Marketing Exam 2
Product Position
the way a product is defined by consumers on important attributes- the place the product occupies in consumers' minds relative to competing products
Return-on Quality Management
view quality as an investment and holding quality efforts accountable for bottom line results
The Marriott has 30 differentiated hotel brands: This is an example of which type of marketing?
differentiated marketing
age and lifecycle segmentation
dividing a market into different age and life-cycle groups
Income Segmentation
dividing a market into different income segments
Gender segmentation
dividing a market into different segments based on gender
What are Nike's Brand Elements?
- swoosh logo - reputable - stand behind their product - slogan - commitment to sustainability
What are the Levels of Product
1) Core Product (experience) 2) Actual Product (added features) 3) Augmented Product (additional services and benefits)
Demographic Segmentation is....
1) Easier to Measure 2) consumer wants/needs vary closely with demographic variables
What are the Target Marketing Steps
1) Identifying market segments 2) Selecting 1 or more of them 3) Developing products and marketing programs tailored to each
What are the 3 groups of Industrial Products?
1) Material and Parts (raw materials and manufactured) 2) Capital items ( aid in buyer's production/operation) 3) Supplies and Services (operating supplies and repair, maintenance items)
Market Segments must be what (5 things)?
1) Measurable 2) Accessible 3) Substantial (large or profitable enough) 4) Differentiable 4) Actionable
What are the steps to Individual Product Decisions?
1) Product Attribute 2) Branding 3) Packaging 4) Labeling and logos 5) Product support services
Companies must first look at ....
1) Segment size and growth 2) Segment structural attractiveness 3) Company objectives and resources
What are the 4 Types of Marketing that Target broadly/narrowly?
1) Undifferentiated marketing 2) Differentiated Marketing 3) Concentrated Marketing 4) Micromarketing
What are the steps to Positioning and DIfferentiation?
1) identify set of differentiating competitive advantages on which to build a position 2) Select an overall positioning strategy 3) effectively communicate and deliver the chosen position to the market
What are the 4 Consumer Products?
1. Convenience 2. Shopping 3. Specialty 4. Unsought
Which differences to promote
1. Important 2. Distinctive 3. Superior 4. Communicable 5. Preemptive 6. Affordable 7. Profitable
Concentrated Marketing (niche)
A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches - Involves high risk
Product
Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need
What are examples of services
Banking, Hotel, Airline travel, retail
Ex: A store targeting a single group such as left-handed people: This is an example of which type of marketing?
Concentrated Marketing
Toothpaste is an example of which consumer product
Convenience
What does Behavioral segmentation variable refer to
Dividing based on consumer knowledge, attitudes, and uses of a product or responses to a product
____ is important for marketing
Experience
Most international firms focus on smaller sets based on what 4 factors?
Geographic location, Economic factors, Political/Legal factors (type of gov, receptivity to foreign firms, monetary regulations, amount of bureaucracy), Cultural Factors
Ex: American Express gas different credit cards such as Amex vs Student: What form of segmentation does this example describe?
Income Segmentation
Having a custom made Rolls Royce is an example of which type of marketing?
Individual Marketing
Zara is a located in different countries. This is an example of which type of segmentation?
Intermarket Segmentation
How does starbucks have so much success?
It engages customers and consistently delivers the full blown starbucks experience
Shopping at Aldi is an example of which type of possible value proposition?
Less for much less
What are the 2 Dimensions of Quality
Level and Consistency
Ex: Panera caters to healthy-eating segment of people. What type of segmentation does this example describe?
Lifestyle Segmentation
Most brands moved away from ___ and moved towards ____
Mass marketing, target marketing
Bugatti is an example of which type of marketing?
Micromarketing
What are the 5 possible value Positions?
More for More, More for the Same, The Same for less, Less for Much Less, More for Less
Louis Vuitton is an example of which possible value proposition?
More for more
Walmart vs Target is an example of which possible value proposition?
More for the same
Diversification
New product and new market
Ex: Starbucks created the seasonal beverage PSL: What form of segmentation does this example describe?
Occasion Segmentation
Differentiated Marketing (segmented)
a market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each
What are the Other markets Offerings?
Organizations, people, places, ideas
____ is also a part of marketing
Packaging
Hollywood is a city that attracts many tourists. This is an example of which other market offering?
Place marketing
What are competitive advantages based on?
