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Marketing management > Marketing management > Flashcards

Marketing management Flashcards

1
Q

Value proposition

A

Defines the value that an offering aims to create for the relevant participants in the market

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2
Q

Four key entitiees

A

Customers, the company, its collaborators, and its competitors

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3
Q

The optimal value porposition consists of

A

Company value, customer value, collaborator value

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4
Q

Seven tactics defining the marketing mix

A

Product, service, Brand, price, incentives, communication, distribution

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5
Q

Bottum up business model generation

A
  1. stems from a deliberate research and development process which leads to improvement of a particular product or product feature
  2. Can also stem from advancement in technology that are not company specific and are available to all companies
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6
Q

Targeting

A

The process of identifying customers from whom the company will optimize its offering

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7
Q

One for each strategy

A

Developing something different for both clients

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8
Q

Customers vary in two main aspects

A
  1. their needs and resources

2. Their readily observable characteristic

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9
Q

Strategic targeting

A

Identifying which customers to serve and which to ignore

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10
Q

Customer revenues

A

Involve money received from customers for the right to own and/or use a companys offering

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11
Q

Costs of serving target customers

A

Involve expenses necessary to tailor the offerings benefits to fit target customer

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12
Q

Product line value

A

Reflects the synergies between the focal offering and the offerings in the companys product line

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13
Q

Scale value

A

Refers to the benefits received from the scale of the companys operation

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14
Q

Communication value

A

Reflects customers potential to influence other buyers

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15
Q

Information value

A

Reflects the worth of the information provideed by customers

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16
Q

Target compatibility

A

Reflects the companys ability to fulfill the needs of target customers better than the competitors

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17
Q

Synergistic offerings

A

Are a strategic asset to the degree that they facilitate customer acceptance of related company offerings

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18
Q

Access to capital

A

Provides the company with resources to carry out different aspects of its strategy and tactics

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19
Q

Tactical targeting

A

Is similar to strategic targeting in that it also involvess identifying target customers. However, unlike strategic targeting, which aims to determine which customers are target and which to ignore, tactical targeting aims to identify an effective selected target customers. The key aspects of tactical targeting are discussed in more detail below

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20
Q

Key segmentation principles

A

Relevance, similarity, exclusivity and comprehension

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21
Q

Developing a value proposition

A

The value that an offering aims to create for its target customers

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22
Q

Customer value as a marketing concept

A

Understanding the essence of customer value and identifying its key domains is essential for the development of a viable marketing strategy

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23
Q

An offering can create value across three domains

A

Functional, psychological, and monetary

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24
Q

Functional value

A

The benefits and costs directly related to an offerings performance

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25
Q

Psychological value

A

The psychological benefits and costs associated with the offering

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26
Q

Monetary value

A

The monetary benefits and costs associated with the offering

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27
Q

An offerings ability to create value is determined by three key factors

A
  1. the attributes defining the companys offering
  2. the relative importance of these attributes for target customers
  3. the offerings performance on these attributes
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28
Q

Reference point dependence

A

Reflects the fact that consumers often do not have well articulated preferences and that their evaluations of market offerings depend on the decision context

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29
Q

Diminishing marginal value

A

The utility from improving an offerings performance on the same dimension doees not increase in a monotonic fashion

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30
Q

Strategies for creating superior customer value

A
  1. improve the offerings performance on a given attribute
  2. add a new attribute on which the offering has an advantage
  3. Increase the perceived importance of an attribute on which the offering has an advantage
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31
Q

Need based framing

A

Directly links the benefit of the offering to a particular customer need

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32
Q

User based framing

A

Defines the offering by associating it to a particular type of buyer

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33
Q

Category based framing

A

Defines the offering by relating it to an already established product category

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34
Q

Competitive framing

A

Defines the offering by explicity contrasting it to competitors offerings and typically highlighting those aspects of the offering that differentiate it from the competition

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35
Q

Product line framing

A

Defines the offering by comparing it to other offerings in the companys product line

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36
Q

Positioning on functional benefits

A

Aims to create functional value by emphasizing a particular aspect of an offerings performance

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37
Q

Positioning on psychological benefits

A

Emphasizes the psychological value associated with the offering

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38
Q

positioning on monetary benefits

A

Emphasizes the monetary value associated with the offering

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39
Q

Single beneift positioning

A

Involves emphasizing the value delivered by the one (primary) attribute the company bleievs will most likely provied customers with a compelling reason to choose its offering

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40
Q

Multi benefit positioning

A

Emphasizes the benefits delivered by the offering on two or more attributes

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41
Q

Holistic positioning

A

Emphasizes the overall performance without highlighting individual benefits, enticing custoemrs to hcoose the offering based on its performance as a whole rather than on particular benefits

