Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
78 Cards in this Set
- Front
- Back
Consumer Behaviour |
- value creation and consumer needs - consumer decision making process (DMP) - attitudes and perceptions (can be manipulated) |
|
Marketing Research |
- quantitative methods to evaluate markets and consumer behaviour - starts with secondary data |
|
Diamond-Water Paradox |
- gives objects value - not necessarily actual physical use of object but emotional/social value (scarce items = valued) |
|
Labour Theory of Value |
- labour is the exchangeable value of all commodities (Adam Smith) |
|
Value |
- subjective - consumer value can have economic, experiential, social, and/or functional value
|
|
Economic Value |
- reduced cost of acquisition and/or consumption |
|
Experiential Value |
- intangible, psychological, emotional benefits - i.e. brand, design, service |
|
Social Value |
- value from interaction with other users - positive network externality - community |
|
Functional Value |
- features --> leads to marketing myopia - choice depends on functional values and weights |
|
Primary Data |
- non-experimental data - info collected for current marketing decisions |
|
Secondary Data |
- non-experimental data - info initially collected for other purpose
|
|
Qualitative Data |
descriptive data |
|
Quantitative Data |
measurable/numerical data |
|
Determining What Consumers Value |
- primary and qualitative data: focus groups (8-10ppl + moderator), individual depth interview - small samples
|
|
Why Consumers Value Specific Features |
- primary and qualitative data (motivation research): explore hidden and subconscious motivation, individual depth interview, laddering technique (why, why, why) - small samples |
|
Laddering |
feature -->benefits -->needs |
|
Relative Importance of Each Value |
Quantitative measures of importance - question through survey - infer from actual/hypothetical choices - large samples - importance estimate |
|
Survey |
1. Question (Problem) 2. Information Required - feature importance - brand perception - individual characteristics 3. Questionnaire Design - attitude measurement - sequence of questions 4. Sampling 5. Data analysis |
|
Measuring Feature Importance |
Scales with Data Limitation - nominal scale (important =1, not important =0) - interval rating scales (not important at all to very important 0,1,2,3,4,5) - constant-sum scaled (allocated 100 points from most important to least important feature) |
|
Reliability |
How likely would you get the same outcome in repeated measurement - not due to sampling error - People may not pay attention - People's hypothetical choices may differ from their actual choice behaviour |
|
Sequence of Question |
1. Warm-Up Questions (phone usage) 2. Difficult Questions (feature importance) 3. Sensitive/Personal Questions (demographics) |
|
Consumer Buying Process |
1. Pre-Purchase 2. Purchase 3. Post-Purchase |
|
Pre-Purchase |
From Consumer Buying Process - recognition of needs (trigger) - search for alternatives - collect information for alternatives |
|
Purchase |
From Consumer Buying Process - What (Brand)? - Where? - When ? - How much? - How was it paid for? |
|
Post-Purchase |
From Consumer Buying Process - inconsistencies - delivery and installation - maintenance - warranty - feedback |
|
Narrow Down |
Total Set --> Awareness Set --> Consideration Set --> Choice! |
|
Secondary Data - Big Data |
1. Volume : # of bytes 2. Velocity: speed of data accumulated over time 3. Variety : multiple types of data: behavioural and query (qualitative, quantitative). |
|
Experiment Research |
Primary, quantitative research - cause & effect Online Experiments & Design - "click here" "see details" |
|
Perception |
Process by which people select, organize, and interpret information - selective retention, selective distortion, selective attention, and basic perception |
|
Selective Retention |
Perception: People retain points to support certain attitudes |
|
Selective Distortion |
Perception: People interpret to support certain beliefs |
|
Selective Attention |
Perception: Consumers screen out most information |
|
Basic Perception |
Perception: People retain points to support attitudes |
|
Observational Research |
Immerse into consumer's life for insight/creative ideas |
|
Market Segmentation |
Dividing market into groups of potential customers (market segments) with distinct characteristics, behaviours, or needs. |
|
Segmentation Based on Benefits |
benefits sought by consumers (based on needs) - drugs: effectiveness vs gentleness (2) |
|
Segmentation Based on Characteristics of Customers |
based on observed characteristics: -demographics -psychographics -behaviour -lifestyle -geographic location
|
|
What marketers require for segmentation |
