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252 Cards in this Set
- Front
- Back
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____________________ is the study of how individuals, groups, and organizations select, buy, use and dispose of goods, services, ideas, or experiences to satisfy their needs and wants. Ch. 6.150
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consumer behavior
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Which factors influence a consumer's buying behavior. 6.150
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cultural, social, and personal factors
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What is the fundamental determinant of a person's wants and behavior? 6.150
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culture
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What provides more specific identification and socialization for their members? 6.150
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subcultures including nationalisties, religions, racial groups, and geographic regions
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When do companies start designing specialized marketing programs to serve subcultures? 6.150
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when they get large and affluent enough
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What do virtually all human societies and in what form? 6.152
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social stratification in the form of social classes
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What are the characteristics of social classes? 6.153
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1. those within each class tend to be alike in dress, speech patterns, and recreational preferences
2. persons are perceived as occupying inferior or superior positions according to social clas 3. cluster of variables indicate social class rather than one 4. individuals can move up and down during lifetime |
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What affects consumer behavior? 6.150
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cultural, social, and personal factors
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What are the social factors affecting buying behavior? 6.154
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reference groups, family, and social roles
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What is a "reference group"? 6.154
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all the groups that have a direct (face-to-face) or indirect influence on their attitudes or behavior
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Reference groups having a direct influence are called _________. Some of these are ___________ with whom the person interacts fairly continuously and informally, such as family, friends, etc. People also belong to _______ such as religious, professional, trade union, which tend to be more formal. 6.154
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membership groups
primary groups secondary groups |
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How do reference groups influence members? 6.154
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1. expose an individual to new behavior and lifestyles
2. influence attitudes and self-concept 3. create pressures for conformity |
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What are aspirational groups and dissociative groups? 6.154
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groups to which people do not belong but either hope to join or those groups values of behavior which an individual rejects
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What tactic should a marketer take in reaching a strongly influenced reference group? 6.154
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reach opinion leader who offers informal advice or information
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How do marketers reach opinion leaders? 6.154
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identifying their demographic and psychographic characteristic, identifying the media they read, and directing messages at them
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Which is the most influential primary reference group? 6.155
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family
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What is the family of orientation? 6.155
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consists of parents and siblings. from parent a person acquires and orientation toward religion, politics, economics, and a sense of personal ambition, self-worth, and love.
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What is the family of procreation? 6.155
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one's spouse and children
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We can define a person's position in each group in two ways. A _____ consists of the activities a person is expected to perform. Each role carries a _____. 6.156
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role, status
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What age and stage in the life cycle affect consumer behavior? 6.156
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family life cycle - number, age, and gender of family
psychological life cycle - passages critical life events/transitions |
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What are the personal factors which affect consumer behavior? 6.156
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age and stage in the life cycle
occupation and economic circumstances personality and self-concept lifestyle and values |
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Consumer often choose and use brands that have a brand personality consistent with their own ___________ , although the match may instead bf based on the consumer's ________ or even on ______. 6.158
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actual self-concept (how we view ourselves)
ideal self-concept (how we would like to view ourselves) others' self-concept (how we think others see us) |
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What are the traits of brand personalities according to Stanford's Jennifer Aaker? 6.158
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1. sincerity
2. excitement 3. competence 4. sophistication 5. ruggedness |
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What is LOHAS" 6.159
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Lifestyles of health and sustainability
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What are the LOHAS market segments? 6.159
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sustainable economy
healthy lifestyles ecological lifestyles alternative health care personal development |
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What are lifestyles shaped by? 6.160
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money constrained or time constrained
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What is the stimulus-response model of consumer behavior? 6.162
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marketing + other stimuli leads to consumer psychology/characteristics which guides buying decision process and then a purchase decision
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In the stimulus-response model what are the four consumer psychology processes? 6.162
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motivation, perception, learning, memory
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In the stimulus-response model what are the four marketing & other stimuli? 6.162
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marketing - products & services,price,distribution, communications
other - economic, technological, political, cultural |
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A need becomes a _______ when it is aroused to sufficient level of intensity to drive us to act. 6.162
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motive
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What are the three best-known theories of human motivation? 6.162
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Sigmund Freud, Abraham Maslow, and Frederick Herzberg
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Sigmund Freud assumed that the psychological forces shaping people's behaviors are largely _______, and that a persona cannot fully understand his or her own ______.
