BA 370 SDSU Pettiette Midterm Study Guide

What do brands gain when they position their products well?

Both sustainable advantage and competitive advantage

A _____ is a tool used by marketers to bring their target market to life.

Buyer Persona

How does market segmentation provide value to marketers?

By allowing more efficient marketing and by bringing more value to the customer

Positioning is _____.

A strategy for defining and portraying brands/products in ways that cause ideal customers to perceive them as the best solution for their needs

What is a positioning statement?

A succinct expression of a product's market position

Differentiated marketing is defined as _____.

A targeted marketing strategy where the company targets more than one market segment and develops a unique marketing mix to target each segment separately

Exploratory research is useful when _____.

Marketers have many broad research questions and need to narrow them down into more precise questions

An example of psychographic segmentation?

Marketing to regular gym goers

Common failures in creating surveys?

Failing to understand the survey population Asking too many questions Forgetting to introduce your survey

True or False: A smaller market segment will always be more effective.

False

Examples of Price

Frequent-customer discounts Odd pricing (.99) Bundle pricing

What is not a responsibility of marketing?

Fulfilling product shipments

What items are generally listed for a buyer persona?

General demographic information Goals Pain points

Why are relationships important in marketing?

Happy customers are willing to pay more for solutions from the brands they love. Happy customers are more immune to competing offers. Happy customers will readily advocate for their favorite brands through word-of-mouth marketing.

Which of the factors below do NOT suggest you have chosen a desirable target market?

If it is controversial *********** If it is sizable If it is stable If it is accessible

True or False: A great product comes from having good differentiation

True

True or False: Customer behavior is the most important thing that marketers attempt to measure through market research

True

True or False: Marketing research is used when marketers need insights into customer needs, product preferences, buying behavior, satisfaction, and many other things and the data is not readily available.

True

True or False: One of the biggest mistakes a brand can make is having a product positioning that is inconsistent with the brand's positioning.

True

True or False: Surveys are a type of market research.

True

True or False: The customer should ideally be at the center of the marketing process

True

True or False: The marketing mix framework shows that promotion is not all that marketing is

True

"According to Nielsen research, 40 percent of U.S. consumers are responsible for 75 percent of music spending" This quote is an important example to remember why we segment the market by _____.

Usage rate

One of the mistakes marketers can make is positioning product around features or technical aspects of products, rather than positioning around the _____ products create.

Value

Valuable research questions

What criteria do customers use when making purchase decisions? How likely are our customers to recommend our solutions? Which new product ideas would customers most likely purchase? How do customers rate our solutions against competing solutions?

exchange

a basic business function that takes place when a person or company satisfies a need by exchanging money for products or services

product

a good, service, or idea to satisfy a customer's needs

the marketing concept

a management orientation that focuses on identifying and satisfying consumer needs to ensure the organization's long-term profitability

the 7 Ps of marketing

a marketing mix that includes the original 4 Ps and the additional Ps of People, Physical Evidence, and Process

survey

a poll designed to gather input, information, or opinions from a specific population of people

literature search

a search for statistics and content in various blogs, books, newspapers, or magazines for data or insight into the research subject

focus group

a set of individuals from whom a researcher wishes to gain insights using a structured interview process that is moderated by a facilitator

Net Promoter Score (NPS)

a specific type of survey, used by many marketers, to measure the experience customers have with brands; a brand's net promoter score is calculated by subtracting the percent of detractors in the survey from the percent of promoters

positioning statement

a succinct expression of a product's market position

concentrated marketing strategy

a targeted strategy wherein a company chooses only one segment to target and customizes a marketing mix for that target market

differentiated marketing strategy

a targeted strategy wherein the company targets more than one market segment and develops a unique marketing mix to target each segment separately

Unique Selling Proposition (USP)

an adaptation of the product positioning statement for use in sales dialogues and communications

Promoters (scores of 9 and 10)

customers who are loyal enthusiasts, tend to buy more, stay in relationships with brands longer, refer friends, and provide feedback and ideas

Passives (scores of 7 and 8)

customers who are satisfied but not enthusiastic about the brand; they are vulnerable to competitive offerings

