Marketing/Management Exam 1

4Ps

product, price, place, promotion

STP

segmentation, targeting, positioning

5Cs

customers, competition, company, collaborators, context

marketing

The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

exchange

activity in which two or more parties give something of value to each other to satisfy perceived needs

kinds of purchases

Can be classified as low, medium and

high levels of customer involvement.

purchase process

prepurchase, purchase, postpurchase

perception

how consumers perceive their environment

sensation

how consumers sense their environment

attitudes

A relatively global and enduring evaluation of an object, issue, person, or action.

learning, memory

The process of how an association gets

past the sensory and perception stages

into short term and long term memory.

motivation

An inner state of arousal that provides

the energy to achieve a goal.

decision making

making a selection among options or courses of action

emotional

A strong feeling (such as love, anger,

joy, hate, or fear). Marketers target

emotions to elicit a positive response.

demographic

Division of an overall market into

homogeneous groups based on

variables such as gender, age, income,

occupation, education, sexual

orientation, household size, and stage

in the family lifecycle; also called

socioeconomic segmentation.

geographic

division of an overall market into homogeneous groups based on their locations

market segment

division of the total market into smaller, relatively homogeneous groups

cultural differences

The differences between expected

behaviors, norms, and ideas that

differentiate different groups of people.

B2B

segmentation specific to business markets

behavioral segment

division of a population into groups having similar behaviors

Physchological

Division of a population into groups

having similar attitudes, values, and

lifestyles.

targeting

Specific group of people a firm believes

is most likely to buy its goods and

services.

SWOT analysis

Review that helps planners compare

internal organizational strengths and

weaknesses with external opportunities

and threats.

Positioning

Placing a product at a certain point or

location within a market in the minds

of prospective buyers.

product orientation

build a better product

sales orientation

convince customers to buy

customer orientation

identify customer needs first

Customer

current and potential customers

company

strengtths and weaknesses

context

economy, laws, technology, societylaw,

collaborators

suppliers, distributors, partners

competitors

rival firms

Segmentation

group customers with similar needs

Targeting

choose the segment to pursue

Positioning

communicate benefits to target market

Product

what is sold

Price

what customer pays

Place

distribution channels

Promotion

communication and advertising

Pre-purchase

recognize need, search for information, create consideration set

purchase

narrow choices, select channel, buy or delay purchase

post-purchase

evaluate satisfaction, determine repeat purchase and word-of-mouth behavior.

consideration set

The group of brands a customer seriously considers purchasing.

convenience

low involvement, frequent purchases

shopping

medium involvement, comparison shopping

specialty

high involvement, expensive, infrequent purchases

straight rebuy

buy same thing again

modified rebuy

change something about prior purchase

new buy

completely new purchase

low-involvement purchases

More price sensitive, use discounts, extensive distribution, little word of mouth.

high-involvement purchases

Less price sensitive, more information search, selective distribution, greater word of mouth.

subliminal advertising

has been largely debunked by research

mere exposure effect

Repeated exposure creates familiarity and positive feelings.

classical conditioning

Associating a stimulus with a response (Pavlov's dogs, jingles).

operant conditioning

Behavior is reinforced by rewards.

Non-compensatory

missing a key attribute eliminates a brand

Lexicographic

compare most important attribute first

Compensatory

one strong attribute can offset a weak one

80/20 Rule

80% of sales often come from 20% of customers.

customer retention

It costs approximately six times more to acquire a new customer than retain an existing one.

Behavioral Segmentation Facts

Behaviors are easier to observe than attitudes and often provide stronger marketing insights.

VALS System

Ideals, Achievement, and Self-Expression

Evaluating Segments

Good segments should be Identifiable, Accessible, Profitable, Actionable, and Compatible with

company goals

Mass Marketing

Mass Marketing treats all customers the same

One-to-One Marketing

One-to-One Marketing treats each customer as their

own segment.

Market Segment

A market segment is a group of customers who share similar inclinations toward a brand or product.

Segmentation

Segmentation is the process of breaking a market into smaller, homogeneous groups of consumers

who share similar needs, preferences, or behaviors.

perceptual maps

Perceptual maps show customer perceptions of brands relative to competitors, often using price

and quality dimensions.

positioning statement

A positioning statement clearly defines a brand’s place in the market.

positioning matrix

Shows relationships between price, quality, promotion, and distribution.