Marketing 300-Exam 2

In a SWOT analysis, which of the following would be considered a strength?

internal resources (Strengths are internal capabilities that we have at our disposal.)

What is a Marketing Environment

a set of forces, some controllable and some uncontrollable, that influence the ability of a business to create value and attract and serve customers.

SWOT Analysis

strengths weakness
opportunities threats

Environmental scanning

The process of collecting information about forces in the marketing environment
-Secondary sources
-Market research

Environmental analysis

The process of assessing and interpreting information gathered through environmental scanning

Responding to Environmental Forces -Reactive Approach

-Passive view of the environment as uncontrollable
-Current strategy is cautiously adjusted to accommodate environmental changes

Responding to Environmental Forces-
Proactive approach

-Actively attempts to shape and influence the environment
-Strategies are constructed to overcome market challenges and take advantage of opportunities

porter's 5 forces

Bargaining power of customers, Bargaining power of suppliers, Threat of new entrants, Threat of substitute products, Competitive rivalry within an industry

types of competitors

brand competitors, industry competitors, form competitors, generic competitors

brand competitors

market products with similar features and benefits to the same customers at similar prices

industry competitors

compete in the same product class, but their products have different features, benefits, and prices

form competitors

provide very different products that solve the same problem or satisfy the same basic customer need

generic competitors

compete for the limited financial resources of the same customers

monitoring competition

Helps determine competitors' strategies and their effects on firm's own strategies

economic cycle (top to bottom)

prosperity, recession, depression, recovery

expectations and willingness to spend

future employment, prices, general economic conditions, family size, income levels

political forces

reactive response- making adjustments to business practices as laws are passed
proactive response- campaign contributions, political action committees, lobbying elected officials

Federal Trade Commission (FTC)

Enforces laws and guidelines regarding business practices; takes action to stop false and deceptive advertising, pricing, packaging, and labeling

Food and Drug Administration (FDA)

Enforces laws and regulations to prevent distribution of adulterated or misbranded foods, drugs, medical devices, cosmetics, veterinary products, and potentially hazardous consumer products

Consumer Product Safety Commission (FCC)

Ensures compliance with the Consumer Product Safety Act; protects the public from unreasonable risk of injury from any consumer product not covered by other regulatory agencies

Federal Communications Commission (FCC)

Regulates communication by wire, radio, and television in interstate and foreign commerce

Environmental Protection Agency (EPA)

Develops and enforces environmental protection standards and conducts research into the adverse effects of pollution

Federal Power Commission (FPC)

Regulates rates and sales of natural gas producers, thereby affecting the supply and price of gas available to consumers; also regulates wholesale rates for electricity and gas, pipeline construction, and U.S. imports and exports of natural gas and electr

marketing environment

economic forces, competitive forces, political forces, legal forces, technological forces, sociocultural forces


The application of knowledge and tools to solve problems and perform tasks more efficiently

Impact of Technology

-Dynamic means constant change
-Reach refers to how technology quickly moves through society.

sociocultural forces

aging population, more people living alone, entering another baby boom, increase in multiculturalism, health concerns and values, environmental values, family makeup and values, marital/parental status, income and education, age, gender, race, ethnicity

STP process-

divide market based on needs/benefits, demographics, lifestyles, behavioral measures
select most appropriate market
target marketing messages through 4P's

what is a market

a group of people seeking products in a specific product category

segmentation, targeting and positioning process

1. establish strategic objectives
2. determine which segmentation variables to use
3. evaluate relevant market segments
4. select specific target markets
5. develop positioning strategy


identifying a group of customers in your market who share a similar set of needs and wants

importance of segmenting markets

Markets have a variety of product needs and preferences
A market segment has specific needs and wants as well as the ability and willingness to buy
Marketers can better define customer needs (Competitive advantage)

why segment markets?

