Marketing Flashcards

Question 1

Q

What are the 3 Cs

Answer

A

customers,
company and
competitors

Question 2

Q

What is marketing?

Answer

A

involves understanding consumer needs, developing the right products or services to meet those needs, determining the best ways to price, distribute, and promote them, and fostering relationships with customers for long-term loyalty and satisfaction.

It’s like a bridge that connects what a company has to offer and what the consumers want or need.

Question 3

Q

To whom should marketing efforts be oriented?

Answer

A

Orientation: Should be both internal and external. I.e within the organisation and outside the organisation

Question 4

Q

What should the main goal of marketing be?

Answer

A

To create Profit through customer satisfaction. (relationship, lifetime value)

Question 5

Q

How does marketing achieve its, goal to create profit through customer satisfaction?

Answer

A

Determine the NEEDS and WANTS of customers. Deliver the desired benefits more effectively than competitors

Question 6

Q

What is the definitiopn of marketing according to AMA

American Marketing Association

Answer

A

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

This includes product development, promotion, distribution, and pricing.
It’s about creating value for multiple parties: This includes not just customers and clients, but also partners and society at large. In other words, good marketing should create value in a way that benefits all stakeholders.

Question 7

Q

What does “customer is king (key)” mean

Answer

A

Customer-Centricity
Value Creation
Customer Relationships
Customer Feedback
Personalization

Customer-Centricity: A customer-centric business views everything from the customer’s perspective. This means understanding their needs, wants, and preferences, and then designing products, services, and experiences to meet those requirements.

Value Creation: Customers are looking for value in the products and services they buy. This value can come in many forms, such as high-quality products, excellent service, convenience, or even a unique brand experience. The role of a business is to create and deliver this value.

Customer Relationships: The relationship with a customer doesn’t end after a single transaction. Businesses should strive to build long-term relationships with customers, encouraging loyalty and repeat business. This involves excellent customer service, consistent engagement, and regular efforts to exceed customer expectations.

Customer Feedback: Customers are a valuable source of feedback and can provide insights to help improve products, services, and overall business operations. Listening to customers and acting on their feedback is crucial for continuous improvement.

Personalization: Every customer is unique, and personalizing your products, services, or interactions to fit individual customer needs can greatly enhance the customer experience and create additional value.

Question 8

Q

What is Customer Lifetime Value (CLV / CLTV)

Answer

A

is a prediction of the NET PROFIT attributed to the entire future relationship with a customer. In other words, it quantifies the total value of a customer to the business over the lifespan of their relationship.

Question 9

Q

What is the impact of CLV on focus of businesses?

Answer

A

encourages businesses to shift their focus from quarterly profits to the long-term health of their customer relationships.

Question 10

Q

What is the formula for CLV

Answer

A

CLV = (Average Purchase Value x Purchase Frequency) x Average Customer Lifespan

Question 11

Q

Why is Marketing Strategy Key to Long-Term Financial Performance?

Answer

A

Enables companies to grow market size (by new products & services)
Grow market share (by delivering better products than the competition & retaining)
Obtain better prices and margins (by appealing to high-margin customers)
Reduce costs (by Word of mouth, relationships and loyalty )

Question 12

Q

Where can we apply marketing?

Answer

A

consumer products
services, including financial services
consulting
industrial products
media and entertainment
education
sports
politics
non-profit

Question 13

Q

How are companies changing the way they perceive customers?

Answer

A

NOW:
- they are seen as people from whom we gain insights and with whom we can test our new products.
- People who co-create products, services and ideas
- People who influence others

Traditionally, customers were viewed as one-time transactions, focusing on the immediate sale without giving much thought to the customer’s experience or future.

Question 14

Q

What is the main question answered in Marketing Strategy?

Answer

A

” “where do we want to go?”

It Utilises the STP process. Segmentation, Targeting and Positioning

Question 15

Q

What is STP in full?

Answer

A

Segmentation, Targeting and Positioning

Question 16

Q

What is segmentation?

Topic: marketingStrategy:segmentation

Answer

A

Categorizing the market into different groups based on various factors such as demographics, psychographics, behaviour, geography, etc.

The goal is to identify distinct subsets of customers who behave similarly or have similar needs. Each segment should be distinct, substantial, accessible, stable, and actionable.

Question 17

Q

What is the main goal of segmentation

Topic: marketingStrategy:segmentation

Answer

A

The goal is to identify distinct subsets of customers who behave similarly or have similar needs.

Each segment should be distinct, substantial, accessible, stable, and actionable.

Question 18

Q

What is the criteria when doing segmentation?

Topic: marketingStrategy:segmentation

Answer

A

Each segment should be
- distinct,
- substantial,
- accessible,
- stable, and
- actionable.

Question 19

Q

What are the reasons for segmentation?

Topic: marketingStrategy:segmentation

Answer

A

Cater to different needs of different demographics, which cannot be achieved with one product.
Competitive advantage in demographics that are better suited to our strengths or less well served by our competitors.
To utilise limited availiable resources on the customers with the highest return on marketing.

Question 20

Q

What are the four levels of Market Segmentation?

Topic: marketingStrategy:segmentation

Answer

A

Mass marketing (undifferentiated marketing)
Micromarketing
Niche Marketing
Individual Marketing

The “levels of market segmentation” refer to the depth or specificity with which the market is segmented. Here’s how you can explain the four levels

Question 21

Q

What is Mass marketing (undifferentiated marketing)?

Topic: marketingStrategy:segmentation

Answer

A

Is a strategy in which a business decides to ignore market segment differences and appeal to the entire market with one offer or one strategy.

Question 22

Q

What is Micromarketing?

Answer

A

is a marketing strategy in which marketing and/or advertising efforts are concentrated on a small group of tightly targeted consumers.

Question 23

Q

What is local marketing?

Answer

A

also known as “neighborhood marketing” or “local store marketing (LSM)”, is a marketing strategy that businesses use to market their products or services to consumers within a specific geographic area. This could be a city, a neighborhood, or even a specific store location.

Question 24

Q

What are examples of Micromarketing?

Answer

A

Local Marketing
Individual Marketing

Question 25

Q

What are xtics of local marketing?

Answer

A

Tailored to the needs of trading areas, neighbourhoods, and stores
Portfolios are tailored to match local demand
-

Question 26

Q

What are potential risks from Local marketing

Answer

A

Higher costs of manufacturing (due to reduced economies of scale)
Require better logistics: Local marketing could demand a more sophisticated logistics and distribution system.dealing with multiple local markets, each with its own unique product variations can complicate distribution
Diluting brand image: When a company adjusts its products, services, or messaging to appeal to different local markets, there’s a risk that the overall brand image could become diluted or inconsistent.

Question 27

Q

What is Niche Marketing?

Answer

A

Niche marketing is a targeted marketing strategy that focuses on a unique segment of a market. Instead of marketing to everyone who could benefit from a product or service, this strategy focuses exclusively on one group—a niche market—or demographic of potential customers who would most benefit from the offerings.

Question 28

Q

What are xtics of niche marketing?

Answer

A

Narrowly defined customer with a distinct set of value requirements
The market is Small in volume but willing to pay a premium
## Less likely to attract other powerful competitors

Question 29

Q

What are examples of niche marketing?

Answer

A

## Internet Niching

Question 30

Q

What are some advantages of Internet niching as a type of niche marketing?

Answer

A

Lower distribution cost so you can offer more
With a Larger offering, you can tap into minority tastes
If you Aggregate enough minority tastes, you can create new markets
Niches considered too small may become profitable

Question 31

Q

What is Individual Marketing?

Answer

A

also known as one-to-one marketing or personalized marketing, is a marketing strategy in which a company tailors its products, services, and promotional efforts to meet the needs and preferences of individual customers.

This approach goes beyond basic personalization, such as including the customer’s name in an email, and involves using data and insights about the customer to provide a highly personalized and relevant experience. This could involve customizing the features of a product, personalizing the content of marketing messages, or offering individualized recommendations based on past behavior.

Question 32

Q

What are the xtics of Individual Marketing

Answer

A

Segments of one. each customer treated as a segment
One-to-one marketing. e.g personalized emails, customized product recommendations, or individualized customer service
Mass customization of products
more feasible with the growth of digital technology. Data analytics makes it easier to target.

Question 33

Q

TIP: they are four

What categories (bases) can be used for segmentation?

