Before Midterm Knowledge 🌸 Flashcards

Question

What is a product line? A product line is {{ }}.

Answer 1

What is a product line? A product line is {{a group of products that customers could use together or is seen in a similar way.}}

Answer 2

To adapt products/ services to meet new challenges and opportunities due to changes in the marketing environment.

Answer 3

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What is the microenvironment in marketing? It is about the consumers’ microenvironment and it includes the {{company capabilities}}, the company’s {{competition}} and the company’s {{corporate partners. }} What does a company’s capabilities constitute? A firm focusing on its {{strengths}} to deliver a product/ service that satisfies consumers demands and needs. What does the competition element constitute? More competition means that customers have more choices; there are more options and different companies to choose from. Important for companies to watch out for their competitors. Specifically, their strength and weaknesses. Gotta watch out for competitors to make sure that the firms can continue to do well or find opportunities to do better. Make sure that their market share or market growth isn’t dominated by someone else. What does corporate partners constitute? {{Other firms that work with that firm}} are called “corporate firms”. For example, when a firm needs to buy a part for a product they produce from another firm then this other firm is a corporate firm. Not only parts but advertising, consulting services… The focal company can work closely together with their corporate firms to {{c6::innovate}} (get materials for an innovative and sustainable jacket).

Answer 6

What are macroenvironmental factors? It includes {{culture}}, {{demographics}}, {{social trends}}, {{technological advances}}, {{economic situation}}, and {{political/legal environment}}. Additionally, it should include {{Nature}} (climate change, biodiversity, nature disasters are natural factors can affect businesses and consumers in the long-term -> CDSTEPN.

Answer 7

What does Culture constitute in the microenvironmental factors? Culture is {{shared meanings, beliefs, morals, values and customs within a group of people.}} The challenge is to create and have products that are relevant and valuable to a particular culture/ group of people. Additionally, culture affects what, why, how, where and when they buy products. What does Country culture constitute? {{Easy to spot differences}} that are particular to a country, such as attire, symbols, celebrations, language, food preferences and other smaller elements that may be harder to identify. What does Regional Subcultures constitute? There are also differences between {{different regions in a country}}, which means they react differently to products compared to other regions because of differences in values for example (valuing good food vs not [more prompt to eat pre-packaged food]). Also different words for the same thing. Marketers need to take that into account.

Answer 8

What does Demographics constitute in the macroenvironmental factors in marketing? {{Characteristics of the human population.}} Marketers use this information to better understand the wants and needs their customers to bring better value to them. What does Generational cohorts constitute? {{Groups of people that have similar purchase behaviours}} because they have had {{similar life experiences}} and are going through {{the same stage in life.}} For example: Generation Z (digital natives, social media ads, social justice is important, we want brands to take action and give back to the planet), Y (millenials, skeptical about what they hear in the media, challenging to market to, expect social responsibility from firms), X (less interested in shopping, less likely to believe advertising and salespeople, they trust word-of-mount more), baby boomers (they value staying youthful in attitude and appearance [good for anti-ageing products etc.]). What does Income constitute? {{Upper class}} (10% of CND pop; luxurious, not affected much by economic conditions), {{middle class}} (38% of CND pop; good life, more careful about spending, conscious), {{low-class/ working class}} (14.2% of CND pop; barely meeting their basic needs). What does Education constitute? Education leads to better jobs = higher incomes. Putting together education level, income level and occupation data together, marketers can understand the {{behaviour of purchases}} for a specific group of people with similarities between all that. What does Gender constitute? Being aware of changes in cultural gender roles. They affect {{how}} products are promoted, advertised etc. What does Ethnicity constitute? A challenge to understand the culture, value and spending patterns of various groups and finding the best ways to communicate with them. Ethnicities: Chinese, Mexican etc. Products adapt to the needs and wants of the customers in that area.

Answer 9

What does Technological Advances constitute in the marketing macroenvironment? Advances in technology makes it {{easier}} to interact with customers, retailers, and manufactures, to make smart personalizations for customers, and “add new channel of access” (accessing deals?) which makes customers more loyal. How does Artificial Intelligence connect with marketing? {{Computer systems that do tasks that would require human intelligence before}} (decision-making, speech recognition, translation). Companies using it to better do customer segmentation, media selection etc.” How does Robotics connect with marketing? Robotics are applications in distribution and fulfillment centres used to help with orders in making it or keeping track of inventory for example. What does the Internet of Things constitute? “Smart devices” linking up together through interested combine their data to better give to consumers or help companies make better-decisions.

Answer 10

What does the Economic Situation constitute in the marketing macroenvironment and how does it connect to marketing? Economic situations (in the home country and abroad) impact {{ spending behaviours.}} Example: {{rate of inflation}}, {{foreign current exchange rates}}, interest rates and recessions. Marketing changes to reflect how customers purchasing behaviour changes due to economic situations. What is inflation? Inflation in the persistent {{increase}} of the price of goods and services - the dollar value decreases. What are interest rates? The {{cost of borrowing money}} (specifically, the interest is the cost that borrowers need to pay). Banks make the interest lower so that people borrow money and spend more money so that the economy continues.

Answer 11

What does the Political/ Legal environment constitute in the marketing macroenvironment? Affects trade and marketing activites through legislation about fair competition, consumer protecting or specific industry legislations. Regulations can pose a threat to marketers or be opportunity (become an opportunity for them, they can sell a service that supports the legislation).

