MKT 3401 Karam Midterm
7% Verbal Arrangement
- Not content, we are talking about likeability - the way you arrange your words - Need good AGM
Customer Satisfaction
-Not happy, SATISFIED -Hard, Important, and Critical
Need Recognition
-Once you recognize, you go to purchase. -Figure out how to buy it...
Visibility
-Social Media is a world platform. It is a way to speak, be seen, carry your brand in a way that is important for visibility. -Brands always want people to be an extension of their brand because of the visibility they have.
Flinch
-Tactic used by people in negotiations to influence the person across the table. -"Are you crazy" -Usually when you flinch, the other person caves in. -To deal with flinch: Maintain poise and DO NOT FLINCH BACK
Switching
-Taking my money from here to over there -Changing from walmart to winn dixie -If prices are unfair, people switch
What are John Camp's keys to being successful?
1) Market yourself 2) Sell yourself 3) Network/know people 4) Maintain contact
4 Purposes of a Product Label
1. Construction 2. Instruction 3. Nutrition 4. Cognitive Dissonance (self doubt following a purchase)
3 Primary Marketing Concepts
1. Customer Value 2. Customer Satisfaction 3. Creditability
Market Analysis
3 parts: Company, Customers, and Conditions Think of it in college terms: It's the relationship between LSU (company), the students (customers), and the changes in the environment LSU has to adapt to make the customers happy (such as adding online classes as a response to technological advances in the external environment).
Name an example of social factors as conditions
9/11 - airplane industries shut down; luggage only allowed below plane unless very small Samsonite adapts to those changes, designs piece of luggage compact enough for overhead
The Summer of Plastic-Straw Bans: How We Got There
Adding to the movement's success is its lack of organized opposition
What are three killers of vocal delivery?
Boring Bitter Arrogant
Co-Workers
Do the employees get along with each other/like one another?
Why It's So Hard to Be an 'Ethical' Investor
ESG is how active fund managers differentiate from active managers
Level 2: Strategy Development
Level 2: Strategy Development -Segmentation -Targeting -Position of the Product
How is pricing important?
Misplace and it hurt your brand. What's wrong with pricing too low? Karam could have gone to Switzerland, but he only charged $200 an hour, and he didn't seem credible. He sold himself too short.
How do you measure employee job satisfaction?
Money Promotion Co-Workers Supervisors Customers Company
Direct Mail
More money spent on DIRECT MAIL than ANYTHING ELSE! Everyone does it In the political campaigns, the greatest way to reach a target market is through direct mail. Zip codes, you can target anyone in that area. You switch to another zip code, you change the message. That little card you send is going into someone's mailbox. During the holidays it comes in bundles, large packages, etc. and that person can CREATE that direct mail piece that stands out among all that clutter.
The Summer of Plastic-Straw Bans: How We Got There
Now, many large U.S cities have banned plastic straws from being sold to consumers
Odd-Even/Psychological Pricing
Numbers that end in an odd number are perceived as cheaper and better bargain (Wendy's .99 cent burger vs dollar burger) Numbers that are rounded are seen as a little bit higher quality (Jubans, Mansurs, straight 0s)
Supermarkets Deploy Sausage Stations, Dad Jokes to Lure Male Shoppers
One company introduced beer dens where customers can drink while they shop or get a half gallon jug filled with craft beer (bring this shit to BR asap)
Supermarkets Deploy Sausage Stations, Dad Jokes to Lure Male Shoppers
One guy said he would buy angel food cake or doughnuts for the kids, however his wife would never buy that
Risks in Sponsorships
One main reason why sponsorships fail- AMBUSH MARKETING. Whenever you just paid all this money and were guaranteed all these benefits and someone sneaks in and grabs all those benefits for FREE. You are the one being ambushed. You want to make sure you can PREVENT ambush marketing
Performance
P1
personal branding =
P1 + P2 + V x T
What is the most important component of a product?
Packaging - this sells the product
Name examples of rebranding
Panera Bread --> Panera; no longer specializing in bread, but sandwiches and stuff too Starbucks --> can sell $15 cup of coffee just because they can
What is the formula for personal branding success?
Performance + Personality + Visibility x Trust
switching
Poor core service failure, service encounter failure, price, inconvenience, traction from competitors and unethical behavior are reasons for what?
Showrunner
President of the United States; type of person who is spellbound; dynamic
Status Quo Pricing
Price match competition. Match product and hope it doesn't negatively affect product
odd/even pricing
Price of jewelry prices at $799.99 example
price skimming
Pricing a product at the highest level market can bear can get away with this with little/no competition; when competition catches up, price must be adjusted ex) Starbucks' $15 cup of coffee ex2) 51% of Mercedes are leased
price skimming
Pricing tactics that tells you to set price high
If you're in your own business you have to: (Concerning failures)
Recognize failure takes place. Step up to show you're doing something to repair the bad situation. Acknowledgment and apology. -Tone of voice and "the look." matter a lot here Karam Story: His friend opened up Walk On's. Owner's son made the attempt to pay for Karam's table's bill because the restaurant ran out of food - form of RECOVERY. Then someone in town for an LSU game asked Karam where a good place is to eat before the game and Karam REFERRED them to Walk On's.
