Marketing 101 Exam 2

Lifestyle Profiles
Analyzing consumer lifestyles (psychography) means examining the way people live rather than where they live (geography) or their age, income, or occupation (demography). Lifestyle analysis is based upon a person’s activities, interests and opinions.
Opinion Leaders Impact
Individual whose ideas and behavior serve as a model to others.
Satisfaction
eliminated driving need
Satiation
taking the edge off a need
Maslow’s Theory
a need that goes unfulfilled, so you feel the need to resolve it
Hierarchy
a group of needs that will have one rise to the top and will put aside or all needs
5 Levels of Maslow
1. Physiological (physical) 2. Safety 3. Social 4. Social 5. Recognition 6, Self-Realization; Self-Actualiazation
Added Needs onto Maslow
1.Knowledge 2.Aesthetic
Consumer Vs. Business Product
(A) For personal or family consumption (B) Purchased by business, companies; an indirect profit off purchase
Direct to Consumer
Direct marketing of products to consumers via magazine, tv, website
Direct Business
is a form of advertising that reaches its audience without using traditional forms; instead conventions etc.
B2B
commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer
Final Consumers
The final consumer’s decision is the way in which people gather and assess information adn choose among alternative goods, services, organizations, people, places and ideas
Organizational Consumers
Buy goods and services for further production usage in operating the organization, or resale to other consumers
Applying Segmentation Factors
1. Undifferentiated (Mass Marketing)–one basic marketing plan 2. Concentrated–a narrow specific segment, one specialized plan 3. Differentiated (multiple segmentation)–two or more well defined consumer groups
Reference Group Impact
Influence thoughts and behavior. Face-To-Face: Family, Friends General: Ads targeting College students
Perceived Risk (before purchase)
*Financial (affordability) *Social Risk *Psychological *Physical *Time Risk (limited time offer)
Derived Demand
Occurs for organizational consumers because the quantity of the items they buy is often based on anticipated demand by their subsequent users
Brand Extension
A strategy by which an established brand name is applied to new products; eases product into market process
Individual (Multiple) Branding Costs
Separate brands used for different items or product lines sold by a firm
Family (Blanket) Branding Costs
A strategy in which one named is used for two or more individual products. It can be applied to both manufacturer and private brands, and to both domestic and international (global) brands
PLC
Product Life Cycle. [Combine Market Share & Growth] 1. Pre-Intro/Development Stage (?) 2. Growth (*) 3. Maturity (cash cow) 4. Decline (Dog)
Packaging
a container used to protect, promote, transport, and/or identify a product
Systems Selling
A combination of goods and services provided to a buyer by one vendor. This gives the buyer one firm with which to negotiate, as well as consistency among various parts and components
Private-Label Brand
Use names designated by their resellers, usually wholesalers, or retailers, and account for sizable U.S. revenues in many product categories. Resellers have more exclusive rights for these brands, and are more responsible for distribution and larger purchases (i.e. Gap, CVS aspirin)
National Brand
Brand name used on all products (i.e. Heinz)
Generic Brand
general brands (i.e. Potato Chips) don’t care about name on package because it won’t reflect the consumer
Slotting Fees
retailers sell slots on shelves for manufacturer’s products
Role of Price in Consumer B2B Purchasing
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Product Differentiation
Occurs when a product offering is perceived by the consumer to differ from its competition on any physical or nonphysical product characteristic, including price
Consumer Profiles
*innovators *thinkers *believers *achievers *strivers *experiencers *makers *survivors
What is a Product?