1. Understand the benefits that customers seek 2. Segment the market and develop prototypical customer profiles based the customer benefits 3. Find observable variables most likely to discriminate among benefit segments to identify specific segments |
|
Target Market Segmentation |
Evaluating each market segment's attractiveness and selecting one or more of the market segments to enter, and how to enter them. - maximize profit |
|
Target Market Selection |
1. Start Process: Collect Data for Each Firm 2. Synthesize data into competitor capability matrices |
|
Start Process |
Target Market Selection 1. ability to conceive and design 2. ability to produce (quality and quantity) 3. ability to market 4. ability to finance 5. ability to manage/execute |
|
Synthesize data into competitor capability matrices |
Target Market Selection 1. 1 matrix per segment : detailed items of evaluation listed in rows, relevant firms listed in columns, 10-point scaled rating 2. Allows to recognize patterns in competitive environment |
|
Positioning |
Marketer's effort to identify a unique selling position for the product - arranges for the product to occupy a clear, distinctive, and attractive position in relation to competing products in the mind of target consumers |
|
Good Positioning Statements Include |
1. "Who are the customers?" 2. "What is the set of needs that the product fulfils?" 3. "Why is the product the best option to satisfy those needs?" |
|
Position Statement Template |
Our __________(product/brand)_________ is ______(single most important claim)______ among all __________(competitive frame)__________ because _____(single most important support)___. |
|
Differentiation |
Good positioning --> competitive differentiation 1. Vertical Differentiation 2. Horizontal Differentiation |
|
Vertical Differentiation |
- all buyers agree that product A is better than product B - if A and B are sold at same P, no one will buy B - take advantage of customers' WTP for quality - strategy: position products to customers with a specific WTP for quality that is not sufficiently served by competitor
|
|
Horizontal Differentiation |
- products A and B differ in ways independent of buyers' overall judgements about their quality levels - if A and B are sold at same P, some will buy A, and others will buy B - consumers differentiate in taste - strategy: identify group whose needs are no sufficiently served by competitor |
|
Brands |
nouns that marketers have introduced into consumers' language to make product different (concrete) |
|
Fundamentals of Marketing |
people have different likes/dislikes |
|
Branding |
Building awareness of and preference for the specific name of the product that is being branded |
|
Brand Positioning Statement |
Short written document that lays out how the marketer believes others should think, feel, and relate to the brand.
To (target group/users), (brand name), is the brand of (competitive framework) that (point of differentiation benefit), because (reasons why). The brand character is ______. |
|
Target Users |
Brand Positioning Statement "user" : person who uses it, not always also person who buys it - gatekeeper? Define target user by: 1. Demo-psychographics and attitudes 2. Usage Habits 3. Needs
i.e. Gatorade (1) active athletes, all ages and performance levels, (2) rely heavily on liquid replenishment, (3) to stay at competitive best physically and mentally |
|
Brand Name |
Brand Positioning Statement The brand name of the product you are positioning |
|
Competitive Framework |
Brand Positioning Statement Identifies who else competes in the space - should answer what the brand substitutes for the consumer - should answer where the volume is coming from for the manufacturer - not always straight forward: Gatorade "performance thirst quencher/body replenisher" - can sometimes change the categories in favour of an activity by making the consumer see it in a different light (i.e. Jell-O Packaged dessert - Gelatin) |
|
Point of Differentiation |
Brand Positioning Statement Offer the product attributes that marketers want consumer to strongly associate with their brand - should be consistent with product's physical attributes and be what consumers find most desirable about the brand - should have benefits: functional/emotional, tangible/intangible i.e. Snickers, POD Benefit: satisfies hunger better, Product Physical Attributes: Packed with peanuts, caramel, nougat, and chocolate |
|
Reason Why |
Brand Positioning Statement Support/reason for POD claim - adds credibility - sell instead of tell and permission to believe Can relate to - Experience: include challenges or acid tests - Product: design, formula, ingredient, source, or process features - People: expert/person who endorses product - can be one or multiple, intrinsic/extrinsic reason |
|
Brand Character |
