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Marketing101 > Michaelmas and Lent terms > Flashcards

Michaelmas and Lent terms Flashcards

1
Q

What are the three stages to all service firms?

A

Service operations, service delivery, service marketing

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2
Q

What aspects make up the total product?

A

Substance,service, symbol, price

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3
Q

What are the 5 myths about markets?

A
  • They are stabile
  • Companies are detached from markets
  • Markets are a place/ exchange
  • only corporate actors define markets
  • Companies must identify a need and cater to it
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4
Q

What are the 2 approaches to new market creation?

A
  • Fulfil an unmet need with a great new product

- Create a need

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5
Q

What are the 4 guiding factors to market creation?

A
  • Eliminate factors that are taken for granted within the market
  • Reduce certain factors below industry standard, eg price
  • Increase certain factors above industry standard, eg assortment
  • Which factors should be created that the industry has never seen before?
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6
Q

What is the difference between the economic and marketing perspectives of markets?

A
  • Economic - perfect competition

- Marketing - Fluid and changing, about relational interactions with consumers

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7
Q

Identify some elements of ‘perfect competition’

A
  • No barriers to market entry
  • No government intervention
  • Consumers have perfect knowledge
  • All firms and consumers are price takers
  • Products are homogenous
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8
Q

What is an industry association?

A

A group of firms that do a similar thing who form an association for their collective best interests.

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9
Q

Discuss need creation as key before selling the solution

A
  • If consumers don’t feel they have a need for a product they will not buy it. For example, If Steve Jobs had not confined consumers that they needed a touch screen phone, most consumers would most likely have not reacted well to this completely new and never before seen product
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10
Q

Name the 3 types of legitimacy named in ‘Megamarketing’

A

Regulatory, cultural-cognitive, normative

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11
Q

What actions can managers take to aid the process of legitimation and diffusion?

A

1) Use materials available, eg. social networks to convince, finances to advertise
2) Wording eg. Amplifying one frame over another to emphasise positives over negatives. For example the gambling industry - business benefits over crime effects

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12
Q

What generally happens with regards to different frames throughout the process of legitimation?

A

Negative frames become less emphasised and positive ones become the main focus.

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13
Q

What are the 4 potential approaches to setting price?

A

Cost based, competition based, demand based, value based

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14
Q

What are key considerations in cost based pricing?

A
  • Covering costs to ensure no loss is made in the first place
  • Breakeven analysis
  • Perhaps more the case for start ups just trying to stay in business.
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15
Q

Key considerations in demand based pricing?

A
  • Amount of competition
  • external factors such as economic and political situation
  • brand strength and consumer loyalty
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16
Q

Key considerations in value-based pricing?

A
  • Who gets the value within a given price (ie sell at a price that gives as much benefit to firm as possible or reduce price to give benefit to consumer) VALUE ALLOCATION
  • Perceived benefits of both ‘economic’ and ‘marketing man’ (rational and emotional)
  • Penetration pricing - consumer based
  • Price skimming - company based
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17
Q

Name some external influences on price

A
  • Competition
  • Laws
  • Economic situ.
  • Price and demand elasticity
  • Market and consumers
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18
Q

How do you calculate price elasticity of demand?

A

Change in % demanded / % Change in price

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19
Q

What is unitary demand?

A

% change in price leads to identical change in demand

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20
Q

What is parallel trading?

A

Creating and selling a product under certain rules, such as a trademark, and then selling it in another country without such rules. Generally creates higher profits.

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21
Q

Name some key considerations in price

A
  • Return on investment
  • Elasticity of demand
  • Price wars
  • Market conditions
  • Cash flow (short term, survival)
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22
Q

How do you calculate breakeven?

A

Fixed costs / cont. per unit (Selling price - variable cost per unit)

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23
Q

What is cost - plus pricing?

A

Adding a fixed % to production costs - ensures enough revenue/profit is made

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24
Q

What is prestige pricing?

A

High price to give image of high quality - can backfire if consumer does not perceive equally high quality

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25
Q

What are the steps in setting price?

A

1) Identify objectives of price
2) Assess demand
3) Determine pricing strategies, eg. skimming
4) Set price range based on cost, demand, competition
5) Tactics and adjustments

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26
Q

What are 3 key considerations for with regards to competition when price setting (internet based?)

A
  • Reduced barriers to entry
  • Reduced transaction costs
  • Increased consumer knowledge
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27
Q

Are entry barriers really reduced?

