Marketing Final

  1. permeates society - can't get away from it
    2. there are a lot of jobs in marketing
    3. marketing costs a lot of money
    reasons to study marketing
  2. the activity for creating, communicating, delivering, and exchanging offerings that benefit the organization its stakeholders and society at large
  3. a way of thinking or organizing that says all elements of business are oriented toward customer satisfaction at a long term profit -
    marketing concept
  4. product price place(distribution) promotion - combination of decisions you will make regarding the 4 p's - use it to satisfy customers
    marketing mix
  5. 1. Define the target market - people you wish to serve
    2. develop a marketing mix to satisfy the target
    marketing strategy
  6. difficult to find - are beneificial because they 1. serve as a reference point 2. you can concentrate a firm or organization around a goal 3. serve as motivation 4. aid in decision making
    business goals
  7. the moral principles and values that govern the actions and decisions of an individual or group helps when faced with a moral dilemma
    marketing ethics
  8. social, economic, technological, competitive, regulatory
    marketing environment
  9. arrangements to tap the flow of information that influences marketing management 3 components: Databases, marketing intelligence system and marketing research
    marketing information systems
  10. facts and figures already recorded - part of marketing research
    secondary data
  11. systematically gathering information
    marketing research
  12. facts and figures newly colected for product - needs to be generated - part of marketing research
    primary data
  13. 3 ways to sales forecast
    • 1 what people say
    • 2. what people do
    • 3. what people have done
  14. consumer decision making process 5 steps
    • 1 problem recognition
    • 2. Information search
    • 3. evalueate criteria - alternatives
    • 4. make purchase decision
    • 5. post purchase behavior
  15. models partially explaining economic behavior
    economic, learning, psycho analytical model, sociocultural model aka social psycological model
  16. consumer behavior is learned result from repeated experience or reasoning
    learning model
  17. figure out why you purchase certain things- not only because of functionality but also symbolism
    psycho anylitical model
  18. behavior of groups- social class affects consumption - psycological difference between groups - comsupmtion patterns are symbols of who you are
    social psychological model
  19. producing goods in one country and selling them in another country
  20. a company offers the right to a trademark, patent, trade secret, or other similarly calued items of intellectual property in return for a royalty or a fee
  21. when a foreign company and a local firm invest together to create a local business
    joint venture
  22. a domestic firm investing in and owning a foreign subsidary or division
    direct investment
  23. one of the buying center roles - what is it used for
  24. one of the buying center roles research and development are important - work on specific problem
  25. one of the buying center roles controller of information to you from within the organization
  26. one of the buying center roles who decides to buy your product - most important
    decision maker
  27. take a heterogeneous maket and dividng it into homogeneous subsets
    market segmentation
  28. no difference or segment- don't want to exclude any part of the market - want to satisfy everyone - market segmentation
    undifferentiated strategy
  29. firm choses multiple marketing mixes and seperates it into each market - market segmentation
    differentiated strategy
  30. chose marketing mix and focus on one target market - market segmentation
    concentrated strategy
  31. adoption process
    • awareness
    • interest
    • evaluation
    • trial
    • adoption
  32. people adopt new products at different times - innovators, early adopters, early majority, late majority,laggards
    diffusion process
  33. 1. service quality is more difficult to evaluate than product quality
    2. customer satisfaction with your service is based on a comparison of the customer's service expectations and the actual service performed by you
    3. the customer evaluates both the service outcome and the service process
    themes in evaluating service quality
  34. reliability, responsive, competence, access courtesy, communication, credibility, security, understanding, tangibles
    variables in evaluating service quality
  35. middle men reduce
    1. ___ of assortment - difference between manufactuere makes and what a consumer wants
    2. ____ of quantity - difference between amount product makes and amount we want
  36. why are middle men eliminated
    the idea that products are cheaper without them
  37. kinds of distribution channels
    • direct p--->c
    • indirect p--->r--->c
    • p--->w--->r--->c
  38. elements of physical distribution
    • 1. determine nature of shipment
    • 2. transporation
    • 3. warehousing
    • 4. inventory
    • 5. order processing
  39. where we buy most of our stuff - all activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use
