BUS-M 311Exam # 1 Study Guide Chapters 1-4- The marketing mix- the tools traditionally regarded as the four essential components of smart market planningo The 4Ps must be consistent with each other so that there is one voice to the consumer  Product-benefits or values offered and needs met Price- the means of exchange a consumer gives for a product or service Place- the set of interdependent organizations involved in the process of making a product available to customers Promotion- Promotional push strategy- the goal is to persuade the trade to stock, merchandise, and promote a company’s products by aggressively selling an promoting them- Promotional pull strategy-the goal is to create demand among end userswho will in turn encourage retailers to carry a brand- Integrated marketing communications- the process of planning, executing, evaluating, and controlling the use of the various promotional mix elements to effectively communicate with target audiences- The 5Rs o Receptivityo Recognitiono Responsivenesso Relevancyo Relationship- Elements of the promotional mix, their strengths and weaknesses and when to use them (pros and cons of each of the promotional mix items can be found on pages 5-8 of the textbook)o Promotional mix- the basic tools marketers have at their disposal to achieve marketing objectives Advertising- any paid form of non-personal communication about an organization, product, service, or idea by an identified sponsor Direct marketing- brands can directly reach target customers; intends to generate a response and/or a transaction Interactive/Internet Marketing- interactive media allows for a back and forth flow of information which users contribute to, modify, and personalize in real time when it is convenient for them Sales promotion- anything that provides incentives which generates sales revenue Publix relations- the purpose is to establish and maintain a positive corporate image Publicity- impersonal, unsponsored, and not directly purchased messages about a company, product, or service Personal selling- direct one-to-one communication intended to persuade perspective buyers to purchase a company’s product or service or to take actiob- SWOT o Strengths, weaknesses, opportunities, and threats Strengths and weaknesses are internally focused, while opportunities and threats are externally focusedo It is a launching pad for strategic decision making o Benefits Helps a to organize thinking about a particular brand and gives you new perspective Inspires a lot of ideas and actions  It is a document that everyone can use as a centerpiece of their thinking and create agreement among all of the stakeholderso Should be as fact based and objective as possible - Point of Entry targeting- targeting a certain group because they are in the group for the first time- Category Build targeting- great for marketers because people aren’t trying to market to themo Instruct them on why it might be useful for them - Segmentation, positioning, and targeting steps and which comes first, second, and thirdo Segmentation Undifferentiated- ignoring segment differences and offering just one product or service to the entire market Differentiated- marketing to multiple segments, using distinct strategies for each Concentrated/niche marketing- attempting to capture a large share of a small segmento Targeting The segments must be:- Substantialo large enough to deserve a special marketing mix- Identifiable and measureableo We know who they are and how to assess whether what we do is working- Accessibleo Reachable with promotional mix- Responsiveo React similarly to one another in terms of promotional mix used o Positioning  Develop a marketing mix for each segment selected  Design a product to meet market segment’s needs- Bases for Segmentation: o Geographic- based on locationo Demographic- age, education, gender, income, etc.o Usage Rate- interested in your product more than others; use-up rate will be faster for some o Psychographic- lifestyles, attitudes, behaviorso Lifestyle segmentation by benefit - Hierarchy of Needs (in order of what must be met first before we can move on)o Physiological needs(hunger, thirst)o Safety needs(security, protection)o Social needs(sense of belonging, love)o Esteem Needs(self-esteem, recognition, status)o Self-Actualization needs(self-development, realization)- The 5 Stages in Consumer Decision-Makingo Problem-Recognition Stage Level of motivation a consumer has to consider the purchasing brand Driven by a gap between the consumer’s ideal state and actual state Psychological process: motivationo The information search stage Altering consumer perceptions about a brand as he/she acquires more information about it and assesses its ability to address their needs compared to competitors Internal information search- scans information stored in memory to recall past experiences or knowledge External information search- involves pursuing sources outside of oneself to acquire information Psychological process: perceptiono Alternative evaluation stage Attitude formation process in the consumers’ mind Evoked set- the brands a consumer considers candidates for purchase Marketer attempts to reach the consumer with brand messages  Psychological process: attitude formationo Purchase decision stage The integration aspect of a consumer’s psyche  The consumer mentally links what has been learned about the brand with his understanding of the need he is trying to address with the purchase Psychological process: integrationo Postpurchase evaluation stage The learning aspect of consumer psychology Marketer supplies more learning to buyers which justifies their decision and prevents cognitive dissonance Psychological process: learning- Subcultures, cultures, social classes, reference groups, and their effects on decision-making o Culture The learned meanings, value norms, and customs shared by members of a society The impact on consumer behavior is increasingly relevant with globalization of businesso Subcultures Societal sub-segments who members have similar beliefs, values, norms, and behavior that distinguish them from mainstream cultureo Social class Homogenous factions of society made up of those with similar lifestyles, values, norms, interests, and behaviorso Reference groups Social groups whose point