Exam 3 Flashcards
Technology helps marketers lower cost and deliver value.
True
What is People marketing?
Services produced and consumed at the same time, using people to physically market
Is perceived value as important as actual value?
Yes, everything is based on the consumer. So what they perceive may or may not benefit the company.
Event Marketing
Marketing/Sponsoring athletic, cultural, or charitable events (olympics, Super bowl, etc.)
Idea Marketing
Public and private orgs marketing ideas meant to change the way people think or act (buckling seatbelt, recycling, donate blood, etc.)
Is it true that delivering value to customers is the only way to achieve long-term profitability?
No
Demographic segmentation
Dividing the market into smaller groups based on measurable characteristics about people (age, income, ethnicity, gender)
Primary data vs. Secondary data
Primary- New data that marketers compile for a specific research project
Secondary- Existing data that marketers gather or purchase for a research project
Where do Consumer Markets direct their effort?
To people who are buying products for personal consumption (food, toothpaste, clothes)
Cognitive Dissonance
Consumer discomfort with a purchase decision, typically for a higher priced item
Ownership Utility
Satisfies wants by smoothly transferring ownership of goods and services from seller to buyer
Customer Loyalty
when customers buy a product from the same supplier again and again
Geographic segmentation
Dividing the market based on where consumers live (easier to find surfboards in hawaii than nebraska)
How do you over-promise a customer?
by promising things you may not be able to deliver
As a marketer, what can you acheive from customer loyalty
valuable feedback, customers that may require less service, they may refer friends, competitive edge, helps you learn more about customer target.
Relationship Era
focus on customer relationships, they may advocate for business in the future.
SImilarities between demographic and psychographic segmentation?
Both target certain consumers. Either people with certain views on environment, etc (psychographic) or certain age groups/incomes (demographic)
Two key aspects of producer quality
Quality level (how well the product performs its core functions)
Product consistency (how consistently the product delivers promised level of quality
what is co-branding?
When est. brands from different companies join forces to market the same product (DQ making Girlscout flavors, SW Airlines and Seaworld w/ shamu planes)
What constitutes dynamically continuous innovations?
marked changes to existing products. (cell phones, digital cameras), innovations that require some user learning for significant benefits
brand extension
when brands launch products in different categories (Bic has pens, lighters, and razors). Sometimes brand extensions fail
When does cannibalization occur in regard to a productr
When companies add lower priced items, they lose money because higher priced items won’t be bought as consistently
Product Life cycle
a pattern of sales and profits that typically changes over time. helps marketers plan future for existing and new products.
- Introduction- low sales and no profit. Company invests in awareness of product
- Growth- sales rise, profits peak
- Maturity- sales peak, profits decline.
- Decline- Sales and profits decline due to technological change or change in consumer needs.
.Does packaging have an impact in the customer decision-making process?
YES. consumers buy on impulse sometimes