  40. cigaretts have come a long way - they used to be in a vending machin and wanted to raise a price to 22 cents but no one has right change put 3 pennies in package
    automatic vending
  41. catalogues- manzer receives tons of magazines
    direct mail
  42. describes how new forms of retail outlets enter the market - usually they enter as low status, low margin stores - becomes higher status went to tulsa to buy razor in a warehouse - it moved up in cycle
    wheel of retailing
  43. a lot of migration from europe- john watamaker - brough over from Europ - put different departments all in one store - no walls - Ireland potato famine - North for Civil War took IRish off boats
    1860s Department stores
  44. Sears and Montgomery ward - Westward expansion - people in areas without stores can get anything - plows - Bug 10 Michigan Ohio, Iowa - began as western atheletic conference - Lincoln from west(Illinois)
    1870-1880s catalog
  45. stores all the same in different locations - Sears, Penny's, WWI people moving - cars if in one town and move you like to have same store in new town - urbanization
    1920s chain stores
  46. Great Depression - people want low cost items if make larger - more stuff lower prices - no jobs, hard living, roughlife, low service low margin
    1930s super markets
  47. malls - WWII over - men come back don't want farm - cities crowded - move into suburbs- people go to shop down town - if put in suburb - successful resisted down town was social
    1940s shopping centers
  48. Wal mart is not this!! low service, low margin, electric razors, appeared and disappeared in the 30s were succssful in the 50s because of brand names
    1950s discount houses
  49. Wal Mart - transportation - desire for a lot of stuff
    1970s mass merchandise
  50. now have cable and can use it to buy things
    1980s cable shopping
  51. because of internet for research - data communication -1 disappeared and came back
    1990s internet shopping
  52. part of the marketing mix - communication, advertising, etc. all of tools can be used to inform, persuade, and remind of benefits
  53. combination of 1 or more communication tools is
    promotional mix
  54. primary functions of communication tools
    inform, persuade, remind
  55. controversial - dumb because people do it all the time - to go to class - political parties- banning happy meals with toys -
  56. persuasion model - like a rhetorical question - someone directing information at an individual wo isn't interacting- cheerleaders, Hitler, Obama, Charisma - having a presence
    rhertorical model
  57. persuasion model - has bad reputation - all it is is trying to win you to their cause- OSU uses in recruiting - Conoco Phillips commercial - prisine valley with natural gas unit
    propaganda model
  58. persuasion model - give or take with incentives and threats- NFL gives incentives, try to do this with grades, salary - secret is to be prepared and know what you are talking about - ask for base price
    negotiation model
  59. persuasion model - Sender--encode-->message--decode-->receiver - message is a set of meanings - perfect communication is when the receiver gets the exact message - problem - put into a code and the receiver must decode it - meanings are in people - saying nice shoes with different faces - flipping someone off -
    communication model
  60. part of the communication model - knowledge makes them up - background etc - if want to ensure perfect communication you need overlapping fields of experience - his mom talking about the depression - talk to athletic department for goal setting 8 am vs 8 pm - if proctor and gamble spend 3 billion on ads they want us to decode the message - must design it so they don't have much overlap
    field of experience
  61. example of the power of an ____ - fixing part of line and making sure someone understands the problem and what he wants to happen to fix them
  62. want to be trustable - trying to influence - expertise position power - people will automatically trust- why banks have so many vps- schmidlap example - trust people with titles - if someone says your boyfriend is cheating on you you trust them depending on who they are - punishment of juvenile delinquent experiment
    sender/source credibility
  63. enhance or decrease credibility - VP schmidlap - knows or doesn't know what hes talking about - on 1st day he discussed his background and built credibility - at dow made sure they knew he had chem degree - 25 yrs ago article - what atheletes are recognized -
    affective component
  64. between sender and message - people love consistency - stay in abusive relationship better than unknown - if parent sends message - don't smoke; consistent - if parent smokes it is not consistent - could be if hire to be spokesperson - if selling in hispanic area - use person with hispanic background - use john wayne and not elton john for remington rifle
    source consistency
  65. advertisment, promotional selling, public relations
    promotional mix
