Shared Flashcard Set

Details

Marketing Test 2
Marketing Research, Segmenting, Targeting, and Positioning, Services Marketing, Mass Advertising, New Products and Services
40
Marketing
Undergraduate 2
02/16/2011

Additional Marketing Flashcards

 


 

Cards

Term
What is Marketing Research?
Definition
The process of defining a marketing problem, systematically collecting and analyzing information, and recommending actions. Goal: reduce risk, improve outcomes
Term
What are 5 steps in Marketing Research Process?
Definition
Define problem: what issue will the research address?
Develop research plan: What data do you need to address the research problem? Research plan must include an analysis plan
Collect relevant information: Pilot study, Final data collection leads to lock in the methodology and project
Analyze + present findings: Do not torture data until it produces desired results, follow analysis plan
Take action: Make action recommendations, implement recommendations, evaluate results
Term
What are 3 different research objectives? (Exp, Desc, Causal)
Definition
Exploratory: What are the issues involved?
Descriptive: How often does this occur?
Causal: How does changing one variable affect another variable?
Term
What is data? 2 Kinds of data? (Primary, secondary)
Definition
Factual information pertinent to problem. Primary: collected for project. Secondary: Already available.
Term
Newest kind of data? (Neuromarketing)
Definition
Measuring body’s reactions, brain, respiratory etc. to marketing stimuli, telling marketers what consumer reacts to.
Term
Quantitative / Qualitative data?
Definition
Quantitative: statistics, financial statements.
Qualitative: mechanical, personal methods, idea evaluation, social network, experiments, customer letters, research reports
Term
When to ‘lock-in’ methodology (when you start collecting data)?
Definition
Lock in methodology during Final Data Collection (after pilot study)
Term
What is the Analysis plan? Data is what it is.
Definition
Decision to treat the data in a specific way to show a certain effect, decided upon before data is collected. Step 4: Only present findings in the context of that particular study. Graphs > table. Do not drown with math.
Term
When evaluating decision, distinguish outcome (whether it worked or not) from decision process followed.
Definition
Make sure the decision aligns with research. Evaluate the decision.
Term
Definition of segmentation, targeting, and positioning.
Definition
Segmentation: aggregating prospective buyers into groups (segments)
Targeting: selecting one of these groups (segments) as the focus of marketing actions.
Positioning: The image of the offering in the target’s mind, relative to competition
Term
Mobil’s 5 customer segments. Segment everything, including commodities like gasoline.
Definition
Road Warriors (16%): Premium products, quality service. Higher income.
True Blues (16%): branded products, reliable service. Loyal to a brand.
Generation F3 (27%): fast fuel, fast service, fast food. Under 25, on the go.
Home bodies (21%): convenience. Housewives.
Price Shoppers (20%): low price. No loyalty.
Term
Segment size can vary from mass segments to even individual segments (customerization)
Definition
Mass market, niche, micro marketing, the individual.
Standardized marketing mix, niche, micro-marketing, personalization.
Term
What are homogenous, diffused, and clustered preferences?
Definition
Homogenous: everyone has 1 preference.
Diffused: very spread out preferences.
Clustered: many separate preferences.
Term
What are 4 segmentation bases? What is a basis?
Definition
Psychographics: Grouping customers based on their psychological profile. Powerful, but harder to see. Able to predict how people will react to presented stimula
Geographic: location variables
Demographic: Age, life stage, gender, income, generation, social class.
Behavior Roles: People buy things in a group: Initiator, Influencer, Decider, Buyer, User. Behavioral Variables: Occasions, Benefits, User Status, Usage rate, Buyer readiness, loyalty status, attitude
Term
What is a psychographic?
Definition
Psychographics: Grouping customers based on their psychological profile. Powerful, but harder to see. Able to predict how people will react to presented stimula
Term
How to assess a segmentation scheme (MADS criteria)?
Definition
Measurable: the size, purchasing power, and characteristics of the segment can be measured.
Accessible / Actionable: They are reachable with an appropriate marketing mix.
Differentiable: distinguishable, will respond differently to different marketing mix.
Substantial: large enough segment to be profitable.
Term
What is a perceptual map? How is it used?
Definition
A marketing tool used to illustrate the customer’s mind with regards to brands.
Term
Repositioning based on perceptual mapping (got milk)?
Definition
Perceptual map has 2 categories and 2 poles, change marketing mix to move to different category.
Term
What are the 2 steps in the (re)positioning process?
Definition
Establish Category: announce category benefits, compare to exemplars, rely on descriptor Choose: POP or POD
Term
What are POP’s? POD’s?
Definition
Points of Parity: Attributes of offering shared with other brands
Points of difference: Attributes or benefits that are truly unique to the brand, positively evaluated, and not found to a significant degree in competitors