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unconscious
motivations |
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Which technique is used to trace a person's motivations from the stated instrumental ones to the more terminal ones? 6.162
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laddering within freud's theory
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What are word associations, sentence completions, picture interpretation, and role playing and where are they used? 6.162
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projective techniques used to uncover deeper motives/freud's theory
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Which theory has a hierarchy of needs? 6.163
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Maslow's hierarchy of needs
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What are the levels of Maslow's hierarchy of needs? 6.163
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1. physiological needs
2. safety needs 3. social needs 4. esteem needs 5. self actualization needs |
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What is the basic principle of Maslow's theory? 6.163
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People will try to satisfy their most important needs first. When a person succeeds they will try to satisfy the next most important need.
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Who developed a two-factor theory which distinguishes dissatisfiers from satisfiers? 6.163
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Frederick Herzberg
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What are the two implications of Herzberg's theory? 6.163
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1. avoid dissatisfers - eg poor training manual
2. identify major satisfiers or motivators of purchase and supply them |
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_________ are more impotrant than the reality because they affect consumers' actual behavior. ______ is the process by which we select, organize, and interpret information inputs to create a meaningful picture of the world. 6.163
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perception
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Why can people emerge with different perceptions of the same object? 6.163
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selective attention, selective distortion, and selective retention
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What are things that people are more likely to give selective attention to? 6.164
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1. notice stimuli that relate to a current need
2. notice stimuli they anticipate 3. notice stimuli whose deviations are large in relationship to the normal size of the stimuli (special discounts) |
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What is selective distortion? 6.164
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Tendency to interpret information in a way that fits our preconceptions.
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What is selective retention? 6.164
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Likely to remember good points about a product we like and forget good points about competing products.
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what is subliminal perception? 6.164
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people argue that marketers embed covert, subliminal messages in ads which consumers are not aware of but it affects their behavior
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What is the hedonic bias? 6.165
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people have a general tendency to attribute success to themselves and failure to external causes
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A ____ is a strong internal stimulus impelling action. ____ are minor stimuli that determine when, where, and how a person responds. 6.164
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drive
cues |
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___________ teachers marketers that they can build demand for a product by associating it with strong drives, using motivating cues, and providing positive reinforcement. 6.165
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learning theory
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What is the difference betwen short term memory and long term memory? 6.165
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limited and temporary vs. unlimited and permanent
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What is the associative network memory model? 6.165
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LTM as a set of nodes and links; nodes store infrmation and are connected by links.
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_________ consist of all brand-related thoughts, feelings, perceptions, images, experiences, beliefs, attitudes, and so on. 6.165
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brand associations
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What is memory encoding? 6.166
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describes how and where information gets into memory.
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What are the three factors important in the successful recall of brand information? 6.166
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1. interference from other products to cause consumer to overlook/confuse new data
2. time between exposure to info and encoding matters; longer delay is weaker 3. information may be available but not accessible without proper retrieval cues |
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What are the five stages of buying-decision process through which a consumer passes? 6.167
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problem recognition
information search evaluation of alternatives purchase decision postpurchase behavior |
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When does the buying process start for a consumer? 6.168
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when a buyer recognizes a problem or need triggered by internal or external stimuli
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What are the two levels of involvement with information search during the buying-decision process? 6.168
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milder search called heightened attention
active information search - more actively looking |
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What are the information sources available to consumers to help with information gathering in the buying-decision process? 6.168
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personal - family friends
commercial - websites, advertising public - mass media experiential - trying it |
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Which information source provides a legitimizing or evaluation function within the buying-decision process? 6.168
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personal sources
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What are the successive brand sets involved in the consumer decision making? 6.169
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total set - awareness set - consideration set - choice set - decision
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During the evaluation phase the consumer evaluates products and services by combining their brand beliefs to positives and negatives according to importance. What is this called? 6.171
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expectancy-value model of attitude formation
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What is the difference between real repositioning, psychological repositioning, and competitive depositioning? 6.171
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real repositioning - redesign the product which will evaluate better with consumer
psychological repositioning - attempt to alter beliefs about a product competitive depositioning - alter beliefs about competitors brands |
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What are the five decisions a consumer makes during a purchase intention? 6.172
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brand, dealer, quantity, timing, and payment method
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What are the two models of consumer choice? 6.172
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compensatory model like expectancy-value model
noncompensatory model - heuristics/rules of thumb/mental shortcuts in decision process |
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What are the risks a consumer perceives in buying and consuming a product? 6.173
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functional, physical, financial, social, psychological, time
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What are two high consumer involvement during the purchase decision process? 6.174
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expectancy value model
elaboration likelihood model |
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Which model has two means of persuasion - the central route, and the peripheral route? 6.174
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elaboration likelihood model
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What are four techniques to try and convert a low-involvement product into one of higher involvement? 6.175
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1. link product to some involving issue
2. link to some personal situation 3. design advertising to trigger strong emotions related to personal values or ego defense 4. add an important feature |
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What are different heuristics which come into play in everyday consumer decision making? 6.175
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availability
representativeness anchoring and adjustment |
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_________ refers to the way consumers code, categorize, and evaluate financial outcomes of choices. 6.177
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mental accounting
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How can marketers learning about the stages in the consumer buying process for their product? 6.178
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introspective, retrospective, prospective, prescriptive
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What is organizational buying? 7.182
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decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers.
