Week 4 Study Guide
Week 4 Study Guide 309
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This 13 page Study Guide was uploaded by Chelsea Pahls on Tuesday February 10, 2015. The Study Guide belongs to 309 at Washington State University taught by Jay Hmielowski in Fall. Since its upload, it has received 24 views. For similar materials see Quanitive Research Methods in Communication Studies at Washington State University.
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Date Created: 02/10/15
Marketing 360 Study Guide Exam II Segmentation Targeting Positioning Chapter 7 o What is segmentation Targeting Positioning Segmentation Dividing larger market into smaller segments based on meaningful shared characteristics Hybrid Segmentation Segmenting the market based on more than one segmentation variable e g age and ethnicity rather than just age Most segmentation is hybrid segmentation Targeting Evaluate segments decide which to go after who Positioning Design goodservice to meet segment s needs Create marketing mix that leads to a competitive advantage 0 What is a segmentation variable Segmentation Variables Dimensions that divide the market into fairly homogenous groups each with its own needs and wants 0 How can we classify segmentation variables ConsumerRooted ConsumptionSpecific Empirical Personal Features Usage and Purchase Behaviors 39 Demographics age age cohorts Usage rate gender marital status family life cycle 39 Usage situationoccasion Facts income education occupation social Brand loyalty the behavior class component 39 Geographic location address and Psychographics factual behaviors geodemographics eg leisure activities hobbies Personality Lifestyles and Attitudes and Preferences Regarding Sociocultural Values the Product I v 39 Personality traits 39 Benefits wanted Cognlhons Lifestyles psychographics and VALS 39 Level of involvement Sociocultural values and beliefs 39 Awareness of product alternatives 39 Brand loyalty perceived commitment O and level of relationship o What is geodemographic segmentation and what is one commonly used geodemographic system Combination of geographic and demographic information Creates classifications of actual addressable mapable neighborhoods where consumers live and shop looking for clusters of similar people zip code httpwwwclaritascomMvBestSegmentsDefaultisp httpwwwclaritascomMvBestSegmentsDefaultisp o What is psychographic segmentation What types of variables fall under this approach Psychographics Uses psychological sociological anthropological factors to develop segments Examples Motives status Personality sensation seeking Culture Subculture interdependent Lifestyles activities interests opinions VALS2 Values Lifestyles System Based on psychological characteristics that relate to consumer behavior What are usage rate situationspecific segmentation and person in situation segmentation Segment based on how frequently people use a product I Former potential 1st time low med heavy users Companies often target heavy users 8020 Principle 20 of customers 80 of demand Less costly to advertise to and more loyal Segment based on special occasions Whenthen Scripts When I encounter situation X I always buy Y Examples Christmas Valentines Mother s Day etc What type of segmentation does the Old Spice video represent where the guy is ying through the air and changing personalities Old Spice Be familiar with different types of targeting strategies Undifferentiated appeal to masses Differentiated different strokes for different folks Concentrated go after just one segment Individualized even more narrow than concentrated I OnetoOne Marketing tailored to individual build relationship I Microtargeting and narrowcasting e g during an election deliver tailored messages based on voters speci c concerns I Behavioral targeting e g deliver specific ads based on the websites an individual has visited What are the key criteria for successful targeting Sizeable I Large enough to justify its own marketing mix Identifiable and Measurable I If not can not determine whether it s sustainable Stable I Easier to predict and anticipate needs I Products won t be out of date too quickly Accessible I Must be able to reach segment with marketing mix Responsive I The segment responds differently than another segment I If not no need to develop unique marketing mix In Line with Company s Goals and Resources I A company may not want to go after all segments What is a brand personality and what are the major types of brand personality Brand Personality A distinctive image that captures a product s or service s essence character benefits O What is a perceptual map and how is it useful C assytiDisiincl Conservative Pos itionin Bases PMalawiquotAffordable Product Strategy Chapters 89 0 Layers of a product core actual augmented Core Product A11 benefits provided by product Actua1 Product Physical good or service Augmented Product Actual prod features supporting product 6 g warranty repair service after sale Qualitydimensions Re1iabi1ity Durabi1ity Precision Safety Ease of Use Versati1ity Types of innovations continuous knockoffs dynamically convergence discontinuous