Marketing Management Final Exam

Information for the McCombs MSM Marketing Management Final Exam

5 Cs

Company, Customers, Competition, Context, Collaborators

STP

Segmenting, Targeting, Positioning

4 Ps

Product, Price, Place, Promotion

Consumer Decision Making Process

Needs Trigger, Information Search, Information Processing and Evaluation, Purchase Decision, Post Purchase Evaluation

Marketing is all about…

facilitating an exchange: understanding value, creating value, extracting value

Anchoring and Adjustment Heuristic

Initial value, even if irrelevant, has a strong influence on decision: how people make estimates, how people assign value, how people decide appropriate quantity

Availability Heurisitc

Ease with which you can bring something to mind, which makes it seem more common or likely in turn

Representativeness Heuristic

Estimates the probability or liklihood of class membership

False Consensus Effect

False belief that others are more like you than they actually are

Attribute Substitution

The target attribute is difficult to access, so a different, yet associated attribute, is accessible, and is substituted

Confirmation Bias

Tendency to seek out information that confirms a hypothesis without considering the other side or ignoring information contrary to the hypothesis

Ward’s Method Agglomeration

The distance between two clusters is equal to the sum of squares between the two clusters summed over all variables

Hierarchical Clustering

start with each object as its own cluster and build based on agglomeration

K-Means Agglomeration

Start with the desired number of clusters and random assign then reassign

Bases of Segmentation

WHO: who are the customers, WHAT: what have the customers done, WHY: why do the customers make the decisions they do

Segmentation Benefits to the Consumer

Tailored products and services, Relevant marketing offers, Personalized experience, Convenience and time savings

Segmentation Benefits to the Firm

Finding market opportunities, Responding to customer heterogeneity, Improved resource allocation, Increased marketing efficiency

3 Bs of Market

Bodies: market specified, Behaviors: purchase tendencies, Bucks: price less costs

Why Does Retention Lead to Profits

No acquisition costs, referrals, reduced cost to service customer, increased purchases: frequency, quantity, upselling, cross-selling, decreased price sensitivity

Customer Lifetime Value Depends On

Acquisition costs, retention rates, discount rate

Positioning Statement

A unified communication of who is the target audience (for whom, for when, for where), what it is you offer, why it is unlike key competitors

Stagegate Model

Idea Generation, Scoping, Building Business Case, Development, Test, Launch

Design Thinking Approach

Emphasize, Define, Ideate, Prototype, Test

Product Mortality Curve

Screening, Development, Testing, Commercialization = 1 successful new product

ADRESING

Age, Disability, Religion, Ethnicity, Socioeconomical Status, Indigenous heritage, national origin, gender

Creativity Templates

Attribute Dependency, Displacement, Replacement, Division, Component Control, Task Unification

Factors Affecting Pricing Strategy

costs, motivation, historical price behavior, Income, ability to compare

Hierarchy of Effects

Unaware, Awareness, Knowledge, Attitude, Preference, Intention, Purchase

PESTLE

political, economic, social, technological, legal, environmental

compensatory

it does not have this but that is okay because it has this other thing

non-compensatory

if it does not have this thing, I am not interested at all

Bases for Segmentation

Geographic, Demographic, Psychographic, Behavioral, Benefits Sought

Product Line Depth Considerations

customer heterogeneity, legitimization, cost of variety vs scale of opportunity

Marketing Strategy Formation Process

analysis, decisions, outcomes

Product Structure - Generic Product

poker ante, just enough to participate in the market

Product Structure - Expected Products

generic product plus the minimum a customer would expect

Product Structure - Augmented Products

goes beyond expected product to include unexpected value enhancing elements

Product Structure - Potential Products

goes beyond what is people might conceive as possible

Product Pattern Stages

introduction: marketing expenditures are high and awareness must be established, growth: sales grow with awareness, maturity: all feasible markets have been reached, sales come from replenishment only, Decline: focus on hard-core loyal customers, phase out weak products

Product Mix Breadth

variety and number of product lines

Product Line Depth

number of items in a given product line

Feature-Based Claims

focus on special feature, what is in it

Value-Based Claims

helping customers achieve their values, why is it important to me

Benefit-Based Claims

focus on benefits, what is in it for me

Vertical Positioning

shared attributes among brands but highlight one as superior

Horizontal Positioning

adding new values or attributes to attract customers

Breakaway Positioning

escape from a sleepy category

Reverse Positioning

get customers to accept less than they expect in exchange for other benefits

Stealth Positioning

conceal true nature of a product