Exam 2 - Marketing 2101

What is consumer behaviour?

The process individuals or groups go through to select, purchase, use and dispose of goods, services ideas or experiences to satisfy needs and desires

What is product choice?

Consumers often rely on mental shortcuts, or heuristics, in making decisions.

What are heuristics?

The rules of thumb used by individuals to arrive at good decision with less mental effort. (i.e. price relative to quality, brand loyalty, country of origin

What factors often shape purchase behaviours?

Situational factors, such as sensory marketing or branding, the physical environment and purchase settings.

What is the Target Marketing Strategy?

Dividing the total market into different segments on the basis of customer characteristics, selecting one or more segments, and developing products to meet the needs of those specific segments.

What is the steps to the target marketing strategy?

1. Segmentation

2. Targeting

3. Positioning

What is Targeting?

Evaluating segments to decide which to go after?

What is positioning?

The process in which marketers develop a strategy to influence how a particular market segment perceives a good or service in comparison to the competition.

What is segmentation?

Identifying and describing market segments

What is segmenting by psychographics?

Using psychological, sociological, and anthropological factors to categorize customers

What is the best known Segmenting System?

VALS

What is a customized marketing strategy?

Tailoring specific products to individual customers, which is common in personal and professional services, and in industrial marketing

What are the layers of the product concept?

Core Product

Actual Product

Augmented Product

What is a convenience product?

Typically non-durable goods or services bought with minimal effort (i.e. impulse products, emergency products, Staplpes, Consumer packaged goods), the expectation is that they are low priced and widely available

What are shopping products?

Goods and services for which consumers will spend time and effort to gather information on price, product, attributes, and product quality (i.e smartphones, computers, appliances, cars), consumers are more likely to compare alternatives before they buy

What are unsought products?

Goods and services for which a consumer has little awareness or interest until a need arises ( i.e. retirement plans, life insurance, new tires), oftem require a good amount of advertising or personal selling

What are B2B products?

Equipment, or installations, or heavy, or capital equipment, has a longer lifespan compared to light equipment

What is an Innovation for marketers?

Anything that customers may perceive as new or different, could be minor or major. This is often perceived as a disruption in marketing.

What is a continuous innovation?

Anything that is a modification to an existing product, in which the customer doesn’t have to learn anything new. Dynamically continuous innovation is a pronounced mod that requires a modest amount of learning to use.

What is discontinuous innovation?

A product that creates a major change in the way people live, in that they need to learn a great deal to be able to effectively learn the product.

What does new product development value?

Co creation via collaboration with customers

What is in a name or a symbol?

A brand and a tagline.

What is a brand, and what makes it a good one?

A name, term, symbol, or any other unique element that identifies a firms product. They often maintain relationships with customers, positions a prodyct by portraying an image or describing the product, it is easy to spell and say, and it fits the target market.

Why is a tagline important?

It helps you position the product

What are brand extensions?

New products that can be introduced under the same brand (i.e. tide pods with tide liquid detergent)

What is brand dilution?

When the extension does not live up to the quality of the name sake, and the brand loses its value

What is cannibalizaiton?

idk look it up

How should a marketer set a price?

They need to understand their product demand for their product

What does demand refer to?

The quantity of a good or service that consumers and business customers are WILLING AND ABLE to buy at a given price in a given time period. (i.e. law of demand, shifts in demand, price elasticity)

What is break even analysis?

It tells marketers how many units must be sold in order to cover all the costs- knowing this point will tell you at what point the firm will start or stop making a profit

Why is break even analysis important?

It helps marketers understand the relationship between cost and price.