Term
| In the immediate enviroment, what is the first factor that affects the consumer? |
|
Definition
| the firm itself, in the immediate enviroment. ex: pepsi's strengths reside in manufacturer, distribution, and promotion. |
|
|
Term
| What are the three factors affecting the immediate enviroment? |
|
Definition
1) successfully leveraging company capabilities
2.) competitors and competitive intelligence
3.)Corporate partners. |
|
|
Term
| What is used to collect and synthesize information about their position with respect to their rivals? |
|
Definition
| competitive intelligence. |
|
|
Term
| give an example of CI techniques used in the razor industry. |
|
Definition
| If schick had not paid attention to release the mach 3, it might of never introduced the quattro. |
|
|
Term
| What is the third factor that affects consumers in the immediate enviroment? |
|
Definition
| corporate partners. few firms operate in isolation. |
|
|
Term
| What is the just in time inventory system? |
|
Definition
| Inventory management systems that deliver less merchandise more frequently. the firm gets merchandise just in time to use in manufacture of sales. also known as quick response systems in retailing. |
|
|
Term
| What are macroenviromental factors? |
|
Definition
| aspects of the external enviroment that affects a company, such as culture, demographics, social issues, technology, economics, and political/ regulatory enviroment. |
|
|
Term
| what are the 6 factors affecting consumers in the macro enviroment? |
|
Definition
1.) culture
2.) political and legal influences
3.) economic
4.) demographics
5.) social trends
6.) technology |
|
|
Term
| what is culture and country culture? |
|
Definition
| culture is the shared meanings, beliefs, morals, values, and customs of a group of people. country culture is the visible nuances particular to a country, such as symbols, language, and food preferences, plus more subtle aspects. |
|
|
Term
| What is the regional culture? |
|
Definition
| the region in which people live in a particular country affects the way they refer to a particular product category. ex: soda vs pop |
|
|
Term
|
Definition
| indicate the characteristics of human populations and segments, especially those used to identify consumer markets. ex: gender, race, religion, etc. |
|
|
Term
| What do demographics provide? |
|
Definition
| an easily understood snapshot of the typical consumer in a specific target market. |
|
|
Term
| What is a general cohort? |
|
Definition
| a group of people in the same generation that have similiar purchase behaviors because they share a lot of the same experiences and are at the same stage of life. |
|
|
Term
| What are the senior cohorts? |
|
Definition
| America's fastest growing generational cohort. people aged 55 to 64 years. they have time to shop and money to spend. they are loyal and are willing to spend, but extremely quality conscious and demand hassle free environments. |
|
|
Term
| What are the baby boomers? |
|
Definition
| generational cohort of people born after world war two between 1946 and 1964. they are induvidualistic, leisure time represents a high priority, they believe they will always be able to take care of themselves, they have an obession with maintaining youth. |
|
|
Term
| What are the generation X |
|
Definition
| those born between 1965 and 1976- first generation of latchkey children, 50 percent of them have divorced parents. they have considerable spending power. they are astute customers, demand convenience, and dont believe advertising claims. |
|
|
Term
|
Definition
| people born between 1977 and 1995. biggest cohort since the original postwar baby boom. they celebrate diversity, are optimistic, induvidualistic, irregard insitutions, and are good at technology and multitasking. |
|
|
Term
|
Definition
| not teenagers, not children. they have a lot of buying power from influencing their parents. the are known as speeders. tweens are value concious. |
|
|
Term
| How is income distributed in the united states? |
|
Definition
| it has grown more polarize. highest income groups are growing, and many middle and lower income groups real purchasing power is declining. broad range of incomes created marketing opportunities at both the high and low ends of the market. people look for value now because incomes grow steadily, but taxes have increased faster. |
|
|
Term
| what are some demographics that affect the consumer and how? |
|
Definition
gender- marketers try to transcend gender roles and bounds. women make majority of purchasing decisions.
education- they can predict purchase behavior. ex: college student vs high school grad.
