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75 Cards in this Set
- Front
- Back
- 3rd side (hint)
Explain market segmentation |
Market segmentation is the process of dividing a large market into smaller pieces based on one or more meaningfully shared characteristics. |
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Explain segmentations variables |
Segmentation variables are dimensions that divide the total market into fairly homogeneous groups, each with different needs and preferences. |
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Define demographics. |
Demographics are statistics that measure observable aspects of a population including size, age, gender, ethnic group, income, education, occupation, and family structure. |
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Define psychographics. |
Psychographics segment consumers in terms of psychological and behavioral similarities such as shared activities, interests, and opinions (AIOs). |
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Define behavioral patterns. |
Behavioral segmentation slices consumer segments on the basis of how they act toward, feel about, or use a product. |
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Understand the three evaluation criteria to identify viable market segments. |
- Homogeneous within & heterogenous between - Attractive by market size - Meaningfully defined |
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Why do we want homogeneity within each market segment but different preferences in different segments? |
Homogeneity within = tailored marketing for that segment will be more successful. Heterogeneity between = if we had similar segments it would make catered marketing pointless. |
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Describe a segment profile. |
A segment profile is a description of the "typical" consumer in a segment. |
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Explain how a segment profile may be useful. |
From a business perspective, a segment profile might be useful to understand segment members' needs and look for business opportunities. |
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Define Undifferentiated targeting strategy |
Appealing to a broad spectrum of people; treats all consumers as one identical market |
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Define Differentiated targeting strategy |
Developing one or more products for each of the several distinct consumer groups and making sure these offerings are kept separate in the marketplace.
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Define Concentrated targeting strategy |
Focusing a firm's efforts on offering one or more products to a single segment/consumer group. |
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Define Customized marketing |
An approach that tailor’s specific products and the messages about them to individual customers. |
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Define Mass customization |
An approach that modifies a basic good or service to meet the needs of an individual. “segment of one” |
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Explain brand positioning as a marketing strategy. |
Developing a marketing strategy to influence how a particular market segment perceives a good or service in comparison to the competition. |
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What is the purpose of brand positioning? |
The purpose of this is to explain to your market segment why you are the best company for them and what sets your products or services apart. |
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Define Rebranding |
Redoing a product's position to respond to marketplace changes. |
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Define Retro-branding |
A once popular brand that has been revived to experience a popularity comeback, often by riding a wave of nostalgia. |
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Brand personality |
A distinctive image that captures a goods or service's character and benefits. |
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What is a perceptual map? |
A perceptual map is a technique used to visually describe where brands are "located" in consumers' minds relative to competing brands. |
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Define Direct competition. |
Direct competition are companies / products like yours (ex: coke and Pepsi) |
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Define Indirect competition. |
Indirect competitors are substitutes for your product / company (ex: milk or water). |
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What is the five-step process of consumer decision-making |
Problem Recognition Information Search Evaluation of Alternatives Product Choice Post-Purchase Evaluation |
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Explain the marketing objective(s) of the Problem Recognition stage. |
Marketing objective is to help consumers recognize an imbalance between their present state and their preferred state. |
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Explain the marketing objective(s) of the Information Search stage. |
Marketing objective is to understand the target markets info sources, use them to attract consumers’ attention, and get to consumers’ consideration set (a set of consumer’s most preferred choices/brands). |
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Explain the marketing objective(s) of the Evaluation of Alternatives stage. |
Marketing objective is to determine what attribute has the most influence on the target market’s decision. Then point out the superiority on the most influential evaluative criteria. |
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Explain the marketing objective(s) of the Product Choice stage. |
Drive first purchases. (quicker decisions if loyal). |
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Explain the marketing objective(s) of the Post-Purchase Evaluation stage. |
??? |
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internal information search |
Memory or past experience. |
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external information search |
0rovider and/or third party (customer review, family/friends, experts). |
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Explain purchase involvement and how it affects decision making. |
purchase involvement is defined by the relative importance of perceived consequences and risks of a decision. The more complex a purchase the more involved one will be in the purchase. |
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Problem solving required for High involvement |
extended problem solving |
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Problem solving required for Medium involvement |
limited problem solving |
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Problem solving required for Low involvement |
habitual decision making |
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B2C influencing factors- Explain how each may affect consumer decision-making: a. Know the Maslow’s Hierarchy of Needs and how it’s relevant to customer behavior (as motivation and benefits sought); |
??? |
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Producers |
Produce goods & services |
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Resellers |
Buys to resale (includes wholesalers, retailers, rentals, etc) |
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Organizational Buyers |
Buys to support operations (gov’t, non profit, etc) |
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What defines B2B vs. B2C? |
??? |
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Understand the unique characteristics of B2B market. |
- usually multiple buyers - geographic concentration (think Detroit auto) - small number of customers/buyers but buy much larger quantity. |