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What is the diff between consumer and business marketers? 7.182
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1. fewer, larger buyers
2. close supplier-customer relationship 3. professional purchasing 4. multiple buying influences 5. multiple sales calls 6. derived demand 7. inelastic demand 8. fluctuating demand 9. geographically concentrated buyers 10. direct purchasing |
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The demand for business goods is ultimately derived from the demand for what? 7.185
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consumer goods
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The total demand for many business goods and services is ___ - that is, not affected by price changes. 7.185
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inelastic
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A rise of only 10% in consumer demand can cause as much as a 200% rise in business demand for products. A 10% fall may cause a complete collapse in business demand. What is this called? 7.185
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acceleration effect
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What are the three types of buying situations in a business market? 7.185
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straight rebuy
modified rebuy new task |
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Which buying situation is it when purchasing department reorders supplies on a routine basis? 7.185
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straight rebuy
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Which type of business buying provides the greatest opportunity for the business marketer? 7.186
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new task buying
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What are the stages of new task buying? 7.186
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awareness, interest, evaluation, trial, and adoption
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What is systems buying? 7.186
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buying a total solution to a problem from one seller
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What is systems contracting? 7.187
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single supplier provides the buyer with his entire requirement of MRO supplies
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What is MRO? 7.187
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maintenance, repair, and operating
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Who buys trillions of dollars' worth of goods and services needed by business organizations? 7.188
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purchasing agents in straight + modified rebuy
other department personnel in new-task |
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What is the decision-making unit of a buying organization called? 7.188
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buying center - all individuals and groups who participate in the purchasing decision-making process, who share some common goals and the risks arising from the decision
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What are the seven roles in the business purchase decision making process? 7.188
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1. initiators
2. users 3. influencers 4. deciders 5. approvers 6. buyers 7. gatekeepers |
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What are the eight stages ("buyphases") identified by Robinson? 7.192
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1. problem recognition
2. general need description 3. product specification 4. supplier search 5. proposal solicitation 6. supplier selection 7. order-routine specification 8. performance review |
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What are the tools for companies to purchase electronically? 7.193
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catalog sites, vertical markets, pure-play auction sites, spot markets, private exchanges, barter markets, buying alliances
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What is product-value analysis (PVA)? 7.193
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approach to cost reduction that studies components to determine whether they can be redesigned or standardized or made by cheaper methods of production
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What is the difference between vertical and functional e-hubs? 7.194
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vertical - centered on industries
functional - centered on tasks/functions |
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What are ways a business marketer can counter requests for a lower price? 7.195
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1. show that TCO is lower
2. value of the services is superior |
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What are two reasons companies shy away from single-source? 7.197
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threat of labor strike, get too comfortable in relationship and lose competitive edge
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When are stockless purchase plans or blanket contracts used? 7.198
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when it's MRO items that will be regularly used
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What is vendor managed inventory? 7.198
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shifting ordering responsibility to their suppliers who monitor customer's inventory levels and replenish it
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What are eight buyer-supplier relationship categories? 7.201
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1. basic buying and selling
2. bare bones 3. contractual transaction 4. customer supply 5. cooperative systems 6. collaborative 7. mutually adaptive 8. customer is king |
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What are the three requirements for effective target marketing? 8.208
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1. identify/profile distinct groups (segmentation)
2. select segment to enter (targeting) 3. for each segment, communicate distinctive benefits (market positioning) |
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What does Hendry Ford's strategy of offering the model to-Ford in one color epitomize? 8.208
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mass marketing - seller engages in the mass production, distribution and promotion of one product for all buyers
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What are the four levels of micromarketing? 8.208
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segments, niches, local areas, and individuals
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What was the recommendation of Anderson and Narus in the area of target marketing? 8.208
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develop flexible market offering with a naked solution and added discretionary options to suit the segment members
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What are preference segments? 8.209
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1. homogeneous preferences
2. diffused preferences 3. clustered preferences |
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Marketers usually identify ______ by dividing a segment into __________. 8.209
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niches
subsegments |
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What is local or grassroots marketing? 8.210
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concentrate marketing activities on getting as close and personally relevant to individual customers as possible.
