MK3010 1st EditionExam # 2 Study Guide Lectures: 11-17Lecture 11 (September 30) Ch.91. Segmentation: process of diving a large market into smaller target markets or customer groups with similar needs and/or desires. 2. Segmentation Methods - Geographic- Demographic- Psychographic- Benefits- Behavioral: Occasion and Loyalty3. Psychographic Segmentation- Social Class: upper, middle, working, and lower class- Personality: Organized, artistic - Lifestyles: healthy, interests 4. Behavioral Occasion: buy different things for funeral or weddingBehavioral Loyalty: keep buying that same brand, rewards program at Kroger 5. Evaluate Segment Attractiveness: Substantial, Reachable, Identifiable, Profitable, and Responsive Identifiable: who is in their market? Segment need to be large enough to be meaningful.Substantial: too small and it is insignificantReachable: know the product exists, recognize how to buy, and understand what it can do.Responsive: customers must react positively to a firm’s offering and move toward the firm’s product or service. 6. Target Marketing: Differentiated, Concentrated, Micromarketing or One to One, Undifferentiated or Mass Marketing.Lecture 12 (Oct. 2) Ch. 97. Develop Positioning Strategies- Value - Salient Attributes: Things customers value- Symbol: apple logo think good product and trendy- Competition : dunkin donuts vs. starbucks coffeeLecture 13 (Oct. 7th) Ch. 101. Marketing Research: consist of a set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can aid decision makers involved in marketing good, services, or ideas. The marketing research process: 1. Define the objectives and research needs 2. Design the research 3. Data collection process 4. Analyze data and develop insights 5. Action plan and implementation Step 1: Determine the objective and decide what information is needed to answer specific research questions.Step 2: Identify the type of data needed and determine the type of research necessary to collect it. Step 3: Secondary Data: Info that already exits somewhere which has been collected for another purpose.Primary Data: Consists of information collected for the specific purpose at hand. 2. Data Collection Techniques:Exploratory Research: attempts to begin to understand the phenomenon of interest and provides initial information when the problem lacks any clear definition. The gathering of primary data by observing relevant people, actions, and situations Conclusive Research: provides the information needed to confirm preliminary insights and which managers can use to pursue appropriate courses of action.Experimental research is a type of quantitative research method that gathers primary data by selecting matched groups of subjects.Panel Research is quantitative that involves collecting information from a group of consumers (the panel) over time. Can be primary (response to a survey) or secondary (record of purchases)Scanner research: quantitative that uses data obtained from scanner readings of UPC codes at checkout counters. Survey: systematic means of collecting information from people that generally uses a questionnaire. 3. The ethics of using customer information: American we use it and collect the information and we don’t know how it is used or what is collected. Lecture 14 (October 9th) Ch. 111. Types of Products: Specialty, Shopping, Convenience, UnsoughtSpecialty: product we have strong brand preferences and loyal to the brand. Don’t compare and shop a lot. Cell phone apply only, ring at tiffany’sShopping: don’t buy them often, do research on it, willing to put in more effort to buy it. Clothes, car, phone, laptopsConvenience: no effort, available at reasonable prices. Eggs, toothpaste, soda, chips Unsought: some products you don’t like to buy, coffins or cemetery spots2. Product lines: groups of associated items such as items that consumers use together or think of as part of a group of similar products.Product mix: or product assortment is the complete set of all products offered by a firm. Breadth: number of product linesDepth: number of categories within a product lineIncrease breadth: true religion jeans are a lifestyle brand within apparel, belts, swimwear, and fragrancesDecrease Breath: Due to competitive changes, TCBY is not focusing on yogurt Increase depth: band-aid has over 40 products to heal cuts, Adding a new flavor to poptartDecrease depth: McCormick spices eliminate dozens of products each yearDECREASE LENGTH=DECREASE DEPTHLecture 14 (October 14th) Ch. 113. Branding: brand can use name, logo, symbols, characters, slogans, jingles, and even distinctive packages. Family brand: has name of family on every product you makeIndividual: Profile series, café under GE fridges4. Brand equity: is the differential effect that knowing the brand name has on customer response to the product or its marketingBrand awareness: of my brand, how do I increase awareness by promotion advertising.I want brand equity because if they prefer my brand over another, retailers will want to carry my product. 5. Brand Equity: Perceived value: Tj Maxx low price retail, target has lower prices good quality6. Brand Associations: coke life cans are green so we associate healthy with coke life7. Brand loyalty: Consumers are often less sensitive to price, marketing costs are much lower, firm insulated from the competition. 8. Brand ownership: Manufacturer brand: or national brandPrivate label: store brands like good value or greenwiseBrand Licensing: contractual agreement between firms whereby one firm allows anotherto use its brand name, logo, symbols in exchange for a negotiated feeCobranding: marketing 2 or more brands together on same package. Macy visa card9. Brand extension: refers to the use of the same brand name in a different product line. It is an increase in the products mix’s breadthLine extension: is the use of the same brand name within the same product line and represents an increase in a product line’s depth.Multibranding: is the use of different brand names in the same product categoryNew brands: is the use of a new brand name for a new product categoryBrand dilution: brand name to many product lines10. Brand repositioning: or rebranding refers to a strategy in which marketers change a brand’s focus to target new marketers or realign the brand’s core emphasis with changing market preferences. Lecture 15 (October 16) Ch. 121. Fashion