Midterm 1 Flashcards
(165 cards)
1
Q
What is a definition for marketing?
A
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
2
Q
What IS marketing?
A
Managing profitable customer relationships by
- Attracting new customers
- Retain existing customers
3
Q
What are 4 ways to attract new customers?
A
- Promise superior value
- Understand customer needs
- Design customer-driven market strategies
- Build customer relationships
4
Q
What do you need to know to build and retain customer relationships?
A
The customer wants, needs and demand
5
Q
What is a customer need?
A
State of felt deprivation. Includes physical, social and individual needs
6
Q
What are customer wants?
A
The form the human need takes shape. Influenced by culture and individual personality. ( eg need to eat vs want to eat pizza)
7
Q
What are customer demands?
A
When a want is backed by buying power
8
Q
What are market offerings?
A
The products and services that a company offers to the market
9
Q
What is marketing myopia?
A
Focusing on the specific products a company offers rather than the benefits and experiences produced by the products
10
Q
What are 3 ways to retain existing customers?
A
- Build customer relationships
- Deliver on promises
- Deliver satisfaction
11
Q
What are the main components in a modern marketing system?
A
Suppliers, the company, competitors, marketing intermediaries and consumers
12
Q
What is the aim of marketing management?
A
Find, attract, keep and grow customers by creating, delivering and communicating superior value
13
Q
What is marketing management?
A
The art and science of choosing target markets and building profitable relationships with them
14
Q
How do you design a real good marketing strategy?
A
- Serving the right customers (target market)
2. Serving them the best (value proposition)
15
Q
How do you decide which customers to serve?
A
Market segmentation: dividing the market into segments of customers
Target Marketing: Selecting one or more segments to cultivate
16
Q
How do you best serve customers?
A
Create a value proposition that:
- Outlines the benefits or values a company promises to deliver to satisfy consumer needs
- Differentiate brands within the marketplace
- Answers why a consumer should buy their brand rather than a competitors
17
Q
What is the marketing mix? (4 P’s)
A
Product - the marketing offering
Price - How much the item is sold for
Place - Distribution, how the marketing is available (ie retail stores, online etc)
Promotion - Communicating with target customers about the product
18
Q
What are some examples of areas a Product can satisfy the target customers?
A
Providing the right variety, quality, design, features, brand name, packaging and services
19
Q
What are some examples of areas Promotion can target customers?
A
Advertising, Personal Selling, Sales Promotion, Public Relations, Digital Marketing and Direct Marketing
20
Q
What are some examples of areas a Pricecan satisfy the target customers?
A
List Price, Discounts, Payment Period and Credit Terms
21
Q
What are some examples of areas a Place can satisfy the target customers?
A
Channels, Coverage, Locations,
Transportation, Logistics and Shipping
22
Q
What aspects are key to Customer relationship management?
A
Customer value and satisfaction
23
Q
What is customers percieved value?
A
The difference between all benefits and costs of a marketing offer relative to competitors (Is subjective to some value might be paying more for higher quality vs less for less quality)
24
Q
What is customer satisfaction?
A
The extent to which the products perceived performance matches the buyers expectations.
25
What are the pros and cons by providing high customer satisfaction?
Pros: High levels of customer satisfaction leas to consumer loyalty and delights customers who were not expecting it
Cons: Can be costly and affect profitability
26
What is Segmentation?
Dividing the total market into smaller segements with distinct needs, characteristics or behaviours
27
What is targeting?
Selecting segments to enter
28
What is differentiation?
Differentiate the market offering to create superior value
29
What is positioning?
Position the market offering in the minds of customers
30
What are the 4 steps in desining a customer driven startegy to create value for customers?
1. Segmentation
2. Targeting
3. Differentiation
4. Positioning
31
What are the 4 key consumer variables in market segmentation?
Geographic, Demographic, Psychographic and Behavioural
32
What are the different ways you can segment geographically?
- Global regions
- Countries
- Region of Country
- Provinces
- Cities
- Neighborhoods
33
What are the different ways you can segment demographically?
Age, gender, family size, family life cycle, income, occupation, education, ethnic or cultural group and generation
34
Which is the easiest and most popular market to segment?
Demographically - more obvious characteristics and patterns of those being segmented
35
What are the majour age groups?
