BUS 367 Final Exam (Exam #2)

Case Study: Dove

-"Real Women are beautiful" premise -In 2007 the brand was the world's number one "cleaning" brand -Brand is post WWII -Marketing Research: Mainly on women (30,000 - 10 countries), only 2% described themselves to be beautiful -Dove launched "real beauty" campaign -Risked moving brand to a positioning that was at odds w/its heritage -Mission: To make more women feel beautiful everyday by broadening the narrow definition of beauty & inspiring them to take great care of themselves -Impact of superbowl ad was huge, spreading awareness to Oprah and other major channels within the market -"Dove is about women feeling more beautiful, more women feeling beautiful." -Dove wanted to create a "buzz" and was successful -"Campaign for real beauty." established emotional connections -Influencers (Katie Curec & Oprah) played a central role in building advocacy

Case Study: Harley Davidson

-Building brand community -Having different events or gatherings -Posse Rides -"Border to Border" -"Rally" -Meeting new people w/same interests -A sense of being in a group and being able to act and be a certain way -To some people it could be inspiring Doesn't matter age/race/sex/etc. forming a group just out of interests toward owning a Harley Davidson

Case Study: Nivea

-Cream or lotion brand (core of the brand) -Changed logo and colors in 1920's -Still has or represents "real people", family oriented, the "everyday" creme -Introducing new products over time to stay relevant -Each new brand stayed different but kept main core values -A "we" brand -Many different products -Using Umbrella branding strategy -skin care -bath -for men -ETC.

Case Study: UPS

-Evolving into an enterprise -newly developed market space -Building a bridge between customer and distributor -UPS changing the logo -take advantage of color being a symbol -"making brown cool." -Dealing with different sized or serious decision makers -All businesses easy to use

Case Study: Ritz Crackers

-Expanding brand by introducing ritz chips -Chip should still had to have ritz characteristics -Did lots of research on difference between crackers and chips -Decision making with store placement -Market research helped this Ritz chip product be successful

Case Study: Mezza Corona

-Largest growers of Pinot Grigio in the world -108years of tradition/very successful in Europe -Packaging isn't doing its justice -Changed packaging -New Label - Different color cap -For every varietal used same logo, but changed label color

Case Study: Mayo Clinic

-New Idea of group doctors working together -Becoming popular, because clinic was actually helping people and was working efficient -Started to expand to different states -Health book/letters for brand/recognition -Hardly markets or does any advertising -Doesn't have to cause of status / strong brand -Influencing the mind of the consumer

What is a brand community? What are the characteristics of such a group?

A brand community is a non-geographically bound community, based on a structured set of social relationships among owners of a brand and the psychological relationship they have with the brand itself, the product in use, and the firm. A community is characterized by consciousness of kind, shared rituals and traditions, and a sense of moral responsibility.

What is a consumption-based group or a consumption subculture? What are the characteristics of such a group? How can marketers develop strategy based on consumption subcultures?

A consumption subculture is a distinctive subgroup of society that self-selects on the basis of a shared commitment to a particular product class, brand, or consumption activity. These subcultures also have (1) an identifiable, hierarchical social structure; (2) a set of shared beliefs or values; and (3) unique jargons, rituals, and modes of symbolic expression. Thus, these subcultures are reference groups for their members as well as those who aspire to join or avoid them. For product based groups, the firm must market the subculture itself as well as, or even instead of, the product. Groups based on activities obviously are markets for the requirements of the activity itself such as golf clubs for golfers. However, these groups develop rituals and modes of symbolic communication that often involve products or services. While these subcultures adopt consumption patterns in large part to affirm their unique identity, the larger market often appropriates all or parts of their symbols at least for a time. Thus, clothing initially worn by a group such as snow boarders as membership uniform may emerge as a style for a much larger group. Marketers such as Nike observe such groups closely for clues to new trends. Consumption rituals associated with consumption subcultures also offer marketing opportunities.

How does a group differ from a reference group?

A group is two or more individuals who share a set of norms, values, and beliefs and have certain implicitly or explicitly defined relations to one another such that their behavior is interdependent. A reference group is that group whose presumed perspectives or values are being used by an individual as the basis for his or her current behavior.A group is two or more individuals who share a set of norms, values, and beliefs and have certain implicitly or explicitly defined relations to one another such that their behavior is interdependent. A reference group is that group whose presumed perspectives or values are being used by an individual as the basis for his or her current behavior.