A
  • Yes: Easier to set up online, no need for physical stores, no need for such amounts of cash
  • No: Online market highly competitive due to inherent nature of easier entry, Manu consumers want physical and online stores, price collusion
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28
Q

Are transaction costs a benefit to selling thanks to the internet?

A
  • Yes: Delivery fees small compared to effort of going to stores, relatively inexpensive for firm to sell online vs through physical store
  • No: Switching costs for consumers (online registration to avoid switching etc)
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29
Q

Why do we (not) have more perfect knowledge today thanks to the internet?

A
  • Do: Comparison sites, reviews available to see, easier access to products
  • Don’t: Registration needed for some sites, different comparison sites compare different products, can’t compare experience attributes
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30
Q

Why might price be a difficult consideration for service firms, despite easier online price comparison?

A
  • A service business consists mostly of experiential attributes, which, online search attributes, are very hard to evaluate.
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31
Q

Why do firms segment markets?

A
  • To be able to better target
  • Don’t have ability to target whole market
  • Decide how to position vs competitors
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32
Q

What are the different types of segmentation?

A
  • Demographic
  • Behavioural
  • Psychographic
  • Geographic
  • geodemographic
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33
Q

What factors must effective segmentation contain?

A
  • Accessibillity to segment
  • Actionable segment, ie. they will buy from you
  • Substantial, ie. big enough
  • Differentiable, ie different from other segments
  • Mesurable, ie be able to judge how big the segment is
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34
Q

Why must a segment of consumers themselves be smart in order for it to be a good segment for a firm to target?

A
  • If consumers don’t know what they want, where they want to buy, when they want to buy etc and just have generally random, inconsistent buying habits, it is generally not a good segment for a firm to target.
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35
Q

Target a segment with low sales but high revenue?

A
  • Yes because only have to sell few goods meaning less need for production
  • No because very risky if loss of sales occurs - only seem to a few in the first place
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36
Q

In what ways is the process of STP different for B2B firms?

A
  • The focus is much more on the relationship than the product and price. Shouldn’t try and haggle to much on price but instead ensure needs of both firms are met alongside building a strong relationship
  • There tends to be 3 generic ways of segmenting for B2B firms, rather than the mentioned consumer market ones:
    . Mass market - high number of consumers, low profit margins
    . Defined segments - More relational, grouped together by more specific needs
    . Very small/1 one consumer segments - all about the relationship, small number of customers, high margins low volume, provide as much need-fulfilling benefit to consumer as possible (potentially much more important than price).
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37
Q

What are some difficulties of segmentation?

A
  • Consumers can belong to more than one segment at once
  • Competition may segment differently making it hard to compete for specific segment sales
  • Consumers may continuously move between segments for several reasons
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38
Q

What is accreditation?

A

Third party firms who regulate the actions of businesses to ensure they are acting correctly

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39
Q

What is content marketing and why is it useful?

A
  • It is the distribution of contents to consumers to inform them about a brand. Can be very useful as it can inform consumers of social issues and try and make them become more conscious consumers.

Equally however, could argue it just promotes the good side of firms

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40
Q

What are civil societies?

A

Organisations that regulate firms, such as charities, which can have a positive or damning effect, despite the fact it is not direct government intervention.

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41
Q

What is neo-liberalism?

A

The belief that the government should leave markets to work and not interfere

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42
Q

What is CSR?

A

A firm’s responsibility to all of its stakeholders

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43
Q

Why is CnSR important?

A

It is important to have conscious, ethical consumers. If they are not, they will not value CSR and therefore will not be drawn to ethical brands

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44
Q

Why might firms use CSR?

A
  • To look good
  • To differentiate and create competitive advantage
  • To avoid government intervention
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45
Q

What is consumer behaviour?

A

The way consumers buy and choose to buy, what they buy and how they dispose of the end good

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46
Q

How has consumer behaviour and the study of it changed?

A

Consumer behaviour is today very focused on (in the 1st world) what we want instead of need. We are consumption defined instead of being defined by how we behave.

We consume everything within life, even aspects of our own culture - clothes, food, media etc

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47
Q

Why is studying consumer behaviour key?

A
  • To understand why consumers consume how they do and why
  • To make laws and regulations to protect consumers from actions against their consumption habits but also to stop negatives deriving from consumer’s behaviour
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48
Q

What is different about postmodern consumers?

