Shared Flashcard Set

Details

Marketing Final
Cumulative marketing exam
31
Marketing
Graduate
05/12/2010

Additional Marketing Flashcards

 


 

Cards

Term

 

 

 

Positioning

Definition

The process that marketers make their product different such that:

  1. It is unique in customers minds
  2.  That uniqueness is relevant to customers in some way that makes them prefer the product.
Term

 

 

 

4 P's of marketing

Definition

Product:brand, quality, size, service

Price:credit terms, discount, strategy

Place:Transportation, location, distribution

Promotion:advertisingstrategy (push/pull), public relations communication.

Term

 

 

 

BCG Matrix

Definition

Used to determine priorites that should be given in product portfolio.  The bigger the market share a product has or the faster the products market growth the better it is for the company.

[image]

Term

 

 

 

Segmentation

Definition

Identifying a group of customers who share similar set of needs and wants.

ex. among car buyers: safety conscious, green, speed, power.

Term

 

 

 

Targeting

Definition

Need based market segmentation approach.

  1. Group customers based on similar needs.
  2. Determine demographics.
  3. Determine profitability.
Term

How will new technology trends affect marketers?

Definition

Innovation - changes what people can/will buy.

Cell phone/internet marketing

tracking purchasing trends

twitter - immediate results.

Term
What is the difference between a behavioral and an attitudinal definition of Loyalty?
Definition

Behavioral - Historical: buy-->therefore loyal

Attitudinal - Future intentions.  Attracted to the image of the brand.  -->more loyal to price than brand.

Term
In what types of marketing situations is the concept of "lifetime value of a customer" most applicable?
Definition
  1. contractual i.e. cell phone contracts and
  2. retention situations i.e. Magazine subscriptions and car insurance
  3. Both deal with lost for good customer mentality.
Term
What are the main goals of establishing a CRM system?
Definition

  1. find, attract and win new customers.
  2. nurture and retain current customers.
  3. entice former customers to come back.
  4. reduce costs of marketing and customer service.

Term

What is a means-end chain model of consumer meaning?

Definition

Relates product-->benefit-->personal value.

identifies concrete, abstract, functional, psychosocial, instrumental and terminal.

Ex. Mouthwash:

Kills germs (concrete),

Better breathe (functional),

Increase confidence (psychosocial), perform better(instrumental)

more self esteem (terminal)

Term
In business to business marketing, what is a "lost for good" customer?
Definition

Business or consumers that transact with one supplier of a good at a time and are resistant to change because of high switching costs or other reasons.

If they leave, they are "lost for good".

 

Term

What are the main differences between consumer and B2B markets?

Definition

Who you sell to, order type/size, payment, method of connecting, relationship.

B2C: Individual, single purchases, credit cards, storefront, short term relationship.

B2B: Businesses, repeat orders, line of credit-->open orders, longer term relationships.

Term
What are the differences in promotion strategies between B2B's and consumer markets?
Definition

B2B: Normally small, focused target market, B2B features multistep buying process and longer sales cycle.  Businesses may use training custom development to promote their business.

B2C: Large target market, single step buying process & shorter sales cycle.  Focus on merchandising & point of buying activities i.e. coupons, displays & storefronts.

Term

What is a push strategy?

Pull strategy?

Definition

Push: attempt to create consumer demand for a product.

Pull: production responds to demand.  customers order the product, producers respond.  "Dell" or People waiting on line for the iPhone.

Term
What is marketing?
Definition

"identifying and satisfying consumer/business needs"

 

Term
The trade offs between Primary/Secondary data - 
Definition

Primary: research that's tailored to a company's particular needs.  Focus groups, surveys, field tests, interviews or observations are used to gain information about your target market.  Information delivered is more specific, but also much more expensive and time consuming.

Secondary: Data based on information gleamed from studies previously performed by the government, chambers of commerce, trade associations, etc.

2ndary data is faster and much cheaper, BUT: is not always avail for your topic, may be biased(often), may not be up to date.

Term
Market research terms: Mystery shoppers, focus groups, IDIs focus facility, Mystery shoppers.
Definition

Mystery shoppers: market researchers act like patrons & execute specific tasks such as a purchase complaint or returning item.  Report feedback to mgmt.


Focus groups: Group asked about their perceptions, opinions, beliefs 7 attitudes toward a product, service, concept, advertisement, etc.

 

IDI's Focus Facilityin depth interview facility, one on one.

Term
What is the "nice-to-know" syndrome in market research?
Definition

Asking questions that are not targeted enough to be actionable.

Aside from exploratory research, it should be conducted with a specific idea in mind about how the data will be used.

Term
What are the tradeoffs between using phone/internet/mail/door to door surveys?
Definition

Mail: Advan cheap--> especially for large samples. Can include pictures and longer questions.

