Chapter 1 Flashcards
What is marketing?
Marketing is the activity, set of institutions, and processes for creating, communicating, and delivering offerings that have value for customers, clients, partners, and society
What is consumer behaviour?
The study of consumers choices during searching, evaluating, purchasing, and using products and services that they believe would satisfy their needs.
What could a yellow sports car say about a consumer?
It could be an emotional choice!
Owner characteristics: sporty, snazzy, rich, tends to be owned by males.
A purchase can tell us about a consumer.
What are vices and virtues?
Virtuous «good» products justify purchases of vices
Research shows that the: Presence of healthy food option “licensed” consumers to eat unhealthy food. Consumers estimated burger calories decreased over 100 calories when accompanied by three celery sticks
How and why do consumers make decisions based on other factors than facts and rationality?
What is the Marketing Concept?
The premise that marketing consists of satisfying consumers’ needs, creating value, and retaining customers, and that companies must produce only those goods that they have already determined would satisfy consumer needs and meet organizational goals.
What is Marketing Myopia?
It’s a short-sighted approach where companies “look in the mirror instead of out the window”
In other words, managers focus on the product, not the needs it is designed to fulfill
What are the marketing concept requirements?
- Market Segmentation
- Targeting
- Postioning
- The marketing mix (product/service, price, place, promotion)
What should you know about value exchange?
Technologies create a value exchange (ex. Info about you and about the company)
Technology makes it easier to shop and access information, entertainment, and customized products
Consumers pay for content with information about themselves
What are four more precise targeting elements?
- Cookies (gathering information)
- Global Positioning Systems (GPS - movement, location)
- Selfies
- Interactive communications
What is cross-screen marketing?
A promotional strategy that consists of tracking and targeting users across their computers, mobile phones, and tablets, and sending them personalized ads based on their interests, as observed by marketers.
What are the three components of successful relationships?
- Customer Value
- Customer Satisfaction
- Customer Retention
Explain customer value in terms of successful relationships?
It’s defined as the ratio between the customer’s perceived benefits and the resources used to obtain those benefits
Perceived value is relative and subjective
Developing a value proposition is critical
Explain customer satisfaction in terms of successful relationships?
The individual’s perception of the performance of the product or service in relation to his or her expectations
Customer groups based on loyalty include loyalists, apostles, defectors, terrorists, hostages, and mercenaries
Explain customer retention in terms of successful relationships?
The objective of providing value is to retain highly satisfied customers
Loyal customers are key
- they buy more products
- they are less price sensitive
- servicing them is cheaper
-They spread positive word of mouth
What are the two forms of engagement?
Emotional Bonds
- Personal commitment and attachement
- Social media attempts to get consumers to engage emotionally with products and brands
Transactional Bonds
- Mechanics and structures that facilitate exchanges between consumers and sellers
- Factors like assortment and transaction ease could shape the relationship
