Haha 1

What is product positioning?

After a firm decides which segment to target a product's position is the location that a brand occupies relative to competitors in the mid of consumers on a perceptual map; product positioning places a brand int he mind of consumer so it aligns with people who are being targeted Concepts involved in product positioning: 1. Points of party: features or benefits deemed necessary by consumers for a brand to be viable entry into a product category; basic features a product needs to be a real competitor 2. Points of difference: brands features or benefits that differentiate a single product from competitors product's category; marketers focus on these differences

What are current trends in our demographics pertaining to generations?

Baby boomers are growing older; generation x (people before from 1965-76) are self-reliant, entrepreneurial, well-educated, and supportive of racial and ethnic diversity; Generation Y (1977-94): exert influence on sports, computers, video games, and cellphones population shifts: towards the west and the south; suburbs to exurbs (remote suburbs)

What are key technological sectors of the microenvironment?

Change in the technological environment is much faster and less predictable Three Screens: television, computers, and mobile phones because we look at them fro a large proportion of the day; spend more than 5 hours per day looking one or more of these screens; the introduction of the tablet has made a potential fourth screen "Multi-Screen behavior": use of multiple screes to consume media all at the same time; people consume an average of 7 hours of screen media everyday in a 5-hour period because look at more than one screen at once Stacking: using two or more screens for unrelated content Meshing: using two or more screens to consume related content

What is a customer value proposition?

Cluster of benefits that sn organization offers to consumers to satisfy their needs; Wal-Mart providing low prices, a wide variety of products, and convenient locations

What makes up the marketing environment?

Constraining: marketing environment constrains the decisions that marketers can make, which can either eliminate or necessitate specific decisions Multi-level: The marketing environment is complex with some broad and some narrow levels Characterized by change, markets must use what they know in the present to predict what markets will be like in the future

What are the different usages of time?

Contracted time: time you work or go to school; 40 hour work-week; Committed time: spent doing the things no one has to do to get paid; cleaning the house and mowing the lawn Personal time: devoted to personal maintenacnnce; eating, showering, shaving, and working out Free time: left over after we have time devoted to anything we wish

What is the social force of the macroenviroment?

Cultural factors: social force that incorporates the core set of values, bliefs, ideas, and attitudes that the members of a group learn and share Cultural factors that are important to marketers include materialism (tendency to value material possessions, we're more materialistic than less developed countries as they think it will make them happy), individualism in order to express themselves (recently there has ben a trend toward mass individualism or attempt by large companies to trat customers are individuals, future time oriented; youthfulness (Americans want to be young, look young ,and have healthy, active lifestyles( Best example of changing aMERICAN VALUES COME FROM THE political arena Economic forces: more volatile and less predictable; more difficult to forecast than trends in the demographic sector

What is customer value and why is it important?

Definition: the unique combination of benefits received by targeted buyers that include quality, price, convenience, on-time delivery, and both before sale and after-sale service Value can be thought of as the ratio of perceived benefits to price: Value = (Perceived Benefits / Cost) A product does not have to be cheap to have high value Value is synonymous with utility and satisfaction (measure of the value that the company is providing) Marketers create customer value through the process of exchange; trading things of value between a buyer and a seller so that each is btter off after the trade; key to discovering and stasying prospective customer s needs and wants

What is Market Orientation?

EVERYONE is worried about providing customer value; People in finance, operations, and human resources think in terms of generating value for customers; mindset

What is the feedback loop?

Feedback regarding the information search or problem recognition steps following consumption Feedback to information search: if individual has a bad experience individual would not choose that alternative int he future or more careful to develop a better set of alternatives the next time a decision must be made Feedback to problem recognition: could lead to recognition of another problem or recognize that the problem was framed incorrectly in the first place

What is consumerism?

Grassroots movement by individual consumers who act as watchdogs and take it upon themselves to get companies to engage in better business practices; Unsafe at Any Speed: a book written by Ralpha Nadar that is considered the foundation for the moment consumerism movement which documented how car manufacturers were reluctant to adopt enhanced safety features Media often uses "pump up" stories in order to get the public' attention to get more viewers

What is a customer profile?

Important for marketers; snapshot of what their average customers look like (example on p.49z); What makes up a customer profile: Demographic differences: sex, age, marital status, number of children Socioeconomic differences: income, education, occupatio, whether the household is a duel-earner household v. personally ownign a home Psychographics: activities, interest, and opinions of consumers; ideas about lifestyles

What is symbolic consumer behavior?

Indicates that products have meanings that go beyond they're basic functional aspects 1. What we wear: Wearing gator clothing to communicate their relationship with the school; "basking in elected glory: wear our sports teams clothing after a big win 2. What we drink: images associated allow us to drink 3. We are what we drive 4. Building, maintaining, and project a self-concept: we buy certain products to project our self-image 5. Hedonistic consumption: measures pleasurable experiences; life's gol is the pursuit of pleasure; scuba diving, jumping out of an airplane, expensive meals, dining int he dark to savor the the flor of food 6. Product enthusiasm (hobbies, collecting):

What are the different levels of involvement in a decision-making process?

Involvement is the personal, social, and economic significance of the purchase of the consumer Low involvement: leads to routine problem solving; decision-maker does not go through each step in the decision-making process ("compressed"); brand loyalty is featured or buying your favorite brand Moderate involvement: leads to limited problem solving; consumer has purchased a product many times before but there is a new product on the market "interrupts" the consumer's habitual routine; does some information search and some evaluation but does not go through each both the steps of the decision-making process High involvement: leads to extended problem solving; decision maker would go through each of the five steps of the decision-making process; purchasing a home or car

What is the nelson media research?

Largest market research firms in the world

How are firms able to modify the environment?

Lobbying and social media

What are ethical and legal activity?