Three things. |
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What are the unique characteristics of B2B demand? |
Derived Demand Inelastic Demand Fluctuating Demand Joint Demand |
4 things. |
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Derived Demand |
Demand for business products caused by/derived from demand for customer goods or services (in b2c) |
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Inelastic Demand |
Demand for b2b products doesn’t change much bc of change in $$ |
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Fluctuating Demand |
demand in business marketing fluctuates more than customer market |
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Joint Demand |
two or more b2b goods are often used together to create a product; sales of one product partially dependent on availability of another product |
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Explain the buying framework in B2B |
framework that identifies degree of effort a firm needs to collect information & make a purchase decision. |
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New-task buy |
new/complex or risky purchases that require extensive decision-making. |
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Modified rebuy |
previous purchases that req some change & limited decision-making. |
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Straight rebuy |
routine purchases that req minimal decision-making. |
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Understand the purpose of market research |
The process of collecting, analyzing, and interpreting data about consumers, competitors, and the business environment in order to help the manager make informed decisions and in turn improve marketing effectiveness. |
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What are some ethical issues in conducting research? |
“do no harm to subjects” – consumer/respondent privacy protection; confidentiality and anonymity assurance; be extra careful w/ vulnerable respondent groups. |
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Syndicated research |
Data collected on a regular basis and available (for purchase) to multiple firms; general, broad, not tailored to specific business buyer. Upside = reasonable price for business. Downside = business not involved in question-asking process. [typically secondary] |
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Custom research |
Data collected for a particular firm to answer a specific question. Upside = business involved in question-asking process. Downside = generally expensive. [can be secondary OR primary] |
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Why is asking the right question and clearly define research question important in research? |
Research questions give your project a clear focus. They should be specific and feasible, but complex enough to merit a detailed answer. |
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Primary data/research |
information collected directly from respondents to specifically address the question at hand. |
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Secondary data/research |
data that has been collected for some purposes other than the problem at hand. |
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Qualitative research |
generally non-numerical; when researchers study things in their natural setting, with intent to interpret phenomena in terms of the meanings people bring to them. (think when professor was studying trash-habits of folk in the park) |
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Quantitative research |
the process of collecting and analyzing numerical data. Can be used to find patterns and avgs, make predictions, test causal relationships, & generalize results |
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Exploratory research |
open-ended/semi-structured for more open answering. Referred to as “soft” information [narratives, descriptions, texts/words w/o clear conclusion.] {includes customer interviews, focus groups, case studies, ethnographies, & projective techniques} |
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Descriptive research |
based on a large number of observations. Results typically expressed in quantitative terms [avgs, %s, other descriptive stats] {includes cross-sectional design & longitudinal design} |
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Causal research |
a technique to understand cause-and-effect relationships: a change in one thing (cause-independent variables) that causes a change in something else (effect/outcome/ dependent variables) |
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Explain the advantages of secondary research |
Data is available anywhere/anytime, at cheap rates, quickly and readily, from many sources, doesn’t require specialized training, and is generally collected over years. |
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Explain the disadvantages of secondary research |
Data may be inaccurate, outdated, irrelevant, not privatized, not have quality control, and biased. |
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Give examples of commonly available secondary data source |
internal: company reports, previous company research, salesperson feedback, customer feedback. external: published research, trade organizations, syndicated research, government sources, historical accounting data, census, trade journals, books magazines, internet, periodicals, etc. |
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Understand the objectives of exploratory research and the type of data it collects |
Used to come up with ideas for new strategies and opportunities or to get a better handle on a problem they are currently experiencing with a product/service. Collects qualitative data. |
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Explain Customer interview |
researchers conduct one-on-one discussions with consumers |
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Explain Focus groups |
a product-oriented discussion among a small group of consumers; can be virtual |
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Explain Case study |
comprehensive examination of a firm; especially useful in B2B research |
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Explain Ethnography |
marketers visit homes or participate in consumer activities to learn (by observation) how products are used |
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Explain Projective techniques |
explore people’s underlying feelings especially when consumers are unable or unwilling to express their true reaction/feelings |
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Understand the objectives of descriptive research and the type of data it collects |
Often used to follow up qualitative research; probes systemically into the marketing problem and bases its conclusions on a large sample of participants. Collects quantitative data. |
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Explain Cross-sectional design |
questionnaire at one point in time. Systematic collection of responses. May happen on more than one occasion but usually not from same pool or respondents. |
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Explain Longitudinal design |
tracks responses of the same sample of respondents over time. Weekly, monthly, etc. |
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Understand the basics of causal research. |
A technique used to understand cause-and-effect relationships: a change in one thing (cause – independent variables) that causes a change in something else (effect/outcome/dependent variable). |
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explain causal research's applications in practice. |
Often uses experiments – which attempt to establish causality by ruling out alternative explanations; |
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