MARK 30001 1st Edition Exam # 1 Study Guide Lectures: 1 - 6Lecture 1 (August 14)Introduction: The Basics of MarketingWhat is a target market?Target Market:- A specific subset of consumers who share similar needs and wantsWhat are the four P’s? What do they stand for? How do they relate to advertising?1. Product: physical good or service2.Price: the value to be exchanged3.Promotion: how the product is communicated4.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 itWhat 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 it2.Time – having the product at the time the consumer wants it3.Place – being able to buy or use the product where the consumer wants it4.Assortment – being able to get the product in a logical grouping of other productsWhat 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 DemographicsWhat 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 FactorsList the 6 environmental factors that play a role in marketing:1. Demographics2. Social3. Economics4. Technological5. Political and Legal6. CompetitiveList the 5 age cohorts and list the characteristics of each age cohort:1. Tweensa. 8-12 years old, 20+ million, forming attitudes, cynical towards ads2. Teensa. 13-17 years old, 25 million, 72 hrs/week on electronics, see shopping as a social sport, very engaged3. Generation “Y”a. 18-32 years old, 75+ million, wide range of life cycles, inquisitive, diverse, multi-taskers4. Generation “X”a. 33-47 years old, 40 million, focus on children, biggest spenders at mass merchandisers, value education5. Baby Boomersa. 48-66 years old, 75 million, more active than previous generations, post-poning retirement, very involved in lives of adult children and grandchildrenWhat 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. Individuality4. Work to live5. Time is an issueList 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 economy2. Consumer’s ability to purchase3. 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, aconsumer’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’sfocus 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 ResearchWhat do laws and regulations protect?Competition and ConsumersWhat two acts were put in place to maintain competitive environments?Sherman and Clayton ActsWhat 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 ActWhat