ethnicity- due to diversity, marketers focus on large and growing middle and minority classes. |
|
|
Term
| how do social trends impact consumers and what are some? |
|
Definition
| they shape consumer values, they include greener consumers, privacy concerns, and time poor society. |
|
|
Term
|
Definition
| strategic effort by firms to supply customers with enviormentally friendly merchandise. demand for green oriented stuff has been a boon to the firms that supply them. green adds extra value to a firms product. |
|
|
Term
| why is privacy important? |
|
Definition
| now more than ever peoples identities are being stolen, and the internet and technology makes it easier to take advantage of someone. |
|
|
Term
| Why is a time poor society important? |
|
Definition
| both parents work, and kids are busy, and leisure time has dropped. consumers have more choices about the ways they might spend their dwindling leisure hours. this means a lot of people multitask. firms want to make life easier for people. |
|
|
Term
| how have technological advances influenced consumer behavior? |
|
Definition
| they improve value of products and services, help supply chain mangers, help forecast better. |
|
|
Term
| What is an economic situation? |
|
Definition
| how consumers buy merchandise and spend money it marketers home country and abroad. |
|
|
Term
| What are three factors of an economic situation? |
|
Definition
| inflation, foreign currency fluctuations, and interest rates. |
|
|
Term
| what is the political and regulatory enviroment? |
|
Definition
| political parties, government, and organizations.includes sherman antitrust act, clayton act, ftc, robinson patman act, wheeler lea act, and nafta |
|
|
Term
| why is regulatory enviroment important? |
|
Definition
| they require manufacturers to abstain from false or misleading advertising . practices. manufacturers are required to indentify and remove any hazardous material, organizations must adhere to fair and reasonable business practices.lastly, govt enacts laws focused on specific industries. |
|
|
Term
| What is scenario planning? |
|
Definition
| process that integrates macroenviromental information to understand potential outcomes of different applications of the marketing mix, enables a firm to predict, monitor and adapt to the everchanging future. |
|
|
Term
| What are the five steps of scenario planning? |
|
Definition
step 1- assess strengths and weaknesses
step 2- assess opportunities and threats
step 3- identify different scenarios
step 4- apply the different marketing mix to the different scenarios.
step 5- assess the profitability of each scenario. |
|
|
Term
| What are the three types of buying decisions consumers go through? |
|
Definition
| Limited problem solving, habitual buying, and extended problem solving. |
|
|
Term
| What is limited problem solving? |
|
Definition
| occurs when a purchase decision that calls for a moderate amount of effort. relies more on past experience than external information. example: ordering netflix compared to other movie suppliers. |
|
|
Term
|
Definition
| buying decisions made by customers on the spot when they see the merchandise. ex: popcorn and soda at checkout counter. |
|
|
Term
| what is habitual decision making |
|
Definition
| purchase decision process in which consumers expend little concious effort. achieved by creating strong brands and loyalty.ex: ordering a latte at starbucks every day. |
|
|
Term
| what is extended problem solving? |
|
Definition
| purchase decision process; consumer devotes considerable time and effort to analyzing alternatives, often because of the perception that purchase risk entails. Ex: buying a car. consumers want to reduce percieved risk. |
|
|
Term
| What is the need recognition? |
|
Definition
| beginning of consumer decision process; consumers recognize an unsatisfied need and want to move from their needy state to desired state. needs can be classified as functional, psychological or both. |
|
|
Term
| What are functional needs, and what are psychological needs? |
|
Definition
functional needs pertain to the performance of a product. ex: rugged high performance sports wear.
