Marketing Quiz #1 Study Set

How does "marketing myopia" effect a sellers' ability to deliver value to their customers?

Companies focus on specific product they offer rather than the benefits and experiences produced by these products. Limits the seller's ability to create a brand experience; cannot adapt to changing environments

In Non-Probability sampling, what is the difference between Convenience, Judgment or quota samples?

Convenience: selects easiest pop. • Judgement: researcher chooses pop. members who are good prospects for accurate information • Quota: researcher finds and interview number of people in each of several categories

What is the "Starbucks Experience" and how has it helped their company to grow?

"One that enriches people's lives one moment, one human being, one extraordinary cup of coffee at a time". • Part of mission statement • Starbucks sells an experience, not a product. Customers find more value in the experience; its not just about the coffee

Questionnaires can be misleading when using open-ended or closed ended questions. Give an example.

Close ended - include all possible answers (Ex: multiple choice) Open ended - allow respondents to answer in their own words (reveal more than close ended) - need to use simple, direct, and unbiased wording

What are the five steps in the Buyer Decision process

1. Need recognition 2. Information search 3. Evaluation of alternatives 4. Purchase decision 5. Post-purchase behavior

What is the difference between the five concepts of "Production, Product, Selling, Marketing and Societal Marketing" concept?

- Production: consumers care about available and affordable products → focus on improving production and distribution. - Product: consumers care about product quality → focus on improving product continuously. - Selling: Consumers will not buy products unless the firm undertakes large scale promotion and selling efforts → focus on promotion and selling. - Marketing: achieving goals depends on knowing the needs and wants of the market and delivering satisfaction better than competitors → focus on marketing. - Societal Marketing: Marketing decisions should consider wants, company requirements, consumer long-run interest, society's interest →focus on consumer and societal interests long term

What different groups or ideas are present in a "Marketing Information Systems"?

- Takes information from the marketing environment and then develops a marketing information system in which it can be passed on to marketing managers and other information users in order to make decisions. Internal Databases, Marketing Intelligence, Marketing research - Assessing information needs/Analyze and use the information from internal databases, marketing intelligence, and market research to pass on to marketing managers

Name the four steps of Market research. Why is Step 1 most critical?

1) Define the problem and research objectives- Step 1 is the most the critical because it guides entire process as it focuses in on the issue at hand. 2) Develop the research plan for collecting information 3) Implement the research plan and collect/ analyze data 4) Interpret and report findings

What are the eight elements in a Marketing plan

1. Executive Summary- summary of main goals and recommendations. Brief 2. Current Marketing Situation- describes target market, company's position, etc. : Market description, Product review, Review of competition, and Review of distribution- sales trends 3. Threats and opportunities analysis 4. Objectives and issues 5. Marketing strategy 6. Action programs- how will marketing strategies be turned into actions 7. Budgets 8. Controls- monitor progress, allow managerial review

The new trend of "customer-generated marketing" has had a big impact on companies marketing plans and messaging. What is it?

A form of customer engagement where customers themselves play roles in shaping their own brand experiences and those of others.

What are the five types of "Influencers"? What can go wrong with celebrity endorser's strategy?

Advocate, ambassador, citizen, professional occupational, and celebrity - if someone doesn't like the celebrity or there is a scandal, it may affect your product's sales even if completely unrelated.

What is the advantage of a Social Media Center?

Allows a company to respond quickly to any social media concerns or issues; live monitoring of the firm's social media activity, gives the company easier access to customer opinions

Amazon continues to grow their services base even though their shipping is barely breaking even. How do they make money and how is this helped by their business model as a "disruptor"?

Amazon makes most of their through their online stores, but their third largest area of revenue is their AWS (Amazon web services). As they make money, they continue to invest in new technology or more warehouses, making them seems to be only breaking even, but in fact they are making money in places over than online orders. Prime, AWS, and advertising are all factors that bring in money for Amazon.

Before one can develop a good Marketing Strategy, it is important to perform a "Situational Analysis. What are the key components when studying the Internal and External business environment?

An SA describes the current business environment in which the company operates • Industry analysis, macro-level external environment, competitive environment/SWOT/Porter's/other models, internal environment, business objectives, leadership, vision, value proposition, social responsibility, market, financial health

The Marketing Process (1.1) has four steps in creating value. What are they?

Answer: 1) Understand customers 2) create customer value 3) build strong customer relationships 4) reap rewards of customer value

Provide a definition for "What is Marketing?"

Answer: Process by which companies engage consumers, build strong customer relationships and create customer value in order to capture value from customers.

Many things effect 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?

