Marketing Test 1

Why has the Amazon Business model been so successful?

Customers often buy more than they intend. Amazon continues to broaden its merchandise assortment, carrying hundreds of millions of products and creating an ideal pot for one-stop shopping. Based on each customer's purchase and search history, the company recommends related products that might be of interest.

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

Understand the marketplace and customer needs and wants Design customer value-driven marketing strategy Construct an integrated marketing program that delivers superior value Engage customers, build profitable relationships, and create customer delight Capture value from customers to create profits and customer equity

1. Provide a definition for "What is Marketing?"

Marketing is a social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others. In a more narrow context, marketing is the process by which companies engage customers, build strong customer relationships, and create customer value in order to capture value from customers in return.

What decisions must be made in the Growth Stage of the PLC to extend the life of a product?

To sustain growth company must improve product quality, enter new market segments, shift advertising and maybe lower prices. The firm faces a trade-off between high market share and high current profit.

6 Reasons to Invest in New products

improvements to existing investment solutions, cost reduction, repositioning, additions to existing investment solutions lines, new investment solutions lines, new to the world

How has the "Internet Revolution" effected marketing and what changes have come about?

increased reach, target advertising, social media, content marketing, data-driven marketing, e-commerce

How does "Crowd Sourcing" help in new product development?

invite broad communities of people into the new product innovation process

How can a company make a lot of money even in the Maturity stage of a product?

most successful ones are actually evolving to meet changing consumer needs. They should consider modifying the market (finding new users and market segments), product offering, and marketing mix.

Google Moonshot has a development process that is unique? Describe the process.

question everything and reimagines everything, assembled mix of curious individuals from a wide range of fields, collect different perspectives, prototype, test and reiterate until success

Customer-Driven Marketing

segmentation targeting differentiation positioning

STPD

segmentation targeting positioning differentiation

Style, fashion, fad... how does time differ for each?

style: basic distinct mode of expression - goes in and out of style fashion: currently accepted or popular style in given field - slow peaks and then downturns fad: temporary periods of intense sales driven by short-term enthusiasm - sharp climax and quick downturn

Five Forces

supplier power, buyer power, competitive rivalry, threat of substitution, threat of new entry

45. 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

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

• Define the problem and research objectives-- guides entire process • Develop the research plan for collecting information • Implement the research plan and collect/ analyze data • Interpret and report findings

85. How does the corporate B2B buying process differ from the B2C process? What steps are different in each.

• Derived demand--business demand derives from the demand for consumer goods • Inelastic and more fluctuating demand--demand for business products is not much affected by price changes • Far fewer but far larger buyers; far more complex buying decisions, process is longer and more formalized A B2C process only involves recognizing a need, finding the right brand, and postpurchase behavior. It is a much simpler decision and evaluation process.

76. 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

27. What are the 8 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. o Market description o Product review o Review of competition o 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

75. 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

114. What is a "Positioning Statement" and why is it important?

A statement that summarizes company or brand positioning using: To (target segment and need) our (brand) is (concept) that (point of difference). It differentiates the brand

What is the difference in a "House of Brands" and a "Branded House" in Portfolio management?

A "House of Brands" strategy refers to a company that has a portfolio of distinct and independent brands, each with its own unique identity, positioning, and marketing strategy. The parent company may not even be visibly to consumers. Examples of this would be P&G and General Mills. A "Branded House" strategy refers to a company that promotes its corporate brand as the primary brand, with individual products and services operating under that brand umbrella. In this approach, the corporate brand is highly visible to consumers. An example of this would be Disney.

What are some of the reasons that carrying a weak product in decline can hurt the company and be very costly?

A weak product may take up too much of management's time. It often requires frequent price and inventory adjustments. It requires advertising and sales-force attention that might be better used to make "healthy" products more profitable. A product's failing reputation can cause customer concerns about the company and its other products.

Mattel has been extremely successful managing the Product Life Cycle of the Barbie Doll? Describe what they have done and implemented and why is it so important for their survival.

Adding new features, accessories, and themes to keep the brand fresh and relevant, movies, partnered with major fashion designers and celebrities to create limited edition Barbie dolls and clothing lines

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

Advocate - individual who advocates for brand but remains formally unaffiliated ambassador - individual who is allied with brand or their cause citizen - people who have greater than average influence through their social network professional occupation - individuals who through their job are in a position to influence other directly celebrity - individual whose name recognition commands public fascination

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?