Psychological needs are personal gratification consumers associate with a product or service. Ex: shoes from sex in the city, or a 50 dollar haircut. |
|
|
Term
| what are the 6 steps of the consumer decision process? |
|
Definition
| need recognition, information search, alternative evaluation, purchase, post purchase. |
|
|
Term
| what does the search for info ( the second step ) entail? |
|
Definition
| the consumer searches for various option to satisfy the need. two types: internal and external. internal is memory and knowledge. external is outside info, from family friends, etc. |
|
|
Term
| What are some factors affecting consumers search processes? |
|
Definition
the percieved benefits versus percieved cost of control.
the locus of control ( internal means they have some control, external means fate determines outcome)
actual or percieved risk ( performance, financial, psychological)
type of product or service |
|
|
Term
| what are the three types of risks? |
|
Definition
performance- percieved danger, such as phone failing before a job interview
financial- monetary outlay includes cost of purchase and costs of using item.
psychological risks- how people feel if the product doesnt convey the right image. |
|
|
Term
| what are specialty goods and services? |
|
Definition
| products or services toward which the customer shows a strong preference and for which he or she will expend considerable effort for the best suppliers. |
|
|
Term
| what are shopping goods and services? |
|
Definition
| products or services for which consumers spend time comparing alternatives, such as apparel, fragrances, and appliances. |
|
|
Term
| what are convenience goods and services? |
|
Definition
| those products or services that the consumer is not willing to spend any effort to evaluate prior to purchase. |
|
|
Term
|
Definition
| all possible choices for a product category |
|
|
Term
|
Definition
| includes brands or stores that the consumer can readily bring forth from memory |
|
|
Term
|
Definition
| alternative brands or stores that the consumer would consider when making a purchase decision. |
|
|
Term
| what is evaluative criteria? |
|
Definition
| set of salient attributes about a particular product |
|
|
Term
| what is determinant attributes? |
|
Definition
| product or service features important to the buyer and on which competing brands or stores are percieved to differ. |
|
|
Term
| what are consumer decision rules? |
|
Definition
| criteria consumers use conciously or subconsciously to select from several alternatives efficiently. |
|
|
Term
| what are compensatory decision rule |
|
Definition
| evaluation process of alternatives that trades off characteristics, such that good characteristics compensate for bad ones |
|
|
Term
| what is a noncompensenatory decision rule? |
|
Definition
| when consumers choose a product or service on the basis of a subset of characteristics, regardless of the values of other attributes |
|
|
Term
| what are decision hieuristics? |
|
Definition
| mental shortcuts that help consumers narrow choices such as price, brand, and product presentation |
|
|
Term
| What is ritual consumption? |
|
Definition
| pattern of behaviors tied to life events that affect what and how people consume. |
|
|
Term
| what is post purchase dissonance? |
|
Definition
| psychologically uncomfortable state produced by an inconsistency between beliefs and behaviors that evokes a motivation to reduce the dissonance. |
|
|
Term
| why are marketers parituclarly interested in postpurchase behvaior? |
|
Definition
| because it entails actual rather than potential customers. |
|
|
Term
| What are the three outcomes of positive postpurchase? |
|
Definition
| increased customer satifaction, decreased postpurchase dissonance, increased customer loyalty. |
|
|
Term
| when is post purchase dissonance most likely to happen? |
|
Definition
| for products that are expensive, infrequently purchased, and associated with high levels of risk. |
|
|
Term
| to reduce post purchase dissonance, what can a consumer do? |
|
Definition
| cancel their order, pay attention to positive info about the product, get positive feedback from friends, seek negative info about products not selected. |
|
|
Term
| when a customer buys a product, what are two things that could happen? |
|
Definition
| they become loyal to the brand, or they dont buy anything else, or when they have negative word of mouth. |
|
|
Term
| what are the four factors that affect the consumer decision process? |
|
Definition
| marketing mix, social factors, situational factors, and psychological factors. |
|
|
Term
| what are the four psychological factors? |
|
Definition
Learning-
motives- a need or want strong enough to cause the person to seek satisfaction.
attitudes- a persons's enduring evaluation of his or her feelings about and behavioral tendencies toward an object or idea.
