Marketing Midterm Flashcards
If present product in present market
market penetration
If present product in new market
market development
If new product in present market
product development
If new product in new market
diversification
Types of market environment
- Economic environment
- Technological environment
- Political and legal environment
- Cultural and social environment
Marketing Strategy Planning Process
Narrowing down to the best opportunities -> Developing a strategy
Three Basic Objectives Provide
Guidelines
- Socially and Economically Useful Function
- Develop an Organization
- Earn Profit
The Competitive Environment types
Monopoly -> Oligopoly -> Monopolistic Competition -> Perfect Competition
Key Economics Forces
- Global Economy
- Rapid Change
- Interest Rates
Macroeconomic factors
Inflation
Unemployment rate
Households
Availability of credit
Business Taxes
Booms or Recessions
MACRO - Environmental
Ethical Practices
Global Warming
Pollution
Energy and Scarce Resource Conservation
Environmentally Friendly Ingredients and Components
Recycling and Non-Wasteful Packaging
MACRO - Social
- Population figures
- Age profiles – age ranges, life expectancy etc.)
- Genders – ratios of genders
- Lifestyle Changes – urban living, leisure time, how people interact
- Mobility migration
- Cultural differences – changes in how people are brought up and gender roles
- Religions
MACRO – Legal/Regulatory
- New laws and regulations
- Changes in laws or regulation
- New legal institutions or other bodies
- Changes in the way regulations are administered
Evaluating Opportunities in International Markets
<-Insensitive (Industrial Products)——Basic
commodity-type consumer products——-Sensitive (Consumer products linked to cultural variables)->
Market segmentation
involves aggregating prospective buyers into groups, or segments, that(1) have common needs and(2) will respond similarly to a marketing action
Bases/factors/variables for Segmenting Consumer Markets
- Geographic
- Demographic
- Psychographic
- Behavioral
Geographic Segmentation Dimensions
Region of the world, country, region, size of the city
Demographic Segmentation Dimensions
- Income
- Gender or age
- Family size or family life cycle
- Occupation or education
- Ethnicity or social class
Behavioral Segmenting Dimensions
- Needs
- Benefits sought
- Thoughts
- Rate of use
- Purchase relationship
- Brand familiarity
- Problem solving approaches
- Information required
Psychographic Segmenting Dimension
Psychographics is the science of using psychology and demographics to better understand consumers. In psychographic segmentation, buyers are divided into different groups on the basis of psychological/personality traits, lifestyle, or values. People within the same demographic group can exhibit very different psychographic profiles.
A personality such as extrovert, introvert, aggressive, etc.
Values such as thinkers, believers, experiencers, achievers etc.
Levels of segmentation
MASS MARKET
Full Market Coverage
Multiple SEgments
Single Segments
Individuals as Segments
CUSTOMIZTION
Finding the Relevant Segmenting Dimensions
All potential dimensions
Qualifying dimensions
Determining dimensions
(product type)
Determining dimensions
(brand specific)
Positioning
the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market. Positioning requires that marketers define and communicate similarities and differences between their brand and its competitors.
Value Proposition
The full positioning of a brand- the full mix of benefits upon which the brand is positioned
Economic needs of the customer
Economy of purchase
Convenience
Efficiency in use
Dependability
Income
Maslow’s Hierarchy of Needs
- Self-Actualization (desire to become the most that one can be)
- Esteem (respect, self-esteem, status, freedom)
- Love and belonging (friendship, family, sence of connection)
- Safety needs (personal security, employment, resources, health, property)
- Physological needs (air, water, food, shelter, sleep, clothes)
Selective exposure
our eyes and minds seek out and notice only the information that interests us
selective perception
screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs
selective retention
we remembered only what we really want to remember
Attitudes Relate to Buying Key Issues
An opinion, point of view, changing negative attittudes, ethical issues may arise, building consumer trust
AIO
Understanding the lifestyle of target customer has been especially helpful in providing ideas of advertising themes.
Consumer problem solving
Information search
Identify Alternatives
Set criteria
Evaluate alternatives
Problem Solving Continuum
Routinized Response Behavior
Limited Problem Solving
Extensive Problem Solving