A

A theme is not followed with regards to behaviour and purchasing - behaviour is more fragmented to fit needs and desires of consumer (perhaps due to so much choice in the consumer society in which we live)

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49
Q

In what 5 ways are consumers studied?

A
  • History and geography
  • Anthropology
  • Psychology
  • Economics
  • Sociology
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50
Q

What is consumer socialisation?

A
  • When people (particularly young) acquire new skills relevant to their function in the marketplace
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51
Q

What is cultural socialisation?

A
  • The adoption of behaviour of the surrounding culture
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52
Q

What is the difference between primary and secondary socialisation?

A
  • Primary is done from birth and is when you begin to form your identity, whereas secondary takes place outside of the initial process and is done within the framework of what was originally learnt
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53
Q

What is reverse socialisation?

A

When children teach parents/adults new things, such as how to use new tech. This causes changes in behaviour

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54
Q

What is re-socialisation? What is the potential problem with the idea?

A

Learning new attitudes and norms required for a role.

However, if we are constantly learning and therefore socialising aren’t we always learning new things and therefore re-socialising?

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55
Q

What are Roedder John’s stages of socialisation?

A
  • Perceptual stages - 3-7 years old - features and aesthetics, one viewpoint
  • Analytical stage - 7-11 years old - understand the market, thoughtful, consider other people in decision
  • Reflective stage - 11-16 years old - strategic, understand other people and their influence, fully developed and socialised (ARE WE EVER REALLY?)
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56
Q

What is consumer acculturation?

A

Becoming used to and adapting to a new culture

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57
Q

What is the process of acculturation in Penaloza?

A

Movement - translation - adaptation

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58
Q

What are the possible outcomes of acculturation?

A

Assimilation
Maintenance
Resistance
Segregation

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59
Q

Name an example of each type of outcome of acculturation in Penaloza

A

Becoming fashion conscious
Eating Mexican food still
Rejection of packaged foods
Not participating in American Credit system

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60
Q

What is the link between acculturation and re-socialisation?

A

Acculturation involves learning new things as part of a new role in society in a new culture.

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61
Q

Who may adapt to new culture more quickly?

A

Children may generally adapt more quickly as they go to school with and grow up with the new culture. The adults have been brought up all of their lives in a different culture and must then change and adapt

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62
Q

What is B2B marketing?

A

The facilitation of exchange between producer and other organisational consumers

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63
Q

What are some key differences in B2B marketing compared to B2C?

A
  • Few customers, therefore need strong relationships
  • Decisions take a lot of time and effort as often very large
  • Total product must be a solution to a need
  • Must deal with lots of different people just to make one sale
  • Seller and buyer are both very active
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64
Q

Why is B2B marketing potentially a lot more difficult than B2C?

A

It is key to understand all people involved in a transaction, which is often a very high number, particularly with a big sale to a big firm. Equally, you must convince all teams and departments within the buying organisation that the solution you are selling will bring some benefit to them all. This requires an understanding of a vast amount of needs.

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65
Q

Why is recovery key in B2B?

A

Due to the smaller number of customers and the magnitude of each sale, it is key that mistakes are made up for and relationships can be maintained

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66
Q

What are the different types of buying possibility in B2B?

A
  • Straight rebuy
  • Modified rebuy
  • New task
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67
Q

Why is a new task perhaps a much bigger job for both seller and buyer than a rebuy?

A

The whole relationship process (if new firm) will likely have to be built from the beginning. Equally, an understanding of each other’s needs must be developed which can take a long time

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68
Q

What are the aspects of the total product in B2B?

A
  • Substance (must fulfil neded)
  • Service (must be personal and supportive)
  • Integration of product into buyer’s system (to get full use out of product)
  • During and after-sale support (maintain the relationship. Particularly key with huge sales).
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69
Q

What is the value stack?

A

The idea of convincing all areas of the buying firm that they are going to benefit from what is being sold

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70
Q

Name an example of B2B solution selling

A

Firestone selling tyres to Ford - satisfies the need of being able to put tyres and wheels in order to sell the car as a whole.

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71
Q

Why is the cost-balance scale difficult in B2B marketing?

A

The cost involves far more than in a consumer market. In a consumer market, the cost relates largely to money, whereas the cost in B2B includes a lot of time and effort.

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72
Q

What are the different channels of distribution?

