REVIEW Flashcards
Demographic Segmentation
Age, Gender, Income, Family, Life Stae, Race, Education, Occupation, Social Class
Psychographics
Lifestyle, Personality, Values, Opinions, Politics, Habits, Hobbies
Geographic
Region, Urban/Rural, Country, Climate
Behavioral
Usage Rate, Purchase Quantity, Loyalty, Responses to Marketing Mix, Past Purchases, Retail Format, Ocassions
Hierarchy Of Needs
Self-actualization, Personal Needs, Social needs, Safety Needs, Psychological needs
Anchoring
ex/ Give two groups different numbers, 5 and 70, then ask them what the temperature will be today, they will base their answer on the number you originally gave them
Decoy
ex/ Popcorn at a movie theater (encourages a larger size)
Compromise Effect
Low, medium, and high price item, consumers will be more likely to buy the medium if there’s a higher price item instead of the low one because it is easier to justify their purchase
Mental Accounting
Will spend 200 dollars at a nice restaurant but won’t spend 50 somewhere mediocre
Endowment Effect
related to loss aversion, parting with an endowed good is perceived as a greater loss than the potential gain of acquiring another good of equal value
Prospect Theory
People appreciate multiple small gains more than one large gain of the same total amount:
A phone ad might say:
“Get a high-resolution camera, long battery life, and a powerful processor!” (Three separate gains instead of just saying “It’s a great phone.”)
Discounts work better when separated:
“Save $50 on your phone and get a free case!” sounds better than a single $60 discount.
People prefer one large loss over multiple small ones:
Big price increases happen all at once rather than slowly over time. (E.g., Netflix raising prices once a year rather than $1/month.)
Hidden surcharges (e.g., airline baggage fees) feel less painful than a higher upfront ticket price.
Primary Data
Specific
Expensive, time-consuming, potential biases
Secondary Data
Cheap, less biased, easily available
not customized
Conjoint analysis
show consumers different hypothetical predict profiles, have them rank/rate, draw a regression
Swot
Strengths, weakness, opportunities, threats
Market Share
Ratio of sales revenue of the firm to total sales revenue of all firms in the industry
Game theory
Set of players, set of actions for each player, payoffs for every contingency
Nash Equilibrium
A’s choice is optimal based on B’s choice, Bs choice is optimal based on A’s choice
Mass marketing
Appropriate when consumers have virtually the same needs, goods are scarce or commodity, goods can sell themselves, and little to no competition
Why target market?
Increased Firm Profits:
- More efficient communication
- Identification of valuable costumer segments
Increase consumer Satisfication:
- Customized/ personalized products and services
- Relevant promotions
- Efficent/ personalized interactions w/ the firm
Segmentation
WHO: descriptors
WHAT: behaviors
WHY: preferences
Positioning
Place a product occupies in the customer’s mind
1) How consumers currently perceive our/ competitors product
2) Are there gaps in perceptions that may be profitable
A- Audience
B- Benefits
C- Compelling reason
