MOS 2320 Midterm Review

What is Marketing? What is the purpose of Marketing?

What did Peter Drucker say about Marketing & what does that mean?

What is Value/Consumer Value & how does marketing help to create it?

Needs & Wants – What are they? How are they different?

Exchange – What is this, what does it require, & what role does it play in the marketing process?

Social & Ethical Issues with Marketing – What are the common social & ethical criticisms regarding marketing? What are
the common defenses of marketing?
• High Prices – Does marketing make things more expensive? Does it make us pay more for products than we
would otherwise?
• Deceptive Practices – Is marketing built around deceiving & misleading consumers?
• High-Pressure Selling – Is marketing all about making us buy things we don’t need?
• Unsafe or Shoddy Products – Does marketing make us purchase things that aren’t safe or well-made?
• Planned Obsolescence & Perceived Obsolescence - Does marketing push demand with products that break
down or seem to not work?
• Cultural Pollution – Does marketing make our culture a poorer & less rewarding place?

Marketing for the Social Good, Consumerism/Consumer Movement & Environmentalism – What are these? How do they
work?

The Marketing Mix (4 Ps)

1. Product (Goods/Services/Ideas) – Creating Value
2. Price – Transacting Value
3. Place – Delivering Value
4. Promotion (Advertising/Sales Promotion/Personal Selling/Direct Marketing/Public Relations/Electronic
Media) – Communicating Value

Marketing Contexts: Business-to-Consumer/Business-to-Business/Customer-to-Customer

Markets & Target Markets – What are they & how are they different?

Four Marketing Orientations – What are the characteristics of each one?

1. Product Orientation
2. Sales Orientation
3. Market Orientation
4. Value-Based Orientation

Value-Based Orientation – Relationship Marketing/Relational Orientation, & Customer Relationship Management (CRM)
– What are these? Why do they matter? How can we build/sustain them?

Sustainable Competitive Advantage – What is this & how can we achieve this?
• Grewel text – Operational Excellence, Locational Excellence, Customer Excellence, & Product Excellence
• Treacy & Wieserma -- Operational Excellence, Consumer Intimacy, & Product Leadership
• Michael Porter (Competitive Strategies) – Cost Leadership, Focus, Differentiation, & Middle-of-the-Road

Page 1 of 8
What is a marketing plan? (Know each step & what happens in each phase)

What is Mission & Vision? How are they different?

What are Objectives? What are strong objectives? (Quantitative/Qualitative, Specific, Measurable, Achievable, Realistic,
Time-bound (Deadlines))

Ansoff Matrix/Generic Growth Strategies – What are they & how do they work? Can you give an example of each?
1. Market Penetration – Getting more of our current market with our current products
2. Market Development – Getting into a new market with our current products
3. Product Development – Giving new products to our current market
4. Diversification
a. Related – A new product offered to a new market where we can use some of the same resources of
our old and existing marketing
b. Unrelated – A new product offered to a new market but where there is no overlap with our old and
existing marketing

Environmental Analysis

Page 2 of 8
Microenvironmental Factors – Company Capabilities, Competition (Direct/Indirect), Corporate
Partners (Suppliers/Intermediaries), & Publics (Media/Advocacy Groups/Government/Financial)

Macroenvironmental Factors – C.D.S.T.E.P.

• Culture – Core cultures & Secondary cultural characteristic but we will also talk about these in terms of
Macro/Country-wide Cultures & smaller & more localized Subcultures, & focused microcultures.
• Demographics – Generational Cohorts (Baby Boomers, Gen X, Gen Y, Gen Z/Millennials), Income (Upper,
Middle, & Working Class characteristics/attributes), Education, Gender, Ethnicity
• Social/Natural Trends – Time-Poor Society, Greener Customers, Health & Wellness, & Privacy Concerns
• Technological – Not just new products but new ways to make/deliver/exchange value. All areas of the the
marketing mix impacted.
• Economic – Interest Rates, Foreign Exchange, Inflation, Recession, & Consumer Confidence
• Political/Legal – Government Oversight, Legislation, Regulation, & Legal Requirements

SWOT Analysis – Proactive analysis of the organization and its marketing situation by comparing internal Strengths and
Weaknesses with external Opportunities and Threats. (Know what they are & examples of each)

B2B Marketing

Business-to-Business (B2B) Marketing – What is this? How is it different from Business-to-Consumer (B2C) Marketing?

Key Players in B2B Marketplace

1. Manufacturers/Producers
2. Resellers
3. Institutions
4. Government

Key Differences between B2B Markets & B2C Markets:

1. Market Characteristics (Derived Demand & Inelasticity + Concentration)
2. Product Characteristics (Capital Items, Parts & Materials, Supplies & Services, but need to be made to exact
specifications)
3. Marketing Mix Characteristics
4. Buying Process Characteristics

Page 3 of 8
B2B Purchase Decision Process – Know the process & what occurs in each step.

1. Need Recognition – Generated Internally or Externally

2. Product Specifications – Done independently or collaboratively with suppliers
3. Request-for-Proposal (RFP) Process
4. Proposal Analysis & Supplier Selection
5. Order Specification (Purchase)
6. Assessment of Purchase/Vendor Peformance

Factors influencing B2B Purchase Decision Process?