A

Direct and indirect

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73
Q

What are the pros and cons of direct distribution?

A

+More contact with consumers, less costs, more control over products
-Less (perhaps) specialist knowledge, more work

74
Q

what are the pros and cons of indirect distribution?

A

+ Intermediary knowledge, closer to consumer

- Pay for shelf space, less control over products

75
Q

What are the different levels of distribution?

A
  • Intensive, selective, exclusive
76
Q

What are the problem with selective/exclusive distribution?

A
  • products may get sold at wrong price/in wrong quantities and affect image
  • can’t dictate selling price
  • Potentially less profit
77
Q

Why use selective/exclusive distribution?

A
  • increase value of product
  • increase rarity
  • maintain certain image
  • keep control over product
78
Q

What effect does the government have on distribution channels?

A
  • has a say over prices to ensure intermediaries don’t take advantage
  • Stops firms setting minimum resale prices
79
Q

Why are brands no longer as powerful as they used to be?

A

Intermediaries have so much buying power and knowledge that brands are often only successful because of the intermediaries they are sold through

80
Q

What is reverse channel selection and why is it a bigger thing today?

A
  • This is when retailers choose brands rather than the other way round. Retailers have so much power that they often do the choosing now
81
Q

Why can intermediaries be good and bad for brand profits?

A
  • They squeeze low prices out of brands but equally can sell so much that they can massively increase brand profits. A balance that must be found
82
Q

What are key things in distribution to consumers?

A
  • Convenience
  • Timeliness
  • Selection
  • Assortment/bundling
  • Experience
  • Secondary items
83
Q

What aspects of distribution are key to brand owners?

A
  • Maintaining brand name
  • Profits
  • Location of selling
84
Q

What aspects of distribution are key to intermediaries?

A
  • Profit
  • Right brands for own image
  • Timeliness of deliveries
85
Q

What is Marcoms?

A

A focus on engaging consumers and promoting conversations

86
Q

Why is MArcoms used?

A

Differentiate
Reinforce messages
Inform
Persuade

87
Q

What are the key elements of the Marcoms mix?

A
  • Tools
  • Media
  • Content
88
Q

What are the key initial Marcoms decisions?

A
  • Target audience
  • Positioning desired
  • Objectives
  • Budget
89
Q

What are the implementation decisions?

A
  • Mix of messages
  • What message, who will deliver it and how it will be delivered
  • Establish how to gain momentum and keep it up
90
Q

What is IMC?

A

Deciding how best to target audience, contacting them at all possible touch points and using one consistent message voice to give a clear message.

Intent - affect behaviour

91
Q

What are the different comms tools?

A

Advertising, promotions, PR, personal selling, word-of-mouth

92
Q

How can Marcoms success be measured?

A

brand awareness
understanding of message
brand attitude
purchase intentions

93
Q

What is a key outcome for Marcoms?

A

Enhanced brand equity - higher market share, brand loyalty, able to charge premium price

94
Q

What are the different Marcoms attitude components?

A
  • Cognitive
  • Affective - celebrity endorsements, colour, style
  • Conative - direct marketing, personal selling
95
Q

What is leveraging?

A

Building associations with other brands which can enhance rep of own brand, eg Jack Daniels and TGI Friday’s chicken

96
Q

What different aspects can a Marcoms message consist of?

A
  • Visual
  • Verbal
  • One sided - supportive
  • two sided - Prove something false and enhance positive side
97
Q

What is the main type of rational appeal?

A

Compatative advertising - comparing to other brands/all brands to show off strengths/exploit their weaknesses

98
Q

What are 3 key emotional appeals of marcoms

A
  • Sex
  • Humour
  • Guilt and fear
99
Q

What is the comms hierarchy of effects?

A

The idea that consumers move through stages as they are confronted with communications
unaware - aware - expectations - trial

100
Q

What are some problems with the hierarchy of effects

A
  • Assumes consumers follow stages

- Positive attitude does not necessarily mean purchasing

101
Q

What is the Elaboration Likelihood Model?

A

Describes changes in attitude based on different levels of involvement. Different levels of involvement require different stimuli to change attitude

102
Q

What is the problem with traditional communications theories?

A

The idea of emitting one messages via mess media to everyone.
Doesn’t take influence of people into account, eg word of mouth

103
Q

What is the influences model of communications?

