Midterm Flashcards
Speciality product
Compensatory attributes:
Nature of specialized product is to focus on unique value
Convience product
Consumer decision or mental shortcuts:
Everyday products so consumers will take almost no time to research before buying
Shopping product
Non compensatory:
Attributes will be more important to customers
Four growth strategies
Market Penetration
* selling existing customers existing products
Market Development
* selling new customers existing products
Product Development
* selling existing customers new products
Diversification
* selling new customers new products
Four macro excellent strategies that help firms grow and build sustainable competitive advantage
Product Excellence
* achieve effective branding and positioning
Locational Excellence
* competitive advantage based on location is sustainable because it is not easily duplicated
Operational Excellence
*efficient operations and excellent supply chain
Customer Excellence
* customer service and retaining loyal customers
Culture and its challenges
Culture:
* shared meanings, beliefs, morals, values, and customers of a group of people
- challenges is determining which marketing strategy will work for each culture
Macroenvironment factors
Culture Demographics Economic situation Political/legal services Social and natural trends Technology advances
Culture
- different languages, rules and regulations
e. g. some religions don’t eat meat and companies need to keep that in mind when marketing to them
Demographics
- characters of human segments and populations used to identify consumer markets
e. g. PS4 is marketed towards men
Economic situation
- economic changes that affect the way consumers buy merchandise and spend money
(interest rates, exchange rates, growth, unemployment)
e.g. in regression “do it yourself” companies will do well because of lower prices
Political / legal services
- comprises of political parties, government organizations, legislation, regulation manufacture have to follow from country to country
e. g. dairy farmers in the US are less regulated than in Canada
Social and natural trends
- trends shape consumer values in Canada, US and around the world
e. g. green marketing which shows a firms effort to supply environmentally friendly
Technological advances
- changes that have contributed to the improvement of the value of both products and services
e. g. online shopping has allowed customers to shop without have to leave the house
Psychological, social and situational factors that shape consumer buying decisions
Psychological
- motives
- perception
- learning
Social
- family
- reference groups
- culture
Situational
- purchase situation
- temporal state
- shopping situation
Motives
psychological
- factors that arise when a person wants or needs something to the point that they seek satisfaction (safety, self-esteem, social)
e. g. I felt the need to join a club to get more involved with Telfer and see what they have to offer and since joining the club I’ve done that
Perception
psychological
- the process of how a consumer organizes and interprets the world around them to inform their buying decisions
e. g. when buying cereal i need a gluten free option which isn’t tasteless, I found some options and on the box they look more appealing and motivating
Learning
psychological
- happens during the consumer buying process, and affects future purchases
e. g. Bells Boutique - I was a loyal customer and she stopped talking to me when I went in so I stopped supporting her business
Family
social
- can have a big influence on buying decisions as they need to meet the needs of everyone
e. g. before my parents had kids, they lived in a small house but once my sister and I were born they looked for a bigger house with more yard
Reference groups
social
- when a person influences their buying decisions based on the buying decisions of the group around them
e. g. when I’m with certain people I shop at certain stores
Culture
social
- shared values, beliefs, or morals of a group of people
e. g. in churches they all share the same value
Purchases situation
situational
- a situation that affects the customers buying decisions due to a intrinsic aspec of the reason fro purchasing things such as gifts
e. g. my dad doesn’t care for name brand things, but when he buys gifts for people he will
Temporal state
situational
- a persons decision can be influenced by their state of mind at the time of purchase
e. g. when I shop by myself I’m an impulsive buyer but when I shop with my mom I am more cautious on how I spend my money
Reliability
- the consistency of the data under the same circumstances
e. g. if you as a group of people for their opinion n a product one week apart and you received the same response then the information is reliable
Validity
- how well a research method relates to the questions you as a researcher ask
e. g. if you ask a group of people a questions and that question contributes to your hypothesis and not another hypothesis the information is valid
Triangulation
- using different research methods to collect data for the same subject
e. g. using a focus group to determine consumer satisfaction is effective, but also observing customer behaviour outside of a focus group can lead to insights that you wouldn’t have gotten from a focus group
Qualitative research
* projective techniques
Metaphors
Third-party projections
Role playing
Associations
* observation
* in-depth interviews
* social mediaQuantitative research
- experiments
- survey
- scanner
- pannel
Research design
- a framework of methods and techniques that were chosen by a researcher to combine various components of research in a reasonably logical manner so the research problem is efficiently handled
e. g. it provides insights about “how” to conduct research using a particular methodology
Four types of strategies which companies use to position their products or services in marketplace
- value
- product attributes
- competition
- benefits and symbolism
Value
positioning products
- high quality relative to price
e. g. Mega blocks are low-price value strategy, whereas Lego uses a high-price positioning strategy
Product attributes
positioning products
- focuses on those attributes that are most important to the target market
e. g. Starbucks and is a coffee shop and they focus on making good coffee
Competition
positioning products
- position your products head-to-head against a specific competitor or and entire product/service classification on similar attributes but within the target market
e. g. Apple and Samsung with their iPad and tablet
Benefits and Symbolism
- benefits of the brand as well as the psychological meaning of the brand to consumers
e. g. Patagonia makes great products and also gives back to the world
High involvement purchases
- requires a greater attention and deeper processing before making the purchase
e. g. this is used when making big purchases such as houses and cars
Low involvement pruchases
- requires less attention and more peripheral processing
e. g. used when making everyday purchases such as groceries
Segmentation, Targeting, Positioning process
Part 1: Segmentation
- strategy of objectives (mission statement and current state using SWOT)
- segmentation bases (geographic, demographic, psychographic, behavioural)
Part 2: Targeting
- evaluate segment attractiveness (identifiable, researchable, responsive, substantial and profitable)
- select target market (using SWOT)
Part 3: Positioning
* identify and develop positioning strategy (value, product attributes, benefits, and symbolism, competitions, market leadership)
Segmentation bases
- has to do with the target market that the markets are looking to target
e. g. geographic, demographic, psychographic, behavioural
Positioning bases
- mental picture that people have about a company and its products or services relative to competitors
e. g. value, product attributes, benefits and symbolism, competition, market leadership
Promotion
- communicating value
e. g. advertising, sales promotion, personal selling, public relations, direct marketing, electronic media
Repositiong
- removing all the knowledge and experience from a product/brand and getting rid of it
Target market
- you must perform a SWOT analysis to find their individual target market
Competitive advantage
- any advantage you have over competitors which makes it hard for them to copy and steal your idea
Segmentation variables
- demographic
(diving market based on gender, age, income, household type, ethnicity) - geographic
- behavioural
(benefits, usage rate, loyalty, occasion) - psychographic
(self-values, self concept, lifestyle)
Marketing tactics for high involvement
- supplying the customer with lots of information about the product
- warranties, money back guarantee, trials
- showing the customer examples of people who have purchased the product and are satisfied with it
Marketing tactics for low involvement
- supplying the customer with free samples
- rearranging the store o that in order to check out, consumers must walk through more products to encourage impulse purchases
Demographic bases
- age
- gender
- ethnicity
Psychographic bases
- self values
- self-concept
- lifestyles
Behavioural bases
- benefits
- usage rate
- loyalty
- occasion
Shopping situation
situational
- crowding, sales people, store atmosphere, in store demo
e. g. When it’s busy in stores I don’t go in and if sales people are too pushy I won’t give them my sale
What is perception based on
- a person’s culture, tradition and overall shopping
