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Marketing- hgilbert
Comm 131
| Question | Answer |
|---|---|
| Consumer behaviour | Buying behaviour of consumers (individuals) who buy goods and services for their own use and consumption |
| Consumer Market | Individuals in a particular geographic region who are old enough to have their own money and know how to spend it |
| Model of consumer buyer behaviour: marketing stimuli, buyer's black box, buyer responses | marketing - product, price, promotion, place other - economic, technological, social, cultural buyer's characteristics, buyer's decision process buying attitudes/preferences/purchase behaviour/brand company relationship behaviour |
| Culture and sub factors (influence consumer behaviour) | culture: set of basic wants, values, perceptions learned by member of society from family and other important institutions subculture (group of people with same values/shared life experiences) social class (society based on income/occupation/standing |
| Social and sub factors (influence consumer behaviour) | reference groups, family, roles and status *** family is most important - socialization |
| Personal and sub factors (influence consumer behaviour) | age/life cycle stage, occupation, economic situation, lifestyle, personality and self concept (big 5 personality factors) |
| Psychological (influence consumer bahaviour) | beliefs, learning, attitudes, motivation, perception, identity (who are they? mother, runner..) |
| Maslow's hierarchy of needs | 1) physiological needs (hunger/thirst) 2) safety needs (protection) 3) social needs (belonging and love) 4) esteem needs (self esteem and recognition) 5) self actualization (self development/realization) |
| Belief vs. attitude | descriptive thought person holds about something vs. consistant evaluation of or feeling towards object or idea |
| Consumer buying decision process | need recognition - info search - evaluation of alternatives - purchase decision - post purchase behaviour |
| Categories for adaptation of technology | innovators, early adapters, early majority, late majority, laggards |
| Influences on business buyer behaviour | environmental (PESTG) organizational (objectives/policies) interpersonal (authority status empathy) individual (age needs job position) |
| Segmentation | dividing a market into distinct groups with specific needs, characteristics, behaviours, that may require different marketing mixes, based on value |
| Targeting | process of evaluating each market segments attractiveness and selecting one or more to enter (profitably satisfy the segment) |
| Differentiation | differentiating to create superior customer value |
| Positioning | arranging for a market to occupy a clear, distinctive and desirable place in the market relative to competing products in the minds of target consumers (develop positioning and marketing mix for each segment |
| Why segment? | -better satisfy by tailoring to specific needs - such products are valuable - can't satisfy everything |
| Why not satisfy everything? | some needs aren't compatible, consumer perception and recollection (general vs specific) |
| 4 common ways to segment | geographical (region/city), demographic (age gender), psychographic (lifestyle and personality), behavioural (benefits sought, usage rate/status, loyalty status) |
| A good segment is... | measurable, accesible, differentiable, actionable (can develop programs), substantial |
| Levels of segmentation | mass marketing (all) segment marketing (2) niche marketing (4) micro marketing (a lot) |
| SEGMENTATION GRID KEY ELEMENTS | Segment name, primary need, age, gender, usage, etc... |
| Targeting: evaluating segments | 1) revenue of segment (size/growth potential) 2) cost of entering (4ps) |
| Positioning involves creating what associations? | psychological - what, how many, how do we create those associations |
| Unique Selling Proposition | focusing on one attribute and promoting itself as being the best benefit |
| Multiple selling proposition | choosing a number of attributes and promoting them all - value proposition |
| Perceptual Map | shows consumers perceptions of their brands versus competing products |
| Positioning Statement | To (target segment and need) our (brand) is (concept) that (point-of-difference) |
| Product | Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or a need. It could take in any one of the following forms. |
| Goods vs. Services | services - not tangible, variability (quality can vary depending on who does it), cannot be stored, cannot be separated from their "owner" |
| Levels of Product | Core benefit, actual product (packaging, brand name, quality, features) augmented product (after sale service, installation warranty... |
| Types of products (4) | convenience (minimal effort, cheap), shopping (fewer outlets, higher priced), speciality (high price, exclusive, effort), unsought (little awareness, pricing varies, aggressive advertising) |
| Individual product | attributes (style, features) branding, packaging, labelling, product support |
| Product line | closely related, function in similar manner, sold to same customer groups, same price ranges |
| Product Mix - Width - Depth - Consistency | All product lines/items that seller offers for sale, width= #product lines, depth = # versions offered in each product line, consistency = how closely related the various lines are |