A

The idea that a message is given out and opinion leaders and formers create opinions about a good/service and then influence other potential customers

104
Q

How is the interactive model of communications different?

A
  • Takes different forms of media into account, eg social media
  • Accounts for forming of relationships as a part of communications
  • Acknowledges that not all customers can be targeted in the same way
  • consumers are active and not passive
105
Q

What are the two Is of the internet in modern communications?

A
  • Individualisation

- Interactivity

106
Q

What are the key marketing uses of communications named in Uses and Gratifications?

A
  • Information
  • Choice, competition
  • Quality assurance
  • Consumption stimulation
  • Added Value
107
Q

What are the key non-marketing uses in Uses and Gratifications?

A
  • Structuring time
  • Entertainment
  • Diversion of attention (make things less boring)
  • Escapism
  • Educate
108
Q

What are some weaknesses of Uses and Gratifications?

A
  • One group of people in study

- Lists of uses without too much explanation as to why it may be the case

109
Q

What is marketing research?

A

Function that links the consumer, public and marketer through information

110
Q

What is a marketing info. system?

A

The system used to collect and analyse data in order to advise and make decisions

111
Q

What are the different types of data that can be collected as a part of marketing research?

A

Continous data [both internally and externally]
Ad-hoc data “
Environmental scanning

112
Q

What are the positives and negatives of qualitative research?

A

+ get deeper opinions
+ Understand reasons why

  • Takes more time
  • More expensive
  • Harder to assess as doesn’t fit in neat categories
113
Q

Positives and negatives of quantitive research?

A

+ Cheap
+ Easily analysed
+ Gives good indications of trends

  • Basic level
  • May draw false conclusions based on trends
114
Q

What are two key reasons for market research?

A
  • Problem identification ( mkt potential, mkt share etc)

- Problem solving (how to segment, position etc)

115
Q

Why must mkt research consider consumers who are bicultural/bilingual?

A
  • Depending upon the situation and the culture/language that the marketing is seen in by the consumer, they will react to it differently based on the language and culture they are associating with at the time
116
Q

Why is market research useful?

A
  • Describe consumer groups
  • Understand what shapes consumers
  • Test mkt mixes
  • Monitor and analyse past successes and failures
117
Q

What are some possible ethical issues with marketing research?

A
  • Privacy intrusions
  • Misuse of research findings
  • Using people’s personal data just to try and sell to them
  • Purposely formulating research in a way that will derive positive results
118
Q

What is the market research process?

A

1) Problem identification
2) Research approach developed
3) Research design developed
4) Field work or data collection
5) Data analysis
6) Research report prep. and presentation

However, problems may in fact be identified through research and not necessarily known before

119
Q

What is market intelligence?

A

Data gathered from observations for other purposes that the one at hand

120
Q

Benefits of secondary research?

A
  • Quicker
  • Cheaper
  • Informs where to do primary research
  • Easier
121
Q

Negatives of secondary research?

A
  • Objectives of researcher may have been different
  • May be inaccurate
  • Nature of results may be different
  • May not understand dater may interpret it badly
122
Q

What are some examples of external secondary research?

A
  • Competition analysis
  • Industry data
  • Legan and environmental environment data
123
Q

What was the lecture case about women (MKT research) and why is it useful?

A
  • Showed that the clothing market for older women is growing, they see themselves as fashion conscious and often perceive themselves to be younger than they actually are.

Shows how much data is out there and how useful al of the data can be in informing companies on decision making

124
Q

Define Innovation

A

The commercial exploitation of new ideas, products and services

125
Q

What are the different types of innovation?

A 
Product
Process
Management
Production
Service
126
Q

What is the difference between radical and incremental innovation?

A
  • Radical - New products and processes

- Incremental - Product and process changes and adaptations

127
Q

What is market innovation?

A

The putting together of different types of innovation to change the market, eg a new service with a new management system to make it more efficient

128
Q

What are the different innovation schools of thought?

A
  • Resource based - Firms resources determine ability to innovate
  • Market based - Instead based on market and external conditions
  • Serendipity - Good luck (very rare)
129
Q

What is the difference between technology push and market pull?

A
  • Market pull focuses on the consumers and the needs within the market
  • Technology push is about creating the new tech and innovations and then putting them to market
130
Q

In what ways does the government affect the external environment which can in turn affect innovation?

A
  • Open policy towards innovation
  • Competition constraints
  • Regulation
  • Political stability
  • Infrastructure
131
Q

What is the key to innovation?