Brand Positioning Statement Product's personality - strategic element of positioning - develops the emotional parts of a brand and strengthens the personal meaning - can represent with a famous figure |
|
Marketing Mix |
Product Price Place Promotion |
|
Product |
Marketing Mix Anything that is offered to a market for consumption and that satisfies a need - tangible/intangible - usually bundles of benefits: core & augmented product |
|
Nature of customers' buying behaviour |
Product -convenience good (frequently purchased, not much deliberation, widely available) - shopping good (involve more planning and some comparison) - specialty good (relatively inelastic demand and little/no comparison, scarcely available) |
|
Level of Involvement in Purchase Process |
Product -low involvement, or high involvement (significant time and effort in purchasing process) |
|
Type of Benefits |
Product - Mostly functional benefits (logical, rational advantage) - some address emotional benefits (ego-expressed needs) - classifications subjective to customers |
|
Core Product |
what you're actually purchasing -direct, primary benefit |
|
Augmented Product |
offers add'l benefits -for some, the augmented product is more valued than the core product - i.e. customer service, installation, repair and delivery, warranties, and credit possibilitiesM |
|
Brand Equity |
Positive effect that the brand has on potential customer of a product - how much more consumers are WTP for a specific brand compared to a competing brand or a generic brand |
|
Making Marketing Policies |
1. Recognize the core customer need they intend to satisfy 2. Verify if core product satisfies need 3. Understand how to best augment product for most satisfaction and shield company from competitors |
|
Product Mixes |
Encompasses all product lines -can be define din terms of length and depth -length: # of items with one product line (Lime, Lemon, Raspberry..) - depth: # of versions of each product in line (Lemon, Diet Lemon).. - product line: group of items that serve a similar need (iced tea, juice, water, lemonade) |
|
Product Line and Brand Extension |
New Products and Brands |
|
New Product Development |
Development of new products, from product modifications to truly original products General Stages: 1. Idea generation and screening 2. Concept development and testing 3. Physical product development and testing 4. Commercialization Ultimate objective: generate a product that delivers superior value to target customers |
|
Effective Process - New Product Development |
1. The voice of the customer is heard throughout the development process unless firm is trying to create a breakthrough product where they have to anticipate customer needs 2. Substantial work is done before physical production begins, across firms' different functional areas (marketing, engineering, and manufacturing) 3. Process has real go/no-go decision points: a proper process in which ideas are generated and in each development stage, some are rejected while others pass the test and continue on 4. Process recognizes the firm's distinctive competencies and assesses the product-market fit and product-company fit and market-company fit. Compare capabilities to competitors |
|
Product Life Cycle (PLC) |
Stages: 1. Development 2. Introduction (offer basic product) 3. Growth (add elements of augmented product and product extensions) 4. Maturity (extend and diversify the brand) 5. Decline (refine product) |
|
Development PLC |
In the period before the product is introduced, investments increase, while sales are not existent |
|
Introduction PLC |
- When the product is launched in the marketplace, initial sales growth is slow, marketing expenses increase and other costs - negative profit - customers are innovators, marketers want to create product awareness and trial |
|
Growth PLC |
- Sales rapidly rise - early consumers now join customer base (economies of scale) - increasing profit - focus on maximizing market share |
|
Maturity PLC |
- sales levels peak - sales growth declines as market saturates and competition further increases - less efficient to increase customer base - harder to market effectively - profits decrease - focus on maximizing profit - defend market share |
|
Decline PLC |
- sales fall - profitability virtually disappears - some competitors exit - focus on expenditures - milk the brand |
|
Managing Product & Brand Portfolios |
- develop a product template from which a family of products can be developed at low incremental cost - product line > single product, to better serve multiple market segments - avoid situations will little planning - discontinued lists might make customers feel abandoned or poorly served... - strong product line planning process: systematic investigation of deletion opportunities to ease customers' decision making and improve overall economics of the firm |