Marketing Final

Front 1

List the historical emergence of marketing trends

Back 1

Production
Product
Sales
Marketing
Societal

Front 2

Define Demand

Back 2

Wants backed by purchasing power

Front 3

Draw the Loyalty matrix

Back 3

High Behavior Low Behavior
HighAttitude Loyalty-Latent Loyalt
LowAttitudeInertia- No loyalty

Front 4

Define Customer Relationship Management (CRM)

Back 4

Building relationships by delivering satisfaction

Front 5

What is customer perceived value:

Back 5

Perceived benefits minus cost relative to competitors

Front 6

Economics of Loyalty

Back 6

1. Save Acquisition cost
2. base profit
3. revenue growth
4. cost savings
5. referrals
6. price premium

Front 7

6 Reasons for Customer Relationship Management (CRM)

Back 7

1. reduce cost to acquire customer
2. reduce the cost to serve customer
3. Help firm identify unprofitabl customers
4. facilitate experimentation/learning
5. Help Firm Measure ROMI
6. Allow firm to focus Marketing Dollars

Front 8

CRM Process

Back 8

1. Form Database
2. Select Customers
3. Relationship Strategies
4. Monitor Results

Front 9

What areas does CRM Capture and which does it ignore?

Back 9

Captures
1. Personal information
2. Customer History
3. Profitability Info

Ignores:
1. Customer Needs

Front 10

Problems with Frequency Programs

Back 10

1. Rewards too high
2. Ubiquity
3. Loyalty
4. Lack of Communication

Front 11

What is the Net Promoter Score?

Back 11

Promoters less detractors

Front 12

What are the ways of measuring satisfaction?

Back 12

These work:
1. Satisfaction survey
2. Top-Two (on 5 point scale)
3. % complainers
4. Purchase Likelihood

These Don't:
1. Net Promoter Score
2. # Actual Recomendations

Front 13

Simplified CLV equation

Back 13

SCLV= ((M- C)/ (1-r+i))-AC

M=margin customer generates
C= Marketing cost of retaining customer
i=discount
r= retention rate
A= Acquisition Cost

Front 14

What is customer Equity?

Back 14

Total combined CLV of all the company's current and profitable customers

Front 15

What is the BCG Growth Share Matrix of Portfolio Management?

Back 15

high market growth: star - ?
low Market growth: cash cow- dog
high market share-low MS

Front 16

What is the Product/Market Expansion Grid

Back 16

Existing Products |New Products

Ex Market: Mkt penet Prdct dev

New Market: Mkt devlp diversificat

Front 17

What is the marketing Framework?

Back 17

Understand value= analysis
create value= marketing strategy & marketing mix
Capture value=Marketing mix
Sustain Value= CRM

Front 18

What doe we analyse in the understand segment of the marketing framework?

Back 18

customers, company, competitors, collaborators, context

Front 19

What is the marketing strategy under the create value segment of the marketing framework

Back 19

Segmenting -> targeting -> positioning

Front 20

Marketing Mix

Back 20

Product/Place/price/ promotion

Front 21

Market share?

Back 21

Brand sales/ category sales

Front 22

Net Marketing Contribution (NMC)?

Back 22

Sales-COGS-Marketing expenses

Front 23

Return on Marketing Investment?

Back 23

NMC/Marketing expenses

Front 24

Marketing Return on Sales (MROS)?