Answer 12

What do Social and Natural Trends constitute in the macroenvironment and how does it influence marketing? Social and natural trends affect {{consumer’s values}}. Making companies visibly want to show that they are supporting certain {{trends}} (being environmentally friendly, 17 Sustainable Development Goals, inclusion), for example, that they are being good to the planet by putting a Fairtrade mark on their product. Trends can become a {{positive opportunity}} for action or a {{threat}} (trends against fast fashion affect big clothing companies). What is a Fairtrade Certification Mark? A certification granted to product that work towards {{promoting sustainable farming}} and {{improve social and environmental standards for producers. }} What constitute Greener consumers and how it affect marketing? Green marketing is an {{effort to supply environmentally friendly products}} to customers.

Answer 13

What are the 5 steps in the marketing research process? 1. {{Define the research problem and the objectives.}} 2. {{Design the research plan.}} 3. {{Collect the data.}} 4. {{Analyze the data and develop insights.}} 5. {{Determine the action plan.}}

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What is market research? Marketing research are {{techniques}} and {{principles}} to collect, record, analyze, and interpret data to help make {{marketing decisions.}} Helps them make decisions on the {{4Ps.}} Highlight {{opportunities}} (condition that can lead the action that create new ways of fulfilling customers new and wants), helps {{understand current customers}}, and attract {{new ones. }} Findings are valuable for {{decision-making}} and reduces {{uncertainty}} in projects.

Answer 15

What does Step 1: Define Research Problem and Objectives of the Marketing Research Process constitute? Define research problem: Important to define the problem {{correctly}} to find the correct {{solution}} to then do market research that'll actually help. Not on questions that market research {{can't answer}} or questions {{where the answer is already known.}} Define the research objectives: Important for them to be {{well defined}} to {{find the right things.}}

Answer 16

What does Step 2: Designing the Research Plan of the Marketing Research Process constitute? Identifying the {{type of data}} needed and {{how}} one’s going to {{get}} it.

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What does Step 3: Collect Data of the Marketing Research Process constitute? Step 3 includes collecting the data which can be from {{secondary}} or {{primary}} sources. Secondary data: Information {{already available}} before the research project. Primary data: Data collected for the {{specific research need}}. Information that the research marketers find themselves throughout the research project.

Answer 18

What does Step 4: Analyze Data and Develop Insights of the Marketing Research Process constitute? Analyzing/ interpreting the data to get {{insights}} from it. Data: {{Raw}} numbers, {{c3::factual}} pieces of information. Information: {{Data interpreted}} (which gives insights into patterns in consumer purchases for example). Information is then used in {{marketing decisions.}}

Answer 19

What does Step 5: Determine Action Plan of the Marketing Research Process constitute? Creating an action plan based on the {{insights}} of the {{data collected}} to create more {{value}} for customers.

Answer 20

What is secondary data? Data coming from {{external}} sources, or {{buying}} specific secondary data from specialized research firms or {{accessing}} internal sources in the company (sales invoices, customer lists, and other reports that the company generates). Data made already in the {{past}}. What is internal secondary data? Lots of pieces of individual data on {{customer information}} and {{purchase history}} in a company’s database. What is data mining? Tools (statistical tools) that {{uncover}} {{patterns/ relationships}} in the data. Data is collected and then it is {{mined}} for {{insights.}} Data mining is used to better understand customers which then helps them make better {{decisions}} in their marketing {{strategies}} (example, which movies/ TV shows to recommend to customers who like watching the romantic genre). What is big data? Big data are data sets that are {{too large}} and {{complex}} to analyze with conventional data management software (sales transactions, customer relationship management (CRM) systems, websites, social media, locational devices stored in large computer files known as data warehouses). Can data mine these to find previously unknown pattern/ insights. What is the volume of big data? Big data has a large amount of data. Using data to make {{recommendations}} to millions of {{similar}} customers so they can make sales/ recommend them products that would be of value of them. What is the variety of big data? There are lots of different {{types}} of data (numeric [purchases, demographics], qualitative [thoughts and feelings]…) What is the velocity of big data? Pertains to how {{fast}} data can be {{collected}} and how {{fast}} marketers need to respond to its insights. What is the veracity of big data? There are different degrees of {{accuracy}} and {{reliability}} from different data (from different data sources for example). What is external secondary data? Data accessed from external sources. Might not be completely relevant to the research question at hand since data was initially acquired for another purpose. For example: Statistics Canada What is syndicated data? Data available for {{free}} from {{commercial research firms}} like IRI, National Purchase Diary Panel, Nielsen, and Léger Marketing. Can include prices of various products, sales figured, growth or decline in product categories, and advertising and promotional spending. What is scanner data? Data derived from {{scanner readings}} of UPC codes at checkout counters. Keeping track of purchasing information can provide valuable insights into a variety of questions (like how much quantity purchased changed after a 10% decrease in price). What is panel data? Information collected from a {{group of customers}} (a panel) over time. People {{followed}} over time. Can use many research methods on them. Working with them. For example, their purchasing data (secondary data) and their responses to survey questions (primary data). Shows what customers are buying and what they are not buying.

Answer 21

What are some primary data collection techniques? Primary data is data collected specifically to {{address the specific research question. }} Data collected “now” for the research goal. Can use both a {{qualitative}} or {{quantitative}} approaches to get this data. Benefit: Can be tailored to fit the {{research questions}}. Cost: More {{costly}}, usually takes {{longer}}, marketers need lots of {{training}} and {{experience}} to collect that in an {{unbiased}}, {{valid}} and {{reliable}} way. What is reliability and how does it connect to primary research? The degree of getting the {{same}} result if the study is done {{again}} and {{again}}. Are the results (the data) a good {{estimation}} of the {{truth}}? What is validity and how does it connect to primary research? The degree that a study measures {{what is it supposed}} to be measuring. Does it actually {{measure}} what we want?