Failure takes place, how do you recover?
Recovery: When you're able to overcome the failure. Whole industry in marketing is customer service recovery. When failure takes place, it's YOUR job to have a plan in place to overcome it. Some companies have a systematic way to overcome failure Ex) Overbooking is a failure in the airline industry- they'll bump you up if the flight is too booked.
What are the results of good customer service?
Referrals Reduced effort to sell Premium pricing
Rihanna Becomes Face of Puma
Rihanna joined new marketing campaign called "Forever Faster"
$300M for Aging Federer? Uniqlo Thinks So.
Roger Federer signed with Uniqlo after being with Nike for 20 years
True
True or False: Customer Satisfaction leads to referrals, increase in usage, reduce selling effort, premium pricing.
True
True or False: McDonald's "Healthy Eat" campaign drove up sales by 7%. It repaired the brand.
True
True or False: So that means Retail Mix is Product, Price, Place, Promotional, and Presentation.
Routine Choice
carried out automatically, with little conscious effort. As such, it involves no information search or deliberation.
Lost Leader
Sell a particular product has to be a name brand quality product. Liter of coke priced for 50 cents rather than $1. Lure consumer in with 50 cent but put regular priced chips and dips near it.
Color
Serves as a source of identifier
Name two examples of value in a product
Taco Bell's ability to inexpensively feed a family - the benefit = fed family Super Bowl v expensive but people pay for value of 'seeing game of a lifetime' benefit = can bring a client who's going to buy my product/mend my relationship
conditions
Technology is considered one of the changing ____________ of society
Purchase
The actual action in PERSUASION.
If everything is good, Why do consumers still switch?
The attraction from the competition. Ex) Towne Center, Perkins Rowe. If you can control the BIG 4 (above of relationships)
Yes
Smell is another form of promoting a product via packaging?
38% Vocal Delivery
So many distractions, have to get people to listen to you -hold their interest through distractions
Trust
T
Societal Orientation
TOMS focuses on what marketing management philosophy?
Articulate
deliver memorable info
purpose of a label
construction, instruction, nutrition, and cognitive dissonance
Maintain Contacts (Networking)
easiest and hardest to do; long-term relationships
Segmentation
effective part of level 2-Strategy Development; identification, accessible, responsive, substantial enough
Service Profit Chain
employee job satisfaction will lead to good customer value which will lead to customer satisfaction which will lead to customer loyalty which yields profits
Head Movement
engage audience but do not overreact to facial expressions of audience
Referrals
free advertisement in external environment; can drive a business; you ask someone's opinion
What is the "Information search" in a consumer decision - making process?
get as much information as you can to make the right decision. The more convenient the product the less risk.
Thin Slice Concept
images and personal brands are created in as little as 1/24th of a second. A brand can be created or destroyed that fast
What are the two types of warranty?
implied (bring it back, we'll replace; you assume it will be good) written (give us certain amount of money, we'll take care of it)
Tactics of Pricing
important because they make you a better seller of the product and a smarter consumer of the product
Visibility
in social media it is a platform; a way to be able to speak, be seen, and carry your brand; paramount and critical
Personality
in terms of personal branding means being unique
Visibility
in the social media world is a platform a way to be able to speak, be seen, carry your brand in a way that's important for visibility
Persuasion
is a conscious act to change or modify the behavior of a consumer and lead them to a predetermined goal.
Recovery
is when you're able to overcome failure
Personality
it can be edgy, unique, athletic etc.
Position/Status
people are going to want to listen to people with power more than they will want to listen to people that don't. You generally will trust higher-up people more ➢ For instance, would you rather talk with the CEO of a company, or an intern?
Increased Usage
people hear good things about product/service they are likely to try it too
formula for personal branding success
performance+personality x trust
Default Look
personal branding and someone's facial expression starts with this look. It is simply the everyday look that you have when you are going about your business and people are looking at you.
P2
personality
mystery shopper
poses as a shopper then rates/ explains experience; purpose is to find possible source of prospect theory
Pricing
price unreasonably high/deceptive
3 functions of a product packaging
store and protect, facilitate recycling, and promote the product
Value
the bigger the benefit, the bigger the ___?
Embedded Advertising
the product placement that occurs during an event; number of times brand is mentioned verbally, guys causally sipping Gatorade on the sidelines, etc product is visible to you in very innocent yet impactful way
Customer Value
the relationship between benefits and the sacrifice necessary to obtain those benefits
2 Types of Dissatisfied Customers
the verbal and the silent silent is worse
The 'position' of the product describes the effort to make a product
trendy enough that there is a segment of a population that will buy it
Aggressive
try something else when option one doesn't work; be resiliant
penetration pricing
type of pricing that you set prices below normal rate (as low as you can) to gain market entry to attract customers and eventually create brand loyalty
Inconvenience
waiting too long excessive waste of time
Company
what kind of job do you work for, and do you enjoy it or hate it?
