All Notes Flashcards
Name the three mental states
Cognitive: Highly logical, lots of research
Affective: Emotional
Conative: Little thought, product is purchased for a trial then repeated
What is the consumer acquisition decision making process?
A model for cognitive decisions:
1. Recognise the Problem
2. Gather Information
3. Evaluation of Alternatives
4. Product Choice
5. Product Purchase
6. Post Purchase Evaluation
How can consumers reduce cognitive dissonance?
Selectively forget bad information
Minimise the importance of an issue/decision/fact
Selectively expose ourselves to viewpoints that agree Return the product
How can marketers use the consumer acquisition decision making process?
- Show consumer the current state of their product does not match the desired state
- Place the information in an easy to access and common place
- Understand the criteria customers use to make decisions and base the previous information around it.
- Understand choice heuristics and encourage decisions
- Encourage accurate consumer expectations
What is affective purchasing based on?
Emotions, the socio-cultural environment, symolic meaning
What model is used for Conative decision making?
ATR: Awareness, Trial, Repeat Purchase
Define and explain, in brief, the internal factors for consumer decision making.
Perception: Selective exposure
Learning: Classical, Operant and Social Learning
Memory: Remebering logos, slogans, brands
Personality: Psychoanalytic, Trait and Self-Concept
Motivation: Maslow’s Hierarchy of Needs
Explain the three types of conditioning.
Classical: Responding to stimulus e.g. smell of bread
Operant: Behavioural e.g. loyalty cards
Social Learning: Copying others (EWOM)
Define and explain, in brief, the external factors for consumer decision making.
Opinions: Cognitive, Quick Response Attitudes: Affective, Stronger Values: Conative, Even stronger Group Influence: Reference Groups Social Classification System: Lifestyle, age, class
How can marketers use Group influence?
Celebrity endorsement, EWOM
Name the social classification system groups.
Social economic class Lifestyle Lifecycle Age Social Class Culture Geodemographic
What is the marketing planning process?
A loop: Where are we now? Where would we like to be? How could we get there? Which way is best? Are we on course?
Name the acronym used for a macro audit.
PESTLE Political Economic - Recessions Social - Cultural Technical - New technology (utilised / threat) Legal - New laws Ecological - Disposal of products
Name the factors used in a micro audit.
Market size? - Growing/Shrinking
Customers - What do they want? Who are they?
Competitors - Examine both real and potential
Distributors - How product gets to consumers?
Supplies-Changing prices?
What is a SWOT analysis?
Strengths and Weaknesses - Internal
Opportunities and Threats- External
What is Ansoff’s grid?
Current = Low Risk, New = High Risk
Current Market, Current Product: Market Penetration
Current Market, New Product: Product development
New Market, Current Product: Market Development
New Market, New Product: Diversification
What are the three strategic marketing goals?
Hold
Defensive against aggressive competitors,used by market leaders
Harvest:
Mature markets in decline, goal: maximise profits
Divest
Low market share in declining markets, market withdrawal
Name a few performance metrics.
Profitability, Sales Volume, Margins, Consumer Satisfaction, Availability
Why bother to segment markets?
Wasteful to target everybody Identify target market so you can meet their needs Allows for product differentiation Identify opposites and threats Firms have limited resources
What is the STP process?
Segmentation: Identify groups of similar consumers
Target: Identify which groups to aim for
Positioning: Appeal to targets
How can we segment a market?
Behavioural, Psychological and Profile
Name the subsections of behavioural segmentation.
Benefits sought, purchase occasion & behaviour, usage
Name the subsections of psychological segmentation.
Lifestyle, Personality
Name the subsections of profile segmentation.
Demographics, lifestyle, geography & geodemographic
How do marketers decide which market to target?
The market should be DAMP
Distinct, Accessible, Measurable and Profitable
Name the key stages of the history of marketing.
Production Period (1890’s to 1920’s)
Sales Period (1920 - 1950)
Marketing Period 1950 - 1980
Societal Marketing Period
Name the key features of the Production Period (1890’s to 1920’s).
Focus was on mass production
Demand exceeded supply
Little competition
Thus consumers had to buy what was available
Name the key features of the Sales Period (1920 - 1950).
Flourishing mass production
Supply exceeded demand
Products promoted their functional value
Edward Bernays paid people to show of his products
Name the key features of the Marketing Period 1950 - 1980.
Focus was on the needs of the consumer
Shift from product to consumer
Name the key features of the Societal Marketing Period
Importance of ethical and environmental concerns e.g. recycling
What are they key features of retro marketing.
Limited availability Keeping thing back for uncertainty Stimulate demand Exclusivity Secrecy
What are the three propositions?
Core: Absolute critical point to be provided e.g. car drives
Embodied: Features and capabilities e.g. design, brand name
Augmented: Factors that support a purchase e.g. credit
What are the stages of a product life cycle?