Attitude of others: your decisions are shaped by the opinions of people important to you • Unexpected situational factors: Consumers may form purchase intentions based on a factor, but unexpected events may change purchase intention. EX: economy might make a turn for the worse.

Is "Behavioral and Social Targeting" an acceptable why to market to the individual In a b2C strategy? What is god about it and what is controversial?

Behavioral targeting is a marketing method that uses web user information to strengthen advertising campaigns.Social media targeting is the ability to display adverts and posts to specific audiences chosen by the advertiser or poster.Is good because people can get specific ads for products they want- controversial because its using personal data.

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 pose a threat to the privacy of consumers. gathered information can fall into the wrong hands or can be used in the wrong way. Positives: it's a great source of data, gives a holistic view of consumer base

What is the difference in a "House of Brands" and a "Branded House" in Portfolio Management? Use P&G, General Mills, Disney as examples of each type.

Branded House - smaller sub-brands, but all are marketed and operated under the umbrella of the parent brand (Disney is a good example; Disney Pixar, Disney+, Disney Channel, etc.) House of Brands - home to numerous brands, each independent of one another, and each with its own audience, marketing, look and feel (P&G has Bounce, Pampers, Bounty and are all separate brands) (General Mills also has multiple brands that are marketed differently like Cheerios, Tostitos, and Betty Krocker)

ESPN, Marvel comics, Star Wars are a part of the Disney Portfolio. How does it affect their business and their portfolio?

Business Portfolio- collection of businesses and products that make up the company • ESPN Brand portfolio generates 10.6B revenue; sports advertising. ESPN must change their brands so that they align with the overarching Disney brand • ESPN has hit hard times because of: future of sports coverage, competition (politics and other networks), rising costs of sports rights, drop in viewership • Owning many companies is good news/bad news. Leveraged/dragged down; one bad company can hurt the parent.

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 whats good for customer well-being and the planet can also be good for business • More efficient operations, less wasteful products are good for all so companies are trending toward this

In customer-engagement marketing, why is there a shift of "marketing by intrusion" to "marketing by attraction".

Companies must create market offerings and messages that engage customers rather than interrupt them.

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?

Consumers don't just buy products, they buy the values and lifestyles those products represent. Certain lifestyle segments have needs that can be served through special products

Marketing teams often add someone with Psychology Expertise in order to understand the consumer. Why is that role important and what do they study?

Consumers often don't know or can't describe why they act as they do. Psychologists are hired to carry out motivation research that probe subconscious motivation underlying behaviors and emotions towards brands. —> A person's buying choices are futher influenced by four major psychological factors: motivation, perception, learning and beliefs and attitudes

The chapter talks about "Brand Essence". What is it and why is it vital for a company to understand it? How is brand essence best communicated?

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

Outline the factors that Influence Consumer Behavior and give examples.

Cultural: children learn basic values, perceptions, wants and behaviors from family and other important institutions. EX: americans grow up exposed to freedom, hard work, etc. Programs attempt to cater to these • Social: small groups, social networks, family, social roles and status • Personal: occupation, age and status, economic situation, lifestyle, personality and self concept • Psychological: motivation, perception, learning and beliefs and attitudes

"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.

Customer Insights: fresh marketing information-based understandings of customers and the marketplace that become the basis for creating customer value, engagement and relationships. Secondary data already exists, found in company's internal databases or bought from an external research firm. Cheaper and more accessible than primary data. Primary data is found through observational, experimental, or survey research. Can be found online, in focus groups, on the phone, mail, etc. Touchpoint analysis examines every contact between a customer and a company (purchases, support calls, site visits, etc.) - Competitive intelligence- the systematic monitoring, collection, and analysis of publicly available information, aboue the consumers, competitors, and give it the greatest possible competitive advantage

"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: value of the entire stream of purchases a customer makes over a lifetime of patronages... • Losing the customer means losing a lot more than one purchase, NEED TO MAKE LIFETIME CUSTOMERS • Customer Equity: total combined customer lifetime values of all company's customers • Increase brand loyalty, increase CLV, increase CE

"Social Media has gotten nasty". Give an example. Why? Should there be restrictions?

Customer receives a damaged computer from FedEx, posts video of delivery man throwing the monitor • Good and bad; provides accountability to the firm, but can go to far and be somewhat unfair for them Ex. Yelp. People can leave reviews that can destroy a company and sites like Yelp can show these bad reviews if the company is unwilling to pay for advertising from Yelp. Since companies like Yelp van blackmail companies like this, there needs to be some restrictions.

How does a "value proposition" help the working relationship in a marketing exchange?

