flashcards mid semester test
1
Q
Marketing
A
organisational function and a set of processes for creating, communicating, and delivering value to customers.
Manages customer relationships to benefit the organisation and stakeholders.
2
Q
The 3 steps of the Marketing Plan
A
Planning phase, implementation phase,
control phase
3
Q
Planning Phase
A
1) Business mission and objectives (what are we trying to achieve)
2) Situation analysis (SWOT)
4
Q
Implementation Phase
A
3) Identify opportunities (segmentation, targeting, and positioning)
4) Implement marketing mix (product, price, place, & promotion)
5
Q
Control Phase
A
5) Evaluate performance using marketing metrics
6
Q
Potential customers have
A
An interest in the offer and the ability to buy it
7
Q
Value
A
what you get / what you give
8
Q
4 P’s of Marketing
A
Promotion, product, place, and price
9
Q
Product
A
Create value by developing a variety of offerings (service, goods, ideas) to satisfy customers needs
10
Q
Service is …
A
Tangible
11
Q
Goods is…
A
Intangible
12
Q
Price
A
Capturing value. Not always monetary
13
Q
Place
A
Describes all activities necessary to get the right product to the right customer at the right time, at the right place.
14
Q
Promotion
A
Communication by a marketer that informs, persuades, and reminds potential buyers about a product, service or idea to influence their opinions or elicit a response
15
Q
Marketing is about satisfying … & ….
A
Customer needs & wants
16
Q
What are the various eras of marketing?
A
Production, Sales, Marketing, Value-based marketing
17
Q
Does providing good value simply mean selling at a low price?
A
No, it means that it is a fair price/profitable, and satisfies the customers’ wants and needs at the right time and place
18
Q
The balance of power has shifted from the marketer due to:
A
Transparency of information,
and ubiquity of choice
19
Q
Empowered customers are…
A
More demanding, less forgiving, and want appropriate, relevant, individualised interaction.
They have more access to products, prices, and competition.
20
Q
Active consumers
A
influence brand perceptions through blogs and reviews
21
Q
E-word of mouth (E-WOM)
A
Occurs outside the control of the firm.
Allows consumers to engage with other consumers (both positive and negative)
Shapes the brand’s story and becomes the customer’s reality.
22
Q
The Digital Channels
A
1) Websites and Social Media
2) Search Engines
3) E-mail
4) Mobile phones
23
Q
The 4-E framework for Social Media
A
Excite - through relevant offerings
Educate - communicated product value
Experience - simulate product trial
Engage
24
Q
Customer engagement by
A
Listening and responding (via social media sites)
Involving - particularly opinion leaders and/or bloggers
Empowerment - consumers answering other consumers questions, the notion of co-creation
25
Engagement leads to increased:
loyalty, commitment, and profitability
26
Going mobile has resulted in...
the growth of price-check and fashion-apps.
| Gamification
27
What can Customer data management do?
(Big Data) can answer questions such as:
"who are our most influential customers?"
"where does our material get shared?"
"what excites different people?"
28
How does digital marketing empower consumers?
It gives the consumers the facility of accessing to information about prices, products and competitors
29
What is Big Data?
Information we can collect from customers on our businesses.
"Have they shared? What's trending?"
30
Firms asses their marketing position and decide on their marketing strategy by developing ....
A marketing plan
31
Marketing is about ...
Satisfying customers needs and wants
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The term ... refers to the trade of things of value between the buyer and seller.
exchange
33
The four fundamental decisions that marketers make concern the following:
Product, price, place and promotion
34
*(optional)* Placement, which is one of the elements of the marketing mix, involves creating value for customers by:
Making sure that all the aspects of the supply chain , including suppliers, manufacturers, warehouses, stores and other firms involved, are working together.
35
At the Lewis Coffee Shop, customer can bring their own make of coffee and the baristas will steam the milk for them, free of charge. The Lewis Coffee Shop is involved in...
Customer Relationship Management
36
The process of ensuring that a website is highly ranked on a search engine is called ...
Search Engine Optimisation
37
Maggie's smartphone app builds customer loyalty by having users go through a game-live design to create interest and engagement. This process is called ...
