Monica Elisa

  1. Target Market
    A set of buyers sharing common needs or characteristics that a firm chooses to serve.
  2. Target Market Stategy
    Market Fragmentation
  3. Three Steps of Target Market Strategy
    • 1. Segmentation - dividing a large market
    • 2. Selecting -choose which segment to make customers
    • 3. Positioning - placing a product or brand in consumers mind
  4. Segmenting Variables Specific
    • Demographics - age, income, education, ethnicity
    • Psychographic - AIOs: Activities, Interests, Opinions
    • Behaviors - Brand loyalty, purchase parttern, usage occasions
  5. Market Frangmentation
    Dividing the total market into different segments based on customer characteristics, selecting one or more segments, and develeoping products to meet those segments' needs.
  6. Segmentation
    The process of dividing a larger market into smaller pieces based on one or more meaningful shared characteristics
  7. Segmentation Variables
    dimensions that divide the total market into fairly homogeneous groups, each with different needs and preferances.

    ie. gender and hobbies
  8. Targeting (Selecting)
    Marketers evaluate the attractiveness of each potential segment and decide in/(select) which they will invest resources try to turn them into constomers
  9. Two Activites in Targeting
    • Evaluating
    • Selecting
  10. Three Evaluation Criteria
    • Homogeneous within & Heterogenous Between
    • Substantial - big enough in size
    • Meaningfully Defined - People you can get to
  11. Segment Profile
    describes a profile or description of the "typical" customer in a segment
  12. Positioning
    is to place a product or brand in the consumers' mind on important attributes in comparison to the competition
  13. Repositioning
    re-develop positioning  of a product/brand to respond to marketplace changes
  14. Retrobranding
    to bring back a once popular brand
  15. Rebranding
    How we change the position of the position of the company.

    Marlboro from womern to men
  16. Brand Personality
    is a distinctive image that captures the brand's character and benefits. Their image. ie. Disney = fun, kids
  17. How do you develop a market position?
    Developing a marketing strategy that aims at influencing how a particular market segmen percieves product/brand in comparison to the competition.
  18. Major steps in developing Market position strategy
    • Analyze Competitors
    • Offer a good service with different benefits
    • Match elements of marketing mix to the selected segment
    • Evaluate target market's responses and modify strategies if needed.
  19. Perceptual Map
    Competing markets and consumer perception.

    Walmart and Kmart vs Nordstrom and Neuman Marcus
  20. Consumer Behabvior
    • Why and how people buy?
    •    Involvment and problem solving
    •    The decision making process

    Internal, situational, and social influences
  21. Internal vs. External Information Source
    • Internal - own experience
    • External - reviews, family/friends experiences
  22. Marketing Control vs. Noncontrol
    • Control - what the company puts out themselves (bias)
    • Noncontrol - Customer ratings (non bias)
  23. Involvment
    relative importance of percieved consequences and risks of a decision

    -higher the cost the higher involvmen
  24. Problem Recognition
    • Consumer recognizes a need
    • Marketing Objective - help consumers recognize an imbalance between their present status and preffered state.
  25. Evaluative Criteria and Alternatives
    Criteria - product characteristics consumers use to compare competing alternatives

    Market Ob. - Determine which characteristic/attribute is the most influential on consumers and make that one most superior and prominent
  26. Product Choice
    • 1. Purchase Inention - decision to buy mose preferred brand
    • 2a. Brand Loyalty Heuristic
    • 2b. Country of Origin Heurisic
    • 3. Purchase Deciision

    Heuristic - mental rule of thumb for a speedy decision
  27. Post Purchase Evaluation
    • 1. Consumers Expectations
    • 2. Actual Quality/Performance of Product
    • 3a. Satisfied
    • 3b. Unsatisfied
  28. Consumer Decision Influences
    • Internal
    • Situational
    • Social
  29. Internal Influence on Decision
    • Motivation
    • Perception
    • Attitudes
    • Personality
    • Lifestyle
  30. Situational Influence on Decision
    • Physical Environment - instore displays, surroundings, arousal
    • Time - is their time to make a decision
  31. Social Influence on Decision
    Culture and Values - Languages, Laws, Customs and Norms
  32. Reference Groups
    People that have significant effect on individual's evaluation, aspirations or behavior
  33. Opinion Leader
    Person who influences others' attitudes or behaviors
  34. Conformity Effect
    person changes as reaction to real or imagined group pressure

    strongest conformaty effects come from gender roles
  35. Business to Business
    Marketing of goods and services that businesses and other organizations buy for purposes other than personal consumption
  36. Three Types of Business Customers and Uses
    • Produce goods and Services - Manufacturers
    • For resale - Wholesalers/retailers/rentals
    • To support operations - other organizations
  37. Four Basic Characteristics of B2B
    • Multiple Buyers
    • Small Numer of Customers
    • Geographic Concentration
    • Large Size of Purchases
  38. Four Types of Demand B2B
    • Derived Demand
    • Inelastic Demand
    • Fluctuating Demand
    • Joint Demand
  39. Derived Demand
    • Deman for business products is cause by/derived from demand for consumer good or services
    •    -B2B marketers must be alert to changes in consumer trends
  40. Inelastice Demand
    • Demand of produce does not change because of increases/decreases in price
    •    -price increases in partshas little effect

    ie. gas
  41. Fluctuating Demand
    Demand in busienss market flucuates more than consumer markets.

