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The following quizlet cards were based on the course textbook and learning objectives. Any resemblance to exams or quizzes is purely coincidental.
Terms in this set (80)
What are the three factors that affect consumers microenviroment, illustrate how they affect it
company capabilities: need to match competencies with customer needs
competition: can affect purchasing options
corporate partners: can deliver/not deliver on company promises
List the factors in the firm's macroenvironment
3. social/natural trends
4. tech advances
5. economic situiaton
6. Political/legal environment
What are the two dimensions of culture that marketers must take into account?
1. Country culture
2. Regional subculture
Give an example of a difference in regional subculture
Quebec: soft drink
British Colombia: pop
What is the key challenge with marketing to millennials?
If they believe the sell is "too hard", they aren't gonna buy
What's the key marketing strategy for GenXers
WOM advertising from people they know and trust
What are the 5 main demographic actors we cover in Ch.3
List out and describe the major social and natural trends that impact marketing decisions
1. greener consumers: yeah
2. marketing to children:
3. privacy concerns: we act like we care
4. time-poor society: many people multitask bc of it, also 1/4 work >10 hrs a day (damn)
5. health and wellness concerns
Which generation apparently is the only one that balances work-life?
Gen Y, Gen Z wants to bow down to our corporate overlords
What generation is much less interested in status products?
List the 5 steps of the consumer decision process
1. Need recognition
2. Information search
3. Alternative Evaluation
4. Purchase Decision
5. Post purchase
What factors influence the need recognition?
Greater discrepancy between needy state to desired state
What are the two different kinds of needs that a consumer has? List and describe
1. Functional: does it do the thing that I need it to do
2. Psychological : does it make me feel like a real cool guy
List a few strategies that marketers use to influence the need recognition step
placing products near checkout lanes or complemtentary products, reminder advertising, status marketing etc.
What 4 factors influence the length and intensity of information search?
1. Degree of perceived risk (performance, financial, social, psychological)
2. Importance of product to customer
3. Perceived benefits vs perceived cost of search
4. Locus of control (internal will spend longer)
What are the 2 different key types of information
internal: buyer examines own memory/knowledge base
external: seeks information outside personal knowledge
What are the 2 main kinds of attribute sets
retrieval sets: brands or stores readily brought forth from memory
evoked sets: only brands or stores considered when making a purchase decision
e.g. Imaad thinks of many clothing companies to buy pants from: H&M, the Gap, Levi's, True Religion. But he literally only considers American eagle
What are determinant attributes?
product or services features that are important to the buyer and are perceived to differ
What are the 3 main types of consumer decision rules?
compensatory decision rule: assumes that consumers trade one characteristic for another (e.g. the superb mileage OFFSETS the higher price)
noncompensatory decision rule: only considering based on a subset of characteristics, ignoring other attributes (e.g. price is > this, yeah no never buying)
heuristics: Price-based (you get what you pay for), Brand, product presentation
What situational factors can marketers influence to help facilitate purchases?
1. having everything in stock
2. offering financing
3. many checkout lanes
5. price-match guarnatees
list goes on
What are the 3 post purchase outcomes?
1. customer satisfaction:
2. Postpurchase dissonance (buyer's remorse)
3. customer loyalty
What are the 3 categories of factors that influence consumer buying decisions?
1. psychological factors
2. social factors
3. situational factors
List the 5 psychological factors in consumer buying decision process
motive(need or want strong enough to seek satisfaction), attitudes (person's enduring evaluation and behavioural tendencies -> cognitive, affective, behavioural), perceptions (process by which we subset information), learning, lifestyle (how you choose to spend time and money)
List the 3 social factors in consumer buying decision process
reference groups: one or more persons an individual uses as a basis for comparison regarding beliefs, feelings and behaviours
List the 3 situational factors in the consumer buying decision process
purchase situation: predisposed to purchase certain products/services (e.g. bday present might get smth fancier)
shopping situation: store factors that make u not ok with things
temporal state: morning person, night owl, mood swings etc.
What are the 4 aspects of perception?
1. selective exposure
2. selective attention
3. selective comprehension
4. selective retention
How do reference groups affect buying decisions?
1. offering information
2. providing rewards for specific purchasing behaviors
3. enhancing a consumers self image
How do high involvement and low involvement decisions mainly differ?
their level of problem solving: extended problem solving for buying something like a car (bc of perceived risk)
but impulse purchases or habitual decision making (saw Starbucks sign and went) are examples of limited problem solving.
