Q4: Marketing Flashcards
(97 cards)
1
Q
Segmentation answers the questions (2)
A
Who and what needs do they have?
WHO - 1st component of positioning
2
Q
How many brand extentions max?
A
3-4, but best if it’s 1
3
Q
Differentiation
A
What unique value are you delivering according to your customers?
Būtent tas customers požiūris is KEY to differenciation
4
Q
2 most important positioning questions?
A
- Why mine instead of competitor’s?
- What is unique value?
5
Q
Self-selection
A
Identifying your own need.
6
Q
“Build a better mousetrap and the world will beat a path to your door”
A
Ralph Waldo Emerson
MISCONCEPTION
Mouse traps are the most reinvented in terms of modern patents.
7
Q
“Marketing is what you do when your product is no good”
A
Edwin Land
MISCONCEPTION
8
Q
Venture capitalists rate marketing as the most crucial business function for company success and top firms spend (amout) and how much of annual revenue from it?
A
10.8% spends, revenue from that: 7.3%
9
Q
Recommended that entrepreneurial firms spend about …% of their revenue on marketing.
A
20%
10
Q
Marketing definition long
A
Activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
11
Q
Marketing definition short
A
Serving consumer needs profitably
12
Q
Positioning statement
A
- The segment
- Your value proposition
- Brand name and category
- Reason to believe
- Maybe: the competitors
13
Q
Tools to meet consumer needs (two)
A
Strategy: overarching plan to achieve an objective
Tactics: actions taken to support the strategy
These two things are complimentary.
14
Q
An entrepreneurial mindset is defined by…
A
focus innovation, risk taking, and being proactive. Constraints inspire creativity.
15
Q
Positioning
A
The way that your product or service is perceived relative tocompetition. Strategic vision for the marketing of your company.
15
Q
Company ethos is
A
a company’s fundamental character or spirit.
15
Q
VALS
A
Values, attitudes and Lifestyles (survey)
15
Q
Reasons to Believe you can provide as a company
A
- Medals, labels, awards
- Invented, real expertise
- Quantifiable information
- Origins
- History/legacy
- Company ethos
15
Q
Segmentation is,how and traditional vs entrepreneurial approach
A
A group of customers sharing common desires, needs, and buying patterns.
- Maximize similarity within a group
- Similar responses to marketing actions
- Maximize distance to other groups
Traditional marketing approach:
* Segment the whole market
* Target the most appropriate segment
Entrepreneurial approach
* Segmenting and targeting occur in tandem (seka vienas paskui kitą)
15
Q
Big 5
A
Extroversion,
Stability level,
Agreeableness,
Openess to experience,
Conscietiousness
15
Q
Bases of segmentation
A
- Geographic: Nations, states, regions, cities
- Demographic: Age, gender, race, family size, income, education
- Psychographic: Lifestyle, personality, needs
15
Q
Behavioral segmentation
A
- User Status (Nonuser, potential, first-time, regular user)
- Usage Rate (Light, medium, heavy)
- Loyalty Status (None, medium, strong, absolute)
- Occasions (Regular vs. special occasion)
- Benefits (Quality, service, economy, speed) - MOST IMPORTANT
15
Q
Caveat (vocab)
A
Įspėjimas
15
Q
Vertical vs Horizontal Differentiation
A
Vertical differentiation: competing directly with competitors
* More/Better/Smaller/Cheaper/Faster (blade razor wars)
Horizontal differentiation: Finding a different angle
* Typically not about quality or price
* The key to achieving a sustainable value proposition and competitive advantage
-> Harder to replicate and mostly about something unique, so not about number of blades for example, but hello we’re delivering blades to your door
15
Best Practices for Segmentation
* Describe people the way they would describe themselves
* Ask will the segment buy your product? Do they find value in it?
* Is the segment is big enough to be profitable? (and not too big)
* And small enough to be well defined?
* Can you reach your segment?
15
A Few Tips for Creating Sustainable Competitive Advantage
* Listen to your customers
* Choose your competition (healthy gum parduodama prie dantu pastos)
* Choose your criteria (that allows you to compete on a whole different level)
Use Horizontal differentiation
15
History eras
1. Production era:
* Post industrial revolution, mass production of goods
* Marketing helps companies differentiate themselves from competitors
* ”Build it and they will come” (floating soap)
* All about the product
2. Sales era:
* 20th Century, rise of mass media
* Advertising to wider audiences
* Sales orientation -> persuading people to buy, emotional and fear appeals
* Visual imagery, starting to sell more abstract ideas
3. Relationship era:
* More focus on targeting specific groups and need to understand consumer and fill their needs
* 1990s, main goal customer retention, responsiveness, and building trust
4. Digital era:
* New technologies = new ways to understand and reach consumers
* Higher expectations for brands to interact with consumers and meet their needs;
higher consequences for failure
* Personalization, multichannel shopping experiences
15
Marketing trends over time
* More focus on the consumer not product
* More focus on what the brand means to people
15
A company is market-oriented if it has mastered the art of...
listening to customers, understanding their needs, developing products that meet them.