    ie. John Deer - such a big purchase that will only be needed to make once every 5 years
  42. Joint Demand
    Demand for 2 or more goods used tog together to create a product

    ie. Computer - monitor, keyboard, mouse, computer
  43. Three Buying Situations
    Identifies how much information will need to be collected for purchase decision

    • Straight Rebuy
    • Modified Rebuy
    • New-task Buy
  44. Straight Rebuy
    Routine purchases that require minimal decision making - toilet paper
  45. Modified rebuy
    Previous purchases that require some change and limitd decision making

    ie. printer - need one but updated one
  46. New-Task Buy
    New and complex or risky purchases that require extensive decision making

    ie. new car
  47. Two Buying Methods
    Professional Buyer - Trained professionals typically carry out buying in B2B markets.

    Buying Center - Group of people who influence and participate in purchasing decisions.
  48. Buying Center
    • Iniator                                                                   Influencer
    • User                           Buying Center                     Decider
    • Gate Keeper                                                            Buyer
  49. Business Buying Decision Process
    • Problem Recognition
    • Infomration Search
    • Evaluation of Alternatives
    • Product and Supplier Selection
    • Post Purchase Evaluation
  50. Market Research
    Process of collecting, analyzing, and interpreting data about consumers, competitors, and the business environment in order to improve marketing effectiveness
  51. Syndicated Research
    Data collected on regular babsis and available to multiple firms
  52. Custom Research
    Data collected for a particular firm to answer a specific question.
  53. Primary data vs. Secondary data
    Primary Data  is information collected directly from respondents to specifically address the question at hand

    Seconday Data has been collected for some purposes other than the problem at hand.
  54. Exploratory (Qualitative) Research
    • Customer Interviews
    • Focus Groups
    • Case Study - examination of firm
    • Ethnography - learn how products are used from participants
    • Productive Techniques - explore peoples underlying feelings
  55. Descriptive (Quantitative) Research
    • Base on large numbers of observations
    • Results typically expressed in quantitative terms (averages, percentages, stats)

    Cross Sectioinal Design - Questionnaires at one point in time

    Logitudinal Design - tracks the responses of the same sample of respondents over time
  56. Causal Research
    A technique to understand cause and effect relationships: a change in one thing causes a change in something else.
  57. What is a product?
    • Goods, services, ideas that satisfies customer needs.
    •    -tangible products; services; ideas;people; places
    •    - everything a customer receives in an exchange
    • Productive Value proposition
    •    -benefits the consumer will recieve if she buys the product
  58. What is a Service?
    Intangible products (acs, efforts, or performances) exhanged from producer to user without ownership rights.
  59. Four Characteristics of Service
    • Intangibility - customers cant see, touch, or smell, service
    • Inserperability - can't seperate production from consumption
    • Perishability - cant store a service for later sale or consumption
    • Variability - cant standardize the same service performed by the same individual
  60. Three Layers of Product Concept
    • Core Product - Basic Benefits ie Car:transporation
    • Actual Product - Brand, Features, Appearance. ie. mazda, silver,
    • Augmented Product - Warranty, Instalation, Deliver, Customer Support Services.
  61. Business to Business Products
    • Equipment
    • Raw Material
    • Special Services
    • Component Parts
    • Maintenance, Repair, Operating products
  62. Consumer Product Classifications
    • Durable Goods (long term)
    • Nondurable Goods (short term)
  63. How Consumer Shop for Products
    • Convenience Products
    • Shopping Products
    • Unsought Products
    • Specialty Products
  64. Convenience Products
    nondurable, frequently purchased, minimum effort, low priced, widely available.

    • -staple products (bottled water)
    • -impulse products (candy bars)
    • -ermergency products (tampons)
  65. Shopping Products
    purchased infrequently with significant effort in comparing the various offerings, some brand loyalty

    • -attributes based shoppin products (cell phone)
    • -price based shoppin products (cars)
  66. Unsought Products
    little awarness/interest until need arises; often with new product/innovation; require much advertising and personal selling
  67. Specialty Products
    unique characteristics that are important to buyers; often involves considerable effort; often use status appeal & limited distribution to maintain status
  68. FTC says The Process of Innovation
    A product must be entirely new or changed significantly to be called new, and a product may be called new for only six months.
  69. Marketers say The Process of Innovation
    Innovation; anything that customers percieve as new and different
  70. Three Types of Innovation
    • Discontinuous Innovations
    • Dynamically Continuous Innovations
    • Continuous Innovations
  71. Discontinous Innovations
    Totally new product to the world; Requires a great amount of learning. e.g. television, computer, automobile
  72. Dynamically Continuous Innovations
    Significant change to an existing product; requires some learning
  73. Continuous Innovations
    Modification to an existing product to set it apart from competitors; requires little learning
  74. Developing a New Product
    New product development can be creating totally new products or making an existing product better
  75. Product Adaption
    process by which a consumer or business customer begins to buy and use a new good, service, or idea
  76. Diffusion
    process by which the use of a product spreads throughout a population
  77. Stages in Consumer Adoption of a New Product
    • Awarness
    • Interest
    • Evaluation
    • Trial
    • Adoption
    • Confirmation
Card Set
Monica Elisa
Chapter 7