Exam Flashcards
Define marketing
Marketing is engaging customers and managing profitable consumer relationships. Its goal is to attract new customers by promising superior value, and keep and grow current customers by delivering superior satisfaction.
How do you get around deception in marketing and create positive customer relationships
by introducing a societal marketing or sustainable marketing concept which should deliver value to a customer in a way that maintains or improves both consumers nd societal wellbeing. This may be through creating environmentally friendly products.
Define CSR
Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially accountable — to itself, its stakeholders, and the public.
Define customer value
Refers to an entire stream of purchases that the customer would make over a lifetime of patronage. There are many factors in capturing customer value such as creating customer loyalty, growing the share of customer, building customer equity, and building the right relationships witht he right customers.
What are the criticisms of marketing
- too focused on making money
- not having CSR
- false advertising/marketing
What is market research
- systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.
- gives insights into customer buying motivations
- helps asses market potential
What is the difference between qualitative and quantitative data
Qualitative: small number of individuals to give personal opinions (focus groups or interviews)
Quantitative: Large number to get statistics and numbers
Difference between consumer buying behaviour and consumer market
consumer buyer behaviour: The buying behaviour of final consumers, individuals and households that buy goods and services for personal consumption
Consumer market: All the individuals and households that buy or acquire foods and services for personal consumption
What is the model of consumer behaviour
enironment: marketing stimuli and other factors
Buyer Black box: buyers mind
Buyer response: attitudes, behaviour and relationships
What are the characteristics affecting human behaviour
Cultural: culture, cultural groups, social class
Social: reference groups, family, roles and status
Personal: Age and life cycle, occupation, economic situation, lifestyle, personality
Psychological: motivation, perception, learning, beliefs and attitudes
What are the decision stages
Need recognition triggered by exterenal or internal stimuli
Information search: Seeks info
Evaluation of alternatives: processes this information to arrive at brand choice
Purchase decision: Purchase intention
Post purchase behaviour: satisfaction and loyalty.
What is the buyer decision process for new products
Awareness: Consumer becomes aware of, but lacks information of the product
Interest: Seeks information
Evaluation: Considers whether trying the product makes sense
Trial: Tries new product on a small scale to improve estimate of value
Adoption: Decides to make regular and full use of the product
What are the individual differences in innovativeness
Innovators, early adopters, early majority, late majority, laggards
Factors affecting adopting a new product
Relative advantage: superiority over an existing product
Compatability: With consumers beliefs and attitudes and life style
Complexity: Ease of understanding
Divisibility: understake a trial?
Communicabaility: can the audience UNDERSTAND the product?
Other factors: uncertainty, social approval.
Fabrics case study the differences in innovation
H
What is diffusion of innovation
the innovators, early adopter, early majority, late majority, laggards
What influences early adopters
Guided by respect, they are opinion leaders in thier communities and adopt new product early, but carefully.
How do you get people to know the relative advantage of smart fabrics
H
What happens if consumers can’t understand the technology of smart fabrics?
B
Define segmentation
Buyers in any market differ in their wants, resources, locations and buying attitudes & practices. The basis of identifying and analysing consumer market is geographic, demographic, behavioual and psychographic
What are the variables for analysing the consumer market
geographic, demographic, behavioual and psychographic
Define geographic segmentation
Dividing a market into different geographical units such as nations, regions states, local government areas, cities or neighborhoods.
Define demographics
Dividing market into segments based of variables such as age, sex, family size, family life cycle, occupation etc.
Define psychographic and behavioural segmentation
psychographic: socio economic, values, personality,
behaviioural: benefits sought, purchase user status, usage rate , loyalty status, readiness stage, attitude towards product.
What are the requirements for effective segmentation ?
To be useful, market segments must be:
- Measurable - Accessible - Substantial - Differentiable - Actionable
Define target market
set of buyers sharing common needs or characteristics that the company decides to serve
It can be carried out at different levels:
- Mass
- Segmented
- Niche
- local
What is the difference between differentiated and undifferentiated marketing
undifferentiated marketing is a market-coverage strategy where companies decide to ignore market segment differences and go after the whole market with one offer. It focuses on the consumers common needs rather than differences
A market-coverage strategy where a firm decides to target several segments and designs offers for each segment .
What are the positives and negatives of undifferentiated and differentiated marketing
Undifferentiated: Marketers sometimes have trouble with this and do a better job at satisfying niche needs
Differentiated: It increases cost of business because it requires extra research.
What Market positioning, how did you use it in the simulation?
A product positon is the complex et of perceptions impressions and feelings that consumers have for the product compared to competing products
What are the stages in the new product development service
- Idea generation
- Idea screening
- cencept development testing
- marketing strategy development
- business analysis
- product development
- test market
- commercialisation
Define new products
New products refer to the variety of products that a business develops through its own research development efforts
What is the difference between concept development and test marketing
Concept development: turning an idea into a product concept, which is stated in meaningful consumer terms. This is then tested to a group of target consumers to to determine if the concept has strong consumer appeal.
Test Marketing: The stage of new product development in which the product and the associated marketing program are introduced into more realistic market settings AFTER THE PRODUCT HAS BEEN DEVELOPED. It gives marketers the opportunity to exerpeience mareting the product before going through the great expense of full production. This can also be done through simulations. Its the opportunity for marketers to make any final tweeks before commercialisation.
Define the product life cycle and how it looks
After launching a product, the company wants to earn a decent profit to cover all the effort and risk that went it went through in launching. To do this they look at the product life cycle
Has 5 distinct stages:
- product development (p=loss, s=0)
- introduction (p=loss, s=low)
- growth (p=low and peak, s=high and peak)
- mature (p=peak and reduce, s=peak)
- decline (decline)
Where do the early adopters come into the product life cycle?
introduction/growth
Table 8.2
J
What are new product pricing strategies
Market skimming: Setting a high initial price for a new product to skim maximum revenue from the segments willing to pay the high price, the company makes fewer but more profitable sales
Market-penetration:
Setting a low price for a new product in order o attract a large number of buyers and large market share. The high sales volume lowers cost of production which means they can cut prices even more.
Define price
Price is the sum of all the values that customers give up in order to gain the benefits of having or using a product or service. Price is important in determining market share and profitability
What is captive product price vs by product pricing. Which is better for CSR
Captive: Pricing products that must be used with the main product eg. inkjet printers
By: Pricing them low to get rid of them
What marketing channel is best ?
vertical because you can resolve conflict quickly
What is vertical channels
- Consists of manufacturers, wholesalers and retailers as a unified network system
- One channel member owns the other and wields power over them or has a contract
What are horizontal channels
- arrangement where 2 or more companies at ne level join together to follow a new marketing opportunity.
What are conventional marketing channels
- Consisting of one o rmore independent producers, wholesalers and retailers.
- each seperate business seeks to maxiise their own profits , sometimes at the expense of the system as a whole
VMN versus conventional
conventional you have the opportunity to maximise profits
vmn reduces profits
What is a push strategy
direct marketing strategies (primarily personality selling and trade promotion) towards customers to induce them to buy the product and promote it to final consumers
What is pull strategy
direct marketing activities (advertising and consumer promotion) towards final consumers to induce them to buy the product.
What is the push and pull link to distribution
Push: producers push onto retailers, who then push onto sonsumers
pull: producers markets to consumers first and then demand goes to retailers
what is competitive advantage
Differentiating by providing superior customer value and gains. Whereby an advantage over competitors is gained by offering greater customer value , either through lower prices or by providing more benefitsthat justify higher prices