```
Toddlers (0-2)
Children ( 3-8)
Tweens ( 9-12)
Teens (13-19)
Millennials (born 1980-95)
Gen Xers (67-79)
Baby Boomers (47-66)
Older consumers (47 and earlier)
```
36
Do different ages and life cycles correlate to different goods being demanded?
Obviously
37
What are some items that might be demanded by different genders?
Cosmetics, clothing, magazines
38
What kind of goods vary across ethnic or cultural segmentation?
Goods relating to dietary preferences, music, art, traditions and education.
39
What is ethnic or cultural segmentation?
Segmentation based on race, ethnicity and language
40
What are the largest ethnic groups in Canada?
```
British
French,
Aboriginals (inuit, Metis, First Nations)
German
Italien
Chinese
South Asian
African
Jewish
```
41
What is psychographic segmentation?
Segmentation based on lifestyle, mental state or psychology (ie. Athletic/outdoors type, creative/artistic type, Adventurous type etc)
42
What is behavioural segmentation?
Dividing buyers based on consumer knowledge, attitudes, uses, or response to a product
43
What are behavioural segmentation useful for?
can determine when people buy or consume products as well as the benefits they seek from products ie. Value or status seekers
44
What are the different kinds of behavioral segmentation user status'?
Status - Non-users, ex-users, potential-users, first time users, regular users
Usage rate - light, medium, heavy
45
Who uses loyalty segmentation?
idk read about it *****************************
46
What are the 5 characteristics that make a segmentation useful?
1. Measurable
2. Accessible
3. Substantial,
4. Differentiable
5. Actionable
47
How are market segments measurable?
market size, purchasing power - need to know how big the market segment is so you can plan to serve the segment
48
How are market segments accessible?
Needs to be reachable by marketers - if it exists but you cannot communicate or distribute to it, it is not useful
49
How are market segments Substantial?
Needs to be large enough to encourage a profitable venture
50
How are market segments differentiable?
Must be different than others ie. not being served by others currently
51
How are market segments actionable?
Marketers need the necessary resources to develop programs for different segments (serving a segment costs money)
52
What does market targeting include?
Evaluating market segments, Selecting target segments, being socially responsible.
53
What are 3 things to look at when evaluating marketing segments?
1. Segment size and growth (biggest fastest not always best)
2. Structural attractiveness - Presence of competitors, substitute products can reduce the attractiveness of the segment
3. Company objectives and resources - some segments dont mesh with company policy or are too expensive fro the resources
54
What are the 4 major targeting strategies?
1. Undifferentiated (mass) marketing
2. Differentiated (segmented) marketing
3. Concentrated (niche) marketing
4. Micro-marketing (customized, local or individual marketing)
55
What are some Undifferentiated/mass marketing targeting strategies?
- ignore segments and target everyone
- provide products/services that appeal to everyone
- get message out through tv, radio etc - however reaches the most people
- Focus on common needs, not differences
56
What are differentiated (segmented) marketing strategies?
- Target several segments
| - Design seperate offers for each based on what different segments want
57
What are Concentrated (niche) marketing strategies?
- A niche market is a very specific (often fairly small) market
- Targets one or a couple small segments
- As a marketer, you would be one of the only players serving the market's need
58
What are Micromarketing (customized, local or individual marketing) strategies?
-Tailoring products to suit the specific tastes of individuals or locations - can be as small as individual marketing (local marketing - tailoring brands and promos to local consumer groups or individuals)
59
What are the benefits of socially responsible marketing?
- Can serve interest of both company and consumers
| - Avoids criticism of targeting vulnerable segments or with questionable products
60
What are 3 parts of a differentiation and positioning strategy?
- identifying a set of differentiating competitive advantage on which to build a position
- Choosing the right competitive advantages
- Selecting an overall positioning strat
61
How do you identify possible value differences and competitve advantages?
- Understand their needs better than competitors and deliver more value
- Finding points of differentiation by examing the enitre customer base
62
How to differentiate?
By product: Features, performancem style, design
| By services: Speedy, convenient or careful delivery, extended warranty and maintenance
63
What are the 3 ways to differentiate?