Answer 22

What is the difference between quantitative and qualitative data? Quantitative data is {{objective}} (not influenced by personal feelings) and {{numerical}}. Qualitative data is more {{subjective}} to the consumer and {{open-ended.}}

Answer 23

What is a sample in research? A {{subset}} of a population that {{represents}} the entire population of interest. Important to know {{who}} should be surveyed, how {{big}} the sample should be and the {{types}} of sampling procedures to use (there are many different types of ways to sample: clustered sampling, and convenience sampling and they all have their disadvantages and advantages). The size should be {{large enough}} for the study to be {{reliable}} (getting approximately the same results each time). What is a hypothesis? A {{statement}} proposing a possible {{relationship}} between {{multiple variables.}} For example: “Customer satisfaction leads to or is positively related to customer loyalty.”

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What are some research methods? What is observation and how does it work? Examining {{purchase}} and {{consumption}} behaviours through personal means or the use of technology (video camera, tracking customer’s movements electronically). Observing customers as they shop. Benefit: Get to see what people {{actually}} do, finding {{insights}} that you didn’t know you’d find/ what of what was going on. Cost: One’s own {{bias}} can get in the way of what is actually happening. One’s interpretation. Also, people can change their {{behaviour}} when they are being watched. What is ethnography and how does it work? A study that observes people in their {{daily lives}} and activities in their homes, work and communities. Used to understand {{how}} customers use a {{product}} or get {{insight}} that customers might not be able to {{articulate}} otherwise. Video cameras, audio recording devices and diaries to keep track of observations. Can be the only way to understand how consumers might use a product. How is social media a method of research? Lots of {{data}} in social media sites for marketers (quantitative). Could ask open-ended, subjective questions (qualitative). What constitutes in-depth interviews and how are they beneficial? In-depth interviews include asking participants {{open-ended}} questions (done by skilled interviewers) to understand {{consumer behaviour}}, {{preferences}}, {{motivations}}, and {{opinions}}. Can help them understand what market segment to target, can get immediate feedback for new concepts (new products, new advertisements). What are focus groups interviews and how are they beneficial? Usually a {{small}} group of people (8-12) come together to talk {{in-depth}} about a topic. Moderator guides the conversations to hit specific topics of interest. It is video recorded or audio recorded to trace back patterns from verbal and non-verbal cues to find {{insights}} on initial reaction of new or existing products, opinions of different competitive offerings or reaction to marketing stimuli, for example. What is a survey? Popular to be used for studying consumers’ {{attitudes}}, {{preferences}}, {{behaviours}}, and {{knowledge}} about products and brands. Questions. Its answers can be {{easily}} analyzed with statistical insights to find patterns, relationship between variables and insights. Problems: When survey takers don’t answer all the questions, when they answer the question based on what they think that the research wants, when they can’t remember the information that the survey is asking for, or when they interpret questions differently than how the researchers wanted to ask. Also important to find what people actually do what they say because they might not do as they say. What is a questionnaire? Set of questions to get information that hit the goals. What are unstructured questions? A questionnaire format where questions are asked in an {{open-ended}} way where respondents can use their own {{words}} to answer. What are structured questions? {{Close-ended}} questions where a set of specific {{responses}} is given to the respondent to choose from. What is panel-based research? Group of {{individuals}}/ households that represent a {{target population}} that are studied over an {{extended}} period of time using various {{research}} methods to understand changes in {{consumer}} behaviours, {{consumptions}} patterns and {{preferences}}. What is scanner-based research? Collecting data from point-of-sale transactions (scanners at the counter) that includes product's {{price}}, {{quantity}} and location. Analyzing data to get insights into {{consumer}} behaviours. Researchers can identify {{trends}}, popular products, seasonal {{variations}} etc to help make {{pricing}} decisions and {{marketing strategy}} decisions. Keeping track of purchasing information can provide valuable insights into a variety of questions (like how much quantity purchased changed after a 10% decrease in price).

Answer 25

What factors influence consumers’ buying decisions? What consumers decide to buy is influenced by many different elements. This constitutes internal factors such as their {{c1::motives}}, their {{c1::attitudes}}, their {{c1::perceptions}}, their {{c1::learning}} and their {{c1::lifestyles}} and social factors like their {{c2::family}}, their {{c2::reference groups}}, their {{c2::culture}} and situational factors like their specific {{c3::purchase}} situation, their specific {{c4::shopping}} situation and their {{c5::temporal}} states (the time of day).

