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Marketing > Final > Flashcards

Final Flashcards

1
Q

4 Ways to Segment a Market

A

Geographic - based on location
Demographic - age, family size, life cycle, income, occupation, education, ethnicity/culture, gender etc
Psycho-graphic - social class, lifestyle, values, motivations, opinions, and activities. Personality-how they take in information, decision making, personality type
Behavioural - product-related behaviour - knowledge, attitudes, uses or response to a product

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2
Q

BCG Matrix

A

High Growth Rate, High Market Share - Star
-profit potential, attract competition &need heavy investment to finance rapid growth
High Growth Rate, Low Market Share - ?
-build into stars or phase out, heavy investment to hold or increase market share
Low Growth Rate, High Market Share - Cash Cow
-competition weakened, no serious investment, produce cash & hold market share for short term cash
Low Growth Rate, Low Market Share
-low profit potential, often discontinued

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3
Q

Product Market Expansion Grid

A

Existing markets Existing products - Market Penetration
Existing products New products - Product Development
New markets Existing products - Market Development
New markets New products - Diversification

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4
Q

Factors that Influence Customers - CULTURAL

A

CULTURE - basic values, perceptions, wants behaviours
SUBCULTURE - smaller groups w/in a culture w/ shared value systems based o common life experiences &; situations
SOCIAL CLASS - relatively permanent & ordered divisions in a society whose members share similar values, interests &; behaviours

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5
Q

Factors that Influence Customers - SOCIAL

A

REFERENCE GROUPS- membership, aspirational, dissociative/avoiding, opinion leader
FAMILY- roles: information gatherer, influencer, decision maker, purchaser, user
ROLES + STATUS

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6
Q

Factors that Influence Customers - PERSONAL

A

STAGE OF LIFE - ppl have similar wants/needs at stages like new parents, empty nester, retiree etc.
LIFESTYLE- social relations, consumption, entertainment + dress
PERSONALITY- sincerity, excitement, competence, sophistication, ruggedness -> self concept

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7
Q

Factors that Influence Customers - PSYCHOLOGICAL

A

MOTIVATION
PERCEPTION- selective attention, selective distortion, selective retention
LEARNING- changes in behaviour from experience, vicarious learning, rehearsal, reasoning
BELIEFS/ATTITUDES- constant evaluation towards an object, idea, etc. difficult to change -> descriptive thought

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8
Q

Consumer Decision Making Process

A

Need recognition > Information search > Evaluation of alternatives > Purchase decision > Postpurchase behaviour

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9
Q

Market Research Process

A

Defining the problem + research objectives > Developing the research plan + collecting information > Implementing the research plan, collecting + analyzing the data > Interpreting and reporting the findings

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10
Q

Research Objectives

A

Explore
Describe
Establish Causality
Create Normative Implications

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11
Q

Pros + Cons of Surveys

A

PROS
cheap, access to large samples, fairly in depth
CONS
non-casual, difficult to design well, low response rate, response bias

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12
Q

Pros + Cons of Online Marketing Research

A

PROS
faster response rate, high response rate, cheaper, more interactive + engaging, less fatigue
CONS
more difficult to control who is in the online sample

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13
Q

5 Ways to Segment a Market

A
  1. Need
  2. Geographic
  3. Demographic
  4. Pyschographic
  5. Behavioural
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14
Q

Geographic Segmentation

A

where you live

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15
Q

Need Segmentation

A

adv a customer receives from the product - quality, value, convenience, reliability

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16
Q

Pyschographic Segmentation

A

social class, lifestyles, values, motivations, opinions + activities
how people take in information, decision making

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17
Q

Behavioural Segmentation

A

knowledge, use, attitudes, or response to a product

user status, usage rate, loyalty status

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18
Q

Geographic Pros + Cons

A

PROS- easy to identify
CONS- ignores heterogeneity within segments
underlying needs may be low

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19
Q

Demographic Pros + Cons

A

PROS
easy to identify
CONS
ignores heterogeneity between segments, correlation to underlying needs may be low

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20
Q

Pyschographic Pros + Cons

A

PROS
reveals people’s interests, opinions + values, guides message design
CONS
difficult to identify

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21
Q

Behavioural Pros + Cons

A

PROS
understand who your most important customers are, guides message design
CONS
difficult to identify

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22
Q

Market Targeting Strategies

A
  1. Undifferentiated (mass) marketing
  2. Differentiated (segmented)
  3. Concentrated (niche)
  4. Micromarketing (local or individual)
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23
Q

When choosing a strategy, consider:

A
  • company’s resources
  • product variability
  • product’s stage in life-cycle
  • market/customer variability
  • competitors marketing strategies
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24
Q

