Exam 1 Flashcards
(75 cards)
1
Q
Marketing
A
Creating and Capturing Customer Value
2
Q
What can be marketed?
A
Goods, Services/Experiences, Idea/Movement, People
3
Q
Tactics
A
actions taken to support the strategy
4
Q
Strategy
A
overarching plan to achieve an objective
5
Q
What is a market?
A
the set of actual and potential buyers
6
Q
Needs
A
States of felt deprivation
7
Q
Wants
A
the felt need shaped by a person’s knowledge, culture, and personality
8
Q
Demands
A
human wants that are backed by buying power
9
Q
Market Offerings
A
some combination of products, services, information, or experiences offered to a market to satisfy a need or want
10
Q
Marketing myopia
A
paying more attention to the specific products than to the benefits and experiences produced
11
Q
Examples of marketing myopia
A
Kodak, Barneys New York, GAP, Blockbuster
12
Q
Societal marketing
A
the company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests
13
Q
What are the 3 C’s?
A
Customer, Company, Competition
14
Q
Customer Analysis
A
Who are the possible customers? What are customer needs and wants? How do they make decisions and shop?
15
Q
Company Analysis
A
Company fit with customers, competitors
- strengths and weaknesses; resources
- culture, goals
Economic analysis
- costs, profitability, ROI
16
Q
Competitor Analysis
A
Who are the competitors in the target markets we are considering? What are the capabilities of the competition we face?
17
Q
Strategic Decisions
A
segmentation, targeting, positioning
18
Q
Strategy: Segmentation
A
How can we divide the marketplace?
-demographic
-psychographic
-geographic
-behavioral
19
Q
Strategy: Targeting
A
Who are the target customers?
20
Q
Strategy: Differentiation and Positioning
A
How is our product unique and different from the competition? How should our product be perceived and remembered by customers?
21
Q
A brand’s VALUE PROPOSITION
A
set of benefits or values it promises to deliver to customers to satisfy their needs
- examples: Sonos One with Amazon Alexa: “The smart speaker for music lovers”
22
Q
The Marketing Mix
A
Product, Place, Price, Promotion
23
Q
Integrated marketing program
A
a comprehensive plan that communicates and delivers intended value
24
Q
Product
A
what attributes will be offered
25
Price
what will you charge
26
Place
where it will be available for purchase
27
Promotion
how you will make it known and attractive to consumers
28
SWOT Analysis
Strengths, Weaknesses, Opportunities, Threats
29
Internal to Company - Positive Strengths, Negative Weaknesses
Things that you have some control over and can change
example: your patents and IP, location, and who is on your team
30
External to Company - Positive Opportunities, Negative Threats
Things that are going outside your company, in the larger market. You can take advantage of opportunities and protect against threats, but you can't change them.
example: competitors, prices of raw materials, customer shopping trends
31
Consumer
user of the product
32
Customer
purchaser of the product
33
Maslow's Hierarchy of Needs
Physiological Needs, Safety Needs, Belongingness and Love Needs, Esteem Needs, Self-actualization
34
Basic Needs
Physiological Needs (food, water, warmth, rest) and Safety Needs (security, safety)
35
Psychological Needs
Belongingness and Love Needs (intimate relationships, friends) and Esteem Need (prestige and feeling of accomplishment)
36
Self-fulfillment needs
Self-actualization : achieving one's full potential, including creative activities
37
The Consumer Decision Process
Need recognition, Information Search, Evaluation of Alternatives, Purchase Decisions, Postpurchase Behavior
38
Need recognition
1st stage of the buyer decision process; the customer recognised a problem or need triggered by:
- internal stimuli (ex. I am hungry)
- external stimuli (ex. Ad)
39
Functional Needs
Product or service functionality and performance
40
Psychological needs
Personal gratification
41
Information Search
2nd stage of buyer decision process; involves gathering info about how to address the recognize need
- this step shapes which alternatives will be considered and what criteria will be used
- experiential, commercial, personal (social), nd public sources of information
-forming a consideration set and learning about attributes
- involvement increases with importance of consumer need, unfamiliarity and infrequency of purchase, Financial, personal, and social stakes (not only price),
Involvement varies across products, people, and situations.
42
Evaluation of Alternatives
3rd stage of consumer buying process. Involves judging and comparing the items in the consideration set based on the available information and the consumer's needs
To make a perfect decision, all options are judged across every relevant product attribute according to the importance of each attribute
- THE RATIONAL MODEL
- Standard version of this is Fishbein’s Multi-attribute model
43
Purchase Decisions
4th steps of consumer buying process
- Purchase decision is the buyer’s decision to purchase your product.
- The chosen alternative should be both available and convenient to make sure a customer’s preference translates into an actual purchase.
- Marketers often encourage this step by creating urgency or by timing promotional messages when a purchase can be made immediately.
44
Post-purchase behavior
- Post-purchase behavior includes everything that happens after the purchase, from consumption and (dis)satisfaction to repurchase or word-of-mouth
* Consumption and (Dis)Satisfaction
* Product Returns and Service
* Customer Loyalty and Repurchase
* Word of Mouth (WOM)
45
Post-purchase Behavior: Marketing Tactics
- explain/demonstrate correct product use
- build realistic expectations to increase satisfaction
-reinforce the decision (thank you letters, welcome/congratulations letters, encouraging feedback
-designed for shareability, encourage WOM; build and connect brand communities
46
Heuristics and Biases: Rational Model
Compensatory evaluation is the rational ideal
To make a perfect decision, all options are judged across every relevant product attribute according to the importance of each attribute.
