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75 Cards in this Set
- Front
- Back
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Love group |
group who loves product |
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Segmentation |
Group people into homogenous group based on similarities |
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Geographic seg |
based on geography: density, size, climate. |
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Demographic seg |
Divided based on age, gender, ethnicity, income, education, social class, religion, social class |
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psychographic seg |
based on personality, motives, OR lifestyle |
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Behavioral seg |
CORE benefits, usage situations, loyalty, rate, price sensitivity |
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Segmentation Criteria: |
1-Measurable 2-Accessible 3-durable 4-substantial 5-unique needs |
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Love Swing Hate |
Love group--very loyal to product Swing--could go either way Hate--very opposed to product |
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Targeting criteria: |
Market size. Expected growth. Competitive position. Cost to reach. |
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Positioning a product: |
Pay more for more benefits-GREEN Same for more benefits-GREEN Less for More benefits-yellow, struggle for comp Same for same benefits-Yellow, "Me too" product Lower price for same benefits-GREEN Much lower price for fewer benefits-GREEN |
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USP |
What does the company have to offer that other companies do not? |
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Perceptual map |
Way to determine how the market sees brands as similar by having people give 0-10 ratings based off how they think elements describe brand and placing on maps based off results. |
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Gap Analysis |
Looks at how important a brand's features or benefits are to consumers |
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Hierarichal Values |
Top-down approach, rate from most to least desired Then, reasons why it's most to least desired |
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Competitive angle |
Element of differentness + Personal connection |
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Five questions to sharpen competitive angle |
Need to believe Reason to believe Dominate situations Quantifiable support Unique product claim |
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Types of business products |
Materials and parts-used in manufacturing process Capital items-production process (like spoons to mix) Supplies & services-maintenance, operating, etc. |
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Types of consumer products |
Convenience products-no thought: cereal, canned veggies. Shopping products-careful purchase because they last; cell phone, laptop, etc. Specialty products-after extensive search..expensive & exclusive. Luxury automobiles, fine dining, tailored suit. SUBSTITUTES WITH RELUCTANCE. Unsought products-only face it when forced to; life insurance, cemetery plot |
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Product item |
specific version of product |
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Product line |
Put similar products together Ex) Otterbox Defense Series |
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Mix |
All products offered by company |
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Product life cycle: |
Introduction stage-introduced to market, build awareness Growth stage-emphasize distinctions, feature heavy simplified or feature-light enhanced Maturity-maximize profit by harvesting decline-rejuvenate or die? |
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New product development process: |
Idea generation-from seeing pain in market Idea Screening-Does this fit in company's objectives? Concept testing-idea tested w/customers Marketing strategy-1) target market 2) Mix Business analysis-legal issues, cost analysis Product development-create the product Test marketing-tested in realistic markets Commercialization-high trial and high repeat means GO! |
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Brand |
name, term, design, symbol, or any other feature that identifies one seller’s goods or service as distinct from those of other sellers |
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Naming brand: |
Invent a name Put together words WORST-invoke negative thoughts |
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Intangibility |
Service experiences are subjective, excellence awards make a service seem more tangible |
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Inseperability |
CANNOT separate the product from the service; care and personal attention needed |
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variability |
People have bad days and lows; training to handle unique situations |
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perishability |
when the service is finished & it is finished; hire manpower and give other responsibilities |
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7 P's of Marketing |
Product. Place. Price. Promotion. People. Process. Physical environment. |
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Servant's Heart |
high quality, low productivity |
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Tiger |
high quality, high productivity |
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kitten |
low productivity, low service |
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Fox |
Low quality, high productivity |
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5 Determinants of Service Quality |
1) Reliability-performed service on time & accurate 2) Assurance-competence, kindness 3) Tangibles-physical appearance 4) Empathy-access, communication 5) Responsiveness- Promptness. |
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Reference Prices: |
Internal-what consumers think they should pay External-what others are paying |
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Competitors |
Competitors affect price |
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Substitutes |
Subbing something for something else |
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marketing efforts |
Using marketing mix to influence value |
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Break-Even Analysis |
total revenue=total cost No profits, no losses. Above--profit is made below--money lost |
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Price Skimming |
Starting with relatively high price and gradually lowering to capture people willing to pay the price |
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Price penetration |
Starting w/ low price to capture market share |
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Four Pricing Approaches: |
Value-knows own costs, costumers values, and competitors Golden goose-own cost & customers Cost plus-knows own cost, but not more Competitive-knows owns costs, and competitors |
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Why promote? |
Promotion is done for three reasons: 1) informing customers and prospective buyers about the benefits of the firm’s product offering, (2) persuading them to try or continue using the products, and (3) reminding them of the product benefits they experience to encourage repeat purchases. |
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Push strategy |
pushes through the channel of distribution |
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Pull |
Straight to consumer |
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Advertising reasons |
1) Build awareness 2) Gain interest 3) Change behavior |
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Types of sales promotions: |
1) Value added 2) Price off Other kinds: Do good event Trade promotions, lower cost for advertising |
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Why do promotions? |
Buy now rather than later Encourage to try |
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Personal selling |
2 way communication between buyer and seller Process, positive individual character traits |
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Public Relations |
Activities that manage public image of person, organization, or brand |
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Direct Marketing |
direct communication by doing things like mail, catalog, retail, etc. |
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Elements of a good ad |
(1) brand legacy, (2) copy strategy, (3) executional considerations, (4) profiles of key customer groups, and (5) profiles of key competitors. A creative brief for Snickers candy bars might look something like this: |
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Advertising spending online, TV, and print |
72 Bil TV 62 Bil online 32 billion print |
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Facebook, Twitter, Youtube |
build awareness, generate leads, strengthen relationships |
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Google Adwords |
generate sells |
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Traditional Media marketing vs. Social Media marketing |
Traditional-1 way, sender to receiver, some word of mouth, usually ends with receiver Social-active receivers, engage in convo, friends send to friends, NOT over with receiver |
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Convergence |
Owned, purchased, and earned=viral |
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Strategy |
Reach-searches, reach, likes, seen Engage-# who stick around Convert-repeat customers (conversion rate, order value) |
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Why use social media? |
Offers flexibility, increase of credibility, build awareness at lower costs |
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Total Benefits include: |
Product benefits-enhancing quality, breaking bulk Service benefits-added value activities=promotion, installment, support Image benefits-having channel partners that enhance brand |
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Selecting channels: |
Go with a channel that accents strengths and won't be a sore spot |
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Direct channel |
Straight to customers |
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Indirect channel |
intermediary sells |
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Mixed |
direct and indirect sales |
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Intensive |
sell through as many retailers as possible |
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selective |
limited number of qualified |
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Exclusive |
Only a few, one in area |
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Online marketing |
No pressure Leave shopping carts abandoned Provides opportunity to retailers |
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Retail marketing=6 Ps |
product price place promotion presentation personnel |
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Contribution analysis |
Price-Unit variable cost*v |
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Pricing Strategies |
What a consumer is willing to pay, not anything to do with costs Perceived cost. value. benefits. price |
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Steps in setting price: |
1) Select objective 2) determine demand 3) Estimate cost 4) know competitors prices 5) Select pricing method |
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Elastic vs. Inelastic |
elastic--more flexibility with price change inelastic-NOT flexible |
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Unit margin |
Price-unit variable cost |