Recommend
what one word has the biggest impact to pass on by word of mouth? "I _______ this product."
Demographics
who you should go after
What are some examples of external/personal information?
- Family and Friends - Opinion leaders - word of mouth - celebrity endorsement - "buzz marketing"
Personal branding=
(Performance + personality) X (visibility + trust)
Evoke Set
-From all the cars you're looking at buying, enough is enough and you narrow it down. -Your FINAL SET of considerations you're willing to do Evaluate Alternatives
Production Orientation
-Produce products -Be produce it efficiently; get it exported quickly
TOMS
-Toms said, you buy one and I will give away a pair for free because we're not going to have a waste with our shoes. We will cut down waste and improve efficiency. The guy transcended and reformed the way products were marketed. - Buy one and give away a pair for FREE to someone in NEED! -Helps the profitability, but also helps the brand.
38% of impact you have is judged on your ________?
-Vocal Delivery -More specifically tone of voice -This matters at every level of careers, and shouldn't sound offensive, or boring, or arrogant. -If you can hear it, you can change it.
Create Customer Value
-giving customer something they feel has value - Benefits minus costs equals customer value -- first class plane tickets
What are the four categories of product?
1) Convenience - Proctor and Gamble, all products of convenience how to package in order to sell more 2) Shopping - level of involvement and price is a little more, little more risky, need a little more knowledge (laptops, furniture, etc) 3) Speciality - luxury items, luxury watches 4) Unsought - varies from consumers, when suddenly you need a product/service you've never considered before (life insurance, health insurance, investments)
Information
1. Internal: recall, past experiences 2. External: personal, commercial, public,
What makes you more credible?
1. Trust 2. Expertise/Knowledge 3. Position & Status, and Success
4 Parts of the promotional mix
1.) Advertising 2.) Product Placement 3.) Public Relations 4.) Personal Selling
visual delivery (facial expression)
55% of emotional impact is judged on what?
Visual Delivery
55% of the emotional impact you have is in your___________________
Persuasion
A conscious attempt to get the customer to move toward a predetermined goal
Legal or Political Factors
American Disabilities Act (circular door knobs)
Rihanna and Puma
An example of someone's personal brand enhancing a product
Two Types of Service Failure
Ante- everyday good service that you expect, everyday good behavior Moment of truth- terrible moment happens, your chance to make it right
What does Positioning consist of?
Attributes Benefits Communication of value
Name an example of an unsought product
Audiology - ENT doctors in 80s notice loud music levels, predicts loss in hearing in youth if you were to wake up one day and need a hearing aid, you have an unsought problem and must go look for a hearing aid
Production Orientation
Being good at producing a product; production and delivery, satisfying pr, etc
Marketing Strategy Framework
Broken into 3 Levels 1. Market Analysis 2. Strategy Development 3. Implementation
time and likability
Building relationship with customer involves ____________ and _____________
IMPORTANT - People like companies that are involved in community relations....
CAUSE RELATED MARKETING.
Promotion
Can an individual progress and move their way up the ladder, or will they stay in the same job/position forever?
Personality
Can be edgy, unique, athletic, whatever.. but you have to think how you want your brand to be.
Legal/Political Factors
Cigarettes Make Advertising Hard Seatbelts required- Nylon makes jump w/ seatbelts
Brand
Community relations are a social enterprise that create a corporate
What are four things that should be examined before marketing?
Company- strengths and weaknesses Competition- have to know them Customer- Who are they? Buy habits? How do they change? React to them Conditions- external environment, understand it and you can go forward
What are 4 reasons a customer takes their business elsewhere?
Core-service failure Service encounter failure Price Inconvenience (not location)
Loyalty Programs
Delta, Marriott, Motel 6 They do it because there is proof that they work
Maintaining contact
Developing and maintaining long-term relationships is a) Maintaining contact b) Knowing people (networking) c) Selling yourself d) Marketing yourself
reduced selling effort
Don't have to advertise as much
Performance
GPA, internships, knowledge/experience
Service Failure
Failure and recover
differences between sales and market orientations
First, sales-oriented firms focus on their own needs; market-oriented firms focus on customers' needs and preferences. Second, sales-oriented companies consider themselves to be deliverers of goods and services, whereas market-oriented companies view themselves as satisfiers of customers. Third, sales-oriented firms direct their products to everyone; market-oriented firms aim at specific segments of the population. Fourth, sales-oriented organizations place a higher premium on making a sale, while market- oriented businesses seek a long-term relationship with the customer. Finally, sales-oriented businesses pursue maximum sales volume through intensive promotion, whereas market- oriented businesses pursue customer satisfaction through coordinated activities.
The KEY to personal selling is the:
Follow Up What is the last step in the personal selling? = FOLLOW UP -It's the little note, gift you give, checking on somebody, etc. All of that is wonderful If you get a "no" - you figure out in your own way, how you follow up, because you WILL get a "no."
"What are the 4 qualities to hire someone?"
