Marketing Exam 2

Qualitative Research

Focuses on detailed opinions and smaller samples.

Quantitative Research

Uses measurable data and statistics.

Focus Group

A professionally moderated discussion with usually 6–10 people to gather opinions.

Exploratory Research

Helps gain an initial understanding of the problem

Descriptive Research

Explains characteristics, behaviours, and opinions

Causal Research

Determines whether one variable causes a change in another

Behavioural data

Measures what customers actually do instead of relying only on what they say they do

Brand loyalty

A customers commitment to buying a product

Stand-alone Branding

Gives products a separate brand name

Family Branding

Uses one brand name for multiple products

Line Extension

Adds a new version of an existing product

Category extension

Uses an existing brand name in a new product category

Brand licensing

Allowing another company to use a brand name in exchange for a fee or percentage of sales

National Brands

Sold under a manufacturers brand

Store brand

Owned by retailers

Benefits of brand Equity

Perceived quality, strong brand associations, and customer loyalty.

Penetration pricing

Setting a low initial price to attract customers and gain market share.

Price Skimming

Setting a high initial price to target customers willing to pay more.

Target ROI Pricing

Setting prices to achieve a specific return on investment.

Competitor Based Pricing

Setting prices based on competitors' prices.

Product Line Pricing

Setting different prices for related products based on their features and benefits.

Reference Pricing

Showing a comparison price to help customers judge whether a product is a good deal.

Three Main Goals of Promotion

Inform customers, persuade customers, and remind customers.

Push Strategy

Targets distribution channels to get products to customers

Pull Strategy

Creates consumer demand, so customers seek out products

AIDA Model

• Attention- Get the customer's attention.

• Interest- Make the customer interested.

• Desire- Make the customer want the product.

• Action- Encourage the customer to purchase.

Display Ads

Appear with a web page

Interstitial Ads

Full-page advertisements that appear before an intended page

Paid Media

Gets the customers attention

Owned media

Company-controlled media, like a web page

Earned media

Unpaid publicity, shares, and customer reviews

Institutional advertising

Promotes a company, industry or group of brands instead of one specific product

Pioneering Advertising

Introduces a new product or builds initial awareness

Competitive Advertising

Promotes one brand over competitors

Comparative advertising

Directly compares brands

Reach

Number or percentage of people an advertisement reached

Frequency

How many times people see an ad on average

Advertising execution

The way an advertisement communicates its message and image

Sales Promotion

Short-term incentives, such as coupons or discounts, encourage customers to buy now. Mainly targets the Action stage of AIDA

Contest

Requires skill to win

Sweepstakes

Based on chance