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MKT 3390 > Quiz 2 (Chapters 6,7,8) > Flashcards

Quiz 2 (Chapters 6,7,8) Flashcards

(106 cards)

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1
Q

What is the process of market segmentation?

A

Dividing heterogeneous groups of customers with different needs into smaller homogenous groups with similar needs

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2
Q

What is a market segment?

A

a group of consumers who share similiar attitudes and behaviors towards an offering

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3
Q

What are different areas you can segment consumers (B2C)

A

Demographic - age, gender, income, education
Geographic - country, area, climate, market size
Attitudes - awareness, involvement, attributes sought, price sensitivity, risk tolerance, traits
Behavior - media, loyalty, frequency, co-purchases, political affiliations

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4
Q

What is behavioral segmentation based on?

A

it is based on consumer knowledge, uses, or responses to a product

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5
Q

What is loyalty status?

A

segments based on the degree of loyalty to brands, stores, or companies

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6
Q

What are the different user status?

A

non users, potential users, first time users, regular users

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7
Q

To be useful what must a segment be?

A

Measurable & accessible
substantial
differentiable
actionable

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8
Q

What are the two ways to segment the market?

A

managerial
customer based

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9
Q

What is the breadth strategy?

A

Reach multiple segments with the same basic product

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10
Q

What are the advantages of the breadth strategy?

A

appeal to the largest number of buyers at once
Employ a single strategy (efficient)

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11
Q

What is an example of a breadth strategy?

A

A computer monitor company will make their monitor as universal as possible so it would make for a good second monitor or to be included in a package deal

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12
Q

What are the disadvantages of the breadth strategy?

A

trying to be good for everyone might be best for no one
likely to be a high volume low price strategy

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13
Q

What is the length strategy?

A

customizing for each segment

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14
Q

What is an example of a length strategy?

A

Beverage companies offering varients of their drink to target different segments
Diet Coke, Coke, Coke zero…

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15
Q

What are the advantages of the length strategy?

A

The same company can capture various customers
They can change their pricing to charge more for different segments

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16
Q

What are the disadvantages of the length strategy?

A

it costs more to offer additional products
It also costs more to market those additional products

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17
Q

What is the depth strategy?

A

Serving one segment really well (often with multiple products)

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18
Q

What is an example of the depth strategy?

A

A high-end grocery store that sells organic food, fair trade coffee…

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19
Q

What are the advantages of the depth strategy?

A

Less competition when targeting smaller market segments
Greater knowledge of consumers needs
High brand awareness among the niche
Efficient marketing

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20
Q

What are the disadvantages of the depth strategy?

A

Smaller market share
can be high risk if the segment sours or if competition enters

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21
Q

What is micromarketing?

A

individual marketing (one on one)

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22
Q

What are the advantages of micro marketing?

A

They meet customers’ specific needs

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23
Q

What are the disadvantages of micromarketing?

A

More expensive to customize
Riskier (smaller pool of customers)

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24
Q

What is positioning?

A

what your brand or product stands for in the minds of the consumers relative to competing offerings