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What does it mean to customerize a firm? 8.212
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Customerization combined mass customization with mass marketing to empower customers to design and product and service offering of their choice. The company provides a platform and tools and rents it to customers. When a company is able to respond to a customer 1-1 then it is customerized.
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What are the two broad groups of variables to segment consumer markets? 8.213
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descriptive characteristics: geographic, demographic, psychographic
behavioral considerations - consumer responses to benefits, use occasions, or brands |
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What are bases for segmenting consumer markets? 8.213
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geographic
demographic psychographic behavioral |
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What are the major geographic segmentation variables? 8.214
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region, city, density, climate, education, generation, nationality, user status, usage rate, loyalty status, readiness stage
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What is the PRIZM approach? 8.215
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Potential Rating index by Zip markets developed by Claritas Inc. Classifies over half a million US residential neighborhoods into 14 distinct groups and 66 distinct lifestyle segments called Prizm clusters.
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What are the five broad categories of PRIZM? 8.215
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education and affluence, family life cycle, urbaniztion, race and ethnicity, and mobility
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Name some PRIZM clusters. 8.215
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Young Digerati
Beltway Boomers The Cosmopolitans Old Milltowns |
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What are the variables in demographic segmentation? 8.215
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age, family size, family life cycle, gender, income, occupation, education, religion, race, generation, nationality, and social class
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What is the difference between life cycle and life stage? 8.216
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Life stage is a person's major concern (e.g. going through a divorce) while life cycle is part of the age.
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What does it mean that companies are finding consumer markets are "hourglass shaped"? 8.218
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US consumers migrate toward both discount and premium products
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What are cohorts? 8.218
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generation profoundly influenced by the times in which it grows up - sharing the same major cultural, political, and economic experiences and have similar outlooks and values
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What is psychographics? 8.221
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science of using psychology and demographics to better understand consumers
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What is psychographic segmentation? 8.221
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buyers are divided into different groups on the basis of psychological/personality traits, lifestyles, or values.
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What is a popular commercially available classification systems based on psychographic measurements? 8.221
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SRI Consulting Business Intelligence's framework VALS
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What is VALS? 8.221
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classifies US adults into eight primary groups based on answer to questionnaire (4 demographic+35 attitudinal questions)
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What are the main dimensions of the VALS segmentation? 8.221
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consumer motivations - horizontal
consumer resources - vertical |
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What are the three primary motivations within the VALS system for a consumer? 8.221
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ideals, achievement, and self-expression
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What are the four groups with higher resources and higher motivation within the VALS system? 8.221
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innovators, thinkers, achievers, experiencer
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What are the eight groups within the VALS system? 8.222
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thinkers, achievers, experiencers, believers, strivers, makers, innovators, and survivors
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Which are the groups with the low resources and low innovation within the VALS system? 8.222
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believers, strivers, makers, survivors
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In consumer markets people play five roles in a buying decision. They are... 8.223
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initiator, influencer, decider, buyer, and user
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Many marketers believe in this type of variable as the best starting point for determining market segments. 8.223
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behavioral variables
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What are the four groups on brand loyalty status? 8.224
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hard-core loyals
split loyals shifting loyals switchers |
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What are the four groups in the conversion model? 8.225
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convertible
shallow average entrenched |
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What are the four groups for nonusers of a brand based on their "balance of disposition" in the conversion model? 8.226
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1. strongly unavailable
2. weakly unavailable 3. ambivalent 4. available |
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What are the major segmentation variables in the business market? 8.227
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demographic
operating variables purchasing approaches situational factors personal characteristics |
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What is Roger Best's seven steps of business marketing segmentation process? 8.228
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1. needs-based segmentation
2. segment identification 3. segment attractiveness 4. segment profitability 5. segment positioning 6. segment "acid test" 7. marketing-mix strategy |
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To be useful, business market segments must rate favorably on five key criteria. They are.. 8.228
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measurable
substantial accessible differentiable actionable |
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What are the five patterns of target market selection? 8.228
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single-segment concentration
selective specialization product specialization market specialization full market coverage |
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Microsoft targets which market segment? 8.229
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full market coverage
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What is undifferentiated marketing? 8.229
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ignores segment differences and goes after the whole market with one offer
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What is differentiated marketing? 8.229
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firm operates in several market segments and designs different product for each
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When should a company do countersegmentation? 8.230
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when it has oversegmented their markets
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What is megamarketing? 8.231
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strategic coordination of economic, psychological, political, and public relations skills, to gain the cooperation of a number of parties to enter or operate in a given market
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Define strategic brand management. 9.236
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combines the design and implementation of marketing activities and programs to build, measure, and manage brands to maximize their value.