Answer 26

What are psychological factors in the Consumer Decision Process? Psychological factors influence the way customers {{c1::understand}} marketers’ messages. What are motives? A motive is a need that is {{c2::strong}} enough for a human to take {{c3::action}} to satisfy it. A motive is a desire to address a need. Marketers tend to try to relate to as many {{c4::motives}} as possible when providing about the product. Adding value by making sure that a product satisfies many of Maslow’s psychological needs (more value). What are psychological needs? {{c5::Biological}} necessities (food, drink, rest and shelter) Marketers try to convert these needs into a {{c6::want}} (instead of the need to rest -> to want to stay at the Marriott hotel). What are safety needs? To be {{c7::safe}} and to be {{c8::physically}} well (example: to be healthy). What are love (social) needs? {{c9::Interactions}} with others (more attractive through makeup [more liked maybe] deodorant [no odour, more liked maybe]). What are esteem needs? To feel {{c10::good}} about oneself, to feel {{c11::happy}} about oneself and {{c12::life}}. What is self-actualization? Realizing one's full potential and feeling purposeful and creative in life. Making decisions solely based on {{c13::personal}} choices and not at all caring about what {{c14::others}} are doing and what they think when making {{c15::purchase}} decisions. What is an attitude in relation to marketing? A person’s {{c16::feelings}} and {{c17::behavioural}} tendencies towards an object or idea. Our attitudes affect our {{c18::purchasing}} decisions. What one thinks about something; it’s a personal judgement that influences their {{c19::actions}}. An attitude constitutes of 3 components: the {{c20::cognitive}} component, the {{c20::affective}} component and the {{c20::behavioural}} component. Challenging to change an attitude of a customer - takes time. Marketers try and change through marketing communications (salespeople, advertisements, free samples etc.) what people believe is true about a product and how they feel towards it. If it works, then it changes customers’ behaviours (they buy it). What is a cognitive component? What I believe to be {{c20::true}}. For example, what I believe to be true about a product from an ad I saw on it. Thinking that a lollipop is the "right amount of sweet." What is the affective component? What I {{c21::feel}} (my likes and dislikes) about something. Liking the lollipop. What is a behavioural component? The {{c22::actions}} I take are based on what I {{c23::know}} and how I {{c24::feel}}. For example, going to buy a product because I think it is healthy for me and I feel like it’ll be good for my well-being. Continuing to eat the lollipop because it's sweet (perception) and I like it (affective/ attitude). "Do you like it?" = Attitude Having a positive attitude about something = "I {{c25::like}} it." What is a perception in marketing? Forming a meaningful picture of the world through selecting, organizing and interpreting information that comes to us. Meaning we put on stimuli, neutral. No evaluation of it/ unconsciously done. Lens through which we interpret our surroundings. For example: Taking a bit of a doughnut and perceiving it as "sweet." Meaning we apply to stimuli. Our filler, our lens, which is influenced by culture, our past, our attitudes and interests (what we like and what we don’t; personal judgement). Unconscious (RAS). For example: Bitting into a donut and thinking its sweet (categorised the doughnut as “sweet”). Selective exposure: {{c26::Actively seek out information that already aligns with beliefs and ignoring everything else (specific channels only, avoiding others). }} Selective attention: {{c27::When people focus on a specific piece of information regarless of whether it aligns with their belifs and ignores all other things (being at a sports game and only focusing on the players, not the advertisements playing around).}} Selective comprehension: {{c28::When customers understand a marketer’s message in a way that was not intended.}} Marketers try to share their messages by first understanding their customers to make sure that they communicate it correctly according to their {{c29::beliefs}}, {{c30::attitudes}} (likes and dislikes) etc so they are interpreted in the intended way. Selective retention: {{c31::Customers not remembering all the information.}} Marketers try to reinforce it through various means. What is a learning in marketing? Learning something new can change customers’ {{c32::behaviours or their thinking about something.}} Example, what a salesperson shares about a car can affect the way the customer views the car now. What is a lifestyle in relation to marketing? {{c33::How consumers spend their time and money to live.}} A product needs to fit a customer’s lifestyle. A person's lifestyle influences what products and services they buy.

Answer 27

What are social factors in the Consumer Decision Process? {{c1::External, social elements}} in life affect what customers decide to buy. What is family in relation to marketing? A person who has a family will consider {{c2::their family (kids) when purchasing things}}, or a family member {{c3::may recommend a product to another family member}}, or family members might have {{c4::different roles}} when it comes to making a purchase. What are reference groups in relation to marketing? {{c5::A person or a group of people that a person looks up to to make purchase decisions because they want to emulate them. }} They offer (1) {{c6::information}}, (2) {{c7::rewards}} for specific purchasing behaviours (approval of the group), and (3) help the customer {{c8::enhance}} their image (to be seen in a particular light, like “high fashion” for example). Powerful influence on the younger generation (with influencers, blogs etc). What is culture in relation to marketing? {{c9::Shared meanings, beliefs, morals, values and customs of a group of people.}} Subculture: A group of people whose beliefs and values are {{c10::different}} from the ones from the rest of the {{c11::larger society.}} For example, Chinese-Canadian subculture.

Answer 28

What are situational factors in the Consumer Decision Process? Situations that are {{c1::more powerful}} than psychological or social elements {{c2::at the moment. }} What is a purchase situation in relation to marketing? {{c3::A situation where a customer purchases something that doesn’t align with their usual way of purchasing goods due to a special occasion}} (occurs at one point in time; unusual due to sensory stimuli). What is a sensory situation in relation to marketing? {{c4::Sensory elements that derail customers from what they initial were wanting to purchase. }} What is a store atmosphere? Creating an atmosphere that {{c5::appeals}} to customers through music, scent, lighting, colours, events, visuals etc. What are salespeople? Pointing out {{c6::advantages}}, lots of training of employees involved. What is crowding? When there are too many people, merchandise or lines that are too long. People got distracted or some might want to just leave. People might be curious though too: "What's going on over there?" What are in-store demonstrations? {{c7::Trying}} things to entice people to buy. What are promotions? Many promotional vehicles, coupons, giving out “free” gifts, in-store displays. What is packaging? Making packages {{c8::eye-catching}} through designing and updating them. What is a temporal state? {{c9::One’s state of mind affects one’s experience when buying things.}}

