Mktg 452 Exam 2

Front 1

main benefits of Market Segmentation

Back 1

1. precise definition of customer needs
2. realistic marketing objectives
3. efficient allocation of resources

Front 2

Bases for b2c Segmentation

Back 2

1. geography
2. demographics
3. usage rate
4. benefits
5. psychographics

Front 3

psychographics

Back 3

personality, lifestyle and motives

Front 4

geography

Back 4

location, market size and density
-good for retailers

Front 5

demographics

Back 5

what the gov. knows about you
-age
-income
-education
-profession
useful for every firm

Front 6

usage rate

Back 6

based on actual connection between customer and brand
-useful for providers of continuous services
ex. loyalty program

Front 7

benefits

Back 7

segmenting by the benefits consumers seek in the products, useful for products whose benefits are sought through a wide range of consumers
- cars: different genders feel different about MPG
-cleaning products: importance varies by age

Front 8

lifestyle components

Back 8

activities, interests and opinions

Front 9

psychographics

Back 9

the contents of your head

Front 10

lifestyle

Back 10

the way you see the world and of consuming

Front 11

b2b segmentation criteria

Back 11

1. industry
2. usage rate-easier to identify than b2c

Front 12

main targeting criteria

Back 12

1. suitability
2. substantiality
3. identifiability
4. accesability
5. responsiveness

Front 13

suitability

Back 13

my firm can serve these consumers competitively

Front 14

substantiality

Back 14

my group is large enough and profitable

Front 15

identifiability

Back 15

my group is identifiable

Front 16

accessibility

Back 16

group is reachable with my marketing mix, room for more competitors

Front 17

responsiveness

Back 17

my group responds better to a certain marketing mix

Front 18

targeting strategies

Back 18

1.concentrated
2. mass market
3. multi-segment

Front 19

concentrated

Back 19

focused on one target market, develops marketing mix and IMC accordingly

Front 20

mass market (undifferentiated)

Back 20

firm chooses least objectionable marketing mix (pizza hut), serves to a broad market

Front 21

multi-segment

Back 21

firms design one marketing mix for each intended segment it wants to serve

Front 22

concentrated Pros and Cons

Back 22

Pros: expertise and connection with groups being targeted, consumer wants, fewer resources needed.

Cons: dependency on small market

Front 23

undifferentiated Pros and Cons

Back 23

Pros: savings on production and mktg costs

Cons: unimaginative products, vulnerable to innovators and competition

Front 24

multi-segment Pros and Cons

Back 24

Pros: expertise and connection with groups targeted while maintaining high volumes and channel power

Cons: higher production and mktg costs + cannibalization

Front 25

Importance of Brand Positioning

Back 25

it is the place, product or group of products in the consumers mind relative to competitive offerings, it is the core, distinctive elements of a brand's image

Front 26

components of a value proposition

Back 26

functional, emotional and self-expressive

Front 27

Positioning Bases

Back 27

- low price
-best value
- luxury
- product differentiation

Front 28

Challenges leading to IMC

Back 28

1. proliferation of points of contact
- too many websites and channels, hard to reach
2. cognitive limitation
-300-1000 commercials per day
- heads down generation, multitasking

Front 29

IMC

Back 29

a well-coordinated promotional mix to target customers in different ways to achieve broad exposure for the brand while keeping consistent brand message

Front 30

IMC Process

Back 30

1. brand awareness (recall)
2. Brand identity (image)
3. Brand preference (attitude)

Front 31

brand

Back 31

a name, term or symbol or other feature that identifies one seller's goods as distinct from the others

Front 32

IMC ultimate goal

Back 32

align sender's intended meaning with receivers interpretation

Front 33

Noise

Back 33

the difference between the senders intended meaning and the receivers interpretation

Front 34

decoding

Back 34

receiver constructs meaning from a message content and his/her sociocultural dispositions

Front 35

Causes of noise in interpersonal communication

Back 35

-psychological state (humor, attention span)
-lived experiences (cohort, lifecycle stage, country vs city)
-social group patterning (culture, social class, gender)

Front 36

psychological approach

Back 36

-seeks average response among individuals
-cognitive processes, rational thinking
-media informs, educates and influences choices

Front 37

sociocultural approach

Back 37

-looks at variation across social groups
- lifestyle, families, social class, social patterning
-media reflects and creates social norms and identities

Front 38

brand awareness

Back 38

how much consumers recall a brand

Front 39

brand identity

Back 39

what consumers recall of a brand

Front 40

brand preference

Back 40

how the image compares to the alternatives

Front 41

high involvement, low experience

Back 41

extended problem solving: deliberate decision making process (deep processing) car

Front 42

low involvement, low experience

Back 42

limited problem solving: unsystematic decision making (shallow processing) pencil

Front 43

high involvement, high experience

Back 43

brand loyalty: deliberate preference, hard to switch
ex. coffee

Front 44

low involvement, high experience

Back 44

habit or variety seeking:
-habit: inertia based preference
-variety seeking: wants to try something new

Front 45

central route

Back 45

high involvement, either/or, loyalty ex. marriage

Front 46

peripheral route

Back 46

low involvement: variety seeking, give a chance, ex. one night stand

Front 47

central route cues

Back 47

-technical information
-double-sided message (yes, but)

Front 48

peripheral route cues

Back 48

humor, sexuality and fantasy

Front 49

is central or peripheral more dominant?

Back 49

neither are, it is not a dichotomy it is a continuum

Front 50

Elaboration Likelihood Model

Back 50

social psychological model of the response to a persuasive communication, expressing the response in terms of motivation and ability

Front 51

The main socialcultural factors that influence consumer behavior

Back 51

-culture
-family
-gender
-social class
-ethnicity

Front 52

how do the sociocultural factors affect marketing communications

Back 52

-they de-emphasize individual differences
-they emphasize social patterning

Front 53

what is involved in determining social class

Back 53

-inherited wealth
-occupation and education
-income

Front 54

consumer decision making process

Back 54

-need recognition
-information search and alternative evaluation
-purchase
-post-purchase use and evaluation

Front 55

consideration set

Back 55

comprised of both internal and external information searches (internal being past experiences and knowledge and external being everything else)

Front 56

5 most important elements in the positioning process

Back 56

1. Minds are limited
2. Minds hate confusion
3. Minds are insecure
4. Minds can't change
5. Minds lose focus