Final Exam Flashcards
what about marketing research is difficult
understanding the consumer and creating insights is difficult but not impossible
what is marketing research with respect to competition
a significant source of competitive advantage
what is the first part of the marketing research process
problem definition and research objectives
what is the second part of the marketing research process
research approach
what is the third part of the marketing research process
data collection
what is the fourth part of the marketing research process
analysis and deliberation
what is the final part of the research process
decision
what are the three types of problem definitions
exploratory (broad), descriptive (estimates), causal (narrow)
what is another term for exploratory
broad
what is another term for causal
narrow
what are the types of research approaches
data, observation, ethnographic, focus group, survey, experimental
what are the two types of data
primary and secondary
what is primary data
collected by a company, very specific, not available anywhere else, more customized
what is secondary data
already out there, limited in terms of amount you can extract
what is ethnography
study of people’s culture and customs where the researcher becomes part of their setting
what is a focus group
asking questions to a small specific group of people relevant to exploratory research
what are the types of analysis/deliberation
appropriateness, patterns, correlation vs causation
what are the three V’s for the big data revolution
volume, variety, velocity
what type of data is a source of competitive advantage
big data
what is included in big data
algorithmic-based firms that outperform, patterns and correlations that can be validated (AI)
what is segmentation
a unit of analysis with a distinct objective function that helps marketers to effectively uncover and address consumer needs thereby enabling value creation, communication, and capture
what is differentiation
a unique product or service created by the producer
what are used to go from differentiation to positioning
anchors
what is positioning
the ultimate goal for a brand, occupying the customers’ minds (do they perceive uniqueness the same way as the producer?)
what is the overarching goal in customer analysis
to start with segmentation but achieve positioning
what is said about positioning deficits
they are relatively commonplace
what are GCC’s (general customer characterisitcs)
demographics (age, income, gender) or psychographics (lifestyle, personality)
what are SSCC’s (situation-specific customer characteristics)
customer need set in the market
how is distance related to segmentation
within a segment, the distance between should be small and homogeneous, but the distance across segments should be as high as possible
what are the effective positioning strategies
implement customer-based segmentation, could fall into differentiation trap, so need to use effective positioning strategies, need a good anchor (will help create positioning in the customer’s mind –> ex: celebrity, price, etc)
what are the 4 P’s
product, price, promotion, place
what are the three objective promotion goals
to inform, to persuade, to stimulate
what does it mean to inform
info about availability, new products, new buyers, modifications to an existing product, highlight new uses for a particular product
what does it mean to persuade
develop certain positive feelings, communicate feelings relative to competition
what does it mean to stimulate
reinforce certain behavior
what is the hierarchy of effects model
the most common decision-making process
what are the three parts to the hierarchy of effects model
cognition, attitude, behavior (respectively)
what is cognition in the hierarchy of effects model
customers mind goes from unaware to aware to gaining knowledge
what is attitude in the hierarchy of effects model
affect (like to preference to conviction)
what is behavior in the hierarchy of effects model
trial and or repeat purchase
what are the three main points of the communications model
encoding, message medium, reponse/deconding
what is said about noise in the communications model
noise can be minimized or maximized given social media, companies want to eliminate noise
according to the promotions mix, what kind of promotions are made when the nature is “paid” and the target is “mass”
ads, packaging, PR, sales, and social media
according to the promotions mix, what kind of promotions are made when the nature is “paid” and the target is “personal”
personal selling, social media
according to the promotions mix, what kind of promotions are made when the nature is “free” and the target is “mass”
publicity, social media
according to the promotions mix, what kind of promotions are made when the nature is “free” and the target is “personal”
word of mouth, social media
what are examples of push offerings
discounts, promotions (short term) –> ex: coupons, rebates, etc
what are examples of pull offerings
magnets, strong brand name, brand image, luxury items, etc (communication of a product)
what are the challenges and constraints of existing products
line decisions, life-cycle issues, synergy, ecosystems, non-marketing constraints
what is synergy
certain things in common between two products that a company can use to increase efficiency (ie. raw materials)
what are examples of non-marketing constraints
R+D, teamwork, culture
what are the challenges and constraints of new products
product-market fit, product-company fit, idea-generating/screening, concept testing, concept measurement, test marketing, product introduction, pricing, warranty, recall