AirBnB aims to give its customers a "live-like-the-locals-experience," helping them engage with people and immerse them in local culture. AirBnB differentiates itself from cookie-cutter hotel chains, creating a product and service that is more desirable to a large number of travelers.

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 money primarily through its e-commerce platform which allows individuals and business to buy and sell goods online. They also generate revenue from its cloud computing platform, advertising services, and subscription services. By continually reinventing itself Amazon has been able to stay at the top of its industry

119. How does "Behavioral segmentation" help improve customer loyalty or "occasion" shopping on holiday's or "Benefits" segments?

Behavioral segmentation- Dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product Benefit segmentation- Dividing the market into segments according to the different benefits that consumers seek from the product Marketing occasion shopping increases profits in certain parts of the year, such as Starbucks selling Fall-themed beverages. Marketing benefit segments allows a company to target different benefit seeking customers with varying products. (Ex: Fitbit)

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

Behavioral targeting uses online consumer tracking data and analytics to target ads and marketing offers to specific customers. Social targeting mines individual online social networking activity for the purposes of target ads and marketing efforts. Although behavioral and social targeting can benefit consumers with more relevant ads and products, if overdone or done badly, it can also strike customers as more than just a little creepy

How is a brands' value determined and why is it important? What is brand equity?

Brand value is the total financial value of a brand. Brand equity is the differential effect that knowing the brand name has on customer response to the product or its marketing. It is a measure of the brand's ability to capture consumer preference and loyalty.

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

Cause-related marketing programs can be effective and successful in creating partnerships and new donors because they align a brand's marketing efforts with a cause or social issue that resonates with their target audience. Toms Shoes - Toms' "One for One" campaign donates a pair of shoes to a child in need for every pair of shoes purchased. Patagonia - Patagonia's "1% for the Planet" campaign donates 1% of their annual sales to environmental organizations.

53. 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

Why would someone want to "Co-Brand" their product and what are the potential problems?

Co-branding is the practice of using the established brand names of two different companies on the same product (Uber partner with Spotify). Co-branding can involve complex legal contracts, partners must carefully coordinate advertising, and there must be trust between partners

5 C's of Marketing

Company (products, competitive advantage, brand) Collaborators (investors, suppliers, service providers) customers competitors climate (laws, social trends, tech)

What is the difference between types of Consumer products - Convenience, Shopping, Specialty or Unsought - and their Pricing and Promotion?

Convenience: frequent purchase, little planning, low price, widespread distribution, mass promotion (toothpaste) Shopping: less frequent purchase, purchase effort, higher price, selective distribution, advertising and personal selling by producer and reseller (major appliances, furniture) specialty: strong brand preference and loyalty, special purchase effort, highest price, exclusive distribution, carefully targeted promotion (luxury good - Rolex) unsought: little product awareness, prices and distribution varies, aggressive advertising and personal selling (life insurance)

What is the difference of the three levels of Products - Core, Actual or Augmented? Give an example by using Apple iPad.

Core Product - The core product is the fundamental benefit that the customer is seeking when they purchase the product. It refers to the primary reason why a customer would want to buy the product in the first place. Actual Product - The actual product refers to the physical product itself, including its features, design, and packaging. This includes the product's attributes such as color, size, style, and other product specifications. Augmented Product - The augmented product refers to the additional services and benefits that come with the product. This includes after-sales service, warranty, delivery, installation, customer support, and other benefits.

Internal Environment

Goals, objectives, culture human resources financial resources production and supply-chain service capabilities research and development and technological capabilities

Why was Alphabet formed by Google to help their new product develop management?

Google created parent holding company called Alphabet to contain all of its ventures and innovations. Many of X innovation lab's projects become Alphabet companies.

84. How does the IBM Sales Model for Business to Business relationship selling work? What are the Pros and cons of this business model? What is "Solutions Selling"?

IBM partners with a smaller set of big buyers to solve they complex analytics problems. They found that customers need total solutions to increasing data issues. Pro - loyal and happy buyers. Con - not a large market Solutions selling is buying a packaged solution from a single seller, avoiding all separate decisions involved in a complex buying situation. Complex, difficult to implement and expensive

How does a company nurture and develop a community of "Early Adopters" for their product?

