Marketing Strategy and Consumer Behavior: Core Frameworks

What are the 4 Ps?

Product; Price; Place; Promotion

What is marketing exchange?

The trade of value between two parties.

What is customer value?

Benefits received relative to costs paid.

What is a value proposition?

A cluster of benefits promised to satisfy customer needs.

What is a target market?

A specific group of consumers chosen by a company.

What does SWOT stand for?

Strengths; Weaknesses; Opportunities; Threats

What is a strength?

An internal advantage.

What is a weakness?

An internal disadvantage.

What is an opportunity?

An external favorable condition.

What is a threat?

An external unfavorable condition.

What are Porter's Four Generic Strategies?

Cost Leadership; Differentiation; Cost Focus; Differentiation Focus

Walmart uses which Porter strategy?

Cost Leadership

Ferrari uses which Porter strategy?

Differentiation Focus

Rolex uses which Porter strategy?

Differentiation

Dollar General uses which Porter strategy?

Cost Focus

What are the four Ansoff Matrix strategies?

Market Penetration; Market Development; Product Development; Diversification

Existing products + existing markets?

Market Penetration

Existing products + new markets?

Market Development

New products + existing markets?

Product Development

New products + new markets?

Diversification

What are the four BCG Matrix categories?

Star; Cash Cow; Question Mark; Dog

High growth + high market share?

Star

Low growth + high market share?

Cash Cow

High growth + low market share?

Question Mark

Low growth + low market share?

Dog

Tesla in a rapidly growing EV market?

Star

Coca Cola in a mature soft drink market?

Cash Cow

A startup in a growing industry with low market share?

Question Mark

A DVD rental company today?

Dog

What is environmental scanning?

Collecting information about external forces affecting a business.

What are the five environmental forces?

Social; Economic; Technological; Competitive; Regulatory

Income inflation and unemployment fall under which force?

Economic

Government laws fall under which force?

Regulatory

Demographics and culture fall under which force?

Social

Innovation falls under which force?

Technological

What are the five steps of the consumer decision process?

Problem Recognition; Information Search; Alternative Evaluation; Purchase Decision; Post Purchase Behavior

Realizing a need?

Problem Recognition

Reading reviews?

Information Search

Comparing brands?

Alternative Evaluation

Making the purchase?

Purchase Decision

Evaluating satisfaction?

Post Purchase Behavior

Post purchase doubt?

Cognitive Dissonance

What are the three levels of problem solving?

Routine; Limited; Extended

Low involvement purchase?

Routine Problem Solving

Medium involvement purchase?

Limited Problem Solving

High involvement purchase?

Extended Problem Solving

Food water and shelter?

Physiological Need

Security and protection?

Safety Need

Belonging friendship and love?

Social Need

Recognition and achievement?

Esteem Need

Personal fulfillment?

Self Actualization

What are the three types of research?

Exploratory; Descriptive; Causal

Research used when little is known?

Exploratory Research

Research describing characteristics or relationships?

Descriptive Research

Research identifying cause and effect?

Causal Research

What is primary data?

Data collected specifically for a research project.

What is secondary data?

Data already collected by another source.

Watching customers shop?

Observation

Questionnaires distributed to consumers?

Survey

Group discussion led by a moderator?

Focus Group

Testing alternatives under controlled conditions?

Experiment

What does STP stand for?

Segmentation; Targeting; Positioning

What is segmentation?

Dividing a market into groups with similar characteristics.

What is targeting?

Selecting which segment to serve.

What is positioning?

Creating a desired image in consumers' minds.

What are the four segmentation variables?

Demographic; Geographic; Psychographic; Behavioral

Age income gender education?

Demographic

Location?

Geographic

Lifestyle interests values?

Psychographic

Usage patterns benefits sought?

Behavioral

Competing directly against competitors?

Head to Head Positioning

Competing using unique attributes?

Differentiation Positioning

Changing consumer perceptions?

Repositioning

Visual position comparison tool?

Perceptual Map

What are the four consumer product types?

Convenience; Shopping; Specialty; Unsought

Gum purchased at checkout?

Convenience Product

Laptop purchased after comparisons?

Shopping Product

Luxury sports car?

Specialty Product

Life insurance?

Unsought Product

What are the diffusion of innovation groups?

Innovators; Early Adopters; Early Majority; Late Majority; Laggards

First users?

Innovators

Opinion leaders?

Early Adopters

Last adopters?

Laggards

What are the four Product Life Cycle stages?

Introduction; Growth; Maturity; Decline

Low sales and few competitors?

Introduction

Rapid sales growth?

Growth

Sales plateau and intense competition?

Maturity

Sales declining?

Decline

Signs of Introduction stage?

Low sales; innovators; high marketing costs; few competitors.

Signs of Growth stage?

Rapid sales growth; competitors entering; expanding distribution.

Signs of Maturity stage?

Sales plateau; repeat purchases; strong competition.

Signs of Decline stage?

Sales falling; product discontinuation; reduced marketing support.

How do firms extend the Product Life Cycle?

Modify the Product or Modify the Market.

What is brand equity?

The added value a brand gives a product.

What is brand loyalty?

Consistent preference for a brand.

Apple using one brand across many products?

Multiproduct Branding

P&G owning Tide Gain and Cheer?

Multi Branding

Costco Kirkland?

Private Branding

Manufacturer sells under own brand and retailer brand?

Mixed Branding

Using an existing brand on a new category?

Brand Extension