What is a dissociative reference group? In what way can dissociative reference groups influence consumer behavior?

A group that serves as a negative (unattractive) reference point. The degree of desirability of group membership is negative. They influence behavior by the negative association they give to products and activities they embrace. That is, one tends to avoid products and activities used by dissociative reference groups.

Describe low-involvement learning. How does it differ from high-involvement learning?

A low involvement learning situation is one in which the consumer has little or no motivation to learn the material. High-involvement learning occurs in situations where the individual is highly motivated to learn the material. Low involvement learning can involve the same processes as high involvement learning, but classical conditioning, iconic rote learning, and modeling are most common. Repetition appears to be particularly important in low involvement situations (iconic rote learning). Operant conditioning and analytical reasoning are common learning processes in high-involvement situations.

What is ad avoidance? How is DVR technology affecting it? How are marketers dealing with this phenomenon?

Ad avoidance occurs when the consumer selectively avoids exposure to advertising messages, e.g., zipping, zapping, and muting. Technologies such as the DVR are giving consumers more control over exposure to television commercials. In response, companies can utilize various strategies in a DVR context including compressed ads, still-frame ads, hybrid ads, interactive ads and dynamic ad placement. In addition, marketers are increasingly using nontraditional media to gain exposure for their messages. For example, marketers are increasingly placing ads on the sides of trucks and taxis as well as placing products in TV shows, videos and movies.

What is a consumer inference? Why is this of interest to marketers?

An inference goes beyond what is directly stated or presented. Consumers use available data and their own ideas to draw conclusions about information that is not provided. For example, consumers may use price and/or ad intensity as quality signals.

What is an innovation? Who determines whether a given product is an innovation?

An innovation is any idea, practice, or material artifact perceived by the potential market to be new.

What is an online social network site? What are the guidelines for marketers operating in online communities and social networking sites?

An online social network site is a web-based service that allows individuals to (1) construct a public or semi-public profile within a bounded system, (2) articulate a list of other users with whom they share a connection, and (3) view and traverse their list of connections and those made by others within the system. Guidelines for marketers include (1) transparency as it is critical that companies identify themselves and any posted content as such, to avoid the risk of being "found out" and subjected to criticism from the community; (2) to be part of the community, not just market to it; and (3) take advantage of the unique capabilities of each venue.

What is an opinion leader? How does an opinion leader relate to the multistep flow of communication?

An opinion leader is the person who filters, interprets, or provides information on various subjects to the group members. The opinion leader acts as an information middleman between the marketer and the consumer (group member) in the multistep flow of communication.

Describe analogical reasoning.

Analogical reasoning allows consumers to use an existing knowledge base to understand a new situation or object. The use of analogy is a form of analytical reasoning.

What is meant by analytical reasoning?

Analytical reasoning is the most complex form of cognitive learning, involving individuals' engaging in creative thinking to restructure and recombine existing information as well as new information to form new associations and concepts. Information from a credible source that contradicts or challenges one's existing beliefs will often trigger reasoning.

What is meant by attention? What determines which stimuli an individual will attend to? How do marketers utilize this?

Attention occurs when the stimulus activates one or more sensory receptor nerves and the resulting sensations go into the brain for processing. Attention is determined by three factors: (1) the stimulus, (2) the individual, and (3) the situation. Marketers use their knowledge of the effects of manipulating these factors, alone and in combination, to bring about attention to ads, packages, and so forth.

What is a blog?

Blogs are personalized journals where people and organizations can keep a running dialogue. People can read, comment on, and connect to your blog creating a powerful network which also includes other topical and news blogs.

What is brand equity?

Brand equity is the value consumers assign to a brand above and beyond any specific functional characteristics of the product. Thus, there is a halo effect associated with the reputation of the brand such that it has added value or meaning to consumers.

What is a brand image? Why is it important?

Brand image refers to the schematic memory of a brand. It contains the target market's interpretation of the product's attributes, benefits, usage situations, users, and manufacturer/marketer characteristics. It is what we think of and feel when we hear or see a brand name. Company image and store image are similar except they apply to companies and stores rather than brands. Consumers tend to prefer brands and outlets with images that meet their needs and expectations.