Gamification
38
Corporate partners
Firms that work together to create a seamless system that delivers goods and services to customers when they want them
39
Analysing the macroenvironment reveals your
SWOT (strengths, weaknesses, opportunities, threats)
40
What is culture?
The shared meanings, beliefs, morals, values and customs of a group
41
What is Country Culture?
Perceptible nuances such as behaviour, dress, symbols, ceremonies, language, tastes and food preferences
42
What is Regional Culture?
The culture of the particular region in which people live.
43
Various cultures influence ...
what, why, how, where, and when we buy
44
Demographics provides...
An easy-to-understand snapshot of the typical consumer in a specific target market.
45
Generational cohorts
Traditionalists (born before 1946) - prefer face to face communication. Less inclined to share emotions.
Boomers (born between 1946-1964) - feel comfortable communicating on the phone. Like to collaborate and communicate in groups.
Gen X (born between 1965-1981) - are protective of their time, interested in different points of views, and are heavy users of e-mail.
Gen Y (born between 1982-2000) - feel less comfortable communicating face to face. Like to engage and contribute or share feelings and ideas. Texting.
46
Under-Employment
Under-use of a worker because of a job does not use the worker's skills
47
Big 5 social trends
```
Thrift
Health and wellness
Greener consumers
Privacy concerns
Time-poor society
```
48
Australian Competition and Consumer Commission (ACCC) imposes ...
Heavy penalties on anti-competitive practices such as price fixing and collusion.
49
Why do we need to analise our own company?
So that we know our strengths, weaknesses, opportunities, and threats.
50
Analysing the macroenvironment reveal ...
SWOT
51
Which of the following is not part of a firm's immediate environment?
Retailers
52
The term ... refers to the shared meanings, beliefs, morals, values and customs of a group of people
Culture
53
The term ... refers to the characteristics of human populations and segments
Demographic
54
Over the years, the distribution of income has ...
Become more polarised
55
Malcolm is becoming more price sensitive. One could say that he is ...
Thrifty
56
What is Consumer Buying Behaviour
It is the buying behaviour of the final consumer who buys goods and services for personal consumption.
57
what is the Maslow's Hierarchy of Needs
```
It is a theory of motivation which states that five categories of human needs dictate an individual's behaviour.
Self actualization (self development)
Esteem needs (self esteem, status)
Social needs (sense of belonging, love)
Safety needs (security protection)
Psychological needs (hunger, thirst)
```
58
Psychological factors
Motivation
Perception
Learning
Beliefs and Attitudes
59
Perception consist of:
Selective Learning
Selective Distortion
Selective Retention
60
Learning consists of:
Past experiences with a product/brand
61
Social Factors consist of:
Groups (membership and reference)
Family
Social Roles and status
62
Situational Factors consist of:
```
Purchasing situation (shop only accepts cash)
Shopping situation (well-trained sales people)
Temporal states (mood consumer is at that point)
```
63
The 4 types of Buying Decisions
Extended Problem Solving
Limited Problem Solving
Impulse Buying
Habitual Decision Making
64
What is Extended Problem Solving?
Buying decision that calls for a lot of effort and time (High involvement product)
e.g., buying a house, car.
65
What is Limited Problem Solving?
Requires little to moderate amount of effort and time
| e.g. buying a t shirt
66
What is Impulse Buying?
Buying decision made on the spot when you see the product
| e.g., buying one chocolate
67
What is Habitual Decision Making?
Consumer engage little conscious effort (e.g. shampoo)
68
The consumer decision process
1) Need recognition
2) Information search
3) Attribute sets
4) Purchase and consumption
5) Post-purchase
69
Need recognition can be triggered by ... or .... stimuli
Internal or external
70
Example of internal stimuli:
Hunger, thirst
71
Example of external stimuli:
marketers aim to highlight unsatisfied need or desired states
72
Consumer needs can be ... or ...:
Functional or psychological
73
Internal search for information:
Consumer refers to their own memories and knowledge
74
External search for information:
Consumer refers to friends, family, salespeople and commercial exposure
75
Types of risks that can complicate or even discourage a purchase
```
Performance risk
Financial risk
Social risk
Physiological (or safety) risk
Psychological risk
```
76
Performance risk
Risk of a poorly performing product
77
Financial Risk
Associated with high cost of the purchase
78
Social Risk
What others think about the purchase
79
Physiological (or safety needs) Risk
Risk to personal safety when using the wrong product
80
Psychological risks
Risk that you may not feel comfortable or happy about using the product
81
Universal set
All possible brands for a product category
82
Retrieval set
Brands that can be readily retrieved from memory
83
Evoked set
Comprises of shortlisted brands you would readily consider purchasing
84
Market research is used to ...