Answer 29

What does involvement and consumer buying decisions constitute in marketing? There are {{c1::2}} types of buying/ decision process: {{c2::extended problem solving}} (real deep analysis on the product; searching for information and evaluating alternatives) for high-priced, infrequent, risky purchases and almost {{c3::no problem solving}} for other purchases (like impulse buying and things people buy habitually; bread). Involvement: {{c4::Consumer’s degree of interest in or concern about a product/ service. }} What constitutes extended problem solving? {{c5::Putting in a lot of effort to ensure that a customer truly wants to buy the product because they view the purchase as riskier}} (can be a relatively expensive product for them, for example). What is limited problem-solving? {{c6::A little effort and time is put in to make a purchasing decision. }} What is impulse buying? {{c7::Decisions to purchase something is made on the spot after seeing it. Recognized the need and bought it to fulfill it, no research or time needed. }} Convenience: {{c8::On-the-spot}}, {{c9::little thought or effort}}. {{c10::Infrequently bought}}. What is habitual decision making? {{c11::Little conscious effort to make the decision to buy something.}}People see the product, or sign (a stimulus that represents a company) and through habit, goes to purchase from that company. {{c12::They see it -> they buy it out of habit. }}

Answer 30

What is marketing analytics? {{c3::Process of tracking and analyzing data from marketing efforts to see if one is reaching their goals. Important to improve decision-making.}} Where does marketing data come from? Data to track progress towards goals comes in 3 types: First-party data: Collected {{c4::directly}} from the company itself and comes directly from customers (informs one about their beliefs, behaviours and feelings). Second-party data: Data from {{c5::another}} company that is relevant. Third-party data: {{c6::Data from companies that have no connection to an organization’s company or customers.}} Can provide information on similar customers. Not about the company’s true customers. What are A/B tests? To test a {{c7::hypothesis}} (how a change in something would change the behaviour of your customers). For example, {{c8::half of customers interact with one version while the other interact with another version. }} What is organic content interaction? {{c9::Tracking customers' interaction with content to understand what they’re interested in/ what motivates them to purchase something. }} What is paid advertisement interaction? {{c10::Tracking a person who interacts with a digital ad to know where they are coming from and “what stag of the funnel they see your ads.”}} How is marketing analyzed? {{c11::It is organized and structured before it is analyzed.}} Done by different platforms like Google Analytics. Why is marketing analytics important? Used to improve the {{c12::user experience. }} Making changes to fulfill the needs of customers and increase leads (people who may be interested in buying the product). Used to calculate the {{c13::return on investment from marketing efforts. }} Is the company actually making more profit from it? Are profits increasing due to marketing efforts or not? Positive % means net profit increased positively from the cost of the marketing efforts. To help find what marketing efforts or more profitable and which are good to let go off. Analyzing data is used to help make {{c1::better decisions}} in planning future {{c2::marketing strategies. }} Find what’s working and what’s not. What to do more of.

Answer 31

What is step 1: Need Recognition of the Consumer Decision Process? What is need recognition? {{c1::Recognizing that there is a difference between your current state and a desired state of being.}} For example: being hungry to being full. Q marketers ask: What kind of things of things cause a person to recognize that they have a need? What are functional needs? The {{c2::performance that a product of service gives.}} The {{c3::purpose}} that a product or service serves. What are psychological needs? {{c4::Personal gratitfication from/ that is associate with having a product/ service. }} It’s not about what the product helps someone with, it’s more so {{c5::the value that a person places on it}} - it feels good to own it. For example: A dior bag might not be that functional but there is personal gratification from it (enhancing their image). Personal joy (in a sense).

Answer 32

What is Step 2: Information Search of the Consumer Decision Process? Doing research to find out information on {{c1::the various options that are available to satisfy a need.}} The more risk associated with the purchase, the more {{c2::researching.}} Q marketers ask: What affects if a person searches for info, and how or hard will they search? What is an internal search for information? {{c3::A type of information that comes from people searching their own memories about what they remember about the product/ service. Memory of past experiences. Personal knowledge base. }} What is an external search for information? {{c4::A type of information that is external. Doing research by searching for information externally, on the internet, talking to other people, etc. }} What are factors affecting consumers’ search processes? What are the perceived benefits versus costs of search? Is it {{c5::worth it}} to me to put in time and effort to find information about a product or a service? Depends on what the consumers thinks. What is a locus of control? The degree to which people believe that they have {{c6::control}} over the outcome of their actions. What is an internal locus of control? Believing that {{c7::you do have some control over the outcomes from an action}} = doing more research, because they believe their actions will affect the outcome they get (like finding a really good deal, for example). What is an external locus of control? Believing that {{c8::fate or other external circumstances}} determines the outcome. Therefore, less likely to put in time and effort to do research since the outcome is based on things externally anyways. What is an actual or perceived risk? {{c9::Risks that delay or discourage making a purchase.}} What is a performance risk? {{c10::Being scared that a product won’t perform as well.}} Not meeting customer's expectations in terms of functionality and quality. Product quality insurance, clear information, warranty and customer support. What is a financial risk? {{c11::Financial risk in making a purchase due to the price of the product/ servuce, ongoing expenses, potential hidden costs, and impact of the purchase on their budget. }} May do more research if there is a higher financial risk in the eyes of the consumers. Marketers need to alleviate financial risk concerns; being transparent with the price, offering financing options, highlighting guarantees or return policies. What is a social risk? Worrying that others will think about their purchase negatively. What is a physiological risk? Worrying that the product/ service may harm the customer’s safety. Safety assurance ("It's safe!"), usage guidelines, and regulatory compliance. What is psychological risk? Feeling scared that a product/ service won’t convey the right image that the consumer wants to portray. Marketers should try to reduce the sense of risk (returning products if the customer isn’t satisfied with it and full refunds, for example).