Identify target audience, create compelling content, offer early access, build a community, listen and respond, leverage influencers

The "New Product Screening" process says one should ask three questions - R, W, W. This stands for - Is it real? Can we win? Is it worth doing? What does this mean?

If company can answer yes to all, they should further develop product

115. A companies' "Value proposition" is written to communicate Brand image to the "intended" target market. What are the key elements of a value prop?

Importance, distinction, superiority, affordability "Why should I buy your brand?" Key elements of a value prop is to give more value for a lower price

35. Does it make a difference if there has been a "geographic shift" in the country for marketing brand managers to consider in their marketing planning?

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

Airbnb has a successful business model that use all four characteristics of service. What do they do to make sure they are in tune with their target market?

Intangibility: must book airbnb to truly experience is Inseparability: airbnb would be nothing without its hosts Variability: each host and listing is independent Perishability: is time slots are not booked they go unused

Why is "internal marketing" so important in the "services" business?

Internal marketing orients and motivates customer-contact employees and supporting service employees to work as a team to provide customer satisfaction But in services marketing, service quality depends on both the service deliverer and the quality of delivery. Service marketers, therefore, have to master interactive marketing skills. Wegmans hires only the people who fit the company's culture and instructs them carefully in the fine art of interacting with customers to satisfy their every need.

What does it mean to "Commercialize" a product? What role does marketing play?

Introduce a new product to the market. Company must decide production timing and where to launch

What is the PLC - Product Life Cycle and why is it important to understand?

Involves product development, introduction, growth, maturity, decline. Marketers can apply the product life-cycle concept as a useful framework for describing how products and markets work. And when used carefully, the PLC concept can help in developing good marketing strategies for the different life-cycle stages

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

Mergent, Factiva, IBISWorld

Marketing Planning Process

Mission Situational Analysis Marketing Strategy Marketing Mix Implementation and Control

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

Needs were not created by marketers; they are a basic part of the human makeup. Wants are shaped by one's society and are described in terms of objects that will satisfy those needs. Given their wants and resources, people demand products and sservices with benefits that add up o the most value and satisfaction.

Why are new products introduced to the Marketplace?

New products are important to both customers and the marketers who serve them: They bring new solutions and variety to customers' lives, and they are a key source of growth for companies.

93. Proctor and Gamble are Strong Advocates of treating their Customers like Partners. What are they doing to demonstrate that and how do they make sure their Clients are successful?

P&G's CBD structure makes sure that everyone is taken care of. The article says they are treating customers as "strategic partners," which in effect is true, but more so this program lets them treat customers as family. Rather than focus solely on the sales of P&G products, P&G CBD team makes sure that the stores are selling as many products as they can-even if those are competitors' products. They are focusing on "mutually beneficial relationships" so they can both improve their sales and respective customer relations.

PESO Model

Paid (sponsored posts), Earned (publicity), Shared, (partnerships, influencers) Owned (content from experts, customer stories, reviews) Media

How has "Artificial Intelligence" changes to B2B marketing environment for the better? What new capabilities will AI provide to B2B players?

Personalization - Predictive analytics Sales automation Targeted advertising

PESTLE

Political Economic Social Technological Environmental Legal

There are many challenging decisions involving brands - positioning, name selection, sponsorship and development. Give examples of each these decisions.

Positioning comes at three different levels: first product or service attributes (FedEx speed or quality), desirable benefit (FedEx peace of mind knowing they'll be there on time), and beliefs or values (FedEx knows what those packages delivered means to the people shipping and receiving them)

8 Steps B-to-B Business

Problem recognition General need description Product specification Supplier search Proposal solicitation Supplier selection Order-routine specification Performance review

4 P's

Product Price Place Promotion

Explain the five decisions one has to make about individual product marketing - Product Attribute, Branding, Packaging, Labeling/ logos and Product Support services?

Product attributes - This decision involves determining the key features and benefits of the product that will appeal to the target market. This includes things like size, color, design, quality, and functionality. Branding - Branding involves creating a name, logo, and visual identity that represents the product and the business. It's important to develop a brand that is unique, memorable, and resonates with the target market. Packaging - Packaging plays a crucial role in product marketing as it is often the first thing a customer sees when considering a product. Packaging should be visually appealing, informative, and functional. Labeling/Logos - Labels and logos are an essential part of product marketing as they communicate important information about the product, such as ingredients, nutritional information, and product certifications. They should be clear, concise, and easy to read, and align with the brand image and product attributes. Product support services - Product support services include things like warranties, customer service, repair and maintenance services, and online support.

