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Questions and Answers
What is the primary focus of a non-compensatory decision rule in consumer behavior?
What is the primary focus of a non-compensatory decision rule in consumer behavior?
Which of the following is NOT a psychological factor that influences consumer decision-making?
Which of the following is NOT a psychological factor that influences consumer decision-making?
What step comes immediately after data collection in the marketing research process?
What step comes immediately after data collection in the marketing research process?
Which component of attitude involves how a consumer feels about a product?
Which component of attitude involves how a consumer feels about a product?
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What is the main purpose of a situation analysis in the marketing planning phase?
What is the main purpose of a situation analysis in the marketing planning phase?
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Which of the following reflects a consumer's lifestyle?
Which of the following reflects a consumer's lifestyle?
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In the purchase decision process, which factor can significantly affect the purchase situation?
In the purchase decision process, which factor can significantly affect the purchase situation?
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What is a characteristic of compensatory decision rules in consumer choice?
What is a characteristic of compensatory decision rules in consumer choice?
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What is the primary focus of value-based marketing?
What is the primary focus of value-based marketing?
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What does perceived value represent in marketing?
What does perceived value represent in marketing?
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Which of the following best describes the 'microenvironment' in marketing?
Which of the following best describes the 'microenvironment' in marketing?
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Which marketing orientation focuses primarily on understanding consumer needs before product design?
Which marketing orientation focuses primarily on understanding consumer needs before product design?
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What is one characteristic of the B2B market?
What is one characteristic of the B2B market?
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What is the first step in the consumer decision process?
What is the first step in the consumer decision process?
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Which of the following factors is not part of the marketing environment?
Which of the following factors is not part of the marketing environment?
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What is the role of the marketing mix in a company's strategy?
What is the role of the marketing mix in a company's strategy?
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What is the main objective of segmenting a market?
What is the main objective of segmenting a market?
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Which of the following is NOT a base for market segmentation?
Which of the following is NOT a base for market segmentation?
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What is the key feature of concentrated marketing?
What is the key feature of concentrated marketing?
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What factor is NOT considered during targeting?
What factor is NOT considered during targeting?
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Operational excellence focuses mainly on what aspect of a business?
Operational excellence focuses mainly on what aspect of a business?
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What is the primary challenge of using micromarketing?
What is the primary challenge of using micromarketing?
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Product excellence is primarily focused on which of the following?
Product excellence is primarily focused on which of the following?
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Which strategy involves creating one marketing offer for the entire market?
Which strategy involves creating one marketing offer for the entire market?
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Study Notes
Marketing Basics
- Marketing involves an exchange between a buyer and a seller.
- The role of marketing is to create economic value by creating perceived value for customers.
- Perceived value is a customer's subjective evaluation of a product's merits based on their needs and expectations. It can be influenced by irrational or emotional criteria and may not align with market value.
- Specific markets are identified when companies cannot cater to all customers within a given market.
- Types of markets: B2C (business to consumer), B2B (business to business), C2C (consumer to consumer).
- Marketing mix consists of the 4 Ps: product, price, promotion, and place. It is designed to achieve the organization's objectives.
Marketing Environment
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Marketing environment is influenced by:
- Consumers: their needs, preferences, and purchasing behavior.
- Microenvironment: company capabilities, corporate partners, and competition.
- Macroenvironment: demographics, social and cultural factors, technology, economic conditions, and political/legal factors.
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Company capabilities ensure alignment between customer needs and core competencies.
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Corporate partners consist of suppliers and clients, requiring strong relationships.
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Competition can be direct or indirect, influencing strategies.
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Demographics analyze population characteristics like age, gender, income, and race.
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Social and cultural factors include green marketing, privacy concerns, time-poor society, health and wellness concerns, and cultural influences.
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Technology impact consumer engagement through devices like cellphones, MP3 players, and the internet.
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Economic factors include inflation and interest rates.
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Political and legal factors shape business regulations and consumer protection.
Marketing Orientations
- Product orientation focuses on developing and distributing innovative products.
- Sales orientation emphasizes closing deals and achieving individual sales targets.
- Market orientation prioritizes understanding consumer wants and needs before designing, manufacturing, or selling products.
- Value-based orientation focuses on delivering exceptional value to customers.
- CRM (Customer Relationship Management) emphasizes building long-term relationships with customers based on mutual benefit and loyalty. It considers the lifetime value of customer relationships and prioritizes customer profitability.
