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100 Cards in this Set
- Front
- Back
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What is a loyal customer and how do we as marketers get there?
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Satisfied employees make quality solutions that creates a satisfied customer.
usually a satisfied customer is a loyal customer and will generate high profit |
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What is a churning customer and how do we as marketers get there?
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Unsatisfied Employees make poor solutions which leads to a transactional based purchase or creates unhappy customers.
Unhappy customers are churning and usually create loss |
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What is product position?
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The characteristics consumers associate with a brand based on important attributes.
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What is a positioning map?
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A diagram that shows how consumers in segment perceive brands based on specific elements they think are important
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In order to be a market brand leader what must a company be high in?
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Customer loyalty and new customer acquisition
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What are commodities, differentiated, and specialized when it comes to products?
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commodities are very similar to other products
Differentiated products show comparisons with extra advantages Specialty items are very unique and are often customized |
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In order to have a high customer equity we look at how a customer thinks, feels, and what they intend to do. How do we relate that to our product profit factor?
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A customer thinks about a products perceived quality and value
A customer feels good when the product satisfies their expectations A customer intends to repeat buy if they are a loyal customer Loyal customers create profit and are high in equity |
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How do you bring value to a consumer (thinking) and in a B2B transaction?
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Consumer: Easy to use, Appropriate value for price
B2B: Quantify the value in dollar terms |
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How do you bring and emotional connection to the brand? (feeling) for consumer and B2B
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Consumer: Brand positioning in use situations and customer empathy
B2B: Become core to your buyers competitive strategy |
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How do you keep customers from not switching? (intentions) along with B2B
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Consumer: Loyalty programs and after sale responsiveness
B2B: Integrate with purchasers supply chain |
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How has Second Life (SL) been used as a marketing/advertising tool for that market segment?
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Companies such as Mercedes, American Apparel, and Toyota have integrated shops, items, and cars into the SL where fictional characters can actually buy fictional items for their character and get a glimpse at companies different products.
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Why is mass marketing not so effective and becoming a thing of the past?
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It is impossible to market to the "average" consumer but there is no such thing, rather people exist in different segments
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Why do we market to segments instead of products?
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We want to market to the kinds of people that would potentially buy our product, it is impossible to segment a group of people based on product characteristics
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What is the difference between variables and categories when it comes to market segmentation?
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Variables vary (age, gender, income, geography)
while categories are stable groups that fit within variables |
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How do you calculate the potential number of market segment?
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The product of the number of categories in each variable.
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What is a product?
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Any physical object, service, idea, person, event, place, or organization offered to satisfy consumer' needs and wants
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What is a core product?
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The essential physical item or intangible service that the customer receives
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What is a Branded product?
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The core product plus the characteristics that allow the consumer to differentiate it from similar products
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What is and Augmented Product?
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Product with characteristics that enhance its value beyond that of the core and branded products.
(delivery methods, warranty conditions, and credit terms) |
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What is a bundling strategy?
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A strategy in which several products are combined into a single offering
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What is Parsimonious ?
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– captures the right amount of information but not too complex
You choose different variables for consumer products than for industrial products. You need to be able to measure the amount, and to tell us how and why people behave, purchase a product. |
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How would I parsimoniously segment a consumer product? (like a sailboat)
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Variables: • Gender, age, ethnicity, marital status, education, sailing experience, hobbies, real estate, sexual orientation, religion, etc. (Often concentrates on demographic factors).
Unit of analysis: Boat owners |
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How would I parsimoniously segment an industrial product? (like selling industrial robots to companies)
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Variables: • Business size, industry (often using Standard Industrial Classification – SIC – Codes), level of automation, level of unionization, factory size, inventory capacity, labor force size, their market, private v. public, location, company net income, etc.
Unit of analysis: a business |
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Why do we segment?
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• We have a heterogeneous market; creating homogenous subsets will help us understand those subsets better
• Reach more customers with appropriate marketing mix. • More profitable because you are more effective and efficient (reduce cost). • Better able to identify customer needs, wants, and behaviors (enables you to create a better product). • Do a better job of forecasting. • Bring out more value in the market by tapping into a particular segment • Understand needs and want of buyers. • More efficient and effective use of resources. • Allows for a better understanding of the competition. • Know where to reach customers. |
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What is required for excellent market segmentation?
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Measurable: need to be able to count how many people are in a segment
Substantial: Segment must be large enough in order to target and make a profit Accessible: must be able to reach that segment (media, distribution,ect) When segmenting think about how/why people purchase, use, consume, dispose |
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What is an unsought product?
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An item that consumer don't think about frequently and for which they don't perceive much need
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What is an emergency product?
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A product purchased due to an unexpected event and for which the consumer has an urgent need
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What is a convenience product?
