Marketing Concepts Overview
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Questions and Answers

Which type of benefits is characterized by psychological value?

  • Intangible benefits (correct)
  • Functional value
  • Tangible benefits
  • Social benefits

What is the Ikea effect related to?

  • Valuing products based on brand reputation
  • Products that require assembly or effort (correct)
  • Perceptions of safety and security
  • Discounts offered on unsought goods

Which management style focuses on maximizing sales through aggressive tactics?

  • Market orientation
  • Sales orientation (correct)
  • Product orientation
  • Consumer orientation

Which of the following describes the 'cost of acquiring'?

<p>The monetary price paid for a product (D)</p> Signup and view all the answers

What kind of needs are addressed by Maslow's hierarchy when referring to food and shelter?

<p>Surviving needs (B)</p> Signup and view all the answers

What is brand equity?

<p>The value added to a product by its brand (B)</p> Signup and view all the answers

Which of these is a disadvantage of the sales orientation management style?

<p>Negative consequences from unsatisfied customers (D)</p> Signup and view all the answers

Which type of orientation focuses primarily on innovating product quality?

<p>Product orientation (D)</p> Signup and view all the answers

What is the main purpose of market segmentation?

<p>To identify groups of customers with similar profiles (C)</p> Signup and view all the answers

Which of the following is NOT a reason to segment the market?

<p>To simplify the production process (B)</p> Signup and view all the answers

How should companies ideally approach market segmentation?

<p>By focusing on consumer needs and benefits (C)</p> Signup and view all the answers

What is aggregation bias in the context of market segmentation?

<p>Assuming all consumers want the same product (D)</p> Signup and view all the answers

What can be a consequence of a poorly executed market segmentation strategy?

<p>Misleading product offerings (B)</p> Signup and view all the answers

What factor is highlighted as critical to understanding different consumer needs in segmentation?

<p>Identifying tangible and intangible benefits sought (D)</p> Signup and view all the answers

What is one of the main insights from marketing regarding consumer diversity?

<p>Different consumer groups have varied desires and reactions (A)</p> Signup and view all the answers

What is meant by 'target market' in the context of segmentation?

<p>The most attractive segments for investment (B)</p> Signup and view all the answers

Which of the following characteristics must market segments possess to be considered useful?

<p>Measurable (A)</p> Signup and view all the answers

What is a primary disadvantage of ex ante segmentation?

<p>It may lack market resonance (C)</p> Signup and view all the answers

What is NOT a criterion for choosing market segments?

<p>Automatic (C)</p> Signup and view all the answers

Which of the following is a key step in segmentation?

<p>Assessing consumers’ needs (C)</p> Signup and view all the answers

Which strategy relies on intuition rather than data for segment definition?

<p>Ex ante segmentation (B)</p> Signup and view all the answers

Which of the following factors does NOT influence segment attractiveness?

<p>Segment unpopularity (D)</p> Signup and view all the answers

In the context of targeting, a firm should focus on segments that have a strong need for the product and which it can satisfy. What is an additional criteria for targeting?

<p>Segments that are large enough (D)</p> Signup and view all the answers

What is a potential advantage of ex post segmentation?

<p>It is more reliable if based on quality data (D)</p> Signup and view all the answers

What is the primary goal of the Customer-based brand equity (CBBE) model?

<p>To shape how consumers feel and think about the brand (A)</p> Signup and view all the answers

What does the 'Meaning' level in the CBBE model primarily focus on?

<p>Identifying and communicating the brand's significance (A)</p> Signup and view all the answers

Which brand strategy involves using the company name as the brand for all product lines?

<p>Family umbrella branding (C)</p> Signup and view all the answers

What is a disadvantage of family umbrella branding?

<p>A product failure will impact the entire brand (A)</p> Signup and view all the answers

In which CBBE model level do consumer judgments and feelings about a brand occur?

<p>Response (D)</p> Signup and view all the answers

Which branding strategy is best suited for companies offering very different products?

<p>Individual branding (D)</p> Signup and view all the answers

What constitutes brand resonance according to the CBBE model?

<p>Creating emotional connections that lead to customer loyalty (B)</p> Signup and view all the answers

Why might a company choose combination branding?

<p>To leverage brand equity while tailoring individual product identities (D)</p> Signup and view all the answers

What is the main focus of rational evaluation when selecting a product?

<p>Physical characteristics and tangible attributes (B)</p> Signup and view all the answers

Which model allows for a trade-off between positive and negative evaluations of product attributes?

<p>Compensatory rules (D)</p> Signup and view all the answers

What happens in a conjunctive model during the evaluation process?

<p>Each attribute has a minimum level that must be satisfied (C)</p> Signup and view all the answers

In affective evaluation, which of the following is an example of a brand-driven emotional appeal?

<p>Coca-Cola's 'Open happiness' advertisement (C)</p> Signup and view all the answers

What is the goal of post-choice evaluation for consumers after purchasing a product?

<p>To either meet or exceed their expectations (B)</p> Signup and view all the answers

Which statement best describes non-compensatory rules in product evaluation?