What does leveraging brand equity mean?

Brand leverage refers to marketers capitalizing on brand equity. This can be achieved with family branding, brand extensions, and umbrella branding, as well as licensing a brand name for other marketing promotions. The degree to which leveraging brand equity works depends upon the degree of stimulus generalization.

What is buzz? How can marketers create it?

Buzz can be defined as exponentially expanding WOM. It happens when "word spreads like wild fire" with no or limited mass media advertising supporting it. Marketers create buzz by providing opinion leaders advance information and product samples, by having celebrities use the product, by placing the product in movies, by sponsoring "in" events tied to the product, restricting supply, courting publicity, and otherwise generating excitement and mystic about the brand.

Distinguish between learning via classical conditioning and learning that occurs via operant conditioning.

Classical conditioning refers to the process of using an existing relationship between a stimulus and response to bring about the "learning" of the same response to a different stimulus that consistently appears with the original stimulus. Operant conditioning (or instrumental learning) differs in that the learner must first engage in the desired behavior and then receive an appropriate reward.

What is co-branding? Is it effective?

Co-branding (also referred to as co-marketing, brand alliances, and joint marketing) is when two brands are given to a single product. Co-branding has been shown to modify attitudes toward the participating brands. However, the effects can be positive or negative and can differ for the two brands involved. Perceived fit will determine the success of the new brand.

What is the difference between cognitive and affective interpretation?

Cognitive interpretation involves the process whereby new stimuli are placed into existing categories of meaning. Affective interpretation is an emotional response triggered by a stimulus such as an ad for wearing safety belts that depicts a rather ugly accident in which the driver was not wearing a safety belt.

What do we mean by cognitive learning, and how does it differ from the conditioning theory approach to learning?

Cognitive learning encompasses all the mental activities of humans as they work to solve problems or cope with situations. It involves learning ideas, concepts, attitudes, and facts that contribute to our ability to reason, solve problems, and learn relationships without direct experience or reinforcement. Cognitive learning can range from very simple information acquisition (iconic rote learning) to complex, creative problem solving (as in analytical reasoning). Unlike conditioning theory, it does not require any form of conditioning (rewards or unconditioned stimuli).

What is a contextual cue? Why is it of interest to marketers?

Contextual cues present in a situation, such as the background color on a web page or the nature of the programming surrounding a brand's ad, play a role in the consumer's interpretation independent of the actual stimulus. Marketers must be aware of these cues to ensure ads are evaluated in the manner in which they are intended.

What are the various categories of innovations? How do they differ?

Continuous, dynamically continuous, and discontinuous. They differ by degree and importance of behavior/attitude change required if they are adopted, with continuous requiring very little change and discontinuous requiring radical change.

What is cross-promotion retail strategy? Provide two examples?

Cross-promotion involves placing signage in one area of the store to promote complementary products in another area. For example, placing Stove Top stuffing signage in the chicken section of the meat counter, or mustard coupons near or on the kielbasa packages in the meat/deli section of the store.

What is meant by exposure? What determines which stimuli an individual will be exposed to? How do marketers utilize this knowledge?

Exposure occurs when a stimulus is placed within range of sensory receptor nerves. The individual does not need to receive the stimuli for exposure to occur. Most exposure is self selected and we tend to expose ourselves to information we think will help us achieve our goals. Marketers should make media decisions, store location decisions, and layout decisions based on these exposure patterns.

What is figure-ground?

Figure-ground involves presenting the stimulus in such a way that it is perceived as the focal object to be attended to and all other stimuli are perceived as the background.

What is meant by hemispheric lateralization?

For most individuals, the left side of the brain controls cognitive activities and "rational" thought, while the right side deals with nonverbal information.

What are infomercials? How effective are they?

Infomercials are long, often 30 minutes or more, commercials that frequently have an 800 number and/or web address through which to order or request additional information. These positively affect brand attitudes and purchase intentions. Infomercials are more likely to be viewed by early adopters and opinion leaders. This implicates a critical indirect influence of infomercials through word-of-mouth communications. This also highlights the role that information and relevance play in driving voluntary exposure to marketing messages.

What is information overload? How should marketers deal with information overload?

