Class Notes

Question 1

CIP

Answer 1

Consumer information processing

Sensory
Short term memory
Long term

Question 2

Systematic memory

Answer 2

You know what it is but you don’t have a emotional connection with it

Question 3

Episodic memories

Answer 3

A little video in your head linked to past emotions

Question 4

Brand equity

Answer 4

How a company brand is perceived

Question 5

Brand

Answer 5

A promise given level of quality and consistency

Question 6

CDP

Answer 6

Consumer decision making process

Stimuli 
Problem awareness 
Information search 
Evaluate alternatives 
Purchase 
Use 
Evaluation 
disposition

Question 7

Routine decision

Answer 7

Like eating breakfast simple everyday

Question 8

Limited decisions

Answer 8

A little bit of thought out in like buying a pear of jeans

Question 9

Extended decision

Answer 9

You do a lot of research before hand like buying a house kind of risky

Question 10

Choice set

Answer 10

Through the CDP there ends up being a choice set of generally three types of product we think of to fix our problems

Ex if you thirsty and decide upon soda u probably have about three options u r thinking about for ur soda choice

Question 11

Preference group

Answer 11

Your mom when u shop

Your friends when u go out to eat

Question 12

Diffusion

Answer 12

A lot of people adopting a product

Question 13

Harvest point

Answer 13

The peak of all customer adoption

Question 14

Core atrophy

Answer 14

When u lose your core market because of bad product development and loss of focus

Question 15

3 new types of products

Answer 15

Modification : ham and cheese pringles

Major innovation: completely new
Have to let people know what it is

Minor innovation: competitive version of major innovation

Question 16

Adoption curve

Answer 16

Innovators 2%
Early adopters 13%
Early majority 34%
Late majority 35%
Laggards 16%

Question 17

Segmentation

Answer 17

Breaking a market down into groups defined by demographics and psychographics

Question 18

Market

Answer 18

All people who are willing and able to buy your product

Question 19

Targeting

Answer 19

Choosing to focus on a specific segment of a market

Question 20

USP or UVP

Answer 20

Unique selling proposition
Unique value proposition
Telling customer why to choose you

Question 21

Mkt penetration

Answer 21

Increase people buying the same product

Ex. Decrease price, having sales, advertising, bonus points

Question 22

Mkt development

Answer 22

Finding a different market same product

Ex wii fit

Question 23

Product development

Answer 23

Introduce new product
In product line
Ex line extension frosted cherrios
Cannibaliztion

Question 24

Diversification

Answer 24

Coming out with totally new product
Line extension
Can cause brand confusion

Question 25

Diversification 10 rules

Answer 25

New name 
Follow the z 
Do what your good at 
Less than 3 establishes players 
Sufficient recourses 
Don’t compete with yourself 
Don’t compete with customers

Question 26

Focus

Answer 26

Better to do one thing very well than many things mediocrely

First focused fat foolish failure