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What are the four steps of strategic brand management? 9.236
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identifying and establishing brand positioning
planning and implementing brand marketing measuring and interpreting brand performance growing and sustaining brand value |
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What is the AMA definition of a brand? 9.236
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"a name, a term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors."
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What differences can there be between different brands? 9.236
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functional, rational, or tangible
symbolic, emotional, or intangible |
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What do brands do for firms? 9.237
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1. simplify product handling or tracing
2. organizes inventory/accounting reords 3. offers legal protection for unique features |
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______ is endowing products and services with the power of a brand. 9.238
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branding
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It is possible to brand... 9.238
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physical good
service store person place organization idea |
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________ is the added value endowed on products and services. It may be reflected in the way consumers think, feel, and act with respect to the brand. 9.238
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brand equity
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What is customer-based brand equity? 9.240
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the differential effect that brand knowledge has on consumer response to the marketing of that brand. Positive means consumers react favorably when the brand is identified. Negative means not favorable.
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What are the three key ingredients of customer-based brand equity? 9.240
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1. brand equity arises from differences in consumer response
2. differences in response are a result of consumer's knowledge about the brand 3. differential responses by consumers that make up brand equity is reflected in perceptions, preferences, and behavior related to all aspects of the marketing of a brand |
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What is brand knowledge? 9.241
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all the thoughts, feelings, images, experiences, beliefs, and so on that become associated with the brand.
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From the perspective of brand equity, marketers should think of all the marketing dollars spent on products and services each year as investments in ________________________. 9.242
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consumer brand knowledge
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What is a brand promise? 9.242
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marketer's vision of what the brand must be and do for consumers
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How does one build iconic, leadership brads according to Oxford's Douglas Holt? 9.242
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assemble cultural knowledge, strategize according to cultural branding principles, and hire/train cultural experts
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What is BAV? 9.243
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brand asset valutor developed by Y&R (Young and Rubicam)
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What does BAV measure? 9.243
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provides comparative measures of the brand equity of thousands of brands across hundreds of different categories
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What are the five pillars of brand equity according to BAV? 9.243
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differentiation
energy relevance esteem knowledge |
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Differentiation, energy and relevance in BAV combine to determine ______________. 9.243
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energized brand strength (vertical axis in power grid)
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In BAV, Esteem and knowledge together create ________ which is more of a "report card" on past performance. 9.243
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brand stature (horizontal axis in power grid)
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What is the relationship among the energized brand strength and brand stature in the BAV? 9.243
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brand's "pillar pattern"
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What is BRANDZ? 9.243
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Millward Brown and WPP developed it as a model of brand strength. The heart of it is the BrandDynamics pyramid. Brand-building follows a sequential series of steps.
