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Marketing And Customer Value > Lectures 4-6 > Flashcards

Lectures 4-6 Flashcards

1
Q

what is a market

A

a group of customers with heterogeneous needs and wants.

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2
Q

Target market

A

a particular group of consumers at which a product or service is aimed.

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3
Q

Target marketing is based on three premises

A
  1. Individual buyers can be identified
  2. Sellers understand the needs of buyers
  3. Sellers meet the needs of target buyers
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4
Q

Market segments

A

Subgroups within the total market that are relatively similar in regard to certain characteristics

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5
Q

Mass marketing

A

A mass marketer sees buyers as having common wants, needs and demands.
A single product offering is created, communicated and delivered to meet the needs of most people in the market

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6
Q

One-to-one marketing

A

seeks to appeal to each customer by providing aunique, customised offering that will meet their individual needs

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7
Q

When choosing target markets, the organisation will generally consider three factors

A
  1. Its own resources
  2. Market demand
  3. competition
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8
Q

Small organisations with limited financial resources frequently adopt one of the following specialised approaches to target marketing

A
  1. Product specialisation
  2. Market specialisation
  3. Product-market specialisation
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9
Q

The target marketing process 3 stages

A
  1. Segmentation
  2. Targeting
  3. positioning
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10
Q

Market segmentation 2 steps

A
  1. define market segments
  2. Profiling the market segments
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11
Q

Identify segmentation variables (4)

A

geographic
demographic
psychographic
behavioural

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12
Q

Effective segmentation criteria (5)

A

Measurability
Accessibility
Substantiality
Practicability
Stability

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13
Q

Market targeting involves…

A

a systematic examination of the range of possible market segments, their potential sales volume and revenues

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14
Q

Evaluate potential segments through analysis of…

A

Sales potential
Competitive situation
Cost structure

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15
Q

Positioning

A

how the customers distinguish the organisation, its products and its brands from competitors when they are selecting from among the available alternatives

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16
Q

Market positioning

A

the way in which target segments perceive an organisations offering in relation to competing offerings

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17
Q

Company positioning

A

a positioning strategy designed to create a single market perception of the organisation in relation to competitors
e.g Apple vs Microsoft

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18
Q

Brand positioning

A

a positioning strategy designed to create a market perception of a particular brand, usually based on product attributes
e.g.Lexus vs Toyota

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19
Q

Some commonly used positioning variables include:

A

Attributes
use/application
Product user
Price and quality
Product class

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20
Q

The marketing mix for each segment should:

A

Be consistent with the desired positioning
Be internally consistent
Be sustainable in the long term

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21
Q

Product

A

a good, service or idea offered to the market for exchange

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22
Q

Total product concept

A

Describes the core product, expected product, augmented product and potential product in order to analyse how the product creates value for the customer

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23
Q

Core product

A

the fundamental benefits of product

24
Q

Expected product

A

attributes that actually deliver benefits

25
Q

Augmented product

A

benefits buyer may not require as part of basic fulfilmentof needs

26
Q

Potential product

A

all possibilities that could become part of the expected or augmented product

27
Q

Shopping products

A

moderate to high engagement decision making, with the purchases decision based on features, quality and price

28
Q

Convenience products

A

inexpensive, frequently purchased, products bought with low engagement decision making

29
Q

Specialty products

A

highly desired products with unique characteristics that consumers will make considerable effort to obtain

30
Q

Unsought products

A

purchased to meet a sudden, unexpected need

31
Q

The typical stages a product progresses through during its life cycle

A

○ New Product Development:
○ Introduction
○ Maturity
○ Decline

32
Q

Product line extensions

A

new products that are closely related to existing products ina the product line

33
Q

Brand

A

A collection of symbols intended to create an image in the customers mind that differentiates a product from competitors’ products

34
Q

○ Brand image

A

■ The set of beliefs that a customer has regarding a particular brand

35
Q

○ Brand equity

A

■ Added value that a brand gives a product

36
Q

○ Brand loyalty:

A

Customers highly favourable attitudes and purchasing behaviourtowards a brand

37
Q

Brand metrics

A

Value of brand in terms of brand assets, stock price analysis, replacement cost, brand attributes, and brand loyalty

38
Q

○ Compulsory label information can include:

A

Brand name and logo
Product name
Ingredients list
Use by date or date of packaging
Bar code

39
Q

Igor Ansoff9s product-market growth strategy:

A

Market Penetration
Product Development
Market Development:
Diversification

40
Q

○ Price is directly related to profitability (equation)

A

Profit = (price x sales volume) - total costs

41
Q

○ Determining pricing objectives

A

should be
specific,
measurable,
actionable,
reasonable
timetabled

42
Q

○ Return on investment (ROI)

A

The profit required to justify investment in a particular product orproject

43
Q

Pricing objectives tend to focus on various combinations of the following issues:

A

profitability
long‐term prosperity
market share
positioning
what the customer is prepared to pay

44
Q

○ Pricing can be based upon

A

Costs
Demand
Competition

45
Q

➢Cost-based pricing

A

a percentage or dollar amount is added to thecost of a product in order to determine its selling price

46
Q

Fixed costs

A

Costs that are constant regardless of the amount of products being sold
e.g. cost of factories

47
Q

Variable costs

A

Costs a company incurs to sell additional products e.g.delivery costs

48
Q

○ Break-even analysis

A

An analysis designed to estimate the volume of unit sales required tocover total costs

49
Q

○ Break-even point

A

■ The quantity at which total revenue = total costs

50
Q

Margins

A

The effect on costs and revenue when an organisation produces and sells one more unit of product

51
Q

○ Demand curve

A

A plot of how much people will buy things based on a products price

52
Q

Economies of scale

A

As the amount of units produced increases, thecost to produce each unit decreases

53
Q

Low‐cost production

A

Often based on country of origin

54
Q

○ Penetration pricing

A

setting a low price in order to gain rapid market share and turnover for a new product

55
Q

○ Price skimming

A

Charging the highest price that customers who most desire the product are willing to pay, and then lowering the price to bring in larger numbers of buyers

56
Q

○ Pricing includes areas subject to legal restrictions:

A

essential services
misleading and deceptive conduct
price collusion
price discrimination
comparability and clarity of pricing

Marketing And Customer Value (3 decks)

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