Majority of marketing falls into this category; practicing marketing in such a way that everyone is better off after the transaction; setting fair prices and advertising fairly

What is unethical but legal activity?

Many business practices fall into this grey area; 1. Amazon strongarming publishung houses: causes publishers to reduce their prices 2. TJ Maxx: critized for its practice of setting reference prices with "compare at" price tags 3. Pull quotes: excerpt or quotation that has been pull out of an article use as a graphic element, usually in advertising

What is indexing?

Measures the preferences of one region relative to those of other regions; creation of an index number that can be used to compare a specific region with the national average for a characteristic; percentage who exhibit a given characteristic in a designated market area str divided by a paercentage of customers who exhibit a given characteristic times 100 If index is < 100; region is below national average vice versa for greater

What is the difference between a need and a want?

Need: occurs when a person is deprived of the basic necessities of life (food and water) Want: occurs when a person's knowledge , culture, and personality create a need Effective marketing tries to satisfy both needs and wants

What is the societal marketing concept?

Organizations should satisfy the needs of consumers in a way that provides for society's wellbeing; expensive soap that doesn't scratch services

What regulations are used to protect companies?

Patents protect the use of new and novel products and copyrights and copyrights protect literary, dramatic, music, or artistic work Difgital Millennium Copyright Act: enaced to improve copyright protection of digital products

What is an ultimate consume

People who use the goods and services purchased for a household

What is a marketing program?

Plan that integrates the marketing mix to provide a product, service, or idea to prospective customers; set of decisions that emcompasses the four Ps; this is a response to relationship marketing as it will tell organizations what a customer needs

What is the importance of big data?

Powerful tool for targeting products to specific people; use databases that aggregate information about many different characteristics such as voting histories, housing values, television viewing habits, and credit card usage;

What is the purchase decision process?

Problem solving process viewed from the standpoint of the consumer 1. Problem recognition: recognizing there is a problem that could be solved through the purchase of some good or service 2. Information search: gathering information about the purchase; internal information search refers to coming up with information from memory; external information search refers to gathering information outside one's own memory 3. Alternative evaluation: 4. Purchase 5. post -purchase cosnumption; consumes the product

What STP Marketing? :)

Process of identifying and serving different groups in the marketplace 1. Segmenting 2. Targeting 3. Positioning

Trademarks

Protect both consumers and companies; price fixing is per se illegal

What type of competition exists

Pure competition: each company has a similar product (agriculture) Monopolisitc competition: firms compete with each other by selling substitutable products (coffee and tea) Oligopoly: just a few companies control the majoruty of industry sales (wireless telephone industry) Pure monopolyL product is sold by one firm only (water, electric, sewer)

What is re-creation?

Re-creation is a term related to refreshing ourselves and challenging ourselves mentally; ex. people who watch television are less happy than those in engaging leisure and spiritual activities

What is marketing management?

Set of activities that facilitate the exchange of value; facilitate the exchange by using the marketing mix which are four controllable factors used to deliver value to the customer in order to develop a successful marketing program: Product: good or service, or idea that satisfies consumers needs via variety quality design features brand names packageing services and warranties Price: list price, discounts, allowances, payment period, and credit terms Place: getting the product to the consumer channels, localtions, inventory, transportation, atmospherics Promotion: communication between the buyers and sellers; sales promotion, advertising, sales force, public relations, direct marketing and e-commerce

What is Marketing Orientation?

Shift from inward to outward focus; company begins to focus on the needs and wants of consumers as it begins to become "customer-centric"; function

What are Microcultures?

Synonymous with subcultures, they are groups within our society that differ from the the overall culture in meaningful ways; based on beliefs values, shared history, language, behavior, and other factors; examples are Apple users, cosplays, and ethnic groups US population is becoming more diverse Latin/Hispanic populations are defined by race and language, increasing at a remarkable rate African American and Asian-american are defined primarily by race

What are buying situations?

The number of people in the buying centers and the length of complexity of the steps in the buying process depend on the specific buying situation: 1. Straight rebuy: buyer reorders an existing product without even checking with users or influencers; simplest type of purchase an organization can make 2. Modifed rebuy: something changes in the buying process that complicates a straight rebut; a new vendor may persuade company executives to consider that vendor as an alternative or a new product attribute has emerged 3. New buy: organization is a first time buyer of a product or service; require marketers to spend a lot of time and effort educating organizational makers about the products

What are key issues in the technological environment??

The rate of change: technology is changing very quickly and the rate of change is increasing as time passes; markets must be vigilant to not be left behind; Media fragmentation: explosion of ways in which consumer can spend their media-viewing time splits customers into relatively discrete markt segments Big Data: used to micro target customers with personalized ads; if you look at a picnic table on amazon you might be surprised if you find a picnic table on cnn.com; provides customers with narrowly table advertisements and offerings but it can be creepy lol ;) Automation: Machnines and robots are increasingly automating processes that were once controlled by humans Thee sharing economy: allows individuals to make most efficient use of resources that they're not using by renting them to others; uber and lyft; this kind of economy is called the 1099 economy because the people who work in it are independent contractors

What is a decision making unit and what are its components?

The typical decision-making unit is the household: 1. Information gatherer: responsible for bringing information into the decision-making unit 2. Influencer: anyone who does not have a decision-making authority but who attempts to influence the decision in some way 3. Decisiom maker: person who actually make the decision about what to buy 4. Purchaser: person who makes the transaction and the purchase 5. User: person who uses the product

What are macroeconomic conditions?

Two most influencing are inflationary periods and recessionary periods

What is exploratory research?

Used during the first stage of an investigation in which marketers are trying to define a problem; observe what's going on through interviews or focus groups; data tends to be qualitative not quantitative; used to formulate marketing questions rather than answer them 1. Observation; firms use to to capture consumers in their natural habitat of the real world; watching how people interact with and use certain products

What is a market share?