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?

Product innovation serves as the cornerstone of Nike's success. Nike revolutionized sports marketing by outspending competitors on big-name endorsements, promotional events, and ads. Instead of stressing technical performance, Nike built deep engagement and a sense of community with and between Nike brands and customers. Nike markets a way of life.

18. 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.

Idea Generation is the life-blood of New Product Development and internal sources, external ideas, Crowd-Sourcing are all methods for new products to be introduced. How does Bose get new ideas?

R&D

Intuit's "Design for Delight" philosophy has helped their product development in what way? What is Intuit's "Creative Destruction" process?

Rather than protecting its successful products, intuit systematically reinvents them before competitors can. Intuit's products stay in perpetual PLC growth stage, never reaching maturity. To fuel its creative-destruction machine, Intuit proactively and obsessively studies its customers and the marketplace.

Influence

Reach, relevance, resonance

RFP

Request for Proposal

Psychological Factors Affecting Consumer Behavior

Selective Attention (people screen out most of info they are exposed to) Select Distortion (interpret info to support beliefs they have) Hyper-Personalization Neuro-Marketing

Organizational marketing programs are conducted by many companies to enhance their corporate image and their brand. What is "Social Marketing" and how does it help a company?

Social marketing is the use of traditional business marketing concepts and tools to encourage behaviors that will create individual and societal well-being Many companies engage in social marketing to support ideas they believe in. Microsoft's "Make What's Next" campaign encourages girls to enter tech and science fields.

What is the "Starbucks Experience" and why does it work?

Starbucks didn't sell just coffee, it sold the "Starbucks Experience"—"an uplifting experience that enriches people's lives one moment, one human being, one extraordinary cup of coffee at a time." tarbucks gave customers what it calls a "third place"—a place away from home and away from work. At Starbucks, the smells, the sound of beans grinding, and watching baristas blend and brew the brand's specialty coffees all became as much or more a part of the customer experience as the coffee itself.

42. 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

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?

Tesla's success is not solely based on beating their competitors but rather on growing the overall electric vehicle market. This means that they need to work with their competitors to create a reliable and convenient charging infrastructure that will encourage more people to purchase electric vehicles

Define what is the "Product Mix" or sometimes called "Product Portfolio Mix".

The set of all product lines and items that a particular seller offers for sale

What is the purpose and use of a Brand Logo and why are some companies doing "makeovers"?

Thus, many brands are adapting their logos to meet the needs of new digital devices and interactive platforms such as mobile apps and social media.

Why is the question, "What is a Product?" not so simple to answer?

We define a product ​​as anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. Products include more than just tangible objects, such as cars, clothing, or smartphones. Broadly defined, products also include services, events, persons, places, organizations, and ideas or a mixture of these.

67. 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

What are the many definitions of a "New Product" and why must a branding and marketing program be developed for each?

completely new product, altered former product, new product to company

International product and service Introduction must consider several critical issues. Name several issues and what the risks when introducing those products in other countries or regions.

cultural differences, legal and regulatory requirements, infrastructure and logistics, language and communication, market competition

Brand Essense Prism

externalization: physique, relationship, reflection internalization: personality, culture, self-image

Important decisions must be made by a company at each step of the PLC. In the introduction stage, why must a toy maker look at in the current product line when introducing new products?

market demand, competition, product benefits, distribution, and branding

Marketers' roles in New Product Development might include testing by the consumer of new products. What advantage does involvement by the marketer have for the Process?

marketer develops the new product into alternative product concepts to serve different target customers. answers to concept testing will help the company decide which concept as the strongest appeal

What is the difference between product idea, product concept and a product image?

product idea: idea for a possible product that the company can see itself offering product concept: detailed version of the idea stated in meaningful consumer terms product image: the way consumers perceive an actual or potential product

24. Before one can develop a good Marketing Strategy it is important to perform a "Situational Analysis. What are the key components in a SA?

• 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

80. 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: Consumer may form purchase intention based on a factor, but unexpected events may change purchase intention. EX: economy might make a turn for the worse

44. Big Data often scares many consumers. Why is that? What can go wrong? What are the positives of having Big data systems available to companies?

• Big data can pose a threat to the privacy of consumers; gathered information can fall into the wrong hands or an be used in the wrong way • Positives: its a great source of data, gives a holistic view of consumer base

Pearson also says "Brand Essence" is everything. Why such a strong emphasis on this concept?

