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Marketing 3300 Chapter 5, 6, 9, & 11

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What are the components of the immediate environment?
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Company capabilities, competitors, corporate partners, with the consumer in the middle.
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What are the six key macro-environment factors?
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1. culture, 2. demographics, 3. social issues, 4. technological advances, 5. economic situation, 6. political/regulatory environment. The above is referred to as CDSTEP.
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Culture has two parts.
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Country Culture, and Regional Culture.
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Country culture
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Entails easy-to-spot visible nuances that are particular to a country, such as dress, symbols, ceremonies, language, color, and food preferences.
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Regional culture
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The influences of the area within a country in which people live.
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Demographics
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Information about the characteristics of human populations and segments, especially those used to identify consumer markets such as by age, gender, income, and education.
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Differentiate between country culture and regional culture.
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Country culture entails easy-to-spot visible nuances that are particular to a country, such as dress, symbols, ceremonies, language, color, and food preferences.
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Differentiate between country culture and regional culture.
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Regional culture is the influences of the area within a country in which people live.
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Identify the deferent generational cohorts.
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Gen Z between 2001 – 2014, Gen Y between 1977 – 2000, Gen X between 1965 – 1976, Baby boomers between 1946 -1964.
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Generation Z
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Generation Z also know as the Digital Natives, because people in this group were born into a world that already was full of electronic gadgets and digital technologies, such as the internet and social network.
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Generation Y
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Gen Y are generational cohorts of people born between 1977 and 1995; biggest cohort since the original postwar baby boom.
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Generation X
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Gen X are Generational cohorts born between 1965 and 1976.
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Baby Boomers
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Generational cohorts of the people born after WW II, between 1946 and 1964.
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What are some important social trends shaping consumers values and shopping behaviors?
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Various social trends appear to be shaping consumer values in the United States and around the world, including a greater emphasis on thrift, health and wellness concerns, greener consumers, privacy concerns, and time-poor societies.
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Names the five stages in the consumer decision process.
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1. Need recognition, 2. Information search, 3. Alternative evaluation, 4. Purchase, 5. Post purchase.
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Need recognition
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The beginning of the consumer decision process; occurs when consumers recognize they have and want to go from their actual, needy state to a different desired state.
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What is difference between a need and want?
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Need is the difference between your actual [hungry] state and your desired [not hungry] state – is greater, and you’ll want to eat immediately to get to your desired state.
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Distinguish between functional and psychological needs.
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Functional needs, pertains to the performance of a product or service. Psychological needs, pertain to the personal gratification consumers associate with a product or service.
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What are the various types of perceived risk?
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Their are five types of risk associated with a purchase decision. 1. Performance, 2. financial, 3. social, 4. physiological, 5. psychological.
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Performance risk
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Involves the perceived danger inherent in a poorly performing product or service.
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Financial risk
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Risk associated with a monetary outlay; includes the initial cost of the purchase, as well as the costs of using the item or service.
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Social risk
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The fears that consumers suffer when they worry others might not regard their purchases positively.
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Physiological risk
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The fear of an actual harm should a product not perform properly.
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Psychological risk
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Associated with the way people will feel if the product or service doesn’t convey the right image.
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What are the differences between compensatory and non-compensatory decision rules?
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Compensatory decision rule at work when the consumer is evaluating alternatives and trades off one characteristic against another, such that good characteristics compensate for bad ones.
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A compensatory decision rule
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A compensatory rule assumes that the consumer, when evaluating alternatives, trade off one characteristic against another, such that good characteristics compensate for bad characteristics.
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A non-compensatory decision rule
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It is when a consumer choose a product or service on the basis of one characteristic or one subset of a characteristic, regardless of the value of its other attributes.
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What are some examples of specific needs suggested by Maslow’s Hierarchy of Needs?
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1. Physiological, 2. Safety, 3. Love, 4. Esteem, 5. Self-actulaization.
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Physiological needs
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Those relating to the basic biological necessities of life: food, drink, rest, and shelter.
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Safety needs
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One of the needs in the PSSP hierarchy of needs; pertain to protection and physical well-being.
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Love needs
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Needs expressed through interactions with others.
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Esteem needs
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Needs that enable people to fulfill inner desires.
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Self-actualizaion
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When a person is completely satisfied with his or her life.
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Which social factors likely have the most influence on [a] the purchase of a new outfit for a job interview and [b] the choice of a college to attend?
