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68 Cards in this Set
- Front
- Back
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What is a market |
Customers and potential customers |
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Why do we segment markets |
To reach our audience most efficiently |
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Why do we profile |
When we group market by needs we know who those customers are |
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What are needs? |
Things we cant live without |
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Focus groups would be categorized as |
Exploratory research; no concrete evidence but it will give you a list to start from. |
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What is Marketing segmentation |
determining distinct groups of buyers with different needs |
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What is Market targeting |
evaluating and selecting which target segments to enter |
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What is market positioning |
products have a distinctive and desirable place in the minds of target segments compared to competing products. |
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What is the process of segmentation |
Grouping customers into relatively homogeneous sets so they are within segments that respond similarly to marketing. |
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What is the starting point for segmentation? |
Need and usage patterns provide a starting point. |
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What helps enrich market segmentation and the usage-based approach? |
Demographics, benefits, lifestyles enrich and help identify segments. |
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Sample segmentation methods |
segmentation methods: Data splits, K means cluster, hierarchical cluster, perceptual mapping, latent class regression, automatic interaction detector, chi squared automatic interaction detector, logistic regression, discriminate analysis. |
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POD's are |
Points of difference: dsireable to consumer, deliverable by the brand, differentiating from competitors |
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POP's are |
Points of parity: negate competitor points of difference, demonstrate category credentials |
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What are Brand mantras |
short 3 to 5 word phrases that capture key PODs and the irrefutable essence or spirit of the brand |
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What are competitive frames of reference |
nature of competition, and the target market |
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What is positioning |
The act of designing the company's marketing mix and image so that it occupies a distinct and valued place in the target customers minds. How we want target customers to think about a brand with respect to competitors |
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Toaster strudel's new positioning strategy was successful because. |
Customers understood what the product (toaster strudel) was and once they were educated about the product usage situations. |
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Opportunity exist in.... |
There is opportunity in position gaps. These are locations with a needs but no product is satisfying them. |
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Perceptual mapping is |
Uses math and graphs to describe comsumer's perceptions of brands or other object on one or a series of spatial maps so that the relationship between brands can be easily seen. |
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Perceptual dimensions |
Factors that customers use to compare product/services |
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Product positions |
Location of each product in “perceptual space” |
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Customer preference |
Location of ideal customer preferences |
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3 Factors of brand mantra's |
- Short 3-to-5 word phrases that capture the irrefutable essence or spirit of the brand. - Brand mantra must clearly delineate what the brand is supposed to represent and therefore, at least implicitly, what it is not - Brand mantras typically are designed to capture the brand’s points-of-difference, i.e., what is unique about the brand |
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What is horizontal line extension and give an example |
Expanding your products, ex.) Crest toothpast ahas many flavors for kids, adults, whitening, tar protection, liquid gel paste. |
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What is Brand equity |
What distinguishes a brand from its unbranded commodity counterpart. So what does the brand contribute to the products equity given the consumer perceptions and feelings about the product's attributes, name, performance and how these are associated with the brand. |
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Brand equity is a reflection and direction of... |
Reflection of past marketing investments and acts as a direction for the future marketing actions. |
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What are 5 factors that go into brand equity |
Loyalty, awareness (name, symbols), perceived quality, associations (attributes, benefits, attitudes), proprietary assets (patents, trademarks, channels) |
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What does value enhance for the consumer? |
-Interpretation/processing of information -Confidence in the Purchase Decision -Use Satisfaction |
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Equity provides value to firm by enhancing what? |
• Efficiency and Effectiveness of Marketing Programs • Brand Loyalty and Competitive Advantage • Prices/margins • Brand extensions |
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Substages in cognitive stage |
awareness leads to knowledge |
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Substages in affective stage |
liking leads to preference leades to conviction |
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Substages in behavior stage
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purchase |
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Value research suggests |