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What are the five steps in the BrandDynamics BRANDZ pyramid? 9.244
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presence - do i know about it
relevance - does it offer me something performance - can it deliver advantage - does it offer something better than others bonding - nothing else beats it |
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What are the different brand equity models? 9.243
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brand asset valuator (BAV)
Brandz aaker model brand resonance model |
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What is the aaker model? 9.244
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views brand equity as the brand awareness, brand loyalty and brand associations that combine to add or to subtract from the value provided by a product or service
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What are the six brand building blocks steps in the brand resonance model? 9.245
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brand salience
brand performance brand imagery brand judgments brand feelings brand resonance |
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Marketers build brand equity by creating the right ________ structures with the right ______________. 9.245
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brand knowledge
consumers |
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What are the three main sets of brand equity drivers? 9.245
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1.initial choices for brand elements making up the brand
2. product and service and all accompanying marketing activities 3. other associations indirectly transferred to the brand by link |
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What are brand elements? 9.246
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trademarkable devices that identify and differentiate the brand
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What are the six main criteria for choosing brand elements? 9.246
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brand-building - memorable, meaningful, likable
defensive - transferable, adaptable, protectable |
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What three styles of marketing have increased due to consumer desire for personalization? 9.248
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experiential marketing, one-to-one marketing, permission marketing
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____________ is activities and processes that help to inform and inspire employees. 9.249
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internal branding
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What are the three important principles for internal branding? 9.250
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1. choose the right moment
2. link internal and external marketing 3. bring the brand alive for employees |
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What are the three primary ways to build brand equity? 9.245
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1. choosing brand elements
2. designing holistic marketing activities 3. leveraging secondary associations |
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What is a brand community? 9:275
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specialized community of consumers and employees whose identification and activities focus around the brand. 1. consciousness of kind, 2. shared rituals, 3. shared moral responsibilty
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What are two main ways to measure brand equity? 9:276
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indirect - assess potential sources of brand equity by identifying and tracking consumer brand knowledge structures
direct - assesses the actual impact of brand knowledge on consumer response to different aspects of the marketing |
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What is the brand value chain? 9:276
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structured approach to assessing the sources and outcomes of brand equity and the way marketing activities create brand value
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What is a brand audit useful for? 9:278
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fully understand the sources of brand equity and how they affect outcomes of interest
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What is a brand-tracking study useful for? 9:278
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how the sources of brand equity and outcomes change over time
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What is a brand audit? 9:278
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consumer-focused series of procedures to assess the health of the brand, uncover its sources of brand equity, and suggest ways to improve and leverage its equity.
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What is a brand-tracking study? 9:278
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collect quantitative data from consumers over time to provide consistent, baseline information about how brands and marketing programs are performing.
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What is the difference between brand equity from brand valuation? 9:278
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brand valuation estimates total financial value while brand equity represents how consumers think, feel, and act with regards to the brand
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What is a company's major enduring asset? 9:280
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brand
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How can marketers reinforce brand equity? 9:280
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consistently convey brand's meaning in terms of what products it represents, how the brand makes products superior
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What is the first thin got do in revitalizing a brand? 9:281
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understand the sources of brand negative associations - then decide whether to retain same positioning or create a new one
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When a firm uses an established brand to introduce a new product it is called a ______________. 9:282
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brand extension
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Hershey Kissess, Adobe Acrobat software, toyota Camry, and American Express Blue Cards are example of what? 9:282
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brand extensions/sub-brand
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What are two general categories of brand extensions? 9:282
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line extension - parent brand covers new product
category extension - using parent brand to enter a different product category |
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Distinguish between brand line, brand mix, and branded variants. 9:283
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brand line is all products sold under a brand
brand mix is set of all brand lines made by a seller branded variants are specific lines supplied to specific retailers |
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A _______ is one whose brand name has been licensed to other manufacturers that actually make the product. 9:283
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licensed product
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What are three general strategies for alternative branding? 9:283
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1. individiaul or separate family brand names
2. corporate umbrella or company brand name 3. sub-brand name |
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Distinguish "house of brands" versus "branded house." 9:283
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house of brands - use of individual or separate family brand names under a company
branded house - umbrella corporate or company brand name |
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What are four reasons to introduce multiple brands in a category? 9:284
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1. increase shelf presence
2. attract consumers seeking variety 3. increasing internal competition within the firm 4. yielding economies of scale in advertising |
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What is the brand portfolio? 9:284
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set of all brands and brand lines a particular firm offers for sale in a particular category or market segment
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What are the types of roles a brand can play in a portfolio? 9:285
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flankers
cash cows low-end entry level high-end prestige |
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Which brands are positioned so that flagship brands can retain desired positioning against competitors? 9:285
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flanker or "fighter" brands
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Which brands are kept around due to profitability inspite of dwindling sales? 9:285
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cash cows
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Which brand are "traffic builders" to allow entry into brand franchise? 9:285
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low-end entry level
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What is the role of the high-end prestige brand to a portfolio? 9:285
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add prestige and credibility to the entire portfolio
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What are the two main advantages of line extensions? 9:286
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1. facilitate new product acceptance
2. provide positive feedback to the parent brand and company |
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What are the disadvantages of brand extensions? 9:287
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cause the brand name to be less strongly identified with any one product - line extension trap
brand dilution is possible - consumers stop associating a brand with a specific set of products preemptive cannibalization - intrabrand switch firm forgoes chance to create a new unique brand |
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What are questions to ask in judging potential success of an extension? 9:287
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does the parent brand have strong equity?