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What is the Step 3: Alternative Evaluate in the Consumer Decision Process? After recognized their need and being aware of their options, they then {{c1::evaluate the alternatives available.}} Part of the information search process. Q marketers ask: How does a person figure out what the options are? How does a person evaluate their options? Wanna be in the options and know what criteria they use to meet it. What are attribute sets? Characteristics or special features of a product that you think about. What are retrieval sets? {{c2::Brands or stores that consumers already know about in their minds. The usual stores. }} Names of brands that pop up in your mind when you think about a specific category of products. Ex: Phones; Camera quality. battery life, screen size, and price. What are evoked sets? {{c3::Brands and stores that consumers have awareness of when they are considering to make a purchase. The stores one wants to go to because they are looking for something that they offer currently. }} The specific options you seriously think about when you're ready to buy, the shortlist of the evoked set (those one is taking seriously for consideration); Acceptable brands. What are the evaluation criteria? {{c4::Set of attributes that are important to the customer of a particular product that are used to compare the alternatives. }} What are determinant attributes? {{c5::Product or service features that a customer considers the most important to compare and evaluate different alternatives. }} Able to see which brands have them/ where brands different with them to more easily decide which option to buy that has what they want. What are consumer decision rules? {{c6::Mental shortcuts that people use when choosing what to buy (done consciously or unconsciously).}} Set of criterial that customers used consciously or unconsciously to make decisions quickly. There are different ways to do so: compensatory, noncompensatory, or decision heuristics. What is a compensatory decision rule? An assumption that when a customer is making decisions they might trade off getting one characteristics with another (or be more flexible with it). Making tradeoffs. {{c7::When choosing between different products, people look at the good things and bad things, and adding up the scores of good things to see which one is the best for them. }} What is a noncompensatory decision rule? {{c8::Making choices by having a set of criteria and if a product doesn't meet the minimum requirement on one of those criterias, its immeditably ruled out. }} No trade-offs. For example, if a car has everything A values but a high price, A won’t go for it, and will go with another car that isnt valued at highly on other characteristics comparatively but the price is lower. As if a/ some characteristic(s) are unnegotiable. What are decision heuristics? Mental shortcuts to narrow down choices. Marketers can help customers on evaluating alternatives by presenting products in a way where customers can see their {{c9::differences}} or giving customers information about the products that explains the {{c10::differences}} they have. For example, detailed information on unique features, benefits, material etc. Giving free samples/ trials helps customers evaluate alternatives too.

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What is Step 4: Purchase Decision of the Consumer Decision Process? After evaluating alternatives, {{c1::customers usually buy. }} Companies do their best to ensure that customers buy through various means, where the product is displayed in the store, benefits if they buy from them, price-match guarantee, delivery, return policies etc. Last chance for marketers influence consumers. Q marketers ask: What influences a {{c2::person’s decision(s)}} at the point of purchase?

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What is Step 5: Postpurchase of the Consumer Decision Process? {{c1::Marketers find information of actual customers}}(that actually bought the product). Marketers want them to become {{c2::loyal}}, {{c3::purchase}} again, and {{c4::spread positive word-of-mouth}}. Q marketers ask: Did we deliver the value? What makes customers satisfied and dissatisfied with the product/ service? There are 3 possible postpurchase outcomes: {{c5::customer satisfaction}}, {{c6::postpurchase dissonance}} (buyer’s remorse/ regret) and {{c7::customer loyalty}} (or disloyalty). What is customer satisfaction? {{c8::Met expectations. }} What is postpurchase dissonance? {{c9::Feeling of regret of guilt after a purchase because they question is the purchase was a good/ appropriate decision. }} For example, if they purchased something quickly because the salesperson was really convincing, they may regret that, buying an expensive TV when there is more online streaming now instead. Common for expensive, infrequently purchased, highly expressive, and high levels of risk purchases. Customer loyalty: {{c10::Customers that come back to buy from the same company again.}} May even only consider that company for certain products or even all products. Undesirable consumer behaviour: {{c11::Behaviours or actions by customers that negatively affect the brand. }} Negative word-of-mouth: Where customers speak negatively about a company (on social media, to many other people) when they’ve been {{c12::treated unfairly}} in some way, or customers don’t {{c13::talk about the company at all even if they were satisfied with their purchase. }} Companies creative service representatives to listen to complaints or letting customers complain on their social media hoping that it won’t spread further since they’ll feel heard by the company.

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The four types of Consumer Products are: {{c1::Speciality}}, {{c2::Shopping}}, {{c3::Convenience}} and {{c4::Unsought.}} What are specialty products/ services? Category of products in which customers have a strong brand preference. Customer express a strong preference for those products because of a strong preference for the brand/ because of brand loyalty. Less research done for them (merely for alternatives) because the customer already knows what brand they want. For example: The have a strong preference for Apple and they'd just to look into what model they want. What are shopping products/ services? Products that a customer spends a lot of time researching and comparing alternatives for. What are convenience products/ services? Little effort put into researching or comparing alternatives for this category of products, no strong brand preference. There are different types of convenience products (that happen in different context): Staples: {{c5::Regularly purchased as a habit without my thought or effort. Example: bread. }} Impulse: {{c6::Decides to buy on-the-spot and infrequently bought. }} Emergency: {{c7::Products that a consumer purchases in response to some type of urgent or emergency-based condition. }} What are unsought products/ services? Not a normal purchase by the customer. {{c8::Products that customers might not know about or don’t normally think of buying. }}

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What is STP? Segmentation: {{c1:: Breaking down the entire market into a smaller group of potential customers based on things they have in common. }} Targeting: {{c2::Pick which group to focus on based on various elements. Ex. Based on profitability. }} Positioning: {{c3::Create a special image of the product in the mind's of the target group.}} Through marketing and branding efforts and aims to differentatiate the product from competitors.

