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154 Cards in this Set
- Front
- Back
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Chp 7 Segmentation
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Chp 7
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Define the major steps in designing a customer-driven marketing strategy
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market segmentation / targeting / differentiation / and positioning.
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What do the steps in the customer-driven marketing strategy try to do?
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create value for targeted customers
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Segmentation
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Grouping buyers based on needs / traits / or behaviors that might require separate marketing strategies or mixes
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Bases for segmentation
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Geographics / psychographics / demographics / behavioural
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Geographic Segmentation
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global regions & countries / province / city / etc.
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Demographic Segmentation
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age / gender / family size / income / etc.
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Psychographic Segmentation
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Social class / lifestyle / personality
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Behavioural Segmentation
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attitudes / uses / responses / knowledge
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B2B Specific segmentation
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Operating characteristics / purchasing approaches / situational factors / personal characteristics
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International Segmentation Basis
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Geographic location / economic / political / cultural
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Intermarket segmentation
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segmenting consumers who have similar needs and buying behaviour even though they are located in different countries
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Effective market segments are
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Measurable / accessible / substantial / differentiable / actionable
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Market Targeting Strategy
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Undifferentiated mass marketing -> differentiated segmented marketing -> concentrated niche marketing -> micro marketing local or individuals
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Social responsibility trumps profitability if efforts are seen as ______
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exploitative
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Position
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consumer perception of products
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Parts of a positioning strategy
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Identify competitive advantages / select competitive advantage / develop positioning strategy
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Competitive advantage
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Differentiating characteristics gained by offering greater customer value / either through lower prices or by providing more benefits that justify higher prices
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Ways to differentiate
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Product / services / channels / people / image
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Possible value propositions
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More for more / more for the same / more for less / same for less / less for much less
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Marketing mix efforts do or do not support positioning strategy?
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they do support it
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Chp 8 Developing and managing products and services
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Chp 8
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What is a product
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Anything offered to a market for attention / acquisition / use / or consumption that may satisfy a want or need
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How are products differentiated?
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Based on experience in acquiring and using them
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New-Product Development stages
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Idea gen. -> Idea screening -> concept dev and testing -> mktg strategy dev -> business analysis -> product dev -> test mktg -> commercialization
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5 Stages of product life cycle
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Product dev -> introduction -> growth -> maturity -> decline
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Product decisions
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Quality & Design / Packaging / Labelling / Product support services
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Product line decisions
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Line length / line filling or stretching
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Product mix decisions deal with the 4 dimensions
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Width / length / depth / consistency
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Special characteristics of services
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intangibility (Cant see) / inseparability (Only with provider) / variability (Different providers Vary)/ perishability (can’t be stored for later use)
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Service-Profit Chain
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Internal service quality / satisfied service employees / greater service value / satisfied customers / profits
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3 Major MKTG Tasks to manage
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service differentiation & quality & productivity
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Chp 9 Brand Strategy and MGMT
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Chp 9
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Brand
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the image which stands behind the name / symbol / icon / design / or combination of these / that identifies the maker or marketer of a product
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Brand represent consumers ____ about a product
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feelings
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Brands create _______ responses
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emotional
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Brand inspire the ______ loyalty as love
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same
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Brand must produce
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products that consumers love
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Brand Advocate
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voluntarily promotes brand
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Can people be brands?
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Yes like celebs
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Brand equity
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A financial value attributed to the brand based largely on intangible qualities
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Brand personality
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Human attributes and the emotions they inspire toward customers
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Brand Elements
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name and logo or icon with certain shape and colours etc.
