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