Fortune 500 companies look at: 1.) Interpersonal Communication Skills -everything talked ab thus far -if your default look is lacking, you communication skills will be un-employable 2.) Teamwork -Do your work well, make everyone look good. 3.) Honesty -Can I trust you to behave a do whats right? 4.) Core competency -You can do the work -Everyone who graduates college
Customers
How are the customers? Demanding and stubborn, or understanding and patient?
55%
How much of the emotional impact you have is visual? a) 12% b) 34% c) 65% d) 55%
What are the three objectives of branding?
Identification (think - Nike swoosh) Repeat purchases (think - Nike now sells shoes and clothes and sunglasses, all from good brand) introduction of new products (I liked this, why not buy this?)
Switch
If a customer isn't satisfied, they're going to
1/24
Images are created as quickly as _______ of a second
New Balance puzzle, Krispy Kreme doughnuts
In Boston, the ___ ___ puzzle was the most popular, and at another ___ ___ ___ were one of the most popular.
10; 70%; 1 hour ("Thin Slice")
In ___ seconds you can predict with __% accuracy who someone is as though you listened for ____.
Nike Risks Backlash with Colin Kaepernick Deal
In a WSJ poll, 54% of respondents found the protests not to be appropriate vs 43% who did
Societal Orientation
Includes the characteristics of the market orientation, but goes beyond a market orientation to include the preservation or enhancement of individuals' and society's long-term best interests.
What are the top factors that employers look for?
Interpersonal and Communication Skills Teamwork Honesty Likeability
Visual Delivery
It only takes one bad encounter for someone's reputation/credibility/likability to crumble
Trust
Lance Armstrong -His bracelets are nowhere now, all he had to do was tell the truth. If you come to the decision to tell the truth, then tell it. Once *trust is gone, the brand is VERY difficult to repair.* If all is good within ALL the rest of the things in the formula, then you will be at the very highest plateau.
chrysler
Lei coco, k car, boring but affordable, 10 year 100,000 mile bumper to bumper warranty
Name one example of a 'thin slice' affecting someone's career
Leonard Fournette does lil touchdown dance after first touchdown and is labeled as cocky
implement a failure/recovery plan
Lesson learned "united breaks guitar" study
Social
Levi's failed which part of external environment
Persuasion
Likeability leads to ____
Post Purchase Behavior **KNOW THIS AND THE STEPS THAT GO UNDER THIS SECTION**
Made the purchase, you bought the product... Many products aren't consumable at that point. Cognitive Dissonance i. Self doubt you have after a purchase. If you have any doubt, you will return it. ii. You have to be concerned with that COGNITIVE DISSONANCE when selling the product to your consumers.
improve customer service
Main focus of Delta Airlines training
Tactics of Pricing
Makes you a better seller of the product and a smarter consumer of the product
Random
Not a type of buying behavior as relates to environment
Confidence
Not arrogant or timid; be natural; can't be too nervous, camouflage it; does not exempt you from being good
Enthusiasm
Must Be Energetic→Warren Buffett-Snowball
30%
NFL gust tackled your kids the viewerships of fans over 55
Lance Armstrong and his Livestrong bracelets
Name an example of broken trust leading to ruined personal brand
Nike's sweatshops
Name an example of ignoring societal orientation and how that hurt a brand
lent
Name an example of targeting a religious demographic
doctor's bedside manner
Name an example of vocal delivery being important
Education
North vs. South Baton Rouge
Rihanna Becomes Face of Puma
Puma created a "new-old" strategy centered on sports and speed
Mountain Dew
Reposition themselves from hillbilly to "high energy drink" for extremists like people at X games
Marketing Orientation
Satisfying Customer needs and wants while meeting objectives (Hotels) ?" - accomplishing organization's long-term goals by satisfying customer wants and needs legally and responsibly - understand competitors' strengths and weaknesses
What is stage 1 of Strategy Development?
Segmentation: how will you divide the population? Focus.
What are some external environment factors?
Societal factors Technology Legal or political Economic factors
Warmth trumps competency
Steve Jobs was a "competent jerk." He was fired by Apple.
Name two examples of community relations
Super Bowl - for every company that has huge corporate presence, they are doing something charitable in Houston that week John Hancock, Boston Marathon - 'community sports event,' wants community to participate
Tone of Voice
The number one quality that impacts your vocal delivery; Matters at every level of your career
After Whitney Houston sang the National Anthem at the Super Bowl, what did the papers focus on?
They didn't show the game, they showed the tears. She tweaked something mundane and branded it
Sampling
Very expensive, but really is it? If you stay at a hotel, you have the sample size shampoo. They WANT you to take the samples they give you. Think about how many rooms in a hotel and how many samples are in the hotel with all those rooms. -Candy aisles, perfume aisle, whole foods, trader joes, etc.
$300M for Aging Federer? Uniqlo Thinks So.
Uniqlo is known for basics, not sports attire
$300M for Aging Federer? Uniqlo Thinks So.