| Product life cycle (5 stages) | product development (neg. profits), introduction, growth, maturity, decline |
| What is a brand? | A name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products. Used for positioning |
| BRANDS - 3 KEY NOTES | symbolize who we are, incorporated into identity, loved, social norms, brands possess personality traits |
| Value of brand | brand is more valuable than the totality of its assets |
| Brand Equity | extent to which customers are willing to pay more, positive differential effect, known customer response |
| What makes a brand strong? | customer needs are focused, centred on needs, stays relevant, consistent... overall managed well |
| Goals of a brand | memorable, positive attitude, specific associations - positioning strategy |
| 3 levels of brand positioning | product attributes (easy to copy) benefits (associates name with benefit) beliefs and values (taps into emotions) |
| Manufacturer brands | national brands, share the same name as the manufacturer |
| Private (store brands) | brands established by retailers, manufactured by one company but branded by another |
| Licensed brands | selling the right to apply a brand name, logo, or image to manufactured product |
| Co branding | using two brand names on one product (crest with scope) |
| Brand Development | line extension (existing brand and product) brand extension (new product old brand) multi brand (old product new brand) new brands (new product new brand) |
| Trademark | exclusive right to use a brand or part of a brand (prohibited use without permission) |
| Advertising | form of communication from the marketer to customer (persuade, maintain relationships, promises, entertain - ULTIMATE GOAL = SALES |
| 1/3RD Principle | 1- account planning (goals/brand values/audience profile) 2 - creative strategy (tone and manner) 3- media planning (media choices/metrics/scheduling) |
| Major Advertising Decisions | objectives settings, budget decisions, message decisions, media decisions, campaign evaluation |
| Purpose for advertising | inform, compare, persuade, remind, call to action |
| Setting Budget: factors | stage in product life cycle, level of competition, ad clutter, degree of brand differentiation (methods - affordable, percentage of sales..) |
| Advertising response function | underspending/sweet spot/ overspending function of sales and dollars spent on advertising |
| ACM Model | attention, comprehension, memorable |
| Slice of Life | typical people using product in normal setting |
| Lifestyle | shows how product fits with particular lifestyle |
| fantasy | create a fantasy around the product or its use |
| Mood or image | builds mood or image around the product (ie love, beauty, serenity) |
| Testimonial evidence or endorsement | Highly believable or likeable source endorsing the product |
| Musical | someone singing about product |
| Personality symbol | creates a character that represents the product |
| Technical expertise | shows the company's expertise in making the product |
| Scientific Evidence | presents scientific evidence that the brand is better or better liked than another brand |
| Advertising effects | Heart and Mind (rational emotional experiential, brands benefits and values/emotional bond) pocket effects (drive consumer to point of sale) improve financial performance of brand |
| Message evaluation process | understandable, convincing and easy to remember |
| High Motivation | central processing * customers are highly motivated by the factual information of the ad, quality of central arguments in the ad |
| Low Motivation | Peripheral processing * consumer more infleunced by peripheral cues in the ad, unconscious processing that bypasses thoughtful evaluation of ad content |
| Price | amount of money charged for a product or service - seller: revenue, consumer: cost of something |
| Price and the Marketing Mix | only element to produce revenues, most flexible element, can be changed quickly |
| Cost based pricing | standard markup, ignores demand and competition, popular because simple, prices are similar, fair to buyers and sellers, |
| Price Floor | lowest possible price |
| Price ceiling | highest possible price |
| Cost plus pricing | cost is made of of variable and fixed cost per unit, adds a markup to the cost |
| Breakeven pricing | price at which company breaks even on the product |
| Target profit pricing | calculates breakeven price then adds desired profit. |
| Value Based Pricing | buyer's perceptions of value rather than seller's costs to set price, measuring perceived value can be difficult |
| Everyday low pricing | pricing strategy that charges comparatively low prices all the time with few sales (wal mart) |
| Competition based | pricing based of competitors pricing, going rate, same level, below or above |
| Market Skimming Prices | high initial price for new product to skim market, high layer o revenues, few but more profitable sales, costs of volume are not so high, competitors cannot enter market easily, no undercutting of low price, ex stereos mp3 |
| Market Penetration Pricing | low initial price to penetrate market (ie display) attract large number of buyers quickly and win a large market share, highly price sensitive, must keep out compeition, or effects are only temporary |