what are product management decisions
focus on functionality, survival and growth are key issues, life cycle managed
what are brand management decisions
focus on identity, survival taken for granted, life cycle management taken for granted
what are the life cycle phases of managing product strategy
intro = basic
growth = extensions
maturity = diversity
decline = phase out weak products
what are the life cycle phases of managing pricing strategy
intro = cost-plus (high price)
growth = penetration pricing (lower)
maturity = price to meet or beat competition
decline = lower price
what are the life cycle phases of managing promotion strategy
intro = target early adopters
growth = build awareness
maturity = encourage switching
decline = reduce
what are the life cycle phases of managing place strategy
intro = selective distribution
growth = intensive distribution
maturity = more intensive distribution
decline = phase put unprofitable outlets
brand management basics
a brands worth is measured by brand equity (amount of power and value in the marketplace)
what is brand equity
provides firms with tangible benefits
what are the strategies for a brand when the product category is “existing” and the brand name is “existing”
line extension (size, minor variations)
what are the strategies for a brand when the product category is “existing” and the brand name is “new”
multi-branding (risk of cannibalization)
what are the strategies for a brand when the product category is “new” and the brand name is “existing”
brand extensions
what are the strategies for a brand when the product category is “new” and the brand name is “new”
new brands
what are the four ways to extend master brands
brand bundling, brand bridging, super-branding, sub-branding
what is the only one of the 4 P’s that generate revenue
pricing
why is pricing an important strategic weapon
helps companies achieve a certain goal in the future, decision-making under uncertainty, incorporate some possible futuristic trends
pricing floor
minimum price a company can charge without going bankrupt (cost of the product itself)
ceiling
max price a customer is wtp for a product (point at which customers encounter resistance in their minds)
floor-based pricing method
markup/markdown (cost based)
break-even (cost based)
target return (cost based)
key components of markup/markdown floor based method
ease of use, inventory, ignores demand
ceiling-based pricing method
objective value (TEV)
perceived value (customers wtp)
ceiling-based pricing method
objective value (TEV)
perceived value (customers wtp)
what are pricing decisions influenced by
reference value, differentiation value
what is TEV
true economic value, a reference value (price of closest substitutes) + (positive differentiation value) - (negative differentiation value)
in terms of value capture, what happens when the product price is “high” and the marketing expenditure is “low”
no unit sales
in terms of value capture, what happens when the product price is “high” and the marketing expenditure is “high”
feasible
in terms of value capture, what happens when the product price is “low” and the marketing expenditure is “low”
feasible
in terms of value capture, what happens when the product price is “low” and the marketing expenditure is “high”
no unit contributions
how is value capture generally achieved
by directing messages that appeal to their central route to processing
what two routes does the elaboration likelihood model include
central route and peripheral route
what is the central route
high involvement
receives message –> arguments/counter –> LNG term memory –> behavior
what is the peripheral route
low involvement
receives message –> attention to cues (price) –> tentative feelings –> behavior
what is a distribution channel
a set of interrelated entities that enable a firm to pursue strategic objectives
what is the route to manage interrelationships
supplier –> manufacturer –> distributor –> dealer –> customer
what type of view should companies adopt
a pro-active or integrative view
what are the channel structure decisions
channel breadth/coverage (intensive, selective, exclusive)
channel length
what are the channel management decisions
multiple dimensions (norms, power, conflict, service, relationships)
what is channel breadth/coverage
consumer behavior
manufacturer’s positioning strategy
legal considerations
whats included in consumer behavior in terms of channel breadth/coverage
involvement, product complexity, frequency of purchase, monetary commitment
what included in manufacturer’s positioning strategy in terms of channel breadth/coverage
market conditions, competitive aspects
whats included in legal considerations in terms of channel breadth/coverage
illegality, rule of reason
what is channel length/depth
shortest channel: directly from manufacturer to customer (theoretical length of 0), cost generally higher, company has more control
longest channel: manufacturer to one or more middlemen then to customer (theoretical length is infinity)
basic variation in channel length
companies often seek control, trade-offs between cost of distribution and control in the channel
what are the major issues in channel management
channel conflict (essentially is a latent unobservable state)
what two types of conflict lead to consequences
conflict over means and conflict over goals
how many dimensions do channel decision involve
multiple dimensions
what is channel service
human component, agency relationships
what are channel relationships
behavioral/attitudinal dimensions
what is channel power
includes multiple bases