<p>All attributes must be deemed satisfactory to consider a product (B)</p> Signup and view all the answers

What might be a reason for consumers preferring Pepsi when they are unaware of what they are drinking?

<p>Perceived taste preference influenced by brand attachment (D)</p> Signup and view all the answers

Which factor does not typically influence rational evaluation during product selection?

<p>Environmental impacts of the product (D)</p> Signup and view all the answers

What is the main purpose of perceptual maps in marketing?

<p>To measure the gap between expected and perceived brand positioning (C)</p> Signup and view all the answers

What does repositioning a brand typically entail?

<p>Changing the target market or highlighting different benefits for the same market (B)</p> Signup and view all the answers

How did Old Spice manage to rejuvenate its brand image?

<p>By investing heavily in communication to create a younger image (D)</p> Signup and view all the answers

What aspect of the marketing mix is directly related to creating value for consumers?

<p>Product (B)</p> Signup and view all the answers

What strategy did McDonald’s implement to address perceptions of being an unhealthy food chain?

<p>Adding salads and new lower-calorie products to its menu (B)</p> Signup and view all the answers

Which combination of the 4 P's is primarily focused on value creation for the consumer?

<p>Product + Place + Promotion (D)</p> Signup and view all the answers

Why might a company choose not to claim they are the best in their category?

<p>To differentiate themselves as 'different' rather than 'the best' (B)</p> Signup and view all the answers

What encapsulates the definition of a product in marketing?

<p>Anything offered to a market that satisfies a buyer’s need (D)</p> Signup and view all the answers

Flashcards

Measurable Market Segment

A market segment is measurable if its size, value, and purchasing power can be quantified.

Substantial Market Segment

A market segment should be large enough and profitable to justify the marketing effort.

Accessible Market Segment

A market segment is accessible if you can reach them through communication and distribution channels.

Differentiable Market Segment

A market segment is differentiable if it has unique characteristics and responds differently to marketing strategies.

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Actionable Market Segment

An actionable market segment is one that the firm can effectively serve with available resources.

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Ex-Ante Segmentation

This strategy relies on intuition to define segments, not data.

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Ex-Post Segmentation

This strategy defines segments based on analysis of market data.

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Targeting

The process of identifying and choosing target segments.

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Value Equation

The perceived value of a product or service is determined by subtracting its costs from its benefits.

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Tangible Benefits

These benefits are quantifiable and directly experienced by the consumer, such as price, durability, or features.

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Intangible Benefits

These benefits are subjective and often intangible, such as prestige, status, or emotional satisfaction.

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Brand Equity

The added value a product or service gains simply because it's associated with a specific brand. It's the extra value customers are willing to pay for a branded item.

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Costs of Acquiring

The costs associated with acquiring a product, including monetary expenses and non-monetary costs like time or effort.

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Costs of Use

The costs associated with using a product, encompassing monetary expenses (like maintenance), psychological burdens (like stress), and social consequences (like embarrassment).

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Ikea Effect

The phenomenon where consumers place higher value on products they have assembled or contributed to, even if those products are objectively less valuable. Think of putting together furniture from Ikea.

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Maslow's Hierarchy of Needs

This hierarchy suggests that people prioritize basic needs like food, water, and safety before moving on to social and self-actualization needs.

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Compensatory Evaluation

A decision-making process where consumers consider all product attributes, both positive and negative, and weigh them against each other. A positive evaluation on one attribute can compensate for a negative evaluation on another.

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Non-compensatory Evaluation

A decision-making process where consumers set minimum standards for each product attribute. If a product falls below the minimum standard on any attribute, it is automatically eliminated from consideration, regardless of its strengths in other areas.

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Conjunctive Model

A type of non-compensatory evaluation where consumers set a minimum acceptable level for each product attribute. Products are only considered if they meet or exceed the minimum level on all attributes.

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Disjunctive Model

A type of non-compensatory evaluation where consumers set a minimum acceptable level for each product attribute. Products are considered if they meet or exceed the minimum level on at least one attribute, even if they fall short on others.

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Expectancy Value Model

This model evaluates a product's overall value by considering both the importance of each attribute and the consumer's perception of the product's performance on each attribute.

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Post-Choice Evaluation

The process of consumers evaluating a product after they've purchased and used it. It involves comparing the actual product experience with their initial expectations.

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Customer Satisfaction

When a product meets or exceeds the consumer's expectations, it is considered successful. This is the goal of every brand.

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Rational Evaluation

The practice of focusing on the physical characteristics and tangible attributes of products to determine their value.

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Market Segmentation

The process of identifying groups of customers with similar needs and preferences. These groups are called "segments." You tailor your marketing efforts to make your product most appealing to each specific segment.

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Aggregation Bias

A false idea that happens when you try to satisfy everyone with a single product. One size doesn't fit all. Think of different size trees: A 4m tree might not appeal to someone looking for a 6m tree.

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Different needs

The main reason to segment your market: Different groups of customers have different needs that a single product can't satisfy.

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Competition

When your competitors can better attract certain customer groups, you need to understand your competition's appeal and target those segments effectively.

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Limited Resources

Limited resources require you to focus on customers with the highest potential return on your marketing investment. Identifying the most attractive segments is crucial.