3 Levels of a Product

A
  1. Core Benefit - core problem - solving benefits customers are seeking
  2. Actual Product - specific attributes of the product
  3. Augmented Product - additional benefits + services (warranty, etc)
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25
Q

Product Class - CONVENIENCE

A
  • frequent purchases w/ minimal effort

- low price, widespread distribution, mass promotion

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26
Q

Product Class - SHOPPING

A
  • less frequent, more effort + more comparisons

- higher price, selective distribution

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27
Q

Product Class - SPECIALITY

A
  • consumer product w/ unique characteristics
  • a group of buyers is willing to make a special purchase effort
  • brand preference and loyalty, high price + exclusive distribution
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28
Q

Product Class - UNSOUGHT

A
  • little product awareness and knowledge, sometimes negative awareness/connotations
  • -aggressive advertising
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29
Q

Individual Product

A
  • specific version of a product that can be designated as a distinct offering among an organization’s products
  • product attributes, branding, packaging, labelling, product support services
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30
Q

Product Line

A
  • a group of closely-related product items
  • line stretching (adding products that are differently priced)
  • line filling (adding products that are the same price)
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31
Q

Product Mix

A
  • all products that an organization sells

- width, depth, consistency

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32
Q

4 Parts of a Service

A
  1. INTANGIBILITY - cannot be seen, tasted, heard, or smelled before purchase
  2. INSEPARABILITY - cannot be separated from their providers
  3. VARIABILITY - quality depends on who provides them and when, where + how
  4. PERISHABILITY - cannot be stored for later sale or use
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33
Q

Buyer Adoption Process

A
  1. AWARENESS - aware but lacks information
  2. INTEREST - seeks information about the new product
  3. EVALUATION - decides whether or not to try the product
  4. TRIAL - tries product to estimate its value
  5. ADOPTION - buy and make full use of the product
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34
Q

Product Life Cycle

A
  1. Product Development
  2. Introduction
  3. Growth
  4. Maturity
  5. Decline
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35
Q

Product Development

A
  • develop new product idea
  • sales are zero
  • investment costs are high
  • profits are negative
36
Q

Introduction

A

-low sales, higher cost per customer, negative profits, target innovators, little competition
MARKETING GOAL - increase awareness, induce trial
-basic product, use cost-plus basis
-selective distribution, build awareness among early adopters, heavy expenditures to create trial

37
Q

Growth

A

-rapidly rising sales, average cost-per-customer decreases, rising profits
-early adapters/early majority targeted, groing competition
MARKETING GOAL - capitalize on increasing demand, sustain growth
-offer product extensions, service, warranty
-penetration pricing, intensive distribution
-build awareness and interest in the mass market, reduce expenditures

38
Q

Maturity

A

-sales peak, low cost-per-customer, high profits, middle majority targeted, declining competition
MARKETING GOAL - maintain sales level
-diversify brand and models
-set price to match or beat competition, intensive distribution
-stress brand differences and benefits, increase promotion

39
Q

Decline

A

-declining sales, low cost-per-customer, declining profits, laggards are targeted, declining competition
MARKETING GOAL - minimize losses or rejuvenate
-phase out weak items
-cut price, selective distribution
reduce advertising and sales promotion

40
Q

Brand + Brand Equity

A

Brand- a name, term, symbol, design or combination that identifies a seller’s products and differentiates them from competitor’s products
Brand Equity- $ amount attributed to the value of the brand based on all intangible qualities
POSITIVE B.E. - greater willingness to pay for a preferred brand, high brand wareness
-strong brand loyalty and repeat sales
-speeds adoption of new products
-less susceptible to price competition

41
Q

Good Brand Names

A
  1. suggest benefits and qualities
  2. easy to say, recognize and remember
  3. distinctive
  4. extendable
  5. translate well into other languages
  6. fit with desired positioning strategy
  7. do not have negative associations
  8. can be registered & legally protected
42
Q

Brand Positioning Strategies

A
  1. Product Attributes/ Functional
    - least effective, easy to copy
  2. Benefits
    - associates name with desirable benefit
  3. Beliefs and Values
    - taps into emotions (emotional branding)
43
Q

Ownership/Usage Rights of Brands

A

National Brands - share the same name as the manufacturer (manufacturer brands)
Private (store) Brands - established by retailers
Licensed Brands - selling the rights to use a brand on a product
Co-Brands - using two brand names on one product

44
Q

Brand Development Matrix

A

Existing Brand, Existing Product Category - LINE EXTENSION
Existing Brand, New Product Category - BRAND EXTENSION
New Brand, Existing Product Category - MULTIBRANDS
New Brand, New Product Category - NEW BRANDS

