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Marketing Exam 1 - Coggle Diagram
Marketing Exam 1
Chapter 3
Target Market
One or more specific groups of potential consumers toward which an organization directs its marketing program
Environment
Social
Economic
Legal
Competition
Technological
Environmental Management: attempt to influence things in the environment
Social Trends
Age Demographics
Baby Boomers 46-64
X 65-76
Gen Y 77-94
Z 95-10
Ethnic
Hispanic Americans
African Americans
Asian Americans
Companies make products for these groups
Culture
Health/Wellness
Sustainability/Preserving
Privacy Concerns
Diversity/Inclusion/Equality
Values, Ideas and Attitudes that are learned among members of a group, including shared meanings, beliefs and morals
Can be country or regional, or even more local like school
Economic Conditions
Macroeconomic conditions such as GDP of unemployment, price changes, and recessions can affect consumers
Disposable income is what they can use for neccessities, and discretionary is after neccessities
Technology
Research
Basic: Attempts to expand knowledge broadly
Applied: Solving a specific problem
New technology
Internal: creates competitive advantage
External: May create better products or operations, but also render products obsolete
Competitive structures
Levels
Oligopoly: small number of sellers, each with substantial share
Monopolistic competition: many sellers compete for buyers, but each offers a slightly different product
Pure competition: many sellers each offering the same product
Pure monopoly: when one seller controls market
Types
General: Different needs
Indirect: Same needs, different solution
Direct: Same needs, similar way
Legal Regulations Protect
Consumers
Competition
Producers/Businesses
Society
Ethical decision making
is difficult because it is based on personal moral philosophy, which is not the same from person to person
Based on
Extent of problems
Probability of harm
Time until consequences
Social consensuus
Management actions
people affected
Framework
1 - Identify Issues
2 - Gather Information about Stakeholders
3 - Brainstorm and Evaluate Alternatives
4 - Choose a course of action
Publicity Test - front page
Moral Mentor Test - person admired
Transparency - clear, honest explanation
Person in mirror - look myself in mirror
golden rule - would I want this done to me?>
Consumer Bill of Rights
1 - safety
2 - be informed
3 - choose
4 - be heard
CSR
Important because customers expect it and some believe that it will allow companies to build opportunities over time
Components
Profit
Stakeholder - those who can affect achievement of objectives
Societal
Green marketing is based upon real initiatives, while green washing is a faced
Sustainable development: involves conducting business in a way that protects the natural environment while making economic progress
Theories
Idealism - some rights are universal (exemplified by Consumer bill of rights)
Utlitarianism - greatest good for greatest number
Chapter 1
What is marketing?
The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
Marketing concept
Social and economic justification for an organization's ecistince is the satisfaction of customer wants and needs while meeting organization goals
Exchanges
For an exchange to take place, marketers must create an attractive value proposition
Exchange can be tuition or even voting
Conditions
2 or more parties with unmet need
2 or more parties with something of value
Desire and ability to satisfy needs
A means of communication
Marketing Orientations
Societal: An organization exists not only to satisfy customer wants but also to preserve or enhance individuals' and society's long-term best interests
Market: Continuously collecting information about customers' needs, sharing this information across departments, and using it to create customer value
Production: Ignore customer needs and focus only on efficiently building a quality product
Selling: Aggressive sales tactics, but may only work once
Creating customer value
Quality
Convenience
On-time delivery
Service before and after sale
Relationship marketing: Links the organization to its individual customers, employees, suppliers, and other partners for the mutual long-term benefit
Needs and wants
Definitions
Need: when a person feels deprived of basic necessities
Wants: shaped by knowledge, culture, and personality
Satisfying needs and wants
Product: The offerings by the company
Promotion: How the marketing is promoted
Place/Distribution: Target of marketing
Price: Time, price
Who, What, Who buys, Who benefits?