  66. a form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prespective customers, stockholders, suppliers, employees, and other publics about a company and its products or services - don't directly pay for this- won award put in newspaper - OSU sent articles to hometown - if receive it have credibility because it is from a nuetral source
    public relations
  67. a short term inducement of value offered to arouse interest in buying a good or service - used to support persoanal selling and ads - offer cheese in store with coupon in mail - joes switched to pepsi because they fixed the machine faster - and give this to customers- important to acknowledge the mistake
    sales promotion
  68. uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet - catalogues
    direct marketing
  69. Six c's of online shopping - 8 second rule -
    convenience, choice, customization, communication, cost, and control
  70. functionality of holding the product - component of a product refers to any container in which it is offered for sale and on which lable info is contained - taco at bell - can - has communication benefits - coke - color- colors attract attention - choose yellow thing - must differentiate - shape matters too - mr clean micture - donald duck orange juice -
  71. must be consistent - OSU didn't do it for a while - need to coordinate
    integrated marketing communication
  72. to inform, to persuade, to remind, to phase out
    promotional objective
  73. channel strategy - start at top and push down - get wholesaler to take product to retailer to customer
    push strategy
  74. channel strategy - at bottom and pull product through channel through promotion - ad to consumer -ask retailer for it as to wholesaler for it pharmecutical reps
    pull strategy
  75. usually by % of sales - makes no sense to do this because sales shouldn't generate ads reverse it if bad year then you must advertise more -
  76. any paid form of nonpersonal communication about an organization - must design message to put in media to shift the demand curve - if company has more cost than the customer has more cost - if this cost goes up the others must go down - if making mroe product costs go down if price goes down faster than advertising goes up sell product for less
  77. instutitional ad - builds good will or image for customer 1 advocacy or institutional
    product ad
  78. devoloping, executing, and evaluatin
    designing and ad campaign
  79. super bowl ads cost a lot because they reach a lot of viewers
    setting budget
  80. fear if yo udont do it bad things will happen(dandruff shampoo) - alarm system, moderate fear is best - history channel - guy in WWII only so many guys would live - in mcallister talking to managers of prision agreed that needed just enough - sex appeal is used in ads too - humor etc.
    appeals - message content
  81. usually done before and after the ads are run know half my advertising is wasted but don't know which half - how to find out
    executing and evaluating ads
  82. conducted before the advertisements are placed in any medium - want to get something in return for the ad - make sure people are getting the message - AT&T fishing story - humorous - guys were making hamburgers and everyone missed that
  83. test ads after they are put in - ultimately interested in sales - do you get sales for what you put in - difficult to directly measure- if put ad in the o colly you don't know that your sales came from it or some other reason
    post test
  84. more commumication more sales - use tests to measure knowledge in class - doesn't directly work on it - 3 parts - exposure - awareness/recall - attitudes - part of post test
    communication effect
  85. part of communication effect of post tests - 2 ways to do this aided or unaided -a multiple choice test would be considered aided
  86. part of communication effect of post tests - if positive will act positively - talk to kid absent 10 times - not dropping course- it was his favorite class - positive ___ negative behavior
  87. part of communication effect - measure directly - difficult but possible
    sales effect
  88. form of sales promotion in movies - know they are using certain product - notice them - ET and reeses pieces - reversal of this is the Bubba Gump Shrimp Company- not too powerful - don't do drugs doesn't always work
    product placement
  89. the two way flow of communication between a buyer and seller ,often in a face to face encounter, designed to ifluence a person's or group's purchase decision - not at a retail store- field selling- require college- if objective is to get to top one way is though this - can't get to top with staff positions
    personal selling
  90. why does personal selling get you to the top
    • 1. line position
    • 2. visible
    • 3. can measure the results and reward
  91. personal selling in ____ very important - link to the customer - sales person becomes the company - expensive to have people in the field so it better generate a lot of sales
  92. categories of selling jobs - majority of selling jobs - mc donalds - sales clerks - not very aggressive some of them require college education - frito inventory, campbells soup - stores place order - store is going to buy no matter what the question is how much
    order takers