Identify the consumer's evaluation criteria
85
Evaluation of alternatives.
Product attributes - evaluation of quality, price and other features
Degree of importance - which attributes matter most to me?
Brand beliefs - what do I believe about each available brand?
Expected product satisfaction
Evaluation procedures - choosing a product based on one or more attributes
86
Determinant attributes
Top few important attributes to the buyer.
87
Consumer decision rules
The information processing strategies of consumers
88
Decision rules can be either ... or ...
Compensatory or Non-compensatory
Compensatory - trade one product attribute against another
Non-compensatory - buyer makes a decision from only one or a small number of product attributes
89
Name a compensatory model
Multi-attribute model (aka Weighted Additive Model)
90
Name a non-compensatory model
Lexicographic Model
91
Post-purchase outcome
Customer satisfaction, post-purchase dissonance, and customer loyalty
92
Customer satisfaction is the gap between...
Expectation of performance and Perceived performance
93
Steps to ensure post-purchase satisfaction
Demonstrating correct product use
Encouraging feedback
Making contact with customers
After sales service/warranty claims
94
What is Post-purchase dissonance?
When a consumer questions the appropriateness of a purchase they have made
95
Customer loyalty
Opportunity to solidify relationship with the customer, so as to achieve repeat purchase.
96
Which social factors have the most influence on the purchase of a new outfit for a job interview?
Social roles and status
97
List some of the tactics stores can use to influence consumer's decision processes
Use brand ambassadors, advertise it
98
Jacqueline bought a product and found that it was defective. She knows not to buy the same brand again. What has Jacqueline experienced?
Post-purchase decision
99
The term '...' refers to needs pertaining to a products performance
Functional
100
... occurs when consumers spread negative information about a product, service, or store
Negative Word of Mouth
101
Andre was afraid his condominium would look shabby to his future in-laws, so he had it painted just before their visit. Andre was addressing his ... risk
Social
102
When Maya decided to buy a new computer, she thought about all the brands she could recall seeing advertised, but she would only consider those brands that she could buy at her local electronic store. This represents Maya's ... set
Evoked
103
Jonathan prefers shirts made with a 50-50 cotton blend, but he will sometimes buy shirts with less cotton if they are cheaper. Jonathan uses a ... to decide which shirt to buy
Compensatory decision rule
104
What is STP?
Segmentation, targeting and positioning
105
Steps of STP
1) Establish overall strategy or objectives
2) Segmentation methods
3) Evaluate segment attractiveness
4) Selecting a target market
5) Develop positioning strategy
106
Geographic
Dividing customers on the basis of where they live
107
Demographic
Dividing customers based in age, gender, income and education
108
Psychographic
Dividing your market based on customer's personality traits, values, attitudes, interests, and lifestyle (AIO's)
109
What is VALS?
(Values and Lifestyle Classification)
| VALS framework is a research instrument that measures Activities, Interests and Opinions (AIOs)
110
VALS consist of:
Principle oriented (buy based on idealised criteria) - thinkers and believers
Status oriented (opinion of others) - achievers and strivers
Actions oriented (activity and variety) - experiencers and makers
Innovators (abundant resources)
survivors (minimal resources)
111
Benefit segmentation
Divides consumers on the basis of product benefits.
| Enables marketers to use specific products to satisfy specific needs.
112
Behavioural segmentation
Divides consumers into segments on the basis of usage occasion, usage rate, and loyalty
113
Online behavioural segmentation
based on a customer's past and current shopping behaviour, and the behaviour of similar customers (from Data analytics)
114
A product/brand must be:
Identifiable - firms must be able to identify who is within their market to be able to design products to meet their needs.
