Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Marketing 101 > Midterm > Flashcards

Midterm Flashcards

(79 cards)

Start Studying
1
Q

Ethics

A

adhering to some agreed upon human values

ex- rights, obligations, benefits to society, fairness, honesty

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

why are ethics important?

A

Morally, but also monetarily. If consumers do not trust a company, they won’t continue to buy products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

American marketing association norms and values

A
  1. do no harm
  2. foster trust in the marketing system
  3. embrace ethical values (honesty, responsibility)- consumer confidence
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

corporate social responsibility

A

voluntary firm endeavors that benefit society
stakeholders- employees, consumers, investors, community, suppliers
responsibilities- transparency
benefits- consumer loyalty, avoid legal repercussions, tax cuts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

triple bottom line

A

people, planet, profits

social, environmental, economic

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

needs of customer now, needs of business now

A

marketing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

needs of customer now, needs of business future

A

strategic planning

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

needs of customer future, needs of business now

A

societal marketing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

needs of customer future, needs of business future

A

sustainable marketing (this is the goal)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Is CSR a necessary cost of business or optional?

A

Corpsumers are a large part of the market, so yes.

CSR also leads to a quality product, but it is possible to have a quality product without CSR

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Moral reasoning model- is something ethical?

A 
what are the relevant facts?
what are the ethical issues
primary stakeholders?
possible alternatives?
ethics of alternatives?
practical constraints?
what actions should be taken?
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

unethical marketing practices

A 
unsafe products
knockoffs
planned obsolescence 
mislabeled products
price gauging (increasing price in times of consumer need)
price fixing (working with competitors to set price-illegal)
deceptive advertising, sales technique
puffery- exaggeration
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

criteria for successful CSR/ corpsumer campaigns

A

authentic, committed, relevant, knowing customer base

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

3 dimensions of how customers create value

A

function, economics, psychology

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

lessons from meal kit services

A

retention rates are important. They cast too wide a net. If they focused on the customers that stay, they would have a higher CLV

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

how to increase customer base CLV

A

increase margin and yearly profit, reduce discount

CLV= m(r/(1+i-r))- AC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

customer aquisiton

A

find the best/right customers- which type, demographic, etc. Put the most money into those that will stay.
justify acquisition costs- can’t spend 160 on those worth 133, but can on those worth 1400

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

customer expansion

A

increase margin- meal kits can’t give much more, can’t sell the things grocery stores can
data mining for cross-selling. Customer retention is most important
increase satisfaction to increase loyalty. Give real value to the right customers who appreciate the value. Incentivize staying.
Switching costs- even if unsatisfied, customers likely to stay if high costs to leave

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

customer equity

A

what the whole customer base if worth/aggregate value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

what drives customer equity? (4 types of value)

A

direct value- how much money is a customer driving to you today?
relationship value- retention- how much can we expect in the next years?
Information value- learning from the current base to use in the future. Or monetize data like facebook
communication value- recommendations, referrals, words of mouth, reviews

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

AIDA funnel

A

to describe customer decision making process

Awareness, interest, desire, action

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

why is AIDA weak

A

emphasis on influence, sales closure, acquisition, ends at purchase. No retention, satisfaction. Doesn’t take into account that the second purchase is different than the first. Fails to capture all touch points- digital/social channels, well informed customers with wide choices. Marketing does not stop at customer acquisition. It is the beginning point.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Customer journey- loyalty loop

A
  1. Initial consideration set-trigger
  2. active evaluation- info gathering, shopping
  3. moment of purchase
  4. post purchase experience- ongoing exposure
    loyalty loop back to 3
    customer builds expectations based on experience. Loop sometimes goes through whole process again
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

initial consideration set

A

short list of brands- already in head from all marketing over time. Coke and mcdonalds keeps advertising with 100% awareness to keep at top of consideration set.
Usually 2-4 brands, 1-2 added during active evaluation
company driven marketing huge in initial consideration but goes down by closure, where consumer driven marketing and store interactions important