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25
What determines positioning?
Positioning is influenced by the marketing mix (four Ps) Product, price, place, promotion
26
Is the positioning of the product/company only determined by the marketers?
No, consumers can position products without the help of marketers (can be risky if left up to the consumers to position)
27
What is a positioning statement?
A brief clearly explained sentence that communicates the unique value of a brand to the target market
28
Where do taglines emerge from?
Positioning statements
29
What is the rule of thumb, the more narrow the targeting...
The more narrow the targeting, the easier the positioning
30
When choosing what segment to target, what is an external opportunity?
It is a segment that is equally appealing to all firms competing in that market.
31
What is an example of an external opportunity when choosing what segments to taget?
Size, growth rate, margins, revenue, volumes...
32
When choosing what segment to target, what is an internal strength?
An internal strength is specific to each firms competitive situation
33
What are consumer insights?
Critical information to produce ads and promotion
34
What is trendspotting?
Identifying new trends in the marketplace
35
What is design thinking?
Putting yourself in the consumer's shoes. Gets marketers to think like designers
36
What is concept test?
seeks feedback designed to screen the quality of a new idea Uses consumers as the judge and jury
37
What is audience profiling?
The practice of analyzing and segmenting audiences based on shared behaviors to market to them more effectively
38
What is lifestyle research?
Uses survey data from consumers who have answered questions about themselves
39
What is lifestyle research also known as?
AIO
40
What does AIO stand for?
Activities, interests, and opinions
41
What does AIO help do?
Helps develop messages and target profiles of consumers
42
What is qualitative research?
Research that has data that is descriptive and entails phenomena that are observed rather than measured
43
What are two ways to get qualitative information from consumers?
In-depth interviews Focus groups
44
What is an in-depth interview?
A form of qualitative research done with consumers Brings a deep understanding and is often used to supplement the findings from AIO research
45
What are focus groups?
Discussion session with 6-10 target customers to come up with new insights about the good or service, facilitated by a professional moderator
46
What is quantitative research?
A form of systematic information gathering and analysis based on measures of quantities or numbers
47
What are projective techniques?
Allow consumers to project their thoughts and feelings onto a blank or neutral surface
48
What are common projective examples?
Dialogue balloons: cartoon stories with blank speech bubbles to enable consumers to create their dialogue. Story construction: asks to tell a story about people depicted in a scene or picture
49
What is a fieldwork interview?
Conducted outside the agency - usually in the home or site of consumption Can be used to assess advertising effectiveness Purpose: learn from the experiences of the consumer and from direct observation
50
What is ethnographic research?
Researchers observe and interview consumers in real-world settings
51
What is a long interview?
(also known as an in-depth interview) A one-on-one interview to get at deeper connections between brands, consumption practices, and consumers real lives
52
What is a disadvantage of a long interview?
the time it takes
53
What is a crucial advantage of long interviews?
the depth of the insights about the phenomenon being studied
54
What is secondary research?
Data already exists due to another party
55
What is primary research?
research that is conducted by the researcher with their design and their own collection of data
56
What is big data?
is a large dataset used with computer algorithms to find patterns
57
What is netnography?
a research method to understand online communities or online cultures
58
What is evaluative research?
research on ads or promotional language
59
What does evaluative research assess?
it is used to assess ads and promotions, usually right before or after an ad is finished
60
What are normative test scores?
scores relative to the average for a category of ads
61
What is an example where normative test scores would be used?
To see how well a particular ad scored against average commercials of its type
62
What is the communication test?
discovers whether a message is communicating something close to what the advertiser desired
63
What could happen if you didnt do a communication test?
You could be communicating something that you didnt intend
64
65
What is cognitive residue?
Pieces of ads that have been viewed, mixed with the customers own thoughts and reactions
66
What is a downside about ads with comedy?
Consumers will remember the humorous ads but might not remember the brand name
67
What are recognition tests?
they require the audience to indicate that they have seen an ad before
68
What is an attitude study?
measures consumer attitudes after exposure to an ad
69
What is a good predictor of thoughts?
Feelings
70
Why were eye-tracking systems developed?
To monitor eye movements across print and online ads
71
What is behavioral intent?
Essentially what consumers say they intend to do, but it not always a great substitute for actual consumer behavior
72
What is an example of behavioral intent?
Asking a consumer about a product, them saying that they would buy it, only in reality they dont buy it.
73
What are tracking studies?
document the effect of advertising and branded entertainment over time
74
What are direct responses?
Ads can offer the audience the opportunity to place an inquiry or respond directly through a website, reply card, or toll-free phone number
75
What is A/B testing?
a way to compare two versions of something (an ad usually) to find out which one performs better
76
What is an advertising plan?
a plan that specifies the thinking and tasks needed to conceive and implement an effective advertising effort
77
What should the advertising plan be an extension of?
A firms marketing plan
78
What does the introduction of an advertising plan consist of?
an executive summary & overview
79
What is an executive summary?
previews the most important aspect of the plan
80
What is the introduction to the reader?
A first impression
81
What might situational analysis include?
it might include demographic, technology, social and cultural, economic, and political/regulatory factors that influence the brands situation
82
What is ethnocentrism?
the tendency to view and value things from the perspective of one's own culture
83
What is self-reference criterion (SRC)
the unconscious reference to ones own cultural values, experiences, and knowledge as a basis for decisions
84
What must management overcome the biases of to be successful in international markets?
ethnocentrism and self-reference criterion
85
What should the industry analysis include?
should enumerate and discuss the most important aspects of a given industry such as industry trends
86
Is it possible to have TOO MUCH demand for a product?
Yea if there is a lot more demand than can be supplied, there is a good chance of having lots of unhappy customers and a harmed brand position
87
What is market analysis?
Identifies the user base, and determines the most important market factors impacting your market demand
88
What is competitor analysis?
You evaluate current, potential, and indirect competitors
89
What is a fundamental advertising objective?
Creating or maintaining brand awareness
90
What is top-of-mind awareness?
the brands the consumers can name off the top of their head, are the most relevant and fresh
91
What offers lots of opportunities for brands to engage customers and create brand awareness?
Social media
92
What is trial use of a brand?
coupons, rebates, free samples. premium offers
93
What is one of the most important tasks for marketers?
Budgeting
94
What is a positive of the percentage of sales approach?
it is easy to use and quick to implement
95
What is a negative of the percentage of sales approach?
When sales are decreasing the advertising budget will automatically decrease Can result in overspending on advertising May not relate advertising and IBP dollars to objectives
96
What is the share of market / share of voice method in budgeting?
percent of the total advertising in a category spend by one brand
97
When is the share of voice method often used?
It is often used when a new product is introduced
98
What is the method of budgeting that focuses on the relationship between spending and advertising / IBP objectives?
the objective and task approach
99
What is the objective and task approach to budgeting?
the budget is formed by identifying the specific tasks required to achieve the goals The most logical and defensible method of calculating and allocating an advertising budget
100
What is build-up analysis?
several factors must be considered in terms of cost: Reach, frequency, time frame, production costs, media expenditures, ancillary costs...
101
When implementing the objective and task budgeting method - what should you consider?
Compare costs against industry and corporate benchmarks Reconcile and modify the budget Determine a time frame for payout
102
What is the execution of the plan?
The actual doing of an ad plan
103
What are the two elements of an advertising plan?
Determining the message tactics Devising a media plan
104
What is a media plan?
Specifies where the ads will be placed and what strategy is behind their placement
105
What should be a part of the evaluation stage?
How to measure the results of the plans advertising and IBP activities
106
If an outside agency is involved, what should the evaluation plan explain?
What criteria will be applied to agency performance How long the agency will have to achieve the agreed on objectives

MKT 3390 (4 decks)

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