Marketing Concepts and Strategies, Exams of Advanced Education

Download Marketing Concepts and Strategies and more Exams Advanced Education in PDF only on Docsity! MGT 103 - Quiz 1 Ch.1-5 with complete solutions T or F? Marketing is all about consumers? - Answers -True! Its all about the consumers, it cannot be thought of without thinking of the consumer. the company cannot exist without the consumer. the consumer must value what the marketer has and the marketer much value the consumer Organizational Culture - Answers -set of values, ideas, attitudes and norms of behavior that is learned and shared among members of the organization( As a customer you don't know what the culture of organizations but as an employee you do. Can look for current or past employees to share their experiences or look at the code of conduct in a corporation which includes their core values) Value Proposition - Answers --Benefits that an organization promises to the customer: There must be a belief that this promised value will be delivered and experienced (promise of order and delivered) -Both sides (company and customer (who can be an individual or an organization)) must have something to exchange and must value what the other has. (Customer and company value each other- if they don't have the money or appropriate income don't value that customer) What can be exchanged?: Usually money What are examples of things that are valued?: Quality, consistency, good price, sustainability, durability, appearance, utility, brand recognition (trust, expectation) -Impossible to be all things to all people --Pick and choose which levels of these things --Gives opportunity to create different things that appease to these different values/ different audiences to different amount Mission Statement - Answers -A formal declaration that describes the firm's overall purpose and what it hopes to achieve in terms of its customers, products, and resources. It should be clear, concise, meaningful and inspirational. (Every company has a mission statement) setting a strategic direction - Answers --Where are we now? --Competencies - what do we do well? --Customers - who can we serve? --Competitors - who else serves these customers in a similar fashion? -Where do we want to go? --Business Portfolio Analysis --Market share and market growth -Stars (high share of high growth) -Cash cows (generate lots of cash, high share of low growth) -Question marks (low share of high growth) -Dogs (low share of slow growth) The strategic marketing process - Answers -step 1(Planning phase)- SWOT- Situational (Internal/External); step 2- develop marketing strategies; step 3-Implementation & Control; Evolution of the Marketing Concept (used to be the "selling concept") - Answers -- Production Era: Management philosophy that emphasizes the most efficient ways to produce & distribute products - Sales Era: Managerial view of marketing as a sales function, or a way to move products out of warehouses to reduce inventory - Relationship Era: A business approach that prioritizes the satisfaction of customers' needs and wants - Triple Bottom Line (Corporate Sustainability): Profit, People, Planet: Financial, Social, and Environmental consequences of business decisions Production Era: (marketing concept) - Answers -Management philosophy that emphasizes the most efficient ways to produce & distribute products Sales Era: (marketing concept) - Answers -Managerial view of marketing as a sales function, or a way to move products out of warehouses to reduce inventory Relationship Era: (marketing concept) - Answers -A business approach that prioritizes the satisfaction of customers' needs and wants Triple Bottom Line (Corporate Sustainability): (marketing concept) - Answers -Profit, People, Planet: Financial, Social, and Environmental consequences of business decisions Steps in the Marketing Concept - Answers -There are many steps involved in creating a successful product Environmental factors: Social, Economic, Technological, Competitive And Regulatory Types of Organizations - Answers -For-profit, nonprofit, government agency for-profit - Answers -often called a business firm (Nike, Facebook, Toyota) (Profit is primary but not only goal) non-profit - Answers -non-governmental organization that does not have profit as its main goal (Boys and Girls Club, American Heart Association, Khan Academy) them a lot, if you are loyal to a brand you just would rather buy from them compared to a competitor so a quicker decision is made because of it. Heuristics: Normative tatics - Answers -Doing what you think other people think you SHOULD do. making a choice because people you matter to you think you SHOULD do it. contextual cues - Answers -sunk costs, endowment effect, compromise effect(extremeness aversion), decoy effect(asymmetric dominance). contextual cues: sunk costs - Answers -costs you have incurred but cannot get back. EX: reselling a concert ticket or returning it isnt sunk, but if you buy a concert ticket that you HAVE to keey its a sunk cost. You have to go to a concert over something else that could be planned because you already paid for it and it was a lot of money. This can make someone regret going and purchasing a ticket, so they begin to hate the artist because it was a lot of money and you are missing out on something. contextual cues: endowment effect - Answers -when someone feels like a product has more value because it feels like it's theirs or it is actually theirs. EX: going to a store, picking a shirt, and the employee takes it from you and offers a fitting room. They want you to try it on because once you do it has been endowed with more value, you feel like you own it alr more because you are wearing it. When you negotiate for items they same effect also occurs. Or test driving a car, which can make willingness change to wanting to buy it. contextual cues: compromise effect - Answers -(extremeness aversion) When you have three or more items that are kinda equally priced (but still different) they are different quality levels, if people engage