15
How do we build a brand?
* Understand who the consumer is (and what they need)
* Often aspirational
* How you're better than competition
* Express this clearly and consistently
15
Brands have an identity that
* Arises from observing users
* Crafted by marketers (and should be cohesive across ALL decisions a company makes)
15
How to Position Yourself?
Be first, Find something to be first in, A well focused specialist: one product, one benefit, one message
15
Conventional wisdom means
What "everyone knows".
15
primary means of creating downstream value are two:
reducing costs and risks for customers
15
High failure rates for new products suggest that companies are continuing to invest heavily in product innovation but are unable to move...
customers’ purchase criteria.
16
Market change can be (3 būdvardžiai)
evolutionary, generational, or revolutionary.
- Evolutionary changes improve existing products (more horsepower/better fuel efficiency)
- Generational changes introduce new criteria that complement old ones and create new market segments (sugar-free drinks/hybrid vehicles).
- Revolutionary changes make old criteria obsolete and shift expectations (Nintendo Wii controllers/touch screens in smartphones).
17
unassailable
1. neįveikiamas
2. nesugriaunamas
17
The downstream tilt impacts three types of companies:
Product-focused companies (tech, pharmaceuticals) that see downstream value creation as a way to gain competitive advantage.
Companies in maturing industries that seek differentiation through methods other than products or production.
Companies aiming to move up the value chain by leveraging downstream activities to create new customer value and lasting differentiation.
17
Concept testing is defined as
“The most important question you ask in concept testing is intent to purchase,” said Lodish. “Would you buy this product?
18
DEB factor
Desirability, Exclusiveness, Believability (are the product claims credible?)
19
The most useful method of concept testing for pricing is
“monadic testing,” where a respondent is exposed to only 1 concept and then gives a direct response, such as, ‘I really like that,’ ‘I’d buy that’ or ‘I’d never buy that.’
## Footnote
ČIA BAIGIAS M1
20
Types of Value to the Consumer
* Functional value (also called *performance* value)
* Economic value (also called *price* value)
* *Psychological* value
21
Customer value =
Total Benefits -Total Costs
22
The godfather of motivation
Abraham Maslow. * Humanistic psychology: a study of the human mind that emphasized positive deviations from the norm.
23
Deficiency Needs:
Psychological, Safety, Love/Belonging, Social/self esteem.
Characterized by tension reduction:
* Anxiety/distress when they are not met when
* A sense of relief when they are met
* Deficiency needs can become neurotic needs (impossible to meet the need)
* Marketers can and do activate deficiency needs
24
Physiological arousal:
A strong visceral state that occurs when physiological/safety needs are not met. A stress response. Pain/ hunger / anger as a response.
25
Empathy gap:
Low understanding between hot states (pain, hunger, anger) and cold states (calm, relaxation). When you're not hungry you can't remember what is feels like to be hungry doesn't matter how many times you've been hungry.
* Past, future, across people
* Human understanding is state dependent
26
Growth need:
* No diminishing marginal utility - kiekvienas piešinys pvz toks pat smagus, ne kaip su sausainiais. Just loves doing it for sake for doing it.
* Need gets stronger as they are pursued
* Pleasure comes from pusuit of these needs (rather than fulfillment)
* Activation feels good (unlike deficiency needs)
* Less urgent, but equally innate orientiation to strive for these needs
* Gratifying higher needs produces greater satisfaction, happiness, a fuller life
* More tied to our identities, self-expression
27
Self-actualization
The process of achieving our full potential.
Consumers want to be the best version of themselves.
* How you help your customers AND employees?
28
Interviewing technique "laddering" probes consumers’ initial stated preferences to
identify what’s driving them.
29
Net Promoter Score (NPS)
a widely used metric for customer loyalty and advocacy
30
Brick-and-mortar businesses
an organization or business with a physical presence in a building or other structure.
31
Idiosincrasy is
behaviour or way of thinking peculiar to an individual.
32
negligible
so small or unimportant as to be not worth considering; insignificant.
33
ameliorate
make smth bad better
34
question to ask to go from features to benefits
so what?
35
ELM
Elaboration likelyhood model. The “dual process model” most directly related to marketing.
36
Every communication decision depends on
consumer’s elaboration.
37
MOA
Motivation, opportunity, ability
38
The goal of good primary market research is to
understand your customer rationally, emotionally, economically, socially, culturally, etc...