Substantial - just because a market can be segmented does not necessarily mean it is a good segment
Reachable - be accessible to marketing messages.
Responsive - consumers in a segment should react similarly and positively .
Profitable - A hot segment today may not last long
115
Targeting strategies include:
Undifferentiated marketing
Differentiated marketing
Concentrated marketing
Micromarketing (one-on-one)
116
Undifferentiated marketing
Also called mass marketing
"One message for the whole market"
Company marketing mix -> market
117
Differentiated marketing
Company marketing mix 1 -> segment 1
Company marketing mix 2 -> segment 2
Company marketing mix 3 -> segment 3
118
Concentrated marketing
Company marketing mix -> segment 2
119
Micromarketing
Unique product -> individual consumer
120
What is a Product's Position?
The place the product occupies in consumers' mind relative to competing products
121
Benefits of using a positioning/perceptual map
Show how target market perceives the product.
Help understand the strengths and weaknesses of competitors.
Identify opportunities in the market.
Track progress of positioning strategy over time.
Enable successful repositioning to be planned.
122
Why information is needed
Marketing environment
Competition
Strategic planning
Customer needs
123
Marketing research consists of
A set of techniques for collecting, recording, analysing and interpreting data that aid marketing decision making
124
Assess
What info needs?
125
Develop
Where to get it?
126
Distribute information
Who needs it?
127
parts of the Iceberg Principle
Organisation
Symptoms
Problem definition based on symptoms
True problem
128
The 5 step marketing research process
1) Defining the objectives and research needs.
2) Designing the research.
3) Collecting the data.
4) Analysing the data and developing insights.
5) Formulating and implementing an action plan.
129
Defining the objectives and research needs
What information is needed to answer specific research questions?
How should that information be obtained?
130
Types of Research
Observational Research - gathering data by observing people, actions and situations (exploratory).
Survey Research - asking individuals about attitudes, preferences or buying behaviour (descriptive).
Experimental Research - using groups of people to determine cause-and-effect and relationships (causal)
131
How to Collect the data
Secondary Data Sources: Internal data (cheap, quick, but insufficient), Marketing intelligence.
Primary Data Sources: Marketing research (expensive)
132
What are the various segmentation methods?
Geographic, psychographic, demographic, benefit, behavioural, and online behavioural segmentation
133
Mary's cupcake shop segments consumers based on their lifestyle, or the way they live. The shop is employing a ...
Psychographic segmentation.
134
The term 'demographic segmentation' refers to ...
Organising customers based on their age, gender, income and education.
135
Procter & Gamble sells different products to different consumers using different advertising campaigns. Procter & Gamble is employing a ... strategy
Differentiated targeting.
136
An undifferentiated targeting strategy is also known as ...
Generic marketing
137
Sarah wishes to see how her product is perceived by consumers on price and quality relative to Mark's. She can create a ... to do so
Perceptual map
138
Qualitative Research
Focus group interviews.
Depth interviews.
Third person technique.
Role playing.
139
Qualitative Research techniques
Focus group interviews.
Depth interviews.
Third person technique.
Role playing.
140
Quantitative Research techniques
Survey research.
Physiological measures.
Questionnaire design
141
Types of questions in a research
Complex question.
Loaded question.
Double barrelled question.
Better question.
142
Formulating and implementing an action plan
```
Executive summary
Body
Conclusions
Limitations
Supplements, including tables, figures and appendices.
```
143
Ethics and standards developed by the Australian Market and Social Research Society (AMSRS)
Avoid intrusions into the consumer's privacy.
Avoid the misuse of information.
Avoid pitching products in the disguise of marketing research.
144
Difference between data and information?
Information is useful, processed, organised data.
| Data is an individual unit that carries no specific meaning.
145
What are some sources of secondary data?
Scanner data, social media sources, commercial sources.
146
... helps marketers understand the phenomenom of interest through broad, open-ended responses.
Quantitative research
147
Data that has been interpreted become ...
Information
148
The last step of marketing research is to ...
Formulate and implement an action plan.