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42
Q

Search attributes

A

Products and services are associated with the least amount of uncertainty are typically identifiable through inspection before purcahse

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43
Q

Experience

A

Products and services carry greater uncertainty and are revealed only through consumption

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44
Q

Credence

A

Proudcts and services have the greates amount of uncertainty and their quality is not truly revealed even after consumption

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45
Q

Performance

A

Products vary in their performance on different attributes

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46
Q

Consistency

A

Ensuring that in kind products and services are identical and consistent with specifications

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47
Q

Compatibility

A

Refers to the degree to which an offering is consisten with certain already existing standards and complementary products

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48
Q

Brand identity

A

Includes the identifying characteristics of the brand, such as brand name, logo, symbol, character, slogan, jingle, product design, and packaging. Should be unique, memorable, likeable and consistent with other brand elements

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49
Q

Brand meaning

A

Reflects the brand related perceptions and beliefs held by the buyers: it reflects buyers understanding of the value proposition associated with a particular brand

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50
Q

The five C’s

A

Customer, company, collaborators, competitors, and context

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51
Q

Brand Hierarchy

A

Should different offings in a companys product line be positioned as individual brands or should share the same brand name

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52
Q

Individual branding

A

Involves creaing separate brands for each product or product line

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53
Q

Umbrella branding

A

involves using a single brand for all fo a companys products

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54
Q

–

A

–

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55
Q

Brand repositioning

A

Reasons: respond to a change in target customers, reach a new target market, counteract a change in competitors branding strategy or to respond to legal challenges

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56
Q

Brand extension

A

Using the same brand name in a different context such as a different producta category or different price tier

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57
Q

Vertical brand extension

A

Stretch the brand to a product or service in a different price tier

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58
Q

Horizontal brand extension

A

Applying the brand to a different products category

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59
Q

Brand equity

A

is the differential effect that knowing the brand name has on the customer response to
the product and its marketing.

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60
Q

Brand equity and brand power

A

A key driver of brand equity is the brands power. Brand power reflects the brands ability to differentiate the offering from the competition and create customer value through meaningful associations. Unlike brand equity, which reflects the value of the brand to the company, brand power reflects the value a brand creates in the minds of customers

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61
Q

Cost based approach (brand equity)

A

Involves calculating brand equity based on the cost involved (E.g. Marketing research, advertising, and legal costs) if the brand needs to be created form scratch at the time of valuation

62
Q

Market based approach for calculating brand equity

A

Involves calculating brand equity based on the difference in the cash flows generated from the branded product and a functionally equivalent but nonbranded product, adjusted for the costs of creating the brand.

63
Q

Brand equity formula

A

Sales revenue(brand) -Sales revenue (generic) - branding costs

64
Q

Financial approach

A

Involves calculating brand equity based on the net present value of the cash flows derived from the brands future earnings. This approach typically involves three key steps: (1) estimating the companys future cash flows, (2) Estimating the contribution of the brand to these cash flows, and (3) adjusting these cash flows using a risk factor that reflects the volatility of the earnings attributed to the brand.

65
Q

–

A

–

66
Q

Brand audit

A

A comprehensive analysis of a brand most often to determine the source of brand equity

67
Q

Brand essence

A

The fundamental nature of the brand also referred to as brand promise. Brand essence distills the meaning of the brand into one key aspect the positioning of the brand. One way to think about brand essence is to think of the ness of the brand, such as “Apple-ness”

68
Q

cobranding

A

Branding strategy that involves combining two or more brands, typically from different product categories

69
Q

copyright

A

: A legal term describing rights given to creators for their literary and artistic works

70
Q

Fighting brand

A

A downscale brand introduced to shield a major brand from low price competitors

71
Q

Generification

A

Colloquialized use of brand names (e.g. in reference to the products they are associated with). The use of brand name as a generic term can lead to the loss of a companys right to the exclusive use of that brand name

72
Q

House of brands

A

a strategy where each brand has its own brand identity, often representing a separate demographic, need, or occasion

73
Q

Industrial property

A

A type of intellectual property that involves (1) inventions, (2) industrial designs and (3) identity marks such as trademarks, service marks, commercial names and designations

74
Q

Intellectual property

A

: The legal entitlement attached to the expressed form of an idea, or to some other intangible subject matter

75
Q

private labeling

A

Branding strategy in which an offering is branded by the retailer

76
Q

Regional brand

A

A brand available only in a particular geographic region

77
Q

Cost based pricing

A

: Involves setting prices using the companys costs as a benchmark. For example, in cost- plus pricing, an offerings final price is determined by adding a fixed markup to the cost of the offering

78
Q

Competitive pricing

A

Calls for using competitors prices as benchmarks. A popular version of this approach referred to as competitive parity pricing, involves setting the offerings price in a way that puts it at parity with that of competitors

79
Q

Demand pricing

A

Calls for setting prices based on customers willingness to pay for the benefits afforded by the companys offering

80
Q

When setting prices, a manager must consider five key factors

A

: Target customers, the companys goal and resources, its collaborators, competitors, and the context in which the company operates

81
Q

Skim pricing

A

Involves setting a higher price to “skim the cream” off the top of the market, represented by customers who seek the benefits delivered by the offering and are willing to pay a relatively high price for it.