Information overload is when there is too much information available to be dealt with effectively. When more information is available than the consumer is comfortable with, he or she may ignore all the information and make inappropriate decisions. Marketers have to determine how consumers acquire information, and how much they are able to use effectively, if they want their messages to persuade consumers.

What is information processing? How does it differ from perception?

Information processing is a series of activities by which stimuli are perceived, transformed into information, and stored. Perception involves all but the storage function (memory). It involves exposure to the stimulus, attending to it, and interpreting it.

What types of group influence exist? Why must a marketing manager be aware of these separate types of group influence?

Informational influence, identification influence, and normative influence. The manager needs to be aware of which conformity type exists because it will affect the marketing strategy required.

What determines how an individual will interpret a given stimulus?

Interpretation is a function of the gestalt, or pattern, formed by the characteristics of the stimulus, the individual, and the situation. Individual characteristics of traits, learning/knowledge, and expectations play a role as do situation characteristics. Also, stimulus characteristics such as stimulus traits and organization (proximity, figure-ground, and closure) play a role.

What is meant by interpretation?

Interpretation is the assignment of meaning to sensations. Interpretation is related to how we comprehend and make sense of incoming information.

What is iconic rote learning? How does it differ from classical conditioning? Operant conditioning?

It is the learning of an association between two concepts in the absence of conditioning. That is, the association is formed without a direct reward (operant conditioning) or pairing the stimulus with an unconditioned response (classical conditioning).

Brand Image Diagram: Brand Design

Look & Feel: -Visual system -typography -color palette Sounds: -language -names -editorial voice Offering: -products -service -content Behavior: -Interaction Recognition / Regard

How can a marketer use knowledge of reference group influences to develop advertising strategies?

Marketers can and do use all three types of reference group influence (informational, identification, and normative) when developing ads. Informational influence is used in ads to show members of a group using product, with the implication that "these types of people find this brand to be the best; if you are like them, you will too." Identification influence is used in ads to demonstrate that a given product is consistent with the group's, and therefore the individual's, beliefs. Normative influence is not used in ads as often as in the past, due to ethical concerns of its use of implicit and explicit suggestions that using, or not using, the brand will result in members of a group you belong to or wish to join rewarding, or punishing, you.

What criteria are used by marketers to classify groups?

Marketers find four criteria useful: (1) membership, (2) strength of social tie, (3) type of contact, and (4) attraction.

Define modeling.

Modeling (or vicarious learning) relates to how consumers do not need to experience rewards or punishments directly to learn. Instead, they can observe the outcomes of others' behaviors and adjust their own accordingly. Similarly, they can use imagery to anticipate the outcome of various courses of action.

What ethical concerns arise in applying knowledge of the perceptual process?

Most of the ethical concerns in this area relate to the conflict between presenting one's brand in a favorable light and presenting it completely accurately.

What is an aspiration reference group? How can an aspiration reference group influence behavior?

Non-membership groups with a positive attraction. They exert a strong influence on product aspirations because ownership of products used by the aspiration reference group makes one more like that group and may even be a prerequisite for membership.

What is meant by nonfocused attention?

Nonfocused attention is a low involvement scanning of the environment. It appears to be mainly a right brain activity.

How can marketing managers identify opinion leaders?

Offline, opinion leaders can be targeted through specialized media sources. For example, Nike could assume that many subscribers to Runner's World serve as opinion leaders for jogging and running shoes. Online, opinion leaders such as high-profile bloggers can often be identified in terms of their activity and influence in a given arena.

What is meant by stimulus generalization? When do marketers use it?

Often referred to as the "rub-off-effect," once we have learned a particular response that works for us, we are able to capitalize on that learning by transferring it to similar learning situations or stimuli (generalizing). This is particularly useful to marketers in branding, where the use of a family brand allows consumers to learn product quality and performance via stimulus generalization.

How can a marketer use knowledge of adopter categories to develop marketing strategy?

Once defined, the marketing mix can be designed with the characteristics of each group in mind. Thus, when a product is introduced messages should use themes and media appropriate for innovators and soon for early adopters, then early majority, and so forth.

What characterizes an opinion leader?

Opinion leaders have greater knowledge of and interest in the product category in question. They are exposed to more mass media, and are more gregarious and outgoing. However, they tend to have the same demographic characteristics as their followers.