Uniqlo wants to grow their U.S presence without making sizable acquisitions
Visibility
V
Content is king, is the answer
Verbal Arrangement Think on your feet
Visibility=
Viral; people talk about and use your product. Trust can destroy a personal brand
Personal Selling
We've all had to do this at one time or another. (Patrick Peterson is doing this at the NFL combine trying to increase his draft status/ we all did this when we went through rush)
Rebranding
Weight Watchers is now WW
color, shape, smell, label
What are the characteristics of promoting the product?
Mass Marketing
When one message applies to entire customer base.
Why are demographics important?
Who are you trying to appeal to, who not to offend. The more you know, the better you can tailor
Progresso
Who uses label-low sodium?
Credibility
Why do you believe some people, but not others?
enhances their credibility
Why does the Super Bowl do a short bio on each player, including all the things they've done?
Performance
Will grow as you keep enhancing it & taking advantage of different opportunities
Mystery Shopper
Works in the company, poses as a shopper and you go in and use the services you were hired for and you go back to report. -Ex) 24 pages for a Sheraton questionnaire. -Everything matters. At the end they say, "lastly, make sure you bring something and leave it." They want to find out how efficient the lost and found department is.
What is the power of vocal delivery?
You are expected to be articulate, clean, and clear. Expected to be poised and professional when asked difficult questions
Societal Orientation
You aren't a good steward if you don't recycle. Wal-Mart introduced curly light bulbs. Patagonia --> Sustainability --> recycle. Do things to make society better. Nike and LSU. Nike got in trouble for sweatshop child-labor factories. They created a blueprint for oversees manufacturing. Came up with machinery to eliminate waste. Better stewards! CVS choosing to not sell cigarettes
7
___% of people who have had a bad customer service experience will tell the service provider
75
____% of customers who switch, tell at least one person
7%
____% tell service provider they're switching
51%
_____ Percent of Mercedes are leased
Personal Brand
a critical element to selling yourself is your what?
Know People
access people, have contacts, network exposed
Two important aspects in customer service recovery is
acknowledgement and apology ( tone of voice and 'the look')
Lifestyles
activities you engage in, opinions of others
Example of Societal Orientation
adidas making miami uniforms from sea waste
Competitive
affect the way a company will market their product because they have to worry about what companies are their competition and how they do things
Attraction from Competition
another company close to a business is more appealing
Mass Marketing
appeal to a large population
story about kid who was honest about his test grade
back when he used to grade test by hand this student came to him and said that he thinks he made a mistake while grading his test. The grade that Karam gave him was a 190/190 and the student said that he made a mistake and the real grade was a 90/190. Karam had to change the grade in the computer but told the kid that if he ever needed a letter of recommendation to let him know because by him being so honest it showed him he was a good person
32
bananas are ranked ____ on the potassium scale
4 categories of a product
convenience, shopping, specialty and unsought
According to case study, number one thing customers want in the utility industry is the creation of
customer loyalty treat them like you care more loyal they are, more likely they are to forgive mistakes
Customer Service
every doctor has "bedside manner"; fear word of mouth
Conditions
external environment, understand it and you can go forward
Technological
factors will always affect the market industry because technology is constantly changing. (ex: the sync saved ford)
Levi's
failed b/c they didn't pay attention to social factors changing
Creativity
figure out how to problem solve and be innovative. Create a way to make things better. The little "tweaks", or adjustments, to things can make all the difference in success/failure.
customer satisfaction
good ______ yields the ability to charge premium prices, less selling efforts, and referrals.
Brand Manager
job is to maintain the brand
what is the difference between marketing and societal orientation?
societal orientation is being good to society and our environment
Trust
tell the truth
Likeability
the emotional impact you have on someone. The ability for that person to look at you and like you enough to listen to what you are saying
Likeability
the emotional impact you have on someone. The ability for that person to look at you and like you enough to listen to you.
Societal Orientation
(everything in marketing), while keeping our environment and society safe; ever-evolving; creativity and sustainability help not only profitability but the brand as well.
Visual Delivery: Facial Expression
- Exp- Les Miles looks goofy with his facial expressions and some people thing he is an idiot because of it. - Exp- Jay Cutler in the NFL Championship game. He got hurt and was stuck on the sideline. His facial expression/way he carried himself wasn't very good/enthusiastic. He took a huge PR hit by the media/fans because of it.
Dynamic Pricing
-Its all about dynamic pricing -It Changes. Flexible pricing
Information Search
-Searching for information to make that decision -That decision can be quick and very internal or you may have to go on some version of a search if you don't know that much information on the product -You want your company to have information in all areas
Sales Orientation
-Sell the Product -Interact and sell to people
Newspapers
-Warren Buffett went and bought 32 newspapers because newspapers are not DEAD! He bought them because you make your money in the ADVERTISING in newspapers § Now have the digital version
Three types of long-term relationships that need to be cultivated
1) Customer relationships 2) Media relationships 3) Community Relationships
Stages of the Product Life Cycle
1) Product introduction: when most attention is placed on pricing and promotion 2) Product growth: once product begins to grow, type of promotion shifts 3) Product maturity: if you do well, product peaks and matures and becomes iconic product; once you reach this stage, you can cut back on promotions 4) Product decline: everything slows, product begins to become obsolete 5) Product extension: declining product experiences growth due to new angle (Botox - not just cosmetic, now helps with migraines)
What lesson is learned from 'United Breaks Guitar'?