A

Allowing individuals to be creative, creating a supportive professional environment and allowing spaces for different groups of people to come together to innovate

132
Q

What is the 3 critical dimensions of change-of-technology model?

A
  • Product capability, Tech capability, patterns of consumption (how much change in behaviour and thinking is required)

Critical factors in assessing potential success of innovation

133
Q

What are key factors affecting innovation diffusion?

A
  • complexity
  • Communicated?
  • compatibility
  • Differentiated
134
Q

What is a new product?

A

A new product can be brand new or simply changing a component of a product, eg price or positioning

135
Q

Why is NPD today viewed largely as a constant, joined process?

A

Firms must constantly innovate to stay ahead. However it is realised that departments in firms must work together to create successful innovation as well as working with customers - it is not an isolated event in each department

136
Q

Why may using end gates during innovation be useful?

A

As it is such a big process, using end gates can avoid getting all the way to the end of innovation and realising that it may not be successful

137
Q

Why is knowledge sharing during innovation sometimes difficult?

A

Certain knowledge is what is termed as tacit, that is it is personally and very hard to express and share. Individuals may have understandings and expertise but may struggle to share or explain it with others in the firm

138
Q

What is the marketing concept?

A

Focussing on needs and wants of consumers and the factors that shape these

139
Q

How does the marketing concept lead to market orientation?

A

By understanding the market and consumers, the firm can begin to create the necessary behaviours to enhance business performance and meet these needs/wants

140
Q

What are the 3 aspects of market orientation that come from the marketing concept?

A

1) Intelligence generation
2) Intelligence dissemination
3) Responsiveness

141
Q

What are the 3 consumers roles in NPD in Nambisan?

A
  • Resource
  • Co-creator
  • User
142
Q

What are the 4 key design themes relating to the consumers roles in NPD in Nambisan?

A
  • Consumer interactions and communications
  • Customer knowledge creation (in order to be beneficial firm)
  • Customer motivations (product, community, medium)
  • VCC-NPD Team integration
143
Q

What are some key issues in regards to using customers in NPD?

A
  • Affects on lead time, dev. time
  • Based on opinion of small group and not wider audience
  • May forewarn competitors if too transparent
  • Boundaries of effective communication and amount of involvement required
144
Q

Why may the market-driven perspective of innovation not always be the most successful?

A
  • Leads to expected products and not radical innovation

- Customers have latent needs and aren’t always sure what they want

145
Q

What is the purpose of product testing?

A
  • Test the market
  • Test purchase intentions
  • Test the improvements of the new product
146
Q

How do retailers add value?

A
  • Break bulk (buy big quantities and sell in smaller ones to consumers)
  • Create assortments to attract consumers in
  • Micro distribution reaching places manufacturers couldn’t
  • Different flows (product, promotion etc)
147
Q

Why is promotional flow a key concern the using intermediaries?

A
  • Must ensure the promotional messages are consistent with what the manufacturer wants as to not damage the products reputation/positioning
148
Q

What are some possible causes of channel conflict?

A
  • Desires for profit margins
  • Different promotional activity
  • Different goals of firms
149
Q

What are the different brand types that are dealt with by retailers?

A
  • Manufacturer brands
  • Fighter brands
  • Own brands
150
Q

What are some techniques for offering as much choice as possible to the consumer?

A
  • Line stretching

- Line filling

151
Q

What is the wheel of retailing?

A
  • Explains how retailers change and become more upscale, ie starting by selling low priced products and then becoming more sophisticated, having better facilities etc

NOT ALL MAY DO THIS if low price technique is working

152
Q

What is headroom and what is the idea behind it?

A

Headroom is the market share you don’t have - minus the market share you can’t get.

The idea is that you should focus on the customers who aren’t loyal to you as it is these who will provide the most future revenue.

153
Q

What are the 5 key retailing issues?

A

1) Location - close to consumers and suppliers, online
2) Product assortment - scrambled merchandising, own labels
3) Retail positioning - Deals with firms, target under-targeted segments, dedifferentiation, wheel of retail theory
4) Store image and price - reputation, store layout, cross-channel marketing
5) Atmospherics - brand authenticity, internal and external of store, experiment with atmosphere

154
Q

What are the main brand assets?

