Second exam Flashcards
1
Q
Reference groups
A
- membership groups: direct influence and to which a person belongs
- aspirationals: groups an individual wishes to belong
- reference groups: groups that form a comparison or reference in forming attitudes or behavior
2
Q
Perception
A
- selective attention: tendency to screen out most of the information to which they are exposed. People are more likely to notice stimuli that relate to a current need
- selective retention: remember good points made about a brand they favor
- selective distortion: interpret information in a way that will support what they already believe
3
Q
Buyer decision process
A
- Need recognition
- Information search
- Evaluation of alternatives
- Purchase decision
- Post-purchase behavior
4
Q
Buying decision behavior
A
- complex: highly involved and significant differences among brands
- dissonance reducing: highly involved but little difference among brands
- habitual: low-consumer involvement and little significant brand difference (market leader)
- variety seeking: low consumer involvement but significant brand difference (challenger firms)
5
Q
Buyer decision process for new products
A
- innovators
- early adopters
- early mainstreamer
- late mainstreamer
- lagging adopters
6
Q
Major types of buy situation
A
- straight rebuy
- modified rebuy
- new task
7
Q
Participants in the business buying process
A
- users
- influencers
- deciders
- purchasers
- gatekeepers
8
Q
Buyphases
A
- Problem recognition
- Need description
- product specification
- supplier search
- proposal solicitation
- supplier selection
- order routine specifications
- performance review
9
Q
Marketing research
A
- proper defining the problem and research objectives
- developing a research plan for collecting information
- implementing research plan
- interpreting and reporting the findings
10
Q
Types of research
A
- qualitative
- quantitative
- primary
- secondary (lower cost but data may not be relevant)
11
Q
Sampling plan (probability)
A
- Simple random sample: equal chance of selection
- Stratified random: mutually exclusive groups and random samples are drawn from each group
- Cluster sample: mutually exclusive groups and the researcher draws a sample
12
Q
Sampling plan (non probability sample)
A
- Convenience sample: easiest population members
- Judgement sample: the researcher select population members
13
Q
STP strategy
A
Identifiying and engaging the right customer segments
14
Q
Select customers to serve
A
Through segmentation and targeting
15
Q
Value proposition
A
Through differentiation and positioning
16
Q
Market segmentation
A
It requires dividing the market into smaller segments with distinct needs and characteristics. It can be geographic, demographic, psychographic, behavioral
17
Q
Requirements for effective segmentation
A
- Measurable
- Accessible
- substantial
- differentialble
- actionable
18
Q
Target market
A
Set of buyers who share common needs or characteristics that the company decides to serve
19
Q
Marketing targeting strategies
A
- mass marketing: focuses on common needs rather than what’s different (eg apples)
- segmented marketing: targets several different market segments and designs separate offers for each (eg shampoo)
- niche marketing: target a large share of one smaller segment (eg clothes for pregnant women)
- micromarketing: tailoring products to suit the tastes of specific individuals
20
Q
Positioning strategy
A
- Identifying competitive advantages: offering consumers greater value
- Selecting competitive advantages
- Effectively communicate chosen position
21
Q
Positioning statement
A
To (target segment) our (brand) is (concept) that (point of difference)
22
Q
Positioning map
A
It shows the consumer’s perceptions of marketers’ brands
23
Q
Consumer product classification
A
- convenience: minimum comparison and buying effort
- shopping: customers carefully compares
- specialty: unique characteristics
- unsought: not something that consumers think about
24
Q
Core product vs actual product
A
Core product: the product itself
Actual product: all the attributes that come with it
25
Brand positioning
- attributes
- benefits
- beliefs and values
26
Brand sponsorship
- manufacturer's / national brand: eg cocacola
- store / private brand: found in specific stores, they don't do promotions (eg hacendado)
- licensed brands: h&m using disney on their clothes
- co-brands: two brands of different companies are used on the same product
27
Brand development
- line extentions
- brand extentions
- multibrands
- new brands
28
Product life cycle
1. Product development stage
2. Introduction
3. Growth
4. Maturity
5. Decline
29
Price
It can be:
cost based pricing:
- fixed costs: do not vary with production or sales level
- variable costs: vary with the level of production
value based pricing: the price is estimated following what the consumers are willing to pay for a product
30
Place (distribution)
- supply chain: includes firms' raw materials, productive inputs, and factory capacity
- value chain: includes company, suppliers, distributors, consumers
31
Types of distribution
- Intensive distribution: penetrate every retail
- exclusive distribution: only available in some retailers
- selective distribution: companies select retailers that are more suitable to their consumers
32
Promotion
- advertising: pay form of nonpersonal presentation and promotion of products
- personal selling: personal interaction by the firm's sales force
- sales promotion: short-term incentive to encourage the purchase
- public relations: creating good relationships with the company's publics
- direct and digital marketing
33
New communications thinking
- owned: content we control and create
- shared: content created by consumers, NO control over it
- paid: we can partially control it
- earned: feedback we earn, NO control over it
34
Geographic segmentation
It divides the market into different geographical units such as:
nations
regions
states
countries
cities
neighborhoods
e.g. McDonald’s has different menus for each country
35
Demographic segmentation
Divides the market into segments based on variables such as
- age → age and life-cycle stage segmentation divide a market into different age and lifecycle groups (e.g. Amazon targeted a younger tablet market for using the Kindle Fire tablet, introducing FreeTime Unlimited, a multimedia subscription service targeted toward 3- to 8-year-olds)
- life-cycle stage
- gender → gender segmentation divides a market into different segments based on gender (e.g. L’Oréal Men’s Expert, P&G, Nivea, clothes)
- income → income segmentation divides a market into different income segments. E.g. Dollar Tree (low- and middle-income groups)
- occupation
- education
- religion
- ethnicity
- generation
36
Psychographic segmentation
Divides a market into different segments based on:
- social class
- lifestyle → e.g. W Hotels, iconic lifestyle brand inviting guests to step inside the worlds of design, music, and fashion
- personality → e.g. Coca-Cola Zero targets more mature, practical, good-humored personalities: “Real Coca-Cola taste and zero calories”
- characteristics
37
Behavioral segmentation
Divides a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product:
occasions → occasions refer to when consumers get the idea to buy (e.g. Knorr advertises its soups more heavily in the cold winter months)
Holiday occasions or nontraditional occasions.
benefits sought → e.g. Schwinn makes bikes for every benefit segment. For example, Schwinn’s urban bikes are “for riders who want a functional, durable, and stylish bike to commute or ride casually in urban areas.”
user status (nonusers, ex-users, potential users, first-time users, and regular users of a product) → Marketers want to reinforce and retain regular users and attract targeted nonusers. E.g. Potential users (those facing life-stage changes), upscale kitchen retailer works, and contacts couples through the bridal registry.
usage rate (light, medium, and heavy product users) → heavy users are often a small percentage of the market but account for a high percentage of total consumption (e.g. a recent study showed that heavy seafood consumers in the United States are a small but hungry bunch. Less than 5% of all shoppers buy nearly 64% of unbreaded seafood consumed in the United States.)
loyalty status → buyers can be divided into groups according to their degree of loyalty:
some consumers are completely loyal, somewhat loyal, or other buyers show no loyalty to any brand