82
Q

Skim pricing is appropriate in cases when

A

1) Demand is relatively inelastic
2) There is little or no competition
3) Cost is not a direct function of volume and significant cost savings are not achieves as cumulative volume increases
4) Being the market pioneer is unlikely to result in a sustainable competitive advantage
5) The company lacks the capital required for large scale production

83
Q

Reference price effects

A

To assess the price of a given offering, people typically evaluate it relative to other prices, which servea s reference points. By strategically choosing the reference price, a company can frame the price of its offering in a way that makes it more attractive.

84
Q

Price quantity effect

A

People are more sensitive to changes in price than to changes in quantity

85
Q

Price tier effects

A

People encode prices in tiers, such that an item priced at 1.00$ is typically encoded in the 1§+ price tier whereas 2$ is 2”+ price tier

86
Q

Price ending effects

A

Customers perception of prices is also a function of price endings. For example price ending in “9” often create the perception of discount, whereas prices ending in “0” might create the perception of quality

87
Q

Product line effects

A

Because many offerings are available as part of a companys product line, their relative prices can influence the demand for those offerings. (a group of related products under the same brand name manufactured by a company)

88
Q

Offering differentiation (price wars are more likely to happen when…)

A

Price wars are more likely when offerings are undifferentiated and can be easily substituted

89
Q

Cost structure (companies are more likely to engage in price wars when…)

A

Companies are more likely to engage in price wars when significant econoies of scale can be achieved by increasing volume

90
Q

Market growth (Price wars are likely to happen…)

A

Price wars are more likely to occur when markets are stagnant, and to grow sales a company has to steal share from its direct competitors

91
Q

Customer loyalty (price wars are more likely to happen…)

A

Companies are more likely to engage in price wars in markets in which customers are price sensitive and their switching costs are low

92
Q

Fixed cost effect

A

Price reductions have an exponential impact on profitability. To illustrate, in the absence of an increase in sales volume, reducing the price of an offering with a 10% profit margin by 1% will result in a 10% decrease in operating income

93
Q

Competitive reaction

A

Because in most cases competitors can easily match price reductions, they are rarely sustainable. Firms with similar cost structures can quickly lower their prices in response to a competitor’s action.

94
Q

Increased price sensitivity

A

Price wars often result in a shift in customers’ future price expectations, such that the lowered prices become the reference points against which future prices are judged

95
Q

Brand devaluation

A

Emphasis on price tends to erode brand power. This effect is exacerbated by the heavy price-focused communication campaigns that tend to accompany most price wars (because a company needs to promote the low price so that it can generate sufficient incremental volume to offset the lost profits resulting from the decrease in price).

96
Q

Circumventing price wars

A

1) Verify the threat of a price war
2) Evaluate the likely impact of the competitors actions
3) Develop segment specific strategies to address the competitive threat

97
Q

Predatory pricing

A

A strategy that involves selling below cost with the intent of driving competitors out of business.

98
Q

Price signaling

A

(1) Pricing strategy that aims to capitalize on price–quality inferences (higher priced products are also likely to be higher quality). Primarily used when the actual product benefits are not readily observable (also known as prestige pricing); (2) Indirect communication (direct price collusion is prohibited by law) between companies aimed at indicating their intentions with respect to their pricing strategy

99
Q

Brand management

A

process of designing and sustaining a mental image
in people’s minds that enables the company to identify its offerings, differentiate them from the competition,
and create distinct market value.

100
Q

brand referents

A

elements the company wants to link to brand

name in consumers’ minds

101
Q

Brand valuations interbrand

A

Financial performance, Role in purchase decision, competetive strength

102
Q

Brand valuations Brandirectory

A

financial performance, Brand investments, brand equity

103
Q

Brand valuations Forbes

A

Financial performance

104
Q

Brand activism

A

Taking a stance to something in an eg ad

Minimal benefits but high risk

105
Q

Positive effects of umbrella branding

A

Cross-category reputational effects through higher-order associations

Stronger brands are characterized by lower (i.e. less negative) price elasticity

106
Q

Negative effect of umbrella branding

A

Too many stock keeping units carrying the same brand name lead to lower perceived variety in the store

107
Q

Product life cycle

A

Product development, introduction, growth, maturity, decline

108
Q

Different stages of product adopters

A

Inovator (few), early adopter (few), mainstream adopters(many), laggign adopters(few)

From innovator to lagging adopters education and income slowly declines.

