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49 Cards in this Set
- Front
- Back
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What are the steps in the consumer decision process?
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a) Need Recognition
b) Information Search c) Alternative Evaluation d) Purchase e) Post Purchase |
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What are the 5 factors that determine the level of consumer involvement in a buying decision?
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a) Previous Experience
b) Interest c) Perceived Risk d) Situation e) Social Visibility |
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What is culture? How is culture transmitted by groups? What institutions transmit culture?
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The shared meanings, beliefs, morals, values, and customers of a group of people
Transmitted by words, literature, and institutions, culture gets passed down from generation to generation and learned over time |
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What are the characteristics of social classes in the United States?
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Persons within a class behave more alike
Persons are ranked as occupying inferior or superior positions according to their social class. Social class is not indicated by a single variable Social class is continuous rather than discrete, with individuals able to move between classes. |
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What is a reference group? What kinds of reference groups are there?
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Reference group is one or more persons whom an individual uses as a basis for comparison regarding beliefs, feelings, and behaviors
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What is an opinion leader? What are the characteristics of opinion leaders? What is the best way to reach opinion leaders?
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Opinion leader – someone who leads the reference group in that particular subject
Opinion leadership tends to be subject specific, that is, a person that is an opinion leader in one field may be a follower in another field. |
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In the perception process, what is: Selective attention?
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Selective attention: This level of attention refers to the capacity to maintain a behavioral or cognitive set in the face of distracting or competing stimuli. Therefore it incorporates the notion of "freedom from distractibility"
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In the perception process, what is: Selective distortion?
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Selective Distortion is a term that refers to the tendency of people to interpret information in a way that will support what they already believe.
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In the perception process, what is: Selective retention?
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Selective retention is the process when people remember messages that are closer to their interests, values and beliefs more accurately, than those that are in contrast
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What are the 6 basic principles of Maslow’s theory of motivation? What is the theory’s application to modern marketing? What do we mean when we say that the hierarchy is culturally biased?
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1) Self-actualization needs (self-development and realization )
2) Esteem needs (self-esteem, recognition, status) 3) Social needs (sense of belonging, love) 4) Safety needs (security, protection) 5) Physiological needs (hunger, thirst) |
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What is a value? What are some core American values?
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Value: an enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct.
American values are life, liberty and pursuit of happiness |
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What are the characteristics of a “good” market segment?
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1.Very homogeneous within the segment
2.Very heterogeneous between the segments 3.Substantial |
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What are the major groups of segmentation bases for consumer markets?
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1)Geographic
2)Demographic 3)Psychographic 4)Benefits 5)Geodemographic 6)Loyalty |
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What is the basic premise of “geodemographics?”
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Uses a combination of geographic demographic and lifestyle characteristics to classify consumers.
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What are the 3 strategies that could be used for selecting target markets?
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Undifferentiated segmentation strategy or Mass Marketing
Differentiated segmentation strategy Concentrated Segmentation strategy |
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What is the danger that marketers run when they introduce new products in market segments that are adjacent to those of their existing products?
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They risk losing customers that purchase their existing products.
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What is positioning?
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Positioning It’s a process of defining the marketing mix variables, so that target customers have a clear distinctive desirable understanding of what the product does or represents – in comparison with competing products.
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What is repositioning?
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Repositioned products – products with a particular use, and now are being repositioned to a different market segment
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On what basis are consumer products classified?
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Goods, goods w/ services, services and goods, services
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What are (a) convenience (b) shopping (c) specialty and (e) unsought products?
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Convenience – purchased frequently, without much price comparison (a loaf of bread milk)
Shopping – comparison between products, price factors in, Specialty products – buy as a preference, there is no substitute, Unsought products – you either do not know that they exist, or that normally need to be heavily sold because you do not think you need them |
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What is a trademark? How are trademark rights determined in the USA?
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Trademark: the part of the brand that is given legal protection
How? The right of brand comes from usage. Person who uses it first gets to keep it. |
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How long does trademark protection last?
