Marketing strategy and the consumer Flashcards
What is marketing?
It is engaging customers and managing
profitable customer relationships
What are the goals of marketing?
- Identify and attract new customers by offering superior value
- Maintain and grow existing customers by delivering satisfaction and fostering loyalty
- Create value for and capture value from customers
What is the marketing concept?
It is the philosophy that a company should deliver on desired customer satisfaction in order to create loyalty, which will in turn create profit
What is the customer lifetime value (CIV)?
It is the value of the entire stream of purchases a customer makes over a lifetime of patronage
Why does a company want to keep customers satisfied and loyal?
- Can lose that customer’s lifetime value
- May cause other customers to defect
What is a ‘need’?
Something a customer is deprived of/lacks
What is a ‘want’?
Something a customer is looking for
What is a ‘demand’?
Wants which are backed up by financial power
What is marketing myopia?
Paying too much attention to market offering that customers already buy within an existing product category rather than focusing on the needs/wants
What is the value proposition?
What value does this company propose to provide its customers?
The reason to purchase your product
Who is the target customer?
The people the company wants to sell their products to
Why does a company need a value proposition?
it allows to compete effectively by focusing on the USP and the core competencies
What is positioning?
How does your product compare to the competition?
What is differentiation?
Does the product provide greater value and can the customers tell?
What is the perception map?
A simplified way to visually represent the relationships between the company and the competitors from the customer’s perspective
What is the positioning statement?
Value proposition and target customer in linked with the positioning statement
What are the 4Ps?
Product
Price
Promotion
Place
What is product?
Value creation - benefits
What is price?
Value capture - revenue
What is place?
Value delivery/access - distribution
What is promotion?
Value communication - messaging and media
4As in the customer’s perception:
Acceptability
Affordability
Accessibility
Awareness
What is the ansoff matrix?
Growth strategy
What is market penetration?
Focus on sales to current target customers without changing the original products
What is market development?
Identify and develop new markets for current products
What is product development?
Offer new products for a current customer
What is diversification?
Start or acquire new products/businesses
What are the different target market segments?
Total market, available market, target market, penetrated market
What is market segmentation?
Dividing a market into distinct group of buyers who have different needs, characteristics, behaviours, etc.
It is a group of consumers who respond in a similar way to given marketing efforts
What is market targeting?
Evaluating each market segment’s attractiveness and selecting one or more target segments to enter
How do you identify the target market?
Market segmentation and market targeting
What are the different consumer segmentations?
Geographic segmentation
Demographic segmentation
Psychographic segmentation
Behavioural segmentation
What is geographic segmentation?
Dividing the market into different geographical units
What is demographic segmentation?
Dividing a market into segments based on easily observable, individual-level variables
Age, gender, religion, etc.
What is psychographic segmentation?
Dividing a market based on social class, lifestyle, and personality characteristics
What is behavioural segmentation?
Using consumer behaviours to distinguish segments
Occasion, usage, loyalty, etc.
What are the requirements for identifying profitable target segments?
Measurable, accessible, substantial, differentiable, actionable
What are the targeting strategies?
Undifferentiated, differentiated, concentrated, micromarketing
What is undifferentiated targeting strategy?
Mass marketing– strategically ignore market segment differences and go after the whole market with a single offer
What is differentiated targeting strategy?
Target several market segments and design a separate marketing mix
What is concentrated targeting strategy?
Target a large share of smaller segments
What is micro-marketing targeting strategy?
Tailoring products and marketing programs to suit the tastes of specific individuals and locations
- local marketing - tailoring to specific geographic segments
- individual marketing - tailoring to specific customers
What is marketing intelligence?
Systematic monitoring and evaluation of consumers, competitors, and other internal and external factors that can impact marketing
What is market research?
Systematic design, collection, analysis, and reporting of data relevant to a specific marketing problem facing an organization
How do you design a market research plan?
- Research question - what problem does the company face? What data does the company need?
- Sampling plan - who will be the subject(s) of the research? How will they be selected?
- Research method - what kind of research are you using? How will you contact respondents?
- Implementation - who will collect data and how? How much will it cost? How are you ensuring data quality and accuracy? Are you conducting ethical research?
What are the types of samples?
Probability - relies on randomness
Non-probability - prioritizes convenience and affordability
What are the advantages of secondary data?
Low cost/quick to obtain
Some data could not be collected otherwise
What are the disadvantges of secondary data?
Irrelevant, inaccurate, biased
Out-of-date
What are the different research approaches?
Observational research
Survey research
Experimental research
Marketing analytics
What is observational research?
Collecting data by observing relevant people, actions, and situations
* Ethnographic research
– Sending trained observers to watch and interact with consumers in their natural environments
* Tracking research
– Logging consumer actions in order to review their behaviors and preferences
– Online and offline methods
What are methods of online tracking research?
Online listening, web tracking, social targeting
What are methods of offline tracking research?
Scanner data, mechanical tracking, volunteers
What is marketing analytics?
Collecting and finding valuable or meaningful patterns in big data.
Big data refers to the huge and complex data sets generated
What are research ethics?
Failure to address privacy issues result in angry, less cooperative consumers and increased government intervention
What is a customer?
An actual/potential patron of your business
What is a buyer?
Someone who has decided to give you money in exchange for your product or service
What is a shopper?
A customer who is currently comparing your products against your competition’s
What is a consumer?
An individual person who makes purchase decisions based on their needs, wants and demands
What is the customer journey?
Pre-purchase, point-of-purchase, post-purchase
What is the B2C customer journey?
- Need recognition
- Information search
- Evaluate alternatives
- Purchase decision
- Post-purchase decision
What is the B2C conversion funnel?
Product awareness
Interest
Consideration
Purchase
Relationship management
What is the online conversion funnel?
Impressions
Clicks
Click-through
Conversion
CRM
What is the B2B customer journey?
- Need recognition
- Formally describe the need
- Identify product specifications
- Search for suppliers
- Solicity proposals/quotes
- Select a supplier
- Specify an order routine
- Review supplier relationship
What is a single/new task?
Buyer purchases a product for the first time/once
What is the straight rebuy?
Buyer routinely reorders something without any modifications
What is the modified rebuy?
Buyer wants to modify product specifications, prices, terms
What is the systems/solutions selling?
Buyer purchases a packaged solutions to a problem from a single seller
What is the vendor-manage inventory?
Buyer turns over ordering and inventory responsibilities to their supplier
