Class Notes Flashcards
CIP
Consumer information processing
Sensory
Short term memory
Long term
Systematic memory
You know what it is but you don’t have a emotional connection with it
Episodic memories
A little video in your head linked to past emotions
Brand equity
How a company brand is perceived
Brand
A promise given level of quality and consistency
CDP
Consumer decision making process
Stimuli Problem awareness Information search Evaluate alternatives Purchase Use Evaluation disposition
Routine decision
Like eating breakfast simple everyday
Limited decisions
A little bit of thought out in like buying a pear of jeans
Extended decision
You do a lot of research before hand like buying a house kind of risky
Choice set
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
Preference group
Your mom when u shop
Your friends when u go out to eat
Diffusion
A lot of people adopting a product
Harvest point
The peak of all customer adoption
Core atrophy
When u lose your core market because of bad product development and loss of focus
3 new types of products
Modification : ham and cheese pringles
Major innovation: completely new
Have to let people know what it is
Minor innovation: competitive version of major innovation
Adoption curve
Innovators 2% Early adopters 13% Early majority 34% Late majority 35% Laggards 16%
Segmentation
Breaking a market down into groups defined by demographics and psychographics
Market
All people who are willing and able to buy your product
Targeting
Choosing to focus on a specific segment of a market
USP or UVP
Unique selling proposition
Unique value proposition
Telling customer why to choose you
Mkt penetration
Increase people buying the same product
Ex. Decrease price, having sales, advertising, bonus points
Mkt development
Finding a different market same product
Ex wii fit
Product development
Introduce new product
In product line
Ex line extension frosted cherrios
Cannibaliztion
Diversification
Coming out with totally new product
Line extension
Can cause brand confusion
Diversification 10 rules
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
Focus
Better to do one thing very well than many things mediocrely
First focused fat foolish failure
