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MKT 2010 Study Guide - Midterm Guide: Micromarketing, Internal Communications, Market Segmentation

Course Code
MKT 2010
David Reid
Study Guide

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Chapter 1
Marketing: the process by which companies engage customers, build strong customer relationships, and create customer value to capture value from customers in return
engaging customer and managing profitable customer relationships
Marketing concept: the philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition
4 P’s: price, production, promotion, place
Exchange: the act of obtaining a desired object from someone by offering something in return
Needs: state of felt deprivation
Wants: the form human needs take as they are shaped by culture and individual personality
when backed by buying power, they become demands
Customer perceived value: the customer’s evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers
Target market: a set of buyers who share common needs or characteristics that a company decides to serve
Chapter 2
Strategic planning: the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing market opportunities
1. Define company mission 2. Set company objectives and goals 3. Design business portfolio 4. Plan market and other functional strategies
Market oriented mission statement: states the organization’s purpose and what they wish to accomplish in the larger environment guides people in the organization
BCG growth-share matrix: classification of a company’s SBUs
1. Stars: high-growth, high-share businesses or products that often need heavy investments to finance the rapid growth eventually will slow down and turn into
cash cows 2. Cash cows: low-growth, high-share businesses or products that need less investment to hold market share produce a lot of cash that a company uses
to pay bills and support other SBUs that need investment 3. Question marks: low-share business units, high-
growth markets that require a lot of cash to hold their share, let alone increase it management must think
which ones should try to be built into stars and which should be phased out 4. Dogs: low-growth, low-share
businesses and products that generate enough cash to maintain themselves but do not promise to be large
sources of cash
Product/market expansion grid: how companies identify growth opportunities (see right)
Chapter 3
Company’s marketing environment: factors and forces that affect a firm's ability to build and maintain successful
customer relationships
Microenvironment: the factors close to a company that affect its ability to engage and serve customers (company, suppliers, marketing intermediaries, customer markets,
competitors, publics)
Macroenvironment: the larger societal forces that affect the microenvironment (demographic, economic, natural, technological, political, cultural forces)
Chapter 4
Market research process: 1. Define problem and research objectives 2. Develop research plan for collecting information 3. Implement the research plan collecting and
analyzing date 4. Interpreting and reporting the findings
Primary data: information collected for the specific purpose at hand
Secondary data: information that already exists somewhere, having been collected for another purpose
3 types of research design:
exploratory research: gather preliminary information that will help define the problem and suggest hypotheses
descriptive research: to describe things, such as the market potential for a product or the demographics and attitudes of consumers who buy the product
casual research: to test hypotheses about cause-and-effect relationships
Types of data collection methods: commercial online databases, internet search engines, questionnaires, telephone
interviewing, etc.
Chapter 5
Reference groups: serve as direct (face-to-face) interactions or indirect points of comparison in forming a person’s
attitude or behavior
word-of-mouth influence: personal words from trusted friends and family is credible
opinion leaders: people within reference group who exert social influence on others w/ their social skills
buzz marketing: enlisting or creating opinion leaders to serve as “brand ambassadors” to spread the word
about a company
online social networks: online communities where people socialize and share opinions
Maslow’s Hierarchy of Needs: humans need arranged hierarchy w/ most pressing at bottom and least pressing at top
Model of Consumer Buying Behavior: below triangle
Consumer decision-making process: 1. Need recognition 2. information search 3. evaluations of
alternatives 4. purchase 5. post-purchase behavior
Adoption process: the mental process when an individual passes from first learning about an
innovation to final adoption
1. Awareness 2. Interest 3. Evaluation 4. Trial 5. Adoption
Diffusion process: when a new idea or product is accepted in a market
Chapter 6
Members in purchase decision process: 1. Users: members in an organization who use the
product/service 2. Influencers: provide information for evaluating alternatives (often tech people) 3. Buyers: formal authority to select the supplier and arrange terms of
purchase 4. Deciders: formal or informal power to select or approve the final suppliers 5. Gatekeepers: control the flow of information to others (ex: purchasing agents often
prevent sales people from seeing users or deciders)
Types of Buying Situations:
straight rebuy: buyer reorders something without any modifications
modified rebuy: buyer wants to modify product specifications, prices, terms, or suppliers
new task: a company buying a product or service for the first time
systems (solutions) selling: firm that engages business customers deeply & provides most complete system for meeting a customer’s needs and solving its problems
Factors affecting adoption:
relative advantage: the degree to which the innovation appears superior to existing products
compatibility: the degree to which the innovation fits the values and experiences of
potential consumers
complexity: the degree to which the innovation is difficult to understand or use
divisibility: the degree to which the innovation may be tried on a limited basis
Consumer marketing sells products to individual consumers and households who purchase for their
own consumption. The B2B market; however, is composed of a succession of companies acquiring
goods and services to produce other products and services that are sold, rented or supplied to other
companies (has fewer, but larger buyers)
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