in the compromise effect they look at the highest end version, lowest end version and compromise for the middle one. They dont like the extreme or the cheapest version. Tall, grande, venti- grande looks like the compromise, introduce a trenta the venti doesn't look as big anymore. contextual cues: decoy effect - Answers -(asymmetric dominance)Decoy pushing you to a diff option.8.99 for a regular popcorn compared to the large popcorn which is 9.99 why buy the regular when the large is just one more makes you feel dumb if you dont buy it, "why would I not do that?" when you have a an option that no body wants the more expensive one suddenly looks appealing post-purchase evaluation - Answers --Consumer satisfaction/dissatisfaction after purchase of product is critical --Degree of satisfaction is influenced by whether or not expectations of product quality are met/exceeded --Marketing communications must create accurate expectations for the product --Cognitive dissonance (when behavior and attitude are not consistent) is common so marketers do what they can to help reduce it. Post-purchase regret is one type of cognitive dissonance What does satisfaction mean? - Answers -satisfaction means i had a good experience and i expected a good experience. Underpromised over deliver, promise JUST below where you can deliver because then it will be more than you expected. When you put a promise out there you have to deliver cognitive dissonance - Answers -Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions. When attitude and behavior are not aligned, one type of cognitive dissonance is post purchase regret. Buying something that you regret. We want to make them feel good about their purchase, you can follow up after the sale. Reaching out after to make sure everything is okay, if there is an issue they will make it feel easily resolvable. Getting rejected "i didnt wanna go there anyways" Sociocultural Environment - Answers --Changes in Cultural Values, Ideas, Attitudes --E.g., Health and Fitness --Goods vs. Experiences --Gender roles --Racial and ethnic diversity -Increasing expectation of authenticity and transparency -Importance of education -Growing reliance on peers as brand advocates -Language --Impact of language on brand names Environmental Scan - Answers -Process of continually acquiring information on events occurring outside the organization. This is done to identify and interpret potential trends that might impact the business. example of "Sociocultural Environment" given in class - Answers -Picking sides politically, inclusion, adjust, corporate responsibility and being transparent on hiring practices, labor, etc, (ex: drunk elephant 12 year olds LMAO), "health trend", dry January, vegans in LA, korean skincare influence, looking at ingredients to make sure they are "healthy or clean" is very common now, checking the sourcing of products for food or if products are animal tested, promote if products are locally sourced. ADJUST TO WHAT THE TRENDS ARE Socio-Cultural Forces - Answers -- CHANGES in cultural values alter people's needs and desires for products --✔️Health, nutrition and exercise growing in importance (discuss egocentrism) --✔️Definitions of family are changing -Changes in a population's demographic characteristics lead to changes in how people live and consume products -A more diverse customer base means marketing practices must be modified and diversified to meet changing needs --what influences these people (social classes, religious beliefs, wealth distribution, language) difference between Sociocultural Environment and Socio-Cultural Forces - Answers - While Socio-cultural forces are what influences a group of people such as social classes, religious beliefs, wealth distribution, language; sociocultural environment is changes to the value system of a society. "social environment consists of the customs and traditions of the society in which business is existing. It includes the standard of living, taste, preference and education level of people living in the society where business exists" Economic Environment - Answers -Indicators of Economic Health, The Business Cycle, Consumer income Indicators of Economic Health - Answers -Gross Domestic Product (GDP); unemployment; price changes The Business Cycle - Answers -All economies go through the Business Cycle: Recession, Depression, Recovery, Prosperity, Inflation Consumer income - Answers -gross income, disposable income, discretionary income gross income - Answers -total money made in a year by a person, household, etc. disposable income - Answers -money left after taxes, used for necessities, food, housing, clothing, transportation discretionary income - Answers -money left after paying for taxes and necessities (Some companies rely on that and make money when people are using their discretionary income based on the economy) Do all goods and services suffer in a recession? - Answers -Not not everything suffers, some things suffer but some things also do BETTER. Need to buy more off because of recession. Less expensive options do better. what things are "recession proof"? - Answers -Private Label (Generics, Store brands), Camping Gear (vs. lavish vacations), Inexpensive automobiles/Used Autos, Auto repair shops/maintenance (vs. buying new), Home renovators (vs. building or buying new), Education sector (can't get a job, choose to further education), Cheaper products overall Advantages and Disadvantages of technological innovations - Answers -People buy new tech to keep up to date with things, companies also need to keep up to date with (how you get rid of remaining product, how much you throw away after use, reselling, how to recycle product) What effects consumer behavior? - Answers -consumer behavior doesn't reflect the action of a single individual (we are all impacted by other people). combo of people are involved in a purchase (friends, coworkers, family) they all play different roles (i.e influencer, decider, buyer, end user, or gatekeeper) is it easy to find out what consumers want and then produce