45
Q

Line Extension, P + C

A

-introduce additional items in the same product category under the same name (ex. new flavours)
PROS - low cost, low risk, good strategy to increase variety for customers, use excess capacities, or command more shelf space
CONS - over extending brand, cannibalization

46
Q

Band Extension, P +C

A

-use a successful brand name to launch a new product in a new category
PROS - instant recognition, faster acceptance, save on advertising costs
CONS - diluting the image of the main brand, failures can affect the main brand

47
Q

Multibrands, P + C

A

-multiple product variations in the same product category
PROS - different features appeal to different customer segments, increase shelf space, capture larger overall market share
CONS - potentially lower the market share of each brand, higher costs

48
Q

New Brands, P + C

A

-new brand used in a new product category
PROS - diversification of portfolio, can create distinct positions
CONS - spreading resources too thin

49
Q

Factors to Consider when Setting Price

A
  1. Price Ceiling - customer’s perceptions of value
  2. Internal Factors - marketing objectives -> positioning, pricing objectives (survival, profit, maximization, etc. coordinate price with the other 3 P’s
  3. External Factors - nature of demand > market type, price elasticity, competitors, environment > economic conditions, resellers reactions, gov’t restrictions
  4. Price Floor - product costs
50
Q

Approaches to Setting Price

A
  1. COST-BASED - set price based on costs for producing, distributing + selling product plus a fair rate of return for effort and risk - ignores demand + competition
  2. VALUE BASED - uses buyer’s perceptions of value rather than seller’s costs to set price
    good value pricing - offer just the right combination of quality + service at a fair pirice
    value added pricing - developing features that add value to the market offering (differentiate + offer higher prices)
51
Q

Market Skimming Prices

A

set a high initial price for a new product to “skim” revenues layer by layer from the market

52
Q

Market Penetration Pricing

A

set a low initial price in order to penetrate the market and get a large volume of sales

53
Q

Product Mix Pricing Strategies

A
  1. PRODUCT-LINE PRICING - setting price steps among products in a product line, based on cost differences and customer perceptions of value
  2. OPTIONAL-PRODUCT PRICING - pricing of optional or accessory products along w/ a main product
  3. CAPTIVE-PRODUCT PRICING - setting a price for products that must be purchased along w/ the main product
  4. BY-PRODUCT PRICING - setting a price for by-products to make the main product’s price more competitive or cover the costs of disposal
  5. PRODUCT BUNDLE PRICING - setting one price for a set of products
54
Q

PRICE ADJUSTMENT STRATEGIES

A
  1. discounts + allowances

2. promotional pricing

55
Q

Segmented Price Strategies

A

-selling at different prices where that difference isn’t based on differences in cost
1. customer-segment (ex. student senior)
2. product-form (diff prices for diff versions of product - special edition leafs oreos)
3. location-pricing (diff prices for hockey tickets)
4. time pricing (peak pricing for electricity)
CONDITIONS
-low price segments can’t resell to higher priced segments
-must reflect differences in buyer perceived value or demand
-market must be segmentable
-pricing must be legal

56
Q

Psychology of Pricing (price-quality, odd pricing + number effects, reference price)

A

PRICE-QUALITY- higher-priced products perceived as higher quality, discounted products = problems
ODD PRICING - fractional prices suggest that goods are marked at the lowest possible price
REFERENCE PRICE - prices buyers carry in theIr minds and refer to when they look at a product

57
Q

IMC

A

-integrate/coordinate communications to deliver a clear, consistent and compelling message
PROS - prevents conflicting messages, reinforces message through multiple channels, creates synergy
CONS - expensive, hard to execute/coordinate, difficult to measure the effectiveness of each effort, too much can be a bad thing

58
Q

Promotional Objectives

A

inform - describe product, suggest uses, advertise, etc
persuade - change perceptions, encourage switching, encourage purchase
remind - maintain awareness, remind where to buy

59
Q

Push v Pull Marketing Strategy

A

look at notes

60
Q

Element 1 of PM - Sales Promotion

A

-activities that offer direct inducement to purchase
-consumer sales promotion - free samples, contests, sales, sweepstakes, rebates
trade promotion - discounting, free goods, push money, display allowances
PROS - can stimulate quick increase in sales, fast ROI
- attract attention
- strong incentive to purchase, encourages trial
-boosts staggering sales, easy to track effectiveness
CONS - short lived, people may wait for sales
-stockpiling, danger of harming brand
-not sustainable source of differentiation