Used to evaluate the success of a marketing program; ratio of the firm's sales revenues to the total sales revenues of the industry Some firms have a much higher market share in terms of volume than in terms of revenue such as lost-cost items like water, vice-versa with energy drinks Market shares is sometimes measured in uni sales rather than in sales revenue such as the cellphone industry (measures success in the terms of number of cell phones sold) High market share is a good thing

What is product orientation?

When a firm focuses on producing as musch of the product as it can as efficiently as possible; this approach works when demand exceeds supply;

What is self-regulation?

When an industry attempts to police itself; alternative to government regulation that generally works well, particularly n the television industry; Better Business bureau is the best know example; use mora; persuasion to get members to comply

What is unethical and illegal activity?

Wrong in both the eyes of the individual and in the eyes of the law; false advertising

What is market research?

set of activities that provide information for marketing decision making; more than $40 billion is spent on marketing research every year

What is product differentiation?

strategy that involves a firm using different marketing mix activities to help customers perceive the product as being different from and better than competing products

What is the North American Industry Classification System?

system of classizfying organizations in North America; provides detailed description of what goods and services a company provides; important to marketers because the same "fine integration" show similar buying behavior; a seller should know an NAICs code because they can identify all other companies in North America with that code (thus grouping them would make a great target market, one or more specific groups of potential consumers toward which the organization directs its marketing program) More detailed as the digits for codes increases

What is relationship marketing?

when a organization or individual customers buys good or services from another organization (suppliers, employees) it is buying more than a product, it is developing a long-term relationship

What are the different approaches to positioning?

1. By product feature: characteristics of the product itself; helps firm emphasize product features that are either better than other brands or nonexistent in other brands; "Our toothpaste has fluoride" 2. By product benefit: Firms can also emphasize what the product does or what the consumer gets from using the product; "Our toothpaste will freshen your breath."; customers care about benefits more than features 3. By user category: firms emphasize who uses the product; "Wheaties is the breakfast of champions"/"the most interesting man in the world" 4. Against other brands ("comparative advertising"): firms can make direct comparisons between their product and the products of their competitor; "Mac vs. PC" commercials; 5. Against product categories: "low calorie sports drink" and that juices have electrolytes 6. Specific use: Coca-cola may try to reposition itself as the breakfast drink

What are basic concepts related to decision-making?

1. Consumer behavior is goal-directed: consumers make purchases to reach a particular consumption goal; we buy toothpaste to prevent cavities, buy a suit to look presentable, we buy a car to travel 2. Consumers exhibit bounded rationality: consumers are not completely rational about every purchase; limitations on how much they think about a purchase decision and how much info they can absorb 3. Many of our day-to-day purchases are low-involvement decisions: involvement describes how motivated consumers are to make a "great decision"; do not spend a lot of time on low-involvement decisions; where to go to college is a high-involvement decision 4. Consumers exhibit selective perception: Pick and choose what they pay attention to; filter out some info and focus on other 5. Consumer decision making is adaptive: trial and error, if he likes it he will buy it again; works to correct bounded rationality

What are some issues that marketers must consider when conducting field experiments?

1. Cost: test marketing is extremely expensive; not uncommon for a test market to cost millions; usually only used when marketers face a big decision 2. Competition: when company test markets a new productcan observe the product and its performance in the test market; gives competition time to catch up with the company by developing a similar product 3. Timing: take lots of time; elaying the launch a 4. Repurchase rate: critical variable in measurting a new products success; easy to get consumers to buy your product once but it's a lot harder to get them to to make repeat purchases; test marketing is more frequently used for consumer packaged goods than durable goods because they run for a long period of time 5. Fine-tuning: test marketing can be used to adjust aspects of a firm's marketing program; product formulations, advertising campaigns, pricing points, and packaging; AB testing or multivariate testing allows firms to increasing test two or more alternative marketing programs in a process

What is the formal five-step approach to marketing research?

1. Define the problem 2. Develop the research plan 3. Collect relevant information by specifying 4. Develop findings 5. take marketing actions

What do we use marketing research for?

1. Demand forecasting: gives a firm an idea how well a product will sell; determines product schedule and approach to the marketplace 2. Market segmentation: use to research to divide the divide the market into smaller subgroups of cusonsumers that are each more homogeneous than than the overall market 3. Market tracking: follows sales over time to how a product is selling and to determine if adjustments are needed; use of information technology and point-of-sale scanners; 4. New product testing: observing behavior and garnering information in order to refine the product 5. Ad pretesting: testing adverting before releasing them to the public

What are four concerns that government that the government has with distribution?

1. Excusive dealings: when manufacturer gets a reseller to agree to distribute only its products and not competitors products; violates clayton act if it lesses competition 2. Requirement contracts: require a buyer to purchase all or part of it needs from one seller over a period of time 3. Exclusive territorial distributorship: sole right to sell a product in a specific geographical area 4. Tying arrangementsL when a seller requires a purchaser to buy another item in the line to buy a given product

Which factors are considered when deciding which segments a company wants to target?

1. Expected size, growth: companies need to determine how big a company is and whether it's growing in order to be profitable; future oriented; marketers should be wary of the majority fallacy, when a firm mistakenly pursues the largest market segment, thinking that this will result in the greatest potential profit but it donut's always work because firms will face significant competition while it could be profitable to target smaller segments 2. Competition: firms shouldn't choose segments that already have strong, entrenched competition 3. Cost: targeting segments cost money and all firms have resource constraints; firms must weigh the potential profit from targeting a segment against the cost of doing so 4. Compatibility: segments must fit with a firm's strength and skill set

What are some current issues in marketing ethics?

