because databases allow for customization of products, messages and analysis of needs -- the internet facilitates anytime anywhere connections, facilitates CRM, creates marketspaces connecting with customers - ANSWER-selective relationship management is key because customer profitability analysis separates winners from losers -- growing "share of customer" -- cross-selling and up-selling are helpful -- direct sales to buyers are growing connecting with marketing partners - ANSWER-partner relationship management involves: connecting inside the company, connecting with outside partners (supply chain management, strategic alliances)
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capturing value from customers - ANSWER-creating customer loyalty and retention, customer lifetime value, growing share of customer, building customer equity, building the right relationships with the right customers ((step 5 in the marketing process)) major trends and forces changing the marketing landscape - ANSWER-the changing economic environment, the digital age, the growth of non profit marketing, rapid globalization, sustainable marketing ch 2 start - ANSWER- strategic planning is defined as.. - ANSWER-the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities when does strategic planning occur? - ANSWER-at the business unit, product, and market levels 4 steps of strategic planning - ANSWER-1. defining the company mission
- setting the company objectives and goals
- designing the business portfolio
- planning, marketing, and other functional strategies (1-3 corporate level, 4 business unit, product, and market level) mission statements guides the development of.. - ANSWER-objectives and goals -- objectives are developed at each level in the organization hierarchy, strategies are developed to accomplish these objectives mission statement should... - ANSWER-serve as a guide for what the organization wants to accomplish, be "market-oriented" rather than "product-oriented" ("We make and sell pet food", "We enrich relationship with you and your pet) , be neither too narrow, nor too broad, & be motivating. business portfolio - ANSWER-the collection of businesses and products that make up the company -- the best business portfolio's is one that best fits the company's strengths and weaknesses to opportunities in the environment steps of a portfolio design - ANSWER-step 1: analyze the current business portfolio step 2: shape the future business portfolio step 1: analyzing the current business portfolio - ANSWER-portfolio analysis takes place: the process by which management evaluates the products and businesses that make up the company
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growth share matrix is a portfolio planing method that evaluates a company's SBU's by its market growth rate and relative market share.. the 4 types of SBU's are: - ANSWER- stars: high growth, high share businesses or products cash cows: low growth, high share businesses or products question markets: low share business units in high growth markets dogs: low growth, low share businesses and products matrix approaches to formal planning share many problems.. - ANSWER-difficult, time- consuming, and costly to implement, focus only on current businesses, too strongly emphasize market share growth or growth via diversification product/market expansion grid - ANSWER-a portfolio planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification (growth strategy of business portfolios) market penetration - ANSWER-company growth by increasing sales of existing products to existing market segments without changing the product market development - ANSWER-company growth by developing new market segments for existing products product development - ANSWER-company growth by new products in existing markets diversification - ANSWER-company growth through starting up or acquiring businesses outside the company's current products (new market, new product) designing the business portfolio also involves.. - ANSWER-developing strategies for growth by identifying, evaluating, and selecting promising new market opportunities, product/market expansion grid, developing strategies for downsizing the business portfolio why does marketing play a key role in the company's strategic planning? - ANSWER- marketing provides a guiding philosophy (the marketing concept) that suggests the company strategy should revolve around building profitable relationships with important consumer groups, helps identify attractive market opportunities and taking advantages of them, and marketing designs strategies for reaching the units objectives value delivery network - ANSWER-the network made up of the company, its suppliers, its distributors and ultimately, its customers who partner with each other to improve the performance of the entire system marketing strategy - ANSWER-the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships - this is where the
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analysis of the current marketing situation - then states major objectives for the brand and outlines the specifics of a marketing strategy for achieving them ch 3 start - ANSWER- marketing environment - ANSWER-the actors and forces that affect a firm's ability to build and maintain successful relationships with customers microenvironment - ANSWER-actors close to the company (departments within the company impact marketing planning - treat suppliers as partners) actors in the microenvironment - ANSWER-the company, suppliers, marketing intermediaries, customers, competitors, publics >> customers (microenvironment) marketing intermediaries help to sell, promote, and distribute goods... intermediaries take many forms such as.. - ANSWER-resellers, physical distribution firms, marketing services agencies, financial intermediaries (microenvironment) customer markets must be studied. market types are.. - ANSWER- consumer, business, government, reseller, international (microenvironment) successful companies provide better customer value than the.. - ANSWER-competition -- size and industry position help to determine the competitive strategy (microenvironment) various publics must be considered in the microenvironment like.. - ANSWER-the government, media, financial, local, general, internal, citizen action groups macroenvironment - ANSWER-larger societal forces major macroenvironment forces - ANSWER-demographic, economic, natural, technological, political, cultural (macroenvironment) demographic environment - ANSWER-the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics -- marketers track changing age and family structures, geographic population shifts, educational characteristics, and population diversity (macroenvironment) economic environment - ANSWER-affects consumer purchasing power and spending patterns -- U.S. consumers now spend carefully and desire greater value