• Buying Center
• Organizational Culture – Autocratic/Democratic/Consultative/Consensus
• Buying Situations – New Buy/Straight Re-Buy/Modified Re-Buy

What is a Buying Center & how does it work?

What are the different roles at work within a Buying Center? Know what each does & how they work together. Does this
process look the same when a government agency decides to buy new tablets for staff or Quebecor decided to upgrade
their printing facilities?
1. Initiator
2. Influencer
3. Decider
4. Buyer
5. User
6. Gatekeeper

What are the different Buying Cultures and how can they impact how a buying centre works?

Page 4 of 8
What are the different Buying Situations and how can they impact how a buying centre works?

Market Research – What is it & why is it important?

Market Research Process – Know the steps & how to carry out research

1. Problem Definition – “A problem well defined is a problem half solved.”

2. Research Design – What information do we need? How can we collect it in a way to ensure it Is Available,
Accurate, & Practical? Will we need to use a sampling plan (Probability/Non-Probability)?

3. Data Collection – Gathering up Secondary & Primary Data to solve our problem.

Internal Secondary Data & External Secondary Data – What are these? What do we use them for? What are the
pros & cons?

Qualitative Primary Data & Quantitative Primary Data – What are these? How do we collect them? What do we
use them for? What are the pros & cons?

4. Making sense of data collection through analysis & interpretation to turn data into customer/market insights.

5. Reports & Action Plans

Page 5 of 8
Consumer Behaviour – What is this? Why do we care about it?

What is Involvement & how does it affect the Consumer Purchase Decision Process?

Problem-Solving Variations
1. Impulse Buying (Kitkat at the checkout when you stop for gas)
2. Routine/Habitual Decision Making (Milk, bread, yogurt, bananas, chips at the grocery store every Tuesday)
3. Limited Problem Solving (The new winter coat you got or the new phone you’re thinking about getting)
4. Extended Problem Solving (The new car you’re going to buy)

Purchase Decision Process – What is this & what happens at each step? (Know the process and how it changes for
different kinds of purchases)

1. Problem Recognition – Needs can be functional, psychological, (I want a car that gets me to school and that
makes me feel good about myself when I am driving it) and provoked by Internal and External Stimuli
2. Information Search – Internal Search & External Search (Personal Sources/Commercial Sources/Public Sources/
Experiential Sources).
Factors that impact information search in addition to involvement
a. Actual or Perceived Risk (Performance, Financial, Physiological, Social, & Psychological)
b. Benefits vs. Costs
c. Internal Locus of Control & External Locus of Control
3. Evaluation of Alternatives – Universal Set, Retrieval Set, & Evoked Set
a. Determinant Attributes & Evaluative Criteria
b. Decision-Making Rules (Compensatory, Non-Compensatory, & Heuristic)
4. Purchase Decision – Conversion Rates, Purchase Intentions & Purchase Actions
5. Post-Purchase Behaviours – Consumption, Customer Satisfaction, Cognitive Dissonance, & Customer Loyalty

Factors Influencing Purchasing Behaviours – Situational Factors, Sociocultural Factors, & Psychological Factors

1. Situational Factors
• Purchase Situation
• Shopping Situation
• Temporal State

2. Sociocultural Factors
• Reference Groups – Membership, Aspirational, & Dissociative
• Family – Consumer Socialization
• Family as buying unit – Family Lifecycle & Family Decision-making
• Roles & Statuses
• Culture – Macrocultures, Subcultures, Microcultures

3. Psychological Factors – Internal & Enduring

• Motivation (Maslow’s Hierarchy & Freud)
• Attitude – Affective, Behavioural, & Cognitive Components
• Perception – Selective Perception through Selective Exposure, Selective Retention, & Selective
Comprehension
• Learning
• Lifestyle – Activities, Interests, Opinions

Page 6 of 8
Market Segmentation – What is this & how do we do it?

Segmentation Bases/Filters
1. Geographic – Where consumers are & what those places are like.
2. Demographic – Who consumers are & what they are like.
3. Psychographic – How consumers think, feel, & act. (Lifestyles, Self-Values, Self-Concepts)
4. Behavioral – Why consumers buy our products, how they consume them, & what they use our products for.
(Benefits/Usage Rates/Occasions/Loyalty)

Market Targeting – What is this & how do we do it?

Factors to consider when evaluating Market Segments (in addition to the segment’s size & growth, structural
characteristics, & our objectives & resources)
1. Identifiable – Can we know and measure this segment?
2. Reachable – Can we connect with this segment?
3. Responsive – Will this segment respond in a positive way to our marketing?
4. Substantial/Profitable – Is there enough here to make marketing to this segment worthwhile?

Targeting Strategies:
1. Undifferentiated/Mass Marketing
2. Differentiated/Segmented Marketing
3. Concentrated/Niche Marketing
4. Micromarketing/Individual Marketing

Market Positioning – What is this & how do we do it?

Positioning Methods
1. Value
2. Product Attributes
3. Benefits & Symbolism
4. Competition
5. Market Leadership

Page 7 of 8
What are positioning statements – How do we develop them & what do we use them for?

What are Perceptual Maps, how do we make them, & what do they use them for?

What is Repositioning & what is it for? (Think about how Old Spice went from being your grandpa’s aftershave to your
brother’s favourite body wash)

Page 8 of 8