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A relatively inexpensive item that consumers purchase frequently and with minimum effort
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What is a shopping product?
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A purchase generally made only after the consumer has compared several alternatives
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What is a specialty item?
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A product with unique characteristics that provides unusual vale to the purchaser.
(people will travel far and hold out for a specific product) |
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When defining the market we look at 3 things in 4 different ways what are they?
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Customers, Volume, and Currency
Need & No Ability, Need & Ability, Theirs (what the competition is doing), Ours (who we are currently selling to) |
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What is the Shotgun Attack (undifferentiated marketing)?
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Use the same marketing mix (Product, Price, Promotion, Place) for each segment but may result in the company wasting a lot of resources
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What is the Twenty-two Caliber (Differentiated marketing) ?
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Using a different marketing mix for each segment, but you need to understand the market
Tailor the marketing mix for each segment |
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What is Rifle (Concentrated marketing)?
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Using one marketing mix to reach one target segment, you also need to understand the market
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What is Mass Customization?
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Mass producing items but allowing people to customize some parts of the product
ex. Nike shoes, custom Levi's, Dell computers |
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What is required to mas s customize?
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A target market and a system that can mass customize quickly
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What is positioning?
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Positioning depends on the perception a consumer has about a product or service. Objective is to establish a positive image relative to competitors. You need to segment before you position.
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What are the key positioning strategies?
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Specialty
KEY: UNIQUENESS - Competitive uniqueness - Strategic solutions Example – custom clothing, Lamborghini Comparison KEY: DIFFERENTIATION -Competitive differentiation -Tactical solutions Example – Appliances (stoves, washers, and dryers), Ford Taurus Commodity – “no hidden qualities” KEY: LOW COST -Competitive cost/efficiency -Volume Examples - sugar, salt, corn, grain, compact cars |
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What is an object to object relationship? (positioning map)
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How do people perceive a product relative to another product? In this case we can look at the perceptional difference between Jerry Springer and Oprah.
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What is an object to attribute relationship?
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How do people perceive a product relative to the attribute. In this case, we can look at Conan. It is not perceived to be intellectual.
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What is object to self positioning?
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First you have to determine where the person/segment would place themselves in the perceptual map. So if you are coming up with a new show, where would you place it relative to Howard Stern?
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What are the fundamental ways to position a product?
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Attribute
Price/Quality Time of use or Application Product user or spokesperson With respect to competitor product class or category By country of origin |
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Products are perceived based on what?
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Attributes
Quality Brand Services Reputation of seller |
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Services and Goods are differentiated based on what quality characteristics?
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Tangibility, Product location, Production time, Customer contact, Balance of Supply and demand
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What is a capital product?
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A costly item that lasts a long time but does not become part of any finished product
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What is a production product?
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Raw materials, processed materials, component parts, and subassemblies that become part of other goods.
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What are operations products?
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Products purchased to help run a business and are not included in finished products
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What are supplies
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consumable items used for business operations
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what is a product line?
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closely related products marketed by the organization
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what is an item
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a specific version of a product within a product line
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What is depth
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The number of items in a product line
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What is breadth
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The number of different lines a company markets
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What is a brand?
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a distinguishing name or symbol to identify and differentiate products from those of competitors
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What is a trademark?
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A distinctive form or figure that identifies the brand
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What is an individual brand strategy?
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There is a unique name for each major product or product line
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What is a family brand strategy?
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Strategy in which a single brand name covers the entire group of products in the company's line
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What are almost pure goods?
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– Physical products that are purchased and consumed with little or no service (Groceries, gasoline, steel)
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What are goods with services?
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Products supported with repair, maintenance, add-ons and advice (Autos, auto repair, video games)
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What are half goods half services?
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Products that consist of both goods and services (restaurants, bookstores, movie theaters, prepared food delivery)
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What are services with goods?
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Intellectual property or equipment to make goods work (rental movies, training books, software, e-mail, fax service)
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What are almost pure services?
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Experiences that are consumed during delivery (health clubs, medical care, consulting, legal services, day care)
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What are high in search qualities?
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Pure goods that marketers use to compare and contrast with other competitors, usually in hope to show superiority
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What are high in experience qualities?
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Restaurant meals, vacations, haircuts (in between)
as a marketer you want to show people experiencing these goods and having a good time |
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What are high in credence qualities?
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television repair, root canal, medical diagnoses
as a marketer you can market guarantees, testimonials, certifications |
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In order for a brand to be successful it should be?
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Distinctive
Adaptable to new products Able to be registered Easy to remember Able to convey benifits |
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What is Brand awareness?
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• Part of Consumer’s Evoked (consideration – what comes to mind) Set
• Familiarity & Liking • Recognition • Commitment |
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What is brand loyalty?