1. Fake reviews: sockpuppets (people who post online under a false identity) & astroturfing (masking the identity of the true sponsor of a message to make it appear that it is being offered by a grassroots participant) 2. Product Placement: use of or reference to a branded product in media; Jurassic Park example in class; viewers are unaware that the product placement is intentional 3. Native Advertising: type of advertising that looks like the platform on which it appears; an ad on a magazine cover; consumers may be influenced by a paid ad without knowing it's a paid ad ' 4. Spam and Permission-based marketing: unsolicited mail and emails to customers but some companies are adopting permission-based marketing in which goods and services are only promoted to customers who consent to receiving the market ng information 5. Data Sharing and Privacy:

What are macro lifestyle trends:

1. Fantasy Adventure: people want to become someone else for a short period, seek experiences that will allow them to stimulate real-world adventure and excitement; space camp, zombie apocalypse vacations 2. Being alive: as our society gets older people make the most out of each day; carpe diem (seize the day) 3. 99 Lives: multitasking 4. Cashing out: opposite of 99 lives; relaxing and engaging in leisure activities

What are the different kinds of measures to assign customers to segments ?

1. General v. Specific: general measures applies to individual consumer (age); specific variables relates specically to the product category (color shirts have you bought in the past/what kind of automobile you will buy in the future) 2. Objective v. Subjective: Degrees to which the dimension is easily, quantifiably measure (Objective = age, sex, weight) / (Subjective = internal psychological states, attitudes, beliefs, and perceptions; marketers measure subjective variables indirectly using tools such as questionnaires and surveys)

What are the crtiiteria used when they segment a market?

1. How do they measure the people who fall into their markets so they can assign them to different segments: geder and age are used cause of their high level of measurability; one can also use consumer perceptions and psycholographics 2. Reachability: ability to communicate with and reach segments once they are identified; the do this via selective targeting (preferred method; identify mechanisms whereby they can communicate with a specific targetsgement) or self-selection (mass audience and count on people in the target to respond differently to ads they see than everyone else; large volume products 3. Profitbality: trae-off between the cost or reaching market segment and revenues generated from doing so 4. Differential response: different market segments should respod differently ro controllable marketing variables; price elasticity aka price discrimination

What are the qualities of Qualities of Marketing

1. It requires a diverse skill set; there are jobs for creative and analytical people 2. It's about satisfying customers needs 3. It connects people; connect customers to organizations and customers to other customers 4. It's everywhere; logos, celebrities, and causes (to raise awareness) 5. Marketing is in the products you love and the products you hate 6. Marketing can change behavior (discourage smoking or to make people buy their goods or services)

What are two major kinds of eXPERIMENTS THAT ARE USED IN CASUAL RESEARCH?

1. Laboratory experiments: use data from people who are brought into a laboratory envrironment and are asked to answer questions about a product; by manipulating one variable and controlling all others marketers try to establish a cause for changes 3. Test Marketing (field): field experiments are conducted in the field where marketers ee whether a product will sell in a "real world" environment; can be extremely expensive; used when launching new products

What influences a consumer's decision making

1. Marketing mix: attempt to use variables to control customer decision making 2. Psychological Influences: perception, learning, personality; response to sales and reference prices; retail therapy: customers tend to shop when they're stressed out or angry 3. Sociocultural forces: influence from our parents, family, cultures, peers, and social groups; a person from a society that emphasizes homemaking might avoid eating premade meals and might purchase their own groceries 4. Societal Influences: context in which an individual operates; more diffocult to detect than other influences on consumer decision making;scents and music impact customer shopping behavior

What is a objective, general variable?

1. Objective, general variables: not product-specific and can be objectively measured; demographics and socioeconomic status are used for objective, general variables such as age, sex, income, occupation, ethnicity and religion; most commonly used demographic variables are age and sex as they are the "starting points" because they're the most readily available Let's divide the different demographics: 1. Age: Coca-cola commerical directed for seniors (nostalgic); Ford targeted younger millennial by being more environmentally conscious 2. Sex: Viagara is regularrly marketed towards men 3. Income: A high-end coffee product featuring a commercial directed towards affluent customers 4. Ethnicity: pfirst-generation Hispanic immigrants tend to prefer to consume their media in Spanish, while their children and grandchildren are equally comfortable 5. Region

How have we've been increasing our attention on ethics?

1. Our society is becoming increasingly diverse and fragmented into micro cultures thus each group has its own value system 2., Increased public scruitynity 3. Higher expectations 4. Perceived top in ethical conduct; people perceive a greater amount of unethical behavior in business due to increased scrutiny

What are some key factors in descriptive research?

1. Population: group of interest to the firm or organization 2. Sample: subset of the populationl draw conclusions about the population as a whole; sample must be random and the response rate must be relatively high 3. Response rate: many people choose not to respon when f firm dconducgs a survey; people who respond the most often are those who really care about the issue and with lots of time on their hand (senior citizens); percentage of people who agree to participate in research is known as the response rate 4. Representativeness: measures how accurately the same actually represents the population; firm needs to have a sample that is large enough and is without biases; firms need to make sure they control for factors that may affect survey results 5. Error: when there are low response rates or poor samples that are not representative of the population; sampling error results from eselecting a sample that is either biased or too small; interviewer errorL: interviewers can inadvertently impact surveys responses through their body language and voice infection; questionable design error: questions might either intentionally or unintentionally make the respondent more likely to answer in a particular wail particular way, push polls are designed to influence voters under the guise of conducting a poll Results of questions on a questionnaire : a. Free Recall: "What commercials od you remember seeing during the super bowl?" b. Cued Recall: "Do you remember seeing any commercials about pickup trucks during the super bowl? c. Recognition questions: showing the commercial to participants and asking them "Do you remember seeing a commercial for the Chevy silvered DURING THE sPER bOWL? ";

What is ethical but illegal activity?