Answer

A

Geographic - Nations - States, Regions, Counties, Cities, Neighborhoods
Demographic - Age, Gender, Family lifecycle, Life stage, Income, Generation, Social class
Psychographic - Segmentation based on traits, values, or lifestyles; AIO factors that describe lifestyles: e.g. Activities, Interests, Opinions
Behavioral - Benefits sought -User status, User rate, Loyalty status, Online behaviour

Question 34

Q

What is Claritas PRIZM segmentation systems?

Answer

A

is a widely used lifestyle segmentation system that classifies US neighbourhoods into 68 unique segments based on demographic and behavioural characteristics, providing a comprehensive picture of consumers’ likes, dislikes, lifestyles, and purchase behaviours.

is a form of Geo-demographic Segmentation

Question 35

Q

What does PRIZM stand for?

Topic: marketingStrategy:segmentation:BehavioralSegmentation

Answer

A

PRIZM stands for Potential Ratings Index by ZIP Market

is developed by Claritas, a company specializing in marketing services and consumer segmentation.

Question 36

Q

What are AIO factors?

Answer

A

Activities
Interests
Opinions

Question 37

Q

What is meant by “DECISION ROLES” in Behavioral Segmentation for B2B?

Topic: marketingStrategy:segmentation:BehavioralSegmentation

Answer

A

In the context of B2B (Business-to-Business) environments, decision roles in behavioural segmentation often relate to the various people within an organization who influence purchasing decisions.

Question 38

Q

What are the DECISION ROLES in Behavioral Segmentation for B2B

Topic: marketingStrategy:segmentation:BehavioralSegmentation

Answer

A

Initiator
Gatekeepers
Influencers
Buyers
Users

Question 39

Q

What is the role of the Initiator role in Business purchasing process?

Topic: marketingStrategy:segmentation:BehavioralSegmentation

Answer

A

These are individuals who identify a business need or problem that could be addressed by a product or service. They are typically the ones to start the purchasing process.

Question 40

Q

What is the role of the GateKeeper role in Business purchasing process?

Topic: marketingStrategy:segmentation:BehavioralSegmentation

Answer

A

These individuals control access to the rest of the decision-making unit. They might filter information, controlling what reaches the other roles in this list. They could be executive assistants, departmental secretaries, or anyone else who has control over the flow of information.

Question 41

Q

What is the role of the Influencer role in Business purchasing process?

Topic: marketingStrategy:segmentation:BehavioralSegmentation

Answer

A

Influencers don’t make the final decision but have significant sway in the purchasing process. They might provide input based on their expertise or perspective, which can impact the decision-making process.

Question 42

Q

What is the role of the Buyers role in Business purchasing process?

Topic: marketingStrategy:segmentation:BehavioralSegmentation

Answer

A

These individuals have the authority to execute or finalize the purchasing process. They typically handle the contractual and transactional elements of the purchase.

Question 43

Q

What is the role of the Users role in Business purchasing process?

Topic: marketingStrategy:segmentation:BehavioralSegmentation

Answer

A

These are the individuals who will be using the product or service once it’s been purchased. Their feedback and experience can influence future purchasing decisions.

Question 44

Q

What are the benefits of Behavioural segmentation?

Topic: marketingStrategy:segmentation:BehavioralSegmentation

Answer

A

Feedback: Customer behaviour reveals which benefits, features, values, use cases or problems influence their purchase decisions
Personalisation: Grouping customers based on their desired benefits to personalize marketing efforts accordingly
** Increase conversation**: Behavioral segments by customer journey stage allow you to increase conversion at every stage
Improvement: Identify stages with obstacles and opportunities for improvement

Question 45

Q

What are some examples of behavioural variables to consider?

Topic: marketingStrategy:segmentation:BehavioralSegmentation

Answer

A

Occasions (night, day, …)
User status (regular, non-user, …)
Usage rate (light, medium, or heavy)
Adoption status (early adopter vs follower, …)
Loyalty status
Attitude (enthusiastic, indifferent, hostile, …)

Question 46

Q

What are the characteristics of Effective segmentation criteria?

Topic: marketingStrategy:segmentation

Answer

A

Measurable - You can quantify it
Substantial - It occurs enough to be an influencing factor
Accessible - You can collect data about it
Differentiable - You can tell it apart from some other occurrence
Actionable - You can do something about it

Question 47

Q

What does the term DESCRIPTORS mean in segmentation?

Topic: marketingStrategy:segmentation

Answer

A

For each needs-based segment, these are the variables (demographics, etc.) which make the segment distinct and identifiable (actionable).

Question 48

Q

What is Targeting?

Topic: marketingStrategy:Targeting

Answer

A

In short, segmentation is about identifying potential customer groups, while targeting is about deciding which of these groups to pursue actively. Both steps are crucial in helping a company to direct its marketing resources effectively.

During this step, the company evaluates the attractiveness of each segment based on factors like segment size, growth potential, competition, and alignment with the company’s overall objectives. The company then selects one or more segments to target with its marketing efforts.

Question 49

Q

What critical question is answered by Targeting

Topic: marketingStrategy:Targeting

Answer

A

After the market has been segmented, the next step is to decide “which of these segments to focus on?”.

Question 50

Q

What frameworks are available for making targeting decisions?

Topic: marketingStrategy:Targeting

Answer

A

SWOT analysis
3Cs analysis. (Customer, company, competitors)

Question 51

Q

Describe each of the Cs in the 3Cs

Topic: marketingStrategy:Targeting

Answer

A

Company: Analyze the company’s strengths and weaknesses. Understand your product/service, value proposition, and what differentiates you from the competitors. This analysis will help in determining if the company has the capacity to serve the target market effectively and efficiently.
Customers: Understanding the customer is key to effective targeting. It’s important to analyze their needs, preferences, behaviours, and purchase patterns. This will help in determining which segment(s) align best with the company’s offerings.
Competitors: Understanding the competitive landscape in the target market is crucial. Knowing what your competitors are offering, their strategies, strengths and weaknesses, can help in identifying gaps in the market that your company could fill. This can also inform your unique selling proposition (USP) for the chosen target market.

Question 52

Q

Name 5 ways/patterns to enter into a segment

Topic: marketingStrategy:Targeting

Answer

A

Single-Segment Concentration
Selective Specialization
Product Specialization
Market Specialization
Full Market Coverage

Question 53

Q

What is Single-Segment Concentration?

Topic: marketingStrategy:Targeting

Answer

A

In this pattern, the company selects a single segment of the market and focuses all its efforts on serving that segment. This is often used by smaller companies with limited resources or by companies with highly specialized products or services.

One segment => one product

Question 54

Q

Name 5 advantages of using Single-Segment Concentration?

Topic: marketingStrategy:Targeting

Answer

A

Establishes strong market presence
Develops Significant knowledge of the segment’s needs
Enables specialisation of production, distribution and promotion
High ROI through segment leadership

Question 55

Q

What are possible disadvantages of using Single-Segment Concentration?

Topic: marketingStrategy:Targeting

Answer

A

Vulnerable Disruption or invasion of competitor

Question 56

Q

What is Selective Specialization?

Topic: marketingStrategy:Targeting

Answer

A

Here, the company selects a number of segments, each objectively attractive and appropriate, and develops a different marketing approach for each. This is a risk-spreading approach as it diversifies the company’s activities.
This multi-segment strategy has the advantage of diversifying the firm’s risk

Many segments => a product for each

Question 57

Q

What are advantages of Selective Specialization?

Topic: marketingStrategy:Targeting

Answer

A

diversifying the firm’s risk

Question 58

Q

What is a disadvantage of Selective Specialization

Topic: marketingStrategy:Targeting

Answer

A

Higher costs (e.g. distribution)

Question 59

Q

What is Product Specialization?

Topic: marketingStrategy:Targeting

Answer

A

The company makes** a certain product** that it sells to several segments. The firm gains a strong reputation in the specific product area, and any enhancement in the product directly attracts all segments that are interested in this product.

one product => many segments

Question 60

Q

What are advantages of Product specialisation?

Topic: marketingStrategy:Targeting

Answer

A

Allows to build a strong reputation in the specific segment market

Question 61

Q

What are disadvantages of Product specialisation?

Topic: marketingStrategy:Targeting

Answer

A

Product/service offering may be displaced by an entirely new technology

Question 62

Q

What is Market Specialization?

