marketing Flashcards
market segmentation
dividing a market into distinct groups of buyer who have different needs characteristics or behaviours and who might require separate marketing strategies or mixes
market segment
a group of consumers who respond in a similar way to a given set of marketing efforts
market targeting
evaluating each market segments attractiveness and selecting one segment to serve
4Ps of the marketing mix
product (variety quality design)
price (list price discounts allowances)
promotion (advertising sales promotion)
place (channels coverage)
segmentation and targeting
demographics (advertise sensors age gender etc)
geographic (mcdonald’s different food)
psychographic (lifestyle, panera veganism, sustainable, clean food)
behavioural (mcdonald’s, what you just ordered, daytime, weather, occasions –> pumpkin spice Latten. Around halloween)
difference psychographic and demographic—> blurry, psycho is everything related to us, personality
customer journey
from prepurchase to purchase to post purchase to feedback all influenced by previous stages
owned by brand partner customer and social factors
channels to engage with customer in post purchase: feedback, video tutorials, good restive customer service
streamlining the customer journey
loyalty loop: buy enjoy advocate bond buy again
normal: consider stage between bond and buy again
new journey: compresses consider step shortens or eliminate evaluation step
—> bring customer into loop and lock them in
bow tie funnel
- create helpful timely and convenient buyer journey
- continually offer the best customer experience
acquisition cro: starting from feedback loop, engage, convert, nurture and attract
retention cro: turn customer from adopter to loyalist to advocator to brand ambassador
customer journey segmentation
segment and target customer along purchasing process
- blind tasting, observation, field experiment, direct questionnaire, cookies
- look at touchpoints on journey
types of touchpoint shopper
multiple touchpoint: valuable segment that should be served through multiple touchpoints including mobile, invest in sea
pragmatic online shoppers: provide attractive online assortment and efficient journey
online to offline shoppers: growing segment that should be served online in search and offline in purchase phase. provide attractive online assortment
extensive online shoppers: decreasing but valuable segment. invest in sea and try to keep customer in own online store. mobile device important
store focused shoppers: still large but less valuable segment. invest in in store experience
consumer cultures
-escapism
-brand communities (interact with subculture as insiders)
-conspicuous consumption and group inclusion
—> WPS increases after rejection from aspirational brand louis vuitton (brand consumer relates to as ideal self concept) or when salesperson delivering threat und an authentic representative of the brand
difference consumer and market research
market: links consumer, customer and public to the marketer through information-information used to identify and define marketing opportunities and problems
consumer: benefits consumer welfare and quality of life for all beings affected by consumption across the world
neuromarketing
- predict and potentially manipulate consumer behaviour and decision making
- gain insights into customers motivations preferences and decisions which help inform creative advertising product development pricing and other marketing areas
—> eyetracking in advertising
rational decision making process
- define the problem
- identify all relevant decision criteria
- weight criteria
- generate alternatives
- rate each alternative on each criteria
- compute the optimal decision
bounded rationality
rationality of individuals is limited by
- the information they have
- cognitive limitations of their minds
- the finite amount of time they have to make decisions
human decision making is a trade off between two goals: decision accuracy and cognitive effort
rather than seeking optimal solution people aim to find a satisfactory solution with a feasible amount of cognitive effort
two systems to make decisions
fast and slow thinking
- intuition (fast automatic emotional)
- reasoning (slow controlled effortful flexible neutral)
stroop effect (easier to name colour if the word red is indeed red and not yellow)
strategy based errors
compensatory vs non compensatory decision rule
- compensatory (e.g. by expected utility das beste an sich)
- non-compensatory (e.g. elimination by aspects der und der is am wichtigsten)
association based judgement errors
representativeness
-tendency of people to predict the outcome that appears most representative of the evidence. Rather than relying on the logic of statistical prediction, people judge the frequency or probability of the extent to which it resembles a typical case in their minds
cognitive biases affecting consumers
