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62 terms

MKT Quiz 1

MKT Quiz 1 9/17/13
STUDY
PLAY
Marketing
an exchange relationship between a firm and its customers
5 C's
Customer, Company, Context, Collaborators, Competitors
STP
Segmentation, Targeting, Positioning
4 P's
Product, Price, Place, Promotion
Company
a firm's capabilities/resources
Customer
firm's current and potential customers
Competitor
firm works against and how they compare to the firm in terms of resources, capabilities
Collaborators
companies/people a firm works with
Context
macro-environmental factors facing firm
Segmenting
grouping customers with similar needs
Targeting
pursuing segment who makes most sense for firm
Position
communicating benefits of product to intended target
Product
benefits, what to make
Price
how much
Place
where to distribute product
Promotion
how to communicate to targets
Prepurchase
identify need/want, search possible solution, build consideration set
Purchase
narrow consideration set, decide on retail channel
Postpurchase
customer satisfaction, likelihood to repeat, generate word of mouth
B2C
Business to Consumer;
B2B
Business to Business;
Business Customer
an agent buying something on behalf of an organization
Straight Rebuy
Low involvement; purchase what was purchased last time with little or no thought
Modified Rebuy
Medium involvement; something about the purchase is altered requiring some thought
New Buy
High involvement; purchase something that hasn't been purchased before requiring much thought and planning
B2C and B2B
Low Involvement: Convenience, Straight Rebuy
Medium Involvement: Shopping, Modified Rebuy
High Involvement: Specialty, New Buy
Selective Attention
consumers block out what is not relevant
Sensation/Perception
hear, taste, smell, touch
Subliminal Advertising
ad that is shown so quickly that is doesn't meet the threshold of liminal recognition
Mere Exposure
repeated exposure to an ad brings familiarity and a positive feeling
Perceptual Fluency
Customers may pay the most attention to the content of a message
Brand Associations
brands are attached to specific attributes in consumers' memory
Attitudes
a mix of beliefs and importance weights (beliefs, importance)
Decision Making
Stage 1: Determine consideration set; Stage 2: Determine brands in detail
Non-compensatory method
if a brand doesn't have important attributes, it is cut
Lexicographic method
compare all brands on most important attribute
Compensatory model
cost/benefits; One excellent attribute can compensate for a poor attribute
Psychologists Segmentation
Consumers have different motivations that drive their purchases
Economists Segmentation
Imperfect competition exists; consumers have heterogeneous needs
Marketers Segmentation
The market is comprised of different segments
Segmentation
Breaking the market into more homogeneous consumer groups
Market Segment
A group of customers who share similar inclinations toward a brand
Marketers' Goal
Create marketing mixes that meet the segment's needs
Marketing Segmentation
One-to-one Marketing (not profitable)
Marketing Segmentation (just right)
Mass Marketing (low customer satisfaction)
Niche between One-to-one and MKT Segmentation
Easier to keep customer or find new?
6 times more expensive to find new
One-to-one marketing
Each customer serves as his own segment
Product is tailored for each person's desires
Difficult to be profitable
Marketing Segmentation
As segment size increases, segments become more heterogeneous
As segment size decreases, segments become less profitable
Demographics
Marketers may change marketing mix
Geographic
Cultural differences can exist between countries or within a country
Hot climates require different products than cold climates
Psychological Segmentation
get inside the heads and hearts of customers
Vals
psychographic segmentation tool
Marketers determine people's attitudes and what they value and use this knowledge to communicate effectively
Behavioral Segmentation
behaviors people engage in
Attitudes can't be observed; behaviors can
2 Approaches to Segment Market
Managerial: top down ideation
Customer-Based: bottom-up customer needs assessment
Breadth Segmentation Strategy
serve more than one segment
Depth Segmentation Strategy
serve one segment well
Tailored Segmentation Strategy
different products for different segments
Top Down Targeting
strategic fit (corporate vision)
Bottom Up Targeting
profitability (data-informed)
SWOT
Strengths, Weaknesses, Opportunities, Threats
Estimate Growth
Use census to determine size of next cohort
Obtain sales data for previous years and extrapolate using a moving average
Profitability
Need to determine pricing
Competition
How fierce is the competition? Is there one firm or 30 firms?