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• Reduced Cost for Repeat Buyers
• Leverage w/ Distribution Channel Members • Attract new customers from word-of-mouth • Steady market share allows time to respond to competitors |
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What is perceived quality?
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• Reason to buy (value to customer)
• Uniqueness • Price • Higher brand equity usually has a higher quality |
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What are brand associations?
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• Help consumers process information
• Create positive attitudes • Allow brand extensions and changes |
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What is a competitive advantage?
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• Company can market value rather than compete on price
• Creates a barrier to entry • Supports promotion campaigns |
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Service complexity is?
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The number and intricacy of steps involved in producing a service
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Divergence is?
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The degree to which a service involve customization beyond routine or standardized procedures.
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Person Marketing
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Promoting a person based on their characteristics in hopes that it will lead to the promotion of a product.
(tiger woods) |
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What happens during the introductions phase of a new product?
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Slow sales
Factory shipments may be high Channels must be filled Promote to create awareness & encourage trial Attempt to gain first-mover advantage Look to gain industry leadership |
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What happens during the growth phase of a product?
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Consumer acceptance & sales quicken
Introduction of competitive products Competitors enter channels Product comparison more likely Goal: brand loyalty Products evolve Product features increasingly important Word of Mouth |
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What happens during the maturity phase of a product?
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Sales: level off
Brand loyalty key to survival Battles for market share Weaker rivals drop out Low cost critical as new competitors appear Promotion focus on reminder Profits begin to decline Substitute products Demand stabilizes |
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What happens during the decline of a product?
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Sales diminish
Substitute products accelerate decline Fierce price competition Product design is standardized Little promotion activity Replacement parts may generate profits |
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What do good companies do during the life cycle of a product in order to keep sales and profits up?
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• A good company will have products all along the life cycle so that as old products taper off, new products are coming in – Specialty products, comparison products, and commodities.
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What are some product extension methods for when a product matures?
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New segment - tools for women, bodywash/makeup for men
New use - baking soda used for toothpaste, hair, baking, cleaning Replacement parts - Parts that are necessary to keep the product up and running |
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What is the breakdown of the diffusion curve?
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3% innovators
13% early adopters 34% early majority 34% late majority 16% Laggards |
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In marketing actions penetration is..
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typically dominated by Sales group at most companies
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in marketing action market development is...
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dominated by marketing
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in marketing action product development is..
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dominated by R&D
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in marketing action diversification is...
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dominated by Finance
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A company must work together across all fields of functionality in order to strive towards...
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diversification which leads to new market segments and new products = $$
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What percentage of new products actually make it to market?
and over a 5 year period what percentage of sales is due to new products? |
10% of all new products actually make it
over a 5 year period 50% of sales are due to new products |
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When taking a position on a market for a new good what can you become?
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A market leader or a close follower (ex. catipiller)
Everyone else usually doesn't show much profit |
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Moore's law states ?
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That computing power will double and the price will be cut in half every 18 months
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What are the differences in sequential and simultaneous development?
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Sequential is slow, costly, and has less interaction
Simultaneous is fast, cost effective, lots of communication, better products more rapidly |
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Why do innovators win?
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1. Relative advantage - there must be something about it that is better for the user than existing technologies
2. Compatibility - must work with existing products 3. Product complexity - has to be easy to use 4. Trialability - allow consumer to buy lower end and then trade-up 5. Observability - people should be able to observe others using the technology |
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What are the 8 steps in new product development?
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idea generation
Screening concept development Strategy development business analysis production development Market testing Commercialization |
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What is a marketing channel?
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How you market through the distribution chain in order to get the product to the customer
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What are the goals of promotion?
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a. Inform
Identify choices, criteria and answer questions b. Creates Demand Improves size of business c. Communicates Value and Uniqueness Builds preference d. Close the Sale Moves people and organizations to action e. Build Relationships and Loyalty Maintains loyalty and keeps product consumption high |
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The promotion and communication diagram has what steps?
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Marketers Objectives - sender
Presentation Creation - encoding Media & Message (media is the means the message is communicated with, i.e. TV, internet, etc.) Interpretation - decoding Consumer - receiver |
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What are the different types of promotion?
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personal selling
sales promotion Advertising Public Relations |
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Why is more spent on promotion than advertising?
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sales promotion can be measured
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B2B (business to business) vs. B2C (business to customer)
Personal selling is a much larger part of B2B than B2C because: |
• Each transaction is much larger
• It’s too costly to get attention of many customers • It’s the most effective for getting action |
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What is sales promotion?
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“Activities that support the communications effort by direct contact with the customer without two-way sales effort.”
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What are spiffs?
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Commissions from manufacturers to retail salespeople
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what are key things to have in a superbowl ad?
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• Stopping power – Intrusively gets attention
• Originality or uniqueness • Pulling power – keeps interest • Involvement • Understanding • Memorable |