61
Q

Element 2 - Public Relations

A

-activities to engage + build goodwill w/ the public w/o immediate sales intentions
PROS - generate buzz around a brand
-wide reach + able to reach elusive audiences
-more credibility, effective not “ad”
CONS -little control, disingenuous, measurement difficulties

62
Q

Element 3 - Direct Marketing

A

-engaging directly w/ targeted individual customers to obtain immediate respponse + build lasting customer relationships
PROS -interactive, well suited for building long-term relationships
-efficient - low cost/fast
-immediate communication
CONS - come across as spam
-requires updating

63
Q

Element 4 - Personal Selling

A

-face2face contact w/ customers to persuade + inform
PROS - interactive
CONS - long term commitment, difficult to manage, high costs

64
Q

Objectives

A
  1. Informing - build primary demand, use which introducing a new product
  2. Persuading - build selective demand (convince the target market), engage customers & create brand loyalty, attachment
  3. Reminding - maintain customer relationship, mature products
65
Q

Major Advertising Decisions

A

Objective setting > Budget decisions > Message Decisions - Media decisions > Advertising evaluation

66
Q

Budget Setting Methods

A

AFFORDABLE - what management thinks it can afford
AD/SALES - % of of sales or % of unit sales price
COMPETITIVE PARITY - match competitors
TRIAL + ERROR - half of advertising is waster - learn something from it
OBJ + TASK - set the budget based on what objectives + tasks should be accomplished by promotion

67
Q

Message Execution - first 6

A

SLICE OF LIFE - typical ppl using the product in a normal setting - sol’n to everyday problems
LIFESTYLE - shows how product fits w/ a particular lifestyle
FANTASY - creates a fantasy around the product/its use
MOOD/IMAGE - builds a mood/image around the product
TESTIMONIAL - everyday consumer endorsing the product
MUSICAL - singin bout the product

68
Q

Message Execution - last 6

A

PERSONALITY SYMBOL - Character that reps the product
TECH EXPERTISE - shows company’s expertise in making the product
SCIENTIFIC EVIDENCE - evidence that the brand is better or better liked than others
INFORMATIONAL - present information in a straightforward manner
COMPARATIVE - company is directly/indirectly compared w others

69
Q

Channel Benefits + Cons

A

-greater efficiency in making products available
-specialization allows for economies of scale
-create value for the customers + competitive advantages for the channel members
CONS - harder to control, may generate conflict/cannibalization

70
Q

Number of Intermediaries

A

DIRECT- no intermediaries
INDIRECT- one or more intermediaries
MULTICHANNEL- 2 or more different types of channels

71
Q

Channel Conflicts - V,H

A

-disputes between different levels in the same marketing channel
V- different channel levels
H- same channel level

72
Q

Managing Structure - Managing Channel Conflict

A

make sure the channel:

  • isn’t too opportunistic
  • channel partners must earn fair returns
  • avoid long-run agreements
  • be cautious of selling through restrictive channels
  • competing channels shouldn’t be competing for the same type of customer
73
Q

Vertical Marketing Systems - Managing Channel Conflict

A
  • producers, wholesalers + retailers act as a unified system

- BENEFITS: greater control, less conflict, economies of scale

74
Q

GRAHAM’S PHARMACY

A

-selecting a customer segment to target

75
Q

CLEAN EDGE RAZOR

A

-positioning a new product to be launched in the high-end razor market

76
Q

CMHA KINGSTON

A

-choosing a branding strategy

77
Q

FAB

A

-choosing a communication strategy for their summer camps (media + message strategy)

78
Q

STONE CITY ALES

A

-choosing a distribution plan to grow their beer company

79
Q

Marketing management philosophies

A

production - product - selling - marketing - societal marketing

80
Q

Customer Relationship Groups

A 
High Profit, Short Term - Butterflies
- high profit potential, good fit
High Profit, Long Term - True Friends 
- highest profit potential, good fit
Low Profit, Short Term - Strangers
-lowest profit potential, little fit
Low Profit, Long Term - Barnacles
-low profit potential, limited fit
81
Q

Customer Lifetime Value

A

-value of all the purchases of a particular product/brand/retailer that a customer will make over a lifetime

82
Q

Share of Customer

A

-portion of customer’s purchasing in the product category

83
Q

Customer Equity

A
  • total combined CLV of all customers (current + future)

- future oriented

84
Q

MICROenvironment

A

the company, suppliers, marketing intermediaries, competitors, public, the company

85
Q

MACROenvironment

A

demographic forces, economic forces, natural forces, technological forces, political forces, cultural forces

86
Q

4 P’s

A

Product
Price
Place
Promotion

Marketing (1 decks)

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