Exam 2 Flashcards
(90 cards)
1
Q
What are the benefits of market segmentation?
A
- effective means for reaching customers
- helps allocating market resources
- identifies market opportunities for the company
- identifies segments that drive profitability
2
Q
Segmentation Groups
A
- Geographic
- Demographic
- Psychographic: based on personalities and lifestyles
- Behavioral: most useful; looking at usage situations and benefits consumer seeks after
3
Q
5 main characteristics of effective segmentation
A
- measurable: individuals can be assigned to a specific segment
- accessible: consumers can be reached through the companies promotion
- Durable: segment membership and size is consistent over time
- Substantial: segment is large enough to make the products profitable
- Unique needs: sought by the segment consumers
4
Q
Criteria for selecting market segments
A
- Market size: large enough to produce a profit?
- Expected growth
- Competitive position
- Cost to reach: is the market economically accessible?
- Maximize company profit
5
Q
Key components of a Unique selling position
A
- each ad must make a proposition to the customer
- proposition must be one that the competition doesn’t make
- proposition must be able to move masses and pull new customers over
6
Q
Perceptual Maping
A
- Allows you to get a feel for how the customers perceive brands
- Brands located near each other on the map are believed to be similar and are in direct competition
7
Q
Gap Analysis
A
-compares brands based on the importance and performance of their differing features and benefits
8
Q
Hierarchical values Analysis
A
-Interviewing customers to discover their core motivations behind purchasing decisions
9
Q
Define competitive angle
A
Element of difference that solves a problem and makes a connection with consumers
10
Q
What are key factors in a competitive angle
A
- More unique than current offerings
- Positive personal connection with the consumer
- Lifts consumers over a hurdle
11
Q
Materials and parts
A
raw materials used in the manufacturing process and become part of the final product
12
Q
Capital items
A
products that aid in the production and operations process
13
Q
Supplies and services
A
operating supplies, maintenance items and services that arent related to production
14
Q
convenience products
A
purchased without much thought because they are inexpensive and purchased often
15
Q
shopping products
A
-require careful consideration because they are expensive or will last a long time
16
Q
product line
A
includes closely related product items in the same general category
17
Q
product mix
A
all products offered by a company
18
Q
core product
A
the benefit that makes the product valuable to the buyer; usually intangible
19
Q
actual product
A
- tangible part of product
- characteristics and features that define the product and set it apart from the competition
20
Q
augmented product
A
represents the services that complement the product such as a warranty
21
Q
4 Product life cycle premises
A
- Products have a limited life
- Products and sales pass through distinct states
- Sales and profits from a product vary at different stages
- Products require different strategies at different stages in the life cycle
22
Q
Product Life Cycle Stages
A
- Introduction stage: product is introduced to market and gains awareness; need to promote and encourage trial
- Growth stage: sales and profits accelerate
- Maturity stage: marketing managers seek to maximize profit by getting product loyalty
- Decline stage: make a decision on whether to rejuvenate product or let it die; reduce expenditures
23
Q
How products are adopted
A
- Innovators: people who are first to try new ideas
- Early adopters: first to follow innovators lead
- Early majority: about 34% of population they buy products that are proven to be successful
- Late majority: about 34% of population; are skeptical and only buy new products when price is low or they are easily available
- Laggards: 16% of population; resist change and only buy new when their favorites are unavailable
24
Q
Steps in the New Product Development Process
A
- Idea Generation
- Idea screening
- Concept testing
- Marketing strategy
- Business analysis
- Product development
- Test Marketing
- Commercialization
25
Define idea generation
generate solutions to problems
26
Define idea screeing
- to help qualify ideas
- Type 1: missing the boat
- Type 2: sinking the ship
27
define concept testing
- most crucial stage; first time the idea is tested with customers
- usually done in a focus group
- where the process breaks down most often
28
define business analysis
- make business case for concept
| - includes forecasting and profitability analysis
29
define product development
-creating a customized product for the customer
30
define test marketing
- helps estimate the extent customers will purchase product
| - usually place product in several test markets; about 2-6 cities
31
define commericalization
- deciding whether or no to launch the product
- if high product trail and high repeat purchase: GO
- high trail and low repeat purchase: consumers were willing to try but did not see value in purchasing again
- low trail and high repeat: once customers learned about product they were willing to buy again
- low trail and low repeat: back to drawing board
32
Types of Brands
- functional: focus on benefits and help customers achieve basic goals
- image: distinct and admired for the image they create
- experiential: focus on how the product makes customer feel
- attitude: based on emotions the customers feel
- cult: empower people to join a group
33
Goals of a brand
- Resonate with customers
- Differentiate from competitors
- Motivate employees
- Develop brand equity
34
Brand valuation approaches
- market based: estimation of amount for which a brand can be sold
- income based: based on future net revenues directly attributed to brand
- formulary based: multiple criteria; profitability, leadership, stability, trend, support
35
alpha testing
invite customers to come and try product at your company
36
beta testing
give your product to a few customers and have them report back
37
5 Dimensions of an Angle
- need to believe: what significant pain points does the product address?