Topic: marketingStrategy:Targeting

Answer

A

Here, the company concentrates on serving many needs of a particular customer group. The firm gains a strong reputation in serving this customer group and becomes a channel for further products the customer group can use.

one market => many products

Question 63

Q

What are advantages of Market Specialization?

Topic: marketingStrategy:Targeting

Answer

A

Allows to build a strong reputation in serving this customer group
Potential to become a channel for additional product offerings for that customer group

Question 64

Q

What are disadvantages of Market Specialization?

Topic: marketingStrategy:Targeting

Answer

A

Customer group may suffer budget cuts or shrink in size

Answer 65

A

In this pattern, the company attempts to** serve all customer groups** with all the products they might need. Large firms typically follow this path. Coverage can be achieved in two broad ways: through a differentiated marketing strategy (differentiating the market offering for each segment) or an undifferentiated marketing strategy (deciding to ignore market segment differences and go after the whole market with one offer).

Many groups => one(undifferentiated) or Many (differentiated) products to per group

Answer 66

A

is When
- a Product eats up sales of other product(s) by the same company
- or New product aimed at a “new” target segment attracts customers from another segment that used to buy existing products

Very problematic when a new product is lower-margin

Answer 67

A

Competition: If I don’t introduce a new product and eat the old product’s customers, competitors will

Answer 68

A

Cannibalization

Answer 69

A

Inter-segment Synergies: These occur when the approach to serving two or more market segments complements each other and leads to benefits that wouldn’t be possible if the segments were targeted separately. For example, a clothing company could target both the men’s and women’s markets. The synergies could include shared production facilities, bulk purchasing of raw materials, a unified brand message, and cross-selling opportunities.
Inter-segment Conflict:
On the other hand, conflicts can arise when the approach to serving one segment negatively impacts another. Using the same clothing company example, it might create a conflict if the company’s edgy marketing campaign for its women’s line offends its more conservative men’s segment, causing a decrease in sales. Similarly, if the company starts to pay more attention to one segment at the cost of the other, it might lead to neglect and dissatisfaction among the less-favoured segment’s customers.

Answer 70

A

a way to describe our target segments

Answer 71

A

Is the “act of designing the company’s offering and image so that they occupy a meaningful and distinct competitive position in the minds of the target market” (Kotler, 1997)

Answers the question: Where do you intend to be in the target customers’ minds relative to the competition?

Answer 72

A

A Frame of reference (category membership) - who are we grouped with/who is our competion
Identifying the ideal points-of-parity and points-of- difference - how are we different and how are we similar?

Answer 73

A

Everybody in the organization should understand the customer-perceived value underlying the brand positioning as a basis for their decisions
Positioning results in the successful creation of a customer-focused value proposition (the reason why they should buy from you)

Answer 74

A

These are the attributes or functionalities that a product shares with other products in its category or market. It’s what consumers would expect from any product in the category. For example, in the smartphone market, features like making calls, sending text messages, accessing the internet, and taking photos could be considered points of parity.

Answer 75

A

These are the attributes or functionalities that a product shares with other products in its category or market. It’s what consumers would expect from any product in the category. For example, in the smartphone market, features like making calls, sending text messages, ac

Answer 76

A

These are the unique, distinctive features or benefits that make a product stand out from its competition. They are often the key elements of a product’s value proposition. For example, an exceptional camera quality might be a point of difference for a particular smartphone in a crowded market.

Answer 77

A

Relevance
Distinctivenes
Believability

Desirability: is concerned with “Will customers see these differences as valuable and worth paying for?” Make sure your PODs matter to your target audience.

Answer 78

A

Feasibility
Communicability
Sustainability

Deliverability: is concerned with “Can your company deliver on these differences consistently”? There’s no point in highlighting differences that you can’t consistently meet.

Answer 79

A

Present separately (e.g., different campaigns)
Leverage equity of another entity
Redefine the relationship

Present Separately: By presenting each attribute in separate marketing campaigns, companies can communicate each attribute clearly and powerfully without confusing the message. For example, a fast-food restaurant might run one campaign emphasizing the taste of its food and a separate campaign emphasizing its healthy menu options.
Leverage Equity of Another Entity: Sometimes, it can be helpful to bring in another brand to bolster credibility. This is common in co-branding or partnership scenarios where one brand’s strength can offset a perceived weakness of another. For example, a high-end designer might partner with a low-cost retailer to create a line of affordable but high-quality fashion, leveraging the designer’s reputation for quality to offset the retailer’s reputation for affordability.
Redefine the Relationship: This strategy involves breaking down the consumer’s perceived negative correlation by educating them or redefining the relationship between the attributes. This could be through demonstrating how your product is an exception to the rule or how the perceived trade-off does not exist in this instance. For example, a company might launch a marketing campaign showing that their product is both cost-effective and high quality, challenging the notion that quality always comes at a higher cost.

Answer 80

A

Perceptual maps are visual diagrams or graphs used in marketing to display the perceptions of customers or potential customers visually. Typically, the position of a product, product line, brand, or company is displayed relative to their competition.

Answer 81

A

Positioning: How do consumers perceive our brand/product relative to competitors? Where do we stand in the market?
Market Gap Identification: Are there any gaps or unoccupied spaces in the market that we could potentially fill with a new product or brand?
Competitive Analysis: Who are our closest competitors from a consumer perception standpoint?
Consumer Needs: What attributes or factors do consumers care about most when choosing a product in our category?
Brand Health: Has the perception of our brand improved or deteriorated over time?
Impact of Marketing Activities: Have our marketing activities shifted consumer perceptions as intended? Or Evaluating the success of positioning or repositioning strategies.
Targeting: Are we effectively reaching and resonating with our target market segment(s)?
Product Development: What product attributes should we consider improving or adding based on their importance to consumer choice? Or What attributes do customers use to differentiate between competing products?

Answer 82

A

A positioning statement in marketing is a brief description of a product, service, or brand and its target market, designed to carve out a place in the mind of the target audience. The purpose of a positioning statement is to guide the key marketing and advertising decisions, ensuring that the communications are consistent and compelling for the target audience.

Answer 83

A

A positioning statement typically includes the following elements.

Target Audience: The specific group of consumers at which the product or service is aimed.
Brand: The name of the brand
Market Definition: This refers to the market in which the product or brand competes. This could be a specific category (like “luxury sedans” in the automobile market) or a broader market (like “personal transportation”).
Brand Promise (Unique Value Proposition): This is the key benefit that the product or service offers that is both unique to the brand and important to the customer. Point of difference
Reason to Believe: The proof points or evidence that support the brand’s unique value proposition.

Answer 84

A

Revenue and Profitability The price of a product or service directly determines the revenue and profits
Perceived Value: The price of a product or service often reflects its perceived value.
Market Positioning: Companies may choose to price their products higher than competitors to position themselves as a premium brand, or they may choose lower prices to attract more price-sensitive customers.
influence Customer Behavior Discounts, sales, and promotions can stimulate purchases, while dynamic pricing can help manage demand.
Competitive Advantage: Companies that are able to offer lower prices due to cost advantages can outcompete rivals, while those that add unique value can justify higher prices
Elasticity of Demand: Understanding how sensitive customers are to price changes (known as price elasticity of demand) is crucial. Some products are elastic (sales significantly change with price changes), while others are inelastic (sales are not significantly affected by price changes).

Answer 85

A

Price elasticity of demand illustrates the response of demand to a change in price

Elastic Demand: If a small change in price is accompanied by a large change in quantity demanded, the product is said to be elastic (or price elastic)

Inelastic Demand: If a large change in price is accompanied by a small change in quantity demanded, the product is said to be inelastic (or price inelastic).