Continuous I Modify existing product to set it apart Knockoffs I Copies existing product with a few changes Dynamica11y Continuous I Innovation that requires a fair amount of relearning Convergence I When 2 technologies come together to create gt than the sum of its parts Discontinuous Innovation I New product changes way we live What is emergent nature the unique capability to imagine or envision how concepts might be further developed so that they will be successful in the mainstream marketplace Hoffman et a1 2010 p 855 Are concepts developed by consumers high in emergent nature better received Yes Those high in emergent nature report higher Rational processing Re ection Verbal and Visual Processing a balance Openness Creativity Optimism 0 Consumer adoption stages I Awareness media blitz I see benefits search info I Evaluation I Trial before purchasing I Adoption buy product I Confirmation good experiences loyalty O Adopt when littleino risk Indicates g en ertti f when necessary arc c ep quot09 0 or due to social product FIFE SSUFE Innavatars Early Late Majority Majnriity taggards 34 34 16 o What impacts rate of adoption I Relative advantage I Compatibility with Other Products I Complexity I Trialability I Observability 0 Product lines product line limited line strategy full line strategy extension Product Line A company s complete collection of product offerings to meet a single need Limited Line Strategy Meet need of a smaller target segment Full Line Strategy Attempt to meet needs of broad consumer market Strategies for Product Line Extension l Product Line Extensions LTwj i Stretching l Filling Contractinga I Adding new i Adding sizes productline L7 39 F 239T J L tr39sss 3 wearers 2 i Downward i 1 A x 4 l l Twoway wl Product life cyclestages Introduction Stage Get firsttime buyers to adopt product Growth Stage Encourage loyalty expand offerings increase market share Maturity Stage Increased competition price competition reminder advertising Decline Stage Should I Stay or Should I Go Now Fiber One Video Brand equity Nike How do consumers bondconnect with brands Consumer l 4 Relationships Intense active l I i I r 7 Brand waifbgutyouand me J4 1 relationships 1 Resonance leentity ll Deep broad brand 39 Brand Salience x Whoareyou L awareness 339 Identity Nostalgia Interdependence Love Proctor and Gamble Video Services and Service Failures Chapter 10 o How do services differ from products Intangibility Can t feel taste hear touch or see in same way as typical product Inseparability Production and consumption of services often inseparable customer must be present when consuming service Perishability Services can t be stored inventoried an empty hotel room produces no revenue Variability Services more variable than products due to variability in inputs and outputs SERVQUAL approach to measuring service quality Reliabi1ity most important Dependable accurate consistent Responsiveness Ability to provide fast service Assurance Knowledgeable and courteous employees who earn our trust Tangibles Physical facilities tools equipment used to provide service Empathy Caring individualized attention to customer Gap model of service quality Gap 1 I Between what customers want and what management thinks they want I To close know customers needs satisfaction Gap 2 I Between what customers want and quality specs management develops to meet those desires I To close understand satisfaction with service Gap 3 I Between quality specs and actual service provided I To close train and educate employees Gap 4 I Between what customer told company provides and what company actually provides I To close accurate communication about services that doesn t 9 unrealistic expectations Gap 5 I Between service customers want and actual service received I To close understand satisfaction with service Core vs supplementary service products Core Service I Basic benefit customer is seeking Supp1ementary Service I Services that support or enhance core service When core service becomes commodity Supplementary competitive advantage Four categories of service processes people possessions mental stimulus information People TangibleCustomer I Directed at customer hairstyling transportation health clubs Possession TangiblePossessions I Directed at customer s possessions car repair dry cleaning lawn care Mental Stimulus IntangibleCustomer I Directed at people s minds entertainment sports education Information IntangiblePossessions I Directed at customer s assets banking nancial consulting o Differentiate between a single deviation and a double deviation Service Failures Single Deviation I When service deviates falls below expectations Failed Service Recovery Double Deviation I When following a service failure a company fails at the service recovery stage httpWwwyoutubecomwatchv5YGc4zOqozo o What is the difference between dissatisfaction and betrayal both in terms of its antecedents and consequences DISSATISFACTION A negative affective state that results from a perception of unfulfilled expectations A firm didn t provide the service expected by a customer Association with annoyance and frustration Expectation disconfirmation BETRAYAL