Overall marketing flashcards

what is consumer behavior?

the study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences

what are psychological influences on consumer behavior?

internal psychological factors that contribute to determining people’s behavior

what are situational influences on consumer behavior?

circumstances, times, and places that impact the consumer decision-making process

what are social influences on consumer behavior?

forces that other people exert on consumer behavior

what is perception?

the process by which individuals select organize, and interpret information to form a meaningful picture of the world

what is learning in consumer behavior?

a change in behavior resulting from experience

what is memory?

the process of acquiring, storing, and retrieving information

what is motivation?

an internal state that drives individuals to act toward achieving goals

what is the self in consumer behavior?

the way consumers perceive and define themselves

what is consumer behavior research?

the systematic collection and analysis of information about consumers and their behavior

what is a conditioned stimulus?

a previously neutral stimulus that acquires the ability to evoke a response through association

what is an unconditioned stimulus?

a stimulus that naturally and automatically triggers a response

what is an aspirational group?

a group that a consumer desires to join or emulate

what is an attitude?

a learned predisposition to respond favorably or unfavorably toward an object, person or idea

what is a heuristic?

a mental shortcut used to simplify decision making

what is the lexicographic heuristic?

a decision rule where consumers choose the option that performs best on the most important attribute

what is market research?

the systematic design, collection, analysis, and reporting of data relevant to a marketing situation

what is exploratory research?

research used to gain preliminary insights and clarify problems

what is descriptive research?

research used to describe characteristics of a market or population

what is causal research?

research used to identify cause-and-effect relationships

what is primary data?

data collected specifically for the current research purpose

what is secondary data?

data that already exists and was collected for another purpose

what is qualitative research?

research focused on understanding meanings, experiences, and motivations

what is quantitative research?

research focused on numerical measurement and statistical analysis

what is customer value?

the perceived benefits received by a customer relative to the costs incurred

what is customer equity?

the total combined value of a firm’s customer relationships

what is Customer Lifetime Value (CLV)?

the value of the entire future relationship with a customer

what is the marketing mix?

the set of tactical marketing tools that a firm blends to produce the desired response in the target market

what are the Four Ps of the marketing mix?

Product, Price, Place, and Promotion

What is the Product element of the marketing mix?

the goods or services offered to satisfy customer needs

what is the Price element of the marketing mix?

the amount customers pay to obtain a product or service

what is the Place element of the marketing mix?

activities that make products available to target customers

what is the Promotion element of the marketing mix?

activities that communicate product benefits and persuade customers to buy

what is a product life cycle?

the pattern of a product’s sales and profits over time

what are the stages of the product life cycle?

introduction, growth, maturity and decline

during which stage of the product life cycle profits usually highest?

maturity stage

what is price elasticity?

the degree to which demande changes in response to a change in price

what is a loss leader strategy?

a pricing strategy where a product is sold at a low price to attract customers and stimulate additional purchases

what is a brand architecture?

the structure that organizes brands, products and services within a company

what is a House of Brands?

a brand architecture strategy where multiple distinct brands operate independently

what is a Branded House?

a brand architecture strategy where products share a common master brand

what is a brand extension?

the use of an existing brand name to launch a new product

what is brand equity?

the value a brand adds to a product through consumer perceptions and associations

what is market segmentation?

the process of dividing a market into distinct groups of buyers with different needs or characteristics

what is targeting?

the process of evaluating and selecting market segments to enter

what is positioning?

designing a product and brand image to occupy a distinct place in consumers’ minds

what is a niche market?

a narrowly defined segment with specific needs

what is a perceptual map?

a visual representation showing how consumers perceive competing brands or products

what is customer feedback?

information provided by customers regarding their experiences with products or services

what is the “job to be done” concept?

the underlying task or problem a customer wants to solve

why is identifying the customer’s job important?

it helps understand the real reason customers choose a product or service

what does the statement “ customers rarely buy what the company thinks it is selling” imply?

customers purchase solutions to needs rather than products themselves

what is AI in marketing?

the application of AI technologies to support marketing activities and decisions

what is marketing automation?

the use of technology to automate marketing tasks and processes

how is AI expected to impact marketing?

by improving decision making, personalization and efficiency

what is decision driven data analytics?

the use of data analysis to support and improve marketing decisions

why is data analytics important in marketing?

it enables evidence based decisions and better customer understanding

what is customer centricity?

a business approach that places customer needs and value creation at the center of decisions

what is a target market?

the selected group of customers a company aims to serve

what is product variety?

the assortment of different products offered by a company

what is a marketing strategy?

a plan for creating, communicating, and delivering value to customers

what is strategic marketing?

marketing activities focused on long-term market selection and positioning decisions

what is tactical marketing?

marketing activities focused on long-term market selection and positioning decisions

what is tactical marketing?

marketing activities focused on implementing the marketing mix

what is consumer decision making?

the process consumers use to identify, evaluate and choose among alternatives

what is customer perceived value?

the customer’s evaluation of benefits received versus costs incurred

what is an engaged customer?

a customer who actively interacts with and develops a relationship with a brand

what is a competing solution?

any alternative a consumer can use to accomplish the same job or need

why are competing solutions not always obvious competitors?

consumers compare all options that can solve the same underlying problem

what is segmentation attractiveness?

the extent to which a market segment is worth targeting based on its potential value

what is a positioning map used for?

to compare brands based on consumer perceptions of key attributes

what is brand management?

the process of developing, maintaining and enhancing a brand’s value

what is the main objective of marketing?

to create value for customers and build profitable customer relationships

what is the narrow definition of price?

the amount of money charged for a product

what is the broad definition of price?

the sum of the values consumers exchange for the benefit of having and using a product

what internal factors influence pricing decisions?

cost structure, marketing goals, marketing mix and organizational structure

what external factors influence pricing decisions?

market conditions, competition, demand, and economic factors

what additional costs are associated with durable goods?

transaction costs, opportunity costs of consuming and maintenance costs

what is the zero price effect?

people react disproportionately positively to products offered for free

why is zero considered a special price?

free options have no downside and generate a more positive affective reaction

what is cost based pricing?

a pricing strategy that starts with product costs and then determines price

what is the main limitation of cost-based pricing?

it ignores customer value, demand, and competitors’ pricing activities

what is the main advantage of cost based pricing?

it is perceived as fair and is relatively easy to use

what is value based pricing?

a pricing strategy where price is based on customer perceptions of value

what is the core idea of value based pricing?

start with customers and perceived value rather than costs

what is the first step in value based pricing?

measure customer value perceptions and willingness to pay

what is target pricing in value based pricing?

setting price based on perceived customer value

what is target costing?

allowing the target price to determine design, production, and allowable costs

what is a price demand curve?

a curve showing how demand changes at different price levels

what is price elasticity of demand?

a measure of how sensitive demand is to changes in price

what is competition based pricing?

a pricing strategy based on competitors’ prices and expected pricing behavior

what is the core idea of competition based pricing?

prices are set according to competitors and internal processes are adjusted accordingly

what is a limitation of competition based pricing?

it ignores customer value and may trigger price wars

what is market skimming?

charging a relatively high price initially for a new or innovative product

what is the objective of market skimming?

to achieve high short term profits and segment the market

what conditions support a skimming strategy?

customers must value the product and quality/image must justify the price

what is market penetration pricing?

charging a relatively low price to achieve rapid market adoption

what is the objective of market penetration pricing?

to gain market share quickly and establish a strong market position

which pricing strategy is associated with cost leadership?

market penetration pricing

which pricing strategy is associated with short term profits?

market skimming pricing