Marketing Exam 2 Flashcards
The purpose of marketing research is to…
…inform decisions and reduce uncertainty
What is the Hawthorne effect?
This effect describes changes in behavior that occur when subjects are aware they’re being observed
Pros and cons of in-person focus groups
More (non-verbal) data, higher risk of bias due to social influence and conformity
Issue with loaded question?
Unjustified assumption
Issue with leading question?
Question impied/leads to correct/desired answer
Issue with unclear question
Overly technical, excessive jargon
Pros of primary data
Specific to objective, data is current
Cons of primary data
Expensive, time consuming, risk of bias
Brand Equity
Percieved value that brand adds to product
Licensing
Selling the right to use brand name for a specific purpose and time period
Co-branding
Two brands collaborating to market a new product
Brand extension
Taking an existing brand into a new product category
Line extension
Itroducing a new product in an existing product category
Issues with line extensions
Cannibalization of existing products
Brand extension issues
Low brand equity could lead to failed extensions, brand may not fit in new category
Product levels
Core benefits, actual product and augmented product
Convenience product type characteristics
Low involvement and low loyalty (gum)
Shopping product type characteristics
High involvement and low loyalty (cars)
Specialty product type characteristics
High involvement and high loyalty (luxury clothes/watches)
Unsought product type characteristics
Moderate involvement and low loyalty
A product can only be called new for how long?
6 months
CoA - Innovators
Young, risk-takers, high income
CoA - Early Adopters
Open to change, opinion leaders, heavy media users (PRE CHASM)
CoA - Early Majority
Middle class, avoid being first or last, deliberate + cautious (POST CHASM)
CoA - Late Majority
Skeptics, older, lower income
CoA - Laggards
Conservative, highly risk averse, bound by tradition
Product life cycle
Introduction, growth, maturity and decline
Marketing Mix during introduction
Product: few variations
Promotion: goal is building awareness and inducing trial
Place: limited distribution network
Price: high to recover costs or low to quickly gain market share
Marketing mix during growth
Product: new variations, enhanced features
Promotion: Differentiate brand, promotions to increase market share
Place: Increased distribution network
Price: may increase but stabalizes/drops with competiton
Marketing mix during maturity
Product: further (minor) modifications
Promotion: remind custoemrs to keep buying, maintain market share
Place: continual increases to distribution
Price: remains the same or drops more due to competition
Marketing mix during decline
Product: weak-selling items phased out
Promotion: advertising drastically reduced, targets loyalty
Place: Distribution outlets shrink considerably
Price: further drops
Definition of advertising
impersonal, sponsored, one-way communication
Definition of advertising campaign
A series of related ads with a common theme or slogan
Types of media
Owned, earned and paid
Definition of public relations
Communication (other than paid media) to foster a favorable image and relationship between the company/brand and the public