loss aversion bias (more sensitive to losses than to equally strong gains) -> loyality programs,you will Loose your points soon People will buy something to keep points and gain new, will ne runtr gestuft in Programm -> people see downgrading as very bad will buy
status quo bias (while choosing alternatives individuals tend to stick to status quo)
availability bias (wenn info available judged man das als more likely to happen ) -> will never klick on qualityseals but they are there so youjudge the page as high quality because the Event that it is high quality is more likely to happen
overconfidence
status quo bias
-reinforce (customer retention)
—> increase prices marginally, auto-renewal for subscriptions
-overcome (customer acquisition)
—>switching as easy and frictionless as possible, show what customers miss out if they don’t switch
Cognitive biases affecting data
•Centre stage effect: choose what is in the middle
•Anchoring: choose one price as anchor (might be a high one) automatically
perceive other as cheap cause anchor is high price, even though price might be normal
•Sunk costs: stay in movie theatre even though movie is bad because you already paid for it
•Zero risk bias: prefer zero risk over more risk but more value
-> moneyback garantuee
- Bandwagon effect: do smth because others do it
- Endowment effect: value something more if you can see it in show rooms like ikea
How marketers play with consumers minds
touch
taste
How marketers play with consumers minds - touch
- Humans touching humans: Tips increased after a waitress touched a customer in a restaurant, even though her service was not judged any better
- Products touching products: If a “disgusting” product had physical contact to a “normal” product, consumers evaluated the “normal” product as less desirable because they believed that the “disgusting” product transferred its offensive properties
- Humans touching products: People liked a product less and were less likely to buy it if another shopper had touched it earlier
how marketers play with consumer minds - taste
• Participants rated several pairs of orange juice regarding differences in taste. The color and actual taste (sweetness) of two pairs of orange juice was manipulated:
o Pair 1: Same taste – different color
o Pair 2: Same color – different taste
o Result: Pair 2 was rated as being more similar than Pair 1 indicating that color dominated taste in the perceptual tasks.
• Participants sampled five red wines of which two were identical.
o The two identical wines were presented at different prices: $90 vs. $10.
o Result: Increasing the price of a wine increases peoples’ perceived pleasantness as well as blood-oxygen-level-dependent activity in medial orbitofrontal cortex
environmental cues in marketing
- Design Cues (Logos, Color schemes, Furnishings)
- Social Cues (Crowding, Employee characteristics)
- Ambient Cues (Music, Scents, Noise)
environmental psychology approach
• Stimulus:Environmental Stimuli
o Design Cues, Ambient Cues, Social Cues
• Organism: Primary Emotional Responses
o Pleasure, Arousal, Dominance (Inferiority)
• Response: Behavioral Responses o Approach (Desire to tay in the store, Look around & explore,Communicate with others) o avoidance (Desire to get out of the store, Avoid moving, interacting, & communicating
retail environmental cues
- Number of progress markers: Shoppers walk faster (slower) when fewer (more) markers are placed along the walking path. Recall and recognition of objects along the way was lower (higher) when shoppers walked faster (slower).
- Nature of progress markers: The effect of the number of progress markers diminished when the markers are unrelated to the goal.
- Goal Gradient Theory: Fewer (more) marker signal that the goal (e.g., the check-out) is closer (further away) which increases (decreases) the motivation (speed) to reach it.
priming
- activating particular representations or associations in memory just before carrying out an action or task
- by subliminal primes (individual not aware) or supraliminal primes (aware but unaware of influence)
different ways of leveraging customer feelings
(1) Highlight the risk of not buying
(2) Describe what customers will get when buying
(3) Sell on jealously – show how you can make people better
(4) Sell altruism – explain how a consumer‘s decision can help others
(5) Highlight the consequences of missing out
(6) Emphasize ways in which you help reach goals
innovative branding strategies
- Emotional content (p&g video for moms)
- Pressing issues in society (burger king using bullying and making aware of anti bullying)
- Occasion as the 5th element of the marketing mix (Nutella packaging for chinas new years)
- Benefit from popularity of other brands afdvertisement activates speech assistant)
- Comparing yourself to competitors (pepsi and cola)
- Stick to your brand positioning (miele)