Explain the role of enduring involvement in driving opinion leadership?

Opinion leaders possess the characteristic of having a greater long-term involvement with a given product category than others in the group (known as enduring involvement), which leads to enhanced knowledge about and experience with the product category or activity. This knowledge and experience makes opinion leadership possible.

What is adaptation level theory?

Over time we adjust to (and no longer pay attention to) the level and type of stimulus to which we are consistently exposed.

What is meant by subliminal perception? Is it a real phenomenon? Is it effective?

Perception below the conscious awareness level (A subliminal stimulus is used in a message whereby the stimulus is presented so fast or so softly or so masked by other messages that one is not aware of seeing or hearing it). Although subliminal advertising has been a concern in the past, there is no evidence marketers are using subliminal messages.

What is perceptual mapping?

Perceptual mapping offers marketing managers a useful technique for measuring and developing a product's position. This involves mapping how consumers perceive the similarity and dissimilarity between a set of competing brands or products. The closer two brands are in a perceptual map, the more they are perceived to be similar. The farther away any two brands are in the map, the more dissimilar they are perceived to be. The dimensions of the perceptual map are used to understand the attributes consumers use to compare brands.

Brand Image Diagram: Brand Positioning

Personality: -Attributes -Attitudes -Associations Positioning: -Value prop -Differentiation -Audience -Vision & Values

What five factors determine the strength of reference group influence in a situation?

Product or brand use visibility to the reference group, the necessity/nonnecessity nature of the product, the level of commitment to the group, the relevance of the behavior/product to the group, and the individual's confidence in his/her ability to make a sound decision.

What is product positioning? Repositioning?

Product positioning is a decision by a marketer to try to achieve a defined brand image relative to competition within a market segment. That is, marketers decide that they want the members of a market segment to think and feel in a certain way about a brand. This is generally expressed in relation to a competitive brand or a usage situation. The term product positioning is most commonly applied to decisions concerning brands but it is also used to describe the same decisions for stores, companies, and product categories. Product repositioning refers to a deliberate decision to significantly alter the way the market views a product. This could involve its level of performance, the feelings it evokes, the situations in which it should be used, or even who uses it. Repositioning can be very difficult and costly, requiring consumers to unlearn old associations and replace them with new ones, taking years to accomplish.

What impact does program involvement have on the attention paid to commercials embedded in the program?

Program involvement, particularly moving from low to moderate involvement increases the attention paid to ads in the program, as shown in figure 8-4.

How can a marketer foster a brand community?

Research finds that certain practices or activities can enhance value for members of brand communities. These practices cluster around four categories, namely social networking, community engagement, brand use, and impression management. From the firm's perspective, building a brand community involves establishing relationships with the owner and helping owners establish relationships with each other both online and offline.

How can rhetorical figures enhance attention?

Rhetorical figures involve the use of an unexpected twist or artful deviation in how a message is communicated either visually in the ad's picture or verbally in the ad's text or headline. The unexpected nature of rhetorical figures attracts and holds attention as consumers decipher the ad's meaning. A classic example of this is "Bounty's quicker picker upper."

What is the difference between semantic and psychological meaning?

Semantic meaning is the conventional meaning assigned to a word as it is found in the dictionary. Psychological meaning is the meaning assigned to a word based on experiences and the context or situation in which the word or other symbol is used.

What is a smart banner? How does this relate to selective attention?

Smart banners are banner ads that are activated based on terms used in search engines. There is evidence of preconscious screening among web surfers. It seems they are able to spot a banner ad without actually looking directly at it, thus decreasing direct attention. It seems that experience with the Web allows consumers to build up knowledge about banner characteristics that is used to avoid direct attention. However, since smart banners present consumers with information they are more likely interested in, the sub-conscious filters are likely to pick up on that information and direct conscious attention toward those banners.

What stimulus factors can be used to attract attention? What problems can arise when stimulus factors are used to attract attention?

