Lecture 1-3

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Questions and Answers

What is the primary objective of any marketing activity?

To create, communicate, and deliver offerings that have value

To generate a sufficient level of profit for a company (correct)

To satisfy customer needs and wants

To stimulate and monitor demand

What is the definition of demand in marketing?

The process of creating, communicating, and delivering offerings that have value

The ability of customers to purchase products or services

The willingness and ability of customers to purchase different quantities of products or services at different prices during a specific time period (correct)

The process of identifying and meeting customer and societal needs

What is marketed according to the definition?

Everything, including products, services, events, people, places, experiences, and ideas (correct)

Only products and services

Only products, services, and events

Only people, places, and experiences

What is a common misconception about marketing?

Marketing is only about selling and advertising Signup and view all the answers

What is the scope of marketing?

Identifying and meeting customer and societal needs in a profitable way Signup and view all the answers

What is the definition of marketing according to the first definition provided?

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 Signup and view all the answers

What is the primary focus of the production period from 1870-1930?

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

What is the main goal of the marketing period from 1950-1980?

Superior customer value Signup and view all the answers

What is the primary characteristic of transactional marketing?

Focus on a single service or sales encounter Signup and view all the answers

What is the ultimate goal of relationship marketing?

To balance the returns of all parties involved Signup and view all the answers

What is the primary focus of internal marketing?

Ensuring employees understand the company's vision and marketing plan Signup and view all the answers

What is the primary characteristic of performance marketing?

Understanding financial and non-financial marketing metrics Signup and view all the answers

What is the 7P's marketing mix?

Product, Price, Place, Promotion, People, Process, Physical Evidence Signup and view all the answers

What is the primary goal of marketing in practice?

To select a target market and align it with a brand's positioning Signup and view all the answers

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

Fewer goods or services available relative to the number of buyers Signup and view all the answers

What is the primary requirement for creating value in marketing?

Understanding the customer's perceived values Signup and view all the answers

What is the primary purpose of a vision in an organization?

To provide a sense of purpose and direction Signup and view all the answers

What is the characteristic of an SBU that distinguishes it from the rest of the company?

It can be planned separately from the rest of the company Signup and view all the answers

What is the primary goal of the 'Hold' strategy in the BCG matrix?

To maintain and defend market position Signup and view all the answers

What is the primary focus of intensive growth opportunities?

Improving existing businesses Signup and view all the answers

What is the purpose of a SWOT analysis?

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

What is the primary goal of divesting in marketing?

To streamline operations and reduce costs Signup and view all the answers

What is the primary difference between integrative and diversification growth?

Integrative growth focuses on combining functions, while diversification growth focuses on new markets Signup and view all the answers

What is the primary purpose of defining a business mission?

To provide a sense of direction and purpose Signup and view all the answers

What is the primary focus of the 'Build' strategy in the BCG matrix?

To increase market share Signup and view all the answers

What is the primary characteristic of a strategic business unit (SBU)?

It has a single business or a collection of related businesses Signup and view all the answers

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

Demand exceeds supply, giving sellers more negotiating power Signup and view all the answers

What is the primary goal of a company in a buyer's market?

To focus on what customers value and deliver it strategically Signup and view all the answers

What is customer-perceived value (CPV)?

The difference between the customer's perceived benefits and costs Signup and view all the answers

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

The focus on the value of the product itself versus the value created beyond the product Signup and view all the answers

What is the primary purpose of the value chain?

To evaluate the costs and performance in each value-creating activity Signup and view all the answers

What is the primary purpose of corporate strategic planning?

To set the overarching direction for the entire organization Signup and view all the answers

What is the primary characteristic of a mission statement?

It is brief, flexible, and distinctive Signup and view all the answers

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

A mission statement focuses on the present, while a vision statement focuses on the future Signup and view all the answers

What is the primary purpose of the four stages of the value delivery process?

To create, communicate, deliver, and monitor the value offering Signup and view all the answers

What is the primary purpose of divisional strategic planning?

To ensure that each business unit contributes to achieving the broader corporate objectives Signup and view all the answers

What is the primary purpose of a SWOT analysis?

To evaluate the company's strengths, weaknesses, opportunities, and threats Signup and view all the answers

What is an opportunity in a SWOT analysis?

An area of buyer needs that a company has a high chance of satisfying in a profitable way Signup and view all the answers

What is a threat in a SWOT analysis?

A challenge posed by an unfavorable trend or development that could lead to lower sales or profit Signup and view all the answers

What is the focus of customer behavior study?

How individuals or groups buy, use, and dispose of goods, services, ideas, or experiences Signup and view all the answers

What is culture in the context of consumer behavior?

Meanings shared by most people in a social group, including common values, interests, and norms Signup and view all the answers

What is the role of an opinion leader or influencer in consumer behavior?

To offer informal advice or information about products Signup and view all the answers

What is the primary reference group that influences an individual's attitudes and behavior?

Family Signup and view all the answers

What is the purpose of a company choosing a competitive strategy?

To gain a competitive edge in the market Signup and view all the answers

What is the focus of a company's strengths and weaknesses analysis?

Internal factors that make the company better or worse than its competitors Signup and view all the answers

What is the purpose of cost leadership as a competitive strategy?

To be the lowest-cost producer to offer cheaper products Signup and view all the answers

What is the purpose of differentiation as a competitive strategy?

To offer unique or high-quality products to justify higher prices Signup and view all the answers

What is the concept where products and worker personal possessions can be seen as part of an individual's self?

Extended self Signup and view all the answers

What is the primary influence on consumers' decisions based on their age and stage in life cycle?

