Exam # 1 Study GuideGeneral Notes-The exam will consist of multiple-choice items, 1 required essay question where you are given a choice between two options, and a question for extra credit.-My multiple-choice questions tend to be harder than students anticipate, so be prepared. If you have come to class regularly and paid attention and utilized the course packet in guiding your studying with the textbook as a reference, you should be well prepared.-Please note that this is only a guide and questions may or may not be drawn from these topics. Ultimately, I recommend on relying on class discussions and the material presented in class. Topics-What is marketing?-An organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.oDelivering value to all people affected by a transactionoMeeting needs oCan market products, services, people, places, B2B, Not for profit, causes -What is a means-end chain? What is the big idea behind a means-end chain? Be able to explain this.-A diagram that helps illustrate how specific product attributes result in value maximization. -Ex. With coffeeoProduct attributes- (5 senses)- warm, caffeine, smelloFunctional consequences- gives energy, warms me up, tastes goodoPsychological consequences-makes me happy, I feel comfortableoPersonal values- want to get most out of my day, reminds me of family-Schwartz Value systemoSelf transcendence, openness, conservation, self-enhancement-Maslow's Hierarchy of needsoSelf-actualization, esteem, love/belonging, safety, physiological -Be able to describe consumer behavior?-American Marketing associationoThe dynamic integration of affect and cognition, behavior and environment by which human beings conduct the exchange aspects of their lives-Hoyer and MacinnisoThe totality of consumers decisions with respect to the acquisition, consumption and disposal of goods, services, activities, experiences, people and ideas by human decision making over time.-Shiffman, Januk, Wiseblit (Course book)oThe behavior that consumers display in searching for, purchasing, using, evaluationand disposing of products and services that they expect will satisfy their needs-Activities and responses MKTG 407 1st EditionoActivities- search, purchase, use/consume, evaluate, disposeoResponses- emotional, cognitive, behavioral-Consumer Influences and Organizational InfluencesoConsumer-culture, ethnicity, personality, family, feelings, knowledgeoOrganizational- Brand, promotions, price, product features, packaging, serviceo…. 1. Search, 2.obtain, 3.consume, 4.evaluate, 5. Dispose -Be familiar with the textbook’s “simple model of consumer decision-making”. We discussed this in class, and the model is also in the course packet. In particular, be able to identify where certain topics forthis exam would be located in the model (e.g., motivation and personality).Uploaded online -Know the four major marketing orientations.-Product Orientationo1850-1920's focus on efficiency of productionoA good product will sell its self, marketing plays an insignificant roleoDemand> supply (suppliers market)-Sales Orientationo1930-1950's focuses is on moving product via hard sale tacticsoAssumed people resist buying non essentials, marketing is seen as a sales functionoSupply>demand (buyers market)oInfluenced by social psychology-Consumer or Market orientationoMarketing concept-Long-term value and relationships is key, this is no longer a competitive advantage because everyone is doing it-Consumer behavior-Social marketing OrientationoTry to benefit consumer, society, and firmoConsumer wellbeing-Marketing to enhance consumer long term quality of lifeoSustainability -What are the four key processes necessary to implement the marketing concept?-Gather marketing research to understand consumers needs-Segment the market into meaningful subcategories of customers with shared needs-Select target market or markets to go afteroCannot please all consumers-Functional position: basic necessities-Experimental position: Ex. Nike-Symbolic position: making an emotional connection-Position the offering by developing a distinct image for the product -How do we build relationships with customers?-Create ValueoBenefits must outweigh resources -Ensure satisfaction-Establish and maintain trust-Retain valued customers-Does Starbucks practice the marketing orientation or the social marketing orientation? What about Toms? Explain.-Starbucks practices Social Marketing Orientation because they are practicing sustainabilityin not buying coffee beans that are destroying forests. Toms practices the Social Marketing Concept, because they are trying to benefit consumers, society and firm. And they are improving others lives. They also focus on sustainability; making choices that benefit others -What is marketing research?-Marketing Research: gathering information, collecting data, and analyzing this information, in order to make conclusions and market successfully. oIf you need to create or find it… then you are doing marketing research! -Be able to apply the marketing system.-Understanding relationship between Independent variables and dependent variables is a key function of marketing research. Independent Variables Dependent Variable Marketing mix(Controllable)Pricing, promotion, product, distribution> BehaviorAwareness, knowledge, liking, preference, intent to buy, purchaseV Situational factors (uncontrollable)Demand, competition, legal/political, eco climate, tech, Gov. regulations>^ Performance measuresSales, market share, profit, ROI, image -Consumer influences: culture, ethnicity, personality, family, life stage, values, attitudes, motivation, feelings, knowledge-Organizational influences: brand, advertisings, promos, price, product features, packaging, service, loyalty programs, store atmosphere->These lead to …. Searching, obtaining, consuming, evaluation, disposing -How do marketing researchers and decision-makers differ in their outlooks?-ResearchersoFocus on underlying problemoLike to explore new questionsoCan tolerate long investigationsoNot concerned with costoEnjoy surprisesoTentative, speak in probabilitiesoInterested in past behavior-Decision MakersoFocus on symptoms of problemoWant info to confirm decisionoWant quick