Stimulus Factors / Potential Problems Size - Smaller stimuli are more likely to be unnoticed Intensity- When using repetition, attention generally decreases across repeated exposures— attention reallocation can occur Attractive Visuals - Drawing attention to one element of an ad can detract from others, resulting in drawing attention from the brand and its selling points Color and Movement - Dull color and stagnant items are less noticeable Position - Items difficult to find and/or out of the visual field in a store will most likely lack attention. Print ads on the left-hand page receive less attention. It is also important not to place content within low impact zones. Isolation In the extreme, can limit the amount of information presented. Format - Ads that lack a clear visual point of reference or have inappropriate movement increase the processing effort and decrease attention. Likewise, audio messages that are difficult to understand due to foreign accents, inadequate volume, or a speech rate which too fast also reduce attention. Contrast and Expectations - Consumers pay less attention to stimuli that blend in with their background. Packaging, in-store displays, and ad that coincide with our expectations tent to be unnoticed. Interestingness - Consumers find unentertaining ads to be uninteresting Information Quantity - Information overload causes consumers to pay less attention—they simply cannot attention to too much information

What is sensory discrimination? What is a just noticeable difference (j.n.d.)?

The ability of an individual to distinguish between similar stimuli is called sensory discrimination. The minimum amount that one brand can differ from another with the difference still being noticed is referred to as the just noticeable difference (j.n.d.). Marketers seeking to find a meaningful difference between their brand and a competitor's must surpass the j.n.d. in order for the improvement or change to be noticed by consumers.

How can marketers utilize opinion leaders?

The first task is to identify opinion leaders for a particular product or service. Then a portion of the marketing effort can be directed at those opinion leaders who will in turn influence other consumers. Opinion leaders play an important role in word of mouth communication. Thus, to the degree that marketers can positively influence opinion leaders, they are indirectly influencing many other consumers.

What is the diffusion process? What pattern does the diffusion process appear to follow over time?

The process by which innovations spread to the members of a social system. Over time, there is a period of relatively slow growth, followed by a period of rapid growth, followed by a final period of slower growth.

How does a market maven differ from an opinion leader?

The term market maven is used to describe individuals who are opinion leaders about the shopping process in general. An opinion leader is a specialist who possesses a high level of knowledge for a given product or class of products.

What determines the likelihood that a consumer will seek information from an opinion leader?

The two factors that influence the likelihood that a consumer will seek information from an opinion leader are product/purchase involvement and product knowledge. See figure 7-5.

What are adopter categories? Describe each of the adopter categories

They are groups based on the relative time at which the consumer adopts (buys) the product. a. Innovators: venturesome risk takers. Younger, better education and more socially mobile. b. Early Adopters: opinion leaders in local reference groups. Successful and well educated. c. Early Majority: cautious with respect to innovations. Socially active, but seldom leaders. Older, less well educated, and less mobile. d. Late Majority: skeptical about innovations. Older, less social status and mobility. e. Laggards: locally oriented and engage in limited social interaction. Relatively dogmatic and oriented toward the past.

What is ambush marketing?

This is the term for a marketing approach in which firms attempt to associate their companies with an event such as the Olympics without becoming an official sponsor. It is "any communication or activity that implies, or from which one could reasonably infer that an organization is associated with an event, when in fact it is not."

What are zipping, zapping, and muting? Why are they a concern to marketers?

Zipping occurs when a viewer fast-forwards through a commercial on a prerecorded program. Zapping involves switching channels when a commercial appears. Muting is turning the sound off during a commercial. All three are extensive and greatly reduce the viewing and thus the impact of commercials.

How does a knowledge of information processing assist the manager in the following:

a) Formulating retail strategy? Retailers can structure the interior of their stores to minimize information overload, and to maximize exposure to high margin items. Shelf position and amount of shelf space can be used to attract attention to high margin items. Point of purchase displays can fulfill the same task. A careful blend of store stimuli can be used to help consumers assign a positive meaning to the store. b) Developing brand names and logos? Knowledge of how words are interpreted, the visual images they convey, and the ease with which they are remembered, is very useful in brand name selection. In designing logos, dimensions of naturalness, elaborateness, and symmetry are important. c) Formulating media strategy? The fact that exposure is selective, and is correlated with demographics, lifestyle, and product use, is the basis for media strategy. d) Designing advertisements? This knowledge can help us design ads that will both attract attention and provide the desired meaning. e) Package design and labels? As with ads, this knowledge can help us design packages and labels that will attract attention as well as provide the desired meaning.