and perception |
|
|
Term
| what is in the pssp hierarchy of needs? |
|
Definition
| bottom to top, physiological needs, safety needs, social needs, personal needs. |
|
|
Term
| what is the cognitive component |
|
Definition
| component of attitude that reflects what a person believes to be true |
|
|
Term
| what is the affective component of attitude? |
|
Definition
| describes how a person feels about an issue at hand - his or her like or dislike of something. |
|
|
Term
| what is the behaviorial component? |
|
Definition
| comprises a person's actions with regard to the issue at hand. |
|
|
Term
|
Definition
| process by which people select, organize, and interpret information to form a meaningful picture of the world. |
|
|
Term
|
Definition
| change in a persons thought process or behavior that arises from experience and takes place throughout the consumer decision process. |
|
|
Term
| what are some social factors? |
|
Definition
| family, culture, and reference groups |
|
|
Term
| why is it important that firms f?ocus on family |
|
Definition
| because many purchase decisions are made about products or services the entire family will consume or use. they hold a lot of spending power. |
|
|
Term
| what is a reference group? |
|
Definition
| persons individual uses as a basis for comparison regarding beliefs, feelings, and behaviors. |
|
|
Term
| What are some situational factors? |
|
Definition
| purchase, temporal, shopping |
|
|
Term
| what are situational factors? |
|
Definition
| affect the consumer decision process those specific to the situation that may override or influence psychological and social issues. |
|
|
Term
| what is meant by purchase situation? |
|
Definition
| an example would be a girl buying something from tiffany and co instead of walmart for her best friends wedding. |
|
|
Term
| what is meant by shopping situation? |
|
Definition
| how store atmosphere, saleslpeople, crowding, and in store demonstrations, promotions, and packaging help influence consumers to either buy or not buy a product |
|
|
Term
| what is meant by temporal state of mind? |
|
Definition
| how mood swings, or being a morning person, can can influence consumers ideas about products. |
|
|
Term
| What has been the driving force for growth in global economies? |
|
Definition
| technology, especcially communications technology. telegraph, radio, television, and internet. |
|
|
Term
|
Definition
| processes by which goods, services, capital, people, information, and ideas flow across national borders. |
|
|
Term
| what is globalization of production ( offshoring) |
|
Definition
| manufacturers procurements of goods and services from around the globe to take advantage of differences in cost and quality of various factors of production |
|
|
Term
| by globalizing production, what can companies do? |
|
Definition
| lower their total production costs and improve their overall competitive position because they can offer high quality products at a lower price. |
|
|
Term
| what kind of problem does offshoring lead to? |
|
Definition
| the problem of invisible beneficiaries and very visible losers. |
|
|
Term
| what is the general agreement of tariffs and trade? |
|
Definition
| organization established to lower trade barriers, such as high tariffs on goods and restrictions on products that inhibit free flow of goods across borders. |
|
|
Term
| What is the international monetary fund? |
|
Definition
| Established with the GATT to promote international monetary cooperation and facilitate expansion and growth of international trade. |
|
|
Term
| What is the world trade organization? |
|
Definition
| replaced GATT in 1994, based in geneva switzerland, it is the only established organization that deals with global rules of trade among nations. |
|
|
Term
| what is the world bank group? |
|
Definition
| development bank that provides loans, policy advice, technical assistance, and knowledge services to low and middle income countries to reduce poverty in the developing world. |
|
|
Term
| what is the key difference betwen the IMF and the world bank? |
|
Definition
| IMF focuses on maintaining the international monetary system whereas the world bank concentrate's of poverty reduction through low interest loans and other programs. |
|
|
Term
| what is the primary critizism of the IMF and world bank? |
|
Definition
| world bank is merely a puppet of western industrialized nations that use world bank loans to assist their globalization efforts. |
|
|
Term
| What are the components of market assessment? |
|
Definition
| Infrastructure and technology, economic analysis, government actions, sociocultural analysis |
|
|
Term
|
Definition
| when a country imports more goods than it exports |
|
|
Term
|
Definition
| when a country exports more goods than it imports. |
|
|
Term
|
Definition
| market value of the goods and services produced by a country in a year. most widely used standardized measure of output |
|
|
Term
| What is gross national income? |
|
Definition