Customer satisfaction comes from how well a company delivers on its basic value prop and helps customers solve their buying problems, its the set of benefits or values it promises to deliver to consumers to satisfy their needs differentiating it from other brands; what makes their experience better / diff (cheap v. lux)

TESLA is a good example of how Competition is not a zero sum game. Why do they need to develop an infrastructure and network with their competitors in order to be successful in the electric car market?

Electric cars are a very small share of the car market - use unusual marketing to get news outlets to report on them, loyal customers rave about products so don't need to spend much if any on social media advertising

Describe elements of Buffalo Wild Wings marketing strategy. What is the key to their success?

Encourage guests to stay longer, create positions catering to customer experience, provide apps. They cater to the 20% who spend 80% of the money (The BDUB Experience)

CHAPTER 2:

End of Chapter 1:

Chapter 3:

End of Chapter 2:

Explain the difference between Exploratory, Descriptive and Casual Research.

Exploratory: gather preliminary information that will help define problem and suggest hypotheses • Descriptive: Marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of the consumer • Causal: test hypotheses about cause-and-effect relationships (ex:would tuition decrease lead to enrollment bump to cover it)

Why is it important to recognize the "Family" and current changes if you are in marketing?

Family is the most important consumer buying organization in society. • The "modern family" composition and roles are changing. It is important to cater to the different familial roles

When might a business desire fewer customers over more customers in developing their marketing plans?

Fewer loyal customers provide greater customer equity than a lot of unloyal customers, smaller high value customer base • Satisfy the 20% who spends 80% • Lexus wants lifetime Lexus drivers because they will spend a ton if they are loyal for life (Luxury Product)

What is "generational marketing" and what are the good points and bad points of this approach?

Generational marketing is creating separate products and/or marketing programs for each generation • Bad: can put off one generation; defining people by birth date may be less effective segmentation than lifestyle, stage, values; • Good: Each generation spans decades and many socio-economic levels--you can capture a ton of value from one generation

Why is it important to understand whether a customer's state of desire for an offering is either in "needs, wants or demands" state?

Given their wants, people demand products + services with the most value, benefits, and satisfaction wants- needs as they are shaped by culture and personality...buying power then brings demand Important in order to create value for customers through market offering. Need to know what you are satisfying: need or want/demand

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? Use McDonalds, Disney or Walmart Moms Ambassador approach.

Good news: these brands get mostly good reviews from sources that people trust • Bad news: some people may not believe the reviews are credible since the moms are receiving benefits. Potential for a bad review that could do more damage than all the good reviews - Disney moms are social media presences who talk about their experience in the parks and with the company on social media. They are paid by Disney, but no minimum post requirement is present

What is a "Focus Group" and why would you use one?

Group interviewing of people with a trained moderator directing discussion. • Hopefully you bring out deeper feelings and thoughts. Hear consumer ideas and opinions, observe facial expressions, body movements, group interplay, and conversational flows.

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?

In the past two decades, the US population has shifted toward Sunbelt states; the West and South have grown while the Midwest and NorthEast have lost population. Americans also continue to move from rural to metropolitan areas, More Americans continue to move to suburbs and "micropolitan" areas. • Changes in where people live changes where/how they work. It does make a difference when considering a marketing plan

As the economy shift, why is income distribution important to understand as income levels?

Increased income distribution has led to a tiered market • Must pursue the correct target market income level. EX: Nordstrom--affluent; Dollar General--those with modest means People are looking for more bang for their buck during the pandemic

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?

Industry competitors (middle), buyers, substitutes, supplier, potential entrants • Shows the give and take by the various forces affecting an industry

What makes "Cause-related" marketing programs effective and successful in trying to create partnership and new donors? Give some examples.

It can show customers that your brand cares more about selling x, it cares about the world's wellbeing, and many people want to support company's that are using their resources for good.

Airbnb has introduced a Disruptive Business Model into the Hotel industry. What has been the keys to their success and how have they customized their experience to the customer?

Make it all about the customer and really choosing your own experience- can feel like a really person in the place instead of a tourist- can make your own meals and feel like a localcan decide between house, apartment, or room

Provide a definition of key terms "a market" and "Marketing Management".

Market: set of actual and potential buys of a product or service, sharing a particular want or need. Marketing Management: design strategies that will engage and target customers and build profitable relationships with them.

What is "real-time" marketing and give an example of how advertisers are practicing it.

Marketers engage consumers in the moment by linking brands to important trending topics, real-world events, causes, personal occasions or other happenings in consumers' lives. Ex. Snickers mood rating on social media.

How does an advertiser create "Behavioral Targeting"?