Development, introduction, growth, maturity, decline
What are the key characteristics of a service?
Intangibility
Substitute Ques: Aid in identification
Perish-ability: Spare capacity cannot be stored
Variability: The amount of diversity in each stage of provision
Inseparability: Instantaneous production&consumption
Lack of ownership: Services cannot be owned
What are the substitute ques used for a service?
Intrinsic Ques - Draw directly from service / itself -cannot easily be changed
Extrinsic Ques - Surrounding the service - can easily be changed e.g. Other people’s views
What are the three stages of the service marketing mix?
Process: May deisgn a serivce blueprint to refine
People: Employees create variability (bad/good)
Evidence: Reliance on ques, two forms.
Essential: A menu
Peripheral: Decoration
What are the benefits to customers a brand provides?
Estimate quality Assist identification Providing Source: Country of origin effect Reduce Risk Reassurance
What are the main areas of a risk a brand can reduce?
Time Risk - How much time do I have to make a decision
Financial Risk-Can I afford this?
Social Risk - What will peers think of my purchase
Functional Risk - Will it do what I want it to do? Physical Risk- Will there be risk of harm to myself?
What are the three types of brand coverage?
Individual Brand: Branding for one Product
Family Brand: Branding for collection of goods (Heinz)
Corporate Brand: Branding for the company (Levi)
What are the five dimensions of a brand personality?
Sincerity: Honest, Wholesome Excitement: Daring, Imaginative Competence: Reliable, Intelligent Sophistication: Upper Class, Ruggedness: Tough
What is brand Extension & Stretching?
Extension: Use a brand name on a new product in a current market
Stretching: Use a brand name on a new product in a new market
Name 3 Channel Structures?
Direct: Sell to Consumer
Indirect: Sell to distributor
Hybrid: Both
Name 3 types of channel intensity.
Intensive: Distribute through every reasonable outlet
Selective: Some but not all
Exclusive: Distribute through a single retailer
Name the three types of channel conflict?
Horizontal: At the same level, impinging on each others market territory
Vertical: Between producer and retailer, prices, promotions
Multi channel: Competing in the same market, Grey Marketing
How do retailers add value?
Provide assortment - choice Hold inventory Available to touch / experience Store location and parking Retailer ambience & Image - Aesthetics Added services - Warranty
What are some major store types?
Supermarkets Department stores Online retailers Automatic vending Discount houses Category Killers
Why use multi channel retailing?
Exploit unique benefits of each channel properties
Customer wants to interact in different ways
Each channel offers a unique set of benefits
In Store: Browsing, Touching
Online: Comfort and convenience
What are the key decision variables for retailers?
Customer Service Merchandise Assortment Primacy of location Communication Mix Pricing Store Design & Display
What are the key points of the customer service decision variable?
Point of differentiation
Can achieve clear, competitive positioning
Physical Store: Store Hours, Parking
Online: Amazon Wish list, Gift Wrapping
What are the key points of the Merchandise Assortment decision variable?
Products on Sale - and the way in which they are displayed
Assortment varies in terms of:
○ Breadth – the number of different product categories sold
○ Depth – the number of different brands and variants sold within a product category
What are the key points of the Location decision variable?
Store Types: Destination & Parasite
What is the SOR Model?
Stimulous: Cognitive Processes
Organism: Emotional Response
Response: Response Behaviours
What are the four types of approach/avoidance behaviour?
Physical
Exploratory
Communication
Performance
What are the internal states of emotional response?
Pleasure / Displeasure: The degree to which the person feels joyful, happy or satisfied
Arousal / Non-arousal: The degree to which the person feels excited, stimulated, alert or active
What are the four ambient conditions?
Visual, Aural, Olfactory & Tactile
What are the main points of the visual ambient condition?
Colour - Different colours create different moods
Brightness
Shapes
Lighting - Highlight, Structure space and downplay
Size
Can all manipulate behaviour, communicate store image and improve perceived merchandise quality
What are the main points of the Aural ambient condition?
Perceptions of store & emotional response can be associated with music Volume: Too loud is bad Pitch Tempo: Slow increases time in store Style
What are the main points of the Olfactory ambient condition?
The conditioning of indoor environments using aroma technology e.g Bread in Supermarkets
Odours are difficult to identify and highly subjective
Therefore require neighbouring cues to identify odours e.g. Lemon scent in yellow container
What are the main points of the Tactile ambient condition?
Access to product: Judge Quality
Temperature: Must be comfortable, both for staff and consumer
Sales personnel can use touch to increase customer co-operation tips are higher when touch is used in the sales interaction.
What are marketing communications
Advertising and promotion
What are marketing communication campaigns
The planning, design, implementation and evaluation of a co-ordinated range of activities
What are the four types of marketing communications?