• Brand essence is the heart and soul of a brand; it is crucial because it is what makes consumers attracted or not attracted to a brand. It tells the customer how to think, feel, and act about the product. Without a brand essence you cannot have brand loyalty and your product simply becomes a need. You want it to be both a need and a want. How should the public perceive your brand?

20. ESPN is a part of the Disney Portfolio. How does it effect 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.

86. What is a Buying Center? How do business use them and why is it important for marketing to understand the dynamics of the Process? Who are the participants?

• Buying Center: All of the individuals and units that play a role in the purchase decision making process • It is important to understand this process because within the process there are various ways in which this process can take place; it is far from fixed. Additionally, the business marketer must learn who participates in the decision, each participant's relative influence, and what evaluation criteria each decision participant uses • Participants: Users-must use product/service Influencers-provide information for evaluating alternative products Gatekeepers- control the flow of information to others Buyers- contact the selling organization and place the order Deciders- final authority to purchase

112. Companies and Brand Managers look for competitive advantage through a "differentiation" strategy and careful product positioning. Give an example of how they might implement this type of strategy and development of their product's image/ essence.

• COMPETITIVE ADVANTAGE: advantage over competitors gained by offering greater customer value either by having lower prices or providing more benefits that justify higher prices. Companies all want to be different on the market so that people have a reason to purchase from them. At IHOP you "come hungry leave happy." This positioning emphasizes two things: the food is good and the atmosphere will make you leave feeling happy. It is important to establish what value the customer will be receiving from the brand.

4. 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

37. What are the changes seen for marketing because of "Environmentalism sustainability and social responsibility" as reflected in their branding and product development?

• Companies have realized that 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

9. How does Chick-Fil-A distinguish themselves from other QSR's?

• Consistent branding, employee involvement, corp. Culture, customer orientation, Role of service, better service than the competition

70. Lifestyle might be the most accurate way to study and identify groups. Why is it becoming so very important when you study a consumer behavior market?

• 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

30. The chapter talks about "Brand Essence". What is it and why is it vital for a company to understand it?

• 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

28. Michael Porter described three basic forms of competing - Cost Differentiation and Niche? What are each strategy and what are the advantages and disadvantages of each?

• Cost: price • Differentiation: involves actually differentiating the firm's market offering to create superior customer value • Niche: finding small segment and pursuing it

64. 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

43. "Customer Insights" are achieved through market research touchpoint analysis, primary and secondary collection and competitive intelligence? Define how each are conducted and the value of each method.

• 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

13. "Customer Lifetime Value" and "Customer Equity" are two vital concepts each company needs to understand. What implications do they have for building marketing plans and strategy?

• Customer Lifetime Value: 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

40. "Social Media has gotten nasty". Give an example. Is this good or bad? 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

7. 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)

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

• Customers play role in shaping their own brand experience and those of others. • Uninvited consumer to consumer exchanges in blogs, social media, etc. • Invited input, collect ideas from customers

91. Business to Business Social Media and Buying Process is rapidly changing. How is it being effected by the Internet and the Connected-world?

• E-procurement: online purchasing has grown rapidly in recent years; shaves transaction costs and increases efficiency Reverse auctions: put purchasing request online--suppliers bid Trading exchanges: companies work collectively to facilitate the trading process Company buying sites: post buying needs and invites bids, negotiates terms, and places orders B-to-B digital and social media marketing: uses these to engage business customers and manage customer relationships anywhere, anytime Targets individuals in businesses who affect buying decisions

62. 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)

69. 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

16. 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)

34. 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

104. Four examples of Segmentation are Geographic Demographic, Psychographic and Behavioral?

• Geographic: take region of the world/country and assume they will be attracted to a product for the sole reason of geography o Target offers smaller stores for urban neighborhoods • Demographic: age, life-cycle state, gender, income, occupation, education, religion, ethnicity, generation o McDonald's assigns brand managers to segments of different demographic groups (young adults, latinos, etc. • Psychographic: lifestyle, personality o psychologically, some people want to be part of a group; shape brand to appeal to this group o Anthropologie sells a lifestyle brand to which young women customers aspire • Behavioral: occasions, benefits, user status, usage rate, loyalty status o Starbucks pumpkin spice lattes during autumn; fitbit makes products to fit benefit preference of different segments

68. MOM as Brand Ambassador's programs have been very successful. What is the good news and bad news for a company to use this approach in their marketing?