A bundle of attributes capable of exchange or use, usually a mix of tangible and intangible forms. It may be an idea, a physical entity (good), or a service, or any combination of the three
Logo
a graphic mark or emblem commonly used by commercial enterprises, organizations and even individuals to aid and promote instant public recognition
Trademark
A brand name, brand mark, or trade character or combination of the thereof with legal protection
Brandmark
A symbol, design, or distinctive coloring or lettering that cannot be spoken
Stages of PLC
1. Pre-Intro/Development Stage (?) 2. Growth (*) 3. Maturity (cash cow) 4. Decline (Dog)
Product Development Process
Converts an idea for a new product into a tangible form and identifies a basic marketing strategy
Product Diffusion
Consumers can be grouped as to how quickly they adopt a new product. *Innovators *Early Adopters *Early Majority *Late Majorities *Laggards
Cognitive Dissonance
Post Purchase Remorse; doubt that the correct decision has been made
Strategies Used to Restrain Trade
Sanctions; Quotas
Wholesaling Activities
Buy and/or handling goods and services, and their subsequent resale to organizational users, retailrs and/or other wholes; not to final customers
Market Segment
subdividing a market into clear subsets of customers that act in the same way or that have comparable needs
Marking Strategies
Outlines the way in which the marketing mix is used to attract and satisfy the target markets and achieve an organization goal
Relative Product Failure
Occurs if a firm makes a profit on an item but that product does not reach profit goals and/pr adversely affects a firm’s image
Absolute Product Failure
Occurs if a firm is unable to regain its production and marketing coasts. The firm incurs a financial loss.
Brand Loyalty
Involves consistent repurchases and preferences of specific brands. With it, people can reduce time, thought and risk.
Consumer Social Profile
*Culture *Time Expenditures *Family Life Cycle *Opinion Leaders *Social Class *Social Performance *Reference Groups
Consumer Psychological Profile
*Personality *Importance of Purchase *Innovativeness *Perceived Risk *Motivation *Class Consciousness *Attitudes or Opinions
Finale Consumer Stages
1. Stimulas 2. Problem Awareness 3. Information Search 3. Evaluation of Alternatives 4. Purchase 5. Post Purchase Behavior
Evoked Set
Things you are considering to buy
EPS
Extended Problem Solving. -high degree of percieved risk -pre-purchase risk
LPS
Limited Problem Solving. -fairly high degree of risk -problems that are faced frequently
RPS
Routine Problem Solving. -routine problems -already researched in past & know what to buy
Centralized
corporate headquarters
Decentralized
each location can buy it individually
Outer-Directed or Other-Directed
depends on other’s approval
Inner-Directed
without seeking approval of others
? Product
Unknown or problem child
* Product
Explosive Growth in sales; not profitable now but will become profitable
Cash Cow
stable, predictable sales; nurture and expand
Dogs
costing more resources than return in sales
Product Adoption
The adoption of a marketing model
Joint Demand
a situation in which demand for a product rises and falls with demand for another product with which it is used
MRO
Maintance & Repair Orginizations *fix and keep equipment operating properly
PSO
Professional Service Organizers (banker, attorney)
Business Purchasing
*Decision Maker–(authority, ability & willingness to say yet to purchase) *Buyer–(function is to process paperwork; background checks, businesses to buy from) *User–(whom you’re buying the product for & how they’re going to use it) *Specifier–(describes what kinds of attributes, components, the item is going to have) *Gatekeepers–(allows information flow within group & vendors/suppliers) *Recommenders–(somebody who is not in the company but may have experience within company or the product being bought)
Target Market Strategy Phases
1. Analyzing consumer demand 2.taregeting the market 3. developing market strategy.
Planning a Target Market Strategy
1. Determine Demand Patterns 2. Establish possible bases of segmentation 3. Identify potential market segments 4. choose a target market approach 5.select the target markets 6. position the company’s offering in relation to competition 7. outline the appropriate marketing mixes
referent groups
groups people fit into 1.)associative- you are a member of (family) 2.) aspirational (being a fan) 3.) dissociative group (go out of your way to prove you’re not a member of)
Modified Rebuy
face situation & activity; looking for a better deal
S.I.C.
Standard Industrial Classification (locate supplier for gov’t)
N.A.I.C.S.
Norther American Industrial Classification System
Market Share
how much the company recives from their market they’re in as a whole
Market Growth
how quickly the expansion & contraction of sales
Concept Test
build costumer profile on concept and then invite potential customers in field and attempt to explain what idea is in terms they’ll understand
Analyticals
low in assertiveness & responsiveness. facts & details
Expressives
high in assertiveness & responsivness. hunches to make decisions
Drivers
low responsive, high assertive. right to point
Amiables
low assertive, high responsive