People make decisions and are motivated to take actions based on an attribute-consequence-values schema |
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Value research examines... |
the rational components (concrete attributes, functional benefits) and the emotional components (psychological benefits, terminal values) |
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Relative value is...(math formula) |
Relative performance - relative price |
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Pricing policys (3) |
Value: what market will bear Competition: competitive price matching Cost base: cost as a basis |
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Formula for breakeven volume |
Fixed cost / (price - variable cost) |
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What are a company's goals |
are the gap between the company’s actual and potential accomplishments, between what the company readily has (in terms of profits, revenues, and/or market share) and what it could have. |
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What is a company's strategy |
Outlines the logic of the company’s actions aimed at achieving its goals. Strategy analysis involves two key components: understanding market structure and understanding marketing value |
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What is implementation |
outlines the timeline and the algorithm of executing the offering’s strategy and tactics. |
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What are controls |
outline the policy to measure progress toward the company’s strategic goals, monitor performance, identify potential problems, and make adjustments when necessary. |
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What are tactics |
identify how the desired strategy will be implemented through a set of explicit business activities. Tactics typically involve designing a set of specific marketing mix variables aimed at creating, communicating, and delivering value to target customers. |
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SWOT stands for |
Strengths weaknesses opportunities threats |
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BCG Matrix and what makes these: Stars: ?: Cash Cows: Dogs: |
(Market Share, Market Growth) Stars: H,H ?: L,H Cash Cows: H,L Dogs: L,L |
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Product growth framework axes |
X: Customers Y: Products |
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Product growth framework internal descriptions |
Market Penetration: Market Development: Diversification Product Development |
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Product Market Growth framework What is Product Development: |
offering modified or new products to current customers. How? New styles, flavors, colors, or modified products. |
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Product Market Growth framework What isDiversification: |
new products for new markets. How? Start up or buy new businesses |
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Product Market Growth framework What isMarket Development: |
develop new markets with current products. How? Identify new demographic or geographic markets. |
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Product Market Growth framework What isMarket Penetration: |
increase sales to present customers with current products. How? Cut prices, increase advertising, get products into more stores |
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Marketing game:
feasible ranges for -Special Commands -Error Protection -Ease of learning |
5-20 1-10 1-10 |
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Marketing game: decrease level costs for -Special Commands -Error Protection -Ease of learning |
Nothing nothing $3,000 * change |
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Marketing game: increase level costs for -Special Commands -Error Protection -Ease of learning |
8000 * change 5000 * change 3000 * change |
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Marketing game: variable costs = |
$4 x (Number of special commands) + $3 x (Error protection rating) + $2 x (Ease of learning rating) |
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Marketing game: Modern Student criteria |
Low cost low error protection High features Low ease of learning 20% of sales |
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Marketing game: Home user criteria |
Mid level price Some error protection High features High ease of learning 15% of sales |
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Marketing game: Harried Assistants criteria |
Low error protection High support High ease of learning Variety of tasks |
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Marketing game: Personal creator criteria |
High Special commands 10% of sales last year |
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Marketing game: High Tech managerscriteria |
high special commands higher price 22% of sales |
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Marketing game: Concerned parents criteria |
High Ease of learning 8% of sales |
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Retail price formula |
Retail price = (Wholesale Price)/(1-Return on sales) |
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Pioneering |
advertising helps to encourage primary demand for the product market |
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Direct Competitive |
advertising increases a firm’s advertising effectiveness in the period in which it is used, but has relatively little carryover to future periods. |
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Indirect competitive |
advertising also increases a firm’s advertising effectiveness in the period that it is used. In addition, there is more carryover benefit in the future periods |
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Reminder |
advertising can be useful for a firm that has achieved brand awareness of at least 50% |
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Corporate |
advertising is useful for a firm with two products because of spillover effects. (For a firm with one product, corporate advertising is less effective |
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5-C's are... |
Context - Company, Collaborators, Competition - Customers |