1. Price collusion in pharamceutical companies has been criticized for the high prices of its life-saving medications; but when they try to reduce prices it's illegal because of price fixing 2. Feeding the homeless

Explain the evolution of market orientation?

1. Production era: products sold themselves because goods were scare and customer demand was high; organization focused on products and not marketing; common in the 1920s 2. Sales era: finding sales person to find more buyers due to the increase in competition (1920s-1960s) 3. Marketing concept era: organizations should strive to satisfy the need of consumers while also trying to achieve the organization's goals; marketing is integrated into every phase of the business (late 50s - late 90s) 4. Customer era: attempting to satisfy consumers' high expectations because of market orientation (continuously collecting information about customers' needs sharing this information across department); depends on customer experience which depennds on direct contacts (when the customer buys or uses the product or services) and indirect contacts (word-of-mouth from news reports, reviewers, and customers)

What is market segmentation?

1. Search for relatively homogenous clusters within a heterogenous market; marketers place consumers into groups based on similarities between them; a market segment is a relatively homogenous group of existing and potential customers with common needs, values, and levels of responsiveness to market variables ; responsiveness to a market variable is the most important requirement for successful segmentation

What must be present for marketing to occur?

1. Two or more individuals or organizations with needs that are unsatisfied 2. Both the desire and the ability to satisfy those needs 3. Manner in which the parties can communicate 4. Something that the parties can exchange

How to persuade potential buyers by using value analysis?

1. Understand how that customer uses the product: going out to the plant to see where the product is going to be used; easier for a company to understand how an organizational buyers will used the product compared to individual consumers (ethnographer: describe how individual people live) 2. Show cost savings: must show its potential buyer the monetary advantage of using a certain product; by using initial purchase costs, what a buyer has to pay to acquire the product, unsophisticated organizations focus solely on these costs but more sophisticatedly attention to other costs; the other costs include switiching costs which include the costs of switching to one product to another; operating costs refer to the costs of using the product, separate and apart from the initial purchase cost (labor, electricity, and water)

What is targeting?

Ability to go after one or more segments; the following are strategies for targeting: 1. Mass marketing: using one particular approach to sell a single product to whoever wants to buy it; identified as a "one size fits all" approach; does not recognize differences between customers 2. Market concentration ("niche marketing"): focusing on a single, specified segment of the market even though multiple have been identified; effective for start-up firms as well as well-developed firms that are able t o find and serve a thriving niche markets 3. Multi-segment: targeting multiple segments of the market; companies do not necessarily pursue all of them though; larger corporations with plenty of resources use multi-segment targeting strategy; develop products market strategies that fit each segment; tide has powder and liquid detergents for many different users 4. Mass customization: serving customers efficiently and uniquely; serving customers uniquely because it allows the customers some input as to what th final good ro service will look like; treat consumers as a "segment of one"; facilitated by computer technology;

What is casual research?

Addresses why something happens in the marketplace; tries to determine what influences consumer behavior through experiments; much more powerful than explanatory or descriptive research; most expensive form; there two essential elements of casual research: 1. Manipulation: marketers should change only one experimental indecent variable to see what impact it has on the ultimate response 2. Control: extraneous variables should be controlled or held constant while the single independent variable of importance is being manipulated

What are micro trends in the leisure market?

Aging boomers: baby boomers are getting older; companies are adapting their products to accommodate the needs of baby boomers as they age Hybrid sports Cross-Participation: people who participate in one sport are more likely to participate in certain others;

What are environmental factors?

Although marketers have control over the marketing mix, environmental factors are cuncontrollable involving social, economic, technological, competitive, and regulatory forces

What is Marketing?

As defined by the American Marketing Association; set of processes, institutions and activities that create offerings that have value for customers clients partners and society at large (organization, stakeholders, and society at large) For businesses: marketing is the profitable creation of customer value, cluster of benefits received by targeted buyers that include quality, price, convenience, on-time delivery, and both before-sale and after-sale service Market: group of people with both the desire and ability to buy a specific product

What is a social audit?

Assessment of a firm's objectives, strategies, and performance in the domain of social responsibility; Steps of a social audit: 1. Recognition of responsibility: Firm must recognize they have the responsibility to do good things for society 2. Identification of a mission: determine how it wants to dcontribute to society 3. Determination of priorities: firm has to determine what it wants t accomplish for the cause it supports 4. Specification of resources: firm must decide which resources it is willing to commit to the program; donations, vacation time to help rebuild homes 5. Evaluation of results: periodically re-evaluate its contribution to society

What is utility?

Benefit or customer value received by users of the product Time utility: getting the product to the customer when he or she wants it; ex. receiving a christmas present ordered online prior to christmas, the ability to deliver packages quickly over long distances; Amazon Prime Place utility: having the product where the customer wants it and providing the product in a positive atmosphere; ex. a delivery company being able to deliver packages to all over the world, Walmart and Target (Big Box Grocers) that offer items traditionally found at grocery stores which offers place utility to those who want to do their grocery shopping there Form utility: having the product in the form that is most useful to the customer; arises from how the product is built, manufactured, packaged, and designed; ex. music has evolved from 8 track players to MP3s, bottle of bourbon has more value than the corn, rye, water, and glass used to make it, paintings have more value than the paint and easel used to create it Possession Utility: making an item easy to purchase so customers can use itwhen a customer physically gets a hold of a product; retailers provide customers a means of purchasing a product that was produced by manufactures; credit allows people to posses a product now and pay for it later

What are life cycle costs

Costs involved in using a product over its useful life, including the initial purchasing costs, switching costs, and operating costs; take into account the initial purchase price of products that are more durable and spread out over a long period of time (see the example of p. 62)

Does ethical behavior pay off?

Customers are willing to pay for extra for goods and services offered by companies committed to positive social and environmental impacts; people are more likely to trust and be loyal to companies that embrace social causes; customers would only buy goods that are produced with low ethical standards at aa steep discount

What are demographic trends?