1. Channels - coverage, expertise, perfromance
2. People - Training staff better than competitors
3. Image - Convey distinctive benefits and positioning through imagery
64
What is a competitive advantage?
advantage over others gained by offering greater customer value, through either lower prices or by providing more benefits to justify higher prices
65
What is a unique selling proposition?
idk ********************************
66
What are the 7 differences (competitive advantages?) worthwhile to promote?
1. Important - gives valued, relevant benefit
2. Distinctive - different dfrom competitors
3. Superior - Better than competitors
4. Communicable - Difference is visible to buyers
5. Preemptive - Cant be copied bu competitors
6. Affordable - Buyers can afford it
7. Profitable - Company can profit from it
67
What is positioning?
Teh way the product is defined by consumers on important attributes
The place the product sits in consumers midns relative to competing products
68
What are perceptual maps?
describe where products/brands are "located" in consumers minds relative to competing brands
Can help marketers understand where to position a new brand ie
Friendly staff
|
|
High quality----------------------------------------------Low Quality
|
|
Rude Staff
69
What is a marketing environment? What are the two parts of a marketing environment?
The forces outside marketing that affect the ability to build and maintain successful relationships with customers. Broken into the micro environment and macro environment
70
What is the Microenvironment? Who are the actors in this MIcroenvironment?
Consists of actors close to the the company that affect it's ability to serve customers. Includes: Suppliers, customers, competitors, the public, marketing intermediaries and the company itself
71
What is the macro environment and what are the societal forces that affect it?
Macro environmetn is the larger societal factors that affect the microenvironment. These forces include: Demographic, economic, technological, political, natural and cultural forces
72
What is the difference between a business customer and a reseller?
idk *********************************
73
What is the focal point of the entire value delivery network?
Customers
74
What are the 5 different types of customer markets a business can target?
1. Consumer markets
2. Business markets
3. Reseller markets
4. Government markets
5. International markets
75
What is the best strategy to gain strategic advantage over competitors in the microenvironment?
No single strategy - depends on size, industry a nd position of the firm
76
What is the "public" IN THE MICROENVIRONMENT?
Any group that has an actual or potential interest on an organizations' ability to achieve its objectives
77
What are the 7 types of Publics within the microenvironment?
1. Financial publics - influence companys ability to obtain funds (banks etc)
2. Media Publics: carries news and editorial opinion (newspapers, magazines etc)
3. Government Publics - Regulators that need to be consulted on issues of product safety truth in advertising etc (eg FTC)
4. Citizen action publics - Consumer organization, minority groups etc
5. Local Publics - Neighbourhood residents and community organizations
6. General Public
7. Internal Publics - Workers, managers, volunteers and BOD members
78
In terms of marketing in the microenvironment what role does the company play?
- Involves groups such as R&D, top management, finance, purchasing, operations and accounting
- Affects the marketing dept's planning strategies
- All depts must "think consumer" and work together to provide superior customer value and satisfaction
79
What are Marketing Intermediaries?
Help the company promote, sell and distribute goods to final buyers eg. resellers, physical distribution firms, marketing service agencies
80
What do marketers need to know from suppliers?
Supply shortages, labour strikes and supply delays
81
What is demography?
The study of human populations in terms of size, density, location, age, gender, race, occupation and others - helps marketers track changing age, family structures, geographic population shifts, educational characteristics and population diversity
82
What is the most important demographic trend and what are the 3 largest groups?
The changing age structure and consists of:
1. Baby Boomers
2. Generation X
3. Millenials (or gen Y)
83
What are the characteristics of Baby Boomers?
- 9.8 mil people born between 1947 and 1966
- Controls over 50% of the countries wealth
- average 4 childs per family
- Hit hard by recession
- "think young" strong targets for financial services
84
What are the characteristics of Gen Xers?
- 7 mil people born between 1967 and 1976
- Defined by shared experiences such as:
* Increased parental divorce rates and more employed mothers bc of latchkey kids
* Less materialstic - experiences more important
* Skeptical of marketing
* Most educated generation to date
* Face economic pressure; spend carefully
85
What are the characteristics of MIllenials (gen Y/echo boomers)
- 10.4 mil born between 1977 and 2000 - largest generation
- Includes tweens, teens and young adults
- Fluent with digital technology
- Personalization and product customization are key to success
86
In what ways is the typical household changing?
