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MKT Quiz 1 9/17/13


an exchange relationship between a firm and its customers

5 C's

Customer, Company, Context, Collaborators, Competitors


Segmentation, Targeting, Positioning

4 P's

Product, Price, Place, Promotion


a firm's capabilities/resources


firm's current and potential customers


firm works against and how they compare to the firm in terms of resources, capabilities


companies/people a firm works with


macro-environmental factors facing firm


grouping customers with similar needs


pursuing segment who makes most sense for firm


communicating benefits of product to intended target


benefits, what to make


how much


where to distribute product


how to communicate to targets


identify need/want, search possible solution, build consideration set


narrow consideration set, decide on retail channel


customer satisfaction, likelihood to repeat, generate word of mouth


Business to Consumer;


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


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


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


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


Marketers may change marketing mix


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


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)


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


Need to determine pricing


How fierce is the competition? Is there one firm or 30 firms?

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