is there a strong basis of fit? will the extension have the optimal points of parity and POD? how can marketing programs enhance extension equity? what implication will the extension have for parent brand equity? |
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The aim of CRM is to product high __________. 9:290
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customer equity
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What is common between brand and customer equity perspectives? 9:290
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importance of customer loyalty
create value by having as much customers as possbible paying high as possible |
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What is the difference between brand and customer equity? 9:290
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customer equity focuses on bottom-line financial value
customer equity offers limited guidance on go-to-market strategy customer equity ignores advantages of strong brand overlooks the option value of brands |
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What is the result of successful positioning? 10:298
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creation of a customer-focused value proposition
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What is a competitive frame of reference? 10:298
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defines which other brands a brand competes with and therefore which brands should be the focus of competitive analysis
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What is a good starting point in defining a competitive frame of reference for brand positioning? 9:299
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determine category membership - products/sets of products withw hcih a brand competes
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The competitive frame of reference guides ________. 9:301
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positioning
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What are points-of-difference? 10:302
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attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand
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What are the three criteria to determine whether a brand can truly function as a point-of-difference? 10:302
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desirable to consumer
deliverable by the company differentiated from competitors |
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What are points-of-parity? 10:302
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Points-of-parity are attribute or benefit associations that are not necessarily unique to the brand but may in fact be shared with other brands - two forms: category and competitive.
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Define the two forms of POPs? 10:302
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Category points-of-parity - attributes or benefits that consumers view as essential to a legitimate and credible offering within a certain product or service
competitive points-of-parity - associations designed to overcome perceived weakness of the brand |
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What is a good way to uncover key competitive points-of-parity? 10:303
|
role-play competitors' positioning and infer their intended points-of-difference
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What is the key to positioning? 10:303
|
achieving points-of-parity more than points-of-difference!
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What is straddle positioning? 10:305
|
a company straddles two frames of reference with one set of points-of-difference and points-of-parity. in this case the points-of-difference for one category become points-of-parity for the other and vice-versa.
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Marketers typically focus on _________ in chossing the points-of-parity and points-of-difference that make up their brand positioning. 10:305
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brand benefits
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What is a useful tool in choosing specific POPs and PODs? 10:305
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perceptual maps - visual representations of consumer perceptions and preferences
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What is a brand mantra? 10:306
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articulation of the heart and soul of the brand and related to "brand essence" and "core brand promise." Short three to five word phrases that capture essnese or spirit of brand positioning
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Brand mantras are designed with ___________ in mind. Brand slogan is an _____________ that attempts to creatively engage consumers. 10:308
|
internal purposes
external translation |
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What are the three key criterias for brand mantras? 10:308
|
communicate
simplify inspire |
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Brand mantras are typically designed to capture the brand's ______________, that is what is unique about the brand. 10:308
|
point-of-difference
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What is a helpful schematic to communicate the brand mantra/positioning strategy to the entire organization? 10:308
|
brand-positioning bull's eye
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Describe the brand-positioning bull's eye. 10:308
|
brand mantra
PODs and POPs substantiators values/personality/character and executional properties/visual identity |
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What are the three main ways to convey a brand's category membership? 10:310
|
1. announce the category benefits
2. comparing to exemplars 3. relying on the product descriptor |
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To build a strong brand and avoid the commodity trap, marketers must start with the belief that you can ___________ anything. 10:311
|
differentiate
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Very few competitive advantages are _______. At best they may be ________. 10:311
|
sustainable
leverageable |
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What is a leverageable advantage? 10:311
|
one that a copmany can use as a springboard to new advantages.