149
Mark is engaging in ... when he is seeking structured responses that can be statistically tested
Quantitative research
150
A marketer who likes to examine purchase and consumption behaviours through personal or video camera scrutiny is engaging in
Observation
151
James conducts marketing research by manipulating variables to determine which has a casual effect on other variables. He is engaging in ...
Experimental research
!!!!!!!!!!
152
What is a product?
Anything that can be offered to a market for attention, acquisition, use or consumption. It satisfies a want or a need.
153
Components of a product
Core product / customer value - basic need being addressed.
Actual product: physical attributes (brand name, features, packaging)
Augmented product: associated services or non-physical aspects of the product (warranties, financing, after-sale services)
154
Types of consumer products
Convenience products
Shopping products
Specialty products
Unsought products
155
Convenience products
Buy frequently and immediately.
Low priced.
Many purchase locations.
156
Shopping products
Buy less frequently.
Gather product information.
Fewer purchase locations
157
Specialty products
```
Special purchase efforts.
Unique characteristics.
Brand identification.
Few purchase locations
(e.g. car)
```
158
Unsought products
New innovations
Products consumers don't want to think about.
Require much advertising and personal selling.
(e.g. life insurance)
159
Product mix decisions
Breadth, Depth, Product mix
160
Breadth
Number of different product lines.
161
Depth
Total number of items within the line.
162
Product mix
All the product lines offered.
163
Product line decisions
Product Line depth
Stretching
Filling
164
Product line depth
Number of items in the product line.
165
Stretching
Lengthen beyond current range (upward or downward).
166
Filling
Lengthen within current range.
| Fill the gaps to keep out competitors or match the more closely.
167
... is key to a company's survival
Brand awareness.
168
Advantages that brands provide:
```
Facilitates purchasing.
Establishes loyalty.
Protects from competition.
Is an asset.
Affects market value (brand equity).
```
169
Brand loyalty
Occurs when a consumer buys or consumes the same brand's product repeatedly over time, rather than using multiple suppliers within the same category.
170
Brand strategies
```
Brand ownership
Brand extension
New brands and multibrands
Co-branding
Brand licensing
Brand repositioning or rebranding
```
171
Brand ownership
manufacturer brands or national brands (owned and managed by manufacturer)
172
Brand extension
Line extension - existing brand names extended to new firms, sizes and flavours of an existing product company. (coke and diet coke).
Brand extension - existing brand names extended to new product categories.
173
New brands and multibrands
Multibrands - new brand names introduced in the same product category. Capture variety seekers or other segments.
New brands - new brand names in new product categories.
174
What is co-branding?
It is the practice of marketing two or more brands together, on the same package or promotion.
Attracts the consumers of one brand to other.
175
Brand licensing
Is a contractual agreement between firms, whereby one firm allows another to use its brand name, logo, symbols and characters in exchange for a negotiated fee.
176
Re-branding or brand repositioning
Improves the brand's fit with its target segment.
| Boosts the vitality of old firms
177
Types of packaging
Primary package - used by consumers (toothpaste tube)
| Secondary package - wrapper or exterior carton that contains the primary package.
178
Packaging can determine success of products by:
Allowing for the same product to appeal to different markets with different sizes and graphs.
Increasing exclusivity and hence price.
Smaller package size may be a hidden price increase.
179
Why is Product Labelling important?
Because it provides information needed for the purchase and consumption of the product.
180
Health insurance can be considered to be a ...
Unsought product
181
The complete set of all goods and services offered by Driscoll's Surf Shop is called the ...
Product mix
182
The term '...' refers to the number of product lines offered by a firm
Breadth
183
If many consumers are aware of a brand, you could say that ... is high
Brand awareness
184
If Apple decides to sell electric cars under the 'Apple' brand name, it is engaging in ...
Brand extension
185
Toothpaste tubes are an example of a ...
Primary package
186
A line extension is an increase of an existing product line's ...
Depth
187
beliefs and attitudes may be based on ...
Real knowledge, opinion, or faith
188
Motivation is...
Pressing need that requires satisfaction
189
Attribute sets:
Universal set
Retrieval set
Evoked set
