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

Quiz 2 (Chapters 6,7,8) Flashcards

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
Q

What determines positioning?

A

Positioning is influenced by the marketing mix (four Ps)
Product, price, place, promotion

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26
Q

Is the positioning of the product/company only determined by the marketers?

A

No, consumers can position products without the help of marketers (can be risky if left up to the consumers to position)

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27
Q

What is a positioning statement?

A

A brief clearly explained sentence that communicates the unique value of a brand to the target market

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28
Q

Where do taglines emerge from?

A

Positioning statements

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29
Q

What is the rule of thumb, the more narrow the targeting…

A

The more narrow the targeting, the easier the positioning

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30
Q

When choosing what segment to target, what is an external opportunity?

A

It is a segment that is equally appealing to all firms competing in that market.

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31
Q

What is an example of an external opportunity when choosing what segments to taget?

A

Size, growth rate, margins, revenue, volumes…

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32
Q

When choosing what segment to target, what is an internal strength?

A

An internal strength is specific to each firms competitive situation

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33
Q

What are consumer insights?

A

Critical information to produce ads and promotion

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34
Q

What is trendspotting?

A

Identifying new trends in the marketplace

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35
Q

What is design thinking?

A

Putting yourself in the consumer’s shoes. Gets marketers to think like designers

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36
Q

What is concept test?

A

seeks feedback designed to screen the quality of a new idea
Uses consumers as the judge and jury

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37
Q

What is audience profiling?

A

The practice of analyzing and segmenting audiences based on shared behaviors to market to them more effectively

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38
Q

What is lifestyle research?

A

Uses survey data from consumers who have answered questions about themselves

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39
Q

What is lifestyle research also known as?

A

AIO

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40
Q

What does AIO stand for?

A

Activities, interests, and opinions

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41
Q

What does AIO help do?

A

Helps develop messages and target profiles of consumers

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42
Q

What is qualitative research?

A

Research that has data that is descriptive and entails phenomena that are observed rather than measured

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43
Q

What are two ways to get qualitative information from consumers?

A

In-depth interviews
Focus groups

44
Q

What is an in-depth interview?

A

A form of qualitative research done with consumers
Brings a deep understanding and is often used to supplement the findings from AIO research

45
Q

What are focus groups?

A

Discussion session with 6-10 target customers to come up with new insights about the good or service, facilitated by a professional moderator

46
Q

What is quantitative research?

A

A form of systematic information gathering and analysis based on measures of quantities or numbers

47
Q

What are projective techniques?

A

Allow consumers to project their thoughts and feelings onto a blank or neutral surface

48
Q

What are common projective examples?

A

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
Q

What is a fieldwork interview?

A

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
Q

What is ethnographic research?

A

Researchers observe and interview consumers in real-world settings

51
Q

What is a long interview?

A

(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
Q

What is a disadvantage of a long interview?

A

the time it takes

53
Q

What is a crucial advantage of long interviews?

A

the depth of the insights about the phenomenon being studied

54
Q

What is secondary research?

A

Data already exists due to another party

55
Q

What is primary research?

A

research that is conducted by the researcher with their design and their own collection of data

56
Q

What is big data?

A

is a large dataset used with computer algorithms to find patterns

57
Q

What is netnography?

A

a research method to understand online communities or online cultures

58
Q

What is evaluative research?

A

research on ads or promotional language

59
Q

What does evaluative research assess?

A

it is used to assess ads and promotions, usually right before or after an ad is finished

60
Q

What are normative test scores?

A

scores relative to the average for a category of ads

61
Q

What is an example where normative test scores would be used?

A

To see how well a particular ad scored against average commercials of its type

62
Q

What is the communication test?

A

discovers whether a message is communicating something close to what the advertiser desired

63
Q

What could happen if you didnt do a communication test?

A

You could be communicating something that you didnt intend

64
Q
A
65
Q

What is cognitive residue?

A

Pieces of ads that have been viewed, mixed with the customers own thoughts and reactions

66
Q

What is a downside about ads with comedy?

