Marketing Exam 2/2

Front 1

Explain market segmentation

Back 1

Market segmentation is the process of dividing a large market into smaller pieces based on one or more meaningfully shared characteristics.

Front 2

Explain segmentations variables

Back 2

Segmentation variables are dimensions that divide the total market into fairly homogeneous groups, each with different needs and preferences.

Front 3

Define demographics.

Back 3

Demographics are statistics that measure observable aspects of a population including size, age, gender, ethnic group, income, education, occupation, and family structure.

Front 4

Define psychographics.

Back 4

Psychographics segment consumers in terms of psychological and behavioral similarities such as shared activities, interests, and opinions (AIOs).

Front 5

Define behavioral patterns.

Back 5

Behavioral segmentation slices consumer segments on the basis of how they act toward, feel about, or use a product.

Front 6

Understand the three evaluation criteria to identify viable market segments.

Back 6

- Homogeneous within & heterogenous between

- Attractive by market size

- Meaningfully defined

Front 7

Why do we want homogeneity within each market segment but different preferences in different segments?

Back 7

Homogeneity within = tailored marketing for that segment will be more successful.

Heterogeneity between = if we had similar segments it would make catered marketing pointless.

Front 8

Describe a segment profile.

Back 8

A segment profile is a description of the "typical" consumer in a segment.

Front 9

Explain how a segment profile may be useful.

Back 9

From a business perspective, a segment profile might be useful to understand segment members' needs and look for business opportunities.

Front 10

Define Undifferentiated targeting strategy

Back 10

Appealing to a broad spectrum of people; treats all consumers as one identical market

Front 11

Define Differentiated targeting strategy

Back 11

Developing one or more products for each of the several distinct consumer groups and making sure these offerings are kept separate in the marketplace.

Front 12

Define Concentrated targeting strategy

Back 12

Focusing a firm's efforts on offering one or more products to a single segment/consumer group.

Front 13

Define Customized marketing

Back 13

An approach that tailor’s specific products and the messages about them to individual customers.

Front 14

Define Mass customization

Back 14

An approach that modifies a basic good or service to meet the needs of an individual. “segment of one”

Front 15

Explain brand positioning as a marketing strategy.

Back 15

Developing a marketing strategy to influence how a particular market segment perceives a good or service in comparison to the competition.

Front 16

What is the purpose of brand positioning?

Back 16

The purpose of this is to explain to your market segment why you are the best company for them and what sets your products or services apart.

Front 17

Define Rebranding

Back 17

Redoing a product's position to respond to marketplace changes.

Front 18

Define Retro-branding

Back 18

A once popular brand that has been revived to experience a popularity comeback, often by riding a wave of nostalgia.

Front 19

Brand personality

Back 19

A distinctive image that captures a goods or service's character and benefits.

Front 20

What is a perceptual map?

Back 20

A perceptual map is a technique used to visually describe where brands are "located" in consumers' minds relative to competing brands.

Front 21

Define Direct competition.

Back 21

Direct competition are companies / products like yours (ex: coke and Pepsi)

Front 22

Define Indirect competition.

Back 22

Indirect competitors are substitutes for your product / company (ex: milk or water).

Front 23

What is the five-step process of consumer decision-making

Back 23

Problem Recognition

Information Search

Evaluation of Alternatives

Product Choice

Post-Purchase Evaluation

Front 24

Explain the marketing objective(s) of the Problem Recognition stage.

Back 24

Marketing objective is to help consumers recognize an imbalance between their present state and their preferred state.

Front 25

Explain the marketing objective(s) of the Information Search stage.

Back 25

Marketing objective is to understand the target markets info sources, use them to attract consumers’ attention, and get to consumers’ consideration set (a set of consumer’s most preferred choices/brands).

Front 26

Explain the marketing objective(s) of the Evaluation of Alternatives stage.

Back 26

Marketing objective is to determine what attribute has the most influence on the target market’s decision. Then point out the superiority on the most influential evaluative criteria.

Front 27

Explain the marketing objective(s) of the Product Choice stage.

Back 27

Drive first purchases. (quicker decisions if loyal).

Front 28

Explain the marketing objective(s) of the Post-Purchase Evaluation stage.

Back 28

???

Front 29

internal information search

Back 29

Memory or past experience.

Front 30

external information search

Back 30

0rovider and/or third party (customer review, family/friends, experts).

Front 31

Explain purchase involvement and how it affects decision making.

Back 31

purchase involvement is defined by the relative importance of perceived consequences and risks of a decision. The more complex a purchase the more involved one will be in the purchase.

Front 32

Problem solving required for High involvement

Back 32

extended problem solving

Front 33

Problem solving required for Medium involvement

Back 33

limited problem solving

Front 34

Problem solving required for Low involvement

Back 34

habitual decision making

Front 35

B2C influencing factors- Explain how each may affect consumer decision-making: a. Know the Maslow’s Hierarchy of Needs and how it’s relevant to customer behavior (as motivation and benefits sought);

Back 35

???

Front 36

Producers

Back 36

Produce goods & services

Front 37

Resellers

Back 37

Buys to resale (includes wholesalers, retailers, rentals, etc)

Front 38

Organizational Buyers

Back 38

Buys to support operations (gov’t, non profit, etc)

Front 39

What defines B2B vs. B2C?

Back 39

???

Front 40

Understand the unique characteristics of B2B market.

Back 40

- usually multiple buyers

- geographic concentration (think Detroit auto)

- small number of customers/buyers but buy much larger quantity.