Marketers mine consumer browsing information and target ads and offers to specific consumers

"Alternative Buying Evaluation" is an important process brand marketing teams must study. Why and what would one learn?

Marketers should study buyers to find out how they actually evaluate brand alternatives; if they know what processes go on, they can take steps to influence the buyer's decision

Define "Marketing Mix" and why is it important to a strategist to understand?

Marketing mix: set of tactical marketing tools - product price, place, promotion - A strategist can blend these tools to produce the response they want in the target market

Name 3 Marketing Information Data Bases you accessed in the Mendoza Business Library workshop.

Mintel, Statista and IBISWorld

What is NIKE' formula for success and what can be learned from studying the use of Marketing tools and strategy to differentiate themselves in the shoe industry?

NIKE works to sell a feeling, not shoes, All of their ads work to invoke emotion and inspire others, shift away from product focus and spend more time on attitude focus- people have an emotional bond with the brand- also get athletes to wear products, people want to be like them (Michael Jordan)

When using mechanical instruments for research, what is biometric measuring and neuro-marketing?

Neuro: use technology to track brain electrical activity--how consumers feel • Biometric: track heart and respiration rates, sweat levels, and facial and eye movement

What are Observational research, ethnographic research and experimental type research?

Observational: gathering primary data by observing relevant people, actions and situations. EX: Trader Joe's evaluates potential store location by checking traffic patterns, competitor locations, etc. • Ethnographic: sending trained observers to watch and interact with consumers in their "natural environment". EX: Coors researchers my go to bars • Experimental: selecting matched groups of subjects, giving them different treatments, controlling related factors and checking for differences in responses. Best suited for gathering casual information

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?

People find "value" in different things. • Changing economic environment → customers look for value for money → company's cater to this; Target "Expect More, Pay Less" • The key is to understand what value consumers look for and offer a value proposition that caters to it

Is perception more important than reality in marketing? What makes a "Complex buying" process different?

Perception: process by which people select, organize and interpret information to form a meaningful picture of the world (react to stimuli). Yes, it is what people perceive, it determines how they make buying decisions. —> A complex buying process is different in that these consumers are highly involved in a purchase and perceive significant differences among brands. Marketers have to differentiate their brand's features and inform the buyer. consumers may be highly involved when the product is expensive, risky, purchased infrequently, and highly self-expressive.

Ordering and wording can skew a questionnaire. How does it do that?

Personal questions first can cause respondents to become defensive • Wording can bias the response

What is the difference between a Product-Oriented and a Marketing Oriented description of a company?

Product-oriented descriptions say what a company does or creates, while marketing-oriented descriptions are defined in terms of satisfying basic customer needs.

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?

Relative market share vs. marketing growth rate • Question mark: High growth, low share • Dog: low growth, low share, just enough • Cash Cow: low growth, high share • Star: High growth, high share •Communicates the position of each of a company's SBU's (strategic business units), helping decide where to further invest funds

In Probability Sampling, what is the difference between Random, Stratified or Cluster Sampling?

SRS: every member of pop. has equal chance of selection • Stratified: pop. divided into mutually exclusive groups (like age), srs of each group • Cluster: population divided in groups (blocks) and takes a sample of groups and interview

How is "Social Class" measured in the United States? Is it an important distinction?

Social Class: relatively permanent and ordered divisions whose members share values interests and behaviors. • Measured as a combination of income, occupation, education, and wealth • Important distinction because a single factor does not determine it

What is a SWOT analysis and what can it reveal?

Strengths, Weaknesses, Opportunities, Threats • Gives a good idea of the competitive landscape of the company

How does "subculture" play a role in understanding the Consumer? What is a Total Marketing Strategy?

Subculture: nationalities, racial groups, geographic regions. These subcultures make up important market segments; marketers often design programs tailored to their needs • Total Marketing Strategy: practice of integrating ethnic themes and cross-cultural perspectives within their mainstream marketing. EX: cheerios commercials feature interracial families. Appeals to consumer similarities across segments rather than differences Ex: mcdonalds same salad was viewed differently by different ethnic groups.

Understanding Technological changes is vital for Marketers. Why and give an example?

Technology is affecting marketing since it is affecting how consumers learn about, shop for, buy and experience brands. This gives marketers exciting opportunities for understanding consumers, creating new products and engaging customers in more direct meaningful ways. The MagicBand at Disney allows you to personalize your experience. It can be used as a fast pass for rides or even as a credit card at their stores. • Improved technology allows for better, more precise marketing

Disney Resorts have provided excellent "customer experiences"? Name several strategies that they have used to increase business and gain customer loyalty.