1) United had no recovery plan in place; all he wanted was offer to replace or even acknowledgement of person and problem 2) power of social media
3 Types of Presenters
1) show runner-can step up and they are just good. Poised. Wonderful. 2) Neophyte- Good. Not perfect, but above average. 3) Artists- Do weird things on purpose. See past their brand.
Items that hinder likability
1. 38% is vocal delivery 2. 55% of most impact you have is visual delivery 3. 7% is the verbal arrangement of your message
Good Customer Satisfaction Yields
1. Ability to be able to change premium prices 2. Less selling effort 3. Referrals
What are the 4 parts of the Promotional Mix?
1. Advertising: Pay money for TV, radio, etc. Choose properly. How can you reach most effectively? 2. Public relations: Positive light on company brand. Big crisis: GM cars can kill you, recalls, lawsuits 3. Sales promotions: get you into the store 4. Personal selling
5 Steps in consumer behavior
1.) Need Recognition 2.) Information Search 3.) The Evoke Set 4.) Purchase 5.) Post Purchase Behavior
Level 2: Strategy Development
1.) Segmentation -Effective segmentation: a.) Identification (Figure out what you want to talk about) b.) Accessible (Can you reach people visually) c.) Responsive (Can people do what your asking of them) d.) Substantial enough 2.) Targeting -Whole market, multi segments or sections/niche market -Is it substantial enough to justify? 3.) Position of product -How do you make it trendy to where there is a segment of the population that will buy it? -3 aspects: a.) Attributes b.) Benefits c.) Communication of value
4 Components of Credibility
1.) Trust 2.) Expertise / Knowledge -When you are an expert and you have accomplished something, people are going to LISTEN to you. 3.) Position and Status -Comes with time -It has to be embedded in your presentation. -i.e. they list the famous speakers name and accomplishments, or they include player bio for super bowl 4.) Personal brand EX: London business school - how do you sell your ideas? -You can't, but you can have someone else sell your idea FOR you. -You give the idea to someone else and the idea gets bad. Why can't you sell it, but they can? Because that person has credibility.
How long does it take for a brand to be created?
1/24 of a second EX: Richard Sherman, Justin and Janet Jackson
Research says if you can land someone as an insurance customer, but they're going to stay with you for ______ years - you don't want them to SWITCH!
3 Years Must think of ways to keep them longer.
Vocal Delivery
38% of emotional impact is judged on what?
How much of your emotional impact is judged by vocal delivery?
38%, you need to master tone of voice. Think of doctors with bedside manner, they have to make you feel special and make you feel that you matter
Level 3: Implementation
4 Ps -Product -Price -Place -Promotion
Tattoo
47% of individuals age 18-34 have one
Nike Risks Backlash with Colin Kaepernick Deal
56% of millennials said they found the protests to be appropriate
Why Customers Switch
A. Core Service Failure B. Service Encounter Failure C. Pricing D. Inconvenience E. Employees Inability to Respond to Failure F. Attraction From Competition G. Unethical Behavior
Facial Expression
Aaron Brooks after interception; DEFAULT LOOK is driving factor how others look/judge your team/benefits
What are some unethical pricing tactics?
Bait and switch- price low and say, "sold the last one, but we have this" Predatory pricing- price low and knock out competition Dynamic pricing- internet, constantly changing price
Credibility
Being believable and being able to influence others. It's more than just trust. You're young, sometimes you'll have great ideas, but sometimes those ideas won't be able to resonate because you are young, so you have to figure out how you can become more credible so people will believe in you and your idea, so that your message is better received. If YOU can't do it, find the person who has the credibility to do it. Sales orientation comes into play
Credibility
Believability and trust (of the person across from you)
Customer Value
Benefits - Costs = Customer Value -The bigger the benefits, the bigger the value
Celebrity Endorsement Mel Gibson example
Best selling movie despite it's predictability... He marketed it via talk shows and traveled to opinion leaders, preachers, and told the stories...
Commercial external types of information
Biased information - TV Commercials - Radio - each station advertises for its groups - Newspaper - Magazine: Only if there is a big population of readers. Sports Illustrated - Internet: popup advertisements are in their infancy - Direct mail: more money is spent on this than any other form. Large population - Billboards: 1. Placement and number of cars that pass 2. Advancements in technology. GOLD- Find the piece of land where the pipe int he ground is buried.
Production Orientation
Biggest flaw of ____ orientation: You can be the best at it but theres just no population or customer base to want it.
Billboards
Billboards -You want to own that land where that billboard. IT'S NOT THE PROPERTY IT'S THE BILLBAORD! -I-10 - you have $20,000 for a month and you guarantee it for two years. Why they work: -Traffic Count -Technology/Digital (able to rotate) -VOLUME of people seeing advertisement
What was Motel 6's branding strategy, how did they change their brand?
