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;
47 Cards in this Set
- Front
- Back
|
Consumer |
- Person who uses product |
|
|
Customer |
- Person who buys product |
|
|
Gatekeeper |
- Oversees care of another (parents of a child) |
|
|
Needs + wants |
- Humans need to survive (clothes, food, shelter, affection, affiliation) - Adds pleasure in life |
|
|
Early Adopters |
- 1st to purchase product (trendsetters) |
|
|
- Barriers to entry |
- only most competitive survive - as others are dominated - Most don't want to enter market |
|
|
Bust |
- if funds are not recovered from production |
|
|
Market share |
- companies sales of goods + services as a % of total sales of the market (sport drinks 10 mill/ year - gatorade: 6 mill (60%) - total share/salesx100) |
|
|
Product life cycle (traditional) |
Introduction Growth Mature Decline Withdrawal |
|
|
What is intro stage |
- Launching product (new product in market), can be expensive (design costs, promo, financing, etc) - marketers try to reach early adopters through ads in media they read (women's commercials during VS) - Pull strategy (samples, coupons, sending food samples in mail, etc) - Push is hard as you wouldn’t be given a shelf (give them display to get trend going) |
|
|
What is growth stage (growing at a faster rate - steeper) |
- People see early adopters and follow - People begin to talk (fastest way for things to grow) - Crucial stage (could fail or succeed) - Might scrap idea (remove product) - First to market have little to no competition (pays more initially though) - As companies enter market they worry of market share - Competitors modify product or make it a lower price (sony 4k tv so brand makes one less expensive for the lower income peeps) - brief intro as it's been done |
|
|
What is mature stage |
- Sales increase slowly than before - Focus on brand loyalty - Large profits (initial costs recovered) - break even - Success will be used for new products (Disney movies + cruise ship) |
|
|
What is decline stage |
- Company cant find new customers - profits decrease - May revive sales, but if not they may redesign, repackage, or reformulate (change ingredients)- mini wheats changing flavours |
|
|
What is decision pt (withdrawal) stage |
- Product is pulled from market (Cds, VCRs, etc) - Product can be reinvented - cow brand baking soda used in toothpaste |
|
|
Product life cycle (non-traditional) |
- Fads - Trends - Niche market - Seasonal market |
|
|
Whats Fads |
- Product is pop. quickly and unpop. Just as quickly and vanishes from market Ex, rubik's cube, tamagotchi, uggs - Marketers can gain or lose money due to the unpredictableness of fads |
|
|
Whats a trend |
- always around (come back) - have lasting effect on market - mass movement toward style or value (healthy lifestyle, fitness - calories on menus) - Marketers who can predict tends have a better chance within an industry |
|
|
Whats a niche market |
- very specific + small - not much competition - Product has a small section of market it can dominate - Help avoid established firms |
|
|
Whats a seasonal market |
- Can be a struggle to expand sales during “off season” - Demand is very high or low - Sell products during season Ex, Marble slab has to do well in summer Ex, selling gardening tools around spring |
|
|
Whats a consumer profile |
- More marketers know about their potential customers, the better they are able to anticipate or influence their buying decisions - created for people likely to be attracted to a specific product (like how FBI look for info on a criminal) - more info they have more they can understand the person - allows marketers to direct efforts to a specific group/market (when in segments) |
|
|
Cohorts |
- combine consumers that share common characteristics + buying habits (likes/dislikes) |
|
|
Consumer segment |
- each group that shares these characteristics + habits (Nike has sport segments) |
|
|
Primary + Secondary market |
- Primary - Most Likely consumers - Secondary - Other, occasional consumers * most direct towards primary but some spend budget for both |
|
|
Knowledge of consumer profiles affect |
- Distribution (how to deliver product) - Ads (messages that are meaningful + relevant) - Product design (colours, shapes, materials, etc) - Media - International |
|
|
What is demographics |
- The study of obvious characteristics that categorize people (age, gender, family life cycle, income level, + ethnicity + culture, psychographics, and geographics) - Part of consumer profiles |
|
|
Why do you need age demographic |
- Need to know age groups so you have proper marketing plan + proper place (Oak. largest group 15-24 you wouldn't be selling to seniors) |
|
|
What are the age groups |