39
Primary market research
When you directly interact with potential customers to gain knowledge specific to your potential new venture.
40
Tribal marketing
segmenting based on beliefs, affinities and interests, instead of clustering by demographics such as age.
40
Hindsight Bias
Tendency to believe, after learning an outcome, that one would have foreseen it.
When we find out that something happens, it feels inevitable
* “I Knew It All Along” Phenomenon
- Leads to false trust in one’s own opinions
40
Qualitative vs. quantitative research
Qualitative research is exploratory research that helps you generally understand a topic. Quantitative research focuses on gathering specific data to prove or disprove the hypotheses created in the qualitative phase.
40
Secondary research
Material you get from sources other than the potential customer. It is indirect.
41
Overconfidence Bias
In the family of self-positivity biases.
- We tend to think we know more than we do
- Humans are usually more confident than correct.
42
Projection Bias/False Consensus Effect
People’s tendency to assume that others share their preferences, beliefs, values, and behaviors onto others.
* You are not the “average” consumer!
* In many cases, you do not represent the target market you’re trying to reach!
* Creating ads/products/etc. that appeal to you does not guarantee they’ll appeal to everyone.
43
Wisdom of the crowd
collective opinion of a diverse and independent group of individuals (rather than that of a single expert) yields the best judgement.
43
Confirmation Bias
Selectively searching for evidence that supports your pre-existing beliefs.
44
The #1 Rule of Market Research
Have clearly defined objectives that lead to actionable conclusions
45
Response bias
People may be biased in response to your question.
* The way it is asked (e.g., leading questions, double barreled questioned)
* The responses you provide
* The context surrounding the question (e.g., surrounding questions, asking in person vs. online)
45
Selection Bias/Sampling Bias
The people you interview may not be a valid representation of your target customer.
45
Anchoring
When shown what a product or service costs before the promotion alongside the sale price, the initial price acts as an anchor. ARBA KITAIP: how someone says a high numbr, viską imam lygint su tuo didesniu.
46
Loss aversion
losses go heavier on us than gains
46
diminishing returns
per laika dingta noras ir pan
47
THE ENDOWNMENT EFFECT
People get attached and feel like they own it already, vadinas once we own something, we value it higher.
| L6
48
Thought leadership
If you use content marketing enough, you become a thought leader who people turn to about a particular problem.
| L5
48
Marquee Brands
commercial brands that have achieved a high level of public awareness
| L6
49
Psychological pricing
pricing that considers the psychology of prices and how they are perceived (not simply the economics); the price is used to say something about the product.
| L6
49
Compromise effect
an increase in the choice share of a focal option after it becomes intermediate following addition of a new extreme option to a set.
| L6
49
Sunk costs
costs that have already been incurred and which cannot be recovered.
| L6
50
mark up of a retailer
add a certain amount to the cost of goods to cover overhead and profit. (su vynų kainom pvz)
| L6
50
Lenient
švelnus
| L6
51
Endowment Effect: 6 best Practices
* Make items feel hedonic (rather than utilitarian)
* Offering lenient return policies is usually profitable
* Make your customers feel like they own it already
* Allow customers to touch and play with your product
* Use language and images that activate the senses (digital haptics)
* Use augmented reality
* Offer customization
| L6
52
Prestige/Luxury Pricing
takes advantage of the buyer’s assumption that one brand’s product is of a higher quality than the competitors because it costs more.
| L6
52
Luxury pricing best practices
* Create psychological value
* Be consistent with image
* Don’t discount!
* Use many of pricing tricks we’ve discussed, but in reverse
| L6
53
Veblen good is a
a type of luxury good for which the demand
increases as the price increases.
| L6
54
Robert Cialdini
Persuasion Expert
| L7
55
cognitive dissonance
our beliefs and behaviours conflict, so we shift one of them (mostly beliefs) to restore the idea of consistency.
| L7
56
The Halo effect
When one positive characteristic implies other positive characteristics. Attractive => smart, honest, etc.
| L7
57
Mere exposure effect
a psychological phenomenon in which people prefer things that they are familiar with
| L7
58
Affect missatribution
Kai geras oras atrodo, kad ir žmogus su kuriuo sėdi fainesnis, o iš tikrųjų tiesiog esi happy:D
| L7
59
KPI
key performance indicators (don’t use to many, too little, the wrong ones). Use SMART goals to make sure all goals are made well.
| L8
60
Advertising
Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.
61
KPI
Key performance indicators
61
Viral marketing
A promotional strategy that relies on content propogating through existing social networks (without additional marketer intervention)
62
Preference shaping
Firms succeed by shaping, not just responding to preferences