-Develop offerings that are higher value to each segment than an undifferentiated offer
-Charge more for providing higher value products and services
-Achieve higher sales volume overall by better meeting the needs of each segment

segmentation variables

demographics, behavioral, psychographics, needs

demographic segmentation

Age Occupation
Gender Income
Ethnicity Geography Family life cycle

psychographic segmentation

Values Lifestyle
Personality Activities
Interests Opinions

the three VALS (values and lifestyles)

-ideals orientation (thinkers/believers)
-achievement orientation (achiever/striver)
-self-expression orientation (experiencers/makers

behavioral segmentation

-Dividing a market by the amount of product bought or consumed
-Usage rate
-80 / 20 Principle
-20 percent of all customers generate 80 percent of the demand

needs segmentation

The process of grouping customers into market segments according to the benefits they seek from the product


The process of evaluating the various segments and then selecting the most viable segment(s) who share a similar set of needs and wants

undifferentiated targeting strategy

Marketing approach that views the market as one big market with no individual segments and thus requires a single marketing mix

differentiated targeting strategy

A strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each

niche targeting strategy

A concentrated strategy of focusing on a narrow market is sometimes more profitable than spreading resources over several different segments

micromarketing targeting strategy

One-to-one marketing which is individualized, information intensive, with a long-term perspective and goal of increasing customer loyalty


Act of designing the company's offering and image to occupy a distinctive place in the mind of the target market.

perceptual mapping

A means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers' minds

value proposition

Answers the question of "Why should I buy your brand?"
More quality for more/same/less price?
The same quality for a lower price?
Less quality for a much lower price?

positioning statement

For [Target Market], the [Brand] is the [Point of Differentiation] among all [Frame of Reference] because [Reason to Believe]

point of differentiation (POD)

how your brand or product benefits customers in ways that set you apart from your competitors

frame of reference

the segment or category in which your company competes

Business Products

Are used to manufacture other products
Become part of another product
Aid the normal operations of an organization
Are acquired for resale without change in form

Business Markets

-producer markets(trades producer goods. ex. raw materials or equipment)
-reseller markets (buys something intending to resell. ex. wholesalers, retailers, and distributors)
government markets (federal, state, or local governments as the target consumers)

types of business products

major equipment, accessory equipment, raw materials, component parts, processed materials, supplies, business services

demand for business products

-derived demand
(a demand for a commodity, service, etc. which is a consequence of the demand for something else. ex. more people want phones therefore demand for materials to make that phone goes up)
-inelastic demand
(buyer's demand does not change as m

characteristics of a business market

-organizational demand
-larger volume
-fewer number of customers
-concentrated location
-promote personal selling
-multiple buying influences
-more complex negotiations

characteristics of a consumer market

-individual demand
-smaller volume
-many customers
-dispersed location
-advertising promotion
-single buying influence
-simpler negotiations


Groups of individuals whose characteristic values and behavior are similar, but also differ, from those of the surrounding culture.


learning your own culture


learning a new/foreign culture

reverse acculturation

home society impacted by other cultures


the accumulated value, knowledge, beliefs, customs, objects, and concepts of a society

social responsibility

an organizations obligation to maximize its negative impact on society

Corporate Social Responsibility

-philanthropic(be a good citizen)
-Ethical (do what is right)
-Legal (obey the law)
-Economic (be profitable)

cause-related marketing

the practice of linking products to a particular cause on an ongoing or short-term basis

green marketing

the specific development, pricing, promotion, and distribution of products that do not harm the natural environment

Ethical development levels

-Pre-conventional Morality
(�Based on what will be punished or rewarded
�Self-centered, calculating, selfish)
-Conventional Morality
(� Moves toward the expectations of society
�Concerned over legality and the opinion of others)
-Post-conventional Moralit

multinational corporation

a company that is heavily engaged in international trade, beyond exporting and importing

Global marketing perks

-access to new markets
-fain scale economies
-access lower costs
-offset domestic cycles
-enhance brand image
-overcome trade barriers
-access foreign investment

Global Marketing Standardization

Production of uniform products that can be sold the same way all over the world.