| GDP plus the net income earned from investments abroad (minus payments made to nonresidents who contribute to the domestic economy) |
|
|
Term
| what is purchasing power parity? |
|
Definition
| If the exchange rates of two countries are in equilibrium, products purchased in one cost the same in the other, expressed in the same currency. |
|
|
Term
| What is human development index? |
|
Definition
| composite measure of three quality-of-life indicators: life expectancy at birth, educational attainment, and whether the average incomes meet the basic needs of life in that country. |
|
|
Term
|
Definition
| from 0 to 1. countries who score lower than .5 are classified as low human development. .8 or above is high human development. |
|
|
Term
| what are less developed nations experiencing? |
|
Definition
| rapid population growth, while many developed countries are experiencing either zero or negative population growth. countries with highest purchasing power today may become less attractive in the future due to stagnated growth. |
|
|
Term
| What is an important aspect to population? |
|
Definition
| where and how the population is distributed. rural vs urban. |
|
|
Term
| How have coke and pepsi made adjustments to be able to compete in india? |
|
Definition
| they made a 6 oz bottle and sells it for 12 cents. |
|
|
Term
|
Definition
| basic facilities, services, and installations needed for society to function, such as transportation and communication systems, water and power lines, and public institutions. |
|
|
Term
|
Definition
| Tax levied on a good imported into a country |
|
|
Term
| The four components of infrastructure are essential to a marketing system because? |
|
Definition
1.) must be a system to transport goods throughout the various markets and to consumers in geographicaly dispersed marketplaces.
2.) Distribution channels must exist to deliver products in a timely manner and reasonable cost
3.) communication systems must be developed enough to allow customers to acess info about the products and services available in the marketplace.
4.) Commericial infrastructure- legal, banking, and regulatory systems that allow markets to function. |
|
|
Term
|
Definition
| makes imported goods more expensive, and protect domestic industries from foreign competition. |
|
|
Term
|
Definition
| Practice of selling a good in a foreign market at a price lower than its domestic price or cost |
|
|
Term
| What are 5 government actions that can be taken? |
|
Definition
| Quota, boycott, exchange control, trade agreement, tariff |
|
|
Term
|
Definition
| Designates maximum quantity of a product that may be brought into a country during a specified time period. they benefit domestic consumers. |
|
|
Term
|
Definition
| A groups refusal to deal commercially with an organization to protest its policies. |
|
|
Term
| What is exchange control, and exchange rate? |
|
Definition
| the control is the regulation of a country's currency. Exchange rate is measure of how much one currency is worth in relation another. |
|
|
Term
|
Definition
| Trade between two countries, goods are trades for other goods, not hard currency. |
|
|
Term
| What are some trade agreements? |
|
Definition
| EU, NAFTA, CAFTA, MERCOSUR, ASEAN |
|
|
Term
| What is a trade agreement? |
|
Definition
| Intergovernmental agreements designed to manage and promote trade activities for specific regions |
|
|
Term
|
Definition
| Countries that have signed a particular trade agreement. |
|
|
Term
| What 5 dimensions to cultures differ on? |
|
Definition
1.) Power distance
2.) Uncertainty avoidance
3.) Induvidualism
4.) Masculinity
5.) Time orientation |
|
|
Term
| What is another means of classifying a country? |
|
Definition
| importance of verbal communication. Ex: in china and south korea, nonverbal cues mean more than the contract itself. |
|
|
Term
|
Definition
| Producing goods in one country and selling them in another. |
|
|
Term
|
Definition
| Contractual agreement between franchisor and franchisee; franchisee operates a business using a name and format developed and supported by franchisor. |
|
|
Term
| What is a strategic alliance? |
|
Definition
| Collaborative relationship between independent firms that do not create an equity partnership or invest in each other. Ex: star alliance has 15 airline members representing in 16 countries. each member is stakeholder, but no member is an equity owner to the others. |
|
|
Term
|
Definition
| Formed when a firm entering a new market pools resources with a local firm to form a new company sharing ownership, control, and profits. ex: McDonalds and Disney |
|
|
Term
| What is a direct investment? |
|
Definition
| Firm maintains 100 percent ownership of its plants, operation facilities, and offices in a foreign country, often through wholly owned subsidaries. requires the highest level of investment and risk. |
|
|
Term
| Why is global segmentation, targeting, and positioning more complicated than local STP for several reasons? |
|
Definition
1.) difficulty understanding culture nuances.