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Ways to measure brand strength
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Differentiation / relevance / knowledge and esteem / customer equity
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3 main branding strategy decisions
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Brand name / position / and sponsorship
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Great Brand Names are
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pronounceable / distinctive / product related / extendable / legally clear
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3 brand position levels
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product attributes / desirable benefits / beliefs and values
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Products can be national or private brands
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thats a fact
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Methods of branding include
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Licensing / co-branding
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Strategic brand mgmt decisions involve
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Brand development/communications
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4 choices when developing a brand
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line extension / multibrand / brand extension / new brand
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Risks of Line extensions
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over exposure of name
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Risks of multi brand
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may confuse image
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Risks of brand extension
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separate brands may be weak
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Risks of new brand
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new brands need lots of resources to launch
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Brand’s positioning must be continuously communicated using
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brand experiences / touch points / entertainment
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Brands are maintained by
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customers’ brand experiences and touchpoints
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Branded content
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Icons / characters / stories / engagement / social media
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Chp 10 Understanding and Capturing Customer Value through Pricing
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Chp 10
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Price
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The total value that customers exchange for the benefits of having or using the product or service
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Pricing Strategies
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Customer value-based / cost-based / competition based
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Cost based pricing steps
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Design a good product -> determine product costs -> set price based on cost -> convince buyers of products value
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Value-Based pricing
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Asses customer needs/values -> set target price to match customer perceived value -> determine costs that can be incurred -> design product to deliver desired value at target price
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Value-Based considerations
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customer needs/perceptions/price based on perception of value
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Cost-Based considerations
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Totals costs (cost plus) / product driven (BreakEven)
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Competition Based consideration
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customers frame of reference / competitors offering position etc.
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Pricing should also consider what factors
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Internal (corporate strategy etc.) and External (Mkt demand etc.)
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Market Skimming
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High initial price to skim revenue
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Market Penetration
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low initial price to penetrate
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Product-line pricing
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Setting price steps between various products in a product line based on cost differences / customer evaluations of features / and competitors’ prices (e.g. QuickTax products)
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Optional-product pricing
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Pricing optional or accessory products sold with the main product (e.g. GPS navigation system with a car)
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Captive-product pricing
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Pricing products that must be used with the main product (e.g. blades for razors)
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By-product pricing
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Pricing by-products to make a main product’s price more attractive (e.g. wood by-products)
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Product bundle pricing
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Combining several products and offering the bundle at a lower price (e.g. fast food combo meals)
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Price adjustment strategies
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Discounts and Allowances (Trade-ins)
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Segmented pricing
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selling product at 2 or more different prices but doesn’t reflect difference in cost
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Psychological Pricing
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considers consumer though process not just economics (Ryan Air)
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Promotional Pricing
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Discounts / special event / cash rebate / low interest / longer warrant / free maintenance
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Geographical pricing
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free on board / zone pricing
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International Pricing
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adjusting prices for international markets
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Dynamic pricing
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allow price to change as customers and situational forces change
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Price cuts come from
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excess capacity / falling demand / drive to dominate market
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Price increases come from
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cost inflation / over demand
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Pricing with channel levels
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Price-fixing / predator pricing
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Pricing across channel levels
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Price discrimination / retail price maintenance / deceptive pricing
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Chp 11 Marketing Channels
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Chp 11
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Marketing channel partners include
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upstream and downstream
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Upstream partners are
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firms that supply raw materials
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Downstream partners are
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marketing channel partners that link the firm to the customer
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Value delivery network
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produces / suppliers / distributors / and customer who improve the performance of the entire system in delivering customer value
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Channel partners do what for the company?
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bridge time / place / and possession gaps that separate products from those who use them
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Marketing channel examples
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Financing / promotion / information / after sales support / physical distribution / matching and arranging / negotiation / contacts / risk taking
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Types of intermediaries
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retailers / wholesalers / agents
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Direct marketing channels deliver
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products to consumers directly from a producer
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Indirect marketing channels involve
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intermediaries b/w the producer and consumer
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Channel conflict
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occurs when member of a channel have differing goals/roles/rewards
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Vertical Marketing system (VMS)
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channel structure in which producers / wholesalers / and retailers act as a unified system
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Marketing Channel Decisions include
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selection of members / managing and motivating member / evaluating members/ intensity of distribution
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Intensities of distribution in channels
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Intensive / selective / exclusive
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Retail trends
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experiential / instore tech / gift cards / shopper mktg / social media & mobile
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Marketing Logistics
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physical distribution of materials / final goods / related info