Entering the Global Marketplace: Licensing

legally allow the use of our manufacturing, patents, logos, knowledge, etc on other peoples products if they pay a licensing fee. (franchising is a great example of this. You are paying for the right to sell their products and you are full responsible.)

Entering the Global Marketplace: Contract Manufacturing

private label manufacturing by someone in a foreign country ( nike might enter into a manufacturing agreement with china in which they would mass produce shirts with nikes logo on them and sell them to nike)

global marketing standardization: one product one message

same message and product look across the globe (lays potato chips original flavor)

global marketing standardization:
product adaptation

same cheap prices but a shift of product here and there to accommodate for the location (McDonalds changes up their foods depending on the country because all countries eat different types of food due to culture)

global marketing standardization:
message adaptation

ex. in japan kit kats translates to "surely win" so in japan kit kats are a sign of good luck. people will give kit kats out during test season and anything else someone may need good luck for.

global marketing standardization:
product invention

outback steakhouse doesn't actually serve authentic Australian food

Business Plan

a written document that defines the operational and financial objectives of a business over a particular time, and defines how the business plans to accomplish those objectives.

Marketing Plan

a document that includes an assessment of the marketing situation, marketing objectives, marketing strategy, and marketing initiatives.

Sections of a Marketing Plan:
executive summary

Written with senior leadership as primary audience,
- Goals
- Recommendations

Sections of a Marketing Plan:
Company description, purpose, and goals

Includes historical information on business and products, and the company's core competencies and reason for existence

Sections of a Marketing Plan:
Marketing situation

Contains assessments of: - Customers
- Competitors
- Product portfolio
- Distribution channels
- Marketing environment

Sections of a Marketing Plan:

Anticipated outcome if marketing objectives are met

Sections of a Marketing Plan:
Marketing strategy

What actions should be taken to meet objectives.
- Target market
- Positioning
- Marketing mix

Sections of a Marketing Plan:
Measurement and control

How to monitor progress toward meeting objectives?
- Financial factors
- Nonfinancial factors

A good marketing plan will:

- Explain both the present and future situations of the organization
- Specify the outcomes that are expected
- Describe the specific actions that are to take place
- Identify the resources that will be needed
- Be realistic, achievable and measurable

consumer behavior

-the dynamic interaction of affect and cognition, behavior, and the environment in which human beings conduct the exchange aspects (product and service purchases) of their lives
-Describes how consumers make purchase decisions and how they use and dispose

consumer decision process

-need recognition
(buyer becomes aware of difference between a preferred state (ideal state) and the present condition (actual state))
-information search
-evaluation of alternatives
-post-purchase evaluation

cost-benefit analysis

going to work solely because you want to get paid and or you don't want to get fired.

multi-attribute model

-list outcome, rat each outcome on importance

non-compensatory models

nothing can replace it- (if i want to be somewhere with a beach for spring break then all other places with no beach are no longer an option for me)

conjunctive rule

set of minimum standards for one or more attributes ( price willing to pay, miles willing to travel, need to be somewhere sunny,- if violated then it is taken off the table)

lexicographic rule

rank attributes in order of importance ( who is the best of the attributes?.. v

situational influences: social

role-your decisions may be based off the role you are playing and the expectations of that role


positive affect


negative affect

opinions leaders

expert in something that I am not in which I can look up to them and learn from them.

marketing research

The systemic design, collection, analysis, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities

purpose of marketing research

-Descriptive (gather and presenting factual statements
-diagnostic (explaining data)
-predictive (attempting to estimate the results of a planned marketing decision)

selective exposure

process of selecting inputs to be exposed to our awareness while ignoring others

selective distortion

an individuals changing or twisting of information when it is inconsistent with personal feelings or beliefs

selective retention

remembering information inputs that support personal feelings an beliefs and forgetting inputs that do not