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(macroenvironment) key economic trends - ANSWER-U.S. income distribution is skewed -- upper class, middle class, working class, underclass - rich: getting richer middle class: shrinking underclass: still poor - consumer spending patterns are changing (macroenvironment) natural environment - ANSWER-concern for the natural environment has grown steadily, increasing the importance of these trends: shortage of raw materials, increased pollution, increased governmental intervention -- many companies use recycling to help protect natural resources (macroenvironment) key technological trends - ANSWER-the technological environment is characterized by rapid change, new technologies create new opportunities and markets but make old technologies obsolete, the U.S. leads the world in research and development spending (macroenvironment) political environment - ANSWER-includes laws, governmental agencies, and pressure groups that impact organizations and individuals (macroenvironment) key political trends - ANSWER-increased legislation to protect businesses as well as consumers, changes in governmental agency enforcement, increased emphasis on ethical behavior and social responsibility (macroenvironment) cultural environment - ANSWER-is composed of institutions and other forces that affect a society's basic values, perceptions, preferences, and behaviors (macroenvironment) cultural environment core beliefs - ANSWER-passed from parents to children; reinforced by society, shape attitudes and behavior. secondary cultural values change and shift more easily -- society's cultural values are expressed through people's views of: themselves, others, organizations ,society, nature, the universe chapter 4 start - ANSWER- companies need information about their: - ANSWER-customer needs and wants, marketing environment, competition, economy and other external factors marketing managers do not always need _______ information, they need ______ information - they also need to use the information they already have - ANSWER-more, better a marketing information system consists of.. - ANSWER-people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers
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secondary data - ANSWER-information that already exists somewhere (internal databases, commercial data services, government sources, online databases) - sometimes available more quickly and at a lower cost than primary data - must be relevant, accurate, current, and impartial primary data - ANSWER-consists of information collected for the specific purpose at hand - must determine: research approach, contact methods, sampling plan, research instruments - must be relevant, accurate, current, and unbiased observational research - ANSWER-the gathering of primary data by observing relevant people, actions, and situations ethnographic research - ANSWER-observation in "natural environment" mechanical observation - ANSWER-people meters, checkout scanners survey research - ANSWER-most widely used method for primary data collection!! - approach best suited for gathering descriptive and correlational information, can gather information about people's knowledge, attitudes, preferences, or buying behavior - limited by (1) single point in time (2) memory experimental research - ANSWER-tries to explain cause-and-effect relationships - showing causation requires: temporal precedence, statistical relationship, ruling out of alternate explanations experimental research involves: - ANSWER-random sampling or selecting matched groups of subjects if random sampling not possible , giving different treatments to different equivalent groups, controlling unrelated factors, checking differences between groups depth interviews - ANSWER-involve prolonged (anywhere from 30-120 minutes or more) interviews with a single informant to uncover their unique experiences and perceptions of a situation focus groups - ANSWER-group 'interviews' in which the opinions of many are sought in a controlled environment sample - ANSWER-segment of the population selected to represent the population as a whole samples require 3 decisions: - ANSWER-who is to be included? (sampling unit) how many people should be included? (sample size) how should the people in the sample be chosen? (sampling procedure)
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observation - ANSWER-observation guide that outlines what aspects of a scene to observe survery - ANSWER-questionnaire specifically designed to get the best and most accurate responses; consider wording, ordering, type of questions experiment - ANSWER-stimuli, measures, environment interviews - ANSWER-interview protocol interpret the findings - ANSWER-researcher and marketer should work together - the researcher knows the data and the methods but the marketer knows the context draw conclusions - ANSWER-stay true to the data, but think beyond the data report to management and/or other augiences - ANSWER-think about what they want to know - management doesn't care about varimax rotations - the value of the research lies not in the precision of the methods, but in the power of the understanding analyzing marketing information - ANSWER-many companies are using CRM (customer relationship management) to manage detailed information about individual customers and carefully manage customer touch points to maximize customer loyalty marketing research in small businesses and nonprofit organizations - ANSWER-small organizations can use the same techniques as larger firms, just on a smaller scale international marketing research - ANSWER-cultural differences must be considered, language issues often a problem public policy and ethics in research - ANSWER-consumer privacy, misuse of research findings, participant rights qualitative - ANSWER-analyzing words (observing people, surveys, focus groups) quantitative - ANSWER-numbers as data (1-10 scale, larger population)