Beliefs that a firm has intentionally engaged in actions that violate what is normative in the context of their relationship A firm intentionally broke a promise that was made to a customer Association with anger Norm violation 0 What three things lead consumers to feel betrayed Relationship before service failure Service Failure Service Recovery complaining Customer Responses 0 What is the difference between procedural distributive and interactional fairness Procedural Fairness apology only condition Distributive Fairness compensation only condition Interactional Fairness apology compensation condition 0 What is the key cognition in the process model of responses to service failures compensation o How can we intervene to reduce desire for revenge and increase desire for reparation following a failed service recovery give a sincere apology and offer compensation o How does compensation improve the effectiveness of apologies adding an apology and compensation have higher levels of responses that desire for reconciliation CRM and Integrated Marketing Chapters 7 section on CRM and 12 o What is CRM what does it allow firms to do how does it manage this and how does CRM view customers A systematic tracking of consumers preferences and behaviors over time in order to tailor the value proposition as closely as possible to each individual s unique wants and needs Allows firms to talk to individual customers and adjust elements of marketing programs in light of how each customer reacts Use computers software databases and the Internet to capture information at each touch point between customers and companies to allow better customer care Share of customer Share of customer of purchases a customer makes within a given category from a certain company vs of overall market Lifetime value of customer Lifetime Value of Customer Potential profit an individual customer generates over hisher lifetime Customer equity Characteristics needs nature and frequency of prior purchases responsiveness to previous ads problems with the firm returns etc To what extent is CRM strategic in its interactions with high value and low value customers Differentiate customers based on needs and value to the company High value vs low value customers Tailor marketing mix based on valuesneedsetc What is integrated marketing communication Integrated Marketing Communication Theory process used to plan develop execute and evaluate coordinated brand communication programs to targeted audience IMC coordinating all aspects of marketing communication to send single message Characteristics of IMC Unified voice Ultimate focus is on customer not company Goal is to develop relationship with customer Communication goes both ways Meet needs of both customer and broader stakeholders Keeps communication open owing continuous Measures results 0 Be familiar with the communication model how a message ows from the source to the receiver Message f 127333 1 en w ngW 35321 rigigi ions i quot 13333521255 mdm 39cwme39i l Saes promotion i oTelevision l i I I Salesperson pitch t Radio l l I I 0 Communication Billboards l i I from consumers I 0 Direct mail i i i I LOWord of g L i mouth J iSiQT quot L0 Competinngessages 39 r 13 a Purchase data l Product awareness 39 trowel 0 Who is Clotaire Rapaille and how is he relevant to the communication model Hint check YouTube What are different communication objectives and how are they related to promotional efforts Awareness repetitive advertising slogans and jingles Publicity stunts Knowledge descriptive copy brochures infomercials websites Desire Status appeals sex appeals celebrity endorsements Purchase Pointof purchase displays coupons contests Loyalty mailing to users licensed merchandise product placement What is product placement and why is it used The insertion of branded products or services into mass media content with the intent of in uencing consumer attitude or behavior Why product placement Oversaturation of traditional advertising outlets Reach a captive and involved audience Fly under the radar may help avoid counterarguing and enhance persuasion What are the trends in product placement over the past several decades Product placement in sitcoms httpwwwvoutubecomwatchvaTlSS2WfH Ls Lumiere films in the 18903 httpWwwvoutubecomwatchvi4hP2fL81iE Pricing Chapter 11 0 Be familiar with the six different steps in price planning Develop pricing objectives salesmarket objectives Profit objectives Competitive Effect Customer Satisfaction Image Enhancement Estimate demand Demand Demand Curves Normal Products Prestige Products Determine cost Evaluate the pricing environment Choose a pricing strategy Develop pricing tactics What is a demand curve and how does a demand curve for luxury products differ from nonluxury products Graphs that show impact of price on demand For Prestige Products Curvalinear Demand increases as price increases but 0 If price too high demand begins to decline What is price elasticity and how is it calculated The percentage change in unit sales that results from a percentage change in price Change in Quantity Demand Price Elasticity Change in Price Demand up by 30 Elastic Demand 