- Increasing "crowded nest" syndrome
- fewer families have children
- average household shrank to 2.9 people
- more dual income families
- More common-law and same sex couples
87
What are the geographic shifts in population?
- Rural to urban (city, suburb) migration
| - High growth rate in prairie provinces and territories
88
In what way are demographics and the way they are marketed changing?
More educated, white collar population
- 59.1% of people have university degrees or post secondary certificates which increases demand for quality products, book, magazines, travel, computers and internet
Increasing diversity
- 16% consider themselves minorities - rapidly growing and has huge purchasing power, can be targeted with specially designed ads, products and promotions aimed at ethnic groups
- Increasing marketing towards LGBQT community
-Increased marketing to ppl w disabilities
89
What is the economic environment? What are some recent changes?
Factors that affect consumer purchasing power and spending patterns. Recently there's been a consumption frenzy and record debt. Economic crisis leading to consumer frugality with value marketing being the key to success.
90
What is Engels law?
Consumers at different income levels have different spending patterns
91
According to Engels law what changes in spending occur as a result of an increase in family income?
- % on food decreases
- % on housing remains constant
- % on savings increases
- % spent on most goods increases
92
What is the cultural environment?
Institutions and other forces that affect a societies basic values, perceptions, preference and behaviours.
93
In the context of cultural environment what are core beliefs and secondary beliefs and which one is more likely to be influenced by marketers?
Core beliefs are passed from parents, reinforced by schools, churches, businesses and governments
Secondary beliefs and and values are more open to change and thus are more likely to be influenced by marketers
94
What is the technological environment?
Creation and destruction of markets due to changes in technology.
95
What is the political environment?
Includes laws, governments agencies, and pressure groups that limit or influence organizations and individuals.
96
What are some of the effects that marketers face in the political environment?
Increasing legislation, changing govt agency enforcement and increased emphasis on ethics and socially responsible behaviour.
97
What is the natural environment?
Natural resources used as inputs by marketers.
98
What are some trends within the natural environment
Shortage of raw materials, increased pollution and increased government intervention. Many firms focus on creating environmentally sustainable strategies.
99
Why is marketing information important?
To build and maintain profitable relationships with customers companies need information about customers needs, marketing environment, competition.
100
What is required of information for marketing managers to make decisions?
the information needs to provide true customer insights
101
What are customer insights used for?
Developing competitive advantage
102
What is replacing traditional market research depts?
Customer insight teams
103
What is Marketing Information Systems (MIS)? How does it help managers?
System to give managers relevant information in the right form at the right time. It helps managers assess information needs and develop or attain needed information and then analyze and use the information
104
What are some considerations an MIS needs to balance what marketers need and what is feasible to offer?
Too much information can take too long to search through. Has to be the right info and the right quantity as well it has to be worth the cost.
105
Once an MIS has determined what information is needed what are the 3 ways to acquire it?
1. Internal Data
2. Marketing Intelligence
3. Marketing research
106
What are internal databases? What do they typically include in marketing context?
Electronic collections of consumer and market info obtained from data sources within the company network. (eg customer databases). Typically include information on demographicss, sales transactions, website visits etc)
107
What are the benefits of internal databases?
Information can be accessed more quickly and cheaply than other information sources
108
What are the limitations of databases?
- May be incomplete or in the wrong form for making decisions
- Internal databases can age quickly
- Requires highly sophisticated equipment and techniques to manage large internal databases properly (expensive)
109
What is competitive marketing intelligence?
It's a collection and analysis of publicly available information about consumers, competitors and developments in the marketing environment
110
Give examples of marketing intelligence and how it helps the marketer?
Annual reports, brand discussion on blogs or social media, census
Helps the marketer understand what customers say about their brand
111
What are the benefits and limitations of market research?
Benefits: Rich source of data - can be used in real time
Limitations: General, not created for purposes of the company, publicly available.
112
What is Market research?
Systematic design, collection, analysis and reporting of relevant data for specific situations.
113
What does market research help give insight to?
Customer motivations
purchase and behaviour
Customer saatisfaction
114
In what ways is market intelligence different than market research?
