marketing exam 1.docx

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Bruce Weinberg

Chapter 2 Developing Successful Marketing and Organizational Strategies Strategy is an organization’s long-term course of action designed to deliver a unique customer experience while achieving its goals The corporate level is the level in an organization where top management directs overall strategy for the entire organization. A strategic business unit (SBU) is a subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers The functional level is the level in an organization where groups of specialists actually create value for the organization. Cross-functional teams consist of a small number of people from different departments in an organization who are mutually accountable to accomplish a task or common set of performance goals. Core values are the fundamental, passionate, and enduring principles of an organization that guide its conduct over time. A mission is a statement of the organization’s function in society that often identifies its customers, markets, products, and technologies. The term is often used interchangeably with vision. An organizational culture consists of the set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization. A business is the clear, broad, underlying industry or market sector of an organization’s offering. A business model is the strategies an organization develops to provide value to the customers it serves. Goals or objectives are the statements of an accomplishment of a task to be achieved, often by a specific time. Market share is the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself. A marketing metric is a measure of the quantitative value or trend of a marketing activity or result. A marketing plan is a road map for the marketing activities of an organization for a specified future time period, such as one year or five years. A business plan is a road map for the entire organization for a specified future time period, such as one year or five years. A competitive advantage is an unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation. Business portfolio analysis is a technique that managers use to quantify performance measures and growth targets to analyze its clients’ strategic business units (SBUs) as though they were a collection of separate investments. Diversification analysis is a technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products. The strategic marketing process is the approach whereby an organization allocates its marketing mix resources to reach its target markets. A situation analysis involves taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization’s marketing plans and the external factors and trends affecting it. A SWOT analysis is an acronym describing an organization’s appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats. Market segmentation involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action. Marketing strategy is the means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it. Marketing tactics are the detailed day-to-day operational decisions essential to the overall success of marketing strategies. Chapter 3 Scanning the Marketing Environment Environmental scanning is the process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends. Social forces are the demographic characteristics of the population and its values. Demographics describe a population according to selected characteristics such as age, gender, ethnicity, income, and occupation. Baby boomers consist of the generation of children born between 1946 and 1964. Generation X includes the 15 percent of the population born between 1965 and 1976. Also called baby bust. Generation Y includes the 72 million Americans born between 1977 and 1994. Also called echo-boom or baby boomlet. A blended family is a family formed by merging two previously separated units into a single household. Multicultural marketing consists of combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races. Culture consists of the set of values, ideas, and attitudes that are learned and shared among the members of a group. The economy pertains to the income, expenditures, and resources that affect the cost of running a business and household. Gross income is the total amount of money made in one year by a person, household, or family unit. Also known as money income at the Census Bureau. Disposable income is the money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation. Discretionary income is the money that remains after paying for taxes and necessities. Technology consists of the inventions or innovations from applied science or engineering research. Marketspace is an information- and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digitized offerings. Electronic commerce is any activity that uses some form of electronic communication in the inventory, exchange, advertisement, distribution, and payment of goods and services. Competition consists of the alternative firms that could provide a product to satisfy a specific market’s needs. Barriers to entry are business practices or conditions that make it difficult for new firms to enter the market. Regulation consists of the restrictions state and federal laws place on business with regard to the conduct of its activities. Consumerism is a grassroots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions. Self-regulation is an alternative to government control where an industry attempts to police itself. Chapter 9 Market Segmentation, Targeting, and Positioning Market segmentation involves aggregating prospective buyers into groups that (1) have common needs and (2) will respond similarly to a marketing action. Market segments are the relatively homogeneous groups of prospective buyers that result from the market segmentation process. Product differentiation is a marketing strategy that involves a firm using different marketing mix activities to help consumers perceive the product as being different and better than competing products. A market-product grid is a framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization. Usage rate is the quantity consumed or patronage (store visits) during a specific period. Also called frequency marketing. The 80/20 rule is a concept that suggests 80 percent of a firm’s sales are obtained from 20 percent of its customers. Product positioning is the place an offering occupies in a consumer’s mind on important attributes relative to competitive products. Product repositioning involves changing the place an offering occupies in a consumer’s mind relative to competitive products. A perceptual map is a means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands, as well as the firm’s own product or brand. Chapter 5 Understanding Consumer Behavior Consumer behavior consists of the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions. The purchase decision process consists of the five stages a buyer passes through in making choices about which products and services to buy: (1) problem recognition, (2) information search, (3) alternative evaluation, (4) purchase decision, and (5) postpurchase behavior. Evaluative criteria are the factors that represent both the objective attributes of a brand and the subjective ones a consumer uses to compare different products and brands. A consideration set is the group of brands that a consumer would consider acceptable from among all the brands in the product class of which he or she is aware. Cognitive dissonance is the feeling of postpurchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives. Involvement is the personal, social, and economic significance of the purchase to the consumer. Situational influences are the five aspects of the purchase situation that impacts the consumer’s purchase decision process: (1) the purchase task, (2) social surroundings, (3) physical surroundings, (4) temporal effects, and (5) antecedent states. Motivation is the energizing force that stimulates behavior to satisfy a need. Personality is a person’s consistent behaviors or responses to recurring situations. Self-concept is the way people see themselves and the way they believe others see them. Perception is the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world. Subliminal perception involves seeing or hearing messages without being aware of them. Perceived risk is the anxiety felt because the consumer cannot anticipate th
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