List out the 5 steps in the segemtation, targeting and positioning process
1. Strategy or objectives
2. Segmentation bases
3. Evaluate segment attractiveness
4. Select target market
5. Identify and develop positioning strategy`
List out the 4 segmentation bases
What's the difference between psychographic and behavioural segmentation?
psychographic: lifestyle, personality, socio-economic status
e.g. being adventurous, Achievers, conservative, liberal
behavioural: benefits sought: convenience, economy, prestige, usage, loyalty etc.
What's the key difference between demographic and psychographic segmentation?
Demographics are _easy to measure_, it's about who the person is from an outsider's perspective
What are the 3 components of a person's psychographic makeup?
1. Self-values: life goals, not just daily goals
2. Self-concept: how you see yourself in the context of your goals
3. Lifestyle: how we live our lives to achieve our goals
What are the three components of behavioural segmentation?
1. Why they buy
2. How often
3. How they plan to use the products or services
What are the 3 different kinds of behavioural segmentation?
1. occasion segmentation: segment based on when a product or service is purchased or consumed (e.g. men buying suits for work or only special occasions)
2. benefit segmentation: what consumers' needs are and how our offerings best satisfy (e.g. RBC divides personal, business etc.)
3. loyalty segmentation: catering to who is most loyal, e.g. Spotify premium
What are the 4 main criteria used to evaluate segment attractiveness
1. Identifable: must be distinct
2. Reachable: hard to get uni students when they cynical af
3. Responsive: must react similarly and positively, does it make sense with your current brand?
4. Substantial and profitable
List and define the first 4 targeting strategies
1. mass or undifferentiated (mass marketing): if product/service perceived to provide same benefits to everyone
2. differentiated: target several market segments with a different offering for each -> helps obtain bigger share of market
3. Concentrated: single primary target market, focuses all energies on providing a product to fit that market's needs
4. Micromarketing one-to-one: firm tailors a product or service to suit individual customer's wants or needs
what is positioning?
positioning is the mental picture or perception that people have about a company and its products
what are the 4 elements of a positioning statement?
1. target market
2. offering name or brand
3. product/service category or concept
4. unique point of difference/benefits
What are the 4 different methods to position?
1. value: relationship between price and quality
2. product attributes: focus on what's most important to the target market,
3. benefits/symbolism: benefits of the brand and psychological meaning of the brand to consumers
4. competition: position head-to-head
what is the values and lifestyle survey (VALS) used for?
What are the 5 steps of the marketing research process?
1. Define research problem and objectives
2. Design research plan
3. Collect data
4. Analyze data and develop insights
5. Determine action plan
What are the three major sources of poor research design?
1. basing research on irrelevant research questions
2. focusing on research questions that marketing research can't even answer
3. addressing research questions that already have known answers
give an example as to how internal secondary data can be used to drive a marketing decision
Lowe's found based on their customer purchases that people buy sprinklers whenever they buy garden hoses. Therefore it's best to put garden hoses next to sprinklers
What statistical analysis tool is needed when dealing with large internal secondary data
data mining: variety of statistical tools to uncover previously unknown patters in the data or relationships among different variables.
Compare the advantages and disadvantages of internal vs external secondary data
adv: can lead to many insights, easily accessible and collected
disadvantage: storing data can be costly, data mining needed to actually extract information
adv: low cost, widely available
disadvantage: may not be relevant since it was acquired for something completely different
What are 3 popular sources of external secondary data?
1. syndicated data: from market research firms
2. scanner dat: obtained from scanner readings of UPC codes
3. panel data: same consumer time-series data
What's the key difference between panel and scanner data?
scanner data: focus on weekly consumption of particular good
panel data: total weekly consumption of particular person or household
What are some pros and cons of using secondary data overall?
pros: saves time, reduces data collection costs
cons: may not be relevant, not as timely, sources aren't original, methodologies may not be ideal
what are some pros and cons of using primary data?
pros: specific to immediate data needs, offers additional behavioural insights
cons: takes money, time, experience to actually know how to do it
List the 5 sources of secondary data
Census, sales invoices, internet, books, journal articles, syndicated data
What are the 4 main kinds of qualitative research?
2. in-depth interviews
3. focus group
4. social media
What are the 4 main kinds of quantitative research
What is the most common observational method of collecting primary data?
ethnography: observational method that studies people in daily lives and activities.
e.g. microsoft Kinect sensors in retail stores are watching ur every ****ing move
What are the pros and cons of using social media for market research
pros: accessible, large, current, honesty, can search/filter data
cons: not statistically representative, anonymity, no depth of info about consumer, no consent
What are some major drawbacks of survey research
1. consumers unable to answer
2. unable to recall
3. interpretation differences
4. social responsibility bias
What's the difference between structured and unstructured questions on a questionnaire?
structured: close-ended, discrete sets of response alterantives
unstructured: open-ended, answer in own words
What are 5 main things to avoid when designing a questionnaire?
