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57 Cards in this Set
- Front
- Back
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5 C's
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strategic- customer, company, collaborators, context, competitor
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4 P's
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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
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product
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-good and services combination the company offers the target market
-variety, quality, design, features, brand name, packaging, services |
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promotion
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-activities the communicate the merits of the product and persuade target customers to buy it
-advertising, personal sellings, sales promotion, public relations |
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price
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-amount customers pay to obtain product
-list price, discounts, allowances, payment period, credit terms |
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place
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-company activities that make the product available to target consumers
-channels, coverage, assortments, locations, inventory, transportation, logistics |
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market segmentation
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dividing a market into distinct groups of buyers who have distinct needs, characteristics, or behavior and who might require separate products or marketing mixes
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target marketing
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process of evaluating each market segment's attractiveness and selecting one or more segments to enter
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market positioning
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arranging for product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
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Consumer Behavior
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***
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Steps
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Need recognition, information search, evaluation of alternatives, purchase decision, postpurchase behavior
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need recognition
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-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 |
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information search
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-internal search
-external search -influenced by motivation |
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evaluation of alternative
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-influenced by motivation
-multi-attribute model -rate importance of each attribute, rate each attribute |
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purchase decision
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-low-effort decision making
-schemas -heuristics |
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schemas
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-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 |
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heuristics
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-choice tactics or "rules of thumb"
-price, habit, normative, more it better |
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Postpurchase behavior
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-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 |
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Factors influencing consumer behavior
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-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 |
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stages in adoption process
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awareness, interest, evaluation, trial, adoption
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awareness
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consumer first becomes aware of the new product
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interest
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seeks information about the new product
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evaluation
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considers whether trying a new product makes sense
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trial
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tries product on a small scale to improve estimamte of value
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adoption
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-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 |
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individual differences in innovativeness
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• 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 |
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business markets
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****
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marketing structure and demand
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-fewer but larger buyers
-more geographically concentrated -demand derived from final consumer demand -demand is more elastic -demand fluctuates more, and more quickly |
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nature of buying unit
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-more buyers
-more professional purchasing effort |
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types of decisions and the decision process
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-more complex buying decisions
-more formalized process -buyers and sellers work closely and build long-run relationships |
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product life cycle stages
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product development, introduction, growth, maturity, decline
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product development
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-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 |
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introduction
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trial vs. repeat sales, market pioneers (very risky, need $), little competition, often unprofitable, highly innovative customers
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growth
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rapid market growth, many new competitive entrants, new customers and repeat initial buyers, lots of profit gains, increasing product differentiation
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maturity
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-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 |
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decline
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-sales and profits declining
-virtually no new customers -often due to dominant replacement technology -4 basic strategies: withdraw, harvet, niche, market leadership |
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skim
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-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 |
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penetration
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-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 |
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Decision factors in skim vs. penetration
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-perceived relative advantage by consumers
-compatability with existing practices -complexity -ability to try the innovation -observability of the innovation's benefits |
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benefits of observing/modeling in the PLC
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-sales forecasting
-anticipating changes in customer mix (and needs) -resource allocation -choice of strategy |
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problems with the PLC
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-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 |
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Segmentation, targeting, positioning
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****
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mass marketing
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-same product and marketing mix for everyone
-efficient |
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segmentation
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process of dividing markets into distinct subsets of consumers with common needs and characteristics
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benefits of segmentation
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-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 |
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segmentation variables
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-geographic
-demographic (age, sex, income, occupation) -psychological (need/motivation) -psychographic (lifestyle) -sociocultural (culture, race, religion) -use related -use situation -benefit -hybrid (geo-demographic) |
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criteria for good segments
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-identification (measureable)
-sufficiency (substantial) -accessibility -differentiable and actionable -stability |
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methods for segmentation
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-cluster analysis, factor analysis
-art and opinion |
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micro segmentation
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-narrowcasting
-moving towards a segment of one |
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customer relationship management
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-creating and maintaining a relationship with an individual customer to build lifetime value
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targeting
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strategic, develop measure of segment attractiveness
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targeting steps
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-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 |
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postioning
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tactical
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positioning steps
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-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 |
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positioning maps
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show consumer percceptions of their brands versus competing products on important buying dimensions
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choosing a strategy
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identifying competitive advantages
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positioning statement
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to (target segment and need) our (brand) is (concept) that (point of difference)
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