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MBA B716 Marketing 2 > B716 Marketing 2 > Flashcards

B716 Marketing 2 Flashcards

1
Q

Zeithaml et al 1996 identified which 5 key consumer behaviours?

A
  1. Product adoption/purchase
  2. Repeat purchase (relationship marketing emphasises the benefits of customer loyalty and repeat purchase)
  3. Switching behaviours (rise of brokers?)
  4. Word-of-mouth behaviours eg review sites such as TripAdvisor
  5. Complaining behaviour - many orgs now actively solicit complaints as part of customer feedback
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2
Q

Kotler and Armstrong (2008) classified determinants of behaviour in which four ways?

A
  1. Psychological - beliefs, attitudes, motivation
  2. Personal - Age, lifecycle stage
  3. Social - reference groups, family, roles and status
  4. Cultural
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3
Q

Psychological factors of marketing

A

Maslow - self esteem and esteem of others

Many consumer choices are motivated by a need for esteem rather than a purely functional basis

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4
Q

What are the three main elements of an attitude?

A
  1. A cognitive component (beliefs/knowledge)
  2. An affective component (feelings)
  3. A conative component (behavioural)
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5
Q

Social factors of marketing

A

Reference groups provide norms and values that influence behaviour, peer group pressure, family

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6
Q

What is a DMU?

A

Decision-making unit or buying centre eg the family. Useful to determin the role of indivs in family decision making eg pester power

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7
Q

What are the benefits of Ansoff’s Product/Market matrix?

A

It forces market planners and management to think about the expected risks of moving in a certain direction
It lays out possible strategies for growth
Discipline: it focuses the business
Sets out aims and objectives
Presentable to stakeholders
Assessment of alternatives- shows opportunity cost
Creates a risk aware culture
Indicates level of risk and relevant risk

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8
Q

What are the limitations of Ansoff’s matrix?

A

Fails to show that market development and diversification strategies require a change to every day running of the business
Only a theoretical model
Does not take into account the activities of external competitors
Paralysis by analysis
Plans too optimistic e.g. transferrable skills
Accurate predictions are difficult- unforeseen events
Conflicting objectives of stakeholders

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9
Q

Evaluation of Ansoff’s matrix

A

It is useful in conjunction with other theoretical models. The role of the matrix is to provide an outline of alternative methods of achieving the final goal - growth

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10
Q

What is Ansoff’s matrix? (1957)

A

Ansoff’s Matrix is a marketing planning model that helps a business determine its product and market growth strategy.

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11
Q

What is market penetration?

A

Market penetration is the name given to a growth strategy where the business focuses on selling existing products into existing markets.

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12
Q

What is market development?

A

Market development is the name given to a growth strategy where the business seeks to sell its existing products into new markets.

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13
Q

What is product development?

A

Product development is the name given to a growth strategy where a business aims to introduce new products into existing markets. This strategy may require the development of new competencies and requires the business to develop modified products which can appeal to existing markets.

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14
Q

What is diversification?

A

Diversification is the name given to the growth strategy where a business markets new products in new markets. - more risky eg Coca Cola going into clothing. Diversification can be related or unrelated.

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15
Q

What is the product life cycle (PLC)?

A

The PLC describes the stages a product goes through from when it was first thought of until it finally is removed from the market, in terms of its cash cases and profits. Not all products reach this final stage. Some continue to grow and others rise and fall.

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16
Q

NPD

A

New product development

17
Q

What are the four stages of the PLC?

A
  1. Introduction - lowest point on curve is here
  2. Growth
  3. Maturity - highest point on curve is here
  4. Decline
18
Q

Introduction PLC

A

Product new on the market, prices may be high (market-skimming pricing) or low (market-penetration pricing). High costs and relatively little revenue typically result in financial losses at this stage.

19
Q

Maturity PLC

A

Typified by intense competition and eventually a saturated market. Market share increased by switching possibly through intense price competition. Suppliers attempt to add value

20
Q

Decline PLC

A

Customers find alternative products, prices may fall, competitors may begin to leave the market. Profitabilitiy likely to decline and losses may occur

21
Q

Growth PLC

A

Customers aware of product and sales increase. Early adopters buying, word of mouth spreading, competitors move in, marketing focuing on new customers, new distributors approached. Profits grow as revenue increases and scale economies begin to reduce costs.

22
Q

What are the benefits of the PLC model

A
  1. Highlight the need for a portfolio of products at different stages of the life cycle
  2. Suggest how marketing strategies and tactics should change at each stage of a product’s life
  3. Can help with financial decisions and planning, eg cash-flow planning
  4. Helps identify customer needs in terms of communications and information at a particular stage
  5. Helps develop performance measures in terms of market share and product profitability
23
Q

What are the limitations of the PLC model?

A
  1. Can be difficult to identify stages in time eg fluctuatiohn in sales vs beginning of decline
  2. The PLC deals with product forms whereas orgs generally focus on brands which may be more erratic
  3. Some products do not follow the traditional PL, eg fads and fashions such as Rubik’s cube may have steep growth, short maturity and rapid decline. Or products may have several life cycles.
  4. Products may fail and never enter growth or maturity
  5. PLC doesnt take into account external factors eg competitor activity, tech develoments
  6. No indication on length of stages
  7. Mature products are not always profitable as assumed by the PLC. Can be expensive to defend market share
  8. Self-fulfilling prophecy - org may allow product to decline rather than regenerating through increased advertising or product modification
  9. Focus on indiv products rather than portfolio
24
Q

Evaluation of the PLC model

A
  • The product life cycle model is by definition simplistic. It is used to predict a likely shape of sales growth for a typical product.
  • Whilst there are many products whose sales do indeed follow the classic shape of the life cycle model, it is not inevitable that this will happen.
  • For example, some products may enjoy a rapid growth phase, but quickly move into a decline phase if they are are replaced by superior products from competitors or demand in the market overall declines quickly.
  • Other products with particularly long life cycles seem to enjoy a maturity phase that lasts for many years.

MBA B716 Marketing 2 (1 decks)

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