30 Price down by 10 Demand up by 10 Inelastic iiarnand Z Price down by 40 What do we mean by elastic and inelastic demand Elastic Demans Price changes causes GREAT change in demands Inelastic Demand Price change causes LITTLE change in demans What is crosselasticity of demand When changes in price for one product affect demand for another product If products substitutes an increased for Prodl will lead to an increased demand for Prod2 If products complementary an increased for Prodl will lead to a decreased demand for Prod2 What is the difference between a fixed cost and a variable cost for production Variable Costs Production costs associated with materials parts labor Vary depending on units produced Fixed Costs Costs that don t change as a function of production Rent executive salaries heating Average fixed cost total fixed costs units Be able to conduct a break even analysis with simple numbers no calculator needed BreakEven Point BEP 39 When total revenues total costs I Above BEP profit I Below BEP loss I Computing BreakEwen Point BEF I Computing BreakEven Point BEP l 200000 BEPunits 4000 50 I Se is med 0 Pde 4000 units to break even Total Fixed Coolie BEP units Sell Bookshelf for 100 C D ntributi n per Unit to Fixed Gusts Costs you 50 to produce variable cost per unit I So Contribution to Fixed Costs Per Unit 0 Be familiar with different pricing strategies and tactics STREAGEIES Cost Plus Pricing I Add a fixed amount to total costs of producing product DemandBased Pricing I Adjust price based on expected demand Target Costing I Figure out price amp quality of product customer wants I Figure out how much it costs to make desired product I Evaluate Whether you can make a profit Yield Management Pricing I Charge different folks different prices to manage demand and maximize profits Value Pricing I Pricing to provide ultimate value to customer WalMart New Product Pricing I Skimming high price for highly desired product I Penetration very low price to encourage quick sales I Trial initially low price so customers can try it out TACTICS Pricing for Individual Products I Two Part Pricing I Need to pay two times yearly fee plus per use I Payment Pricing I Breaking overall price into smaller payments Pricing for Multiple Products I Price Bundling I Put multiple items together in a bundle I Captive Pricing I Price basic product low and second complementary and necessary product at high profit margin Selling Price Per Uiiii variable Cost Per Uiiizli o What is an internal reference price Internal Reference Price I Set price or range of prices consumers think are reasonable Branding Richie Liu Chapter 9 o What is the difference between an individual and family brand strategy Individual Brands I Separate and unique brand for each product I Some contend this route is more clear and concise due to focused brand strategy for each product Family Brands I Also known as an umbrella brand strategy I Market multiple products under the same brand name 0 What is cobranding and why is it used ie what are some benefits of this strategy Benefits partner brands in combining recognition power Ingredient branding phenomena I Can attract customers to the host brand from familiarity and strong brand reputation of ingredient brand I Ingredient brand can sell more of its product and obtain additional revenue from the licensing agreement in place 0 Difference between line and brand extension Line Extension I Minor variants of a single product are marketed under the same brand name Brand Extension I Extensions of the brand name to other product categories as a marketing strategy to increase brand equity I The new product is referred to as a spinoff o What is consumerbased brand equity the effect of brand knowledge on consumer response to the marketing of the brand Involves consumers39 reactions to an element of the marketing mix for the brand in comparison with their reactions to the same marketing mix element attributed to a fictitiously named or unnamed version of the product or service 0 What is an associative network and how is it related to brands Look good Swoosh symbol Wear cushioned socks salesperson helped me Last fall I NIKE RUNNING Feelings after How to run Avoid sore I knees I Provide motive for future behavior Markus 1977 1983 Strange Good value I Will ston for the money Sporting Goods Longwearing 005 Weight F I f Can wear with tread 94 tfaensms ijnt jeans too Co39or Cushioning SHOES Brooks I v New Balance I lightly 3923 Proud I L h azg tlses I red I Relaxed I o What is the role of the self in connecting brands and consumers Cognitive selfschemas I Consist of various facets e g James 1890 Dynamic nature of the self O I Two components knowledge and evaluative Campbell 1990 Consumers gravitate towards products and brands that align with their selfconcepts Barone et al 1999 Sirgy 1982 What is BESC BESC is de ned as a consumer s general propensity to incorporate important brands in the selfconcept Sprott et al 2009 Better recall of branded possessions More attention to brands upon incidental exposure Loyalty operationalized as price and wait time
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