Consumer Behavior
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Consumer decision process involves five key steps:
- Need recognition: Identifying a need or desire.
- Information search: Gathering information from internal or external sources.
- Alternative evaluation: Comparing different product options based on various criteria.
- Purchase decision: Selecting a specific product and making the purchase.
- Post-purchase: Evaluating the purchase decision and experiencing any potential post-purchase dissonance.
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Factors influencing consumer decision process:
- Psychological factors: motives, attitudes, perception, learning, lifestyle.
- Social factors: family, reference groups, and cultural influences.
- Situational factors: purchase situation, shopping situation, and temporal state.
Market Research
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Marketing research process involves five steps:
- Define the research problem and objectives: Clearly identifying the problem and separating symptoms from the underlying cause.
- Design the research plan: Selecting the type of data and research methods to collect information.
- Collect data: Gathering information through various research methods.
- Analyze data and develop insights: Combining market searchers' knowledge with collected data to gain actionable insights.
- Determine the action plan: Developing specific recommendations based on data analysis and leading to concrete decisions.
Marketing Strategy
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Developing a marketing plan involves five key steps:
- Planning phase: Defining the business mission and objectives, conducting a situation analysis (SWOT).
- Implementation phase: Identifying and evaluating opportunities, implementing the marketing mix (4 Ps).
- Control phase: Evaluating performance using marketing metrics, undertaking corrective measures.
Planning Phase
- Business mission and objectives: A concise description of the firm's goals and activities. It should be specific, realistic, and avoid being too broad or narrow.
- Situation analysis (SWOT): Analyzing the company's strengths, weaknesses, opportunities, and threats to identify a sustainable competitive advantage. Opportunities should be distinct from alternatives and possibilities.
Implementation Phase
- Identifying and evaluating opportunities: Assessing consumer needs, identifying target market segments, analyzing competitive differentiation.
- Implementing the marketing mix (4 Ps): Developing and executing strategies for product, price, promotion, and place to fulfill the identified opportunities.
Control Phase
- Evaluating performance: Measuring and evaluating the effectiveness of marketing efforts using relevant metrics.
- Undertaking corrective measures: Adjusting strategies and tactics based on performance evaluation to align with desired outcomes.
Growth Strategies
- Growth strategies aim to expand market share and profitability.
- Ansoff's Matrix: A framework for growth strategies based on existing and new products and markets.
- Market penetration strategy: Focuses on increasing sales of existing products in existing markets.
- Market development strategy: Introduces existing products to new markets.
- Product development strategy: Introduces new products to existing markets.
- Diversification strategy: Introduces new products to new markets.
Macro Strategies
- Customer excellence: Creates exceptional customer experiences through in-store interactions, strengths/weaknesses analysis, etc.
- Operational excellence: Achieves efficient operations and supply chain management for cost-effectiveness.
- Product excellence: Offers high perceived value through effective branding and positioning.
- Locational excellence: Secures a strategic physical location and maintains a strong online presence.
Segmentation, Targeting, and Positioning
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Segmentation: Dividing the total market into homogeneous groups of customers based on specific criteria to address specific needs.
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Segmentation bases:
- Geographic: Region, country, density, climate.
- Demographic: Gender, age, family size, income, education.
- Psychographic: Social class, lifestyle, values, opinions.
- Behavioral: User status, usage rate, loyalty status, occasion/benefits.
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Targeting: Choosing specific target markets based on external and internal analysis.
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External analysis: Evaluating market resources, profitability, and competition.
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Internal analysis: Assessing business portfolio, alignment with company strengths and image, and competitive advantage.
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Targeting strategies:
- Mass/undifferentiated marketing: Targeting the entire market with a single offering, focusing on common needs, and leveraging economies of scale.
- Differentiated marketing: Targeting multiple segments with distinct offers based on price, product, and communication.
- Concentrated/niche marketing: Focusing on a single, primary target market, specializing products to cater to specific needs.
- Micromarketing: Tailoring products and marketing to individual customers or specific locations, offering a personalized experience.
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Description
Dive into the fundamentals of marketing, exploring key concepts such as perceived value, types of markets, and the marketing mix. Understand the impact of the marketing environment, including consumer behavior and competitive forces. This quiz is essential for anyone looking to grasp the essentials of marketing strategy.
