MARK 30001 1st Edition Exam 1 Study Guide Lectures 1 6 Lecture 1 August 14 Introduction The Basics of Marketing What is a target market Target Market A specific subset of consumers who share similar needs and wants What are the four P s What do they stand for How do they relate to advertising 1 Product physical good or service 2 Price the value to be exchanged 3 Promotion how the product is communicated 4 Place where the product is available The 4 P s relate to advertising in the fact that they represent what defines your product and how to categorize it What is the exchange of value What is the definition of utility in relation to consumers and what are the four things that make up utility The exchange of value is ideal that both parties must see the value meaning that the consumer must see enough value to purchase the product and the seller must see enough value in the amount of money they are being paid for it Utility is what makes a product useful to a consumer Utility is a very important factor in helping a consumer make the decision to buy a product or not The 4 components of utility 1 Form having a product in the form the consumer wants it 2 Time having the product at the time the consumer wants it 3 Place being able to buy or use the product where the consumer wants it 4 Assortment being able to get the product in a logical grouping of other products What is a long term relationship in advertising terms and why is it important A long term relationship consists of consumers who consistently buy and advocate for your product They are loyal to the product and feel a special connection with it This is important because loyal heavy users of the product are what bring the most income from a product and offer stability Lecture 2 August 19 Environmental Factors and Demographics What is business to business marketing What about the 4 P s changes for B2B marketing Business to business marketing is when businesses have to market and sell to other businesses like Kellogg s selling their Special K cereal to Kroger and Publix The businesses like Kroger and Publix buy the products in bulk With B2B marketing product stands for solutions what solutions can the product offer the business place stands for access is it easy to access the business is delivery easy where are they located price stands for value meaning what value does the product add to the business and promotion stands for education how can the business educate individual consumers about the product What is the purpose of an organization Key question What does the customer want What is a marketing concept and what does it consist of The purpose of an organization is to satisfy consumer needs and wants while also meeting the organizational objectives The marketing concept offers the answer to what a customer wants The marketing concept is created through the 4 P s and those 4 P s work to satisfy 3 important concepts creating value delivering value and communicating value What are the two other orientations of a company What are the key questions that go with each orientation Production Key question What does the firm do best Sales Key question How can we sell more of what we have Lecture 3 August 21 Political and Legal Factors List the 6 environmental factors that play a role in marketing 1 Demographics 2 Social 3 Economics 4 Technological 5 Political and Legal 6 Competitive List the 5 age cohorts and list the characteristics of each age cohort 1 Tweens a 8 12 years old 20 million forming attitudes cynical towards ads 2 Teens a 13 17 years old 25 million 72 hrs week on electronics see shopping as a social sport very engaged 3 Generation Y a 18 32 years old 75 million wide range of life cycles inquisitive diverse multitaskers 4 Generation X a 33 47 years old 40 million focus on children biggest spenders at mass merchandisers value education 5 Baby Boomers a 48 66 years old 75 million more active than previous generations post poning retirement very involved in lives of adult children and grandchildren What is the importance of growing ethnic markets in the US Minorities currently represent 37 of the US population and it s only growing 50 4 of all children belong to a minority group There is a huge market available to satisfy the needs of this growing demographic List the social factors that affect consumers 1 Values self sufficiency work ethic upward mobility etc 2 Conformity no one should expect special treatment 3 Individuality 4 Work to live 5 Time is an issue List the economic factors that affect consumers What two factors determine a consumer s willingness to purchase Explain a consumer s behavior during the four economic periods 1 Overall economy 2 Consumer s ability to purchase 3 Consumer s ability to purchase Both income and business cycles and perceptions determine a consumer s willingness to purchase Consumers will act differently depending on if the economy is going through a time of depression recovery prosperity or recession During a time of recession a consumer s focus is on value During a time of recovery a consumer s focus is on buy now for better times later During a time of prosperity a consumer s focus in convenience or reward During a time of depression a consumer s focus is on extremely basic needs What is the formula for a consumer s Misery Index Misery Index unemployment rate inflation rate Lecture 4 August 26 Consumer Behavior and Marketing Research What do laws and regulations protect Competition and Consumers What two acts were put in place to maintain competitive environments Sherman and Clayton Acts What is price discrimination What case dealt with price discrimination and what type of consumer does it deal with Price discrimination is when a company discriminates against a company by changing its prices An example would be if P G sold a product to Publix for much lower than it sold that same product to Kroger Robinson Patman It deals with Business to business transactions What act addresses price fixing What is price fixing Federal Trade Commission Act Price fixing is when two or more companies collaborate and agree on a price that benefits them both This takes competition away and the companies can make the prices as high as they want What act addresses deceiving consumers Wheeler Lea Act What two organizations ensure the safety of products on the market 1 Consumer Product Safety Commission 2 Food and Drug Administration Explain the difference between direct and indirect competition Direct