Price, Availability: so having lower prices or providing more benefits that justify the higher price
____ is a competitive differentiating tool
Product Features
What are the Points of Differentiation
Product, Services, Channels, People (employees), Image
Clothing is an example of which type of consumer product
Shopping
Microsoft's "Whats next" encourages girls to enter the tech/science field. This is an example of which other market offerings?
Social Marketing
Rolex is an example of which consumer product?
Specialty
What do products include
Tangible objects, services, events, persons, places, organizations, ideas
Costco is an example of which possible value proposition
The Same for Less
Product Style and Design
The style or appearance and the design shape the customer exerience
What form of marketing do unloyal customers do?
They tell the company which brands are most competitive with its own
Life insurance and Red Cross Blood Donations are an example of which type of consumer product
Unsought
What form of marketing do loyal customers do?
Word of Mouth
Competitive Advantage
a company has a unique characteristic that differs from competitors that appeals to customers
Convenience Product
a consumer product that customers usually buy frequently, immediately, and with minimal comparison and buying effort - frequent purchase - little planning - low involvement - low price - widespread distribution - mass promotion
Unsought Products
a consumer product that the consumer either does not know about or knows about but dos not normally consider buying - little product awareness - price varies - aggressive advertising and personal selling
Shopping Products
a consumer product that the customer in the process of selecting and purchasing usually compares on such attributes such as suitability, quality, price, style - less frequent purchase - comparison involved - higher price - selective distribution in fewer outlets - advertising and personal selling by both producer and resellers
specialty products
a consumer product which unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort - strong brand preference - little comparison - low price sensitivity - highest price - carefully targeted promotion
Undifferentiated marketing (mass)
a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer (the company designs a product and market program that appeals to the largest number of buyers)
Brand
a name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products
Consumer Product
a product bought by final consumers for personal consumption
Industrial Product
a product bought by individuals and organizations for further processing or for use in conducting a business
Target Market
a set of buyers sharing common needs or characteristics that the company decides to serve
Positioning Statement
a statement that summarizes company or brand positioning using this form: to (target segment and need) our (brand) is (concept) that (point of difference)
Place Marketing
activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular places
Organization Marketing
activities undertaken to create, maintain, or change the attitudes and behavior of target consumers toward an organization
What does Demographic segmentation variable refer to
age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, generation
Services
an activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything
Total Quality Management
approach to constantly improving product quality
More for the Same
attacking competitors value proposition by offering more for the same price
What does Psychographic segmentation variable refer to
based on lifestyle or personality characteristics
Occasion Segmentation
based on occasions what buyers get the idea to buy, actually make their purchase or use the purchased item
Benefit Segmentation
based on the different benefits that they seek from a product
Market Offering
combination of products, services, information to satisfy a market need or want - it brings value to target customers
Brand Elements
different components of a brand that identify and differentiate it
Differentiation
existing product in new marketing or new product in the same market
Intermarket Segmentation (Cross-Market)
forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries
What are the 4 Major Segmentation Variables
geographic, demographic, psychographic, behavioral
What does Geographic segmentation variable refer to
geographical units like nations, states, regions, counties, citieis, neighborhoods
The Same for Less
gives a good deal
Usage Rate
light, medium, and heavy product users
Hyperlocal Social Marketing
location-based targeting to consumers in local communities or neighborhoods using digital and social media
More for More
most upscale product for higher price (prestigious lifestyle)
User Status
nonusers, exusers, firsttime users, regulars
Perceptual Positioning
price and orientation (luxury vs performance)
Lifestyle Segmentation
segmentation that divides people into groups based on their opinions and the interests and activities they pursue
Loyalty Status
segmented by consumer loyalty (Based on brands, stores, companies)
Colorful Disruptive Names
separate groups through like-minded consumers Ex: "Toys & Tots" or "Carpools & Cartoons"
Less for Much Less
settle for less-optimal performance or give up some benefits for a lower price - no promotional pricing or price matching
More for Less
short run = success, long run = difficult to sustain the best of both positioning
Local Marketing
tailoring brands and marketing to the needs and wants of local customer segments - cities, neighborhoods, and even specific stores
Individual Marketing
tailoring products and marketing programs to the needs and preferences of individual customers
Micromarketing
tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing
Packaging
the activities of designing and producing the container or wrapper for a product
Product Quality
the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs
Value Proposition
the full positioning of a brand - the full mix of benefits on which it is positioned
Social Marketing
the use of traditional business marketing concepts and tools to encourage behaviors that will create individual and societal well-being