• Good news: 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

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

• Greater consumer empowerment -- attract customers rather than interrupt them- Shift has been made due to social media, no longer viable to simply run a bunch of annoying and interrupting ads on tv or videos. now it's more of attracting people to your brand through engagement online, wanting active participation. feelings and messages that engage rather than interrupt consumers.

48. 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.

117. McDonald's does Segment and Target Marketing by dividing their customers into what kind of groupings and segments. Would you do it their way?

• Groupings and segments: different kinds of demographic groups (young adults, african american moms, young latino's, etc. (Happy Meals, southwest Chicken salad ect.) • Segment managers look for what compels his or her segment. Pass this information to creative team, who work this all together. • I think this could be problematic because it is difficult to shape a brand to be compelling to each segment

88. How do Business Buyer Behaviors vary in their decision process and decision criteria?

• Heavily influenced by factors in economic environment--primary demand, economic outlook, cost of money • Supply of key materials • technological, political and competitive developments in environment • Culture and custom

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

• Improved technology allows for better, more precise marketing • EX: salesforce - Created CRM technology to better target consumers based on data

36. 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

29. Five Force Model by Michael Porter analyzes the broader scope of an industry and its' competitors? Why is this important and vital for a Chief Marketing Strategist to consider?

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

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

• 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 Want to target innovators and early adopters because they influence the later adopters

94. Dole Foods conducts a rigorous Procurement Process and requires their suppliers to perform many tasks to qualify as a source for food. Why is that so important for their business and how do they make sure they keep improving as a company?

• Maintains product quality--quality assurance; upholds brand image of quality • Make suppliers meet rigorous standards and always have at least three at a time in case there are any issues in the supply chain

6. 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

49. How does an advertiser create "Behavioral Targeting"?

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

102. What is "Market Segmentation" and why is it an important first step?

• Marketers realize that they cannot connect to all customers, at least not in the same way. Break customers up into "segments" • Market Segmentation: Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes

79. "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

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

• Marketing during major media events such as Super Bowl, Grammys and Academy Awards • EX: Lights go out during superbowl -- Oreos tweets "you can still dunk in the dark" • EX: Lebron leg cramps, Gatorade says "our athletes don't get cramps" roasting Powerade

23. 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

59. McDonald's Test Kitchen at Hamburger U developed many ideas for new products. What went wrong in their introduction with "Arch Deluxe" product line launch and what are the implications to market research?

• McDonald's tried to go upscale with a burger and tried to sell on taste; the company's customers don't go to the restaurant for these reasons. They didn't know what customers wanted so they didn't offer a product that appealed to customers. Shows that market research can get things wrong, must be thorough

110. Because of change in technology and access how has "micromarketing" and "local marketing" become possible and more common? Is "Individual" or "hypertargeting" possible and good.

• Micromarketing: practice of tailoring products and marketing programs to suit the tastes of specific individuals and local customer segments; drives up marketing costs by reducing economies of scale; logistical problems • Technology allows firms to track locations and searches of individuals and suit offerings to their wants and needs • Individual marketing: tailoring products and marketing programs to the needs and preferences of individual customers o Detailed databases, robotic production and flexible manufacturing, and interactive technologies make this easier; possible but potentially expensive

52. 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

109. Niche or concentrated marketing has great advantages. What is the good and bads consequences of picking it as your product strategy.

• Niche/concentrated marketing: firm goes after a large share of one or a few smaller segments or niches • Allows firm to achieve strong market position because of its greater knowledge of consumer needs in the niche it serves. More effective and efficient. Good for small companies • Increases risk. Companies that rely on one or a few segments for all business will suffer greatly if segment turns sour

32. Nike's "Risk Everything" campaign was very successful. What was their strategy and formula for success?

• Nike wanted to make people feel a certain way. At the end of the day, soccer unites us all. Everybody is just a kid playing out on the local field with their friends. Competition.

83. "Emotional Branding" to Moms had several key attributes identified to make an advertisement successful. What were some examples?

• Nirvana mom--everything is perfect • Sacrifice-- everything you've done for your kid • Commiseration-- being a mom is tough The Dad as stupid

113. Aldi's has a very precise Brand Differentiation for their stores as they try to reach their target market. What is it and how have they implemented it.