Detractors (scores between zero and 6

customers who are unhappy and can hurt your brand through negative word-of-mouth communications

people

encompasses the human actors who provide goods, services, and ideas to the customer

case analyses

intensive studies of representative examples (cases) of the subject under study

depth interviews

interviews with people who are knowledgeable about the general subject under investigation

demographic / socioeconomic data

measure characteristics of consumers, such as income, gender, education level, marital status, social status, and many others; analysis of this data often reveals certain segments of consumers with strong affinity or loyalty to a brand

attitudes data

measure consumers' feelings, convictions, or beliefs about a brand

intention data

measure future, anticipated behaviors; this data help marketers predict demand or future consumption

psychographic / lifestyle data

measure personality traits, interests, opinions, or lifestyle characteristics of consumers; this data are frequently combined with demographic data to let marketers create a persona of the ideal consumer

awareness data

measure the knowledge consumers have of brands, products, and solutions

motivation data

measure the motives of consumers so as to understand what conditions drive behavior

primary data

new data that marketers must collect when no data exist to help marketing researchers pursue answers to research

marketing

the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

price

the amount that is being charged for the good, service, or idea

marketing mix

the building blocks that a marketer can adjust to affect the overall marketing strategy of a product

irrelevant positioning

occurs when a product claims benefits or differentiation that no group of customers cares about

under-positioning

occurs when a product has no clear advantage or differentiation, thus failing to convey to consumers an understanding of what makes the product better

confused positioning

occurs when a product is positioned by claiming too many benefits, or worse, benefits that are contradictory

over-positioning

occurs when the product has been positioned too narrowly

doubtful positioning

occurs when the way a product is positioned touts benefits that are simply not believable, or too good to be true

marketing management

the process of setting marketing goals, the planning and execution of activities to meet these goals, and measuring progress towards their achievement

follower (in market)

other products preceded the product to market

position

the space in the market for which the product is ideally suited, or the market you would like to occupy completely

positioning

the strategic process of developing a market position for a product involving collaboration between marketing, sales, and product management teams

physical evidence

the tangible elements in the place that the good or service is sold

the selling concept

the tendency to focus on selling current products and services to customers

first (in market):

first to provide some service or functionality

exploratory research

focuses on gaining ideas or insights and is particularly helpful in funneling broad research questions into more precise ones

projective methods

form of research that uses indirect methods — usually some sort of task — that causes study participants to reveal their feelings, thoughts, and opinions or express behaviors

target audience

this is the ideal customer segment of niche you selected for the product you are positioning

reposition

to find a new niche in which to compete

secondary data

pre-existing data that was originally gathered for another purpose but is helpful for current research projects

target marketing

process of selecting one or more market segments for focused marketing efforts

descriptive research

quantitative in nature and focuses on determining how often something occurs or how two things are related to each other

causal research

research that is quantitative in nature and focuses on discovering the cause-and-effect relationship between variables

market segmentation

segmenting the larger market into smaller segments based on meaningfully shared characteristics and shared needs

demographic segmentation

segmenting the market according to statistics such as age, gender, income, ethnicity, and education

geographic location segmentation

segmenting the market according to where the consumers are located

psychographic segmentation

segmenting the market by consumer activities, values, interests, and opinions

usage behavior segmentation

segmenting the population based on how consumers use (usage situation) or how much they use (usage rate) a product

differentiation

what makes a product unique and stand out to customers above other products

A restaurant's decor would be considered which of the 7 Ps?

Physical Evidence

Consider a candy bar sold in a vending machine. The vending machine would represent which of the Ps of the marketing mix?

Place

What is the most important thing a marketer can do to ensure success of product?

Position it well

Which data is more expensive to collect?

Primary data

The research question, when referred to in marketing research, is the _____.

Primary goal of the market research

the 4 Ps of marketing

Product, Price, Place, and Promotion

Which tool is useful when trying to visualize how the product is positioned compared to competitors?

Matrix

How should you decide what to divide the market based on?

Meaningful characteristics

A common positioning error

Mixed positioning

A survey which often is just a single question, "How likely is it that you would recommend [brand] to a friend or colleague?" and measures customer experiences is called a _____.

NPS or Net Promoter Score Survey

How do the selling concept and the marketing concept differ?

The marketing concept focuses on creating a product around demand. The selling concept focuses on creating demand around a product

Which of these is NOT true about the 7 Ps of marketing?

The mix of the 7 Ps can provide differentiation The 7 Ps focus on advertising ****** The customer is at the center The pieces are interdependent

According to the most recent marketing mix, how many Ps are there in total?

7

Pre-existing data is also known as _____.

Secondary data

Demographic Segmentation is defined as _____.

Segmenting the market according to statistics such as age, gender, income, ethnicity, and education

process

the flow of activities involved in providing goods, services, and ideas to the customer

undifferentiated marketing strategy

the marketer uses only one strategy or marketing mix for the entire market; also known as mass marketing

promotion

the means of communicating with the customer

place

the means of getting the good, service, or idea to the customer

marketing research

the process of collecting and analyzing information from and about consumers to influence marketing strategy and decisions

data mining

the process of searching or "mining" for insights from the patterns, trends, and relationships within data sets