Marketing Q Quiz Flashcards
(25 cards)
Packaging and Labelling Benefits
1) Communication Benefits
Convey information, directions, ingredients, regulation, imagery (picture paints a thousand words
2) Functional Benefits
Provides storage, convenience, protection, quality, assists usage, product size classes, can create new product classes
3) Perceptual Benefits
Develop brand through package and label shape, color, graphics, personality, imagery
Consumer Personas of Target Market
Consumer personas are fictional, generalized representations of your ideal customers.
Depending on your business, you could have as few as one or two personas, or as many as 10
What do Consumer Personas do?
They help you understand your customers (and prospective customers) better
Make it easier for you to tailor content to the specific needs, behaviors, and concerns of different groups.
Customer-Value Hierarchy 2
The marketer must turn the core benefit into a basic product. Thus a hotel room includes a bed, bathroom, towels, desk, dresser, and closet
The strongest Consumer Personas…
The strongest consumer personas are based on market research as well as on insights you gather from your actual customer base (through surveys, interviews, etc.).
Use Case in Product Development and Promotional Campaigns
Definition: a use case outlines how a new product or feature will be used by its target audience. It provides a detailed scenario to guide the design and functionality of the product.
Objective: Define the primary goal of the product or feature (e.g., solving a specific problem, meeting a customer need, or addressing a market gap)
Target User Profile: Identify the end-users who will interact with the product, including their demographics, needs, and pain points. There will probably be different use cases for different consumer personas and target users.
User Environment: Describe the context in which the product will be used, including physical, technical, or social conditions.
Customer-Value Hierarchy 1
Core benefit: the service or benefit the customer is really buying. A hotel guest is buying rest and sleep. Marketers must see themselves as benefit providers.
Customer-Value Hierarchy 3
Expected product, a set of attributes and conditions buyers normally expect when they purchase this product. Hotel guests minimally expect a clean bed, fresh towels, working lamps, TV, bathroom and a relative degree of quiet
Customer-Value Hierarchy 5
Potential product, which encompasses all the possible augmentations and transformations the product or offering might undergo in the future.
Customer-Value Hierarchy 4
Augmented product that exceeds customer expectations. Brand positioning and competition take place at this level. Focus more on lifestyle products. Differentiation.
Step 1 in Setting Price: Identify Pricing Objectives and Constraints
-Pricing objectives specify the role of price in an organization’s marketing and strategic plans
-Pricing objectives: Profit, market share, unit volume, sales, social responsibility, survival
-Pricing constraints are factors that limit the range of prices a
firm may set
-Pricing, product, and advertising strategies available to firms in four types of competitive market
Step 2 in Setting Price: Estimate demand and revenue
Own Price Elasticity
Inelastic: e < 1
-A given percentage change in price results in a smaller percentage change in quantity demanded
-Increase in price -> increase in profits
Elastic: e > 1
-A given percentage change in price results in a larger percentage change in quantity demanded
-Increase in price -> decrease in profits
Unitary: e = 1
-A given percentage change in price results in an equal percentage change in quantity
Step 3 in Setting Price: Determine cost, volume, and profit (CVP) relationships
Total revenue (TR): total money received from the sale of a product. (Price x Quantity)
Average revenue (AR): average amount of money received for selling one unit of a product, or simply the price of that unit.
Total cost (TC): total expense incurred by a firm in producing and marketing a product. Total cost is the sum of fixed cost and variable cost. (TC = FC + VC)
Unit price: Price of product/service
Fixed cost (FC): sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold.
Unit variable cost (VC): sum of the expenses of the firm that vary directly with the quantity of a product that is produced and sold.
Step 4 in Setting Price: Select an approximate price level
Demand-oriented approaches: Penetration (Setting a low initial price on a new product to appeal immediately to the mass market), Prestige (High price so that quality or status-conscious consumers will be attracted), Price Lining (A price line of products at a number of different specific pricing points like iPhones), Psychological (Setting prices a few dollars of cents under an even number $9.99, $4.99), Bundle pricing
Cost-oriented pricing: Standard markup pricing, Cost-plus pricing
Competition-oriented pricing: Customary (Setting a price dictated by tradition/standardized), Loss-leader (Selling a product below its customary price to attract attention & buy other products),
Brand Building
-Creates mental brand equity
-Influences future sales
-Broad reach
-Long term
-Emotional Priming
Cost Per Thousand (CPT or CPM)
Used to make comparisons of campaigns
CPM = Cost/Audience Size * 1000
Cost of Ad/Impressions * 1000
What affects elasticity
-Availability of substitutes: The easier to find close subs, the more elastic
-Necessities vs luxuries: Necessity is less elastic
-Time horizon: Easier to find subs for an item in the long run, more elastic in the long run (a year +) than in the short run (short time after a price change)
Customer Acquisition Cost (CAC)
Cost of getting a new customer
(Cost of sales + Cost of marketing)/New customers acquired
Customer Lifetime Value
Predict how long each customer will stay with company or service in the future
CLV = R * N - (AC+C)
R: Customer revenue per year
N: Duration of relationship in years
AC: Acquisition cost, advertising, email, etc
C: Serving cost, amount of marketing, support, and service each period
Funnel Analytics to Assess Ad Effectiveness
Impressions, clicks, click through rate, conversions, conversion rate, ROI
Money spent —> Money got
Customer Journey Maps
“an illustration made by walking in your customers’ shoes to capture their steps, needs, and perceptions for interactions with your organisation”
Mapping customer journey provides understanding, deep learning and opportunity for change for the organisation.
Understand customer experiences: identify what is successful or not, highlight and diagnose existing issues and opportunities
Design customer experiences: allow organisation to prioritize and rethink existing processes and/or create new ones. Remove inefficiencies
Implement and activate new experiences: maps become blueprints to provide direction to redesign and improve experiences
Communicate within organisation: allows internal communication and understanding of customer experience, used for staff induction, training, strategic planning
Use the customer journey map for change: allows innovation to be tested, either iterative or disruptive
Return on Marketing Investment (ROMI)
Contribution to profit attributable to marketing divided by the marketing invested or risked
ROMI = (Derived Value - Investments) * 100 - Investments
Derived Value = Revenue from ads
Investments = How much spent on ads
