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57 Cards in this Set

  • Front
  • Back
5 C's
strategic- customer, company, collaborators, context, competitor
4 P's
tactical, marketing mix. the set of controllable marketing tools that the firm blends to produce the response it wants in the target market. product, price, promotion, place
product
-good and services combination the company offers the target market
-variety, quality, design, features, brand name, packaging, services
promotion
-activities the communicate the merits of the product and persuade target customers to buy it
-advertising, personal sellings, sales promotion, public relations
price
-amount customers pay to obtain product
-list price, discounts, allowances, payment period, credit terms
place
-company activities that make the product available to target consumers
-channels, coverage, assortments, locations, inventory, transportation, logistics
market segmentation
dividing a market into distinct groups of buyers who have distinct needs, characteristics, or behavior and who might require separate products or marketing mixes
target marketing
process of evaluating each market segment's attractiveness and selecting one or more segments to enter
market positioning
arranging for product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
Consumer Behavior
***
Steps
Need recognition, information search, evaluation of alternatives, purchase decision, postpurchase behavior
need recognition
-Need: discrepancy between actual state and ideal state
-Can be both utilitarian and psychological
-Self-actualization needs- self-development and realization
-Esteem needs- self-esteem, recognition, status
-Social needs- sense of belonging, love
-Safety needs- security, protection
-Physiological needs- hunger, thirst
information search
-internal search
-external search
-influenced by motivation
evaluation of alternative
-influenced by motivation
-multi-attribute model
-rate importance of each attribute, rate each attribute
purchase decision
-low-effort decision making
-schemas
-heuristics
schemas
-organized set of information/cognitions that provide us with an efficient way of organizing new information
-associations linked to a concept
-mental shortcut
-categorization
-inferences
heuristics
-choice tactics or "rules of thumb"
-price, habit, normative, more it better
Postpurchase behavior
-satisfaction/dissatisfaction: based on performance/quality, balue, =f(perceived performance-expected performance)
-disconfirmation: satisfaction or dissatisfacion occurs when there is a discrepancy between our expectations and the product's actual performance
Factors influencing consumer behavior
-cultural:culture, subculture, social class
-social: reference groups, family, role and status
-personal: age and life-cycle stage, occupation, economic situation, lifestyle, personality and self-concept
-psychological: motivation, perception, learning, beliefs and attitudes
stages in adoption process
awareness, interest, evaluation, trial, adoption
awareness
consumer first becomes aware of the new product
interest
seeks information about the new product
evaluation
considers whether trying a new product makes sense
trial
tries product on a small scale to improve estimamte of value
adoption
-decides to make full and regular use of the product
-rate of adoption depends on:
-Relative advantage: Degree to which the innovation appears superior to existing products
-Compatibility: Degree to which the innovation fits the values and experiences of potential consumers
-Complexity: Degree to which the innovation is difficult to understand or use
-Divisibility:Degree to which the innovation may be tried on a limited basis
-Communicability :Degree to which the results of using the innovation can be observed or described to others
individual differences in innovativeness
• Innovators
o Venturesome, try new ideas at some risk
• Early adopters
o Opinion leaders, guided by respect, adopt new ideas early but carefully
• Early majority
o Deliberate, rarely leaders but adopt earlier than most
• Late majority
o Skeptical, wait to majority of people have tried innovation
• Laggards
o Tradition bound, suspicious of changes
business markets
****
marketing structure and demand
-fewer but larger buyers
-more geographically concentrated
-demand derived from final consumer demand
-demand is more elastic
-demand fluctuates more, and more quickly
nature of buying unit
-more buyers
-more professional purchasing effort
types of decisions and the decision process
-more complex buying decisions
-more formalized process
-buyers and sellers work closely and build long-run relationships
product life cycle stages
product development, introduction, growth, maturity, decline
product development
-Idea generation: Search for new product ideas, internal, external
-Idea screening: Screening new-product ideas in order to spot good ideas and drop poor ones
-Concept development and testing: Testing concepts with a group of target consumers to find out if the concepts have strong consumer appeal
-Marketing strategy: Designing an initial strategy for a new product based on the product concept
-Business analysis: Review of sales, costs, and profit projections for a new product to find out whether these factors satisfy the company’s objectives
-Product development: Developing the physical product
-Test marketing: Product and marketing program are tested in more realistic market settings
-Commercialization : Introducing a new product into the market
introduction
trial vs. repeat sales, market pioneers (very risky, need $), little competition, often unprofitable, highly innovative customers
growth
rapid market growth, many new competitive entrants, new customers and repeat initial buyers, lots of profit gains, increasing product differentiation
maturity
-intense competition on all 4 P's
-clear fairly static segmentation
-well-informed buyers
-slowdown in new customers
-no technological breakthroughs
-repeat/replacement sales are key
-squeeze out profits however possible (niche branding, differentiation on minor attributes, cost-cutting
-market share is valued at least as much as profits
decline
-sales and profits declining
-virtually no new customers
-often due to dominant replacement technology
-4 basic strategies: withdraw, harvet, niche, market leadership
skim
-start slow then grow
-extract maximum value from most interested customers
-can be profitable from start, but big money comes later
-no competition
-complex product
-limited resources
-trail
penetration
-big bang
-low risk
-customer need
-repeat potential/revenue
-concentrated
-high demand
-competitors
-mass marketing from the beginning
-number of new adopters peeks early
-requires significant resources, but can yield high return
Decision factors in skim vs. penetration
-perceived relative advantage by consumers
-compatability with existing practices
-complexity
-ability to try the innovation
-observability of the innovation's benefits
benefits of observing/modeling in the PLC
-sales forecasting
-anticipating changes in customer mix (and needs)
-resource allocation
-choice of strategy
problems with the PLC
-sales patterns often aren't very smooth
-conflicting factors make it hard to judge skim vs. penetration
-questions about cause and effect
-level of analysis
Segmentation, targeting, positioning
****
mass marketing
-same product and marketing mix for everyone
-efficient
segmentation
process of dividing markets into distinct subsets of consumers with common needs and characteristics
benefits of segmentation
-allows established companies to expand markets
-allows new companies to find niches
-identify specific wants and needs of groups
-reposition existing products
-determine appropriate media to reach different groups
segmentation variables
-geographic
-demographic (age, sex, income, occupation)
-psychological (need/motivation)
-psychographic (lifestyle)
-sociocultural (culture, race, religion)
-use related
-use situation
-benefit
-hybrid (geo-demographic)
criteria for good segments
-identification (measureable)
-sufficiency (substantial)
-accessibility
-differentiable and actionable
-stability
methods for segmentation
-cluster analysis, factor analysis
-art and opinion
micro segmentation
-narrowcasting
-moving towards a segment of one
customer relationship management
-creating and maintaining a relationship with an individual customer to build lifetime value
targeting
strategic, develop measure of segment attractiveness
targeting steps
-select target segments (size, growth, stability)
-company position with segment
(ease of entry, ability to reach and serve segment)
-competitors (number and strength)
-product life cycle
-evaluating market segments
-selecting segments
postioning
tactical
positioning steps
-develop positioning for target segments
-develop a marketing mix for each segment
-influences how a particular segment perceives an offering in comparison to the competition
positioning maps
show consumer percceptions of their brands versus competing products on important buying dimensions
choosing a strategy
identifying competitive advantages
positioning statement
to (target segment and need) our (brand) is (concept) that (point of difference)