Test 2 Prep Flashcards
1
Q
Three types of people…those who:
A
1) make it happen (create jobs, grow GDP)
2) watch things happen (voting intelligence)
3) unaware of anything (brain washable)
2
Q
List the 4 factors for personality and self-concept
A
1) real self
2) self-image
3) looking-glass self
4) ideal self
3
Q
How do marketers use age and life cycle to make decisions?
A
- people’s needs change throughout life
- children are important in deciding where families spend money
4
Q
List reasons how people’s priorities change.
A
- grow older
- taste in food changes
- clothing/style
- travel
- sports activities
5
Q
What is a connection between marketing and government spending?
A
- lifestyle of young couple varies from young working family versus older couple
6
Q
reference groups
A
- have the same interests
- examples: fellow students, sports teams, hobby clubs
-influence by others can be strong, especially with younger people, like Apple and Nike are in the top 3 most-loved products for youth
7
Q
social class
A
- division of people into groups by values, lifestyles, and social history
- for example: income, occupation, education, inherited wealth
-person’s place in society influences their purchasing power to buy houses, automobiles, clothing, travel, entertainment - marketers recognize that social class impacts what customers buy
8
Q
culture
A
- behaviour learned from external sources (family, workplace, education)
- over time people’s values change
- current value system has been influenced by attitudes, opinions, and customs
- marketers need to consider who to put in commercials and have an awareness of who will buy the product/service
9
Q
sub-culture
A
- subgroup of a culture that has distinctive mode of behaviour
- more evident in larger cities because of ethnic population
10
Q
regional differences
A
- differences from province to province;
city to city;
French to English;
11
Q
How are Quebecois are different?
A
1) joyful living
2) easy going
3) uncomplicated
4) all about me
5) live in the moment
12
Q
Maslow’s Hierarchy of Needs
A
- Physiological Needs
- Safety Needs
- Social Needs
- Esteem Needs
- Self-Actualization Needs
13
Q
Physiological Needs
A
food
water
sex
air
(basic survival needs)
14
Q
Safety Needs
A
security
protection
comfort
15
Q
Social Needs
A
sense of belonging
love from family and friends
16
Q
Esteem Needs
A
recognition
achievement
status
need to excel
17
Q
Self-actualization Needs
A
fulfillment
realization of potential (someone achieves what they believe they can do)
18
Q
Market Segmentation
A
Mass Marketing
Niche Segmentation
Market Segmentation
Direct or One-to-one Segmentation
19
Q
Mass Marketing
A
- appeals to broad range of customers without addressing distinct characteristics among them
- e.g., Walmart - power of pricing
20
Q
Market Segmentation
A
- division of large market (mass market) into smaller group on basic needs
- e.g., car dealerships, beauty market
21
Q
Niche Market
(sub-segmentation)
A
- target a product line to one particular sub-segment of a segment and use all marketing resources to satisfy these customers
e.g., Golf Town, Hat World - specific thing to specific people
22
Q
Direct Segmentation and Behavioural Targeting
A
- marketing programs designed to meet needs
- preferences of individual cutomers
23
Q
Target Market Profile
A
1) demographics
2) psychographics
3) geographics
4) behaviour response
24
Q
In Canada marketers should think about:
A
1) Aging Population
2) Social Responsibility (e.g., environment)
3) New Household Formations
4) Ethic Diversity
25
Demographic Segmentation
e.g., marketing towards women has started to grow
26
Psychographic Segmentation
- who buys it and why they buy it
- based on activities, interests and opinions of consumers
27
Geographic Segmentation
- consider where people live
- marketing strategies will be different for different communities (e.g., urban versus rural)
28
Behaviour Response Segmentation
- dividing buyers into groups for using product during certain time
e.g., orange juice at breakfast
29
Behaviour Response Segmentation
1) Occasions for use
2) Benefits sought; e.g., types of shampoo
3) Usage rate - 80/20 rule
4) Loyalty response; e.g., loyal customer of a brand are beneficial to company
30
80/20 Rule
- company gets 80% of sales by 20% of users
31
Market Positioning Concepts
- designing and marketing a product to meet needs of a target market and create advertisements to make product standout from competition
32
Market Positioning Concepts
Canadian Hotel Market:
1) Luxury (high price)
2) Higher Quality and More services
3) Economy (low price)
4) Low Quality and Fewer Services
33
Simon Sinek (TED video) on leadership
- people want to follow people in a position of power and inspire others
- communicate in opposite way
- Golden Circle
- Law of Diffusion of Information
34
Golden Circle
why - people buy why you do it, driven by purpose, cause/belief
how - gut decisions, trust feelings
what - products can be iffidentical
35
Law of Diffusion of Information
- marketing of product/service
- need 18% of market to get penetration into market
36
Law of Diffusion of Information - when people buy into a new idea/product:
1) innovators - risk takers
2) early adapters - want product early
3) early majority - buy a proven product
4) late majority - buy once product is established
5) laggards - people who don't like change/buy same produts
37
How companies can reposition:
- brand leadership
- product differentiation; e.g., Kleenex, Band-aid
- technical innovation positioning; e.g., Dyson
- lifestyle positioning; e.g., iRobot vacuum
38
Product Strategy
- product = thing; benefits that a buyer receives in exchange for money
39
What does USP stand for?