2.) subcultures withing each country must be considered.
3.) consumers often view products and their role as consumers differently in different countries. |
|
|
Term
| What are three global product or service strategies? |
|
Definition
Sell the same product or service in both the home country market and the host country.
2.) Sell a product or service similiar to that sold in home country but include minor adaptations.
3.) Sell totally new products or services |
|
|
Term
| Why are global pricing strategies difficult to determine? |
|
Definition
| many countries have rules governing the competitive marketplace, tariffs, quotas, antidumping laws, and currency exchange policies also affect pricing decisions. |
|
|
Term
| What are some important things to remember about global distribution strategies? |
|
Definition
| global distribution networks form complex value chains that involve middlemen, exporters, importers, and different transportation systems. they add costs and drive up the ultimate selling price. |
|
|
Term
| What is the major challenge in developing a global communication strategy? |
|
Definition
| identifying the elements that need to be adapted to be effective in the global marketplace. Ex: literacy levels, and media variability. Different language, customs, and culture. Also the regulatory actions in the host country. |
|
|
Term
| What are enviromental concerns? |
|
Definition
| Issues related to excessive use of natural resources, manufaturing refuse, and excess trash created by consumer goods packages and products. |
|
|
Term
| What are global labor issues? |
|
Definition
| Concerns about working conditions and wages paid to factory workers in developing countries. |
|
|
Term
| What is cultural imperialism? |
|
Definition
| Belief that one's own culture is superior to that of other nations, can take the form of formal policy or more subtle general attitudes. |
|
|
Term
| What is the first step of the segmentation process? |
|
Definition
| articulate the vision or the objectives of the company's marketing strategy clearly. The strategy must be consistent with and derived from the firms mission situation- its strengths, weaknesses, opportunities and threats. |
|
|
Term
| Why is segmenting difficult? |
|
Definition
| Sometimes it makes sense to not segment at all, other times a firm should concentrate n one segment or go after multiple segments at once. |
|
|
Term
| What is the undifferentiated segmentation strategy? |
|
Definition
| Mass marketing- strategy when the produt or service is percieved to provide the same benefits uniformly. no need to develop separate strategies for different groups. |
|
|
Term
|
Definition
Segmentation- Strategy or objectives -> describe segments
Targeting- Evaluate segment attractiveness -> select target market.
Positioning- Identify and develop positioning strategy |
|
|
Term
| What are the four segmentation strategies? |
|
Definition
| Undifferentiated, differentiated, concentrated, micromarketing or one on one |
|
|
Term
| What is a differentiated marketing strategy? |
|
Definition
| the firm targets several market segments with a different offering for each. |
|
|
Term
| what is a concentrated segmentation strategy? |
|
Definition
| Marketing strategy that selects a single target market and focuses on providing a product to fit its needs. |
|
|
Term
|
Definition
| extreme form of segmentation that tailors a product or service to suit an individual customer's wants or needs. |
|
|
Term
| What is mass customization? |
|
Definition
| Practice of interacting one-to-one with many people to create custom made products or services, providing one-to-one marketing to masses. |
|
|
Term
| What is geographic segmentation? |
|
Definition
| Grouping of consumers according to where they live |
|
|
Term
| What is demographic segmentation? |
|
Definition
| grouping of consumers according to easily measured, objective characteristics such as age, gender, income or education. |
|
|
Term
| What is the second step in the segmentation process? |
|
Definition
| describe the different segments. |
|
|
Term
|
Definition
| in segmentation, how consumers describe themselves according to characteristics that determine their behavior and its underlying psychological reasons. |
|
|
Term
|
Definition
| Goals for life, not just daily goals, a component of psychographics that refers to overriding desires that drive how a person lives his or her life. |
|
|
Term
|
Definition
| Image a person has of themselves. its a component of psychographics. |
|
|
Term
| What is meant by lifestyles? |
|
Definition
| Component of psychographics; the way a person lives his or her life to achieve goals. |
|
|
Term
| What is the value and lifestyles survey? |
|
Definition
| psychographic tool: classifies consumers into eight segments, innovators, thinkers, believers, achievers, strivers, experiencers, makers, or survivors. |
|
|
Term
| What is benefit segmentation? |
|
Definition
| grouping consumers on the bases of benefits they derive from products or services. |
|
|
Term
| What is geodemographic segmentation? |
|
Definition
| grouping of consumers according to a combination of geographic, demographic and lifestyle characterstics. |
|
|
Term
| What is the loyalty segmentation? |
|
Definition