For-profit organizations
Non-profit organizations
People
Places
Chapter 6
Five Developments
Protectionism - slows down international trade
Economic Integration like European Union
Global competition among firms for global consumers
Networked Global Marketspace, where products can easily be exchanged (ecommerce)
Economic espionage - clandestine collection of trade secrets
Types of firms
International - use domestic marketing strategy everywhere
Multinational - use unique marketing strategies in different markets (multidomestic)
Transnational - uses same brand everywhere but adapts marketing when neccessary
Conditions
Cultural and language barriers can often impeded firms from entering markets, and makes marketing research more difficult
Also consider potential demand and if country has any competitive advantages
Political - stability, protectionism, tariffs, quotas, trade agreements
IT - transportation, channels, communication
Economy - GDP, infrastructure, population size and growth, and development
WTO - sets rules between members to govern global trade and mitigate trade wars between member countries
Hofstede's cultural values
Individual/Collectivism
Power distance
Uncertainty avoidance
Masculinity/Femininity - success, heroism, achievement vs cooperation, modesty, caring for weak
Long Term vs Short Term
Indulgence vs Restraint
Cultural aspects
Language
Customs
Symbols
Ethnocentricity
Global Entry Strategies
Exporting - sending goods to another country, can be done indirectly with intermediaries or directly by the firm
Licensing - company offers right to trademark, patent, or trade secret for fee, but loss of control of product and possible creation of competiton
Joint venture - sharing costs and risks with another company, often encouraged by host government
Direct investment - foreign firm fully owns subsidiary in host country
Decisions
Extension: same product, new market
Invention: new product
Adaptation: modify product
Chapter 8
Market
Need
Ability
Willingness
Authority
Segments
Geography
Demographic
Psychographic - how time and money is spent
Behavioral: Product Features
Behavioral: Usage Rate - quantity consumed
Geodemographic, combines geographic, demographic, and psycographic
How to form
Simple to identify and assign
Potential to increase profit by targeting
Similarity between customers in segment
Difference to other segments
Accesibility of segment
Market Product Grid
Identifies marketing synergies - where segments could be targeted
Identifies product synergies - where a product could be targeted
helps identify segments and match them with products based on size of market
Targeting strategy
Mass/undifferentiated
Differentiated - adjusted for consumers
Niche - targeting small groups
Micro-marketing - specific to consumer
Positioning
space occupied in mind relative to competitors
Effective positoning
Determines needs/wants
Assesses position of competition
Chooses market position with best value proposition
Reposition if neccessary
Types
Head-to-head: direct competition
Differentiation: niches with real or perceived distinctions
Reposition: changes in the space occupied in minds
Perceptual maps: plotting firms based on position on two axes
Chapter 4
Consumer Decision Process
Problem Recognition
Information Search
Sources
Internal Search
Public Sources - external
Marketer-dominated - external
Personal Sources - external
Risks
Financial Risks
Performance Risk
Psychological Risk
Physical Risk
Social Risk
Alternative Evaluation
Consideration set: Brands considered acceptable
Evaluative criteria: Salient attributes consumers to compare competing alternatives
Determinant Attributes: Attributes that actually result in preference of one product over another. Important to buyer and which are competing brands, but not necessarily most important.
Consumers look at price, functionality, size
Purchase Decision
Consumers make a choice, but product may be unavailable, they may change their mind, or the may decide to waitC
Conversion rate is % of viewers who buy product after viewing
Rules
Compensatory - consumers trades off one characteristic against another
Noncompensatory decision rules - consumer is not willing to make trade offs for important attribute
Heuristics - price, country of origin, what mom used
Post-Purchase
Satisfaction - meeting expectations and outcomes, can impact re-purchase and word of mouth
Cognitive dissonance - incosistnecy in values
Involvement
personal, social, and economic significance of the purchase to the consumer
Factors
no of brand involved
no of sellers considered
no of product attributes evaluated
no of external information sources considered
time spent searching
Influences on Consumer
Psychological
Values
Beliefs - subjective perception
Lifestyle - a pattern of living that determines how people choose to spend their money
Maslow's hierarchy of needs
Personality, self-concept, actual self-concept, and ideal self-concept
Perception selectivity - exposure, comprehension, retention
Learning
Behavioral by stimulus
Cognitive by thinking
Brand loyalty - habit formation
Attiude - predisposdd
Sociocultural
Personal
Family
Social class
Situational
Purchase task - why the purchase, who for?
Surroundings - where
Temporal effects - time of day, time left
Antecedent state - not enduring like mood
VALS measures differences in consumer behavior