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A.) Reference groups and culture B.) Family
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How do low-versus high-involvement consumers process the information in an advertisement?
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Low-involvment, less attention, peripheral processing, which generates weak attitudes and increased use of cues. High-involvment, greater attention, deeper processing, which develops strong attitudes and purchase intentions.
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What is the difference between extended versus limited problem solving?
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Extended versus limited problem solving, lets look at the two.
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Limited problem solving
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Occurs during a purchase decision that call for, at most, a moderate amount of effort and time.
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Extended problem solving
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A purchase decision process during which the consumer devotes considerable time and effort to analyzing alternatives; often occur when the consumer perceives that the purchase decision entails a lot of risk.
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What are the various segmentation methods?
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1. Geographic, 2. Demographic, 3. Psychographic, 4. Benefits, 5. Behavioral.
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Geographic
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Example: Continent: North America, Asia, Europe, Africa Within U.S.: Pacific, mountain, central, south, mid-Atlantic, northeast.
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Demographic
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Example: Age, Gender, income., Characteristics such as age, sex, income, location, education, and religion
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Psychographic
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Data that describes a group of people in terms of their tastes, opinions, personality traits, and lifestyle habits.
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Benefits
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Example: Convenience, economy, prestige.
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Behavioral
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Example: Occasion, loyalty.
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What is a perceptual map?
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A technique used to visually describe where products/brands are “located” in consumers’ minds relative to competing brands.
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Identify the six positioning steps?
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1. Determine consumers’ perceptions and evaluations of the product or service in realign to competitors.
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Identify the six positioning steps; step 2.
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2. Identify the market’s ideal points and size.
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Identify the six positioning steps; step 3.
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3. Identify competitors’ positions.
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Identify the six positioning steps; step 4.
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4. Determine consumers preference.
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Identify the six positioning steps; step 5.
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5. Select the position.
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Identify the six positioning steps; step 6.
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6. Monitor the positioning strategy.
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Explain the three components of a product.
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1. Core consumer value, 2. Associated services, 3. Actual services.
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Core customer value.
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Core customer value is the basic problem solving benefits that consumers are seeking.
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Associated services
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Associated services also called augmented products, the non-physical attributes of the product including product warranties, financing, product support, and after-sale service.
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Actual product
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Actual product is the physical attributes of a product including the brand name, feature/design, quality level, and packaging.
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What are the four types of consumer products?
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1. Specialty Products/Services, 2. Shopping Products/Services, 3. Convenience Products/Services, 4. Unsought Products/Services.
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Specialty products / services
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Products or services toward which the customer shows a strong preference and for which he or she will expend considerable effort to search for the best supplier.
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Shopping products / services
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Those for which consumers will spend time comparing alternatives, such as apparel, fragrances, and appliances.
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Convenience products / service
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Those for which the consumer is not willing to spend and effort to evaluate prior to purchase.
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Unsought products / services
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Products or services consumers either do not normally think of buying or do not know about.
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How do brands create value for customer and the firm?
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Brands facilitate the consumer search process are valuable in a legal sense, can lead to lower marketing costs because the brand and its associations help sell the product and brands have real market value as a company asset.
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What are the components of brand equity?
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1. Brand Awareness, 2. Perceived Value, 3. Brand Association, 4. Brand loyalty.
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Brand awareness
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The extent to which a brand name comes to mind when a consumer considers a particular product category. Measures how many consumers in a market are familiar with the brand and what it stands for; created through repeated brand exposures of the various brand elements. Example: brand name, logo, symbol, character, packaging, or slogan, in the firm’s communications to consumers.
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Perceived value
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The relationship between a product’s or service’s benefits and its cost.
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Brand association
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The mental links that consumers make between a brand and its key product attributes; can involve a logo, slogan, or famous personality.
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Brand loyalty
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A favorable attitude toward and consistent purchase of a single brand over time.
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What are the differences between manufacturer and private-label brands?
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Manufacturer brands also known as national brands are brands owned by the manufacture. Private-label brands are brands developed and marketed by a retailer and available option from the retailer; also called store brands.
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What are co-branding?
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The practice of marketing two or more brands together, on the same package or promotion.
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What is brand repositioning?
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rebranding — marketers change a brand’s focus to target new markets or realign the brand’s core emphasis with changing market preferences