Market intelligence is more general and publicly available while market research focuses on specific marketing situations that often require data collection
115
What are the 4 stages in market research?
1. Identifying the problem and research objectives
2. Planning and developing the research
3. Collecting and analyzing data
4. Interpreting and reporting findings
116
Which is most often the most difficult step in market research? Why?
the first step - identifying the problem and research objectives. idk why ******************************************
117
What research objectives may be included in the "defining the Problem and Objectives" stage of market research?
- Exploratory objectives: Gather preliminary information to help define the problem and suggest hypothesis
- Descriptive objectives: Better describe marketing problems, situations or markets (i.e potential)
- Causal research: Test hypothesis of cause and effect relationships
118
What does the research plan outline?
- sources of data (primary vs secondary)
- Specific research approaches
- Contact methods and sampling plans
- Instruments for data collection
All is presented in a written proposal
119
What is secondary data? What are common sources of secondary data?
Information that already exists somewhere which has been collected for another purpose. Common sources include: Internal databases, Commercial data services, Government sources (stats Canada, the census)
120
What are the advantages of secondary data?
Available quicker and cheaper than primary data
| Can provide data individual firm cannot collect on it's own
121
What are the dis-advantages of secondary data?
- needed information may not exist
- Information may not be usable; must evaluate relevancy, accuracy, currency and impartiality
- rarely provides all necessary info requiring firms to collect primary data
122
What must Primary data need be to be useful?
- Consists of information collected for the specific purpose at hand
- Must be relevant, accurate, current, and unbiased
- Can be collected from exploratory, descriptive pr causal research
123
What are the benefits of primary research through Observational/exploratory research?
- Obtains information that people are unwilling or unable to provide
- Best method for exploratory research
124
What are the limitations of Observational/Exploratory research?
- Cannot observe fee-fees, attitudes, motives orlong term/infrequent behaviour
- May not be possible to observe long term or infrequent behaviour
- Ethnographic research yields richer understanding of consumers (watching and observing consumers in their "natural habitat"
125
What is ethnographic research?
A form of observational research in which trained observers watch and interact with consumers in their natural habitat
Yields richer understanding of consumers allows companies to zero in on their customers unarticulated desires
126
What about surveys?
- Gather primary data by asking people questions about their knowledge, attitudes, preferences and buying behaviour
- Most widely used method for primary data collection
- Best method for gathering descriptive information (can ask directly about attitudes, expectations etc)
127
What is causal research through experimental research?
- Gather primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors and checking for differences in group responses
- Best method for explaining cause-and-effect (causal) relationships
128
What is a sample?
Segmetn of the population selected to represent the population as a whole
129
What is determined when selecting a sample?
- Who to survey (sampling unit)
- How many people to survey (sample size)
- How to choose the people in the sample (sampling procedure)
130
What is consumer behaviour?
Consumer behaviour is the buying behaviour of individuals and households who buy goods and services for personal use. These make up the consumer market.
131
What are the central questions for marketers?
How do consumers respond to various marketing efforts the company might use?
What is the consumer decision making process like?
132
What are the 5 stages of the buyer decision process?
1. Need recognition
2. information search
3. Evaluating alternitives
4. Purchase decision
5. Post purchase behaviour
133
How much effort do people put in their purchase decision?
It depends on the involvement or the relative importance of the consequences of the purchase as well as the percieved risk or that the purchase might lead to negative financial, physical or social consequences
134
What is a low risk low involvement purchase? What's an example?
A purchase that is part of habitual decision making such as a box of cereal
135
What is a higher risk higher involvement purchase?
A purchase that causes people to use extended problem solving such as a car
136
How would you market between a high-risk high-importance purchase vs a low-risk low-reward purchase?
High: Provide information through ads, salespeople, websites etc
Low: Provide ads at point of service
137
How do you trigger a need recognition?
- Internal stimuli ie hunger or thirst
| - External stimuli such as a discussion with a friend, or an advertisement
138
What are the 6 things that happen once a need recognition is triggered?
1. Out of stock - need recognition triggered
2. Dissatisfaction -previous product did not fully satisfy the need
3. New Wants or needs - Im a professional I need a classier version of this product
4. Related products - I need these to go along with my original purchase
5. Marketer-induced need recognition - That ad convinced me that this brand is the right version of the classier product
6. New products - I must try this cool new classier version of the product
139
What are several sources of information people use during their information search?
