marketing principles week 1-5

Question 1

what is marketing?

Answer 1

creating and managing profitable customer relationships

Question 2

The twofold goal of marketing is to:

Answer 2

attract new customers and keep current customers by delivering satisfaction

Question 3

steps in the marketing process (4)

Answer 3

understand the market,
marketing strategy,
marketing program,
profitable relationships

Question 4

marketing research

Answer 4

Systematic design, collection, analysis and reporting of data relevant to a specific marketing situation facing an
organisation.
- can help access market potential, market share and effectiveness of marketing mix

Question 5

quantitative market research

Answer 5

Involving a large number of individuals* and is used

to get quantitative data on a topic (more than 100)

Question 6

Qualitative market research

Answer 6

Involving a small number of individuals used to get qualitative data on a topic (focus groups)

Question 7

consumer buyer behaviour vs consumer markets

Answer 7

buyer behaviour - The buying behaviour of final consumers (individuals and households) that buy goods and services for personal consumption
consumer markets - Combining all individuals and households that buy or acquire goods and services for personal consumption

Question 8

model of consumer behaviour (5) understanding consumer behaviour

Answer 8

- what consumers buy
– where they buy
– how and how much they buy
– when they buy and
– why they buy.

Question 9

characteristics affecting consumer behaviour (4)

Answer 9

cultural (culture, social class), social (family, roles and status), personal (age and life cycle, occupation), psychological (motivation, beliefs and attitudes)

Question 10

decision stages in the buyer decision (5)

Answer 10

need recognition - buyer recognises a need
information search - the buyer seeks out information
evaluation of alternatives - processes information in order to arrive at choices
purchase decision - forms a purchase intention and makes purchase
post purchase behaviour - satisfaction, loyalty intentions

Question 11

stages in the adoption process (5)

Answer 11

awareness, interest, evaluation, trial, adoption

Question 12

diffusion of innovation (5)

Answer 12

innovators, early adapters, early majority, late majority, lagging adopters

Question 13

new product adoption process: factors influencing rate of adoption (5)

Answer 13

relative advantage, compatibility, complexity, divisibility, communicability

Question 14

types of segmentation (4)

Answer 14

geographic (region, city), demographic (age, gender, income), psychographic (socioeconomic status, values, attitudes and lifestyle), behavioural (purchase occasion, loyalty status, usage rate)

Question 15

requirements for effective segmentation (5)

Answer 15

measurable, accessible, substantial, differentiable, actionable

Question 16

target market

Answer 16

A set of buyers sharing common needs or characteristics that the company decides to serve.

Question 17

undifferentiated marketing

Answer 17

A market-coverage strategy where the company decides to ignore market segment differences and go after the whole market with one offer.

Question 18

differentiated marketing

Answer 18

A market-coverage strategy in which a firm decides to target several segments and designs separate offers for each segment.

Question 19

concentrated marketing

Answer 19

A market-coverage strategy where a company targets a large share of one or a few segments or niches.

Question 20

micromarketing

Answer 20

The practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments – includes local marketing and individual marketing.

Question 21

local vs individual marketing

Answer 21

local customer segments vs individual customers

Question 22

differentiation and positioning

Answer 22

consumers position products in their minds to sort products

Question 23

why positioning is essential

Answer 23

Each company must differentiate its offer by building a

unique bundle of benefits to appeals to a substantial group within a segment

Question 24

positioning

Answer 24

A product position is the feelings that consumers have for the product compared with competing products.

Question 25

perceptual positioning maps

Answer 25

show consumer perceptions of their brands | versus competing products on important buying dimensions.

Question 26

selecting an overall positioning strategy (5)

Answer 26

- More for more - More for the same - The same for less - Less for much less - More for less

Question 27

full positioning of a brand

Answer 27

The full positioning of a brand is called the brand’s value | proposition – the full mix of benefits upon which the brand is differentiated and positioned.

Question 28

levels of products and services (3)

Answer 28

core customer value, actual product (brand name, quality level, features, design), augmented product (after-sale service, delivery and credit)

Question 29

new product types (4)

Answer 29

original product, product improvement, product modification, new brands

Question 30

common reasons for new product failure (3)

Answer 30

- Overestimates of market size • Poor product design • Incorrect positioning

Question 31

product development process - idea generation (internal and external)

Answer 31

``` Internal idea sources – R & D – Employees • External idea sources – Distributors/ Suppliers – Competitors – Customers ```

Question 32

product development process - idea screening

Answer 32

to spot good ideas and drop poor ones as soon as possible in order to reduce investment in product development with little potential.

Question 33

product development process - concept development and test marketing (3)

Answer 33

product idea (an idea for a possible product), product concept (a detailed version of the idea), product image (the way consumers perceive the product)

Question 34

product development process - strategy development

Answer 34

The process of designing an initial marketing strategy for a new product based on the product concept

Question 35

product development process - business analytics

Answer 35

Assessment of the product’s financial attractiveness

Question 36

product development process - product development

Answer 36

Developing the product concept into a physical product

Question 37

product development process - test marketing

Answer 37

the product and marketing program are introduced into more realistic market settings - May involve consumers testing prototypes

Question 38

product development process - commercialisation

Answer 38

Full scale introduction of a production into the marketplace | - may consider timing and location

Question 39

product lifecycle and strategies (5)

Answer 39

product development, product introduction, growth, maturity, decline

Question 40

product development process (8)

Answer 40

``` idea generation idea screening concept development strategy development business analytics product development test marketing commercialisation ```