Marketing Management exam 3

Parametric

human decision making, predictable

non-parametric

making decisions based on other people, consider how competitors are going to act

Competitor analysis 

the process of identifying, assessing, and selecting key competitors 

Competitor analysis first step 

identifying the company’s competitors 

Competitor analysis second step

assessing competitors objectives, strategies, strengths and weaknesses + reaction patterns

Competitor analysis third step

selecting which competitors to attack or avoid

Selecting competitors to attack and avoid 

strong or weak competitors, close or distant competitors, good or bad competitors 

Primary Competitors and examples

competitor analysis: maintenance on airstream, insurance

Secondary Competitors and examples

SOW (share of wallet), airstream time shares, hotels, cruises, vacation home 

STP

segmentation, targeting, and positioning 

STP: Segmentation (creating value for targeted customers)

divide the total market into smaller segments

STP: Targeting (creating value for targeted customers)

select the segment or segments to enter

STP: Positioning (creating value for targeted customers)

position the market offering in the minds of target customers 

STP: Differentiation (creating value for targeted customers)

differentiate the market offering to create superior customer value

Major segmentation variables for consumer markets: Geographic

dividing markets into nations, regions, states, cities, or neighborhoods

Major segmentation variables for consumer markets: Psychographic

social class, lifestyle, or personality

Major segmentation variables for consumer markets: Demographic 

age, gender, income, occupation, education, religion, ethnicity, and generation 

Major segmentation variables for consumer markets: Behavioral 

consumer knowledge, attitudes, uses, or responses to a product 

Market segmentation: to be useful, market segments must be….

measurable, accessible, substantial, differentiable, actionable

Target Marketing Strategies

undifferentiated mass marketing, differentiated segmented marketing, concentrated niche marketing, micromarketing local or individual marketing

Segmented marketing strategies: RFM 

Regency, Frequency, and Money 

Targeting and positioning example and definition

5 hour energy, positioning is up to the customer, but the marketer can influence it

Product Position

the way the product is defined by consumers on important attributes - the place the product occupies in consumers’ minds relative to competing products (perceptions, impressions, and feelings)

Competitive advantage 

an advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices 

Differentiation strategy

identifying a set of possible competitive advantages to build a position by providing a superior value from product, service, channel, people, and image differentiation

Positioning strategy: value proposition

the full mix of benefits upon which a brand is positioned

Positioning statement 

to Target and segment and need our brand is concept that point of difference 

Product

anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want

Experiences

represent what buying the product or service will do for the customer

convenience products 

consumer products and services that the customer usually buys frequently, immediately, and with a minimum comparison and buying effort 

Shopping products

consumer products and services that the customer compares carefully on suitability, quality, price, and style

Specialty products

consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort (medical services, designer clothes)

unsought products 

consumer products that the consumer does not know about or knows about but does not normally think of buying (life insurance, funeral services)

Brand

name, term, sign, or design or a combination of these that identifies the maker or seller of a product or service

brand equity

the differential effect that the brand name has on customer response to the product and its marketing

brands apply to

products, services, non profits, businesses, concepts/ideas, people

A brand provides

distinction, relationship, trust, communication

a brand involves

visuals, messages, experience

the golden rule of branding 

brands can be controlled, if there is a clearly defined promise and that promise is consistently delivered 

The three musts of brand promises

be credible, provide value, deliver

brand positioning

attributes, benefits, beliefs and vales

brand name selection

selection + promotion

brand sponsorship

manufacturer’s brand, private brand, licensing, co-branding

Brand development

Line extensions, brand extensions, multi-brands, new brands

Services: Intangibility 

services cannot be seen, tasted, felt, heard or smelled before purchase 

Services: inseparability

services cannot be separated from their providers

Services: variability

quality of services depends on who provides them and when, where, and how

Services: perishability

services cannot be stored for later sale or use, it has a beginning and an end

Marketing approach

organizations, persons, places, and ideas

Person marketing

consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular people

place marketing

consists of activities undertaken to create, maintain, or change attitudes and behavior or target consumer toward particular places 

social marketing

the use of commercial marketing concepts and tools in programs designed to influence individuals’ behavior to improve their well-being and that of society

Product and Service decisions

product attributes, branding, packaging, labeling, product support services

New product development: reasons for product failure 

overestimation of market size, poor design, incorrect positioning, wrong timing, priced too high, ineffective promotion, management influence, high development costs, competition 

First mover advantage

first company to bring a product to the market (patent, trademarks)

second mover advantage

product already developed and makes it better to get all the profit

Stages in new product development 

idea generation, idea screening, concept development + testing, marketing strategy development, business analysis, product development, test marketing, commercialization

Product Idea

an idea for a possible product that the company can see itself offering to the market

Product concept

a detailed version of the idea stated in meaningful consumer terms

Product image 

the way consumers perceive an actual or potential product  

customer-centered new product development

focuses on finding new ways to solve customer problems and create more customer satisfying experiences

sequential new-product development

a development approach where company departments work closely together individually to complete each stage of the process before passing it along to the next department or stage, increased control in risky or complex projects, slow

Team-based new-product development 

development approach where company departments work closely together in class-functional teams, overlapping in the product-development process to save time and increase effectiveness 

Systematic new-product development

an innovative development approach that collects, reviews, evaluates, and manages new-product ideas (creates innovation oriented culture)

Test marketing

the stage at which the product and marketing program introduced into more realistic marketing settings (before full exposure)

New-product development process: types of test markets

standard test markets, controlled test markets, simulated test markets