1
Q
Which value-related processes are there in marketing according to Webster?
A
- Value-defining processes – for example, through research and insight, which will define the features the target audience will require of a mobile phone.
- Value-developing processes – for example, through new product development (NPD) processes, which will identify new technological solutions to the target market requirements.
- Value-delivering process – for example, through establishing a distributor network, which adds value to the product through increased convenience and availability.
2
Q
What are the elements of marketing mix?
A
- Product – the core benefits and features that the consumer receives, including packaging, branding and additional services
- Price – typically the money paid for the product (also barter).
- Place (or distribution) – the means by which the product is made available to the customer (intermediaries/direct delivery)
- Promotion – how the product is communicated to customers through a range of media (personal selling, advertising etc).
- Fifth P - people
3
Q
What is the four C classification proposed by Lauterborn?
A
- customer needs and wants (product)
- cost to the user (price)
- convenience (place)
- communication (promotion). more customer-focused, may be more relevant to discussions of not-for-profit or social marketing
4
Q
What demographic approaches are there to segmenting consumer markets?
A
- Age e.g., children’s books
- Family size/family life cycle e.g., size and nature of housing
- Gender e.g., types of cosmetic products
- Income/occupation e.g., financial products – savings, shares
- Race/religion e.g., foodstuffs and cooking appliances
5
Q
What psychographic approaches are there to segmenting consumer markets?
A
- Personality e.g., leisure activities involving risk such as white-water rafting
- Motivation e.g., household furnishings purchased for functional or esteem value
- Life style e.g., the arts – museums, theatres
6
Q
What geographic approaches are there to segmenting consumer markets?
A
- Country/region e.g., sports and other leisure activities
- Urban or rural area e.g., transport
- Climate e.g., clothing
7
Q
What behavioural approaches are there to segmenting consumer markets?
A
- Product usage (volume and frequency of purchase) e.g., packaged goods
- Benefits sought e.g., speed vs. ‘quality’ of restaurant meals
- Attitudes e.g., towards the environment and recycling behaviour
8
Q
Example of market segmentation from Dibb and Simkin (rice)
A
- Lazy Lisas – more prone to resting than cooking: ready-meals and take-aways preferable to cooking full meals from scratch
- Hedonistic Helens – more interested in doing right for the planet or ‘their causes’ than cooking, which is not a priority Favourable to Fairtrade
- Proper Paulas – cooking matters and self-confident in their abilities
- Reticent Ritas – reluctant to try anything new, be it recipes, ingredients, cooking styles, meal occasions or retail outlets
- Busy Belindas – women with little time to cook, as it interferes with socialising and out-of-home leisure pursuits.
9
Q
How can you classify approaches to the segmentation of organisational/B2B markets?
A
Geographic –
- location of the organisation/head office;
- local versus global firms
Business demographics –
- size (small and medium enterprises or large corporations);
- age (start-up or established); organisational form (sole trader, partnership, company);
- sector (public/private sector);
- nature of business (agriculture, manufacturing, service, etc.). .
Behavioural characteristics –
- for example, current or potential clients; competitors’ customers;
- value and volume of purchase; frequency of purchase;
- nature of product use (e.g., in the manufacturing process). .
Decision-making process –
- who makes and influences purchasing decisions;
- number of individuals involved;
- speed of process. .
Personal characteristics of decision-makers – for example,
- age,
- experience,
- attitudes towards risk and loyalty to supplier; negotiation style.
10
Q
What are quality criteria for selecting market segments?
A
- Homogeneous – so that individuals are likely to respond to marketing stimuli in similar ways.
- Accessible – the market segment can be reached by existing or potential communication and distribution channels and services. .
- Measurable – the size of the audience can be established.
- Actionable – this refers to the resources of the organisation and the ability to reach and influence the audience,
- Viable/substantial – commercial marketers will consider segments that are profitable and sustainable. Social and not-for-profit marketers must assess whether segments will fulfil the programme objectives and justify the resources allocated to them.
- Ethical – Programmes, particularly those delivered by governmental agencies, may be criticised for directing resources towards some groups and not others (banks criticised for not installing ATMs in deprived areas).
11
Q
What is Dibb and Simkin advice on selecting target markets?
A
How many segments should be targeted?
- (organisation’s corporate strategy,
- developments in the market,
- its basis for competing,
- the available product portfolio,
- available resources,
- current financial performance,
- stakeholder requirements,
- brand standing,
- customers’ perceptions and expectations, plus the activities of competitors)
Which segments should be targeted?
- (careful assessment of the attractiveness to the organisation of the available segment options)
12
Q
what is an undifferentiated strategy?
A
Offering a single product/service concept to most of the market, across different market segments. -
- if the differences in customer needs and buying behaviour are fairly minor. -
- organisation has insufficient resources to target the segments separately
- poor understanding of segmentation benefits.
little evidence to support its use -
- product or service may fail to satisfy customers’ needs;
- marketing programmes will be too broad to appeal.
13
Q
what is a single segment strategy?
A
- developing a single product or service offering to appeal to a carefully defined group of customers.