Book: The Millionaire Next Door 1. Position- Motel 6 as an economical, clean, enjoyable, and fun place. No amenities 2. Affiliation- Who's at the same place as you. Same as bars 3. Personality- Insurance companies. Tom Bodett's voice, its the longest run commercial
Supervisors
Boss/management-love/hate them?
John Hancock
Boston Marathon; Brand and name recognition
Trust/Honesty/Sincerity
Can people trust you to do the right thing. ➢ You have to admit mistakes (exp- BP and the Oil Spill) ➢ Exp- if you lie on a resume, you will most likely automatically be disqualified because your honesty will be questioned - Exp- George O'Leary was the coach at Notre Dame for only a few weeks before being fired. He was caught having lied on his resume and Notre Dame didn't want to have a coach that was dishonest.
Identification
Can you talk "their" language. Are you one of "them"? Do you dress/talk like "them"? Are you seen as one of them in your actions and language? Can you strike a chord with "them"? ➢ Exp- Karam can't identify with pro-athletes very well and they won't view him as credible because of it. ➢ You can overdo this idea of trying too hard to be like the people you're trying to impress and identify with them. - For instance, A lecturer was speaking to a group of athletes and by trying to "speak their language" he used the F word in every other sentence like the athletes do. The athletes were taken back by this and the guy lost a lot of credibility.
A Spoonful of Sugar Helps the Sales Go Up
Cereal sales have declined 11% between 2012-2017
Legal Factors
Changes on sidewalks in the city are due to
Maintain Contact
Christmas cards, gift giving, so people know who you are and remember you
Name example of warranties boosting the brand of a company
Chrysler hires Lee Lecocca to help rebrand - he focuses on the van that opens up with sliding doors (perfect for families) and their blue collar, paycheck-to-paycheck market; they promise 10 year warranty or 100,000 miles, bumper to bumper (warranty established them as efficient, reliable brand)
4 Purposes of Labeling
Construction- tells what's in the product (Egyptian cotton) Instruction- label can tell how you're able to use product (Monopoly) Nutrition (Campbell's Soup= super high sodium, Progresso steps in and has LOW SODIUM on label) Cognitive Dissonance- self doubt following a purchase "buyer's remorse" can be reduced via label
3.) Public Relations Following Cards
Dealing with integrity with a variety of mediums to be able to create a positive image or overcome a negative image Deal with the people in a very HONORABLE way and be able to work, deal with and meet with the press/media. You can fight the media all day long and you will lose.
Name an example of company being hurt by poor customer satisfaction and describe how they responded
Delta realized its customer service was poo so they spend 2 billion dollars on customer service for their employees
Artist Presenter
Do weird things on purpose, see past their brand
Knowledge
Do you know how to properly invest money? You have to become an expert in something
Describe the M&M/ET question
ET asks M&M for product placement; should do it? Already have great brand, should they risk it on weird alien thing? they said no, asked Reese's Pieces instead, cause RP to skyrocket
M&M's in ET (product placement)
ET loved M&M's and ate them in the movie. Audiences love ET and purchase of M&M's increase
Trustworthy
Every company you know out there has that Michael Bonnet person, that when they represent that company they will tell you as much of the truth as they can
Why It's So Hard to Be an 'Ethical' Investor
Everyone has their own definition of ESG
What type of research did Motel 6 engage in?
FOCUS GROUP -Small group of individuals who are involved with a product, getting them together to discuss the product and share ideas
story about fournette brand after scoring a TD
Fournette made a touchdown in the southend zone and then made the Heisman pose after and he was immediately labeled as cocky for the next year
Why It's So Hard to Be an 'Ethical' Investor
Funds can rename and craft own definitions to skip around being fully ethical
Performance in terms of personal branding success for a college student would include
GPA, internships, worldy knowledge/experience, etc
What does Microsoft show about corporate branding?
How critical it is to show a side never seen before; every advertisement had a personality they wanted to link themselves to
niche markets
How did Yeti first sell their product to the public?
What is the criteria for effective segmentation?
Identification- identify best target Accessible- promotion and distribution (Frito lay chips) Responsive- Can audience respond to you? Substantial- Big enough population to drive profits
Connection
Identify and relate to the audience; know their interests
Distractions
If you want to be sophisticated/poised at a young age, learn to live with the
What should you do about the default look of people interviewing you?
Ignore it and assume they are listening
Why It's So Hard to Be an 'Ethical' Investor
In investing, ethical practices are the responsibility of the fund manager
Promotional Mix Continued: 2.) Product Placement
Is ambush marketing a part of product placement? Yes. Sponsorship is a form of PRODUCT PLACEMENT! Ex) RayBan's- Tom Cruise wearing them in Top Gun; that was the second rebirth. Ex) Fournette- Nike swoosh on his chest along with all the other LSU athletes, that's product placement like 64x more than Tom Cruise and his sunglasses in ONE scene of a movie
Speaking Too Fast
Is speaking too fast or too slow more persuasive?