A
  • Loyalty
  • Brand recognition
  • Reputation

HOWEVER can easily become brand liabilities

155
Q

Define the marketing channel

A

The organising of external contacts by a firm to achieve its distribution objectives

156
Q

Define channel management

A

Selected set of organisations that ease the transfer of ownership of goods

157
Q

Define retailing

A

All transactions in which buyer intends to consume product

158
Q

Where did RM come from?

A

B2B and services marketing (Berry claimed too much focus on just attracting new consumers)

159
Q

What is the key goal of RM?

A

Enhancing consumer relations

160
Q

What is a common trend with RM and the number of loyal customers?

A

A firm will often have lots of customers but only a small number may be loyal and responsive to RM

161
Q

What is the contemporary marketing perspective?

A

That firms have a range of different consumers with different levels of importance

162
Q

What is the key criteria for relationship marketing (compared to transactional)?

A
  • Long term relationship
  • Interactive marketing
  • consumer base stability (target most relevant and gain strong base of returning consumers)
  • High importance
163
Q

What are the key benefits of CRM?

A
  • Closer relationship
  • Cheaper to keep existing consumers
  • Perceived added value from relationship
  • Higher loyalty
164
Q

What are the 3 key mediators of CRM?

A
  • Loyalty, commitment and bonds
165
Q

What are the different types of CRM commitment?

A
  • Behavioural, attitudinal, affective, calculative
166
Q

What are the different types of bonds in CRM?

A
  • Social - more about people
  • Structural - more about strategy
  • Personal - resources that are emotional and affective in nature
  • Task - factors that developed during a relationship and affect explicit commitment to business benefits
167
Q

What different types of cultural influences affect the bonding process?

A
  • Individualistic - more likely to associate with structural bonding
  • Collectivistic - more likely to associate with social bonding
168
Q

What is changing in regards to consumers and the point of purchase?

A

Point of purchase is no longer most important - the journey itself is becoming key and this journey and CRM and linked

169
Q

What is the difference today in terms of the journey for a consumer and decision making?

A

The decision making process is shortened as companies no longer wait for consumers to start on a journey but instead use technology to initiate this

170
Q

What are the 4 key capabilities in getting proactive?

A
  • Automation - quicken up process for consumers
  • Personalisation
  • context - based interaction - follow consumers points on journey and actively move them on to the next phase
  • Journey innovation - experimenting with consumer needs and keeping consumers on journey to increase loyalty
171
Q

What are the different categories of online consumer groups?

A
  • fAvourable brand community
  • Counter brand community - against brand
  • Alter brand community - created by consumers to help each other
172
Q

What is the value proposition at Starbucks?

A
  • Quality coffee
  • Intimate service
  • Atmosphere
173
Q

What are the problems with Starbucks in the case study?

A
  • Slow service
  • Less personal service
  • Coffee not considered by all as being best quality
174
Q

How could you increase service speed/quality?

A
  • Better staff training
  • More staff
  • Smaller menu
  • Different queues for those wanting coffee and those wanting fancier drinks
175
Q

What is the company snapshot idea that Starbucks introduced?

A

Mystery shoppers visited the store and rated it based on - service, cleanliness, product quality and speed of service

176
Q

What was the Starbucks growth strategy?

A
  • Retail expansion

- Product innovation (including stored value card)

177
Q

In what was was the consumer profile changing at Starbucks?

A
  • Consumers were no longer all the more wealthy as previously assumed and consumers tastes were also changing and wanted more customised drinks
178
Q

What do OMalley and Tynan say about when a relationship may exist?

A
  • When org. provides important products
  • sense of identification
  • High contact
  • customised product
179
Q

What do OMalley and Tynan say are the reasons for a relationship from marketer’s perspective?

A
  • Reduced MKTG costs
  • create barriers to exit
  • target high - profit consumers
180
Q

What do OMalley and Tynan critics about loyalty schemes?

A
  • Only create short term loyalty

- More of a sales technique than RM

181
Q

What do OMalley and Tynan say about the key differences between in BCRs and BBRs?

A
  • BCR - less likely to form close ties as consumer is naturally more passive than company. Also, so many consumers that creating a tight bond with them all is not necessarily going to be beneficial (opposite for BBRs)
182
Q

What efforts can be made to enhance the consumer base when creating relationships?

A
  • Turn low profit consumers into high profits ones
  • Treat most important consumers speically
  • Educate employees so they are knowledgable and can help consumers

Marketing101 (1 decks)

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