| Prestige Pricing | Unlike to set prices for luxury products, unlike skimming strategy high prices in the beginnibg renain as hey were |
| Segmented Pricing | Different prices for the same good or service ie airline tickets |
| Psychological Pricing | High Price = high quality, reference points, ending with a .99, odd even pricing |
| Price Changes: Price Cuts/Price increases | Cuts: excess capacity, falling market share, wants to be a market share leader. Increase: increased profit, faces inflation, faces greater demand than supply |
| Pricing Objectives | Survival, current profit maximization, market share leadership, product quality leadership, partial or full cost recovery for non profit organization, social pricing. |
| External: Types of markets | pure competition, monopolistic, oligopolistic competition, pure monopoly (demand curve, price elasticity) |
| Competitors Pricing | consider impact of online comparisons, consider competition when setting price, pricing strategy influences the nature of competition, price matching "we will not be undersold" |
| External: Environmental Factors | government, social considerations, reseller reactions, economic conditions that influence buyer perceptions of price and value |
| Distribution Channel | Set of interdependent organizations involved in the process of making a product or service available for use or consumption by consumer or business user. |
| What flows through distribution channel? | Customer Relations, transactions, information, products, channel functions |
| Direct Channel | no intermediaries - manufacturer to consumer |
| Indirect channel | one or more intermediaries - manufacturer - wholesaler - retailer - consumer |
| Advantages of intermediaries | lower number of contacts, less chances to mess up, efficiency, specialization, create value, competitive advantage |
| Intensive Distribution | many outlets, less market control, convenience goods, purchased frequently |
| Selective Distribution | Several outlets, balanced market coverage and control, shopping and some speciality goods, several visits |
| Exclusive Distribution | few outlets, limited coverage but great market control, speciality goods, industrial equipment, willing to travel and high service |
| Vertical Conflict | manufacturer to retailer problems/mis communication |
| Horizontal Conflict | retailer to retailer disagree on roles, activities etc. |
| Marketing Communications mix | blend of ads, sales promo, personal selling and direct marketing company uses to pursue its ad/marketing objectives |
| Integrated Marketing Communications | approach under which a company carefully integrates/ coordinates its many communications channels to deliver a clear consistent and compelling message about the organization and its products |
| Push Strategy | Promotion strategy that calls for using the sales force and trade promotion to push the product through the channels |
| Pull Strategy | Promo Strategy that calls for using ads and consumer promotion to build customer demand |
| Media Vehicle | specific newspaper, magazine, television program, radio station, or website that will carry ad message |
| POP Promotion | point of purchase displays or promotions that take place where you would buy the object/service |
| Product development process | idea generation, idea screening, concept development, marketing strategy development, business analysis, product development, test marketing, commercialization |
| NPD | new product development |
| Morphological Analysis | builds on attributes to improve product - ie. physical (colour weight shape odor) psychological (appearence symbolism) functional (uses applications how it does stuff) misc. (cost rep origin class definition) |
| Style Product life cycle | stays in growth/mature stage over long period of time, stable flucuations |
| Fashion | arc shaped, peaks over time to decline |
| Fad | very fast introduction, sharp peak, steep and fast decline |
| Personal Selling | custom made product, expensive, technically complex, few customers, concentrated, high value |
| Direct Marketing | Direct connections with carefully targeted individual consumers to obtain an immediate response and cultivate lasting customer relationships. |
| Media Fragmentation | Specialty channels, magazine proliferation, events, sponsorships, buzz – scattering of audiences |
| Marketing Myopia | mistake of focusing too much on product and not enough on customer wants and needs |
| Segmentation Grid | Segment / Need / Age / Gender / Occupation etc.. usage rate / usage type |
| Cognative Dissonance | buyer discomfort caused by post purchase conflict, affects major purchases, consumer follow up programs designed to reduce this problem |
| Segmentation Factors | Demographic, psychographic, behavioural, geographic |
| Needs Based Segmentation (benefits) | idea that consumers should be segmented based on their needs. labels/bases (light snackers, healthy eaters..) with their descriptors (ie usage rate, loyalty...) demographic, psychographicq |
| Cannibalization | targeting two very similar segments (ie Gap Old Navy and Banana Republic) |
| Evaluation of Segments - must consider | revenue potential and cost of entering segment |
Created by:
hayleygilbert77
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