Describe the population according to select characterstics such as age, gender, geographic location, ethnicity, income, and occupation Age trends: Greying of America, Geographic trends: Americans are moving out of rural areas and toward cities but the fringe in the suburbs and exurbs, thus for marketers distribution is more efficient as customers aren't spread out Household Composition: people living alone, unmarried partners who are cohabiting, and racially mixed couples; waiting linger to get married; more children have moved back into their parents home after college

What are the most important sectors for the natural environment of the macroenvrionment?

Energy Use: 1. renewables accounts for a small fraction of our energy sources like solar, hydro geothermal, and biomass 2. Most of our energy is used for transportation and industrial purposes 3. Most of our energy is wasted: Global warming/climate change: "global warming" is a misnomer because some parts of the globe are getting colder; marketers are taking advantage of the public's increasing awareness and concern abut climate change Green Market/Sustainability: involves marketing brands, products, and companies with substainability in mind; marketing products that directly benefit the environment such as cleaning products that are nontoxic; some companies are addressing disposal costs: usually imposed on society in general and aot specifically on the consumer or the manufacturer, start instituting recycling programs Greenwashing; occurs when a company makes claims about its commitment to the environment that are not really true; can avoid claims aof greenwashing by getting certification from a third-party organization that independently examines environmental practices

How do you manage and measure customer satisfaction?

Expectancy Disconfirmation Model: involves comparing customers perceptions before and after the purchase; before purchase and use of a product or service ask "What are a consumer's epevtations regarding a product performance? Expectations about what the product is going to do for us drive customer value?"; After purchase and use of a product or serve ask "What are perceptions of actual performance? How did the performance match up to expectations/ Wen there is a discrepancy between what we expected and what we actually got, we are either delighted or disqualified" If performance is greater than expected performance: this causes dissatisfaction, leading to negative word of mouth If performance is equal to expectations this would lead to relatively happy, satisfied customers If product is greater than expectation this leads to positive word of mouth How do you manage? Measurement: companies use market surveys and market research; social media is huge for this; ex. Net Promoter Score %of promoters - % percent of demoters, scores of 0-6 are demoters and 9-10 are promoters, 7-8 are neutral Service after sale: helping customers get a new product set up and working; 800 numbers and websites provide service after sale Chief customer officer: represent the voice of the customer in the company's decision making; plays a role in moving a company from a marketing orientation to a market orientation

What are regulations and which kinds exist for businesses?

Federal or state legal restrictions on business with regard to their conductL Sherman Antitrust Act: protects competiton by prhibiting monopiles; basis for preventing mergers that would substantially rdeduce competiton Robinson-Patman Act: federal law protecting against unfair competition; prohibits price discrimination in business-to-business transactions; protects smaller businesses from being charged more than large businesses Lanham Act: protects businesses from other businesses that maight try to copy their brands, trademarks, and packaging Federal Trade Commission: regulates the kinds of communications customers receive from companies; monitors all advertising and ensures those ads are truthful Food and Drug Administration: approves all new pharmaceutical drugs and is in charge of labeling foods Consumer Product Safety Commission: is in charge of product safety

What is the alternative evaluation process?

Following the feedback loop it is the step in which the consumer each decision alternative and determined which is best Multi-attribute model: psychological model of attitudes that is fundamental approach to evaluating alternatives; assumes that consumers are built on multiple product attributes Attributes of the multi-attribute model: popular with marketers because it is relatively easy to gather relevant data using surveys; helps marketers create strategies (example on p. 45): 1. Consideration set of brands: group of brands a customer would consider buying 2. Set of Evaluative Criteria: set of criteria consumers use to differentiate among brands in the product class; if evaluating a college (academics, costs, campus life, and career prepeation); when evaluating criteria we can use of objective data: independently varied and qualified such as screen size and resolution of a camera or we can use subjective data: personal perception, subjective data drives consumer behavior How to improve strategies for improving a brand's score in the multi-attribute model: 1. Change beliefs 2. Change the importance of weights: convince consumers that a particular attribute is more or less important 3. Introduce a new attribute

What are key economic indicators?

Gross Domestic Product: measure of value of all goods and services produced within a country during a year; Consumer Prince Index: Economists use to measure inflation; measure the overall price of a typical market basket of goods changes over time; inflation erodes the value of the dollar Income Inequality (not considered a major economic indicator but it important nonetheless): income is increasing in the United States but those gains are unequally distributed (bottom 40% gave remained stagnant while the top 20% have been increasing) Consumer Income (ability to buy): largely affects consumers income ability to buy goods and services; rise at a fairly steady rate through the years; ways to express income: Gross income: income before taxes Disposable Income: income a consumer has left to spend after taxes; food, shelter, clothing, and trasnportation Discretionary income: income a consumer has left to spend after paying for taxes and necessities (money you can play with) Consumer Expectations: willingness to buy goods or services; can be measured by using the index of Consumer Confidence which surveys thousands of consumers per month asking them a few questions about the state of the economy and the future

What tools are used to measure income disparity?

Lorenz Curve: tool that economists use to measure income disparity; put people in order buy income and then determine the proportion of total income accounted for by each portion of the population Line of equality: the more bowed out the lorene truce the more unequal the income distribution (US has a more bowed out, death is more unequally distributed) Gini Coefficient: numerical measure of inequality that uses the lorenz curve; calculates the area to the right of the line of the equality and to the left of the Lorenz Curve divided by the sum of this area and the area to the right of the Lorenz Curve; coefficient of 0 means there s no income inequality and that the lorenz curve coincides with the lien of equality; if 1 the income is as unequal as it can be Gini Coeficient: (Left area of the lorenz curve / (left and right areas)

What are the levels of the marketing environment?

Macroenvironment: broad environmental forces that affects all of the firms in all of the businesses in a court; social, economic, technological, and natural forces Microenevionment: focused on a particular field, channel, or industry Internal environment: level inside the firm that includes the business of the firm

What are organizational buyer?

Make purchases on behalf of particular organizations; manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale; three different markets: 1. Industrial Buyers: buy a good to reprocess it and sell it to somebody else; Apple might buy hard drives and use them to make computers 2. Resellers: wholesalers and retailers; buy products that are already manufactured and resell them again without any reprocessing; buy finished products for the purpose of selling them 3. Government buyers: federal, state, and local governmental agencies that buy goods and services for the constituencies they serve

What are two prominent personal moral philosophies?

Moral idealism: indnidiuals right sand responsibilities are universal, regardless of the outcomes; certain things are right and certain things are wrong; there is no in between; company should avoid doing something that might hurt someone Utilitarianism: cost-benefit trade off that seeks to achieve the greatest good for the greatest number of people; consequential view because it holds that an action is not unethical if it has beneficial consequences; AT&T might have adopted this view because it allowed the government access to its customers data because they were trying to protect the whole country from terrorists Both forms are on the opposite end of the spectrum

What are depth interviews?

One-on-one approach to explanatory research in which a trained researcher sits down with an individual consumer and has a conversation with him or her about a particular product category or advertisement; more expensive than focus groups but they offer researchers the opportunity to delve deeper ; laddering uses a sequencing of question to try to get to a core reason or value in order to discover the terminal value which are what marketers should pay attention to the most when formulating advertising campaigns

What is corporate social responsibility?

Oraganinzations are part of a larger society and they should be held accountable for their actions Three forms of corporate responsibility: 1. Profit Responsibility: companies have the duty to maximize profits for owners and shareholders; criticized because its a narrow view held by "radical" believbersin free market economics; companies should not go out of its way to adopt social causes but research shows that social responsibility improves firms' bottom lines 2. Stakeholder responsibility: firms should focus on obligations that affect everyone, not just shareholders; members of the community, activists, governments, etc. 3. Societal Responsibility: Corporations should be a positive force for society on top of earning a profit and treating stakeholders well Pyramid of social responsibility (bottom to top): 1. Economic responsibility: responsibility to be profitable; foundation up which all of the other responsibilities rest 2. Legal responsibility: resoposibility to obey the law 3. Ethical responsibility: responsibility to be ethical 4. Philanthropic responsibility: Responsibility to be a good global corporate citizen Forms of societyal responsibility: 1. Green Marketing: companies are increasingly attempting to operate in a way that is sustainable and envrionmentally friendly 2. Cause marketing: firm ties its marketing to a particular societal cause; charity or social causes; Susan G. Coleman for the Cure Foundation; pinkwashing: the practice of using pink for marketing purposes without making a signifanct contrinbution to the breast cancer cause

What are the characteristics of organizational buying behavior?

Organizational buying behavior is the decision-making process that organizations use to establish the need for products and services and to identify, evaluate, and choose from, alternative brands and suppliers Features from an organizational buyer: 1. Derived demand: organizations demand for product or service is based on the demand for the organization's product or services; demand for pc components is dependent upon the demand for persona;l computers; marketers should pay attention to trends in their organizational customers' markets 2. More formal decision process: whereas consumers take short cuts int he decision-making process, orgaizations use rigorous decision making methods that involves approvals authorizations and audits; much more money is involved 3. Larger decision-making unit: made up of a large number of people, managers and engineers 4. More specific criteria: purchases need to fit a number of specific criteria

What are peak experiences and flow?

Peak experiences: high points in one's life exciting rich and fulfilling experiences (weddings, births, vacations, great concerts, and sport experiences); people spend a lot of money on peak experiences Flow: sense of mastery, accomplishment, and novelty; completely immrsed and not thinking about anything else "in the zone"; skydiving gives people meaning to their lives, thus giving them flow;

What is personal moral philosophy?

Person's view or how he or she should behave. Shaped by the following: 1. Societal culture and norms: rwefers to norms that we grow up with and used to; 2. Business culture and values 3. Organizational culture and expectations

What is Environmental Scanning?

Process by which firms and individuals continually acquire information outside events to identify and interpret potential trends; Social forces: switching media, increased demand at discount retailers, crowdfunding Economic forces: saving rates, clean energy sector expansion, European union Technological forces: robots, 3d printing, availability of smartphone apps Competitive forcea: customer-generated content, peer-rto-peer websites, coolaborationpartnerships Regulatory forces

What is STP Marketing?

Process of identifying groups in the market place and serving them: Segmentation: with a heterogenous marketplace any specific market contains multiple submarkets due to the inherent differences among consumers Targeting: marketerss must decide which segments deserve their focus Postioning: Marketers must position themselves in the minds of target consumers; what it has to offer them

What are objective, specific variables?

Product-specific and can be objectively measured; most important variable is past purchases/purchase history; frequency and volume of purchase Different product class and past purchases of the specific brand based on past purchases 1. Product class (heavy half): group of people who hweavily use products in the product class; exhibit the 80/20 rule (80% of a firm's sales are obtained from 20% of its customers); customers in this class are referred to as pivotal point customers; brand loyalty: heavy use of a product class (heavy users are brand loyal, users of both brands equally are called split loyal, and more than 2 brands are called variety seekers); if trying to target not brand loyal customers try to aim that your brand is cheaper

What are ethics?

Public has a poor perception of marketers, only 10% of proper hsvr "high" or "very hgih" trust in advertising marketers Ethics: moral principles and values that govern the actions and decisions of individual or a group Laws: societal standards and values that are enforeeable in a court of law; just because it's legal doesn't mean it's ethical

What is a subjective, general variable

Referred to as psychographic data not product-specific and cannot be objectively measured; use surveys or questionnaires to turn subjective observations into concrete, comparable data; ex. of such data include bicycling, science fiction readers, veterans programs, health food eaters, frequent tennis players Subjective variables are encompassed by a typical lifestyle study: 1. Activities, interests, and opinions: give us an idea of what members of the market like or do for fun 2. Product usage: how often different consumers buy different products across a wide variety of product categories, describes why and how we use those products 3. Media usage: how often different consumers use different forms of media 4. Demographic/socioeconomic status: links objective general variables with subjective, general variables How to integrate all of those factors example: Subaru noticed a high percentage of its customers were dog owners; created an ad that targets dog owner that promotes animal welfare - thus gathering lifestyle data is important

hat regulations exist to protect competition

Sherman antitrust act: prohibits contracts, combinations, or conspiracies in restraint of trade and actual monopolies or attempt to monopolize any trade or commerce; enacted the Clayton act which forbids specific anti-competitive actions; enacted the robinson partisan act: made price discrimination unlawful it it slessens competition or helps create a monopoly

What is culture?

Social force that incorporates values, ideas, and attitudes, that are learned and shared amongst social groups Buying patterns of men and women have become more and more similar

What is consumer ethnography?

Sociological and tropological methodconudct observational market research; involves immersing oneself in the consumer's world by going to where he or she lives or shops; on-the go consumers, ultrabooks that features responsiveness, mobility with compromise, trendy design, and security

What are subjective, specific variables

Specific variables are product-specific and cannot be objectively measured Benefit segmentation: utilize a multi-attribute model; segmenting markers based on the various benefits that are important to different cusomters; different weights on different ebenfits, ebenfit segmentation can be used; one person might value price over quality and another might value quality over price; best alternative for true differential response measurement and the best approach for segmentation because it allows us to approximate differential response management; if we segment those based off of value for the product we can target and deliver value to them more effectively 2. Usage situation (occasion-based segmentation): segmented based on how consumers use the product; examples: computer usage, athletic shoes (ankle support, other dimensions), drinks (organge juice for breakfast, wine with dinner, etc.)

What is value analysis?

Systematic appraisal of the design, quality, and performance of a product to reduce purchasing costs; what organizational buyers use to understand the expected cost savinhgds to expect from the purchase of a particular product for use in the organization; vendors will use value analysis to persuade a buyer to switch to the seller's product

Descriptive reseearch

Taking a snapshot of the marketplace by developing an accurate description of consumers and the market; observations and surveys Types of observation: Personal observation: observing customers in a particular saving and seeing how they behave; involves larger number of groups whose behavior is recorded much more systematically Electronic Observation: data generated at a store's checkout counter; scanner technology we are able to observe the purchases of households Types of surveys: Mail surveys: mailing a questionarre to a sample number of people; can include a small incentive; chest o administer; Phone surveys: provide better results although they were more costly and less comprehensive than mail surveys; very biased because they only typically reach households with landslides Personal Interviews: live, one-on-one interaction with a consumer; mall intercept surveys are when an interview intercepts shoppers ; usually do not involve a representative sample of the overall population; people simply don't shop in malls or are working when the survey is being conduct Web surveys: allo marketers to show respondents photos and videos, can be completed 24 hours a day, 7 days w eek, produce huge samples at a relatively low cost, allow marketers to see the results instantaneously

What is sales orientation?

When companies have to compete for market share and customers as supply and demand begin to reach equilibrium; utilize coupons, advertising, and other promotions to get rid of inventory; focus on selling making heavy use of advertising to convince consumers that their products are better than their competitors bt the company is still focused on its own needs more than it's focused on the needs of its customers

What is a buying center?

decision-making unit that makes purchase decision for an organization; What roles are present in a decision-making unit for buying centers 1. Users: people who are actually going t o use the product that is purchased 2. Influencers: people who attempt to influence the purchase although they don't have final authority in a decision; vendors wining and dining 3. Purhcasing agent: responsibility and authority to negotiate with the vendors and make the buy 4. Deciders: make the decision 5. Gatekeepers: information gatherer in individual decision making; keep information out and let information in; receptionists and secretaries

What is marketspace

information and commonuication-based electronic exchange environment occupied by sophisticated computer and telecom nicotine technologies and digitalized offerings Intranet: used within the boundaries of an organization and may or may not be connected tot he larger internet extranet: connect a company to the suppliers, distributers, and other partners

What is the marketing information system classification?

integrated, ongoing decision support system that organizes data used in decision making; pulls together sources, organizes, and deploys it in a way that is useful for managers; Types of marketing information systeM: 1. Internal, secondary data: gathered from within the organization that are pre-existing; data produced within the firm for some reason other than marketing; firms billing records; keeping information about a customers past purchases and using for product recommendations (data mining) 2. External, secondary data: gathered outside the firm and are pre-existing; U.S. census; provides information for free; can provide detailed demographic information about the population in specific areas called census tracts 3. Internal, primary data: gathered for a specific purpose within the firm; derived from the firm gathered specifically for the task at hand; ideas generated from a brainstorming session that a firm conducts with its own employees; 4. External primary data: "classic" marketing research that firms use to gather information about customers; consumer surveys, test markets, and focus groups

What is Vendor Analysis

process companies use to analyze vendors from whom they are considering purchasing products; compares vendors on a series of dimensions (costs, product quality, after-sale service, reliability, and term of purchase; vendor that receives the highest weighted score is chosen

What is value consciousness

trend that identifies obtaining the best quality, features, and performance of a product or service of a given price

What is a product positioning map/perceptual map?

way of representing what consumers think of the marketplace; circles show the ideal fast-food resturaunt for two different market segments exist and based notes points companies may try to reposition themselves by changing the place of their products or services occupy in consumer's mind;