The Disney bands have been big in making the experience great. Using the band as a fast past and credit card are helpful. You get a special experience just for you. Brand for the Disney magic. Disney is the only place in the world that can provide that Disney magic.

Why has the Amazon Business model been so successful?

The brand promise has been essential: quick, quality, cheap. They've also grown in areas like AWS and advertising

"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?

The company developed a brand without knowing what their product would be. The brand is one that attempts to elicit a response by harkening back to real, authentic america. They effectively target its audience through durable products, American manufacturing, lifetime guarantees, and industrial feeling retail stores —-> Consequently, customers like their brand so they also like their products. High demand → can sell bikes for several thousand dollars

Why is it important to study the Micro and the Macro environment?

The interplay of these factors is essential to understanding a company's success or potential therefore • Macro: important to know they were at the right place at the right time; target market and sentiment; threats and obstacles • Micro: who sees value--needs or wants; product positioning

How does Chick-Fil-A distinguish themselves from other brands?

They interact with customers to find out their wants and what they can do to make the Chik Fil a experience better for all; personable care for all, as if they really care that your experience is fully upheld. Consistent branding, employee involvement, corp. Culture, customer orientation, Role of service, sustainability

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.

They learned that consumers have distinct opinions about the taste of their product and the texture of chips as well as the bag type. They made a chip that retained well-liked qualities of ritz and those of chips

Netflix uses analytics to help improve customer satisfaction. What do they do?

They monitor what consumers watch and use big data insights to give customers what they want to watch through recommendations, deciding what programming to offer and what content to develop.

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 offered coupons for pregnancy items to a young girl... turned out she was pregnant. There should be checks in the research system, however, this shows that the research was highly accurate. Knew the girl was pregnant before her family

ECO-Dot by Amazon is a new platform for marketing into many homes. What are the Pros and Cons of this type of marketing and the effect it might have on the Family?

To some, it seems creepy to advertise it as a toy for a child, since they wouldn't know the difference or know its preferences would be used for marketing -pro is that it can be customized for your needs and makes purchasing/managing the home very easy -con is that it may be seen as a ploy to get the kids hooked on technology early on and viewed poorly by the parents -effects are that it could lead to neglect from the parent

What is "Marketing Analytics" and why is it so important in developing a marketing strategy?

Tools, technologies and processes by which marketers dig out meaningful patterns in big data • Used to gain customer insights and gauge marketing performance...important in developing market strategy bc you use big data and the analytics in finding a target market/seeing which areas of your company need to improve.

Customer Relationship Management relies on good measurement of "Touchpoints". What is a Touchpoint Analysis and what does one discover from a TPA?

Touchpoints: customer purchases, service and support calls, web and social media visits, satisfaction surveys, credit and payment interactions • Integrate customer information from all sources, analyze it, create a 360-degree view of customer in order to build stronger customer relationships

What is a "Value Delivery Network"?

Value Delivery Network: composed of the company, suppliers, distributors, and consumers who partner with each other to improve the performance of the entire system in delivering customer value

What is a "Value-Chain" Analysis? Why is it important to perform one for a company?

Value chain: series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products • To understand how the company creates value for its consumers

How has WOM influence risen over the past several years? What is an "Opinion Leader"?

Word of mouth influence has increased recently due to the emergence of online social communities. • Opinion Leader- people within reference group who, because of special skills, knowledge, personality or other exert social influence over others

Why does "post-purchase dissonance" and "cognitive" dissonance occur to many buyers?

• Dissonance: purchase expectation does not match purchase reality • Cognitive dissonance: discomfort caused by postpurchase conflict • So many consumers experience dissonance because every purchase involves compromise

Many products are considered "Habitual-Buys". Compare that to a "Variety-seeking buying behavior" environment. What are the characteristics of each?

• Habitual: low consumer involvement and little significant brand difference. Table salt • Variety-seeking: low consumer involvement but significant perceived brand differences. Buying cookies--choose brand without much evaluation and then evaluate during consumption. Next time they may switch to another brand out of boredom. Consumers that exhibit this often do a lot of brand switching rather than those who buy the same brand out of habit.

The "Rate of Product Adoption" varies from person to person. Why is that and where does one usually profile? Name the five stages or types of adopters.

• Innovators • Early adopters • Early mainstream • Late mainstream • Lagging adopters Five Stages of Product Adoption: Awareness, Interest (seeks interest), Evaluation, Trial, Adoption (purchase and continued use The goal is to first target innovators and early adopters because they influence the later adopters

"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 (whirlpool: emotional aspect of cooking and cleaning for your family. Not just associating themselves with the ability of their machines.)