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
prospect theory
how customers evaluate value- see graph in notes Value (on y axis) and gains (on x axis) based on a reference point in the middle Same amount of losses makes less value than same amount of gains increases value
26
risk- loss aversion
humans are more averse to loss than attracted to gains. Gain has to be 2x loss in order for most people to play the game Value is judged by changed relative to reference point. Deals marketed as gains even though still using money
27
Correlation between satisfaction and performance/quality
little correlation
28
value ratio
what you over out of it vs what you put into it
29
equity/fairness
correlate to satisfaction compare to expectation/alternatives fairness- more satisfied if the price was fair instead of cheap related to reference point- monkey example
30
discomfirmation
(dis)satisfaction is when there is a discrepancy , either positive or negative between expectations and actual performance If low expectations, even a small surprise is great Southwest manages expectations. Have high satisfaction even though objectively worse than other airlines
31
Loyalty
active- emotional connection, brand advocate | passive- habitual, no word of mouth, open to switching
32
mass marketing
same product, marketing to everyone. Undifferentiated, one-for-all strategy advantages-simple and efficient from supply side
33
segmentation
dividing markets into distinct subsets of consumers with different needs and characteristics
34
segmentation based on:
geographic, demographic, psychographic, attitudinal, behavioral
35
psychographic
personality, media, lifestyle,
36
additudinal
benefits sought, price sensitivity, brand loyalty
37
behavioral
usage occasion, usage rate, repeat purchasing
38
criteria for good segments
relevance, homogeneous within, heterogeneous between, comprehensive, operational (measurable, accessible, actionable)
39
MECE
mutually exclusive (everyone is only in 1 group), comprehensively exhaustive (everyone is in a group)
40
methods for segmentation
factor analysis to reduce variables to few useful factors cluster analysis to create groups- stat procedure- maximize homo within and hetero between qualitative insight needed to see meaning in groups
41
Neilson- Geodemographic
US market is broken 66 groups based on environment (urban v rural) and income/resources
42
SBI VALS
(value and lifestyle system) | 8 segments based on attitudinal/ psychographic
43
Customer relationship management
Micro-segmentation- individual approach creating and maintaining relationship with individual customer to build lifetime value example: amazon
44
4 pillars f CRM
identify, differentiate, interact, customize
45
attractiveness (targeting)
segment size, growing segment, monetary and strategic value, stability
46
compatibility (targeting)
company position to address and serve segment | ease of entry, ability to reach and serve
47
competitors (targeting)
number and strength, ease of entry
48
targeting- 3 things to take into accoun
attractiveness, compatibility, competitors
49
positioning
influencing how segment views offering in comparison to competition
50
positioning statement
to (target segment and need) our (brand) is the (concept) that ( point to difference and reason to believe)
51
customer centricity
not treating all customers
52
Marketing research steps
Analysis (5Cs) -> strategy (STP) -> implementation (4PS) -> metrics (effectiveness)
53
direct elicitation
focus groups, interviews, surveys
54
likert scale
semantic meaning translated to numbers (rate 1-10)
55
Multi-attitudinal model
Use direct elicitation data asks 2 questions- rate the importance of each attribute from 1-7 and the strength of each attribute for each company from -3 - 3 Multiply the importance x the strength and add all together for each company to find which company is best in the eyes of customers, relative to the other companies
56
Positioning/ perceptual map
plotting perception of different brands on 2 dimensions of two most important attributes. Can see where each company lies in relation to others
57
problems with surveys and data
customers may not know preferences may be unable/reluctant to share people bad about determining what factors actually contributed to choices ideal offering not a simple sum of its parts
58
conjoint analysis
Infers importance of product features and values of products by how consumers evaluate hypothetical products Create all possible combos of what a product could look like and make people choose (ex forced choice, rate, rank). Then figure out which attribute at each level influenced choices.
59
New methods for data
Phone and internet, purchase histories, eye tracking, brain scans (self reporting less related to real world results than brain activity)
60
profitability
revenue- costs
61
fixed costs
same regardless of level of production | ex- executive salaries, rent, insurance, overhead expenses
62
variable costs
changes with volume of production | ex- manufacturing, shipping, sales commissions
63
sunk costs
money spent, unrecoverable | market research, R&D, general operating expenses
64
unit contribution
portion of sales revenue not consumed by variable costs | = revenue per unit- variable costs per unit
65
contribution margin
unit contribution/ revenue per unit (in %)
66
profit
(unit contribution x units sold) - fixed costs
67
break even volume
number of unites that need to be sold to cover fixed costs | BEV= fixed costs/unit contribution
68
sales/revenue market share
% of sales accounted for by firm within product category | firm sales/ total market sales
69
volume market share
% of units accounted for by the firm within product category | firm units sold/ total market units sold
70
customer market share
% of customers the firm has relative to total customers | firm customers/ total customers
71
customer lifetime value
the value of purchases the customer would make over a lifetime of patronage Net present value of all future streams of profits over a lifetime
72
knowing CLV helps us decide whether to:
acquire, retain, or let go, of an individual customer or entire customer base of company
73
CLV=
annual contribution per customer x years as a customer
74
annual contribution per customer=
unit contribution (how much spends on each thing) x units per customer per year
75
CLV does not account for
discounting profits over time retention rate segments with different values lifetimes
76
retention rate=
[(E-N)/S] x 100 E= # of new customers at end of period N= # of new customers acquired during period S= # of customers at start of period
77
CLV equation
``` m( r/(1+i-r))-AC m=margin i=discount rate r=retention rate AC= acquisition cost ```
78
return on marketing investment (ROMI)
= incremental gain from investment/ cost of investment measure of efficiency of investment can be expressed in terms of net income, sales revenue, market share, contribution margin
79
margin analysis
understand where incentives lie retailer margins show which products retailers want to push/ feature manufacturers margins show which products are driving profits

Marketing 101 (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions