Exam 1: questions from: ch 1, 2, 3, 4, 5 (so far)
17. What is the "Starbucks Experience" and how has it helped their company to grow?
"An uplifting experience that enriches people's lives one moment, one human being, one extraordinary cup of coffee at a time" By focusing on the customer and committing to providing them with the Starbucks experience, they have gained more loyal customers and therefore higher sales and profits.
64. Outline the factors that Influence Consumer Behavior and give examples.
1. Cultural factors: subculture, perceptions, wants, or values from his or her family or important institutions 2. Social factors: groups and social networks, word of mouth, opinion leaders, online social factors, family, role and status 3. Personal factors: occupation, age and life stage, economic situation, lifestyle, personality and self-concept 4.Psychological factors: motivation, perception, learning, beliefs and attitudes
46. Name the four steps of Market research. Why is Step One most critical?
1. Defining the problem and research objectives 2. Developing the research plan for collecting information 3. Implementing the research plan by collecting and analyzing the data 4. Interpreting and reporting the findings. The first step is the most critical because it guides the entire research process -- make sure you are addressing the right problem.
27. What are the 8 elements in a Marketing plan?
1. Executive Summary 2. Current marketing situation 3. Threats and opportunities analysis 4. Objectives and issues 5. Marketing strategy 6. Action programs 7. Budgets 8. Controls
75. What are the five steps in the Buyer Decision process?
1. Need recognition- can be triggered by internal or external stimuli 2. Information search- can obtain info from many different sources (personal, commercial, etc) 3. Evaluation of alternatives- evaluating alternative brands on the choice set 4. Purchase decision- deciding which brand to purchase 5. Postpurchase behavior- taking additional steps based on (dis)satisfaction
2. The Marketing Process (1.1) has four steps in creating value. What are they?
1. Understand the marketplace and customer wants and needs 2. Design a customer value-driven marketing strategy 3. Construct an integrated marketing program that delivers superior value 4. Engage customers, build profitable relationships, and create customer delight
29. Five Force Model by Michael Porter analyzes the broader scope of an industry and its' competitors? Why is this important and vital for a Chief Marketing Strategist to consider?
5 forces: 1. Competitive Rivalry (Industry competitors): Number of competitors, Strength of competitors, your products vs theirs (quantity, quality, etc) 2. Supplier Power: Determined by how easy it is for suppliers to increase their prices, how many potential suppliers, how unique is the product/service they provide, how expensive would it be to switch from one supplier to another Suppliers have more power when there are less of them because they are in a stronger position to charge you more since you have less options 3. Buyer power: How easy is it for buyers to drive prices down? How many buyers? How much would it cost them to switch from you to a rival? When you only have a few customers, buyers have the power, Power increases as you have more power 4. Threat of Substitution: Likelihood of customers finding a different way of doing what you do, When there is threat of substitution, this can weaken your position and threaten your profitability 5. Threat of New Entry: How easily is if for companies to enter into the specific market? Pricey? Tightly regulated? Saturated? If rivals can enter quickly (either because it is cheap or takes little effort or technologies are not well protected), rivals can weaken your position, Strong and durable barriers to entry can secure position The 5 forces analysis is important to consider because this external analysis points to potential opportunities and threats in the industry. They are a permanent part of an industry's structure. Each of these 5 forces affect profitability for the company, thus by considering each of the factos, the marketing strategy can be adjusted accordingly.
90. Describe the steps in the typical B2B Buying Process. What is an RFP, QA process and VPA (Performance Review).
8 basic steps: 1. problem recognition, 2. General need description 3. Product specification 4. Supplier search 5. Proposal solicitation 6. Supplier selection 7. Order-routine specification 8. Performance review. RFP= document that solicits a proposal through a bidding process by an agency or company interested in procurement of a commodity or service. QA process= quality assurance, systematic process of determining whether a product or service meets specific requirements. VPA= value per action, business model that advertising money are shared between the marketer and the consumer, the amount of advertising money becomes a direct incentive to the consumer.
48. What is a "Focus Group" and why would you use one?
A focus group is a small group of people that meet with trained moderators to talk about a product, service, or organization. It is used as a qualitative marketing research tool for gaining fresh insights into consumer thoughts and feelings
22. What is a "Value Delivery Network"?
A network composed of the company, suppliers, distributors, and ultimately customers who partner with each other to improve the performance of the entire system in delivering customer value
21. What is a "Value-Chain" Analysis? Why is it important to always perform one for a company?
A value chain is the series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products. It is important to perform Value-Chain analysis because a company's value chain is only as strong as its weakest link; it is important to recognize the importance of having everyone in the organization understanding company goals and consumer needs. By performing a value-chain analysis, a company's different functions can better work together to create value for consumers.
49. How does an advertiser create "Behavioral Targeting"?
Advertisers use behavioral targeting by using online data to target ads and offers to specific consumers
79. "Alternative Buying Evaluation" is an important process brand marketing teams must study. Why and what would one learn?
Alternative evaluation: the stage of buyer decision process in which the consumer uses information to evaluate alternative brands on the choice set. How people evaluate alternatives depends on individual consumer and the specific buying situation. Sometimes there is careful and logical thinking, sometimes it's on impulse. Marketers should be able to predict and affect choices, and should study buyers to find out how they actually evaluate brand alternatives
85. How does the corporate B2B buying process differ from the B2C process? What steps are different in each
B2C:process only involves recognizing a need, finding the right brandm, and postpurchase behavior. It is a much simpler decision and evaluation process than B2B. B2B (Business to business): Derived demand -- business demand comes from consumer demand Inelastic and more fluctuating demand -- demand for business products is not much affected by price changes Far fewer but far larger buyers, far more complex buying decisions, process is longer and more formalized
3. Why is it important to understand whether a customer's state of desire for an offering is either in "needs, wants or demands" state?
Because marketing is all about creating value for customers, the company must fully understand the customer and the marketplace. Understanding wants, needs, and demands by conducting customer research, analyze mountains of customer data, and observing customers as they shop.
119. How does "Behavioral segmentation" help improve customer loyalty or "occasion" shopping on holiday's or "Benefits" segment?
Behavioral segmentation- dividing a market into segments based on consumer knowledge, attitudes, use of a product, or responses to product benefit segmentation- dividing the market into segments according to different benefits that customers seek from the product marketing occasion shoppers increases profits in certain spats of the year, like Starbucks and fall themed beverages,
44. Big Data often scares many consumers. Why is that? What can go wrong? What are the positives of having Big data systems available to companies?
Big Data can provide useful information that leads to rich and timely consumer insights, but accessing and sifting through that data can be a daunting task. Usually marketers don't need more information but better information and better use of the information they already have.
52. When using mechanical instruments for research, what is biometric measuring and neuro-marketing?
Biometric measuring includes hear rates, respiration rates, sweat levels, and facial and eye movements Neuromarketing uses EEG and MRI technologies to track brain electrical activity to learn how consumers feel and respond These mechanical instruments for research are used in conjunction with one another in order to provide companies with insights into what turns consumers on and off regarding their brands and marketing.
30. The chapter talks about "Brand Essence". What is it and why is it vital for a company to understand it?
Brand essence: the "heart and soul" of the brand; the brand's mantra, tagline, or slogan Your brand promise Brand essence allows you to look past the product and connect with your target market The brand essence highlights the organization's values, the value it provides to others, and the experience it provides its customers Brand essence is important for a company to understand because to develop customer loyalty, you must look past the product and appeal to a customer's emotion and understand the "why" behind the product or service. • Core essence: nucleus of the brand; who are you • Architecture: specific benefits the brand delivers; what do people buy • Positioning and Value Proposition: what motivates consumers with in competitive space; why do people buy your brand • Reputation: brands perceived ability to deliver value proposition; what do people say about your brand
106. How does B2B Sales handle segmentation?
Business buyers can be segmented geographically, demographically, or by benefits sought, user status, user rate, and loyalty status, or additional variables like situational factors or purchasing approaches. Can establish separate systems for dealing with large/ multiple location customers, like using segments such as healthcare, education, US government, Canadian government (done by Steelcase, producer of office furniture systems).
86. What is a Buying Center? How do business use them and why is it important for marketing to understand the dynamics of the Process? Who are the participants?
Buying center: all the individuals and units that play a role in purchase decision-making process. Includes all members of those who play any of the 5 roles in the decision making process (users, influencers, buyers, deciders, gatekeepers [control flow of info to others]). Business marketers must learn who participates in each decision, each participant's influence, and what criteria each department uses (marketing challenge, varies with organizations)
61. Campbell soup uses Big Data and analytics insights to do a "Deeper Dive" and read the consumer minds. What did they learn and how did it help their business?
Campbell found that when customers approached the shelves that contained the sea of red and white cans of Campbell's soup, emotions were not provoked. They found that all the different varieties blended together making for an overwhelming experience and causing consumers to spend less time in the isle. From this information, they changed their packaging to encourage browsing and bring about warm emotions -- since making label changes sales have gone up 2%. Campbell also took a deeper dive by going into consumers homes and spending time observing them in their natural environments. By doing this, researchers were able to unlock consumer insights that even consumers themselves were not aware of. They then developed six distinct consumer segments and fully equipped kitchens for each in order to discover and monitor trends of their wide target market
81. The "Rate of Product Adoption" varies from person to person. Why is that and where do you usually profile? Name the five stages or types of adopters.
Changes because people vary greatly in readiness to try new products, and each group has different values. Innovators (venturesome), early adopters (guided by respect), early mainstream (deliberate), late mainstream (skeptical), and lagging adopters (tradition bound).
78. Ritz Crackers are an iconic brand. How did they conduct research and what did they learn about the consumer buying habits that helped them launch Ritz chips.
Chips tended to be more of a summer product bought by younger people. Nevertheless, Ritz customers liked the buttery-ness of Ritz crackers. They also found that the word "toasted" was more appealing to customers than "baked". Put chips in a bag as opposed to box.
16. When might a business desire fewer customers over more customers in developing their marketing plans.
Companies can aim high in building customer relationships because it is 5x cheaper to keep an old customer than acquire a new one. Companies want to "own" customers for life, and earn a greater share of their purchases. 'True friends' are profitable and loyal, and the firm wants to make continuous investments to delight these customers and engage, nurture, and retain them and turn them into true believers (those who come back regularly and tell others about their experiences)
37. What are the changes seen for marketing because of "Environmentalism, sustainability and social responsibility" as reflected in their branding and product development?
Companies have realized that what is good for customer well being and the planet can also be good for business. More efficient operations and less wasteful products are food for all, therefore companies are trending towards this
43. "Customer Insights" are achieved through market research, touchpoint analysis, primary and secondary collection and competitive intelligence? Define how each are conducted and the value of each method.
Competitive Intelligence: the systematic monitoring, collection, and analysis of publicly available information about consumers, competitors, and developments in the marketplace. The goal is to improve strategic decision making by understanding the consumer environment, assessing and tracking competitors' actions, and providing early warnings of opportunities and threats. This can be done by observing consumers firsthand, quizzing employees, online research. Etc. Provides value because good marketing intelligence can help marketers gain insights into how consumers talk about and engage with their brands, as well as gain early insights into competitor moves and strategies to prepare quick responses. Marketing Research: the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization. Done through formal studies that provide customer and market insights for specific marketing situations and decisions; sometimes large companies have their own research departments or other times firms will simply purchase data from outside the firm to aid in decision making. Involves 4 steps: Defining the problem and research objectives, developing the research plan for collecting information, implementing the research plan by collecting and analyzing the data, and finally interpreting and reporting the findings. Provides value because it gives marketers insight customer motivations, purchase behavior, and satisfaction, which helps in assessing market potential or market share or measuring the effectiveness of pricing, product, distribution, and promotion activities. Primary and secondary collection: Secondary data is information that already exists somewhere (was collected for another purpose) while primary data is collected for the specific purpose at hand. Secondary data can usually be obtained more quickly and at a lower cost than primary data -- it can be bought from other companies, searched for on commercial online databases, or discovered using internet search engines-- but researchers can rarely obtain all they need from secondary sources. In most cases, the company must also collect primary data through observational research, ethnographic research, survey research, experimental research, and interviewing. Touch point analysis: touch points include every contact between a customer and a company (customer purchases, salesforce contacts, service and support calls, web and social media site visits, satisfaction surveys, credit and payment interactions, and market research studies). Touch point analysis data is usually scattered widely across the organization or buried deep in separate company databases, so many companies turn to customer relationship management (CRM) to manage customer touchpoint analysis in a way that maximizes customer loyalty and develop deeper customer relationships.
112. Companies and Brand Managers look for competitive advantage through a "differentiation" strategy and careful product positioning. Give an example of how they might implement this type of strategy and development of their product's image/ essence.
Competitive advantage: an advantage over competitors gained by offering greater customer value either by having lower prices or providing more benefits that justify higher prices. Brand positioning must serve the needs and preferences of well-defined target markets. Example: starbucks targets more upscale professionals with more high-brow positioning, succeeding by creating the right value proposition for its unique mix of customers. 3 parts: identifying a set of differentiating competitive advantages, choosing right competitive advantages, and selecting an overall positioning strategy
109. Niche or concentrated marketing has great advantages. What is the good and bads consequences of picking it as your product strategy.
Concentrated (niche) marketing: a market-coverage strategy in which a firm goes after a large share of one or a few segments or niches. Good- strong market position, more effective and efficient marketing, can let smaller companies get a foothold against larger ones. Bad- higher than normal risks, suffering if segments turns sour, larger competitors can enter with more resources.
12. The new trend of "customer-generated marketing" has had a big impact on companies marketing plans and messaging. What is it?
Consumer generated marketing: brand exchanges created by consumers themselves- both invited and uninvited- by which consumers are playing an increasing role in shaping their own brand experience and those of other consumers. Some companies ask consumers for new product and service ideas, invites consumers to play a role in ad shaping and brand content. Consumer input can be used to generate buzz but can be costly and hard to control, but consumers still play a growing role in shaping their own and other consumers' behavior.
13. "Customer Lifetime Value" and "Customer Equity" are two vital concepts each company needs to understand. What implications do they have for building marketing plans and strategy?
Customer lifetime value: the value of the entire stream of purchases a customer makes over a lifetime of patronage, implications= keeping customers loyal (cheaper to keep old customers) but can be costly to lose them. Customer equity is the total combined customer lifetime values of all the company's customers, implications= indicator of firm's performance, and is a measure of future value of company's customer base.
99. How should Marketing Departments and Public Relations' handle "crisis" situations?
Departments have to be proactive to prevent further damage, must put out a message and stick to it. Take responsibility and protect the brand
59. McDonald's Test Kitchen at Hamburger U developed many ideas for new products. What went wrong in their introduction with "Arch Deluxe" product line launch and what are the implications to market research?
Despite doing everything right and conducting intense market research and testing, the Arch Deluxe failed because it was an upscale burger, but people did not go to McD's for an upscale burger. This product did not appeal to their customers. This shows that market research can sometimes be wrong.
28. Michael Porter described three basic forms of competing - Cost, Differentiation and Niche? What are each strategy and what are the advantages and disadvantages of each?
Differentiation: actually differentiating the market offering to create superior customer value; identifies attributes that are important to consumer, and uniquely positions itself to meet those needs, this is able to charge a higher premium Requires research, innovation, the ability to deliver high quality products or services, and high quality and effective sales/marketing Risk of competitors also developing new products Cost Leadership: low cost producer in comparison to competitors Two ways of achieving cost leadership 1. Increasing profit while reducing cost and still charging industry average profit 2. Increasing market share by lowering prices, but still making profit because you lowered costs Disadvantage: sources of cost reduction are not unique and other competitors can copy Niche (Focus): choosing a narrow consumer scope within an industry and marketing specifically to that market By understanding the dynamics of the unique chosen market, companies can pursue this strategy by offering uniquely low prices or well specified products (Either cost or differentiation focus) Advantages include getting to know specific consumer segment very well, thus developing a strong consumer base Disadvantage: risk of losing to competitors that serve a broader market if you do not add something extra by serving only a niche market
91. Business to Business Social Media and Buying Process is rapidly changing. How is it being affected by the Internet and the Connected-world?
E-procurement: purchasing thought electronic connections between buyers, has grown rapidly. Can do reverse auctions, use company buying sites, or extranet links. This is more efficient, time saving, cost saving, less paperwork. B2B digital and social media marketing: using digital and social media marketing approaches to engage business customers and manage customer relationships anywhere and time. New space for engaging customers. Can create greater customer engagement and interaction.
20. ESPN is a part of the Disney Portfolio. How does it affect their business and their portfolio?
ESPN is more important to its parent company than their parks and effectively ties its entities together with the mission of serving sports enthusiasts wherever sports are present. Being a part of Disney effects ESPN's business because of its role in allowing Disney to compete with other tech companies by offering more content. For example, Disney's recent acquisition of 21st Century Fox would give ESPN more access to regional sports, increasing its sports coverage. Being a part of Disney will allow ESPN to reach even more users over a wider network.
24. Before one can develop a good Marketing Strategy, it is important to perform a "Situational Analysis. What are the key components in a SA?
Evaluation of the company's strengths, weaknesses, opportunities, and threats
26. What is a SWOT analysis and what can it reveal?
Evaluation of the company's strengths, weaknesses, opportunities, and threats Can reveal opportunities and identify threats as well as give insight to how to best use each strategic business unit
62. Explain the difference between Exploratory, Descriptive and Casual Research.
Exploratory research: marketing research to gather preliminary information that will help define problems and suggest hypotheses Descriptive research: marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers. Casual research: marketing research to test hypotheses about cause and effect relationships Managers start with exploratory and follow with descriptive or casual research
73. Briefly describe Maslow's Hierarchy of Needs in relation to Consumer Marketing Insight.
From bottom to top: physiological needs, safety needs, social needs, esteem needs, and self-actualization needs. Dictates how consumers spend their time, helps analyze consumer psyche, and helps marketers realize how consumers satisfy their needs
92. The General Electric Model is leading edge in working with their B2B clients. What kind of marketing programs do they have and how is it helping them compete?
GE tells a 'brand story' of big, bad machines and the innovative technologies that change the world. Uses social media to tell stories of innovation, technology, and big data to let customers, employees, and shareholders know what GE thinks of the world. An array of digital content, #sixsecondscience campaign on vine, publishing innovative daily on-line B2B blog, and use artful video content. Acts less like an advertiser and more like a brand content publisher.
34. What is "generational marketing" and what are the good points and bad points of this approach?
Generational marketing- creating separate products and marketing programs for each generation. Bad points- turning off one generation by appealing to another, ignoring that generations span many socioeconomic levels and a lot of time. Good points- can be more effective by splitting generations into smaller groups, like by age, lifestyle, or common values.
103. Four examples of Segmentation are Geographic, Demographic, Psychographic and Behavioral?
Geographic: take region of the world/country and assume they will be attracted for a sole reason of geography (target and smaller urban stores) Demographic: dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation. example= P&G using gender segmentation with Secret brand targeting women Psychographic: dividing a market into different segments based on lifestyle or personality characteristics. Example: Panera catering to people who want food that promotes healthy, clean living Behavioral: dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product. Example: Mountain Dew AM with OJ to target people who drink orange juice in the morning
68. MOM as Brand Ambassador's programs have been very successful. What is the good news and bad news for a company to use this approach in their marketing?
Good news- heavy social media users and shoppers, 55% of moms base their purchasing decisions off of personal stories, so companies use their mom-to-mom influence. Bad news- some companies don't tell the moms exactly what to post, moms can speak out against a brand and are very opinionated online
117. McDonald's does Segment and Target Marketing by dividing their customers into what kind of groupings and segments. Would you do it their way?
Groupings and segments: different kinds of demographic groups (young adults, African American moms, young latinos, with happy meals and SW salads) Segment members look for what compels his or her segments. pass this information to a creative team
77. Many products are considered "Habitual- Buys". Compare that to a "Variety-seeking buying behavior". what are the characteristics of each?
Habitual buys- occurs under conditions of low consumer involvement and little significant brand difference (table salt) Variety-seeking behavior- consumers buying in situations characterized by lower consumer involvement but significant perceived brand differences (cookies, etc., try to dominate shelf space/ sampling)
63. Harley Davidson Motorcycles are an "Iconic" Brand. What are the characteristics of their consumer, their behavior and the marketplace? How does Harley "communicate" to target audience?
Harley Davidson consumers are older, more affluent, and better educated. Average customer is 50 year old male making $87,000. They are fiercely loyal, and share a deep help attraction to the brand. Harley appeals with freedom, independence, power, and authenticity. Behavior is with strong emotions and motivations to renew consumer spirit and announce freedom and independence. They "communicate" The Harley Owners Group, upgrading showrooms and sales approaches, and conducting surveys, focus groups, and interpretive studies. They sell the experience.
88. How do Business Buyer Behaviors vary in their decision process and decision criteria?
Heavily influenced by factors in the economic environment -- primary demand, economic outlook, and cost of money SUpply of key materials Technological, political, and competitive developments in the environment Culture and custom
39. Understanding Technological changes is vital for Marketers. Why and give an example?
Improved technology allows for better, more precise marketing Ex: salesforce created CRM technology to better target consumers based on data
51. In Non-Probability sampling, what is the difference between Convenience, Judgment or quota samples?
In convenience sampling, the researcher selects the easiest population members from which to obtain information. In judgement sampling, the researcher uses his or her judgement to select population members who are good prospects for accurate information. In quota sampling, the researcher finds and interviews a prescribed number of people in each of several categories.
15. The term "Value" is relevant to different people but it makes for a challenge for a marketing team. Why is it key to understand the many different types of value in product selection?
In marketing there is customer-perceived value (customer's evaluation of the difference between all benefits and costs of a marketing offer relative to competitors) and customer lifetime value (value of entire stream of purchases). It is key that to capture value from customers to create profits and customer equity, you need to 1. Create satisfied, loyal customers, 2. Capture customer lifetime value and 3. Increase share of market and share of customer. You first create value for customers and then caputre value from customers in return
50. In Probability Sampling, what is the difference between Random, Stratified or Cluster Sampling?
In random sampling, every member of the population has a known and equal chance of selection. In stratified random sampling, the population is divided into mutually exclusive groups (ex: age groups), and random samples are drawn from each group. In Cluster Sampling, the population is divided into mutually exclusive groups and the researcher draws a sample of the groups to interview.
11. Why was the ALS Ice bucket challenge so successful?
It used "real time marketing" by aligning marketing content with real-world events and trending topics. The challenge allowed users to challenge one another and caused a social media trend attracting celebrity attention, but doable by any person. It turned into an annual social media campaign with 17 million videos and engages and excites participants.
70. Lifestyle might be the most accurate way to study and identify groups. Why is it becoming so very important when you study a consumer behavior market?
Lifestyle- a person's pattern of living as expressed in his or her activities, interests, and opinions. Important because consumers don't just buy products, but they buy the values and lifestyles that those products represent. Marketers look for lifestyle segments with needs that can be served through special products/ marketing approaches
42. What different groups or ideas are present in a "Marketing Information Systems"?
MIS: People and procedures that are dedicated to assessing information needs, developing the needed information, and helping decision makers use the information to generate and validate actionable customer and market insights Includes marketing managers, internal and external partners, and those who need marketing information and insights A good MIS balances the information users would like to have against what they need and what is really feasible to offer
94. Dole Foods conducts a rigorous Procurement Process and requires their suppliers to perform many tasks to qualify as a source for food. Why is that so important for their business and how do they make sure they keep improving as a company?
Maintains product quality--- quality assurance, upholds brand image of quality Makes suppliers meet rigorous standards and always have at least 3 at a time in case there are issues in the supply chain
102."Targeting" your audience helps a company in many ways. How is it necessary for a Marketing Strategy to have a statement and focus on a target?
Market targeting= evaluating each market segment's attractiveness and selecting one or more segments to serve. Once you've selected the customers to serve (segmentation and targeting) you can then decide on a value proposition (differentiation and positioning) to create value for target customers. Through marketing segmentation, companies can divide large diverse markets into smaller segments that can be reached more efficiently and effectively with products that match their unique needs.
6. Provide a definition of key terms "a market" and "Marketing Management".
Market: the set of all actual and potential buyers of a product or service Marketing Management: the art and science of choosing target markets and building profitable relationships with them The marketing managers aim is to engage, keep, and grow target customers by creating, delivering, and communicating superior customer strategy
56. What is "Marketing Analytics" and why is it so important in developing a marketing strategy?
Marketing analytics consists of the analysis tools, technologies, and process by which marketers dig out meaningful patterns in big data to gain customer insights and gauge marketing performance Marketing analytics are applied to big data to gain insights about consumer wants and needs, therefore they can better develop marketing strategies that are better catered toward their target markets
23. Define "Marketing Mix" and why is it important to a strategist to understand?
Marketing mix: the set of tactical marketing tools -- product, price, place, and promotion -- that the firm blends to produce the response it wants in the target market It is important for a strategist to understand the marketing mix in order to blend the different elements into an integrated marketing program designed to achieve the company's marketing objectives by engaging consumers and delivering value to them
4. How does "marketing myopia" affect a sellers' ability to deliver value to their customers?
Marketing myopia=mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products. When sellers suffer from marketing myopia, they focus only on existing wants and lose sight of underlying consumer needs. They forget that a product is only a tool to solve a consumer problem. It is important to look beyond the product and create brand experiences.
101.What is "Market Segmentation" and why is it an important first step?
Marketing segmentation= dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes. First step= selecting customers it will serve so that it can develop profiles and then decide on value propositions.
1. What is marketing?
Marketing= the process by which companies engage customers build strong customer relationships, and create customer value to capture value from customers in return. 2-part goal: 1. attract new customers by promising superior value and 2. keep and grow current customers by delivering value and satisfaction
107. Measurable, Accessible, Substantial, Differentiable and Actionable are the five requirements for a segmentation exercise to be successful. Describe each characteristic features.
Measurable: the size, purchasing power, and profiles of the segments can be measured Accessible: the market segments can be effectively reached and served Substantial: market segments are large or profitable enough to serve, segments should be largest homogenous group possible Differentiable: segments are conceptually distinguishable and respond differently to different marketing mix elements and programs. Actionable: effective programs can be designed to attract and serve the segments
33. Why is it important to study the Micro and the Macro environment? Use FITBIT as an example.
Microenvironment- actors close to the company that affect its ability to serve its customers- the company, suppliers, marketing intermediaries, customer markers, competitors, and publics. Job is to create customer value and satisfaction. For FITBIT, it focuses on the competitors by providing a personal, wearable health and fitness tracker that was not offered in the market, and focused on consumers by creating effective gear that establishes a relationship with the consumer by allowing them to achieve their health and fitness goals. Macro environment- the larger societal forces that affect the micro- demographic, economic, natural, technological, political, and cultural forces. FitBit appeals to the changing age structure of the population by gearing towards health-conscious millennials, and is focusing on the cultural shift of people wanting to better themselves.
110. Because of change in technology and access, how has "micromarketing" and "local marketing" become possible and more common? Is "Individual" or "hypertargeting" possible and good?
Micromarketing: tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments (includes local marketing), advances in technology have given rise to high-tech versions of location based marketing, companies can track consumer whereabouts closely. Individual marketing: tailoring products and marketing programs to the needs and preferences of individual customers. New technologies such as robotic production, detailed databases, and flexible manufacturing allow for mass customization.
31. Facebook founder Mark Zuckerberg often gives away many of his software products that work with his software. What is the strategy behind that and what does he hope to get out of it?
Mission is to connect people on his network Giving away stuff improves some people's ability to connect and is good press Makes people want to connect
97. How has the "Great Recession" affected marketing and what changes have come about?
More sensible consumer spending, "value" has become the watchword
82. GoldieBlox faces many challenges with consumer perception of what toys should be sold to whom. Will they have any effect in STEM education for females if they are successful?
Most experts agree that toys for young girls do little to encourage an interest in STEM. Goldiebox- line of construction sets. Debate if this has actually been helpful, argument of still selling girls short because princess culture/ pinkification is still used to sell STEM toys. Even if the goal is not achieved, it has taken the toy industry by storm and tries to put an end to stereotypes generated by the toy industry
32. Nike's "Risk Everything" campaign was very successful. What was their strategy and formula for success?
Nike's Risk Everything campaign featured Cristiano Ronaldo and focused on the pressure superstar players face when playing for their country in the World Cup, Wayne Rooney facing skepticism, and Neymar trying to live up to Brazil's football fanaticism. Ad ends with all three "Pressure shapes Legends" Nike's strategy was making people feel a certain way -- soccer unites us all and at the end of the day, everyone is just a kid playing out on the local field with their friends.
83. "Emotional Branding" to Moms had several key attributes identified to make an advertisement successful. What were some examples?
Nirvana mom - everything is perfect Sacrifice - everything you've done for your kid Commiseration - being a mom is tough, the dad is stupid
47. What are Observational research, ethnographic research and experimental type research?
Observational research: gathering primary data by observing relevant people, actions, and situations Ethnographic research: a form of observational research that involves sending trained observers to watch and interact with consumers in their natural environments Experimental research: gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses
10. In customer-engagement marketing, why is there a shift of "marketing by intrusion" to "marketing by attraction".
Old marketing was mass marketing focusing on broad segments of consumers at arm's length and marketing brands to consumers. Marketing by attraction means creating market offerings and messages that engage consumers rather than interrupting, like using social media in hopes that advertisements will go viral.
53. Questionnaires can be misleading when using open-ended or closed ended questions. Give an example.
P 115- closed-ended: include all possible answers and subjects make choices among them (MC or scale questions). Open-ended: allow responders to answer in their own words, useful in exploratory research. Example: asking which you prefer out of two things, assumes customers only make the choice between the two, focusing on certain brands, etc.
93. Proctor and Gamble are Strong Advocates of treating their Customers like Partners. What are they doing to demonstrate that and how do they make sure their Clients are successful?
P&G's CBD (customer business development) structure makes sure that everyone is taken care of. treat customers as "strategic partners" with "win win" relationships because to grow P&G, it must grow the business of the retailers that sell its product. They assign a full CBD team to each large customer account, with logistics, information systems, operations, product development, etc. customer business development. 4 objectives of aligning strategy, creating demand, optimizing supply, and enabling the organization.
74. Is perception more important than reality in marketing? What makes a "Complex buying" process different?
Perceptions are more important than reality. Complex buying behavior defines buying scenarios that are characterized by high levels of involvement. This involvement stems from 3 perceptual processes 1. Selective distortion (interpreting info to support what you already believe) 2. Selective retention (remember good points about brands they like and bad points about ones they don't) and 3. Selective attention (people screen out most of the info to which they are exposed)
71. Marketing teams often add someone with Psychology Expertise in order to understand the consumer. Why is that role important and what do they study?
Person's buying factors are affected by motivation, values, perception, learning, and beliefs and attitudes. Psychologists have developed theories of human motivation (Freud and Maslow) and suggest that buying behaviors are influenced by unconscious motives. People form perceptions from stimuli because of selective distortion, retention, and attention. Companies can also try to fit products with existing attitudes of consumers.
114. What is a "Positioning Statement" and why is it important?
Positioning statement: a statement that summarizes company or brand positioning using this form: to (target segment and need) our (brand) is (concept) that (point of difference). Important to communicate desired position to target customers.
18. What is the difference between a Product-Oriented and a Marketing Oriented description of a company?
Product oriented descriptions of a company are worded solely in product or technology term, while marketing oriented descriptions are defined in terms of satisfying basic consumer needs.
111. What is a "Product Positioning" map and what does it tell you about how a company wants to work with their target market?
Product position: the way a product is defined by consumers on important attributes- the place it occupies in consumers' minds relative to competing products. Companies must plan positions that will give their products the greatest advantage in selected target markets.
8. What is the difference between the five concepts of "Production, Product, Selling, Marketing and Societal Marketing" concept?
Production concept: the idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency Product concept: the idea that consumers will favor products that offer the most quality, performance, and features; therefore, the organization should devote its energy to making continuous product improvements Selling concept: the idea that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effect Marketing concept: a philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do Societal marketing concept: the idea that a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long run interests, and society's long-run interests
14. What is "real-time" marketing and give an example of how advertisers are practicing it
Real time marketing means aligning market content with real time events and trending topics through timely tweets, videos, blog entries, and social media posts. Example: when the lights shut off during the super bowl, Oreo tweeted "power out? No problem. You can still dunk in the dark: which made Oreo a daily part of consumer discourse
76. Why does "post-purchase dissonance" and "cognitive" dissonance occur to many buyers?
Responses are due to the relationship between the customer's expectations and the perceived performance. PPD arises when a consumer must make a tough choice between 2 appealing alternatives. Cognitive dissonance is buyer discomfort caused by post purchase conflict. Arises from when people must make a difficult decision
36. As the economy shifts, why is income distribution important to understand as income levels?
Rich have grown richer, middle class has shrunk, poor have remained poorer. Has created a tiered market which means companies can target the affluent, those of modest means, etc. some companies cover the span of these ranges, like ford offering both luxury and very affordable cars.
58. Sara Lee used Market Research to help them develop a new kind of bread to replace their leading white bread product. What did they learn from marketing research and how change their product?
Sara Lee had a strong consumer base for "white" bread (color, texture, name), but people were interested in getting more whole grains because of the health trends (low carb craze). Using market research, they made a new bread that had a the qualities of white bread, but contained some wheat/whole grain. Advertised as "whole grain white bread"
84. How does the IBM Sales Model for Business to Business relationship selling work? What are the Pros and cons of this business model? What is "Solutions Selling"?
Sells complex big-ticket purchases to a smaller set of bugger buyers. Now partners with customers to help solve complex information and analytics problems (bear-hugging= relearning about customer problems). Involves high-level customer solutions mission as well as boots on the ground action. Pros- allows IBM to continually meet consumer needs, more likely that consumers purchase complex mix of hardware/ services. Cons- required R&D and constant evolvement, fundamental transformation of the business. Solutions selling: rather than offering just a product, focusing on customer needs and problems and address problems with appropriate offerings
72. "Shinola" Products is a good example of a company understanding their consumer. What do they do that makes them close to their customer and create a high demand in their target group?
Shinola is headquartered in Detroit, a once-iconic symbol of American manufacturing. They are sold in high-end department stores, and its name and Detroit roots are incongruous with the luxury lines of trendy products that it sells. They are dedicated to quality, craft, and creating world class jobs, and they commit to High quality american products with american labor.
66. How is "Social Class" measured in the United States? Is it an important distinction?
Social class is a set of relatively permanent and ordered divisions in society whose members share similar values, interests, and behaviors. Scientists have divided America into 7 levels. The line between classes in the US is not fixed, and it is determined by factors like income, education, and other variables. People within a social class exhibit specific buying behaviors which can aid in branding for travel, clothing, automobiles, etc.
45. What is the advantage of a Social Media Center?
Social media centers allow companies to respond quickly to any social media concerns or issues; provides live monitoring of the firm's social media activity and gives the company easier access to customer opinions.
118. Describe the different segmentation strategies in either the beverage market (Coke v Pepsi) or retail store business (WalMart, Target, Sears, JCPenney), or Autos (figure 7.3) and how they chose to compete? Why does segmenting establish a brand and image with consumers and customers, and what is the advantage or disadvantage?
Some auto companies segment based on benefit (luxury and performance). in the beverage market, companies use loyalty status segmentation to target loyal customers and make them partners in building the brand. some companies also target teens thought universal teen themes, like COke with Spotify. segmenting establishes an image of the company's personality, such as when the company segments the market based on lifestyle. Companies like Nike that target active customers associate their brand with a lifestyle. advatage= effectively targeting a profitable segment, disadvantage is losing customers in other segments or depending too heavily on one
87. The three types of buying situations are straight rebuy, modified rebuy and new task buy. What difference in approach, costs and structure does each have?
Straight rebuy: a business buying situation in which the buyer routinely reorders something without modification ('in' suppliers maintain engagement and quality, 'out' suppliers try to find new ways to add value), done on a routine basis. Modified rebuy: buyer wants to modify product specifications, prices, terms, or suppliers. 'in' suppliers can feel pressured to protect accounts, 'out' suppliers can see situation as a chance to make a better offer and gain new business. New task: buyer purchases a product or service for the first time. Greater cost/risk= more participants. Greatest challenge/ opportunity for a marketer. Buyer makes most decisions here (least in straight).
38. Patagonia used the slogan "Conscious Consumption" and "Don't Buy this Jacket? What was their strategy?
Strategy was to commit to idea of quality rather than consumption, making products that are durable with timeless designs. Counterintuitive but actually increased sales. Such a message can only work if it's real, and patagonia cares about more than making money: what's good for the planet and creating customer interest and involvement in Common Threads Initiative.
65. How does "subculture" play a role in understanding the Consumer? What is a Total Marketing Strategy?
Subcultures are groups of people with shared value systems based on common life experiences and situations. They include nationalities, religions, racial groups, and geographic regions. Marketers design products and programs tailored to their needs, including Total Market strategy: integrating ethnic themes and cross-cultural perspectives with a brand's mainstream marketing, appealing to consumer similarities across subcultural segments rather than differences (this goes beyond targeting Hispanics, African Americans, Asian Americans, etc. specifically). For example, commercials with interracial couples
89. International Marketing Manners are important to practice and to understand. Why?
Success in international business has a lot to do with knowing its territory/ people. To compete successfully in global markets/ deal with clients in their home country, need to help managers understand needs, customs, and cultures of international business buyers. Must adapt to changes in cultures across countries to be successful.
98. What is a "Supplier Development" program like Cargill and McDonald's practices and why is it important tool to improve your business process.
Systematic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials for use in making products or reselling them to others Important in preventing low inventory
69. Why is it important to recognize the "Family" and current changes if you are in marketing?
The family is the most important consumer buying organization in society. Changing because wife used to be the main purchases or household goods, but now 71% of mothers work outside the home. 41% of men are now primary grocery shoppers, advertisers are targeting ads to these shifting roles
100. Dunkin donuts refreshed their Brand and Marketing Strategy recently. What does the Brand Essence and slogan "Noting too fancy - just meeting the everyday, all-day needs of the Dunkin tribe" say about the company.
Their company targets the 'Dunkin Tribe', not the Starbucks coffee snob. They have a more low-brow, 'everyman' kind of appeal, and their customers are more middle-income, blue- and white collar workers across all age, race, and income demographics, they build their positioning around serving simple fare at reasonable prices to working class customers. Dunkin has been a top brand for meeting and exceeding customer expectations with respect to taste, quality, and customer service.
25. How were DuckDuckGo strategist going to take on the big guys like Google and Facebook? Why did they pick their strategy?
Their strategy was to focus on a specific market niche by providing its users what Google and Facebook can't: privacy. It then energizes its unique niche with brand personality and user community. They picked their strategy to reach this unique niche by being less invasive and creepy, for people concerned about privacy. It focuses only on search.
9. How does Chick-Fil-A distinguish themselves from other QSR's?
They focus on customers by providing the best possible experience for consumers and focus on "getting better before getting bigger". They also stick to a limited menu and try to have a positive influence on everyone that comes in contact with a chick fil a and tell employees to "go the second mile".
60. Big data is used effectively by Target to analyze their customers' needs and preferences. What mistake did they make in divulging their findings to a young shopper's family? What does this say about research?
They made the mistake of invading consumer privacy by tracking purchasing patterns across 25 product categories and used the score to send consumers coupons to baby-related items. Consumers felt "creeped out" that target knew about pregnancies before they told close families or friends, and wondered what else Target might be tracking and profiling. This shows that research by marketers must be careful to not cross the privacy line and cause unease with customers. Specifically, Target offered coupons for pregnancy items to a young girl and it turned out she was pregnant. They knew the girl was pregnant before her family.
105. Mountain Dew has chosen to focus on a specific segment of the market with their ads and promotions. What segment have they chosen and how have they implemented it.
They target "Dew Nation"- 20% of buyers who make up 70% of total volume. They fuel customer loyalty by actively engaging brand supergans and creating a close brand community, makes them partners in building the brand. DEWmocracy lets customers pick flavors, design cans, pick advertisements, etc.
40. "Social Media has gotten nasty". Give an example. Is this good or bad? Why? Should there be restrictions?
