307 midterm 1

focus on products and technology, driven by technology rather than customer needs

primarily uses promotion to achieve corporate goals

focus on developing customer needs, effort to find solutions to problems even if it requires new product or technology

slow adaptation to changing needs, emphasis on selling

emphasis on social responisbility even if this requires sacrifice of profits

the idea that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives

based on an understanding that sales don't depend on an aggressive sales force but rather on a customer's decision to purchase a product

compensatory: based on overall value

non-compensatory: absolutley must meet at least one important criterion

• level of consumer involvement
• length of time to make decision
• cost of good or service
• degree of info search
• number of alternatives considered

• little involvement in selection
• frequently purchase low cost goods
• may stick with one brand
• buy first, evaluate later
• quick decision

• low levels of involvement
• low to moderate cost goods
• evaluation of a few brands
• short to moderate time to decide

• previous experience
• interest
• perceived risk of negative consequences
• situation
• social visibility

• important attribuets
• price
• brand names
• quality and reliability
• threshold level of perception
• product/repositioning changes
• foreign consumer perception

• psychological needs
• safety needs
• social needs
• esteem needs
• self-actualization

• substantiality: seg must be large enough to warrant a special marketing mix
• identifiability and mesurability: seg must be identifiable and their size measurable
• accesibility: members of targeting segments must be reachable w/marketing mix
• responsiveness: unless a seg responds to a marketing mix differently, no separate treatment is needed

characteristic of individuals, groups, or organizations that marketers use to divide a total market into segmentations

• geographic: regional differences
• demographics: age, gender, ethnicity, willingness to spend
• psychographics: personality, motives, lifestyle
• benefits: taste, convenience, time-saving
• usage rate: dividing a market by the amount of product being bought or consumed

• reduced competition
• opportunity for growth

• marketing approach that views the market as one big market with no individual segmenst and thus requires a single marketing mix
• advantages: potential savings on promotion and marketing costs
• disadvantages: unimaginative product offerings, company more susceptible to competition

• used to select one seg of a market for targeting market efforts (niche)
• advantages: concentration of resourcees, meets narrowly defined seg, small firms can compete, strong positioning
• disadvantages: seg too small or changing, large competitors may market to niche segment

• chooses two or more well-defined market segs and develops a distinct marketing mix for each
• a: greater financial success, ecnonomies of scale
• d: high costs, cannibalization

utilizes customer info to build long-lasting, personalized and profitable relationship with each customer

• attribute
• price and quality
• use or application
• product user
• product class
• competitor
• emotion

• 1. define problem
• 2. plan design/primary data
• 3. specify sampling procedure
• 4. collect data
• 5. analyze data
• 6. prepare/present report
• 7. follow up

• a: saves time and $, aids in determining direction for primary data collection, pinpoints the kinds of people to approach, serves as a basis of comparison for other data
• d: may not give adequate detailed info, may not be on target with research problem, quality and accuracy of data may pose a problem

• a: answers specific research problem, data are current, source of data is known, secrecy can be maintained
• d: expensive, piggybacking may confuse respondents, quality declines if interviews are lengthy, reluctance to participate in lengthy interviews

• people watching people
• people watching an activity
• machines watching people
• machines watching an activity

• measurement: error when there is a difference between the info desired and info provided
• sampling: when a sample somehow doesn't rep target population
• frame: when a sample drawn from a population differs from the target population
• random: b/c the selected sample is imperfect rep of the overall population

a system for gathering info from a single group of respondents by continuously monitoring the advertising, promotion, and pricing they are exposed to and the things they buy

• philanthropic
• ethical
• legal
• economic

the idea that socially responsible companies will out perorm their peers by focusing on the world's problems and viewing them as opportunities to build profits

• present value of $ in the future
• PV(x,i)n = x/(1+i)^n
• x = amount
• i = interest rate
• n = number of years

• social
• demographic
• economic
• technological
• political/legal
• competitive

• age 8-14
• population 29 million
• emerging as richest generation
• TV ads are "just advertising"

• age 18-33
• population 60 million
• word of mouth marketing very effective

• age 34-47
• population 40 million
• savvy and cynical
• entering money making years

• age 48-66
• population 77 million
• $1 trillion in spending power for those 50-60
• income will grow as they keep working

• consumers' incomes: incomes have risen at a slow pace, consumers strapped for cash, education is the primary determinant of earning potential
• inflation: measurement of the decrease in the value of money, expressed as the percent reduction in value since the previous year
• recession: period of economic activity characterized by negative growth, which reduces demands for goods and services

• reengineering
• experience curves
• efficient labor
• production innovation

• one or more unique aspects of an organization that cause target consumers to patronize that firm rather than competitors
• it is sustainable if it cannot be copied by the competition

• product: includes product development, production assistance, packaging, warranties, servicing, branding, company image, physical product unit
• place: distribution strategies make the product available to consumers when and where they want them
• promotion: personal selling, advertising, sales promotion, PR. serves to inform, educate, persuade, remind target markets about product benefits
• price: important component because it is flexible and allows revenue to be estimated and measured

• stars: high growth, high market share
• cash cows: low growth, high market share
• dogs: low growth, low market share
• question marks: high growth, low market share