Term
What are 2 criteria of good POD’s? (Differentiators)
Definition
Deliverable, Desirable
Term
Be careful with incongruous differentiators (what are these)?
Definition
Product characteristics that tend to clash: low price vs high quality, good taste vs. low calories, nutritious vs. good taste, efficacious vs mild, powerful vs safe, strong vs refined, ubiquitous vs exclusive, varied vs simple
Term
What are services?
Definition
Deeds, performances, or processes...
Economic activities whose output is not a physical product or construction, is generally consumed at the time it is produced, and provides added value in forms that are essentially intangible...
Application of knowledge and skills through deeds, performances, and processes for the benefit of another entity
Term
Why is it important to study services? (2 reasons)
Definition
Services dominate US and worldwide economics.
Services have higher profit margins than manufacturing or packaged goods, and lead to customer retention and loyalty.
Term
Current ‘state of services’? (hint: bad)
Definition
We don’t know how to manage service businesses because services are different
Term
What are 4 features that make services different from goods? (IHSP)
Definition
Intangibility, Heterogeneity, simultaneity, perishability
Term
What are each of the 4 IHSP variables, and what are the implications for services marketers?
Definition
Intangible: cannot be readily displayed or communicated. Cannot be patented. Pricing is difficult.
Heterogeneity: Service quality depends on many uncontrollable factors, no way to ensure that service delivered matches plans and what was promoted (service providers must be reactive and adaptive)
Simultaneity: service production occurs at same time as consumption. Occurs if customers participate and affect transaction, employees affect service outcome, customers affect other customers.
Perishability: services cannot be saved, stored, resold, or returned. Therefore, difficult to synchronize supply and demand.
Term
What are the additional 3 P’s in the services marketing mix?
Definition
People: front line service provider, customer co-production, other customers, alliance partners.
Processes: procedures outlined.
Physical Evidence: Environment in which service is delivered. Any tangible components that facilitate performance of the service.
Term
What are search experience and credence attributes?
Definition
Experience Qualities: attributes a consumer can determine only after purchasing the service
Credence Qualities: characteristics that are difficult to evaluate even after purchase and consumption.
Term
Risk and Uncertainty in services marketing?
Definition
Uncertainty: having limited knowledge about the outcomes, and thus unable to evaluate the service.
Risk: the possibility that the outcomes are undesirable.
Term
Questions to ask in evaluating whether an ad is effective?
Definition
Who is target? What are they trying to accomplish? How well are brand identity and positioning being communicated?
Term
What is the Hierarchy of Effects, generally, how do the different types of MarComm affect the Hierarchy?
Issues in message timing?
Definition
Unawareness, awareness, beliefs / knowledge, attitude, purchase intention, purchase. Message must reach the right customers at the right time with sufficient frequency.
Mass advertising, sponsorship, publicity for unawareness - awareness
Advertising, website, point of purchase for belief/knowledge - attitude
Personal selling, direct marketing for purchase intention - purchase
Term
3 principles to follow in designing effective ads?
Definition
Message source credibility & likeability, tangible benefits, transformational communication
Term
Commentary on the state of mass marketing communication?
Definition
5000 marketing messages per day, 80% feel inundated by marketing, 45% think marketing detracts from experience of everyday life, 61% marketing / ads are out of control, 70% tune out ads
Term
Different types of new product offerings, but truly new products are rare
Definition
New product line: market exists, company is entering for the first tiem.
Additions to product line: new sizes, flavoring, types.
Improve / revise existing product
Repositioning: new target segment
Cost reduction: same performance at lower cost
Term
Customer adoption of innovations and different patterns of adoption
Definition
Style: Up, then sin curve
Fashion: Up, reaches smooth max, dies
Fad: Sharp up, sharp down
Term
Brand extensions and line extensions?
Definition
Brand Extension: A parent uses their brand to introduce a new product
Line Extension: Existing product with new twist or addition
Term
Different ways of thinking about ‘newness’?
Definition
Structural vs. functional
Legal - 6 months ‘regular distribution’
Organizational perspective
Customer perspective: learn new behaviors- continuous: no new behaviors; discontinuous: must learn new behaviors
Term
Why do new product and service introductions often fail?
Definition
PoDs are not desirable, PoDs are not deliverable
Term
Some challenges of converting products into services?
Definition
Inadequate segment analysis: segment size inadequate, doing market analysis instead, no access to segment (entry barriers)
Lack of integration, inadequate investment, immature product, marketing incompetence
Supporting users have an ad free experience!