This is good and bad because it provides accountability for the firm, but can go too far and be somewhat unfair for the company Ex: bad Yelp reviews, customer receives a damaged computer from FedEx, posts video of delivery man throwing the monitor
55. Customer Relationship Management relies on good measurement of "Touchpoints". What is a Touchpoint Analysis and what does one discover from a TPA?
Touch point analysis: touch points include every contact between a customer and a company (customer purchases, salesforce contacts, service and support calls, web and social media site visits, satisfaction surveys, credit and payment interactions, and market research studies). Touch point analysis data is usually scattered widely across the organization or buried deep in separate company databases, so many companies turn to customer relationship management (CRM) to manage customer touchpoint analysis in a way that maximizes customer loyalty and develop deeper customer relationships.
108. What is an undifferentiated and differentiated marketing strategy?
Undifferentiated: a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. Differentiated: a market-coverage strategy in which a firm targets several market segments and designs separate offers for each.
54. Ordering and wording can skew a questionnaire. How does it do that?
Use simple, direct, and unbiased wording. Place questions in a logical order, with the first drawing interest and the difficult or personal questions being placed at the end to avoid defensiveness
57. Netflix uses analytics to help improve customer satisfaction. What do they do?
Uses insights from marketing analytics to fuel recommendations to subscribers, decide what programming to offer, and develop original content in order to better serve consumers. Netflix tracks customer searches, watches, and behaviors, and so as they watch more and more, Netflix is better able to recommend shows and movies based on their past viewing behavior.
19. BCG Consulting uses a "Portfolio Analysis" Methodology for their customers showing "Growth-Share Matrix? How does it work and what can you communicate with it?
Using this approach, a company classifies all its SBUs according to the growth-share matrix, which is a portfolio planning method that evaluates a company's SBU's in terms of market growth rate and relative market share. On the vertical axis of this matrix, market growth rate measures market attractiveness. On the horizontal axis of this matrix, relative market share measures a company's strength in the market. The martrix defines four types of SBUs: Stars: high growth, high share Cash cows: low growth, high share Question marks: high growth, low share Dogs: low growth, low share When a company can classify its SBUs, it can then determine what role it will play in the future and from there pursue one of four strategies: Invest more in the business unit to build its share Invest just enough to hold the SBU's share at the current level Harvest the SBU by milking its short term cash flow regardless of the long term effect Divest the SBU by selling it or phasing it out and using the resources elsewhere
113. Aldi's has a very precise Brand Differentiation for their stores as they try to reach their target market. What is it and how have they implemented it.
Value proposition- Less for much less. Basic assortment of high quality everyday items with no frills. Target market= low cost, simple, high quality shoppers. Implement with carrying few brands, customers bring own bags, double guarantee on all items.
115. A company's "Value proposition" is written to communicate Brand image to the "intended" target market. What are the key elements of a value prop?
Value proposition: the full positioning of a brand- the full mix of benefits on which it is positioned. Key elements- price and benefits. More for more, more for the same, the same for less, less for much less, more for less.
7. How does a "value proposition" help the working relationship in a marketing exchange?
Value proposition: the set of benefits or values it promises to deliver to consumers to satisfy customer needs Value propositions differentiate brands from one another. Companies with strong value propositions give them the greatest advantage in their target markets
67. How has WOM influence risen over the past several years? What is an "Opinion Leader"?
Word-of mouth influence: the impact of the personal words and recommendations of trusted friends, family, associates, and other consumers on buying behavior. Has evolved to be more centralized around trusted family and friends rather than salespeople or advertising. 72% now trust online reviews Opinion leader: a person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others. Also called influentials or leading adopters
35. Does it make a difference if there has been a "geographic shift" in the country for marketing brand managers to consider in their marketing planning?
Yes, west and south have grown, midwest and northeast have shrunk. Important because people in different regions purchase differently. People also moving from rural to metro areas, or 'micropolitans', which causes a shift in where people work and what they need.
80. Many things affect a "Buying Decision". "Attitude of Others" and "Unexpected Situational factors" occur that might alter your choices. What are they and how can they have you change?
buying decision: a buyer's decision about which brand to purchase. "Attitude of others" means that if someone important to you thinks you should buy a less expensive product, then the chances of you buying a more expensive product are reduced. "Unexpected situational factors"- means consumer may form a purchase intention based on factors such as expected income, expected price, and expected product beliefs.
5. Describe elements of Buffalo Wild Wings marketing strategy. What is the key to their success?
focuses on the whole experience rather than just the food they offer -- their company is designed to provide the ultimate sports experience to all fans of all sports. Restaurants = characteristics of stadiums, allowing customers to feel as though they are not at a dingy old sports bar and instead getting the full experience. TVs line the walls, exciting environment. B-dub is enticing and inviting for people of all ages, as it creates a friendly family environment in addition to a competitive, high adrenaline environment for the most dedicated of sports fans. The key to B-Dub's success is focusing on customer experience. There is always some sort of competition or promotion or challenge to keep customers engaged and constantly purchasing beer and wings throughout the game watching experience. Also, B-Dub does not rush their guests as many restaurants do. The "Guest Experience Captain", caters to all customers' needs throughout their whole experience, making game watching, mingling with friends, and enjoying beer and wings as enjoyable and carefree as possible.
116. Harley Davidson has a very specific target market and segment that they have worked with for the past 60 years. What challenges are they having as their demographic and customers change and age?
in recent years the company has been trying to go beyond the current market of older caucasian makes, crafting products and programs to attract "out reach customers". changed their bikes to appeal to urban areas, be more leaner, and have done surveys and focus groups to plumb the depths of consumers' feelings about harley
41. What was the psychology that Patagonia used in their campaign of "Don't Buy this Jacket"? Do you think it was effective?
psychology- standing on its founding principles, communicating the idea of conscious capitalism. appeals to people's desire to be a part of something solutions-based. yes effective.