Disadvant: some not returned, hard to follow-up

Internet: Advan: Quick, inexpensive, large sample, no human influence

Disadvan: ID verification/ tech difficulties

Phone: Advan: better response to open ended questions.  control over question order/presentation.

Disadvan. Expensive (salaries)

door to Door: Advant: better response to open ended questions.  Control over order of questions.

Disadvant: reluctance or sensitive topes.  Not trusting of strangers.  Expensive.

Term
How to select a target market.
Definition

Target market: the particular segment of a total population on which the retailers focuses its merchandising expertise to satisfy that submarket in order to accomplish its profits.

Look at segment: size, how fast its growing, level of competition amongst existing firms, existing loyalty in the segment.
Look at potential level of marketshare expected to obtain, total sales potential of the segment.
A firm that is seeking to enter a market and grow should 1st target the most attrative segment that matches its capabilities.

Term
5 Step appraisal process of evaluating the viability of a market segment.
Definition

The market must be identifiable and measurable.  How big is market?  MPR's

The market must be big enough to be profitable. ex. tricycle for children 7 feet tall.

The market must be reachable.  Marketers must be able to communicate effeciently and effectively with target.

Segment must be responsive to your offers and wiling and able to purchase product.

The segment should be stable.

Term
Benefits and drawbacks of different segmentation approaches
Definition

Demographic: personal characteristics such as age, gender, income, lifestage, education. 

Pros: most popular bc usually match consumers wants &/Or needs.  Easy to measure and obtain.

Cons: not usable where consumers deciding factor is price.  Also, same demographic group can have different psychographic profile.

Psycho-graphic: based on traits, attitude, interest, lifestyle

Pros - great understanding of customer.

Con - Not always tangible

Geographic:Based on Where people live. ex. neighborhoods, cities, states, urban, rural, climate

Pro - should be only one language, tailor product to people likening (race, religion)

Con - Not eveyone in same area have same taste or respond the same.

Behavioral - based on actual customer behavior toward product: ex. brand loyalty, user status, occasions.

Pro - Tangible, because historical, only purchased product --> loyal.

Con: costly and time consuming.

Term
How to specify a positioning using a means-end perspective.
Definition

Positioning: the way that markets make their product different such that: it is unique in customers mind and that uniqueness is relevant to customers in some way that makes them prefer the product.

means-end model - consumers create linked meanings that connect tangible product attributes to more abstract attributes and consequences.  Which in turn are associated with more subjective, self relevant values and goals. 

Together, positioning using a means end perspective would focus on making a product different in a customers mind based on the customers values or emotional benefits.  

Class ex. iPhone based on emotional benefits, such as: social acceptance at Baruch and feelings of efficiency and fun during usage. 

Term
Strategic implications for different stages of product life cycle
Definition

Introduction, Growth, maturity and decline.

Introduction: costs high, slow sales, little or no competition

Growth: cost reduced due to economies of scale

Mature: cost lowered b/c production volume.

Saturation/Decline: cost become counter, sales volume declines, profitability deminishes.

Strategic implications: Products have a finite life.  During that life, they pass through a series of different stages, each of which posses different challenges to the seller.  Virtually all elements of the organizations strategy need to change as the product moves from one stage to the next.  The profit potential of products varies considerably from one stage to another.  

Term

 

 

Schumpeter's theory of creative destructionism.

Definition

The economist believed that new products kill older products.  Ex. Invention of automobiles destorys the horse and buggy market.  Personal computers destroyed typewritter market.

Theory can be intertwined with the lifecycle of a product.

Ex. music.

8 tracks are up when cassettes invented.

8 tracks go down and cassestes up as CD's are invented.

Cassettes go down and CD's go up as MP3's are invented.

etc.

-->new products stay at the maturity phase until a newer(better) product moves it to its last phase - acted upon.

Term
General idea of models of technological substitution.  
Definition

The technology substitution  model was designed to analyze the penetration process of new generation technologies replacing old ones.  It expanded to include more than two generations and the process amount various entities in the market.  

 

Technology substitution: how fast one technology replaces another.

Term
The act of representing ones product so it will occupy a distinct place in the consumers mind even if it does not influence their preferences is known as 
Definition

e. none of the above

NOT POSITIONING!

Term
Which of the following is not true 
Definition

High quality secondary data can usually be found to fit the problem if you are willing to pay for it.


Not: secondary data were collected for a purpose other than the one at hand 

OR

Secondary data are found in both internal and external data sources 

OR

Secondary data may be gathered quickly.

Term
In which of the following cases is lifetime value of a customer most relevant
Definition

A - Mobile phone service

NOT

Online book sales

Automobile sales

Pizza sales

They are all equal.

Supporting users have an ad free experience!