TWO Flashcards
What does Consumer behavior theory illustrate ?
Shape consumption-related behaviors
Determine the value associated with consumption
Describe Value?
- Personal assessment of the net worth obtained from an activity
- Captures how much gratification a consumer receives from consumption
Types: Utilitarian & Hedonic
What is Utilitarian Value?
Gratification derived because something helps a consumer solve a problem or accomplish some tasks
Consumers provide a rational explanation for their purchases
Value is provided because the object or activity allows something good to happen or be accomplished
What is Hedonic Value?
Value derived from immediate gratification that comes from some activity
Value is provided by the actual experience and emotions associated with consumption
The Marketing strategy is a Way a company goes about….?
Way a company goes about creating value for customers.
Provides an effective way of dealing with competition and technological obsolescence
Firms failing to realize how their products provide value, develop marketing myopia. What is Marketing myopia?
condition where a company views itself in a product business rather than in a value- or benefits-producing business
What is corporate strategy?
Way a firm is defined and sets its general goals
Associated with specific corporate culture
Provides an operating orientation for the company
What is Operational Management and marketing tactics?
Deals with implementation of strategies
Way by which marketing management is implemented
Involve price, promotion, product, and distribution decisions
What is Marketing Mix?
Combination of product, pricing, promotion, and distribution strategies used to implement a marketing strategy
What is a target market?
Identified segment or segments of a market that a company serves
What is Market Segmentation?
Separation of a market into groups based on the different demand curves associated with each group
Requires marketing researcher’s to identify segments and describe its members
What is product differentiation?
Consumers do not view all competing products as identical to one another
What are perceptual maps and how does analyzing markets with perceptual maps help?
Graphical depiction of the positioning of competing products
Standard marketing tool
Helps identify competitors and opportunities for doing more business
Diagnoses potential problems in the marketing mix
Used in every competitive industry, including in the nonprofit sector
What is Customer Lifetime Value? or CLV?
Approximate worth of a customer to a company in economic terms
Overall profitability of an individual consumer
Equal to the net present value (npv) of the stream of profits over a customer’s lifetime, plus the worth attributed to the equity