Planned
Service - Experience Based
Product Experience Based
Unplanned
What is the linear model of communications?
Source -> Encoding -> Message -> Decoding -> Receiver _-> Feedback
Noise may disrupt along the way
What are the limitations of the linear model of comunication
Risk of oversimplification
Emphasises a singular message that has one, unproblematic meaning Assumes that human brains can only process one bit of data at a time
What is the two step model?
Mass media communicates to opinion leaders who then guide others
What is the interaction model?
Receive information in multiple different ways from multiple different sources
The source is irrelevant aslong as the message is repeated
What are the objectives for marketing communications
The DRIP Model: Differentiate from competitors Reinforce brand loyalty To inform of a new product To persuade - change opinion
What are the two theorys on advertising?
Strong & Weak
Discuss they key points of the strong theory?
Advertising has a powerful influence that can increase knowledge, change attitudes, persuade and convert
Name the two sub models of the strong theory/
Awareness, Interest, Desire and Action
Hierarchy of effects
Evaluate the HOE Model
Benefits
Straightforward, simple and easy Provide a helpful template to evaluate
Drawbacks
People purchase impulsively
Critique the strong Theory
Little evidence consumers experience a strong desire before action
What about repeat purchases
What is the weak theory?
Suggests advertising is a much less powerful influence than the strong theory suggests
Brand choices driven by habit, not exposure to promotional messages
Advertising’s role is to breed brand familiarity and identification
What are the key challenges of Marekting?
How to reach consumers with a consistent & reinforced message across multiple channels in a fragmented media environment
Achieved through integrated marketing communications planning
Describe the Marketing Communications Planning Framework
Context Analysis - Promotional Goals & Positioning - 3 P’s of Promotional Stratergy (Pull, Push, Profile) - Coordinates Communications Mix - Implementation, control & Evaluation
Describe the Key Points of a context analysis
Customer - Target Audience (Needs, Wants, Perceptions & Media Habits)
Business - Objectives & Objectives for campaign
Internal Environment - What resources are available (finance and human)
External - Micro & Macro Conditons
What are the two types of campaign objectives and what must they be?
Communications - Related to levels of awareness and comprehension
Marketing - Market share, sales revenue
Must be SMART
What are the Key points of a Co-Ordinated communications mix?
Target Audience
Tools
Media
Content
What are the two types of tools? Give examples
Adverting & Social Media
Traditional: Sales Promotion, Direct Marketing, Personal Selling
Emerging: Product Placement, Experimental Promotions, Sponsorhips
What are the three classifications of communications?
Paid Media: Pays to communicate
Earned Media:Publicity when an influence promotes a brand
Owner: A business owns the chanel
Name some communication tools
Advertising, Sales promotion, Direct marketing, social media, sponsorship, WOM, Product Placement
What are the keypoints of advertising?
Print & Broadcast Media
Outdoors: Traditional e.g. static, Non Traditonal : Active Engangement
In Store: Shelf Advertising
Digital: One to One - Personalised
What are the key points of sales promotion?
Money off, secure the sale
What are the key points of direct marketing?
Contextual advertising: Insert relevant adds into webpages
Behavioural Communications: Insert adds based on search history
Behavioural Recommendation Engines: People Also Brought
What are the key points of personal sales, Public Relations & Social Media?
Personal Sales: Car salesman, live chats
Public Relations: Skydive from space
Social Meqdia: Increase engagement with 1-1 interactions
What are the key points of sponsorship?
Values transfered from sponsorship categories to brand
Sports: Healthy & Young
Highbrow Arts: Sophisticated & elite
Mass Arts: Young & Accessible
Socail Causes: Admirable & Concerned
Environmental: Caring; Concerned
What are the key points of WOM?
Highly Credible and Persuasive:
Brand Ambassadors: People who embody the corporate image in appearance (Paid)
Brand Advocates: A loyal customer who is engaged in active promotion (Unpaid)
What are they key points of product placement?
Significant growth in recent years due to:
Mass market reach, postivie associations, credibility, and targeting
What are the key points of experiential?
Emerging approach, brands provide consumers with memorable events that differentiate it from the crowd
Must apear as part of entertainment and now a promotion
What are the keypoints of planning a campaign?
Who is the target audience? Who should receive the messages? What is the campaign designed to achieve? What is the core message? How is the message to be delivered? What is the timing? Cost? What action should the receiver take? How will we know if it has been effective?
What factors influence price?
Brand name Functional attributes Exclusivity Fashion trends Materials Scarcity Costs of production
How are prices determined
Accounting - Costs of production
Economics - Supply and demand
Psychology - Perceptions
Marketing role - To manipulate price to achieve higher profits whilst maintaining satisfied customers
What is a distressed purchase and what effect does this have on price?
