marketing sem1 midterm

Marketing

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

List the 4 P’s

Product, Price, Place, Promotion

Four P’s: Product

creating value

Four P’s: Price

capturing value

Four P’s: Place

delivering value

Four P’s: Promotion

communicating value

What is value?

Customers see value as a fair return in goods

Value-oriented marketers…

measure the benefits that customers perceive against the cost of their offerings

Conscious marketing

a marketing approach that asks companies to consider societal goals and ethical responsibilities as strongly as they do their economic goals

4 things that create customer value

locational excellence, customer excellence, product excellence, operational excellence

locational excellence

where customers are

customer excellence

service + loyalty

product excellence

high perceived value supported by distinctive branding and positioning

operational excellence

creaes value by making the system faster, more reliable and less costly

what does SWOT stand for?

strengths, weaknesses, opportunities, threats

What are metrics used to do?

explain at what cost and why things happen and also projects the future

If a product is a star, that means…..

high market share, high market growth

If a product is a cash chow, that means…

high market share, low market growth

If a product is a question market, that means..

low market share, high market growth

If a product is a dog, that means…

low market share, low market growth

Market penetration - growth strats

• sell more to current customers

• existing market, existing product

market development - growth strats

• take current offer to new markets

• new market, existing product

product development - growth strats

• new offer to current customers

• existing market, new product

diversification - growth strats

• new market, new product

what does IMC stand for?

integrated marketing communication

The centerpiece is always ____

consumers

parties taht work with the firm are called _____________

corporate partners

greenwashing

when a company misleads consumers into believing its products/service/polices are more environmentally friendly than they really are

fake green marketing

using sustainability buzzwords, imagery or claims without real action to back them up

country culture

• subtler aspects can be difficult to navigate

• sometimes best answer is to establish universal appeal within specific identities of country culture

regional culture

• important to cater to regional preferences

consumers confidence index

takes into account how consumers feel about how the economy is doing

need recognition

wants are goods/services that aren’t needed but desired

functional needs

pertain to performance of a product or service (solves practical problem)

psychological needs

pertain to the personal gratification consumers associate with a product and/or service (emotional/social desire)

Internal search for info

buyer examines his/her own memory/knowledge about the product/service gathered through past experiences

External search for info

buyer seeks information outside his/her personal knowledge base to help make the buying decision

Locus of Control

indicates how much control people think they have over the outcomes of various activities

Internal Locus of Control

believe you have some control over the outcomes of your actions, in which case you generally engage in more search activities

External Locus of Control

believe that fate or other external factors control all outcomes

Performance Risk

involved the perceived danger inherent in a poorly performing product or service

Financial Risk

Is associated with a monetary outlay and includes the initial cost of the purchase as well as the costs of using the item or service

Social Risk

involves the fear that consumers suffer when they worry others might not regard their purchases positively

Physiological Risk

refers to the fear of actual harm should be the product does not perform properly

Psychological Risk

are those risks associated with the way people will feel if the product or service does not convey the right image

Universal sets

include all possible choices for a product category

Retrieval

brands or store that can be readily brought forth from money

Evoked set

comprises the alternative brands or stores that the consumer states he/she would consider when making a purchase decision

evaluative criteria

consist of a set of salient, or important, attributes about a particular product

Determinant attributes

products or service features that are important to the buyer and on which competing brands or stores are perceived to differ

consumer decision rules

a set of criteria that consumers use consciously or subconsciously quickly and efficiently select among several alternatives

Non-compensatory decision rules

when consumers choose a product or service on the basis of one characteristics or a subset of a characteristics, regardless of the values of its other attributes

Compensatory decision rules

assume that the consumer, when evaluating alternatives, trades off one characteristic against another, such that good characteristics compensate for bad characteristics

Impulse products

purchase without planning

nudge

one element of the choice architecture that alters behavior in a predictable way

defaults

deals with a “no-action” condition by imposing a choice on a person who fails to make a decision or does not actively opt for a different alternative

