Models and Theories Flashcards
(36 cards)
4P model
Product, Price, Place and Promotion
Marketing environment
The Marketing Environment includes the Internal factors (employees, customers, shareholders, retailers & distributors, etc.) and the External factors( political, legal, social, technological, economic) that surround the business and influence its marketing operations.
Marketing microenvironment
The Micro Marketing Environment includes all those factors that are closely associated with the operations of the business and influences its functioning. The microenvironment factors include customers, employees, suppliers, retailers & distributors, shareholders, Competitors, Government and General Public. These factors are controllable to some extent.
Marketing macroenvironment
The Macro Marketing Environment includes all those factors that exist outside the organization and can not be controlled. These factors majorly include Social, Economic, Technological Forces, Political and Legal Influences.
Marketing management concepts
Production concept, Product, Selling concept, Marketing concept, Societal marketing concept
Production concept
Production Concept is a belief that states that the customers would always acquire products which are cheaper and more readily available (or widely available).
Product concept
This concept works on an assumption that customers prefer products of greater quality and price and availability don’t influence their purchase decision.
Selling concept
The selling concept highlights that customers would buy a company’s products only if the company were to sell these products aggressively.
Marketing concept
A company that believes in the marketing concept places the consumer at the center of the organization. All activities are geared towards the consumer. A business, aims to understand the needs and wants of a customer.
Societal concept
While the societal marketing concept highlights the needs and wants of a target market and the delivery of better value than its competitors, it also emphasizes the importance of the well-being of customers and society as a whole. They must balance and juggle the often conflicting criteria of company profits, consumer want satisfaction, and public interest.
Marketing management process
https://www.markodojo.com/wp-content/uploads/2015/12/marketing-management-process-ideas-work-results.png
BCG matrix
Star, Dog, Questionmark and Cow
STP model
Segmentation, targeting and positioning
Positioning chart
A positioning map is a type of visual that allows marketers to compare their product or service with those of their competitors. For example, in Y-axis high quality - low quality and in the X-axis high price - low price.
Buying behaviour
The sum total of the attitudes, preferences, beliefs and decisions regarding the consumers behavior when purchasing a product or service in a market.
Consumer decision-making process
- Need Recognition: When a consumer is aware of a need which may arise from internal or external stimulus
- Information Search: via Public, Personal, Commercial or Experiential process
- Evaluation of alternatives: Consumers evaluate products and services by combining their brand beliefs and attitudes according to importance using the expectancy value model
- Purchase decision: Influenced by brand, dealer, quantity, timing, attitude of others, unanticipated situational factors and perceived risks
- Post-purchase behavior: Related to customer satisfaction, action, usage, and disposal
Five Product levels
- Core Benefit
The core benefit is the fundamental need or wants that the customer satisfies when they buy the product.
For example, the core benefit of a hotel is to provide somewhere to rest or sleep when away from home.
2. Generic Product
The generic product is a basic version of the product made up of only those features necessary for it to function.
In our hotel example, this could mean a bed, towels, a bathroom, a mirror, and a wardrobe.
- Expected Product
The expected product is the set of features that the customers expect when they buy the product.
In our hotel example, this would include clean sheets, some clean towels, Wi-fi, and a clean bathroom. - Augmented Product
The augmented product refers to any product variations, extra features, or services that help differentiate the product from its competitors.
In our hotel example, this could be the inclusion of a concierge service or a free map of the town in every room.
- Potential Product
The potential product includes all augmentations and transformations the product might undergo in the future. In simple language, this means that to continue to surprise and delight customers the product must be augmented.
In our hotel, this could mean a different gift placed in the room each time a customer stays. For example, it could be some chocolates on one occasion, and some luxury water on another. By continuing to augment its product in this way the hotel will continue to delight and surprise the customer.
Consumer Products
Consumer products, also referred to as final goods, are products that are bought by individuals or households for personal use.
Convenience products
Convenience products are bought the most frequently by consumers. They are bought immediately and without great comparison between other options. Convenience products are typically low-priced, not-differentiated among other products, and placed in locations where consumers can easily purchase them.
Sugar, laundry detergent, pencils, pens, and paper are all examples of convenience products.
Shopping products
Shopping products are bought less frequently by consumers. Consumers usually compare attributes of shopping products such as quality, price, and style between other products. Therefore, shopping products are more carefully compared against, and consumers spend considerably more time, as opposed to convenience products, comparing alternatives. Shopping products require personal selling and advertising and are located in fewer outlets (compared to convenience products) and selectively distributed.
Airline tickets, furniture, electronics, clothing, and phones are all examples of shopping products.
Specialty Products
Specialty products are products with unique characteristics or brand identification. Consumers of such products are willing to exert special effort to purchase specialty products. Specialty products are typically high priced, and buyers do not use much time to compare against other products. Rather, buyers typically spend more effort in buying specialty products compared to other types of products.
Sports cars, designer clothing, exotic perfumes, luxury watches, and famous paintings are all examples of specialty products.
Unsought products
Unsought products are products that consumers do not normally buy or would not consider buying under normal circumstances. Consumers of unsought products typically do not think about these products until they need them. The price of unsought products varies. As unsought products are not conventionally thought of by consumers, they require aggressive advertising and personal selling.
Diamond rings, pre-planned funeral services, and life insurance are all examples of unsought products.
Product life cycle
Products, like people, have life cycles. The product life cycle is broken into four stages: introduction, growth, maturity, and decline.
Pricing approaches
A pricing strategy is a model or method used to establish the best price for a product or service. Pricing strategies help you choose prices that maximize profits and shareholder value while considering consumer and market demand.