1. questions respondednent cannot easily or accurately answer (e.g. how much did u spend on groceries like who tf know that)
2. avoid sensitive questions unless they are absolutely necessary
3. avoid double barrelled questions (e.g. do u like shopping and food?)
4. avoid leading questions
5. one-sided questions
How do we define a "product" in marketing?
anything of value to a consumer and can be offered through a marketing exchange
What are the 5 main reasons firms create new products?
1. changing customer needs: either actually needing them or trying to change them
2. market saturation, without new products, firm value declines
3. product diversity helps mitigate risk
4. fashion cycles: apparel, books, arts, software sales mostly come from new products
5. improving business relationships
What is the diffusion of innovation?
the process by which the use of an innovation, whether a product or a service, spreads throughout a market group over time and over various categories of adopters
When the Apple iPod first came out, what kind of product was it?
pioneer product: truly new product introductions
What's the other kind of innovation other than pioneers?
Disruptive innovations: new, generally simpler, less expensive than existing products or services that serve the same job
What are the 5 main steps of the consumer adoption cycle?
2. Early adopters
3. Early majority
4. late majority
What are some key characteristics of innovators and why are they important?
key characteristics: risk-taking, highly knowledgable about product category, not price sensitive
why important: help product gain its first market acceptance, through WOM they help bring in early adopters
What are some key characteristics of early adopters and why are they important?
characteristics: less risky than innovators, tend to wait till review to buy, enjoy novelty and considered opinion leaders
why important: bring on the next 3 steps
What are some key characteristics of early majority and why are they important?
importance: until they buy, you're probably not profitable
charac: more risk-averse, tend to wait until bugs are figured out in product, they wait till movie is out on Netflix
What are some key characteristics of late majority and why are they important?
importance: if you've got them you've reached full market potential
characteristics: much more risk-averse, tend to wait till things are cheaper
What are some key characteristics of laggards and why are they important?
characteristics: rely on traditional products until no longer available
Why is understanding the diffusion of innovation theory important?
based on the curve's and overall diffusion speed, you can change the way you target and market your product
e.g. electronic books vs ereader adoption
What are the 4 factors affecting product diffusion speed
1. Relative advantage: to other products (e.g. swiffer mops)
2. Compatibility: consumer features and cultural differences (e.g. do people drink coffee here?)
3. Observability: benefits are easily communicated enhances diffusion process (e.g. Blendtec)
4. Complexity and trainability: less complex, easier to try -> diffuse faster, e.g. Dyson displays show u how the vacuum works
What are the 6 steps in the product development process
1. idea generation: internally, licensing, research competitors or consumer research, outsourcing R&D, Customer input, lead users
2. concept testing
3. product development
4. market testing
5. product launch
6. evaluation of results
What is reverse innovation?
when companies initially develop products for niche or underdeveloped markets, and then expand them into their original or home markets e.g. Samsung ActivWash originally developed for India now super popular as a top-loading machine
How can you use "lead users" for idea generation?
look at what lead users do: people who adjust products to their liking
steal their idea, put it in ur product (:eyes: apple)
What is concept testing?
process which a concept statement is presented to potential buyers in target market to obtain reactions
What's the difference between alpha and beta product testing?
alpha: firm attempts to determine if product will perform according to design and satisfy need
beta: uses real consumers rather than internal people to evaluate real time use
What is test marketing? is it better or worse than premarket?
introduces offering to limited geographical area prior to national launch
vs premarket: give out samples and shit
comparison: costs more and takes longer, but firms can actually study consumer behaviour
what are the 4 steps in the product life cycle? List and describe them
1. Introduction: single firm, innovators trying offering, initial losses to firms
2. Growth: rapid growth in sales, increase in competition, market more segmented consumer pref more varied, different product variations show up, firms try to establish brand
3. Maturity: late majority adopts, intense competition for market share, marketing costs rise, average price falls, all customers have pretty much adopted
4. Decline: firms start positioning niche, or dip,
List a few strategies to extend the product life cycle
1. develop new uses
2. modify product: change quality, boost performance or alter appearance
3. increase frequency of use
4. increase number of users
5. find new users
6. reposition product
7. tweak marketing strategy
Draw out the 4 variations of the PLC curve
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