A

Consumers will remember the humorous ads but might not remember the brand name

67
Q

What are recognition tests?

A

they require the audience to indicate that they have seen an ad before

68
Q

What is an attitude study?

A

measures consumer attitudes after exposure to an ad

69
Q

What is a good predictor of thoughts?

A

Feelings

70
Q

Why were eye-tracking systems developed?

A

To monitor eye movements across print and online ads

71
Q

What is behavioral intent?

A

Essentially what consumers say they intend to do, but it not always a great substitute for actual consumer behavior

72
Q

What is an example of behavioral intent?

A

Asking a consumer about a product, them saying that they would buy it, only in reality they dont buy it.

73
Q

What are tracking studies?

A

document the effect of advertising and branded entertainment over time

74
Q

What are direct responses?

A

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
Q

What is A/B testing?

A

a way to compare two versions of something (an ad usually) to find out which one performs better

76
Q

What is an advertising plan?

A

a plan that specifies the thinking and tasks needed to conceive and implement an effective advertising effort

77
Q

What should the advertising plan be an extension of?

A

A firms marketing plan

78
Q

What does the introduction of an advertising plan consist of?

A

an executive summary & overview

79
Q

What is an executive summary?

A

previews the most important aspect of the plan

80
Q

What is the introduction to the reader?

A

A first impression

81
Q

What might situational analysis include?

A

it might include demographic, technology, social and cultural, economic, and political/regulatory factors that influence the brands situation

82
Q

What is ethnocentrism?

A

the tendency to view and value things from the perspective of one’s own culture

83
Q

What is self-reference criterion (SRC)

A

the unconscious reference to ones own cultural values, experiences, and knowledge as a basis for decisions

84
Q

What must management overcome the biases of to be successful in international markets?

A

ethnocentrism and self-reference criterion

85
Q

What should the industry analysis include?

A

should enumerate and discuss the most important aspects of a given industry such as industry trends

86
Q

Is it possible to have TOO MUCH demand for a product?

A

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
Q

What is market analysis?

A

Identifies the user base, and determines the most important market factors impacting your market demand

88
Q

What is competitor analysis?

A

You evaluate current, potential, and indirect competitors

89
Q

What is a fundamental advertising objective?

A

Creating or maintaining brand awareness

90
Q

What is top-of-mind awareness?

A

the brands the consumers can name off the top of their head, are the most relevant and fresh

91
Q

What offers lots of opportunities for brands to engage customers and create brand awareness?

A

Social media

92
Q

What is trial use of a brand?

A

coupons, rebates, free samples. premium offers

93
Q

What is one of the most important tasks for marketers?

A

Budgeting

94
Q

What is a positive of the percentage of sales approach?

A

it is easy to use and quick to implement

95
Q

What is a negative of the percentage of sales approach?

A

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
Q

What is the share of market / share of voice method in budgeting?

A

percent of the total advertising in a category spend by one brand

97
Q

When is the share of voice method often used?

A

It is often used when a new product is introduced

98
Q

What is the method of budgeting that focuses on the relationship between spending and advertising / IBP objectives?

A

the objective and task approach

99
Q

What is the objective and task approach to budgeting?

A

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
Q

What is build-up analysis?

A

several factors must be considered in terms of cost:
Reach, frequency, time frame, production costs, media expenditures, ancillary costs…

101
Q

When implementing the objective and task budgeting method - what should you consider?

A

Compare costs against industry and corporate benchmarks
Reconcile and modify the budget
Determine a time frame for payout

102
Q

What is the execution of the plan?

A

The actual doing of an ad plan

103
Q

What are the two elements of an advertising plan?

A

Determining the message tactics
Devising a media plan

104
Q

What is a media plan?

A

Specifies where the ads will be placed and what strategy is behind their placement

105
Q

What should be a part of the evaluation stage?

A

How to measure the results of the plans advertising and IBP activities

106
Q

If an outside agency is involved, what should the evaluation plan explain?

A

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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