Unique Selling Point
40
What is USP?
- characteristic of product that makes it different from other products
41
Types of Consumer Good
Examples
Product
Price
Distribution
Marketing Communications
Consumer buying behaviour/
42
Categories of Industrial Goods and Services
- capital items
- parts and materials
- supplies and services
43
Branding Strategies
branding
packaging
labelling
44
Brand (definition)
name, term, symbol, or design that identifies a good or service
45
Brand
1) brand name (can be vocalized)
2) brandmark or logo (symbol that identifies product)
3) trademark (only owner can use; legal)
4) patent (manufacturer has sole right to develop and market product, process, material)
46
Family Brand Strategy
- group of related products
e.g., Old Spice has body wash, body spray, hair care
47
Co-branding
Branding uses successful product to help with own brand name.
48
Private label
- brand that is produced specifically for distributor
e.g., Canadian Tire has Mastercraft and Motomaster
Loblaws has Presidents Choice and Joe Fresh
49
Generic brand
- product without a brand name or identifying features (minimal colour, simple text on label)
50
Cult brands
- small group of devotees who spread the word of product/service to help get it into mainstream; not a fad
e.g., Vans is an example of lifestyle selling point; Lululemon moved beyond original plan, now have men's clothing and larger sizes
51
product pakaging
- consumers are drawn to certain colours and designs
52
Components of Packaging
1) Primary package - packaging that contains actual product, e.g., plastic, glass, tube
2) Secondary package - protects product, e.g., box
3) Labels - colour, font, information, trending designs
4) Shipping Carton - bar codes, labels
53
Main 4 functions of a package
1) Protect product - during transportation
2) Market the product - e.g., pro Canadian, impress customers
3) Provide convenience to customers - size of product
4) Be environmentally friendly - less plastic
Another function: timed - offer 10% more; contains coupon
54
Brand design
1) Imagination - insightful, creative
2) Innovation - make it a reality
3) Operational - product offered in a consistent manner
4) Renovation - continuous innovation and improvement; stay ahead of competitors; e.g., Heinz ketchup went from glass to plastic bottles
55
Thomas...do you remember what e.g., stands for?
e.g., is the short form for the word 'example'. It can also mean, 'for example'.
56
Benefits of brands
1) a good brand name and effective packaging makes the product stand out from other products
2) good brand strategy helps to create and develop product; a good slogan can help this - e.g., Nike - 'Just do it.'
57
Stages of brand loyalty
1) Brand recognition
2) Brand preference
3) Brand insistence
58
Brand recognition
- consumer is aware of the name, benefit, and package
59
Brand preference
- brand is top of mind and considered a good alternative. Consumer will buy if available.
60
Brand insistence
- consumer buys on brand only. If brand is not available, the purchase is postponed.
61
Dove Video
- marketing sets standards
- perception of self is compared to others
- marketing is powerful
- psychology is a part of marketing
62
Product Life Cycle - companies will advertise differently in each stage of this cycle
- sales and profits
- product is introduced
- there is growth so put more business puts in more money
- product matures
- profits decline
63
How to extend the product life cycle
- attracts new markets
- alter the product
- add new products
- change marketing
64
Length of product lifestyle
1) instant bust - high expectations for product and not successful (no sales)
2) fad - short time period; 2-3 years then disappear for awhile
3) fashion - longer lasting, through different selling seasons
65
Product Adoption
1) Awareness - consumer learns about product
2) Interest - consumer receptive to message and information
3) Evaluation - consumer reviews product benefits
4) Trial - consumer makes initial purchase
5) Action - consumer satisfaction leads to more purchases
66
Marketers are...
...people who work in marketing; they lead the way for companies; they are experts; and they know psychology
67
Thomas...
...this is a lot of information to learn. I believe in you...you've got this!
~ Melissa