Hint 40

Three things.

Front 41

What are the unique characteristics of B2B demand?

Back 41

Derived Demand

Inelastic Demand

Fluctuating Demand

Joint Demand

Hint 41

4 things.

Front 42

Derived Demand

Back 42

Demand for business products caused by/derived from demand for customer goods or services (in b2c)

Front 43

Inelastic Demand

Back 43

Demand for b2b products doesn’t change much bc of change in $$

Front 44

Fluctuating Demand

Back 44

demand in business marketing fluctuates more than customer market

Front 45

Joint Demand

Back 45

two or more b2b goods are often used together to create a product; sales of one product partially dependent on availability of another product

Front 46

Explain the buying framework in B2B

Back 46

framework that identifies degree of effort a firm needs to collect information & make a purchase decision.

Front 47

New-task buy

Back 47

new/complex or risky purchases that require extensive decision-making.

Front 48

Modified rebuy

Back 48

previous purchases that req some change & limited decision-making.

Front 49

Straight rebuy

Back 49

routine purchases that req minimal decision-making.

Front 50

Understand the purpose of market research

Back 50

The process of collecting, analyzing, and interpreting data about consumers, competitors, and the business environment in order to help the manager make informed decisions and in turn improve marketing effectiveness.

Front 51

What are some ethical issues in conducting research?

Back 51

“do no harm to subjects” – consumer/respondent privacy protection; confidentiality and anonymity assurance; be extra careful w/ vulnerable respondent groups.

Front 52

Syndicated research

Back 52

Data collected on a regular basis and available (for purchase) to multiple firms; general, broad, not tailored to specific business buyer. Upside = reasonable price for business. Downside = business not involved in question-asking process. [typically secondary]

Front 53

Custom research

Back 53

Data collected for a particular firm to answer a specific question. Upside = business involved in question-asking process. Downside = generally expensive. [can be secondary OR primary]

Front 54

Why is asking the right question and clearly define research question important in research?

Back 54

Research questions give your project a clear focus. They should be specific and feasible, but complex enough to merit a detailed answer.

Front 55

Primary data/research

Back 55

information collected directly from respondents to specifically address the question at hand.

Front 56

Secondary data/research

Back 56

data that has been collected for some purposes other than the problem at hand.

Front 57

Qualitative research

Back 57

generally non-numerical; when researchers study things in their natural setting, with intent to interpret phenomena in terms of the meanings people bring to them. (think when professor was studying trash-habits of folk in the park)

Front 58

Quantitative research

Back 58

the process of collecting and analyzing numerical data. Can be used to find patterns and avgs, make predictions, test causal relationships, & generalize results

Front 59

Exploratory research

Back 59

open-ended/semi-structured for more open answering. Referred to as “soft” information [narratives, descriptions, texts/words w/o clear conclusion.] {includes customer interviews, focus groups, case studies, ethnographies, & projective techniques}

Front 60

Descriptive research

Back 60

based on a large number of observations. Results typically expressed in quantitative terms [avgs, %s, other descriptive stats] {includes cross-sectional design & longitudinal design}

Front 61

Causal research

Back 61

a technique to understand cause-and-effect relationships: a change in one thing (cause-independent variables) that causes a change in something else (effect/outcome/ dependent variables)

Front 62

Explain the advantages of secondary research

Back 62

Data is available anywhere/anytime, at cheap rates, quickly and readily, from many sources, doesn’t require specialized training, and is generally collected over years.

Front 63

Explain the disadvantages of secondary research

Back 63

Data may be inaccurate, outdated, irrelevant, not privatized, not have quality control, and biased.

Front 64

Give examples of commonly available secondary data source

Back 64

internal: company reports, previous company research, salesperson feedback, customer feedback.

external: published research, trade organizations, syndicated research, government sources, historical accounting data, census, trade journals, books magazines, internet, periodicals, etc.

Front 65

Understand the objectives of exploratory research and the type of data it collects

Back 65

Used to come up with ideas for new strategies and opportunities or to get a better handle on a problem they are currently experiencing with a product/service. Collects qualitative data.

Front 66

Explain Customer interview

Back 66

researchers conduct one-on-one discussions with consumers

Front 67

Explain Focus groups

Back 67

a product-oriented discussion among a small group of consumers; can be virtual

Front 68

Explain Case study

Back 68

comprehensive examination of a firm; especially useful in B2B research

Front 69

Explain Ethnography

Back 69

marketers visit homes or participate in consumer activities to learn (by observation) how products are used

Front 70

Explain Projective techniques

Back 70

explore people’s underlying feelings especially when consumers are unable or unwilling to express their true reaction/feelings

Front 71

Understand the objectives of descriptive research and the type of data it collects

Back 71

Often used to follow up qualitative research; probes systemically into the marketing problem and bases its conclusions on a large sample of participants. Collects quantitative data.

Front 72

Explain Cross-sectional design

Back 72

questionnaire at one point in time. Systematic collection of responses. May happen on more than one occasion but usually not from same pool or respondents.

Front 73

Explain Longitudinal design

Back 73

tracks responses of the same sample of respondents over time. Weekly, monthly, etc.

Front 74

Understand the basics of causal research.

Back 74

A technique used to understand cause-and-effect relationships: a change in one thing (cause – independent variables) that causes a change in something else (effect/outcome/dependent variable).

Front 75

explain causal research's applications in practice.

Back 75

Often uses experiments – which attempt to establish causality by ruling out alternative explanations;