A distressed purchase is made whilst stressed under small time constraints, it will result in a higher price
Discuss the relationship between price and quality.
Weak relationship between price and quality
Perceived quality = Quality/Price
To change perceptions, lower price or increase quality`
What are the key points of price perception formation?
Antecedents: Prior Beliefs, Prior Reference Prices
Price Perception: Influenced by: Reference prices, quality perception, brand loyalty
WTP: Influenced by: Perception of price fairness, latitude of price acceptance
Purchase Behaviour: Influenced by: Intentions, promotions,
What is an anchored reference?
The inital level at which perceptions are attached to
What are the main Pricing Approaches?
Value Orientated, Demand Orientated, Competitor Orientated, Cost Orientated
Discuss the main points of value orientated pricing.
Grounded in customers perceptions
The perceived value of attributes
Can be symbolic such as exclusivity
Discuss the main points of demand orientated pricing
Differential pricing - How much consumers are willing to pay
Travel classes
Price gouging occurs where you charge prices that are perceived as unfair
Discuss the main points of competitor orientated pricing
Prices set based on competitors prices
May use a price guarentee
May lead to price wars
Discuss the main points of cost orientated pricing
Considers COP + % Markup
Does not consider percieved factors such as brand image
What are the main pricing polcies
List pricing Loss-leader pricing Promotional pricing Segmentation pricing Customer-centric pricing Pay-what-you-want pricing
What are the objectives of pricing?
Financial
Marketing-based
Maintaining parity with competitors
Achieve social goals
What are the Ethical Values?
Honesty: forthright in dealings with customers
Responsibiltiy: Accept the consequences of our marketing decisions and stratergies
Fairness: Balance needs of supplier / consumer
Respect: Respect all stakeholders
Transparency: Create a spirit of openness in marketing operations
Citizenship: Fulfil the economic and societal responsibilities
What are the Ethical Tests?
Does this action…
Violate the law? (legal test)
Have harmful intent? (motives test)
Contrary to widely accepted moral obligations? (duties test)
Violate any other special obligations that the organization has? (special obligations test)
Likely to cause any major damage to people or organizations? (consequences test)
Infringe on property rights, privacy rights or consumer rights? (rights test)
Leave another person or group less well off? (justice test)
Is there a satisfactory alternative action that produces equal or greater benefits? (utilitarian test)
What are the key ethical concerns?
Product-centred issues
Honesty in relationships with customers and distributors
Truthfulness in marketing communications
The impact of marketing decisions on the environment and society
Describe the UK Regulatory Environement
Committee of Advertising Practice:
Certain products cannot be advertised at all, others cannot be marketed to children
Advertising is forbidden that: makes children feel unpopular, exaggerates a products performance, encourages pester power, undermines parental authority
What is culture Jamming?
Using satirical advertisements to mock firms and challenge unethical behaviour
What are the main concerns of CSR?
Physical Environment: Disposal, Sustainable Marketing
Community Environment: Charities, Cause related marketing
Consumers: Where are they produced, Societal Marketing
Supply Chains: Fair Trade
What are the main areas of critique for sustainable marketing?
Green Spinning, Green Selling, Green Harvesting, Envriropreneur Marketing, Compliance Marketing
What are the main points of Green Spinning?
Selectively release information to convince public of environmental commitments
What are the main points of green selling?
Identify environmental features in existing products
What are the main points of green harvesting?
Charging a premium price for green products
What are the main points of Enviropreneur Marketing?
A green product fails to do its job
What are the main points of compliance marketing?
Promote the fact they have complied with regulation, nothing more
Discuss cause related marketing
Firms give a proportion of revenue to charity, improving social welfare
Who benefits from CRM?
Corporation: Increase Sales, Build Brand Values, Enhance Reputation
Customer Benefits: Use purchasing power to support charity
Charitable Benefits: Raise Funds
What is societal marketing?
Consumer needs - Company Requirements - Long Term Social Needs
Discuss fair trade marketing
Makes consumers happier as they are supporting farmers, increases sales
Define Market Research
Market research is about gathering information to inform decision making through a number of different technologies.
What are the two types of research?
Quantitative - Statistics - Telephone Survey, Postal Survey, Online
Qualitive - Emotions - Interview, focus group
What are some reasons for not trusting customers?
Might forget if questioning them on past experiences
May give incorrect information if being asked to look forward to future
May lie to please you
What are the key charactersitcs of Big Data?A
Volume - Magnitude of Data
Variety - Unstructured v Structured
Velocity - Rate of Generation, Analysis and Acting
Veracity - Unreliability
Variability - Complexity
Value - Zero at Margin, needs combining and analysis
What are the four methods of analytics?
Text, Audio, Video & Social Media