| strategy of investing in loyalty initiatives to retain the most profitable customers. |
|
|
Term
| What do some firms do when it comes to the segmentation process? |
|
Definition
| use multiple segmentation methods. combine the advantages of each and use it to meet the needs of customers. |
|
|
Term
| How do firms evaluate the segment of attractivness? |
|
Definition
| based on whether or not it is identifiable, substantial, reachable, responsive, and profitable. |
|
|
Term
| What do each of the steps to evaluate a segment mean? |
|
Definition
Identifiable- who is withing their market to be able to design products or services to meet their needs.
substantial- how big is their target market, what is their buying power?
reachable- the consumer must know the product exists, understand what it can do, and recognize how to buy it.
responsive- customers must react similarily and positively to the firms offerings.
profitable- what is the market growth, competitivness, and market access and distribution channels. |
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Term
| What is the formula to determine segment profitability? |
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Definition
| Segment size - segments adoption percentage - purchase behavior - profit margin percentage - fixed costs. |
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Term
| What does segment size, segment adoption percentage, and purchase behavior mean? |
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Definition
segment size- number of people in the segment.
Segment adoption percentage- percentage of customers in the segment who are likely to adopt the product.
Purchase behavior= purchase price x number of times the customer would buy the product / service during a given period. |
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Term
| What is the formula for profit margin percentage? |
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Definition
| ( selling price - variable costs) / selling price |
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Term
| what is a good way to determine profitability if two segments have the same outcome from the formula? |
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Definition
| it is more accurate to determine the percentage over a lifetime of one of its typical customers. they consider factors like how long the customer will remain loyal, the defection rate, the costs of replacing lost customers, whether customers will buy more merchandise in the future, and other factors. |
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Term
| What is the fourth step in the STP process? and what is a key factor likely to affect this decision? |
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Definition
| selecting a target market, and the key factor is the marketers ability to pursue such an opportunity or target segment, they can use the SWOT analysis. |
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Term
| What is the final step in a market segmentation strategy? |
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Definition
| position. it involves a process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products. |
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Term
| What are the four positioning strategies? |
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Definition
| Value, Competition, symbols, salient attributes. |
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Term
| what is meant by the four positioning strategies? |
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Definition
value- it is popular because the relationship of price to quality is among the most important considerations for consumers when they make a purchase decision.
Salient Attributes- what product attributes are most important to the market?
Symbol- nike swoosh, tony the tiger, gerber baby, etc, it distinguishes it from competition.
Competition- firms can choose to position their products or services against a specific competitor or entire product line. they must be areful that they dont place their product too close to competition. |
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Term
| What is a perceptual map? |
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Definition
| displays the position of products or brands in the consumers mind in two or more dimensions. |
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Term
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Definition
| position at which a particular market segments ideal product would lie on a perceptual map. |
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Term
| What are the 5 stages of positioning stages |
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Definition
1.) determine consumers perceptions and evaluations of the product or service in relation to competitors offerings.
2.) Identify competitors positions.
3.) determine consumer preferences
4.) select the position
5.) monitor the position strategy |
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Term
| What can a firm do if it doesnt like its position? |
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Definition
| it can reposition itself. |
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