0-9 pre-customers 10-15 Allowance consumers 16-19 Youth market 20-25 Post secondary Market 25-40 Family formation (nesters) 40-55 Establishment 55+ Mature market |
|
|
What is pre customers |
- Double Primary market (children + gatekeepers) - Children influence gatekeepers - Gatekeepers make decisions based health, nutrition, safety, etc (children want fun) |
|
|
What is Allowance customers |
- Group does not have a regular income (no job, allowance) - Gatekeepers still responsible for most things; this group will begin to buy by themselves (kids figure out what they like; clothes, music, etc) |
|
|
What is youth market |
- Rely on Gatekeepers still (financial support; food, clothes, needs) - Part-time work creates disposable income - this age group had the highest amount - Group is attractive to marketers - designer labels, electronics, etc |
|
|
What is post-secondary market |
- Personal care products (apartment furniture; ikea, cooking equipment, + other things for independent life) - Makes purchasing decisions that become habitual - Develops brand loyalties (repeat customers) |
|
|
What is Family formation |
- Major life decisions (career, marriage, home, children, etc) - Attractive to marketers of furniture, insurance, cars, + any product for families |
|
|
What is establishment |
- Reaching career plateaus (peak) + maxing salaries - Children leave home - disposable income ^ - Target market for luxury goods, vacation packages, investments, etc |
|
|
What is mature market |
- ^ disposable income (no debt, no children) - Many retiring early + spending money on themselves (career + family held most of income) - Travelling/new home |
|
|
What are baby boomers |
- Most important in 1946-1963 - After WWII males returned + started families - They influenced music (birth of rock n roll), Minivan, overall many trends - Over 5-10 yrs they will make mature stage largest - people will attract the seniors more |
|
|
Why is gender demographic important |
Roles changed Before - women did groceries + men purchased car + landscaping products After - Buying is boths task + decisions are shared - Products mainly for females (detergents, disposable diapers, etc) or males (cars, power tools, sport equipment) can be marketed to both |
|
|
Why is family life cycle important |
- Single, never married - Married, no children - Married (different growth of children, small, grown) - based on these stages it can affect someone's wants/needs and purchases - Businesses can sell to 1 group or tailor to match each one (Cruise line packages, honeymoon (romantic, fancy food), family holiday (games, family activities), etc) - Ads, activities, + meals depend on group being targeted |
|
|
What is the income demographic (How much people earn) |
- Which consumer can afford what they sell - Affluent group (upper income) purchase what middle income can’t - Kellogg's is all groups but daimlerchrysler for wealthy customers - Postal codes, employment, # of children, property, etc is used to determine income - Most sell products with average income |
|
|
What is ethnicity + culture demographic |
- Might offend is they don’t know - Must consider cultural differences + know customs and the culture (in China white is worn at funerals and red is for weddings) |
|
|
What is Psychographics |
- based on opinions (demo. Is stats + facts) - Measures people’s beliefs (religious), opinions + interests (music taste), personality, etc (marketers assume consumers who exercise buy healthy, low fat foods) - Can be less obvious + more difficult to measure, still important |
|
|
What is geographics demographic |
- Urban (city), Suburban (outside of city), Rural- ex, manufacturer selling cars to urban places as they have buses + subways + traffic, might use smaller cars, not SUVs. |
|
|
What is consumer motivations |
What causes a person to buy something or not: - Biological - Emotional - Rational - Social |
|
|
Biological |
- Most basic force, humans need for survival (ski trip might not be fun if weather is cold or is dangerous) |
|
|
Emotional |
- Love, sympathy, joy, fear, etc cause us to do things that are pleasurable or protect us from emotional pain |
|
|
Rational |
- Conflicts with emotions (it's too expensive, but i want it) - considers convenience, cost savings, safety, logical things |
|
|
Social |
- Peer pressure is a motivator (see a movie twice for friends) - Parents (haircut, save for school, etc can influence what a children does) - Celebrities (clothes, sports, etc that the celebrity uses or does) - why celebrities are used for ads |
|
|
Product use stats |
1. Heavy user (create brand loyalty, ads, coupons, samples, etc) 2. Medium user 3 Light user (attempt to convert to heavy user; deals, contests, etc) 4. Non user - entering market; new parents (persuaded) - Not interested (not really persuaded) |