Answer 86

A

% change in quantity
——————————–.
% change in price

Answer 87

A

Shell Petrol
Knorr soup
Barilla pasta
Sueddeutsche Zeitung
Mars chocolate bar

Answer 88

A

Petrol
Salt
Products offered by a monopoly
Tap water
Cigarettes
iPhone

Answer 89

A

Product costs: The cost of creating the product.
Competitors and other external factors: competitors’ strategies and prices
Consumer perceptions of value: high-priced items tend to be perceived as high quality

Answer 90

A

Cost-based pricing: setting a price by adding a markup to the cost it takes to produce or provide the product or service.
Competition-based pricing: Setting prices based on competitors’ strategies, costs, prices, and market offerings.
Customer-value-based pricing: prices are set based on the perceived value of the product or service to the customer rather than on the cost of production or on competitors’ prices
Penetration Pricing: setting a low initial price to attract customers and gain market share, with the expectation of raising prices later
Skimming Pricing: this strategy involves setting a high initial price for a new or unique product to “skim” maximum revenues layer by layer from those willing to pay the high price.
Loss leader pricing: A marketing strategy that involves selecting one or more retail products to be sold below cost – at a loss to the retailer – in order to get customers in the door
Customized value pricing: Is a form of price discrimination
Complementary pricing: Pricing of one product at the optimum level, regardless of cost or profit considerations, so that the demand for another product which is used with it will increase and so maximise the profits from both products together.

Answer 91

A

there’s a risk of triggering price wars.

Answer 92

A

price elasticity
deep understanding of customers and what they’re willing to pay

Answer 93

A

Penetration Pricing:

Answer 94

A

it requires the product to be distinctive enough to justify the high price.
It is Good for new or unique products and there are enough people willing to pay

Answer 95

A

Requires complex systems and big data to understand user

Answer 96

A

Dynamic/demand/real-time pricing - Different prices at different times e.g airline
Personalized pricing - Different price for different buyers

Answer 97

A

Razors and Blades:
Printers and ink
Coffee machines and coffee tabs

Answer 98

A

Neglect of Consumer Demand: This approach doesn’t take into consideration the customers’ perception of value
Disconnection from the Market: Cost-based pricing can be disconnected from the realities of the market competition.
Ignoring Product Life Cycle: A product might warrant a higher price during the introductory phase due to its novelty, whereas when it matures, competition might drive down prices.

Answer 99

A

Lack of Differentiation: If everyone is pricing based on the competition, it can result in price wars, reducing profit margins.
Overlooking Costs and Profitability: This approach might lead to prices that don’t cover costs
## Incorrect Assumptions: Competitor-based pricing relies on the assumption that competitors have correctly priced their products, which might not always be the case

Answer 100

A

Assess customer needs and value perceptions
set target price to match customer perceived value
Determine costs that can be incurred
Design product to deliver value at target price

Answer 101

A

Survival
Current Profit maximisation
Quality leadership
Maximum market penetration
## Maximum market skimming

Answer 102

A

A sufficient number of buyers have high demand
Unit costs of producing a small volume will not cancel the advantage of charging what traffic will bear.
High initial price will not attract more competitors to the market
High price communicates superior product image

Answer 103

A

Market is highly price sensitive and low prices stimulate market growth
Production and distribution costs fall with accumulated production experience
Low prices discourage actual and potential competition

Answer 104

A

Reference price
Price anchoring
9 Endings
Complicating price: confusopoly
Price transparency

Answer 105

A

Is preferred by 66% of customers
perceived as more honest
Suggests Higher Quality

Answer 106

A

It harmsrecall, takes 1/3 time longer to think about,
harms decision making, waste of time for customers & employees

Answer 107

A

increases sales in short-run (odd price communicates “sale!”), but only interesting when it reduces left-most digit (€29,99 vs. €28,99 is not helpful)

Answer 108

A

Increase spending. E.g. “free delivery from €x”, “placing scrossed out old high price next to new lower one”
increase the number of items bought. E.g. “4 for €2“vs “50cents per can“

Answer 109

A

Is Making goods/services available at:
- The right time
- The correct location
- In the correct quantity
- To the right consumer
- In a way that is better than your competitors

Answer 110

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A distribution channel is a set of firms or individuals who participate in the flow of products or services from producers to customers.

Answer 111

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Channel members collectively earn margins of 30-50% of the selling price.
Channel decisions are often structural, long-term, and sticky.
Superior channel strategy can lead to sustainable competitive advantages.
The changing role of retailers. Retailers are no longer just sales points; they’re also involved in marketing, customer service, and providing a comprehensive shopping experience. Effective channel management needs to take this into account

Answer 112

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Increasing Efficiency. E.g. reducing the number of contacts
Overcoming discrepancies - Manufacturers make narrow assortments in large quantities but customers want wide variety in small quantities. Also Spatial Discrepancies. i.e they break bulk and mix product in small qty, they transport product to areas far from mfg.
Contact efficiency - we already looked at this
Physical distribution - they get the product to various parts
Inventory: Risk reduction - we don’t have to store and distribute what we make so less risk of losing things in storage.
Sales and returns - easier for them to handle interaction with clients
Service: before and after sales
Information/market feedback

Answer 113

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Push strategy
- Directing marketing efforts to channel members to gain their cooperation
- Puts Emphasis on trade promotions

Pull strategy
- Directing marketing efforts to end consumers to gain their cooperation
- Puts Emphasis on advertising, consumer promotions

Answer 114

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Low brand loyalty
The brand choice is made in the store
Product purchase is on impulse

Answer 115

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High brand loyalty
High category involvement
Brand choices are made before trip to retail store
Consumers perceive brand differences

Answer 116

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Intensive Distribution: distribute to All intermediaries who are willing to stock and sell.
Selective Distribution: Rely on only some intermediaries who are willing to stock and sell.
Exclusive Distribution: Severely limits the number of intermediaries. E.g Sleep Number, Harley Davidson

Answer 117

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Encourages channel members to make dedicated investments in the manufacturer’s product line.
Encourages channel members to offer service to customers. E.g customisation or support.

Answer 118

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Risky for the manufacturer: All eggs in 1 basket. If something happens to the distributor in that region, then you are screwed
Reduced competition may reduce channel member’s incentive to invest and offer service. Without competition, the distributor may not be as motivated to push the product or innovate in their selling techniques.
Limited availability may lead to lost sales. Since the product is not widely available, potential customers who are not close to the exclusive distributor might choose a competing product that is more readily available

Answer 119

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Channel length refers to the number of intermediary levels (or “middlemen”) between the manufacturer and the consumer. A direct channel, often called a zero-level channel, consists of a manufacturer selling directly to the final customer. The trend towards direct selling is greatly enabled by e-commerce.

Answer 120

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A direct channel, often called a zero-level channel, consists of a manufacturer selling directly to the final customer. The trend towards direct selling is greatly enabled by e-commerce.

Answer 121

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if M<>C direct contacts are relatively small
Small number of customers
Large orders
Low order frequency (can’t visit every week for small orders, prefer fewer, larger orders) but not so clear if frequent orders are straight rebuys.
High importance to customers. If the core product is important to the customer, will make time for a dedicated sales meeting (cf. detailing in pharma).
High product customisation.
Information: When lots of information is needed, often better to go direct.

Answer 122

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Greater Control: Selling directly to consumers allows the manufacturer to have full control over the branding, pricing, and customer service.
Increased Profits: By selling directly, the manufacturer keeps all the profits as there are no middlemen to pay.
Direct Customer Relationships: Going direct helps to build a direct relationship with the customer, which can be advantageous for customer service, feedback, and future marketing efforts.
Speed to Market: It might be faster to introduce a product to the market if there are no middlemen to deal with.

Answer 123

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Logistical Complexity: Selling directly to consumers can be logistically complex and costly, especially for manufacturers used to shipping in bulk to a small number of retailers.
Established Distributor Relationships: Retailers and other channel members often have relationships with customers and knowledge of the local market that the manufacturer may not possess.
High Costs: The costs of setting up and managing a direct sales channel (especially a physical retail presence) can be very high.
Consumer Preferences: Some consumers prefer to shop in stores where they can see and feel products before they buy or where they can enjoy personal service.

Answer 124

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Transparency about availability and pricing à can increase competition (esp. if identical merchandise).
Buying process? (Can use different channels for different stages in the decision process)
More Information about customers (big data)
Easy customisation of, e.g., prices.
Reduction in impulse buying

Answer 125

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Touch and feel, see. Try before you buy.
Information and help by a person
Immediate availability
Fun, entertainment (end of dreary malls, comeback of inner-city pedestrian malls)
Low price for bulky items
Physical pick-up location (important in many places outside US)
Service

Answer 126

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Price advantage
Product information (specs, reviews, how to buy guides)
Convenience
Broad assortment

Answer 127

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Overwhelming choice
Unreliable information
Safety concerns (hacking)
Inconvenient delivery.

Answer 128

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All channels are available to the consumer and they are connected. E.g This could include services like online ordering with in-store pickup, in-store returns of online purchases, and in-store availability information online.