Personal sources - family and freins
Commercial sources - advertising
Public sources - internet searches
Experiential sources - Handling, examining the product
140
How does a purchase decision work?
Formation of purchas intentions occur then the actual purchase decision is made
141
Does the buyer decision making process necessarily follow the typical stages?
Not when trying a new product
142
What are the 5 stages in the adoption process?
1. Awareness - consumer becomes aware of the new product but lacks info
2. Interest - Consumer seeks info about new product
3. Evaluation - Consumer considers whether trying the new product makes sense
4. Trial - Consumer tries new product on a small scale to determin it's value
5. Adoption - consumer decides to try the new product
143
What are the 5 different adopter categorization?
1. Innovators
2. Early adopters
3. Early majority
4. Late majority
5. Laggards
144
What factors influence consumer behaviour?
- Physical environment
- Time
- Psychological factors such as perception, attention, learning etc
- Personal factors such as age, life cycle, lifestyle occupation etc
Social - family, reference groups etc
- Cultural factors
145
What are 2 situational influences?
Physical environment - temperature, lighting in-store ads and displays
Time - "time poverty"
146
What values does culture affect?
basic values such as success, hardwork and freedom, perceptions wants and behaviours
147
What are 4 major subculture groups?
1. Regional - (BC, Alberta, Ontario etc)
2. Founding nations (English, French, Aboriginal etc)
3. Ethnic subcultures (canadian chinese, Indian)
4. Age subcultures( seniors, tweens teens etc)
148
What are Membership groups?
groups that a person belongs to that directly influence that person
149
What are reference groups?
Groups that serve as a point of reference or comparison when forming attitudes
150
What are aspirational groups?
pretty obvious
151
What are the 4 Psychological factors that impact consumer bahaviour?
1. Motivation
2. Perception
3. Learning
4. Beliefs and atrtitudes
152
What does CRM help marketers do?
- provide "best offers" based on customer' suse of products and services
- Pinpoint and target high-value customers
153
What are some benefits of using CRM?
- Captures and analyzes information from all customer sources
- Applies the results to build stronger relationships
- Use data wharehouses and data mining techniques
- Findings may lead to new marketing opportunities
154
What are the questionaire decisions?
- What questions to ask
- Form of each question; closed or open ended
- Wording and ordering of questions
155
What are mechanical instruments of research?
- Monitor consumer behaviour
| - includes people metres, checkout scanners, eye tracking devices, neuro marketing
156
What are the 3 parts of implementing the research plan?
1. Collecting Data - most expensive phase and subject to error
2. Processing the data - Check for accuracy and code for analysis
3. Analyzing the data - tabulate results and compute statistical measures
157
What is perception?
- Process by which people select, organize and interpret information to form a meaningful picture of the world
158
What are 3 factors that can influence perception?
1. Selective attention (screening) - Screen out background noise + info
2. Selective distortion (self verifying) - Distort your perception so that it fits with what you already believe
3. Selective retention (self affriming) - Selectively remembering things tha make you feel good about yourself
159
What is learning?
Change in behaviour as a result of experiences
160
What causes learning?
an interplay of drives (motivations), Stimuli (object of focus), cues (minor stimuli, determinant of response), responses (to interest to purchase), and reinforcement (if experience is rewarding)
161
What is a belief?
Descriptive thought that a person holds about something. Can be based on faith or fact and may or may not carry emotional charge
162
What is attitude?
A person's consistantly favourable or unfavourable evaluations, feelings and tendencies towards an object or idea. (hot or cold determination)
163
What is business buyer behaviour?
The purchase behaviour of orgs that buy goods and services for the production of other products/services or to rent/sell them to someone else (largerin terms of $ than consumer market)
164
How is the market structure for businesses different than consumer markets?
- contains far fewer but larger buyers
- Business demand is derived from consumer demand
- Business markets have more fluctuating demand
- Business purchases involve more decision participants and more professional purchasing effort
165
What are other key differences between business markets and consumer markets?
- Business buyers face more complex decisions
- The business buying process tends to be more formalized
- buyers and sellers are much mire dependant on each other in business markets