Back 24

NMC/Sales

Front 25

Macroeconomic Factors Effecting Company

Back 25

1. Demographic
2. Economic
3. Natural
4. Technological
5. Political
6. Cultural

Front 26

Marketing Research Process

Back 26

1. Define Problem
2. Secondary Research
3. Design Primary Research
4. Collect Data
5. Analyze Data
6. Communicate Results

Front 27

Research Approaches

Back 27

Primary
1. Exploratory
- Informal
- Qualitative
- Observation
2. Descriptive
- Surveys
- Panels
3. Casual
- Experiments
- Models and other simulations

Secondary
1. Internal
2. External

Front 28

Define Need

Back 28

Felt State of Deprivation

Front 29

Characteristics affecting Consumer Behavior

Back 29

Cultural
-culture
-subculture
-social class
Social
-reference groups
-family
roles & status
Personal
- age & lifestyle
-occupation
-economic situation
- personality
Psychological
- motivation
- perception
Buyer

Front 30

Maslow's Hierarchy

Back 30

1. Physiological needs
2. safety needs
3. social needs
4. esteem needs
5. self actualization

Front 31

Buyer Decision Process

Back 31

1. Need recognition
2. information search
3. evaluation of alternatives
4. purchase decision
5. post purcahse behavior

Front 32

Choice Overload

Back 32

Too many choices can decrease sales

Front 33

Types of Buying Decision Behavior

Back 33

High involvement | Low Invlmnt
high diff: complex - variety seekin
low diff: dissonance- habitual

Front 34

Which factors affecting consumer behavior can a marketer most easily influence

Back 34

Psycholgical factors

Front 35

contribution margin

Back 35

Revenue - variable cost

Front 36

Unit contribution margin (UCM)

Back 36

price/unit - vc/unit

Front 37

Margin

Back 37

contribution margin as a percentage of sales

Front 38

Marke-up

Back 38

Contribution Margin as a percent of Variable cost

Front 39

Break even

Back 39

fixed cost/UCM

Front 40

Elasticity

Back 40

= % change in quantity/ % change in Price

Front 41

What affects Price Sensitivity

Back 41

1. product uniqueness
2. competitors
3. switching costs
4. ease of comparisons
5. who pays
6. price relative to income
7. price magnitude

Front 42

3 degrees of Price discrimination

Back 42

1st degree: discriminate by individual
2nd degree: discriminate by unobservables
3rd degree: discriminate by observables

Front 43

Illegal forms of price discrimination

Back 43

1. predatory pricing
2. price maintenance
3. price fixing
4. 1st degree discrimination

Front 44

Personal Selling

Back 44

Personal Presentation by the firm's sales force

Front 45

6 Steps to Managing the Sales Force

Back 45

1. designing sales force strategy & structure
2. recruiting and selecting sales people
3. training sales people
4. compensating sales people
5. supervising sales people
6. evaluating sales people

Front 46

Types of sales force structure

Back 46

1. territorial
2. product
3. customer
4. complex

Front 47

Workload Approach:

Back 47

Group accounts into different classes to determine the number of sales people needed

Front 48

Key drivers of successful sellers

Back 48

1. Intrinsic Motivation
2. disciplined work style
3. ability to close
4. ability to build relationships

Front 49

Major Consumer Promotion Tools

Back 49

Pull
- samples
- coupons
- rebates
- price packs
- event marketing

Push
- trade allowances
- trade incentives
- trade shows

Front 50

Public Relations

Back 50

Advertising maintains brands publicity builds brands

Front 51

Marketing Segmentation Process

Back 51

1. Basis for segmentation
2. Develp Profits
3. Measure attractiveness
4. Choose Targets
5. Differentiate Offering
6. Choose Positioning

Front 52

Segmentation Bases

Back 52

Demographic
Geographic
Behavioral
Psychological

Front 53

Criteria for Effective Segments

Back 53

Differentiable: do segments behave differently
Substantial: What are segment profit potentials
Measurable: can segments be identified
Accessible: can segments be reached
Actionable: can segments be addressed

Front 54

Targeting depends on

Back 54

1. strategic fit within firm
2. profitability potential

Front 55

Total Addressable Market

Back 55

N*Q*P

n= number of buyers in market
q= average quantity purchased
p=average price per year

Front 56

Product Life Cycle

Back 56

1. Product Development
2. Introduction
3. Growth
4. Maturity
5. Decline

Front 57

Adoption Curve

Back 57

Innovators
- risk takers/new cool
Early Adopters
- opinion leaders/competitive advantage
Early Majority
- Deliberate Adopters/ Full Solution
Late Majority
- Skeptical/cheap solution
Laggards
- Traditional Bound/Commodity

Front 58

Where is the chasm in the business adaption curve

Back 58

Between early adopters and early majority

Front 59

What is the channel?