Standard version of this is Fishbein’s Multi-attribute model.
* Being strong on one attribute can compensate for weakness on another
* All attributes are considered together
* Slow and effortful, but finds best option accurately
47
Heuristics and Biases: Bounded rationality
People, because of limited time, limited brainpower, and other constraints, use simplified ways of making decisions
48
Non-compensatory evaluation
Eliminates alternatives that do not meet a particular criterion
2 common decision rules:
Conjunctive and Disjunctive
49
Non-compensatory evaluation: Conjunctive Rule
consumers look at every attribute and eliminate options if any is unacceptable
50
Non-compensatory evaluation: Disjunctive Rule
consumers choose the option that is best on one attribute they value most
51
Heuristics
Heuristics are simple, efficient rules which people often use to form judgments and make decisions. They are mental shortcuts that usually involve focusing on one aspect of a complex problem and ignoring others
the process by which humans use mental shortcuts to arrive at decisions
* Usually give reasonably good results quickly
* Most heuristics fail in predictable ways; these
are the heuristics’ hidden traps or biases
52
Biases: The Compromise Effect
People have a disproportionate tendency to choose a middle option
53
Biases: The Endowment Effect
people often demand much more to give up an object than they would be willing to pay to acquire it
54
Loss Aversion
* People place more weight on losses than they do on equal-sized gains (usually 1.5-2.5x)
* As a result, people will often reject opportunities that have a positive average/expected value
* This also contributes to other important biases such
as the Endowment Effect
55
Endowment Effect: Applications
* Easy returns, money-back guarantees
* Test drives, free trials
56
Biases: The Default Bias
When presented with pre-set courses of action or defaults, we tend to accept what is presented.
* Opt-in vs. opt-out
* Recommended donations
57
Symbolic Consumption: Signaling Status and Identity
* Many products and brands provide symbolic value to consumers
* Consumers use products to signal information about themselves
– Status signaling lets others know you are successful, rich, powerful, popular, etc.
– Identity signaling lets others know about your personality, values, interests, etc.
* Symbolic products can also serve as self-signals
58
Symbolic Consumption: Which Products Become Symbols?
* High visibility (cars, clothing, AirPods, laptops, water bottles)
* Durable or long-lasting
* Frequently used (clothing, food, personal care)
* [Status signaling] Vertically differentiated
* [Identity signaling] Horizontally differentiated
* Costly (money, time, etc.)
59
Costly Signals
Signals are more likely to be “true” if people are unable to get them falsely or accidentally.
Costly signals are impossible or painful to fake.
– Expensive (money, time, effort)
– Require long-term commitment
– Carry significant drawbacks
60
Dogwhistle Signals
Consumers often like to signal in ways that only other “insiders” will notice, using dogwhistle signals
- ex. red bottoms heels/shoes
* Prove that the person has special insider knowledge.
* Reduce the risk of outsiders noticing and copying the signal.
- To achieve this, many luxury brands have shifted toward small or subtle brand logos on their products
61
Marketing Environment
encompasses all the internal and external factors that drive and influence an organization's marketing activities.
62
Microenviroment
The Company: marketers must work in harmony with other company departments to create customer value and relationships
Suppliers: in creating value for customers, marketers must partner with other firms in the company's value delivery network
Customers: most important actors in the company's microenvironment. The aim of the entire value delivery system is to serve target customers and create strong relationships with them.
63
Macroenviroment
Demographic: changing demographics mean changes in markets and marketing strategies
Natural: concern for the natural environment has spawned a so-called green movement
Cultural: marketers also want to be socially responsible citizens in their markets and communities
64
Demography
the study of human populations—size, density, location, age, gender, race, occupation, and other statistics
65
Demographic Environment
involves people, and people make up markets
66
Demographic trends
Population size, average age, age groups, family size, median income, income groups, education, race, ethnicity, religion, lifestyle.
67
Macroeconomics and Consumption
- Branded vs store brand products
- value of money vs. time/effort/attention
- sensitivity to prices (and price promotions)
- big ticket vs. small ticket purchases
68
Natural environment
physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities
Trends in the Natural Environment
* Growing shortages of raw materials
* Increased pollution
* Increased government intervention
* Developing strategies that support environmental
sustainability
69
Environmental sustainability
involves developing strategies and practices that create a world economy that the planet can support indefinitely
70
Technological Environment
* Most dramatic force in changing the marketplace
* New products, opportunities
* Concern for the safety of new products
Technological changes can affect every aspect of marketing
* New forms of communication and advertising (mobile video, SMS, social media)
* New retail channels (online retailing, pop-up stores, iOS app store, Steam)
* New product categories (apps, wearables, online-only banks)
71
Political and Social Environment
Legislation regulating business is intended to protect:
* companies from each other
* consumers from unfair business practices
* the interests of society against unrestrained business behavior
* Increased emphasis on ethics and socially responsible actions
* Cause-related marketing
72
Cultural Environment
the influence of religious, family, educational, and social systems in the marketing system.
73
Cultural Environment: Core beliefs and values
persistent and are passed on from parents to children and are reinforced by schools, churches, businesses, and government
74
Secondary Beliefs and Values
more open to change and include people’s views of themselves, others, organizations, society, nature, and the universe
75
Cultural and Social Trends
* Family Structure
* Political Polarization; Populism and Nationalism
* Changing Attitudes & Values (e.g., LGBTQ rights, #metoo, religiosity, BLM)
* New Social Trends (e.g., health & wellness, privacy
concerns, mindfulness, social isolation)