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Role of supply chain management in distribution system
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Companies can gain a competitive advantage / Improved logistics can lower costs / Increased product variety has created a need for improved logistics management / Improvements in information technology have created gains in distribution efficiency / Logistics affect the environment and the company’s sustainability efforts
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Chp 12 Communicating Value
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Chp 12
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Promotion mix is
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tools used to persuasively communicate customer value and build customer relationships
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Promotion mix consists of
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Ads / sales promo / PR / personal selling / Direct Marketing
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Integrated Marketing Communication (IMC)
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integration of communication channels to deliver a clear consistent and compelling message about the company and its products
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Advertising pros
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reach masses at low cost / repeat message / create trust
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Advertising cons
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impersonal / cost are sometimes high
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Personal selling pros
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communicate personally / build preferences actions / allow relationship building
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Personal selling cons
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requires long term commitment / most expensive
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Sales promotion pros
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wide assortment of tools / attract attention / offer incentives / quick responses
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Sales promotion cons
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effects are short lived
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PR pros
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legitimizes credibility / reach people resisting ads / save money
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PR cons
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usually an afterthought
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Direct MKTG pros
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communicate directly with target customers / interactive / one-one relationships
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Direct MKTG cons
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junk mail or spam
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Push strategy
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Producer -> retailer/wholesaler -> consumer / uses sales force to promote through channels
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Pull Strategy
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(Producer) <- retailer/wholesaler <- consumer <- (Producer) / directed towards final customers
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Advertising programs involve
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setting ad objectives/budgets & developing ad strategy & evaluating ad campaigns
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Advertising objective
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A specific communication task to be accomplished with a specific target audience during a specific period of time / Build relationships by communicating value
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Advertising budget methods
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Affordable method / % sales / competitive parity / objective and task
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Creating ad messages breaks through ____
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clutter
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Selecting ad media allows you to
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set reach frequency and impact goals / choose among major media types / select specific media vehicles / decide on media timing
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Message strategy
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identify benefits / creative / appeal (meaningful or believable or distinctive)
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PR
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building strong relations with the company’s various stakeholders
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Proactive PR
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obtain favorable publicity / communicate trustworthy imahe
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Reactive PR
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manage unexpected occurence (pos and neg)
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Corporate Social Responsibility (CSR)
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Organizations must DO the right thing but also must SAY what they are doing
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Cause Related Marketing
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Specific programs developed in collaboration with not-for-profit organizations to raise awareness / funds / or both
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PR Functions
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Media Relations / Product publicity / public affairs / lobbying / investor relations / development / internal relations / crisis communication
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Chp 13 Personal Selling and Sales Promotion
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Chp 13
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Salesperson
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A company representative that performs one or more of the following activities: prospecting / communicating / selling / servicing / information gathering / and relationship building
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Link b/w company and customer
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Sales people
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6 steps in sales force MGMT
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design sales force strategy -> recruit sales people -> train salespeople -> compensate salespeople -> supervise salespeople -> evaluate salespeople
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Digital sales force mgmt
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social networking / time and cost saving / TECH IS A SUPPLEMENT
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Steps in selling process
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prospecting and qualifying -> pre approach -> approach -> presentation -> handling objections -> closing -> Follow-up
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Sales promotion tools
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Samples / coupons / rebates / price packs / premiums / promo products / point-of-purchase / contest / sweepstakes / event marketing
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Consideration in developing sales promotion program
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Decide on the size of the incentive -> Set conditions for participation -> Decide how to promote and distribute the promotion program -> Determine the length of the program -> Evaluate the promotion program
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Chp 14 Direct and Online MKTG
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Chp 14
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Direct Mktg
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Connecting directly with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships
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Direct Mktg is the fastest growing form of marketing
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True Fact
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Buyer Benefits of Direct MKTG
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Convenient / easy to use / private / greater control / access to products / comparative info / available to all / immediate / interactive
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Seller Benefits of Direct MKTG
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Builds customer relationships / low cost market reach / flexible / access to all buyers
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Major forms of direct marketing
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Personal selling / Direct-mail marketing / Catalog marketing / Telephone marketing / Direct-response television marketing / Kiosk marketing / New digital technologies / Online marketing
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Direct Mail MKTG Pros and Cons
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P-Largest medium/One-One &C-Junk Mail/In Decline
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Catalogue MKTG Pros and Cons
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P-Drive web traffic/convert to online easily & C-High Cost
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Telephone MKTG Pros and Cons
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P-High Success & C-Intrusion
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Direct Response TV MKTG Pros and Cons
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P-visual & C-perception of cheap
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Marketing and the Internet
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usage growing and expanding / click and mortar more successful than just click
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New Digital Direct MKTG
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Mobile Phone / Podcasts / Interactive TV
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Corporate website
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Build goodwill / collect feedback
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MKTG website
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engage consumers in interaction and compel to purchase
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Social network
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Company driven online community / create and participate / focus on niche or emerging
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Email MKTG
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Cost efficient / HIGH ROI / multi use / permission base
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