it? - Answers -NOPE; competitors can do the same thing, consumers dont always know what they want or whats possible. So consumers may even want something that isnt feasible. consumers preferences are also flexible and change over time, people need stuff that they didnt before but now that they have it they cant live w out it INTERNAL INFLUENCES: motivation - Answers --Internal state that drives us to satisfy needs by activating goal-oriented behavior (Drives behavior, need to know why you want something) -Understanding what motivates consumers can help marketers do a better job of segmenting the market and communicating with the chosen target market types of decision making (in consumer behavior) - Answers -EXTENDED (big decisions like picking what college to attend), LIMITED (routinely made decisions like looking at different color and sizes for clothing or shoes), HABITUAL (dont need to spend a lot of time, easy to make because you arent gathering info, like going grocery shopping) INTERNAL INFLUENCES: attitudes in marketing - Answers --Attitudes - learned predispositions to respond favorably or unfavorably to stimuli on the basis of relatively enduring evaluations of people, objects, and issues. -Attitudes are ubiquitous in marketing --Attitude toward the ad, attitude toward the product (What they are thinking towards everything (ad, spokesperson, etc), bad advertising, is it bad or is it just not meant for you? Ads can hit certain types of people. Instead of thinking of thats a bad ad think who is the target audience for this) INTERNAL INFLUENCES: personality - Answers --The set of unique psychological characteristics that consistently influences the way a person responds to situations in the environment -Individual Differences --Self-concept --Individualism --Motivation to comply INTERNAL INFLUENCES: age - Answers --Products can be targeted at certain age segments --Age groups --Cohorts/Generations --Life cycle -How would the same product be marketed differently to different ages? What changes? -Seniors? -Children? -Recent college graduates? (Important to know your audience, know who they are etc.) INTERNAL INFLUENCES: lifestype - Answers --Lifestyles reflect a pattern of living --What are their values, hobbies, etc. a part of understanding your consumers -Marketers seek to describe people according to activities, interests, and opinions -Psychographics: We group consumers according to psychological and attitudinal similarities Situational factors - Answers -physical environment, scarcity Physical environment - Answers --Store environment - layout, mirrors, signage (Make the vibe of a store very specific, music, smell, lighting, speaks to the perception of the brand. Apple store, bath and body works, abercrombie and fitch, hollister. Certain hot topic music, tjmax music, urban music.) -Web environment -Sensory impacts - scents, lighting, colors influences on decision making - Answers -internal, situational, and social problem recognition - Answers --Consumers need adequate information to make a decision (EX: How did you do your searching for a decision, ex: new school choice: visit, search up information, talk to people) --Internal & External Search --Pre-purchase & Ongoing Search --Influence of Prior Knowledge Information Search - Answers --Consumers need adequate information to make a decision (How did you do your searching for a decision, ex: new school choice: visit, search up information, talk to people) --Internal & External Search --Pre-purchase & Ongoing Search --Influence of Prior Knowledge -Changes in this process because of technology Scarcity (of product and of time) - Answers --Store environment - layout, mirrors, signage (Make the vibe of a store very specific, music, smell, lighting, speaks to the perception of the brand. Apple store, bath and body works, abercrombie and fitch, hollister. Certain hot topic music, tjmax music, urban music.) -Web environment -Sensory impacts - scents, lighting, colors Social influences - Answers -culture, subculture, social class, group memberships, opinion leaders, gender roles Heuristics: Price - Answers -The price can determine quality, more expensive=better, less expensive=worse SOCIAL INFLUENCE: Social class - Answers -The overall rank or social standing of groups of people within a society, according to factors such as family background, education, occupation, and income. conspicuous consumption, parody display, compensatory consumption. SOCIAL INFLUENCE: cultures and subcultures - Answers -- Culture: The values, beliefs, customs, and tastes produced or practiced by a group of people -Includes key rituals like weddings and funerals -Marketers tailor products to cultural values -Examples of cultures --Ethnic cultures, racial culture, country culture, geographic culture, university culture, etc. SOCIAL INFLUENCE: opinion leaders - Answers --Are frequently able to influence others' attitudes or behaviors (Not social media influencers, but they like to be the first ones to buy products, very knowledgeable, and they like to share what they though of a product) -Have high interest in product category -Update knowledge by reading, talking with salespeople, etc. -Impart both positive and negative product Information -Are among the first to buy goods Heuristics: affect - Answers -(AAH)fect is when you just go with whats feeling good at the moment, ex: you are craving food at the moment. Conspicuous consumption - Answers -Consuming in a show off way, buying things to show off. Higher class people buy things for their class and lower class look up to that as a goal Parody display - Answers -status symbols that move in the opposite direction. When people in a lower social economic class are using a product, they use it for a long time because its what they can afford, someone of a higher class adopts it and it becomes more desirable and price goes up because higher class are buying it. EX: trucker hats price went up, jeans with holes in them, called parody because they are kinda making fun of the people who had them before