• No frills, low costs; less-for-much-less value proposition • Cut some of the amenities of typical grocery stores (bags, SKU's, cart return employees, credit cards) to cut costs and, thereby, cut prices for consumers • High quality, basic grocery items, at very low cost

47. 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

38. Patagonia used the slogan "Conscious Consumption" and "Don't Buy this Jacket? What was their strategy?

• Patagonia was playing to their environmentally conscious message, which resonates with their target market (This campaign appealed to many of their consumers who dislike consumerism and capitalism) • Suggesting you only buy what you need. Customers are going to buy something no matter what so why not from a company they perceive as environmentally friendly?

15. The term "Value" is relevant to different people but it makes for a challenge for a marketing team. Why is it key to understand the many different types of value in product selection?

• 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

74. 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.

54. 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

90. Describe the steps in the typical B2B Buying Process. What is an RFP QA process and VPA (Performance Review).

• Problem recognition- Someone in the company recognizes a problem or need that can be met by acquiring a specific product or service. • General need description- Describes the characteristics and quantity of the needed item • Product specifications- Determines the best product characteristics (based on cost/durability/quality) • Supplier search- involves compiling a list of qualified suppliers to find the best vendors • (RFP- request for proposal) Proposal solicitation- is the process of requesting proposals from qualified suppliers A QA process is a quality assurance test to make sure the products meet all of the specifications and looks for any mistakes. • Supplier selection- is when the buying center creates a list of desired supplier attributes and negotiates with preferred suppliers for favorable terms and conditions • Order routine specification- The buyer writes the final order with the chosen suppliers, listing the technical specifications, quantity needed, expected time of delivery, return policies, and warranties • Performance review: May lead buyer to continue, modify or drop the arrangement (A performance review is when the buyer assessed the supplier and considers the future)

60. Big data is used effectively by Target to analyze their customers' needs and preferences. What mistake did they make in divulging their findings to a young shopper's family? What does this say about research?

• They 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

111. What is a "Product Positioning" map and what does it tell you about how a company wants to work with their target market?

• Product position: the way a product is defined by consumers on important attributes • Maps show the cosumer perceptions of brands versus those of competing brands on important buying decisions

8. 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 firm undertakes large scale promotion and selling efforts → focus on promotion and selling • Marketing: achieving goals depends on knowing needs and wants of 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 longterm

19. BCG Consulting uses a "Portfolio Analysis" Methodology for their customers showing "Growth-Share Matrix? How does it work and what can you communicate with it?

• Relative market share vs. marketing growth rate • Question mark: High growth, low share • Dog: low growth, low share • 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

87. The three types of buying situations are straight rebuy modified rebuy and new task buy. What difference in approach, costs and structure does each have?

• Straight rebuy- buyers reorder something without any modifications; handled on a routine basis; to keep customers "in" suppliers try to maintain customer engagement and product/service quality • Modified rebuy- buyer wants to modify product specifications, prices, terms or suppliers; "in" suppliers become nervous and feel pressured to put best foot forward to protect an account • New task- company buying product or service for the first time. The greater the cost or risk, the large the number of decision participants and greater the company's efforts to collect information. Marketer's greatest opportunity and challenge

26. 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

65. 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

98. What is a "Supplier Development" program like DOLE practices and why is it important tool to improve your business process.

• Systematic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials for use in making products or reselling them to others • Important in preventing low inventory or whatnot

103. "Targeting" your audience helps a company in many ways. How is it necessary for a Marketing Strategy to have a statement and focus on a target?

• Target market: set of buyers who share common needs or characteristics that a company decides to serve • Target Marketing: identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each • So that they can focus on where they will make their money. Cannot appeal to all consumers in the same way; pick their battles

33. Why is it important to study the Micro and the Macro environment? Use FITBIT as an example.

• 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...Micro: Fitbit studied the market for fitness tracking devices and realized that there was no great options for consumers. Macro: Fitbit realized that there was a growing fitness and wellness trend that many people were attracted to. Companies also sought to reduce healthcare costs and decided to purchase Fitbits to keep employees healthier.

78. Ritz Crackers are an iconic brand. How did they conduct research and what did they learn about the consumer buying habits that helped them launch Ritz chips.

• 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

57. 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

56. 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

55. 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

22. 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

21. What is a "Value-Chain" Analysis? Why is it important to always 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

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

•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