  93. sales in conventional sense - aggressive approach to get orders- solve problem - identifies prospective customers to buy, closes sales, and follows up on customers' use of a product or service - working for xeros went to places trying to convince them to get a copier - got him to executive position
    order getter
  94. needs technical expertise - the t.v. glass/vaccuum example - latex and apoxy - there to support the order getter
    customer sales support
  95. dow just developed packing noodles- wanted bob grieser to introduce the companies that could use it and give the number of the order getter- bad job - another example would be pharmecuetical sales rep - pharmacy --MD-->Customer - how do they know what to prescribe - the pharm sales rep -
    missionary sales man
  96. this is what the order getter does - prospecting- preapproach - approach - presentation - close - follow up - might only do some of these but might do all of them
    peersonal selling process
  97. people are reluctant to ask for order- afraid of rejection - asking girls out example with Jim Pay - how did he get girls because hes so nerdy
    close sales
  98. planning the selling program and implementing and evaluating the personal selling effort of the firm - Ben Plansky - didn't want to be manager because he doesnt want to move, like his job, and had good pay and flexibility - doing this for sales people is difficult Ditch Witch has sales people all over the place - sets objectives and territories
    Sales Management
  99. effective ____ ____ and ______ __ ________ is one of the most crucial tasks of sales management. It entails finding people who match the type of sales position required by a firm - differ greatly between order taking and order getting - trying to match what you want with person you want to hire - not one person that can sell anything - Different selling situtations require different skills - ag guy vs airplane
    recruitment and selection of salespeople
  100. part of recruitment and evaluation of sales person - resume, facebook, tests at interviews - AT&T interviewed him and gave him a job but he had a lazy eye - ended up working for dow
    evaluating matches
  101. the ability to understand one's own emotions and the emotions of people with whom one interacts on a daily basis - people with high emotional quotient are better than people with high IQ's
    emotional intelligence
  102. can take a week or months or over a year- he was inside sales person training to be outside - train you on product knowledge - Dow had a 2 week chemistry course -
    sales force training
  103. go hand in hand - kid who is highly motivated to sleep - always motivated -getting paid
    sakes force motivation and compensation
  104. Theroy of motivation - do something because you expect to get something - must believe all 3 parts
    1. increased effort yields increased preformance
    2. increased preformance yields reward
    3. reward is desireable
    expectancy theory
  105. study 20 hours and get a d if you increase effort you will do better- sales person increase 5- 10 calls - won;t do it - as a manager - need to change how you study and wo you call
    increased effort yields increase preformance
  106. expect to get something- not always how it works if increase preformance 98% staff say no reward - can't believe the reward will be money
    increased preformance yields reward
  107. if money have problems- his son mowed lawn and hated it- did it while runnin and it looked bad - said son could drive his moms car to school
    reward is desirable
  108. P up TR down P down TR up - inverse relationship between price and total revenue
    elastic demand
  109. P up TR up - P down TR down - direct relationship between price and total revenue
    inelastic demand
  110. skim milk - skim the cream off the top - pricing policy - set high price and get the people willing to pay it then lower the price and sell more- when he got his dr. moved in to rent houes and lowered rent 6 mos later - but he had a contract need this: 1. operating in inelastic part of demand 2. make small quantities 3. have barrier to entry ( candy maker example)
    price skimming
  111. new product set low price and penetrate the market then raise the price- 1. operate in elastic demand 2. large production quantity 3. barriers of entry - candy maker example
    penetration pricing
  112. involves setting prices a few dollars or cents under an even number - possibly psychological - probably not really a hidden meaning theodore giesel - Dr. Suess and green eggs and ham - just trying to support family - making change to prevent theft
    odd and even pricing
  113. law affects the market
    1. consumer protection laws- cigarette pack - calories
    2. pro competition laws
    pricing and law
  114. disctiminate treat one group differently - pay gap etc. - discriminate on price to one group and not another - not illegal unless it harms competition - age - life insurance student would pay less than Manzer - car insurance - guys pay more than girls
    price discrimination
  115. want to be the _____ ____ if
    1. have market power
    2. be able to divide markets
    3. prevent arbitrage - plexiglass and false teeth example
    price discriminator
Card Set
Marketing Final
Marketing Final