Marketing mix (EPHE 253)

megawalelord's version from 2016-03-15 04:16


Question Answer
What is a key component of product success?Market research
What are the formative steps of market research?Formative testing, pretest, evaluation and monitoring
What is involved in formative testing?Analyze environment, select target, develop preliminary strategies
What are methods of pretesting?Focus groups, professional review, interviews and natural exposure testing
What is primary market research?Research hasn't been collected before, tailored to a specific target
Qualitative market research involves...Small sample groups, focus groups, interviews
Quantitative market research involves...Large segmented samples, surveys
Secondary market research involves...Using previously collected research
What must you know for secondary research to be useful?Who the target was, what their needs were, what behaviour was being promoted, perceived cost/benefits, marketing strategies, results?

Product Qualities

Question Answer
What are the qualities of the product?Relative advantage, compatibility, complexity, trialability, observability, minimal risk
What is relative advantage?Why is product better than competition product?
Compatibility means...Product adheres to current needs, values and beliefs
Complexity means...The product is easily understood
Trialability for means...How easy the product is to test before committing
Observability means...How easy it is to see the relative benefit or results of the product
Minimal risk means...There is minimal outcome uncertainty and modest commitment


Question Answer
Price, according to social marketing is...the cost that the target market associates with the product
Price, according to traditional marketing exchanged for the product
Non-monetary cost can be...time, effort, energy, risk or discomfort
What is exchange theory?the benefits we offer the target must be equal to or greater than the cost of buying the service or adopting the behavior
Name common pricing objectivesmaximizing profit, maximizing # of adopters, cost recovery, social equity, demarketing
What are the pricing options?cost based pricing, competitive pricing, demand pricing, value based pricing

Types of Cost

Question Answer
Exit Costthe cost of abandoning a behavior (ie. cancellation fee, discomfort)
Entry Costthe cost of adopting a new behavior (ie membership fee)
Monetary Cost is...The price of buying the product
Ways to reduce monetary cost arecoupons, discounts, promotional pricing, segment pricing
Non-monetary costs can be...time, effort, discomfort, physical effort
Ways to reduce monetary cost areembedding activities (flossing while watching TV), anchoring a new behavior to a habit (take the stairs to office), free trial, approval from authorize (minimizes risk)
Ways to increase monetary benefitcash incentives, allowances, rebates, price adjustments
Ways to increase non-monetary benefitsrecognition, appreciation from others


Question Answer
Place is also known asDistribution Channel
Place is defined asWhere you can access the product
What is the objective of the distribution channel?to make performing the behavior as pleasant as possible OR making the competing behavior inconvenient
Ways of enhancing convenience?closer locations, longer hours, more appealing location, be there for decision making process


Question Answer
Promotion is...persuasive communication to highlight the product benefits, the pricing, and the place
Promotion should...Inform the target why they would choose this product over another product
Message Creation should be...meaningful, believable and distinctive
What are promotional channels?the way in which you let the target know about the product
Advertising is...a paid message in mass media (promotional channel)
Publicity is...A free message in mass media including letters to the editor, press kits and news releases (promotional channel)
Sales promotions are...Giving away trials or gimmicky items (promotional channel)
Personal selling isface to face selling (College pro, Cutco) (promotional channel)

Market Position

Question Answer
Low Cost LeadersAppeal to the most people (Walmart)
Technology LeadersAre the face of innovation (Apple)
Quality LeadersAre known for well performing products (Under Armor)
Service LeadersAre known for above and beyond service (LITERALLY NOT AIRLINES)

Marketing Mix

Question Answer
What are the elements that make the marketing mix?Product, Price, Place, Promotion and Public
What is the product?what is being marketed
What is the price?What is being exchanged for the product
What is the place?Where the product is accessed
What is the promotion?How the product gets to the public
What is the public?the target audience

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