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What does Step 1: Establish Overall Strategy Objectives of the STP constitute? Decide on the {{c1::goals of the company’s marketing strategy clearly}} in a way that is {{c2::consistent with the firm’s mission and goals}}, and while considering its {{c3::current situation (SWOT). }}

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What does Step 2: Segmentation Bases of the STP constitute of? {{c1::Separating the entire market based on different needs, wants and characteristics.}} Helps to see the similarities and differences between each segment. There are many ways to segment/ group consumers (a market)/ there are many segment bases including {{c2::geographic}}, {{c3::demographic}}, {{c4::psychographic}}, {{c5::behavioural}} or firms use a mix of these different segmentation bases to create a specific target segment.

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What does Step 2: Segmentation Bases of the STP constitute of: What do each segmentation base answer? Geographic: {{c1::Where do they live? }} Demographic: {{c2::Who are they? }} Psychographic: {{c3::How do they live?/ What is their lifestyle?}} Behavioural: {{c4::Why do they buy the product/ service?}} {{c5::How often?}} {{c6::How they plan to use the products? }}

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What does Step 2: Segmentation Bases of the STP constitute of? What is geographic segmentation? Separating consumers by {{c1::country}}, {{c2::regions}} or {{c3::climate}} to better understand their {{c4::needs and wants}} and to change their service/ products {{c5::accordingly}}. What is demographic segmentation? Grouping consumers based on who they are in an objective way like their {{c6::age}}, their {{c6::gender}}, their {{c6::income}}, their {{c6::generation type}}, their {{c6::education}}, their {{c6::race}}, their {{c6::job}}, their {{c6::religion}}, their {{c6::family size}}, their {{c6::family life cycle}}, their {{c6::home ownership}}. Easy to identify. Easy to target based on geographic segmentation. Helps marketers understand who they are and help to uncover {{c7::why}} they buy certain things (based on {{c8::trends}} of each group). Direct their marketing strategies to each group differently. What is psychographic segmentation? Separates consumers on {{c9::how they like to live}} (which is based on their reasoning). Consumers reasonings influences their choices which influences how they live. Dividing a market based on psychological and behaviourial (lifestyle) characteristics. 3 elements to psychographic segmentation: {{c10::self-value}}, {{c11::self-concept}} and {{c12::lifestyle}}. Self-value: {{What a consumer thinks is really important in life. Example: Being eco-friendly.}} Marketers use this to sell products that match these values. Self-concept: {{How a consumer sees themselves.}} Example: Seeing oneself as adventurous or a homebody. Marketers create ads that match how people view themselves to make the product valuable in the eyes of the consumers. Market products in a way that fits the consumers self-image. Lifestyle: {{ }}. The way a person lives to fulfill their goals. Connecting products/ services to lifestyles. Marketers sell things that fit with what people enjoy. For example, connecting Lululemon with a healthy, balanced, fun-filled lifestyle. What is behavioural segmentation? Separating consumers on {{c13::why}} they buy things (the benefits the consumers are looking for), how {{c14::often}} they buy things (their {{c14::usage rates}}) and how {{c15::they plan to use}} the products or services (the {{c15::occasion}} that consumers use products/ services for) and their loyalty. Occasion segmentation: Segmenting consumers based on {{c16::when}} a product or service is purchased/ for what {{c16::occasion}}. {{c16::Divided on when and for what occasion consumers buy the product/ service. }} For example: Marketers can create a special promotion for the times people buy lots. Benefit segmentation: {{c17::Divides consumers based on the benefits that they are looking for in the product/ service. }} Helps marketers know what their consumers are looking for so they can create products that meet these specific benefits and highlight them in their marketing. Loyalty segmentation: {{c18::Dividing consumers on how loyal they are to a brand or company to help marketers retain the loyal consumers }} Marketers can give special offers to make them come back. Usage rate: {{c19::Heavy users}}, {{c19::regular users}}, {{c19::light users}} and {{c19::occasional users.}} Marketers can target them specifically to keep the heavy users or get light users to become regular users for example (through coupons). What do multiple segmentation methods constitute? Geodemographic segmentation: Classifying based on {{c20::geographic}}, {{c21::demographic}} and {{c22::lifestyle}} (psychographic) characteristics. Because “birds of a feather flock together.” For example, tailoring store’s assortments to meet the preferences of a local community. People in the same group will usually all prefer certain things. Each segment base helps marketers understand their consumers so they can market their products/ services in a way attracts them.