Back 59

All entities who participate in the flow of products from the manufacturers to the final customer

Front 60

What are the two main elements of a channel?

Back 60

- Marketing
- Logistics

Front 61

Why do companies use intermediaries?

Back 61

They reduce transactions

Front 62

4 steps to chinal demand

Back 62

1. Analyze customer needs
2. Set Channel Objectives
3. Identify Major Alternatives
- Type (direct, retail, wholesale_
- Number of intermediaries
- responsibilites of intermediaries
4. Evaluate alternatives

Front 63

Transaction Value of using intermediaries

Back 63

Enableing exchange
-negotiation, financing, risk taking, contract

Front 64

Logistical value of using intermediaries

Back 64

Delivering products to the right plae at the right time for the right quantity

Front 65

Facilitating Value of intermediaries

Back 65

Making offerings attractive
- Market research, communications, marekting/custemer service, relationship management, product assembly

Front 66

6Ms of communication

Back 66

1. Market
2. Mission
3. Message
4. Media
5. Money
6. Measurement

Front 67

AIDA

Back 67

Interest Attention Desire Action

Front 68

What level thinker are most individuals

Back 68

level 2

Front 69

Levels of Competition

Back 69

1. form competition
2. category competition
3. generic competition
4. budget competition

Front 70

SWOT

Back 70

Industry: Oppurtunities threates
Company: strength weaknesses

Front 71

Position:

Back 71

How a product is viewed by consumers on important attributes relative to competing products

Front 72

Positioning:

Back 72

The actions a marketer takes to influence a products position

Front 73

What are the two purposes of Packaging?

Back 73

Functional
- protect
- inform
Strategic
- Influence instore choice
- reinforce brand image
- differentiate the brand
- advertise

Front 74

Service-Profit Change

Back 74

1. Internal Service Quality
2. Satisfied Employees
3. Greater Service Value
4. Satisfied customers
5. Profits

Front 75

Three types of marketin

Back 75

company to employees: internal marketing
Employees to customers: interactive marketing
Company to Customers: External marketing

Front 76

How Does branding create value?

Back 76

1. can't be copied
2. lower search costs
3. leverage the power of symbols
4. create a "virtuous cycle"

Front 77

What is the virtuous cycle in marketing?

Back 77

__

Front 78

6 attributes of Good Brand Names

Back 78

1. suggestive (of benefits)
2. simple (easy to remember)
3. Distinct
4. extendable
5. Translatable (into other languages)
6. Defensible (legal protection)

Front 79

Brand Name category

Back 79

Exting product existing brand name: Line extension

Existing Product New Brand Name: Multi brand name

New Product new Brand Name: brand extension

New Product New Brand Name: new brand

Front 80

Measuring Brand Equity

Back 80

Price Premium
Brand Comparison

Front 81

What is the New-Product Development Process

Back 81

1. idea generation
2. Idea Screening
3. Concept Development and Testing
4. Marketing Strategy Development
5. Business Analysis
6. Product development
7. Test Marketing
8. Commercialization

Front 82

8 IDEO Brainstorming Rules

Back 82

1. No more than an hour
2. Defer Judgment (no "buts)
3. Build on ideas (only "ands")
4. Encourage wild ideas
5. Go for quantity (100+ ideas)
6. Be visual (lots of writing; big boards)
7. Stay focused on the topic
8. One conversation at a time

Front 83

3 stages of Prototyping

Back 83

Stage 1: Low quality (many prototyps, inspire ideas)
Stage 2: Medium Quality (Some Prototypes: evolve ideas)
Stage 3: High Quality (few prototypes: validate ideas)