Answer 129

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Multichannel strategy - All channels are available but they are not integrated, while in omnichannel, All channels are available but they are inter connected

Answer 130

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Channel conflict arises when one channel member’s actions prevent another channel member from achieving its goal. This can occur among members at the same level (for example, retailer to retailer) or among members at different levels (for example, manufacturer to wholesaler). These conflicts can interfere with the smooth operation of the distribution channel and the ultimate delivery of the product or service to the end customer.

Answer 131

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Horizontal Channel Conflict: This occurs among firms at the same level in a distribution channel. For example, if two retailers are carrying the same manufacturer’s product and undercutting each other’s prices, they are engaged in a horizontal channel conflict. (Aldi vs Lidl)
Vertical Channel Conflict: This takes place between different levels within the same channel. For instance, a manufacturer and a retailer may enter into a dispute over the terms of their partnership agreement, such as a retailer demanding lower wholesale prices or a manufacturer complaining that the retailer is not investing enough in promoting its products. (Coca-Cola vs Dr. Pepper needing bottlers)
Multichannel Conflict: This arises when a manufacturer has established multiple channels that sell directly to end-users, such as selling products both through physical retailers and an e-commerce store. This can lead to conflict as each channel may compete for the same customers and undercut each other on price or service. (Online vs. Offline)

Answer 132

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Showrooming is a consumer shopping behavior where a customer visits a brick-and-mortar retail location to check out a product but then purchases the product online, often at a lower price. This trend has been facilitated by the widespread use of smartphones, which allow customers to compare prices on the spot.

Answer 133

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Offer benefits - e.g.maybe price matching??
Stock different merchandise - Retailers can offer products that are exclusively available in their stores and not sold online
Specialize- ????
Hold events. In-store Experiences: Retailers can create unique in-store experiences that cannot be replicated online. This can include product demonstrations, tastings, or other interactive experiences that make shopping more engaging.
Create membership programs - loyalty programs
Engage with customers
Make sales from own website - go omnichannel
Provide great service

Answer 134

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This is The systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company.

Answer 135

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Businesses
Schools
Politicians
Hospitals
Libraries

Answer 136

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Understand your existing customers
Identify potential new customers
Understand your position relative to the competition
Set realistic targets for your business
Identify new business opportunities
Develop new strategies
Evaluate strategies

Answer 137

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Calculate customer lifetime value
Predict the acceptance of new technologies
Determine the profit-maximising price of a product
Explain/predict behaviour (churn, expansion, …)

Answer 138

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Step 1: Define The Problem
Step 2: Develop The Research Plan
Step 3: Collect relevant information
Step 4: Analysis & Presentation Of Findings
Step 5: Take Marketing Actions

Answer 139

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Define the scope. The Scope should not be too narrow, not too broad
Formulate the problem as a question. E.g What is the size of the target market? Would our best-selling product do well in region X?
Spell out decisions you might face. This could include things like altering a marketing strategy, changing product pricing, or shifting target audiences.
Specify decision alternatives - these are alternatives for action in response to the research results identified.

Answer 140

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Management-Decision Problem e.g Should a new product be introduced?
Market Research Problem e.g Determine consumer preferences and purchase intentions for the proposed new product.

Answer 141

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Here, we figure out the following:
- Data Sources
- Research Approach
- Research Instruments
- Sampling Plan
- Contact Methods

Answer 142

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1) Secondary Data
- Existing data, collected for another purpose
- E.g Surveys or reports from research organizations, government agencies, or trade associations
- Syndicated (e.g., point-of-sale scanner data, TV ratings, browsing …)

2) Primary data
- Collected for a specific research project
- More costly
- Used If secondary data is not available, dated, incomplete or unreliable

Answer 143

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Focus Groups
Survey Research

Answer 144

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users are Videotaped and observed through a one-way mirror
it is Focused on a series of topics
Professional moderator asks questions and probes comments
it useful for Determining consumers’ real motivations, thoughts and feelings
Group members are encouraged to:
—- Express their own views on each topic
—- Elaborate on or react to the views of others

Answer 145

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Learn about people’s knowledge, preferences and satisfaction in the general population

Answer 146

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lower cost

Answer 147

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‘Survey burnout’ is a phenomenon where respondents become tired of answering surveys and either stop responding or provide less accurate answers. This is a risk when individuals are surveyed too frequently.

Can be reduced by

Keeping a survey short and simple
Avoid contacting customers too often
Offering incentives (Chance to win prizes, gift certificates …)

Answer 148

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Sampling unit: Who is to be surveyed?
Sample size: How many people should be surveyed?
Sampling procedure: How should the respondents be chosen? (probability vs non-probability sample)

Answer 149

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a) probability

b) non-probability sample

Answer 150

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Simple random sample - every member of the population has equal chance of selection
Stratified random sample - population is divided into mutually exclusive groups (e.g age group) and random sample is picked from each group.
Cluster area sample - population is divided into mutually exclusive groups (e.g city block ) and researcher picks a sample of groups to interview .

Answer 151

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convinience sample - Researcher selects most convinent sample
Judgment sample - Researcher selects members who are good prospects for the accurate information
Quota - The researcher finds and interviews a prescribed number of people in each of several categories.

Answer 152

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Inexpensive
Fast
More honest responses online
Versatility - Online research can incorporate a variety of multimedia elements such as images, videos, or interactive elements

Answer 153

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Skewed samples - Online research can be biased towards certain demographic groups who have more access to and are more comfortable using the internet, such as younger individuals or people in developed regions.
Technological problems - technical glitches could lead to incomplete responses or loss of data.
(Data Quality) - Respondents may rush through online surveys. Or depth and richness of the data collected may not compare to traditional face-to-face methods.

Answer 154

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Is the study of the processes involved when consumers select, purchase, use and dispose of products, services, ideas and experiences to satisfy their needs and wants.

Answer 155

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1) Culture
- Subcultures (Ethnic groups, Religions, …)
- Social Class (e.g., Luxury Marketing)
- National cultures (International Marketing)

2) Social Groups
- Reference groups, Peers
- Family, social roles

3) Individual
- Age
- Stage in life cycle
- Occupation & economic circumstances
- Personality & self-concept
- Lifestyle & values

Answer 156

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Lifestyles Of Health And Sustainability

Answer 157

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Sustainable economy - They often prefer to purchase goods and services from companies that have environmentally friendly practices, use sustainable resources, and support fair trade and ethical business practices.

Healthy lifestyles - This includes consuming nutritious, organic, and locally sourced food; participating in regular physical activity

Ecological lifestyles - seek to reduce their impact on the environment in various ways, such as by recycling, composting

Alternative healthcare - prefer holistic and alternative healthcare approaches, such as naturopathy, acupuncture, yoga, meditation

Personal development - They may invest time and money into activities that promote personal growth, self-improvement, and mindfulness,

LOHAS consumers are characterised by their choices that prioritise personal and planetary health.

Answer 158

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Motivation
Perception
Learning
And memory habits of consumer

Answer 159

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Also known as physiological needs, biogenic needs refer to the basic requirements for human survival. These include needs like food, water, air, shelter, sleep, and other physical needs. These needs are generally universal and not influenced by factors like culture or society.

Answer 160

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Psychogenic Needs: These needs are psychological and influenced by factors like society, culture, or individual personality traits. They are not necessary for survival but can strongly influence consumer behaviour. Examples of psychogenic needs include needs for status, power, affiliation, and achievement.

Answer 161

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Physiological needs - food, water shelter
Safety needs - security, protection
social needs - sense of belonging, love
Esteem needs - Self esteem, recognition, status
Self actualisation - self development and realisation

Answer 162

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Perception is the process by which sensations are selected, organised, and interpreted

Answer 163

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Sensation is the immediate response of our sensory receptors to basic stimuli

Answer 164

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People are more likely to notice stimuli that relate to a current need
People are more likely to notice stimuli they anticipate

Answer 165

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**Sensory stimuli **is perceived by sensory receptors
A person experiences multiple exposure to these stimuli
Attention filters out what is deemed unimportant
What is deemed important is interpreted

Answer 166

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Classical conditioning
Operant conditioning

Answer 167

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The individual learns to perform behaviours that produce positive outcomes and to avoid those that yield negative outcomes.
This theory suggests that learning occurs through rewards or punishments.