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What does Step 3: Evaluate Segment Attractiveness of the STP constitute? {{c1::Finding out which market segment is worth pursuing/ attractive based on several criterias}}: by looking at how {{c2::identifiable}}, {{c3::reachable}}, {{c4::responsive}} and {{c5::substantial & profitable}} they are. What does identifiable mean in marketing? That the needs of the target segment is really clear so the marketing is effective. The group is very identifiable based on their common needs. For example: Picking apples from a fruit basket. The needs of one don't overlap with those of another. What does reachable mean in marketing? Market segment needs to {{c6::be reachable by the firm. }} Can {{c7::easily connect with the target segment. }} Consumers must be able to “listen” to the firm’s messages. For example: Easily being able to send a text message to all the people in the target segment. What does responsiveness mean in marketing? For a market segment to be successful, consumers in it should {{c8::react}} similarly and {{c9::positively}} to marketing efforts. For example: If I tell a joke, the target segment positively laughs. What does substantial and profitable mean in marketing? The target segment needs to be {{c10::big enough}} and have enough {{c11::buying power}} to generate {{c12::profit}} for the firm. Analyze the current and future profitability of the segment to know if its worth pursuing. This includes analyzing {{c13::market growth (expected growth rate of the market),}} {{c14::market competitiveness (the number of competitors, entry barriers, and product substitutes),}} and {{c15::market access (ease of developing or accessing distribution channels and brand familiarity). }} Big enough to make the efforts worthwhile (volume) and can make profits (price) (thanks to their buying power) by selling to this group. For example: Having enough customers to run a successful lemonade stand and making good profits.

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What does Step 4: Select Target Market of the STP constitute? Selecting a target market which based on the firm’s {{c1::ability to pursue}} it by analyzing its {{c2::SWOT}} and the {{c3::profitability}} of the segment. There are different targeting strategies which help with winning over the target segment (I believe): mass/ undifferentiated, differentiated, concentrated, or micromarketing one-to-one. What is the undifferentiated targeting strategy/ mass marketing? {{ }}. What is the differentiated targeting strategy? {{ }}. A bigger market share. What is the concentrated (niche) targeting strategy? {{ }}. Example: Start-ups with a new invention -> concentrated targeting. What is micromarketing? What is micromarketing (one-to-one) segmentation? {{ }}. Common to do in services. For example; tailors, customization for shoes. What is mass customization? {{ }}. For example, Reebok’s “build-your-own” sneakers allow customers to make their own designs and then, its shipped to them.

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What does Step 5: Identify and Develop Positioning Strategy of the STP constitute? The last step is positioning: Shaping customers’ {{c1::perceptions}} ({{c2::thoughts}}, {{c3::feelings}} and {{c4::impressions}}) about a {{c5::company}} and its {{c6::products}}. Shaping customers’ thinking and feelings. To show how the product/ service is {{c7::valuable}} to the specific target consumers, or how it is {{c8::better}} than the competitors’ products/ services (benefits are greater). What is a product’s value proposition? The {{c9::benefits}} customers can receive from a product/ service and thus, providing {{c10::reasons}} for the customers to buy it. Positioning helps communicate a company’s value proposition. What is a positioning statement? {{c13::Clear and concise statement that describes a product or brand and how its different from others (its benefits), communicating the value of the offering to customers. }} {{c11::Messages}} that communicate the {{c12::value}} of the product. It includes information about the {{c14::target market}}, the {{c15::offering name or brand}}, the {{c16::offering category or concept,}} and the {{c17::unique points of difference/ benefits.}} What is a perceptual map? A visual guide that helps marketers see how customers view products/ brands in relation to each other. Where each product/ brand stands in the minds of customers based on specific characteristics. To help find opportunities to stand out by figuring out how to position a product in an appealing way accordingly. What is an ideal point? {{c18::A consumer’s ideal point - The specific combination of product attributes or characteristics tht constumers consider perfect/ ideal. }} Help marketers understand what customers want in a product and helps them position their product/ brand as closely as possible to consumer want or create a new product with those characteristics. What steps do marketers follow to create a perceptual map? 1. Know consumers’ perceptions and evaluations of the firm’s product or service in relation to competitors. An organization determines how its products are positioned by asking consumers how they view it. 2. Identify the market’s ideal point and size. This helps to see what consumers want and helps an organization know what to offer to their consumers. 3. Identify competitors’ positions. Understand how an organization’s competitors position themselves. 4. Determine consumer preferences. Determine what consumers really want based on the information found above/ what product appeals to each market. 5. Select the position. Decide whether to repromote (in a new way), create a new product or hope that the market buys their products (because its close to what they want) to appeal to the specific market segment. 6. Monitor the positioning strategy. Consumers' tastes change, and competitors react to those changes. Always review the first 3 steps and adjust step 4 when needed. Find what people want, and how many people want it, and target it by positioning yourself correctly. What is brand repositioning (rebranding)? {{c19::Changing the way a company presents its products or brands to customers to make it more appearling to them. Costs and risks involved. }} To adapt to new customer needs/ wants, competition, increase sales etc. Establishing parity before difference so consumers understand that a product belongs to a certain category (what it does/ its benefits can be understood from that).

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Continuing: What does Step 5: Identify and Develop Positioning Strategy of the STP constitute? Positioning: {{c1::The way a company chooses to be seen in the mind of consumers relative to its competitors.}} Frame of reference: {{c2::Category that the product belongs to. }} Example: "Refreshing beverages." Points of parity: {{c3::Similarities or basic features that the product shares with others in the same category so customers feel like the product is a legitimate member of that category. }} "Our new soft drink is just as refreshing as others." Points of difference: {{c4::Unique, special things, benefits of the product that makes it stand out. }} "But our soft drink is the only one with a secret blend of flavours that make it extra refreshing and delicious."

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Continue: What does Step 5: Identify and Develop Positioning Strategy of the STP constitute? What does the Positioning Statement Formula contain? {{c1::Target market}} {{c1::Frame of reference}} {{c1::Point of difference (main benefit)}} {{c1::Support (makes point of difference believable)}}