What does CR stand for

Conversion rate

what is increase conversaion rate

• reduce real or virtual abandoned carts

• expand product line

• enhance customer service

How ro ensure customer, post-purchase, satisfaction

• Build realistic expectations, not too high and not too low

• Demonstrate correct product use–improper usage can cause dissatisfaction

• Stand behind the product or service by providing money-back guarantees and warranties 

• Encourage customer feedback, which cuts down on negative word of mouth and helps marketers adjust their offerings

• Periodically make contact with customers and thank them for their supports

Maslow’s hierarchy of needs

1) self-actualization

2) esteem

3) love and belonging

4) safety needs

5) physiological needs

Cognitive attitudes

reflects our belief system or what we believe to be true (belief system)

Affective attitudes

involves emotions, or what we feel about the issue at hand (emotions/feelings)

Behavioral attitudes

pertains to the actions we undertake based on what we know and feel (actions)

Selection Perceptions

focus out attention on certain sights, sounds, tastes, touches or smells

Organization perceptions

sort and arrange the information we’ve selected into a coherent pattern

Interpretation perceptions

where we assign meaning to the information we’ve selected by calling to mind relevant, familiar information

Salience

the degree to which something attracts our attention in particular context

actual lifestyle

the reality of the situation

perceived lifestyles

how someone interprets or understand the situation

situational factors

factors specfici to the situation that override or at least influence purchase decisions

Temporal state

a purchase situation may have different appeal levels depending on time of day and type of person a consumer is

Sensory state

marketers use sensory clues to influence consumers at the choice of the decision process

Extended problem solving

common when the customer perceives that the purchase decisions entails a lot of risk

Limited problem solving

occurs during a purchase decision that calls for, at most, a moderate amount of effort and time

Impulse buying

a buying decision made by customers on the spot when they see the merchandise

Habitual Decision Making

describes a purchase decision process in which consumer engage in little conscious effort

elaboration likelihood model

proposes that high and low involvement consumer process different aspects of a message or advertisement

what does B2B stand for?

business-to-business

B2B marketing refers to…..

the process of buying & selling goods or services to be used in the production of other goods and services for consumption by the buying organization and/or resale by wholesalers and retailers

Wholesalers

a person/company who sells products in bulk to various outlets or retailers for onward sale, either directly or through a middle man

Distributors

a distributor is an intermediary entity between a producer of a product, or manufacture, and a downstream entity in distribution channel or supply chain

New Buy

• most likely when purchasing for the fire time

Modified Rebuy

• purchasing a similar product buy changing specifications such as price, quality level, customer service level, options, etc.

Straight Rebuy

• buying additional units of products that have been previously purchased

List the 5 segmentation methods

Geographic, Demographic, Psychographic, Benefit, Behavioral

occasion segmentation

based on when a product or service is purchased or consumed

loyalty segmentation

loyal customers are the most profitable

undifferentiated targeting strategy

firms using this strategy target several market segments with a different offering for each

market positioning

defining marketing mix variables so target customers have a clear, distinctive, desirable understanding of what the product does

value proposition

communicates the customer benefits to be received from a product or service

specialty products

luxury products that customers express such a strong preference that they will expend considerable effort to search for the best product

shopping products

consumers will spend a fair amount of time comparing alternatives

convenience products

consumer is not willing to expend any effort to evaluate prior to purchase

unsought product

consumers either do not normally think of buying or do not know about

breadth

number of product lines in a product mix

depth

number of categories within a product line

brand awareness

the more aware consumers are with a brand, the higher chances of purchase

perceived value

relationship between a product’s benefits and its costs

brand association

the mental and emotional links that consumers make between a brand and its key attributes, such as a logo/color, slogan or famous personality

brand loyalty

occurs when a consumer buys the same brand’s products or service repeatedly over time rather than buying from multiple suppliers within the same category