lecture 1-3

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Questions and Answers

What is the primary goal of any marketing activity?

To develop a competitive advantage in the market

To generate a sufficient level of profit for a company to be successful in the long run (correct)

To enhance customer satisfaction and loyalty

To create a brand identity

What is the exchange process in marketing?

An exchange of money for products or services

An exchange of value between a company and a customer (correct)

An exchange of information between a company and a customer

An exchange of ideas between a company and a customer

What is the primary focus of marketing during the production period (1870-1930)?

Product development and innovation

Customer needs and wants

Market competition and analysis

Company profit and growth (correct)

What is demand in marketing?

The willingness and ability of customers to purchase different quantities of products or services at different prices during a specific time period Signup and view all the answers

What is the relationship between needs and wants in marketing?

Needs are related to human requirements, and wants represent a specific object that may satisfy these needs Signup and view all the answers

What is the primary goal of the production focus era?

High production effectiveness and low cost Signup and view all the answers

What is the main difference between transactional marketing and relationship marketing?

Transactional marketing focuses on a single service or sales encounter, while relationship marketing focuses on long-lasting relationships Signup and view all the answers

What is the primary goal of internal marketing?

To ensure that employees understand and support the company's marketing strategy Signup and view all the answers

What is the main characteristic of the marketing mix strategy?

It aims to create value for customers through a total company effort Signup and view all the answers

What is the primary reason why a customer may not perceive value in an offer?

Because the offer does not meet the customer's perceived values Signup and view all the answers

What is the primary characteristic of a seller's market?

Demand outweighs supply Signup and view all the answers

What is the main focus of a company in a buyer's market?

Delivering customer value through strategic resource allocation Signup and view all the answers

What is the key difference between goods-dominant logic and service-dominant logic?

The value created by the product itself versus the value created by the company's competencies Signup and view all the answers

What is the primary purpose of the value chain?

To identify ways to create more customer-perceived value Signup and view all the answers

What is the primary difference between a company's mission and vision statements?

The mission statement focuses on the company's current state, while the vision statement focuses on the company's desired future state Signup and view all the answers

What is the purpose of defining a business in customer-centric terms?

To understand the needs of the target market Signup and view all the answers

What is the main difference between a vision and a mission?

A vision is inspirational, while a mission is practical Signup and view all the answers

What is the main purpose of a SWOT analysis?

To assess internal and external factors for strategic planning Signup and view all the answers

What is the main characteristic of an SBU?

It is a separate business or collection of related businesses Signup and view all the answers

What is the main purpose of the BCG matrix?

To guide strategic decisions on which businesses to build, hold, harvest, or divest Signup and view all the answers

What is the primary role of a SWOT analysis in a marketing strategy?

To set specific goals and formulate a plan to achieve them Signup and view all the answers

What is the term for the process of studying how individuals or groups buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants?

Consumer behavior analysis Signup and view all the answers

Which of the following social groups has a direct or indirect influence on an individual's attitudes and behavior, and is often a person's most frequent and informal interaction?

Primary group Signup and view all the answers

What is the term for the degree to which one is respected in a social hierarchy, which can influence a person's purchasing decisions?

Status Signup and view all the answers

What is the term for external factors that could negatively impact an organization's performance or viability, requiring defensive marketing actions to mitigate?

Threats Signup and view all the answers

What is the primary characteristic that defines personality in the context of human psychology?

A set of distinguishing psychological traits leading to consistent and stable responses to environmental stimuli. Signup and view all the answers

What is the primary difference between motivation and perception in the context of psychological processes?

Motivation is a goal-oriented psychological process, while perception is an information-processing psychological process. Signup and view all the answers

Which of the following is an example of selective distortion in the context of perception?

Consumers interpret negative information about a brand in a positive way. Signup and view all the answers

What is the primary difference between classical conditioning and operant conditioning in the context of learning?

Classical conditioning is based on association, while operant conditioning is based on reinforcement. Signup and view all the answers

What is the primary purpose of repetition in marketing communication, according to the concept of selective retention?

To create a self-fulfilling prophecy about a brand. Signup and view all the answers

What is the primary driver of sales frequency, according to the post-purchase use and disposal stage?

Consumption rate Signup and view all the answers

Which perspective on consumer behavior emphasizes the importance of mental processes in the decision-making process?

Information-processing perspective Signup and view all the answers

What is the primary factor that determines the likelihood of central-route processing, according to the elaboration likelihood model?

Motivation, ability, and opportunity Signup and view all the answers

What is the primary component of the theory of planned behavior that refers to an enduring evaluation with positive or negative charge?

Attitude Signup and view all the answers

What is the primary benefit of a multi-perspective approach to understanding consumer behavior?

It enables a more nuanced understanding of consumer behavior Signup and view all the answers

What is the primary difference between classical conditioning and operant conditioning?

Classical conditioning is determined by what precedes it, while operant conditioning is determined by what follows it Signup and view all the answers

What is the primary function of encoding in the process of memory formation?

To process and store information in memory Signup and view all the answers

What is the primary goal of the expectancy-value model in consumer decision making?

To evaluate alternatives based on attribute importance Signup and view all the answers

What is the primary characteristic of the conjunctive heuristic in consumer decision making?

It involves choosing the first option that meets the minimum standards for all attributes Signup and view all the answers

What is the primary difference between short-term and long-term memory?

Short-term memory is temporary and limited, while long-term memory is permanent and unlimited Signup and view all the answers

Study Notes

Defining Marketing

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
Alternative definition: Marketing is the strategic process of identifying, anticipating, and satisfying customer needs and wants profitably, through the creation, communication, and delivery of value.