Example: In marketing, operant conditioning might involve offering rewards such as discounts, loyalty points, or exclusive offers to encourage certain buying behaviours.

Answer 168

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Neutral stimulus (initially not eliciting a response) is paired with a stimulus that elicits a response until the neutral stimulus elicits a response on its own. This theory posits that consumers learn by association.

Example: An example in marketing would be when a brand consistently pairs its product with positive images, emotions, or experiences in advertisements, causing consumers to associate these positive feelings with the product itself.

Answer 169

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Nodes are stored information (verbal, visual, abstract …) connected by links of varying strength
A node becomes activated (e.g., by thinking about related concepts)
“Activation” spreads through the network based on the strength of links
Nodes with the highest “activation” are most likely to be retrieved and influence behaviour

This can be applied to brand image. E.g apple associated with cool, user friendly, fun etc

Answer 170

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Memory encoding - how information gets into memory
Memory retrieval - how information gets out of memory

Answer 171

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Problem recognition: The buyer recognises a need triggered by internal or external stimuli (difference between ideal and actual state).
Information search: The buyer looks for information from personal, commercial, public, and experiential sources.
Evaluation of alternatives: The buyer evaluates different alternatives, forms attitudes, preferences, and purchase intentions.
Purchase decision: The buyer makes decisions with regard to brand, dealer, quantity, timing, and payment method.
Post purchase behvaiour: The buyer might experience dissonance after having purchased an offering; word-of-mouth and complaints.

Answer 172

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Total Set: This refers to all the brands in a particular category that a consumer is aware of, whether they would consider purchasing them or not. For example, in the category of cars, a consumer’s total set might include brands like Toyota, Ford, BMW, Tesla, etc.
Awareness Set: This is a subset of the total set and includes brands that a consumer is not only aware of but also remembers when considering a purchase in a specific product category.
Consideration Set: This is a further subset of the awareness set. It includes brands that a consumer would seriously consider when making a purchase decision. Brands in the consideration set meet the consumer’s basic buying criteria and are seen as viable options.
Choice Set: This is a subset of the consideration set and includes the brands that the consumer evaluates more closely and considers as strong potential purchases. The choice set often includes only a handful of brands, and the consumer will scrutinize them based on specific attributes, price, availability, and so on.
Decision: This is the final stage in the consumer decision-making process, where the consumer selects one brand or product from their choice set to purchase. This decision is typically based on a variety of factors, including product attributes, price, perceived value, brand reputation, and personal preference.

Answer 173

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Memory based - recalling different options based on their memory.
Stimulus based - set is based on stimuli they encounter in their environment, such as advertisements, product placements, store displays, etc.

Answer 174

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a model used in the study of consumer decision processes to evaluate alternative brands

Answer 175

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Non-compensatory (heuristics):
relative evaluation: The Multi-Attribute Model assumes that evaluation doesn’t depend on other products. But in reality, the context or the presence of other alternatives can influence decisions. This is known as “relative evaluation”. For instance, the introduction of a higher-priced product can make a moderately priced product seem cheaper.

Answer 176

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The Multi-Attribute Model suggests that consumers evaluate products based on multiple attributes and consider a trade-off between these attributes. However, in practice, consumers may deviate from this model, using heuristics or mental shortcuts to simplify their decision process.

Answer 177

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Lexicographic heuristic: Consumers select the product that is best on the most important attribute. If two or more products tie on this attribute, the consumer moves on to the second most important attribute, and so on. There’s no trade-off here—only the best product on the most important attribute is considered.
Conjunctive heuristic: Consumers set a minimally acceptable cutoff level for each attribute and choose the first product that meets all minimal requirements for all attributes.
Elimination by aspects: Similar to the lexicographic heuristic, but instead of looking at the most important attribute, consumers look at a random attribute and eliminate options that do not meet the minimum requirement. The process is repeated with the remaining attributes until only one option remains.

Answer 178

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Remind consumers when it is time to replace. E.g bristles of tooth brushes fade over time to indicate replacement need
Tie the act of replacing to a certain holiday, event or time of year.

Answer 179

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Behavioral economics is a field of study that seeks to understand how people make economic decisions, incorporating insights from psychology to explore why people sometimes make irrational decisions and why their behaviour often deviates from economic models that assume perfect rationality.

Answer 180

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People don’t always make ‘rational’ choices: Traditional economic theory assumes that individuals are rational actors who aim to maximise their utility or satisfaction. However, behavioural economics acknowledges that people frequently make decisions that don’t align with traditional notions of rationality. These decisions might be influenced by a range of factors, such as cognitive biases, emotions, and social factors.

Deviations are systematic and predictable: While people may not always act rationally, their behaviour is not entirely random. Behavioral economics studies have found that people’s deviations from rationality often follow certain patterns, making them somewhat predictable. For instance, people tend to overvalue immediate rewards compared to future rewards, a phenomenon known as “present bias.”

Preferences are constructed: Traditional economics assumes that individuals have fixed preferences. However, behavioural economics suggests that preferences can be constructed or influenced by the way choices are presented, the context, and various other factors. For instance, people might be more likely to opt for a surgical procedure if it’s described in terms of survival rates rather than mortality rates, even though the two are mathematically equivalent.

Context matters: Behavioral economics emphasises the importance of context in decision-making. The same decision or issue presented in a different way or in a different environment can lead to different choices. This is known as the “framing effect.” For example, people may spend more money when it is framed as a percentage discount (e.g., 20% off) versus the same dollar amount discount.

Answer 181

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Consumers often use contextual values as starting points (anchors) and subsequently adjust to that information.
Adjustments are often inadequate and remain too close to the original anchor.
Anchors may be influenced by irrelevant information. E.g. last digits of your SSN

Answer 182

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when choosing from a range of options, individuals are more likely to avoid the extremes and instead select more moderate or middle options. This is often interpreted as a preference for compromise.

Answer 183

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Empirical evidence shows that choices are influenced by how information is framed/presented

Answer 184

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is cognitive process individuals use to organise, evaluate, and keep track of their financial activities.
It hinges on the fact that All money is interchangeable and has no labels, But people treat money differently, depending on factors such as Origin and Intended use

Answer 185

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Refers to the ways in which the presentation of choices can influence decision-making.

Answer 186

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Structure of the Task (e.g., Default): This refers to how the choice is presented. For example, setting a default option can greatly influence the decision people make. If a website’s signup form has a pre-ticked box for email updates, more users will receive these updates simply because many won’t bother to untick the box.
Presentation of the Options (Number, Order, etc.): The number and order of options can also sway decisions. For instance, people might choose differently based on whether the options are presented all at once or sequentially.

Answer 187

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This concept suggests that it’s possible to guide people towards better decisions while still preserving their freedom to choose. The goal is to “nudge” people toward the most beneficial choice.

Answer 188

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Main Objective: inform, persuade, and remind customers about a product. Indirectly and directly.

Answer 189

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What is your objective? - what
Who are you trying to reach? - who
Where is the best place to reach your target? - where
How is the best way to reach your target? - how

Answer 190

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Advertisement - Any paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor (e.g., traditional TV, print ads)
Personal Selling - Two-way flow of communication between buyer and seller, designed to influence the buyer’s purchase intentions, typically face-to-face
Public Relations - A nonpersonal, indirectly paid (company does not pay for space in mass medium) presentation of an organization, good, or service (e.g., news articles, editorials, product launch announcements).
Sales Promotion - A short-term inducement of value offered (to both consumers and sales channel) to arouse interest in buying a good or service (e.g., coupons, rebates)

Answer 191

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STP strategy
Market research
(Unique Selling Proposition; few cues)

Answer 192

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Credible sources (experts, users of producers, etc.)
Creativity / Humor

Answer 193

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Identify the target audience - . What are their demographics, psychographics, needs, preferences, and behaviors
Determine the communication objectives - What is the purpose of your communication? Are you trying to raise awareness, provide information, stimulate demand, reinforce the brand, or prompt action
Design the message - Craft a message that is likely to get attention, stimulate interest, build desire, and prompt action (AIDA model)
Choose the media -
Select the message source - ????

Answer 194

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need to have time horizon(planning period)
have a target (who to reach)
Communication task (message)
Have Effect wanted (desired change)
Must be consistent with marketing analysis/positioning!

