MARKETING 351 EXAM 1 CSUF LANCELLOTT|I 79 QUESTIONS AND ANSWERS|GUARANTEED SUCCESS

star Fast growing market leader cash cow Generates more cash than it needs to maintain its market share. In a low growth market, but product has dominant market share question mark Shows rapid growth but poor profit margins. Low market share in high growth industry dog Low growth potential and a small market share SWOT Analysis Identifying internal strengths and weaknesses and also examining eternal opportunities and threats Penetration same products for same customers Product Development new products for same customers Market Development same products for new segments Diversification new products for new segments Demography The study of people's vital statistics, such as age, race and ethnicity, and location Marketing Marketing is the analysis of customers, competitors, and a company, combining this understanding into an overall understanding of what segments exist, deciding on targeting the most profitable segments, positioning your products, and then doing what's necessary to deliver on that positioning. good marketing identifying the needs of the customers and better addressing them than other companies good marketing involves listening to customers, not tell. trying to make your customer happy (not just get a lot of sales) product solution to a consumers problem. positioned relative to competitors (price, offerings, etc.) need state of felt deprivation including physical, social, and individual needs. Natural, cannot be created by marketers want form that a human need takes, as shaped by culture and individual personality. Marketers can create a want demand Wants + Buying Power (i.e. benefits sought) market anyone who does and would buy a product market segment a portion of the overall market Production Orientation Availability and affordability Product Orientation Benefits of the product Selling Orientation promotion of the product marketing orientation needs, wants, and satisfaction of the customer societal marketing orientation needs, wants, satisfaction, and costs to society high prices caused by costs of distribution, advertising and promotion, excessive markups distribution cost should be a solution to getting what consumers want. Distribution is normally high for most products excessive mark-ups cost besides to increase profit, mark-ups might result to keep products exclusive or even to prevent over-inflation of the product high advertising and promotion cost results from companies needing to get their product known by consumers and to be competitive with other companies. When companies get more customers, they can lower the prices Goal of Marketing not just to reach a high amount of people, but also to reach the RIGHT people (who are more likely to buy the product) Deceptive Pricing falsely advertising "factory/wholesale" prices or large reduction from fake high list price Deceptive Promotion Overstating the Product's Features, Luring Customers to the Store for Out-of-Stock Bargains, etc. Deceptive Packaging Exaggerating Package Contents, Not Filling Package to the Top, Using Misleading Labeling Planned Obsolescence Reasons increased sales, reduced service, competitive advantage Unsafe Products okay in certain situations. Knifes are unsafe if used improperly. if making a product safe costs an unreasonable amount, the product might be sold as is. materialism judging others based on what they have. can create "false" wants cultural polution culture more represented by corporations rather than what it used to be. companies need to be careful about this to avoid being viewed negatively sustainability the idea that marketing firms can help improve society and the environment by leaving things better than when you started. important to societal marketing marketing ethics broad guidelines that everyone in the organization must follow main factor of satisfaction the customers expectations and wants must be meet for satisfaction. even if a product performs poorly, the customer might still be satisfied if they expected it to be that way expectation levels vital to marketing. Levels should be reasonable. giving the customer expectations of a product that are too high will make the customer angry and company will suffer loyalty customers go out of their way and seek out a certain company. they will inconvenience themselves to buy from a certain company (not just a repeat shopper) The Consumer Bill of Rights (1962) Right to Safety Right to Be Informed Right to Choose Right to Be Heard Right to Consumer Education Right to Recourse and Redress Right to an Environment That Enhances the Quality of Life Strategic Planning The Process of Developing and Maintaining a Strategic Fit Between the Organization's Goals and Capabilities and Changing Market Opportunities. Strategic Planning Steps analysis: Company & Environment Competitors & Environment Customers Implementation: Segmentation Targeting Positioning Perceptions Value Quality Reactions Satisfaction Loyalty Marketing Objectives must be: realistic, measurable, and time-specific ex. "Our objective is to achieve 10 percent dollar market share in the specialty pet food market within 12 months of product introduction." leader highest sales, large amount of investment challenger tries to become leader by offering similar products, must invest lots of money follower exists in market, not challenging niche offers different benefits to specific customers that aren't catered to by other companies product use how customers use the product is critical for marketers to understand customers who,when,how,why,where market segmentation determining distinct groups of buyers with different needs, characteristics, or behaviors. marketers must always segment the market