Scope of Marketing

Identifying and meeting customer and societal needs in a profitable way.
Viewed as an exchange process between a company and a customer.
The ultimate goal of marketing is to generate a sufficient level of profit for a company to be successful in the long run.

What is Marketed?

Everything, including products, services, events, people, places, experiences, and ideas.

Evolution of Marketing

Production period (1870-1930): Company-centric, focus on production efficiency and low cost.
Sales period (1930-1950): Focus on hard selling, supported by research.
Marketing period (1950-1980): Customer-centric, focus on superior customer value.
Holistic marketing approach (post-1980): Emphasis on integrated, relationship, internal, and performance marketing.

Holistic Marketing Approach

Four key components:
- Relationship marketing: Building deep, long-lasting relationships with customers.
- Integrated marketing: Creating, communicating, and delivering value in an integrated way.
- Internal marketing: Focusing on the company's internal employees and aligning them with the marketing plan.
- Performance marketing: Marketing based on financial and non-financial metrics and social, environmental, and legal effects.

Marketing Mix

Product, Price, Place, Promotion (4Ps) and additional 3Ps (People, Process, Physical Evidence) to create a comprehensive marketing strategy.

Marketing Strategies and Plans

Corporate and divisional strategic planning:
- Defining the corporate mission and divisional objectives.
- Assigning resources to each strategic business unit (SBU).
- Assessing growth opportunities.
Boston Consulting Group (BCG) matrix: Analyzing market growth rate and relative market share to guide strategic decisions.

Value Chain

A tool for identifying customer-perceived value by evaluating the costs and performance of each value-creating activity.

Strategic Planning, Implementing, and Control

Corporate mission and vision statements:
- Mission: Describes the company's current purpose, goals, and values.
- Vision: Describes the company's future goals and aspirations.
Strategic business units (SBUs): Independently planned business units with their own set of competitors and managers.

SWOT Analysis

Identifying and evaluating a company's internal Strengths and Weaknesses, as well as external Opportunities and Threats.

Analyzing Consumer Markets

Customer behavior: The study of how individuals or groups buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants.
Influences on consumer behavior:
- Cultural influences: Social classes, subcultures, and cultural norms.
- Social groups: Reference groups, family, and social roles.
- Individual consumers: Personal characteristics, age, occupation, and economic circumstances.

Consumer Behavior

Influences on consumer behavior:
- Culture: Shared meanings, values, and norms that guide behavior.
- Social groups: Reference groups, family, and social roles.
- Individual consumers: Personal characteristics, age, occupation, and economic circumstances.
Product choice: Influenced by social roles, status, and personal characteristics.
Family: The most influential primary reference group.
Life cycle: Age, stage in life, and critical life events influence consumer behavior.### Personality and Lifestyle
Personality: a set of distinguishing psychological traits leading to consistent and stable responses to environmental stimuli
Human big five personality traits: Extraversion, Agreeableness, Conscientiousness, Neuroticism, and Openness
Brand personality traits: Excitement, Sincerity, Competence, Sophistication, and Ruggedness
Lifestyle: a person's way of living, expressed through activities, interests, and opinions
Lifestyle is partially shaped by whether consumers are money-constrained or time-constrained

Key Psychological Processes

Four key psychological processes: Motivation, Perception, Learning, and Memory
Motivation: when a need has been aroused to a sufficient level of intensity, shaping actions aimed at achieving a certain goal related to the need/drive
Motivation has directionality, intensity, and persistency
Maslow's Theory: human needs are arranged in a hierarchy from most to least pressing, with people trying to satisfy their most basic needs before they can aim for higher-ordered ones

Perception

The process of selecting, organizing, and interpreting information to create meaning
Contingent on the surrounding environment and our own interests, knowledge, and expertise
Selective attention: screening out stimuli to enable paying closer attention to specific environmental cues
Selective distortion: the tendency to interpret information in a way that fits our preconceptions
Selective retention: the tendency to remember good (bad) things about something liked (disliked) and forgetting points about more neutral objects

Learning

Induced changes in behavior arising from experiences
Produced through an interplay of drives, cues, reinforcement, and responses
Two common learning conceptualizations: Classical Conditioning and Operant Conditioning
Classical conditioning: based on frequent pairing of a conditioned stimulus with an unconditioned stimulus, creating a conditioned response

Post-Purchase Behavior

Consumers compare their expectations with the performance levels of their purchase
Post-purchase satisfaction: expectations > perceived performance (dissatisfaction), expectations = perceived performance (satisfaction), expectations < perceived performance (delight)
Post-purchase actions: customer satisfaction linked to consumer loyalty and positive word-of-mouth, customer dissatisfaction linked to consumer switching and negative word-of-mouth

Perspectives on Consumer Behavior

The behaviorist perspective: focuses on the impact of external influences on consumer behavior
The information-processing perspective: emphasizes the importance of how consumers mentally process, store, and use information in the decision-making process
The emotional perspective: argues that consumers' emotions and affective states are central for understanding decision-making
The cultural perspective: marketing seen as a value transmitter which is both shaping and shaped by culture

Theories and Models

The Elaboration Likelihood Model: if motivation, ability, and opportunity are all high, the elaboration likelihood is high, and consumers are expected to engage in central-route processing
The Theory of Planned Behavior: attitude, subjective norms, and perceived behavioral control influence consumer behavior
The five-stage model, buying decision process: problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation

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Description

Test your understanding of marketing concepts and definitions. Learn how to identify, anticipate, and satisfy customer needs and wants profitably. Explore the activity, set of institutions, and processes involved in creating, communicating, and delivering value.