Marketing Exam 1 Study Guide

• Marketing Exam 1 Study Guide, Spring 2025

Week 1

• Marketing involves strategic activities related to creating, communicating, delivering, and exchanging offerings that have value.
• Creating value includes identifying, satisfying, and retaining customers.
• Success is achieved when customers' needs are met, and they feel better off from the exchange and have a reason to return.
• Key marketing results include new consumer capabilities, company capabilities, and competitive capabilities.
• Holistic marketing builds mutually satisfying long-term relationships with key constituents to earn and retain business
• Performance measurement goes beyond sales revenue
• Examines the marketing scorecard and involves market share, customer loss rate, customer satisfaction, and product quality.
• Internal marketing involves hiring, training, and motivating employees who want to serve customers well.
• Integrated marketing coordinates all activities and programs towards consistent value and messaging for consumers.
• Production concept: consumers prefer widely available and inexpensive products achieved through efficiency and mass distribution.
• Product concept: consumers favor products with the highest quality, best performance, or most innovative features, assuming they will sell themselves.
• Selling concept: consumers and businesses won't buy enough without substantial selling effort.
• Marketing concept: focuses on customer-centered, sense-and-respond approach
• Develop the right products for the right customers.
• Market-Value concept: every functional area should focus on creating customer value, with a focus that extends beyond just the marketing department.

Week 2

• A mission statement is a clear and enduring declaration of an organization's reason for existing
• A well-crafted statement focuses on specific goals
• Highlights the company's values, defines target markets, takes a long-term view, and is concise and memorable.
• Major Market Forces include Technology, Globalization, Physical Environment, and Social Responsibility.
• Staying customer-focused involves understanding customer needs, knowing competitor capabilities, ensuring strong communications, and building customer value.

Assessing Customer Needs

• Functional needs involve solutions that allow customers to perform desired activities
• Social needs relate to how a product or service is perceived
• Emotional needs concentrate with a desired feeling when using a product or service.
• Explicit needs are easily identifiable as customers are aware of their challenges,
• Latent needs are harder to recognize because customers may not even be aware they exist.
• Target Market is defined by identifying the business need, segmenting the total market, profiling customer segments, and validating market opportunities.

Week 3

• Marketing strategy involves deciding where to compete
• Defining one's unique value
• Using company capabilities
• Sustaining unique position.
• SWOT Analysis considers external opportunities and threats, as well as internal strengths and weaknesses.
• The 4 P's of marketing are Product, Price, Place/Distribution, and Promotion.

BCG Matrix

• Star: High Market Share/High Market Growth
• Question Mark: Low Market Share/High Market Growth
• Cash Cow: High Market Share/Low Market Growth
• Dog: Low Market Share/Low Market Growth

Week 4

• The Economic Man Theory states consumers are rational and self-interested
• Seek to maximize benefits from exchanges.
• The Stimulus Response Model, or black box model, views the consumer as a thinker and problem solver
• Consumer Behavior: refers to buying products for personal, family, or group use.

Decision Making

• Simple involves need recognition, purchase, and post-purchase behavior.
• Complex involves need recognition, information search, alternative evaluation, purchase, and behavior after purchase.
• A buying task (situational factors) refers to the consumer's approach to problem-solving.
• Influential factors on decision-making are situational, personal, psychological, and social.
• Ethics is defined as moral principles that guide behavior.
• Common ethical marketing issues from 1977 include bribes, price discrimination, and dishonest advertising.
• Current ethical marketing issues include privacy, security/storage, anti-spam measures, hate speech vs free speech, and online harassment.
• Corporate Social Responsibility is ethical behavior towards society
• Acting responsibly toward stakeholders.
• Shareholders own a portion of the business.
• Stakeholders have an interest in the business, such as employees, suppliers, and the community.

Product Liability

• Design Defects
• Manufacturing Defects
• Defects in Marketing

Week 5

• An identifier is a name, sign, symbol, design, or term.
• A promise is what a company will provide to those who interact with it.
• An asset is the marketplace reputation that drives price premiums and preference.
• Perception is the sum of beliefs, thoughts, and knowledge about an organization.
• "Mind-share" is the unique position a company holds in the customer's mind.

Brand Features

• Can be tangible, like visual design, or intangible.
• Types of brands include personal, event, geographic place, and private-label brands.
• Types of Brand Loyalty can be hard-core, split, shifting, or switchers.
• Naming a brand involves eight steps, including screening out problematic names.
• Co-branding: two brands collaborate on a single product or service
• Brand Licensing
• Line Extension
• Brand Extension