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It can last forever , however federal trademark is 10 years , with 10 year renewal terms.
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How can you loose your trademark protection?
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You can lose it if it’s the first of its kind and the public eventually begins to use the brand name instead of the item’s actual noun (Kleenex).
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What is a manufacturer’s brand?
What is a private brand (private label)? |
Manufacturer’s Brand: owned and managed by the manufacturer
Private Brand: Store brands, house brands or owned brands – products developed by retailers. (Publix) |
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What is cobranding?
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The practice of marketing two or more brands together on the same package or promotion.
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What is the first filter in the new product development process?
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Idea generation (Idea screening)
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At what stage(s) do you eliminate ideas for new products?
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Idea screening
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What happens in the Marketing Strategy Development stage?
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Identify the target market, then the 4 P’s, the basis upon which the firm plans to build a sustainable competitive advantage
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What is concept testing?
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The process in which a concept statement is presented to potential buyers or users to obtain their reactions.
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At what stage would you build the prototype of your product?
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Product development:
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What is market testing?
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Test marketing introduces the offering to a limited geographical area prior to a national launch.
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When would you not use market testing?
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Not use it because incremental improvements on existing products (such as a new flavor of soda), small niche products because they only appeal to small market, products that could easily be copied by competition, etc.
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For what kind of products was the Product Life Cycle (PLC) theory originally developed?
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Telephone, the transistor semiconductor, the walkman portable cassette player, internet browser, personal digital assistant, itunes and blu-ray.
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How do profits look in the introductory stage of the PLC? What are some of the reasons why this is so?
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Negative or low.
High start-up costs and low levels of sales revenue |
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What 2 pricing strategies could you use in the introductory stage of the PLC? Why would you use one instead of the other?
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(Skimming) – selling with a high price for pure profit
(Penetration pricing )- Sell at a low price so you can get lots of customers, penetrating into the market competition and steal market share from them. |
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Why are sales slow in the introductory stage of the PLC? Who is buying the product during the introductory stage?
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1.People are hesitant to try it out
2.No one knows about it 3.The product is not yet in all of the outlets |
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When do healthy profits begin to appear in the PLC?
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Growth Stage
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When does competition arrive in the PLC?
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Growth Stage
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Normally, what is the longest stage of the PLC?
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Maturity Stage
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At what stage of the PLC do you begin to plan the “New and Improved” version of your product? When should you introduce it?
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A) Growth Stage
B) Maturity Stage |
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What are some of the strategies that you could use in the Maturity stage of the PLC?
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New users (new mkt segments)
Different product uses Increased quantity of use Reposition Relaunch |
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What are the 3 strategies that you could use in the Decline stage of the PLC?
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Harvest (Milk it)
Retrench. Divest – while the product still has some value, sell it to another company, and maybe they can still profitably carry the product. |
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At what 2 stages of the PLC would you use coupons?
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Introduction and Maturity stages
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Who are the first customers to adopt an innovation? The last?
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First - Innovators. Last - Laggards.
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What is a service?
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an intangible offering that involves a deed, performance, or effort that cannot be physically possessed.
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What are the 4 unique characteristics of services, the problems they create for marketers, and how do marketers overcome these problems?
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a) intangible, inseparable, variable, perishable
b) Because services like airline flights and hotel beds are perishable, many marketers attempt to match demand with supply using: A.logistical management. B.magazine advertising C.tangibility promotions. D.pricing strategies. product vouchers |
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What is the Standards gap?
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Standards gap – Certain level of standards for what you want to provide, could be a gap between your standards and what is provided
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What is the Delivery gap? What are 3 methods that can be used to reduce it?
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Delivery Gap is Delivering Service Quality
a. Empowering employees b.Use of technology c.Provide support & incentives |
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What is the Communications gap? What are some ways in which you can manage customer expectations?
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Communications Gap is communicating the service promise
a.Promise only what you can deliver b.Communicate service expectations |