Answer 195

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Defining Advertising Goals For Measured Advertising Results

Answer 196

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Specific, Measurable, Achievable, Relevant, and Time-Bound

Answer 197

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Category need - why do we need the service, product or company
Brand Awareness . Recognition (2) and Recall (1) (can be aided or unaided).
Brand Knowledge - target consumers are aware of the most essential brand characteristics, features and benefits.
Brand attitude - the perceived value of a brand to a consumer.

Answer 198

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Brand attitude
Brand preference

Answer 199

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Top of mind awareness
Brand attitude
Brand loyalty
Customer satisfaction

Answer 200

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Purchase
New target groups

Answer 201

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Category Need
Brand awareness
Brand knowledge
Brand attitude
Brand purchase intention
Purchase facilitation
Purchase Satisfaction
Brand loyalty

Answer 202

A

Prepurchase stage
purchase stage
post purchase stage

Answer 203

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Helps determine your communication strategy (type of media, content of communication, location etc).
A clear objective helps you evaluate your strategy
Helps To illustrate, what type of ads would you create to:

Answer 204

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broadcast: TV, radio
print: newspapers, magazines, direct mail
internet: search engines, content sites, social media, own website,…
transit: bus, billboards, rolling billboards
personal mobile devices (apps, ads)
also consider alternatives: personal selling, street advertising, guerilla marketing, outbound telemarketing, trade shows & events,
sponsoring, PR,

Answer 205

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target segment,
product,
message,
distribution,
flexibility,
budget,
legal constraints,
current & desired brand awareness and brand
image (step in decision process),
Cost

Answer 206

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Unaided brand awareness (recall)
Aided brand awareness (recognition)

Answer 207

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vehicles refer to the specific instruments for transmission of information within a medium. Time and Newsweek are vehicles within the magazine medium

Answer 208

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vehicle selection is based on efficiency of alternative vehicles in reaching the target (cost per thousand)

Answer 209

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Paid Media
Owned Media
Earned Media

Answer 210

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Offline: Traditional Advertising (TV, Radio, Print, Outdoor), Sponsorship
Online: Display/Banner Ads; Search Ads (Google Advertising); Social Network Ads; E-Mail Advertising

Answer 211

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Offline: Brochures; Company Press Release; Retail-In- Store Displays
Online: Company Website; Company Blog; Company accounts in social networks (Twitter, etc.)

Answer 212

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Online: Mentions in traditional media outlets; Ratings and Reviews; WOM
Offline: Mentions in digital media outlets; Online WOM; Posts in online communities; Online ratings and reviews

Answer 213

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Media planning is the process of selecting and scheduling media platforms for advertising to achieve marketing objectives.

Answer 214

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Continuous schedule: means that the advertiser spends a continuous amount of money throughout the whole campaign period.
Pulsing schedule: indicates that a certain level of advertising takes place during the whole campaign period, but during particular periods higher advertising levels are used
Flighting schedule: is used when advertising is concentrated in only a few periods and not during the whole campaign period

Answer 215

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Continuous schedule: means that the advertiser spends a continuous amount of money throughout the whole campaign period.

Answer 216

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Pulsing schedule: indicates that a certain level of advertising takes place during the whole campaign period, but during particular periods higher advertising levels are used

Answer 217

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Flighting schedule: is used when advertising is concentrated in only a few periods and not during the whole campaign period

Answer 218

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Humor
Creativity - used to Capture attention and induce behavior
Emotions to create awareness

Answer 219

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identifies: the brand as trademark. helps consumers distinguish between different companies and their products - A well-known and respected brand can convey a great deal of information very quickly, such as the quality, reliability,
summarizes: the brand as shorthand
abstracts: the brand as symbol - ability to evoke certain feelings or associations in the minds of consumers

Answer 220

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Name or symbol intended to identify the goods and services of one seller and differentiate them from the competition” (AMA)

Answer 221

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Is The set of associations and behaviours that permits the brand to earn greater margins than it could without the brand name.

Alternative defination:
Brand equity refers to the value that a brand holds and is derived from the perceptions and experiences of consumers. It’s essentially the worth of a brand in the minds of consumers and can provide a company with competitive advantages, such as the ability to charge premium prices or strong customer loyalty.

Answer 222

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Is the Differential effect of brand on balance sheet of owner

Alternative definition:
This is a financial-oriented perspective that views brand equity in terms of the additional financial value that a brand name gives to a product. it represents the monetary value of the brand as an asset, and it’s often determined using methods like market capitalization,

Answer 223

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is Differential effect of brand on potential customer

Alternative definition
is the power of a brand in the minds of customers.

Answer 224

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brand awareness
## brand image

Answer 225

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types of brand associations
favorability of brand associations\
strength of brand associations
uniqueness of brand associations

Answer 226

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Are the metrics used to determine the level of awareness or recognition a brand, product, or campaign has among a targeted audience.

Answer 227

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Brand Recognition: e.g here is a list of logos have you seen them, or completed the following
Brand Recall: This measures the ability of consumers to independently remember a brand without any prompts. E.g name business schools you can think of, do you remember seingX commercial? What was the brand?

Answer 228

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They are used For exploratory purposes & to uncover deeper associations.
They seek to understand the various attributes, benefits, emotions, and attitudes that consumers connect or associate with a brand

Answer 229

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Interviews
Focus Groups

Answer 230

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Free associations - i.e give them a brand and then let them mentions what comes to mind
Collages - participants are asked to create a collage that represents their perceptions, feelings, and associations with the brand

Answer 231

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Is a visual representation of the associations and concepts linked to a particular brand in the minds of consumers. It provides a graphical depiction of the different ideas, attributes, emotions, and experiences consumers relate to the brand.

Answer 232

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refers to a set of human characteristics that are attributed to a brand name. Just like a person, a brand can have a personality that is consistent, distinct, and relatable, allowing consumers to identify and connect with the brand on a deeper level.

Answer 233

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Sincerity
Excitement
Competence
Sophistication
Ruggedness

Answer 234

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Down-to-earth,
honest,
wholesome,
cheerful

Answer 235

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Daring,
spirited,
imaginative,
up-to-date

Answer 236

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Reliable,
intelligent,
successful

Answer 237

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Upper class,
charming

Answer 238

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Outdoorsy,
tough

Answer 239

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Set and fulfill expectations
Reduce risk
Simplify decision making
Take on personal meaning
Become part of identity

Answer 240

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Simplify product handling
Organize inventory and accounting
Offer legal protection
Create brand loyalty
Secure competitive advantage

Answer 241

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Brand Extension: (brand stretching) using an existing brand name to introduce a product in a different category or market segment.
line extension: is a strategy where a company introduces additional items in the same product category under the existing brand name.
Multi-brand Strategy: This strategy involves marketing multiple separate brands in the same market, each with a distinct positioning and target audience.
New Brand Strategy: This strategy involves creating a completely new brand for a new product, market segment, or line of business.

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Existing Brand name + New product category

Brand Extension: (brand stretching) using an existing brand name to introduce a product in a different category or market segment. This can allow companies to leverage the existing brand’s equity, reputation, and recognition to drive acceptance and sales of the new product. However, it’s important to ensure that the extension fits with the brand’s image and positioning - otherwise, it could potentially dilute the brand or confuse consumers.

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Existing brand name + existing product category

line extension: is a strategy where a company introduces additional items in the same product category under the existing brand name. For example, a popular breakfast cereal brand introducing a new flavor or a clothing brand introducing a new line of colors or patterns for an existing product range. allows the company to leverage the existing brand’s equity and customer base to launch new products.

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New brand + existing product category

This strategy involves marketing multiple separate brands in the same market, each with a distinct positioning and target audience. This allows a company to cover more of the market and cater to different customer needs, preferences, and price points, while also minimizing risk as the brands can independently succeed or fail. However, it can be more costly and complex to manage multiple brands.

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New brand + New product category

This strategy involves creating a completely new brand for a new product, market segment, or line of business. This could be necessary if the existing brand does not fit with the new offering or target audience, or if the company wants to distance the new offering from the existing brand for some reason. This strategy allows

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Transfer of brand awareness and brand image
Efficiencies in advertising – creation of a new brand is very expensive
Help meet short term revenue pressures
Prevent competitors from occupying limited shelf space

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Dilution of brand positioning
Cannibalization
Shelf space – Will they lead to fewer resources for better performing alternatives?

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refers to any act or performance one party can offer to another that is essentially intangible and does not result in the ownership of anything.