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For a brand to be effectively positioned, customers must any any competitive advantage as a _______________. 10:311
|
customer advantage
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What are the four means of differentiation for a brand? 10:312
|
employee differentiation
channel differentiation image differentiation service differentiation |
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What are the three levels of service differentiation? 10:312
|
reliability
resilience innovativeness |
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What three variables should a company monitor when analyzing potential threats from competitors? 10:313
|
1. share of market
2. share of mind 3. share of heart |
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Companies that make steady gains in ______ and _______ will inevitably make gains in _____ and _______. 10:313
|
mind share / heart share
market share / profitability |
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What are alternative approaches to brand positioning? 10:313
|
brand narratives and story-telling
brand journalism cultural branding |
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What are specific guidelines for small businesses to establish a brand? 10:315
|
creatively conduct low-cost market research
focus on building one or two strong brands based on 1 or 2 key associations enjoy well-integrated set of brand elements create buzz and loyal brand community leverage as many secondary associations as possible |
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What are the four levels of a hypothetical market structure? 11:322
|
market leader
market challenger market follower market nichers |
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What are three things a company should do to stay number one? 11:323
|
expand total market demand, protect current share through good defensive and offensive actions, increase market share even if market size is constant
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What are four ways to expand total market demand? 11:323
|
new customers, more usage, additional opportunities to use the brand, new ways to use the brand
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What is an example of an additional opportunity to use the brand? 11:324
|
tie the act of replacing the product to a holiday, event, or time of year
give customers an indication of when they need to replace the product |
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What is the best way to protect market share? 11:324
|
continuous innovation
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A __________ marketer finds a stated need and fills it. An _-________ marketer looks ahead to needs customers may have in the near future. A _________ creative marketer discovers solutions customers did not ask for but to which they enthusiastically respond. Creative marketers are proactive ___________, not just driven ones.
|
responsive
anticipative creative market-driving firms |
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What are the two proactive skills a company needs to protect its market share? 11:324
|
responsive anticipation - see the writing on the wall
creative anticipation - devise innovative solutions * reactive response is after the change happens |
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What are the six defensive marketing strategies used to protect share? 11:325
|
position defense, flank defense, preemptive defense, counteroffensive defense, mobile defense, contraction defense
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What are four factors to consider before buying higher market share through acquisition? 11:326
|
possible antitrust action
economic cost danger of pursuing wrong marketing activities effect of increased market share on actual and perceived quality |
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What are competitive attack strategies available to market-challengers? 11:327
|
defining the strategic objective and opponent(s) - attack leader, attack peers, attack smaller
choose a general attack strategy choose a specific attack strategy |
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What are general attack strategies for market challengers? 11:328
|
frontal attack
flank attack encirclement attack bypass attack guerrilla attack |
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|
Theodore Levitt argues that a strategy of ___________ might be as profitable as a strategy of _______________. 11:329
|
product imitation
product innovation |
|
|
In which industries is conscious parallelism common? 11:329
|
capital-intensive, homogeneous-product industries such as steel, fertilizers, & chemicals
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What are four broad categories of market followers? 11:329
|
counterfeiter - copy-cat and sell through disreputable dealers
cloner - emulates everything with slight variation imitator - copy some things but differentiate packaging, advertising, pricing, or location adapter - takes products and adapt/improve them |
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An alternative to being a follower in a large market is to be a leader in a __________________. 11:330
|
small market
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Why is niching so profitable? 11:330
|
knowing target customers, meeting needs better, charge more, achieve high margin not high volume
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What are the three tasks of nichers?
|
creating niches, expanding niches, protecting niches
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To say a product has a life cycle is to assert four things: 11:332
|
1. limited life of products
2. sales pass through stages with challenges 3. profits rise/fall 4. require diff marketing in each life cycle stage |
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|
What are the four stages of the product life cycle? 11:332
|
introduction, growth, maturity, and decline
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|
Which product life cycle describes the pattern of promoting a new drug? 11:333
|
cycle-recycle pattern
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What are three special categories of product life cycles? 11:333
|
style, fashion, and fads
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Why does sales growth tend to be slow in the introduction stage? 11:334
|
need to inform potential customers, induce product trial, secure distribution in retail outlets, work out technical problems, fill pipeline, gain acceptance
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Many studies indicate that the market pioneer gains the greatest advantage. What are the sources of that advantage? 11:334
|
early users recall, establishes attributes of the product class, aims at middle of market so captures more users, patents, barriers to entry, etc.
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