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Marketing
Exam 1
67
Business
Undergraduate 3
10/28/2010

Additional Business Flashcards

 


 

Cards

Term
Marketing Strategy
Definition
A firms target market, marketing mix & method of obtaining a sustainable competitive edge
Term
Sustainable Competitive Advantage
Definition
something the firm does better than competitors
Term
STP
Definition
The process of segmentation, targeting, and positioning that firms use to identify and evaluate opportunities
Term
STP- Segmentation
Definition
The process of dividing markets into groups of costumers with different needs or characteristics
Term
STP- Segment
Definition
A group of consumers who respond similarly to marketing efforts
Term
Relative Market Share
Definition
A measure of the products strengths in a market, defined as the sales of the focal product by the sales of the achieved by the largest firm in the industry
Term
Market growth rate
Definition
the annual rate of growth of the specific market in which the products competes
Term
Market Penetration
Definition
Current market and current product to focus efforts on existing customers
Term
Marketing development
Definition
New market, current product, reaching new markets
Term
Product development
Definition
Current market, new product, offers a new product to same market
Term
Diversification
Definition
New market, New Product
Term
Macro-Environmental Factors
Definition
Culture, Demographics, Social, Technology, Economic, Political/Legal
Term
Culture
Definition
Shared beliefs, meanings, values, and customs of a group of people
Term
Demographics
Definition
Information about the characteristics of human population and segments
Term
Social Trends
Definition
trends that shape consumer values
Term
Social Trends
Definition
trends that shape consumer values
Term
Economic Factors
Definition
Economic situation, Inflation, Interest rates
Term
Universal Set
Definition
includes all possible choices for a product category
Term
Retrieval Set
Definition
Includes those brands or stores that the costumer can readily bring forth from memory
Term
Evoked set
Definition
Comprises the alternative brands or stores that the consumer states he or she would consider when making a purchase decision
Term
Determinant attributes
Definition
features that are important to the buyer and on which competing brands or stores are perceived to differ
Term
Compensatory decision rules
Definition
trading when characteristic to compensate for the bad one
Term
Non-compensatory decision
Definition
chooses based off the subset of its characteristics regardless of the values of its other attributes
Term
Decision Heuristics
Definition
mental shortcuts that help consumers narrow down chooses, example: brand, price
Term
Post-purchase dissonance
Definition
buyers remorse, questions appropriateness after purchase
Term
Word of Mouth/Negative
Definition
When a costumers spreads negative info
Term
Maslow's Hierarchy of Needs
Definition
Top: Self Actualization
Esteem
Love
Safety
Physiological
Term
Attitude 3 Components
Definition
Cognitive, affective, behavioral
Term
Lifestyles (psychographics)
Definition
how people spend their money and time
Term
Reference groups
Definition
one or more persons whom a person uses as a basis for comparison
1. Offer info
2. provide rewards
3. enhance a consumers self image
Term
involvement
Definition
consumers degree of interest in the product
Term
Examples of Decision heuristics
Definition
Price = wine, if it's more expensive, it must be good
Brand = if it's not brand Y, I won't buy it
Product presentation = Web site (amateur vs. professional), packaging, design
Term
Determinant attributes
Definition
features that the consumer feels are important AND on which s/he perceives competing brands to differ
Term
Companies target segments because
Definition
It enables companies to more closely meet needs and the desires of potential customers
It increases sales & profits
Term
Mass Marketing strategy
Definition
Treat it all as one
no need for separate strategies
Term
Differentiated segmentation
Definition
target several segments and designs programs for each segment
Term
Concentrated segmentation strategy
Definition
selecting one group and focusing all efforts
Term
One to One Strategy
Definition
mass customization, working one to one to make a product of service
Term
Geo-demographics
Definition
combination of demo and geo characteristics
Term
Benefit segmentation
Definition
grouping consumers on the basis of the benefits they derive from the products or services
Term
Loyality segmentation
Definition
investing in loyalty initiatives to retain the firms most profitable consumers
Term
VALS
Definition
VALS stands for Values, Attitudes, and Lifestyles
Term
what to consider with target markets
Definition
Market size
Expected growth
Competitive position
Cost of reaching the segment
Compatibility with your company’s objectives & resources
Term
Postitioning
Definition
makes it easier for the consumer to buy
Term
Position Sentence 1
Definition
For (target consumer),
who (state the need or the opportunity),
(your product) is a (fill in the product category)
that (state your key benefit, or the compelling reason customers will buy it)
Term
Position sentence 2
Definition
Unlike (name the primary competitive alternative),
(your product) (state your primary differentiation)
Term
The Consumer Decision Process
Definition
Need Recognition-> information search -> alternative evaluation -> purchase -> post-purchase
Term
Pre-purchase
Definition
Need recognition, information search, evaluate alternatives
Term
Post-purchase
Definition
satisfaction/dissonance, word of mouth or loyalty, disposal
Term
what kinds of risk are associated with purchasing?
Definition
performance, financial and psychological
Term
Extended Problem solving
Definition
when the customer perceives risk involved in the purchasing process
Term
Habitual decision making
Definition
buying something with little conscious effort
Term
how do costumers weigh alternatives
Definition
Term
How do consumers weigh alternatives?
Definition
Brands or Stores (retrieval and evoked set)
Evaluative criteria (determinant attributes)
Decision rules (Compensatory, Non-compensatory, decision heuristics)
Weigh internal and external information
decision
Term
STP Process
Definition
Strategy or objectives -> Describe segments -> evaluate segment attractiveness -> select target market -> identify and develop positioning strategy
Term
undifferentiated/mass marketing
Definition
consider everyone has a potential buyer
Term
concentrated segmentation
Definition
select a single target market to focus on
Term
Segmentation Descriptions
Definition
Geographic, demographic, psychographics, benefits, loyalty
Term
Criteria for segment attractiveness
Definition
substantial
reachable
responsive
profitable
identifiable
Term
Segment profitability
Definition
(Segment size X Segmement adoption % X Purchase Behavior X profit margin % ) - fixed costs
Term
Market Research Process
Definition
1.Define Objectives
2. Designing the research project
3. data collection
4. analyzing data
5.Presenting results
Term
Exploratory Research
Definition
Qualitative
Observation - actual behavior
In-depth interviews - conscious mind
Focus group
Projective
Term
Confirmatory Research
Definition
Quantitative
Survey
Experiments
Panel
Scanner (actual behavior)
Term
Advantages & Disadvantages to Secondary Research
Definition
Advantages
- saves time in collecting data
- reduces cost
Disadvantages
- May not be relative
- information may not be as timely as needed
- sources not original
Term
dvantages & Disadvantages to Primary Research
Definition
Advantages
- Specific to the to pic
- offers behavior insight
Disadvantages
- usually cost a lot
- longer to collect data
- more training
Term
Examples of Primary research
Definition
observed consumer behavior
interviews
surveys
Term
Examples of Secondary
Definition
census data
sales invoices
internet info
books
articles syndicated data
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