KNOW THESE Flashcards
Marketing strategy planning process overview
Boston consulting group portfolio analysis (BCG)
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Four Market-Product Strategies
market penetration
market development
product development
diversification
market pentration
selling more products in existing markets
market developmet
selling existing products in new markets (either geographic or new segments)
product development
selling new products in existing markets (innovate or die!)
diversification
selling a new product in new markets
market product grid
market penetration
market development
product development
diversification
purchase decision process
problem recognition (perceiving a need)
information search (seeking value)
evaluation of alternative (assessing value)
purchase decision (buying value)
post-purchase behaviour (value in consumption or use)
problem recognition
actual state VS. desired state
information search
internal search, external search (personal, public and marketing sources)
alternative evaluation
assessing/comparing value
evaluative criteria: what’s important
consideration / evoked set: marketer’s goal is to become part of this set
purchase decision
buy/don’t buy? which product? from who? when?
post-purchase behaviour
satisfied consumers tell 3 people, dissatisfied tell 9
consumer Voice is powerful
cognitive dissonance
influences on the consumer purchase decision process
marketing mix influences: 4 Ps
Socio-cultural influences: personal influence, reference groups, family, culture, subculture
Situational influences: purchase task, social surroundings, temporal effects, antecedent states
psychological influences: motivation, personality, perception, learning, values, beliefs, attitudes, lifestyle
consumer purchase decision process
problem recognition
information search
evaluation of alternatives
purchase decision
post-purchase behaviour
four stages of selective perception
selective exposure
selective attention
selective comprehension
selective retention
as a marketer you can influence each stage
target marketers aim at specific targets
a segmenter: using a single target market approach- can aim at one submarket with one marketing mix
using multiple target market approach-can aimed at two or more submarkets with different marketing mixes
a combiner: using a combined target market approach-can aim at two or more submarkets with the same marketing mix
positioning statements contain these elements
- target market and need
- branded product name
- category in which it competes
- brand’s unique attributes and benefits
skimming VS penetration pricing
skimming: firm tries to sell at a high price before aiming at more price-sensitive consumers
penetration: firm tries to sell the whole market at one low price
break-even analysis
break-even point: the quantity at which total revenues and total costs are equal (not losing or making money)
BEP=FC/(unit price - unit VC)
customer-based brand equity pyramid
(4. relationships = what about you and me?) consumer brand resonance (intense, active loyalty)
(3. response = what about you?) consumer judgement consumer feelings (positive, accessible, reactions)
(2. meaning = what are you?)brand performance brand imagery (strong, favourable, and unique)
(1 identity = who are you? brand salience (deep, broad brand awareness)
product life cycle
the stages that a new product goes through”
1. introduction
2. growth
3. maturity
4. decline
market introduction
sales are low, awareness needs are high, focus on “primary demand”
market growth
profits go up and down, innovation attracts competition. monopolistic competition develops, profits peak and then decline
market maturity
persuasive, more costly promotion, brands are more similar / try to differentiate & innovate, greater price competition/price sensitivity, maturity may last a long time
sales decline
time for a replacement by a newer innovation
two ways:
1. harvest: a company keeps a product but reduces marketing support in an attempt to reap some minor profits
2. delete: company discontinues the product
the adoption curve
the sequential diffusion and acceptance of an innovation into the market by consumers
innovators, early adopters, early majority, last majority, laggards
innovators
venturesome, higher educated, use multiple information sources
early adopters
leaders in social setting, slightly above average education
early majority
deliberate, many informal social contacts
late majority
skeptical, below-average social status
laggards
fear of debt, neighbours and friends are information sources
stages in the new-product process
- new product development strategy
- idea generation
- screening and evaluation
- business analysis
- development
- test marketing
- commercialization
new product development strategy
setting the new product strategic direction for the company as a whole, and the precise objectives for the project at hand
idea generation
developing a pool of new product ideas
screening and evaluation
reduces the list of ideas down to a list of promising concepts
concept tests: external evaluations of a new product idea, rather than the actual product itself
business analysis
financial projections on the impact of bringing the new product to market and selling it in the future
devlopment
the new product idea is turned into a prototype for futhur consumer research and manufacturing tests
market testing
offering anew product for sale in a limited basis in a defined geographic area to assess its success
commercialization
when the new product is brought to market with full-scale production, sales, and marketing support