- For organisations with limited resources, the advantages are that all efforts can be focused on developing expertise in one area.
- Risks - should the chosen segment decline, the corporation’s prospects and financial worth will decline. (fax machines, photo development)
14
Q
what is a multi-segment strategy?
A
- targeting a different product or service concept at each of a number of segments.
- advantage - risk is broadly spread (Mars), should one segment decline, Mars can more readily reallocate resources elsewhere.
- For corporations with limited resources, the difficulty is that costs of targeting and sustaining the different target markets can be high
15
Q
According to Dibb and Simkin, how do you assess market attractiveness?
A
- . An organisation’s resources – how costly will it be to target the segment and does the organisation have sufficient resources to do so? .
- Existing market share – does the organisation have existing market share in this market and is the segment synergistic with its other activities? .
- Production and scale economies – are there likely to be any production and scale economies?
- Product expertise – does the organisation have the required product expertise or relevant experience which can be developed? .
- Customer needs – how readily can the needs of the customer be met and how stable might these be over time? .
- Segment size, structure and growth – how big is the segment, how is it made up, and how might it develop in the future? .
- Competitive environment – what is the level and nature of the competition now and what might it be in the future? .
- Market trends and the marketing environment – what issues in the marketing environment might positively or negatively affect the segment’s potential? .
- Profitability/returns – what is the likely profitability from the segment and what market share gains and other returns might be possible?
16
Q
What are key customer behaviours according to Zeithaml?
A
- Product adoption/purchase – may include the purchase of a product, such as a new bank account, or the adoption of a behaviour, such as making donations to a charity. .
- Repeat purchase – loyalty .
- Switching behaviours – leaving one organisation or behaviour (new bank account, junk instead of healthy food) .
- Word-of-mouth behaviours .
- Complaining behaviour
17
Q
According to Kotler and Armstrong, what are the determinants of consumer behaviour?
A
- psychological (beliefs, attitudes and motivations.)
- personal, social (reference groups, family, roles and status)
- cultural factors
18
Q
What is Bandura’s Social-Cognitive Theory?
A
a model based on ‘triadic reciprocal determinism’ where ‘behaviour, cognitive and other personal factors, and environmental influences all operate interactively as determinants of each other’
19
Q
What comprises an attitude in marketing?
A
three main elements on which theorists focus are:
- 1 a cognitive component (beliefs/knowledge)
- 2 an affective component (feelings)
- 3 a conative component (behavioural).
20
Q
What are reference groups according to Engel and Blackwell?
A
Reference groups are groups ‘which provide norms and values that become the perspectives that influence behaviour’ (Engel and Blackwell, 1982)
21
Q
What are the cultural determinants of consumer behaviour?
A
- Kotler and Armstrong (2008) describe cultural factors as the fourth class of determinants of consumer behaviour.
- Culture (often equated with nation, i.e., national culture) describes the norms, values and beliefs of a society, or group, and has a major influence on consumer buying and consumption behaviour (Walmart in Germany)
22
Q
What does STEEPLE stand for?
A
STEEPLE – socio-cultural, technological, economic, ecological, political, legal, ethical
23
Q
What is Kotler and Armstrong stage model of consumer behaviour?
A
- Problem recognition
- External search
- Alternative evaluation
- Purchasing process
- post-purchase evaluation
24
Q
What is Rogers innovation/adoption model?
A
- Awareness – initially the potential customer is unaware of the product and then at the awareness stage they are exposed to the innovation but lack complete information about it.
- Interest – at the interest, or information, stage the individual becomes interested and seeks additional information about the new product.
- Evaluation – at the evaluation stage the potential customer assesses the benefits of the product and the relevance to current and future needs.
- Trial stage – the potential customer makes full use of the innovation.
- Adoption stage – the customer decides to continue the full use of the innovation
25
What are the stages of product adoption curve?
* Innovators 2%
* Early adopters 13%
* Early majority 35%
* Late majority 35%
* Laggards 13%
* Rejectors 2%
26
What are the limitations of product adoption models?
* no indication of the length of time involved in completing the stages (clothes vs. holidays)
* Consumers may return to earlier stages (car)
* it can be difficult to assess which stage a customer has reached.
* Often the information collection and evaluation stages are integrated.
* The way a consumer moves through stages depends on the product under consideration
27
What is secondary marketing research?
* Secondary research refers to information that is already available and therefore not collected for the particular purpose in hand.
* Also referred to as desk research, this involves searching sources such as databases, press releases, journal papers
28
What is primary research?
information that is collected for the specific purpose or research problem in hand and therefore does not already exist.
29
What are the potential sources of error in marketing research?
* Bias introduced in the way that questions are presented on a questionnaire (instrument error) or by the interviewer (interviewer bias).
* The way in which a question is asked or presented
* The way in which the sample is chosen and the proportion of the sample who respond (sampling error)
* The ways in which the data is analysed and presented can suggest very different findings. drawn
* Respondent error may arise due to the respondents’ inability (possibly due to memory) or unwillingness to provide accurate and truthful answers.
30
What is organisational buying behaviour?