109
Q

value-based pricing

A

setting a price based on buyers’ perception of
value. Pricing begins with analyzing consumer needs and value
perceptions, and the price is set to match the perceived value.

110
Q

Gabor grangr pricing

A

Would you buy product x at price y

111
Q

Van vestendrop method

A

At what price would you consider the product to be a bargain, a great value for money?

At what price would you consider the product to be priced so low that you would feel the quality couldn’t be very good?

At what price would you consider the product as starting to get expensive, but you would still consider buying it?

At what price would the product be so expensive that you would not consider buying it?

112
Q

Conjoint analysis

A

Create multiple product profiles
• Ask to choose between options, rank, or
report the value (e.g. 0-100)
• Complex in execution and analysis
• Quantifies the value of each attribute

113
Q

Choice based conjoint analysis

A

Choose between different pairs/triads of options

allowing for no-choice

114
Q

Rank based conjoint analysis

A

Rank multiple options from most to least preferred

115
Q

Rating based conjoint analysis

A

Rate multiple options on a scale, e.g. from 0 to 100

116
Q

Balanced profile cards

A

attribute values appear equal number of times (within attribute)

117
Q

Orthogonal profile cards

A

attribute values NOT correlated with each other

42

118
Q

segmentation

A

Segmentation means dividing a market in certain types of segments that you could later target with
your marketing strategy. Segmenting can be done by several categories:

119
Q

Butterflies (portfolio)

A

High profitability but only short term

120
Q

True friends

A

Both high profitability and highly loyal

121
Q

Strangers

A

Not profitable and merely for a short term

122
Q

Barnacles

A

Very loyal but not so profitable

123
Q

mission statement

A

Why an organization exists and what its overall goal is

124
Q

Cash cow

A

low market growth high market share

125
Q

Star

A

High market growth high market share

126
Q

Dog

A

Low market growth low market share

127
Q

Question mark

A

Low market share high market growth

128
Q

Profit margin formula

A

Profit/sales

129
Q

Net market contribution formula

A

sakes- cost of goods old - marketing expenses

130
Q

Marketing return on sales formula

A

Net marketing contribution / sales

131
Q

Marketing return on investment

A

Net marketing contribution / marketiing expenses

132
Q

Meso environment

A

External actors close to the company that influence the possibilities to serve consumers ; actions of the company haev direct influence on the meso environment

133
Q

Micro environment

A

Actors insidde the company that have an influence on the marketing funcioning of the company

134
Q

Macro-environment

A

External, big societal powers that influence the possibilities to serve consumers

135
Q

line extention

A

Extending an existing brand name to new forms, colours, sizes, ingredients or flavours of an existing product category

136
Q

Multibrands

A

Adding new brand to an existing product category

137
Q

brand extention e

A

Extending an existing brand name to new product categories

138
Q

to find perceived value of an offering you can

A

1) self reported WTP

Conjoint analysis

139
Q

Price elasticity formula

A

Demandt2-demandt1/demandt1 = percentage change in demand (same for price)

140
Q

top down business model

A

starts with a broader consideration of the target market and the
relevant value exchange, which is then followed by designing a specific offering (What new
can a product bring into the market?)

141
Q

4 p framework

A

Product price place promotion

142
Q

red ocean

A

intense competition in this market

143
Q

Blue ocean

A

Little competition because it is difficult to get resources

144
Q

agglomeration

A

a process process that aims to group individual buyers into
segments by focusing on the similarities in their needs and resources with respect to
the company’s offering

145
Q

Comprehensiveness (segmentation principles)

A

segments should include all potential customers in a given

market, such that each customer is assigned to a segment

146
Q

Exclusivity (segmentation principles

A

customers in each segment should be different (heterogeneous) from
those in other segments

147
Q

loss aversion

A

aspect of the value function
extends the principle of reference- point
dependence to assert that people value the
positive (gains) and negative (losses) deviations
from the reference point in a different fashion,
placing more weight on losses than gains
(indicated by a steeper bottom line).

148
Q

The diminishing marginal value

A

principle states that the value function is not linear
but concave. Improving the offering’s
performance will have greater impact on
its subjective value at a lower level of
performance; as the offering’s overall
performance improves, further improvements
will have progressively decreasing impact.

149
Q

Equal-weight heuristic

A

presents that a buyer might evaluate only the most important attributes, without taking into account the performance of the options on all attributes.

150
Q

Lexicographic heuristic

A

presents that buyer might consider only the most important attribute describing the choice options and select the option with the highest value on that
attribute

151
Q

comparative framing

A

competetive framing and product line framing

152
Q

Non comparative framing

A

Need based framing
user based framing
category based framing

Marketing management (3 decks)

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