- reason to believe: show the product solves a problem
- dominate situations
- quantifiable support: what are the relevant facts that support the product claim?
- unique product claim
38
what is a brand?
sum total of impression formed through exposure on your touch points: ads, logo, website, packaging, etc...
39
Points of difference
- what makes it desirable to customer
| - how is it different from competitors
40
points of parity
- demonstrate category credentials
| - negate competitor points of difference
41
service
activities, benefits which are offered for sale or provided in connection with the sale of goods
42
intangibility
service experiences are intangible and hard to measure
43
inseparability
cant separate the service from the provider
44
variability
humans deliver an inconsistent level of service
45
perishability
once the service is done its DONE
46
7 P's of Marketing
- Product, price, place, promotion
- People: must hire people because of their personality
- Process: how the service is provided and delivered to the customer
- Physical environment: must show evidence you will give quality service
47
Internal marketing
- occurs between the company and its employees
| - if you satisfy employees they will satisfy customers
48
external marketing
- occur between company and customers
- create awareness and set price expectations
- highlight service advantage and share customer testimonials
49
interactive marketing activities
- occur between employee and customer
- each of these interactions is called a moment of truth
- critical to short term and long term success
50
Determinants of service quality
- reliability: ability for a company to perform promised service dependably and accurately
- responsiveness: helping customers promptly
- assurance: competence, courtesy, credibility
- empathy: access, communication, and understanding
- tangibles: appearance of physical facilities, equipment and personnel
51
external reference price
-what everyone else is paying for the product
52
internal reference price
what consumers think they should pay for the product
53
unit contribution/margin
=unit price - variable unit cost
54
total contribution
= unit contribution x total number of units sold
55
price skimming
- marketers set a hight price to obtain high margin with less sales quantity
- usually makes demand low
- establishes a premium brand
- capture consumer surplus from the market
56
price penetration
- markets set a low price to capture market share quickly
- discourages entry from competitors
- can lead to cost reduction per unit
57
prestige pricing
high price to signal quality and status
58
price lining
different prices for different products in a line
59
bundle pricing
two or more products in a single package
60
yield management
-match demand and supply for a set capactiy
61
going rate pricing
match the competition
62
cost plus pricing
accountants calculate cost then marketing managers add on margin needed to make return demanded by upper management
-ignores consumers and competitors pricing
63
competitive pricing
takes into account what competitors are charing
64
value pricing
- have all information from customers and competitors
| - about finding a good balance
65
golden goose pricing
-failed value pricing, when businesses become greedy
66
percent margin
= price - variable cost / price
67
Steps in setting price
- select the pricing objective
- determine demand
- estimate company cost
- know competitor prices
68
elastic
consumers are more sensitive to a change in price and you lose more customers
69
How to communicate product value
- informing
- persuading
- reminding them of the product benefits
70
push promotion
push products through the channel of distribution
71
pull promotion
direct marketing toward consumer and encourage them to ask retailers for product
72
entertaining ads
good feelings created by ad spill over into product
73
educational ads
people preparing to make a purchase will tune in mor e intently
74
cognitive objective
- build awareness
| - usually first in product life cycle
75
affective objective
gain interest and liking
76
behavioral objective
stimulate action
77
cost per thousand impression
how many opportunities the general public has to view a particular ad
78
gros rating point
% of all households with tvs that have opportunity to view an ad over course of media plan
79
sales promotions
short term incentives to encourage product trail and repeat purchases
80
value ad promos
introduces new complementary product
81
4 C's of marketing communicatoins
- consumer
- cost
- convenience
- communication
82
Objectives of social media marketing
- Reach
- Engage
- Convert
83
How ad performance is measured
- Recall
| - persuasion
84
Direct marketing
- use of direct communication with consumers to generate a response
- direct mail has highest response rate over google ads
85
Online Media Objectives
-Facebook: cognitive; generates awareness
-LinkedIn: affective; thought leadership
-Google Adwords; behavioral
YouTube: behavioral; product demonstrations
86
What drives Ad sharing
- Intrinsic motivation; self interest
| - the emotions the ad creates
87
What 3 things will make your ad go viral
- Owned; website
- Purchased advertising
- Earned publicity
88
personal selling
two way communication between buyer and seller designed to influence a purchase decision
89
public relations
placement of news or media presentations with the attempt to manage the publics perception
90
4 steps for creating a social media marketing strategy
- set social media marketing goals
- know buyer persona
- determine social media network
- track success and improve