Organisational buying behaviour is the decision-making process by which formal organisations
* establish the need for purchased products and services
* identify
* evaluate
* choose among alternative brands and suppliers.
31
What are the differentiating factors for organisational buying behaviour?
* Fewer buyers and size of purchase
* Derived demand (Purchasing in these markets is not for end consumption but for the purpose of producing and selling goods to the final, consumer market)
* Expert buyers
* Complexity of the decision-making process and unit/buying centre
32
Which five roles for DMU do Webster and Wind describe?
* **deciders** (power to select suppliers)
* **influencers** (affect the decision through supplying information)
* **buyers** (make the actual purchase)
* **users** (employees who use the product)
* **gatekeepers** (those who control the information flow and can prevent the selling organisation from reaching key influencers and deciders).
33
What are the aspects of intercultural negotiation styles?
According to Usunier:
* **The Chinese** deliberately adopt a fairly passive attitude, taking care not to show enthusiasm, covering up any feelings of impatience … so as to force their opponents to be the first to show their hand … They use time shrewdly. If they sense that business people are in a hurry to leave China, they may slow down negotiations and turn the deadline to their advantage.
* **Middle Eastern style** (Arab/Islamic world) some basic characteristics, for example, ‘One must expect a great deal of emotion, theatricality and demonstrativeness, interspersed with true pragmatism. The mixture is often bewildering. Friendship is sought, relationships are personalised, and the idea of a cold “businesslike”relationship is difficult to envisage. , the sense of loyalty can be very strong.’
34
What are the factors influencing organisational buyer behaviour?
inner circle types of behaviour:
* : purchase,
* repeat purchase,
* switching,
* word-of-mouth communication
* complaining, ‘
individual factors’ (those involved in the buying process)
* age,
* income,
* education,
* job position,
* personality,
* risk,
* attitudes.
interpersonal factors –
* authority,
* status,
* empathy,
* persuasiveness – relationships both within the organisation and between the buyer and the supplier.
The outer circle: factors relevant to the organisational context
* – objectives,
* policies,
* procedures,
* organisational structures
* systems.
outer area:
* socio-cultural,
* political,
* legislative
* economic environment
35
What are the stages for organisational buying process?
* Problem recognition
* General need description
* Product specification
* Supplier search
* Proposal solicitation
* Supplier selection
* Order-routine specification
* Performance review
* - new-buy - modified re-buy - straight re-buy
36
What is the IMP interaction model? (Ford et al)
* Influential for relationship marketing
* B2B exchange is created within stable, long-term business relationships where buyers and sellers depend on each other.
* business exchange cannot be understood as a series of independent transactions of given resources – but rather as complex relationships between buying and selling organisations, where value is created through interaction
* Each relationship is part of a wider network of relationships within buyer/seller organisations and within the wider business network.
37
How do you define customer satisfaction?
* ‘satisfaction is an evaluation that the chosen alternative is consistent with prior beliefs with respect to that alternative’ (Engel and Blackwell, 1982, p. 501).
* This highlights the cognitive structure of satisfaction – that is, we think about the consumption experience we have just had, make a mental comparison between what we think should have happened and, if the two match, then we are satisfied.
* If not, we are either very satisfied or dissatisfied dependent on the direction of the difference
38
What is the concept of customer delight?
Oliver et al. (1997) describe how organisations were and should be aiming for, not just customer satisfaction, but rather ‘customer delight’. (affective element in addition to cognitive)
39
What is the relationship between between customer satisfaction and loyalty?
Heskett et al - satisfaction-loyalty relationship A satisfied customer is loyal Zone of defection Zone of indifference Zone of affection Citizenship behaviour (OP clinic:)
40
What are examples of situations where the positive satisfaction–loyalty relationship does not hold (dissatisfying exp)?
Consumers may have very dissatisfying experiences, but there are no alternative suppliers so they have to remain with that supplier or forgo the product (government/public transport) switching costs are high there may be an ongoing relationship with that organisation (a favourite restaurant) the organisation may have made efforts to rectify the situation
41
What are examples of situations where the positive satisfaction–loyalty relationship does not hold (satisfying exp)?
consumers may have had very satisfying experiences but situational factors prevent re-purchase. Within an organisational context, tendering regulations and criteria or new budgetary constraints may outweigh previous experience with a supplier. other factors such as convenience, may be more important as choice criteria there may be little perceived difference between alternative suppliers
42
How do Solomon et al Solomon et al. describe the two-way interactive nature of service encounters?
* ‘face-to-face interactions between a buyer and a seller in a service setting’
* a ‘dramaturgical metaphor’ :customers and customer contact employees as front-stage performers; others as back-stage performers who support those working on the front stage.
* failure of participants to read from a common script
43
How can service encounters be described?
Encounters can be described as
* purposive,
* task orientated
* goal orientated -
we aim to achieve something such as returning home with the right products after a successful shopping trip or enjoying a successful meal out with friends involving good food and quality service.
Often our goals are ‘frustrated’ or ‘interrupted’. The restaurant may provide a more limited menu than expected, slow service, rude waiters or an unpleasant environment.
44
B716 (exam revision)
flashcards
Decks in class (7)
# Cards