Number, age, and gender of people in a household Signup and view all the answers

What is the term for a set of distinguishing psychological traits leading to consistent and stable responses to environmental stimuli?

Personality Signup and view all the answers

What is the key psychological process that involves selecting, organizing, and interpreting information to create meaning?

Perception Signup and view all the answers

What is the tendency to interpret information in a way that fits our preconceptions?

Selective distortion Signup and view all the answers

What is the type of learning that involves induced changes in behavior arising from experiences?

Learning Signup and view all the answers

What is the term for the process of salivating when hearing a bell sound before seeing food?

Classical conditioning Signup and view all the answers

What is the primary difference between money-constrained and time-constrained consumers?

Product and service preferences Signup and view all the answers

What is the term for the tendency to remember good things about something liked and forgetting points about more neutral objects?

Selective retention Signup and view all the answers

What is the term for stimuli beyond our conscious awareness that may still influence our behavior?

Subliminal perception Signup and view all the answers

What is the primary characteristic of classical conditioning?

Behavior is determined by what precedes it and is involuntary/reflexive Signup and view all the answers

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

Short-term memory has limited capacity and long-term memory has unlimited capacity Signup and view all the answers

According to the associative network model, how do nodes get activated?

Both through external environmental cues and internal cognition Signup and view all the answers

What is the primary factor that determines the strength of associations in memory?

The amount of attention given to the information Signup and view all the answers

What is the primary purpose of the retrieval process in memory?

To retrieve information from memory Signup and view all the answers

What is the primary source of information in the problem recognition stage of the buying decision process?

Internal stimuli such as basic human drives and needs Signup and view all the answers

What is the primary motivator to comply with others' preferences in a purchase decision?

Social norms Signup and view all the answers

What is the outcome when expectations exceed perceived performance in post-purchase evaluation?

Dissatisfaction Signup and view all the answers

What is the primary characteristic of the expectancy-value model?

It assumes that consumers engage in a compensatory process Signup and view all the answers

What is the primary characteristic of the conjunctive heuristic?

It involves a minimum acceptance level for each attribute and choice of the first option that meets the minimum standards Signup and view all the answers

Which perspective views consumers as problem-solving individuals making informed choices?

Information-processing perspective Signup and view all the answers

What is the primary purpose of in-store marketing?

To aid in the retrieval of information from memory Signup and view all the answers

What is the central focus of the emotional perspective in consumer behavior?

Appraisals and affective states Signup and view all the answers

What is the primary result of the spreading activation process in the associative network model?

The retrieval of information from memory Signup and view all the answers

What is the primary goal of a multi-perspective approach in understanding consumer behavior?

To combine multiple perspectives for a nuanced understanding Signup and view all the answers

What determines the likelihood of central-route processing in the elaboration likelihood model?

Motivation, ability, and opportunity (MAO) Signup and view all the answers

What is the primary focus of the theory of planned behavior?

Attitude, subjective norms, and perceived behavioral control Signup and view all the answers

What is the outcome when expectations equal perceived performance in post-purchase evaluation?

Satisfaction Signup and view all the answers

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

Consumption rate Signup and view all the answers

What is the primary role of products in the cultural perspective?

Symbols representing beliefs, norms, and values Signup and view all the answers

Study Notes

• In a seller's market, demand outweighs supply, leading to higher prices and businesses trying to increase the volume of goods and services supplied while cutting costs for efficiency.

• In a buyer's market, there is a surplus of goods or services, giving buyers more negotiating power and leading to lower prices, with sellers needing to adjust pricing strategies or offer incentives to attract buyers.

• Customer-perceived value (CPV) is the difference between the benefits and costs of an offering, as perceived by the customer, and is a key factor in building customer value.

• CPV can be created through the product itself or through the use of the product, and companies use their competencies to produce products that customers demand due to their value.

• The value delivery process involves four stages: marketing research to generate value offerings, developing and communicating the offering, delivering the offering in a "packaged" format, and continuously monitoring its performance.

• The value chain is a tool for identifying customer-perceived value, and involves evaluating the costs and performance of each value-creating activity compared to competitors.

• Corporate strategic planning sets the overall direction for the organization, while divisional strategic planning ensures that each business unit contributes to achieving those broader objectives.

• A company's mission statement should focus on a limited number of goals, stress major policies, values, and culture, define the company's major areas, be long-term oriented, brief, flexible, and distinctive, and live up to its promises.

• The difference between mission and vision is that mission is about what the company is currently about and how it behaves, while vision is about what the company wants to become.

• Classical conditioning is a type of learning where behavior is determined by precedes it, is involuntary and passive, whereas operant conditioning is a type of learning where behavior is determined by the anticipation of what follows it, is voluntary and active.

• Memory involves short-term and long-term memory, with the associative network model viewing long-term memory as a set of nodes and links, and retrieval involving the spreading activation process.

• The five-stage model of the buying decision process involves problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.

• The expectancy-value model assumes that consumers engage in a process of attribute evaluation, leading to a set of beliefs about where different brands stand on each attribute.

• 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.

• The scope of marketing involves identifying and meeting customer and societal needs in a profitable way, and can be 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.

• Marketing is more than selling and advertising, and involves stimulating and monitoring demand, which is linked to needs and wants.

• The holistic marketing approach is a continuation of the marketing period with a stronger emphasis on the development, design, and implementation of a more integrated perspective, with the customer at the center of the organization.

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Description

Test your understanding of marketing fundamentals with this quiz on Chapter 1. Learn about the definition of marketing, its activities, and processes. Assess your knowledge of creating value for customers and society.