Flashcards in Final Exam 2 Deck (35)
What is SWOT?
Strengths, weaknesses, opportunities, and threats
What are the 5 C's of Marketing Strategy?
Customers, Company, Collaborators, Competitors, Context
What is a Target Market?
Group of customers a company wishes to reach
What is the Marketing mix?
Controllable variables the company uses to satisfy the target group
What is a PESTAL analysis?
Political, Economic, Social, Technological, Environment, and Legal factors analysis
What are the 5 parts of a customer's profile/persona?
Demographic profile - age, gender, education
Geographic variables - state, population, climate
Psychographic profiling - lifestyle, values, personality
Behavioral variables - usage rate, brand loyalty, benefits sought
RFM - Recency, frequency, monetary
What are the 4 P's of marketing?
Product - physical characteristics, warranties, application benefits
Place - right product to the right place at the right time, in the right amount and in the right condition
Price - combination of science and art to set
Promotion - personal selling, mass selling, sales promotion
What are 4 market situations?
Monopoly -> one company for an entire customer base
Monopolistic Competition -> number of different firms offer marketing mixes that at least some customers see as different
Oligopoly -> small number of firms control the market
Pure Competition -> large number of firms compete with essentially similar of commodity-like products
What are some external marketing environments?
Economic - global economy, rapid change, interest rates are the key economic forces
Political - political stability, trade policy, labor laws
Legal - FDA, Consumer Product Safety Commission (CPSC) (health and safety, advertising standards, product safety, product labeling, consumer rights)
Cultural/Social - Health consciousness, demographic data
What is market segmentation?
An aggregating process that clusters people with similar wants and needs into a market segment.
What is the difference between segmenting and combining markets?
Segmenting develops a different marketing mix for each segment (single target market approach and multiple target market approach)
Combining aims at two or more submarkets with the same marketing mix (could stem from company resources)
What are some criteria for determining segments?
-People in the segment are roughly alike, along some important customer dimensions
-People in the segment are different from people in other segments
-The segment is large enough to be profitable
-the segmenting dimensions should be useful for identifying customers and designing the marketing mix
-If chosen to pursue: the company has the resources available to adjust its marketing mix to appeal to each segment
What are some behavioral dimensions of a consumer?
-Rate of use
-Kind of shopping
-Type of problem-solving
What is Positioning?
An approach that refers to how customer think about proposed or present brands in a market; the image your product/service has in the minds of your target customers.
What is dissonance?
uncertainty about the rightness of a decision (second guessing)
What are the steps in a consumer adoption process?
Awareness, Interest, Evaluation, Trial, Decision, Confirmation
Consumer Problem Solving
Drive - unsatisfied need exists
Cues - stimuli that trigger a drive or response
Response - an effort to satisfy a drive
Reinforcement (response back to cues)
What is the PSSP Heirarchy?
Selective Exposure - We notice messages that interest us
Selective Retention - We remember messages that are consistent with beliefs and attitudes but do not remember those that conflict
Selective Perception - We let in messages that are consistent with beliefs and attitudes and filter out those that conflict
What is branding?
the use of a name, term, symbol, design (or combination) to identify a product and create an emotional repsonse.
What are some Product Classes?
Convenience products - staples, impulse, emergency buys
Shopping products - homogenous (same), hetero
Specialty products - few or no substitutes"
Unsought Products - new unsought, regularly unsought
What are the four parts of a typical product life cycle?
Market Introduction - gain awareness
Market Growth - stress differentiation
Market Maturity - maintain brand loyalty
Sales Decline - milk, or phase-out or sell
Note: R&D is prior to introduction
What is a direct channel system and why would you choose it?
Direct sales to consumer (no in between channels)
-internet makes direct distribution easier
-direct contact with customers
-suitable intermediaries not available
When are indirect channels best?
-Consumers may shop at specific places or specific brands
-established buying behaviors
Adjust Discrepancies in Quantity (difference between the quantity of products that is economical for a producer to make or the quantity that consumers or users really want)
Assortment with Regrouping Activities
What are three types of Market Exposure?
Intensive - everywhere (convenience products)
Selective - sell it where it sells best (shopping products)
Exclusive - (specialty products)
What are some trade offs between cost and customer service levels?
Lost sales goes down as customer service increase, but only to a certain degree.
Providing too much customer service can actually detract from the overall marketing effort because it can increase cost and possibly price the product out of the reach of consumers in the target market.
What is the Storing function?
The marketing function of holding goods so they're available when they're needed.
-necessary when production does not evenly match consumption
-Storing can smooth out sales, increase profits and enhance customer satisfaction
-balance supply and demand to keep rpices from sudden rises or falls
-take advantage of economies of scale in production
-keep stocks at convenient locations for customer's needs
What is the difference in One-price and Flexible Price poilcies?
-The same for everyone
-Frequently purchased items
-Different customers, different prices
-uses databases to make it easier
-sales people an adjust prices
-too much cutting can hurt profits