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Intangibility - you cannot touch it,
Heteroginity - different each time, can be due to human element,
(inseparabilty) simultaneous production and consumption, and
Perishability - cannot be stored for later use.

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The Service Package is defined as a bundle of goods and services provided in the service production and delivery environment.

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Supporting Facility: The physical resources that must be in place before a service can be sold. This includes everything from buildings and equipment to websites and other technology resources. golf course, ski lift, hospital, airplane.

Facilitating Goods: The material consumed by the buyer or items provided by the consumer. This could include everything from food in a restaurant to the documentation required for an insurance claim. food items, legal documents, medical history.

Information: Operations data or information that is provided by the customer to enable efficient and customized service. patient medical records, customer preferences, location of customer to dispatch a taxi.

Explicit Services: The benefits that are readily observable by the senses and consist of the essential or intrinsic features. This is what we often think of as the actual service. For example, the haircut at a hair salon or the transportation provided by a taxi. quality of meal, attitude of the waiter, on-time departure.

Implicit Services: Psychological benefits the customer may sense only vaguely, like the privacy of a hotel room or the peace of mind from an insurance policy. They represent the essential features and are usually related to the attitudes of the service providers, such as the respect and politeness of the staff. privacy of loan office, security of a well lighted parking lot.

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Need Recognition
Information Search
Evaluation of Alternatives
Purchase
Consumer Experience
Postexperience Evaluation

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High in search qualities - These are aspects of a product or service that a consumer can evaluate prior to purchase. For example, jewelry and clothing fall into this category. A consumer can assess the material, design, color, size, and brand of these items before deciding to buy them. The information is readily available and allows for comparison shopping.

High in experience qualities - These attributes cannot be evaluated until the product or service has been purchased and experienced. For instance, the quality of a vacation, a haircut, or child care services can only be fully assessed after the service has been provided. You can’t determine the value or satisfaction you’ll receive from these experiences until you’ve actually experienced them.

High in credence qualities- These are characteristics that consumers find difficult to evaluate, even after purchase and consumption. They typically involve services that require a high degree of trust and expertise, such as TV repair, legal services, root canals, or auto repairs. Consumers often lack the knowledge or expertise to evaluate these services, and therefore must rely on the credibility and trustworthiness of the service provider.

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“Service Dilemma,” this refers to the unique challenge that comes with the fact that the customer is an integral part of the service experience. In many cases, the quality of the service depends not just on the service provider, but also on the customer. This is because the customer often plays an active role in the service delivery process.

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The SERVQUAL model is a multi-item scale developed to assess customer perceptions of service quality in service and retail businesses.

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Tangibles: The physical evidence of the service, such as the appearance of physical facilities, equipment, personnel, and communication materials.

Reliability: The ability to perform the promised service dependably and accurately. This includes aspects such as keeping to time schedules and maintaining accurate records.

Responsiveness: The willingness to help customers and provide prompt service. This includes timely and quick service, as well as attention to customer inquiries and requests.

Assurance: The knowledge and courtesy of employees and their ability to inspire trust and confidence. This includes aspects such as employee confidence, politeness, and knowledge.

Empathy: The provision of caring, individualized attention to customers. This includes understanding customer needs, giving personal attention, and having convenient operating hours.

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Service performance that falls below customer expectation

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Customer expectations
Process
Equipment
Facilities and environment
Other customer actions
Staff
Systems
Customer actions

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Outcome Failures - The firm does not fulfill the basic service need or perform the core service (e.g.; a reserved hotel room is unavailable because of overbooking)

Process Failures - The delivery of the core service is flawed or deficient in some way (e.g., a hotel desk clerk treats the customer rudely during check-in)

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actions a company takes in response to a service failure with the aim of restoring customer satisfaction and loyalty.

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Fix the customer or
Fix the problem

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Respond quicky
Provide appropriate communication
Treat customer fairly
cultivate relationships with customers

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Encourage and track complaints
Learn from recovery experiences
Learn from lost customers
Make the service fail safe

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Intangibility
Management of Customer Expectations
Customer Education

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Make realistic promises
Offer service guarantees
Offer choices
Create tiered value service offerings
Communicate criteria and levels of service effectively

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Prepare customers for the service process
Confirm performance to standards and expectations
Clarify expectations after sale

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Incorporeal existence
- physcal representation. Show physical components of service that are unique, indicate high quality, and create the right association.

Abstractness
- Service consumption episode - Capture and display typical customers benefiting from the service, evoking particular incidents.

Generality
- System documentation - Objectively document physical system capacity by showing facts and figures.
- Performance documentation - Document and cite past positive performance statistics.

Service performance episode
- Present a vivid story of an actual service delivery incident that relates to an important service attribute.

Nonsearchability
- Performance documentation - Cite independently audited performance.
- Consumption documentation - Obtain and present customer testimonials.

Mental impalpability
- Service process episode - Present a vivid documentary on the step-by-step service process.
- Case history episode - Present an actual case history of what the firm did for a specific client

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- Auxiliary (Doing Less Bad)
Focuses on promoting sustainable products. NOTE: Reducing negative environmental impacts
This is the most basic level. It involves reducing the negative impacts of the company’s existing operations. For instance, a company might take steps to reduce its emissions, waste, or energy use. This approach doesn’t fundamentally change the business model or product offering, but it minimizes harm.

- Reformative (Doing More Good)
Focuses on promoting sustainable lifestyles. NOTE: Creating positive environmental or social benefits
This level involves taking steps to create positive impacts, not just reduce negative ones. This might involve creating products or services that have environmental or social benefits. For instance, a company could introduce a new line of eco-friendly products, or make investments in community development projects.

- Transformative (Doing Different)
Focuses on promoting sustainable systems and institutions. Fundamentally rethinking a business model to be more sustainable
This is the most radical level of sustainability marketing strategy. It involves fundamentally rethinking the company’s business model or value proposition in light of sustainability principles. This could involve moving away from unsustainable product categories, transforming the supply chain, or even redefining the company’s mission and purpose around sustainability.

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Through product
- This may include better production conditions. Wast management, fair wages.
- Or Product characteristics and performance. E.g recycled paper

Through pricing
- Upstream price fairness - this is what your workforce earns compared to what they are making for the company
- Downstream price fairness - pricing your customers and being transparent with them.

Through Distribution
- Reduced material input. E.g using less wrapping and packing by alteing product package configuration
- Efficient moving and storing - using efficient delivery routes and optimsing storage space.

Through Communication
- Means - choosing communication means e.g posters that or ad sources that are environment friendly
- Content - relaying the sustainability message through the content in Transparent and engaging ways

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From individual ownership to leasing and renting. NOTE: Examples of this transition to leasing and renting include car sharing services like Zipcar, Rent the Runway for designer clothing rentals, and furniture rental services like Feather. All these companies operate on a model where consumers pay to use products for a set period, rather than owning them outright. This approach aligns economic incentives with sustainability goals and can lead to significant reductions in resource use and waste.

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From sales orientation to education orientation. an education-oriented approach involves businesses taking on the responsibility of educating their customers about the value and necessity of sustainable consumption. Rather than just trying to sell as many products or services as possible, businesses with an education orientation aim to inform their customers about the environmental and social implications of their purchasing decisions.

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From customer focus to multi-stakeholder focus.
refers to a change in how a business perceives and interacts with its environment.
In a traditional customer-focused approach, businesses primarily concentrate on satisfying the needs and wants of their customers. While this is crucial for business success, it often overlooks the interests of other groups who are also impacted by the business’s activities, known as stakeholders. These stakeholders may include employees, suppliers, shareholders, local communities, and even the environment.
Moving to a multi-stakeholder focus means that the business broadens its perspective to consider the interests, needs, and impacts on all of these various stakeholders. The business recognizes that its actions have broader social, economic, and environmental implications and seeks to balance and respect the needs of all involved parties.
This could involve improving labor conditions for employees, creating fair trade agreements with suppliers, reducing environmental impact, or contributing positively to local communities.

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Changing the Marketing Philosophy.
involves a shift from conventional marketing philosophies that prioritize profit and short-term growth, towards sustainable practices that consider long-term impacts on society, economy, and the environment. Can be brocken down even further into, From Product-Centric to System-Centric, From Short-Term to Long-Term Perspective, From Profit-Oriented to Value-Oriented, From Customer Satisfaction to Stakeholder Well-being

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