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Target Market

A specific group of customers that your organization wants to target with its marketing efforts due to their potential for success.

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Top-ranked Attribute

The most important attribute consumers use to rank products based on their preferences. This attribute is often the one that dictates their ultimate purchase decision.

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Lexicographic Model

A model where consumers prioritize attributes from most important to least. This helps businesses understand which benefits to highlight for different segments.

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Positioning

How a company wants its product or service to be perceived by consumers compared to its competitors.

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Perceptual Map

A visual representation of how consumers perceive different brands based on specific attributes. It helps analyze the gap between a brand's desired perception and its actual perception.

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Repositioning

Changing a brand's position in the market to address new challenges or opportunities.

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Complete Change of Target

Changing a brand's target audience entirely.

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Change of Positioning

Adjusting a brand's positioning to appeal to the existing target audience by highlighting different benefits.

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What is Product?

Anything offered to a market to satisfy a buyer's need or want, including physical objects (products), services, places, organizations, ideas, and even people.

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Marketing Mix (4 Ps)

The 4 Ps in marketing are Product, Price, Place, and Promotion. They represent the key elements of a marketing strategy.

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Value Creation for the Consumer

Value for the consumer is created through a combination of Product, Promotion, and Place.

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Brand Association Map

Represents the connections consumers make with a brand in their minds. This map helps assess whether these associations align with the intended brand positioning.

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Customer-Based Brand Equity (CBBE)

Customer-Based Brand Equity (CBBE) aims to build a strong brand by influencing how consumers perceive and feel about it.

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Identification (CBBE)

The first level of CBBE aims to create awareness and ensure consumers are aware of your brand's existence.

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Meaning (CBBE)

The second level of CBBE focuses on communicating the brand's meaning. This encompasses functional benefits (performance) and emotional connections (imagery).

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Response (CBBE)

The third level of CBBE evaluates customer responses to the brand. This involves judgments (quality comparisons to competitors) and feelings (emotional engagement with the brand).

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Resonance (CBBE)

The fourth and highest level of CBBE aims to build a strong psychological bond between the customer and the brand, fostering loyalty and community engagement.

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Family Umbrella Branding

A branding strategy where the company uses its name as the brand for all its product lines.

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Combination Branding

A branding strategy where the company uses its own name as a brand but creates separate names for each product line.

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Study Notes

Marketing Notes

  • Marketing is not just advertising, it's a broader concept encompassing a complex process of activities including strategic planning and implementation to offer to consumers.
  • Marketing is a tool, used ethically or unethically.
  • Value is determined by benefits minus costs.
  • Tangible benefits include the physical product, intangible benefits include experiences and emotions.
  • Costs encompass not only monetary costs, but also psychological and social ones.
  • Maslow's Hierarchy of Needs describes levels from basic (survival) to higher (self-actualization).
  • 3 types of management styles exist: sales, product, and market orientation.
  • Sales orientation is focused on sales maximization, common in the 50s and 60s.
  • Product orientation focuses on product quality and innovation.
  • Market orientation, the most modern approach, is focused on customer satisfaction.
  • Microenvironments include the company's supply chains and competitors.
  • Supply chains are vital for the success.
  • Competition is important for firms to analyse in depth and develop competitive advantage.
  • Porter's 5 forces help to assess industry competition levels.
  • Various threats exist in the market such as the threat of new entrants, the threat of substitutes, supplier power, and buyer power.
  • Market potential is the hypothetical maximum quantity of a product that can be sold, unaffected by marketing strategies.
  • Market share is the sales of a company relative to total market sales.
  • Market share can be calculated by dividing the company's sales by total market sales.
  • Various criteria exist to perform analysis on the market, like SWOT analysis, and TOWS Matrix.
  • Internal analysis is important for an inside-out understanding of the company's values, resourses, strategy and current success.
  • SWOT analysis is used to evaluate internal strengths and weaknesses, external opportunities and threats.
  • Various segmentation types exist including market penetration, product development, market development and diversification.
  • Positioning is important to shape consumer perceptions relative to competitors.
  • Digital marketing includes search ads, display ads, inbound marketing and social media.
  • Consumer needs (functional and symbolic) inform product development.

Value Proposition

  • Value is the perceived differences between the buyer's cost and perceived benefits.
  • Price is a key component of value—important to remember that price is part of the value proposition to a customer not the complete picture of value.
  • Customers are aware of the differences in products and prices so they can compare different alternatives for their needs.
  • Price needs to be related to the overall value a customer wishes to receive, if the value is higher, prices must be adjusted to match the value perception a costumer has.

Customer Behavior and Decision Process

  • Need recognition—Understanding what consumers need and want.
  • Information search—Researching potential products/services and their attributes.
  • Evaluation of alternatives—Comparing different options—Rational and Non-Rational methods
  • Purchase decision—Final choice of product.

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Marketing Final Notes PDF

Description

This quiz explores the fundamental concepts of marketing, including its scope beyond advertising and the importance of strategic planning. You'll learn about value determination, types of management styles, and the significance of microenvironments in marketing. Test your understanding of these key principles essential for effective marketing strategies.

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