Nike Risks Backlash with Colin Kaepernick Deal
Kaepernick started kneeling during the national anthem during 2016 in response to police brutality/social unrest
Success
Karam in 2001 had dinner at an exclusive Country Club and talked to a successful business man named John Kant. From the conversation, he took notes on a napkin about how to be successful not only in marketing, but any kind of job.
listening
Kenneth Findberg (law firm, 9/11 cases) says the key to negotiation is
Rihanna Becomes Face of Puma
Market research shows that she is an icon for main target group
What is level one of the Marketing Strategy Framework?
Marketing Analysis- examine 4 things before marketing, preparation
What are 3 effective ways to look at Targeting?
Mass marketing- appeal to large population Multi segmented- find multiple segments in a large population Niche- one specialty Positioning
Parking
Name one example of an 'inconvenience' that causes people to switch
Specialty
Niche store, more luxurious, higher prices, simple, obvious
specialty
Niche store, more luxurious, higher prices, simple, obvious
Nike Risks Backlash with Colin Kaepernick Deal
Nike ventured into uncharted political territory with this recent campaign
Inconvenience
Not a category of a product
Evoked Set
Not a step of consumer decision making process
Technological Factors
Not just computers, manufacturing advances also Making experience more comfortable and better
Name example of company using societal orientation to boost brand
Patagonia using recycled material in their jackets; one of first companies to embrace societal orientation
2/3
Personal branding is _______ of every negotiation
Examples of legal/politics affecting companies
Phone companies must warn about cancer Car seat laws opened up whole new business opportunity; nylon
Production Orientation
Powell Motors, an automobile manufacturing company, spent considerable time, effort, and money in developing a fiber-reinforced dashboard for its cars without researching customer needs. Because of the new feature, the cars manufactured by Powell Motors are priced higher than other companies' cars belonging to the same segment. The company has introduced its cars in the market with the hope that customers would like this type of dashboard and would buy them despite the high price. In this scenario, Powell Motors has adopted a
3 Types of Presenters
Show-runner Neophyte Artists -All good, but different
$300M for Aging Federer? Uniqlo Thinks So.
Signing the athlete as an OTC representative could have some complications considering he is relatively private about his personal life
Geographic
South vs. North products east coast vs. west coast
Delta Airlines
Spend 2 billion dollars on customer service for all their employees (likability)
Magazines
Sports Illustrated - "swimsuit edition" that everyone loves. It is IT! They have the ULTIMATE. If you thumb through, the majority of the swim suit edition are ADVERTISERS. 40 million people will buy it and they won't throw it away because it's a glamour piece. It's just one hot blue chip brand after another. It's just ad after ad after ad.
What are the 3 primary functions of packaging
Stores and protects the product (milk, eggs, laptops, protect against theft, and be able to ship safely) Facilitates recycling - highly societally orientated world, we want to be environmentally aware promote the product - huge example of Nespresso K-cups
Legal
Surge in product of children's car seat was what external environment
Descriptors
Tells us who is the customer. Tells us who will use our products/services. The University of Phoenix isn't going after the type of people that got to LSU, they're going after a very specific target segment.
Crisis; Media
The companies that manage __________ best are the companies that manage ________ best
CASE STUDY - Utility company, trying to increase their market share.
The number one thing customers want in the utility industry is the CREATION OF CUSTOMER LOYALTY. They want to be treated like you care. Customer service matters and what you do to the customers matter and how do you keep them loyal? If they're loyal, they're more forgiving to your mistakes.
Marketing Orientation
The ultimate goal is to make a profit by creating customer value, providing customer satisfaction, and building long-term relationships with customers.
United Airlines -They did not send a genuine apology What area should have been focused on by United?
They should have focused on PR Failure Recovery.
Sales Orientation
They take what they produce and put it into the hands of skilled sales force and tell them to sell it. Tell and sell.
Water/Super Bowl WSJ
They're going to use the Super Bowl to launch this new water to compete with Smart Water. This year water overtook soft drinks as the number one liquid. Water is out performing soft drinks.... How? MARKETING!
Audio Logo
Think of sound as a way to Promote/Market the product
Rihanna Becomes Face of Puma
This new strategy narrowed the product range and simplified designs
Nike Risks Backlash with Colin Kaepernick Deal
Those numbers drop off significantly by demographic
Test question: Why do companies hire mystery shoppers to evaluate the work you are doing?
To evaluate how they treat their customers. If you know there is a mystery shopper, you're going to be nice to EVERYBODY. You have to figure out good customer service. SWITCHING - taking my money from here, to over there. I'm no longer shopping here, I'm shopping over there.
Describe the importance of Motel 6 in terms of marketing
Tom Bodett - carpenter from Alaska focus groups about Motel 6 show that people thought of Motel 6's as run down, dirty, gross, too cheap two types of travelers for M6: frugal person, have money but doesn't want to spend it on bed; typical traveler, wants to get from A to C with little fuss Motel 6 needed to rebrand one of the execs says hey, this NPR speaker is very relaxing let's call him up and make him face of Motel 6 Tom Bodett becomes the personality and brand of Motel 6
Targeting can be whole market, multi-segments, or niches. Name an example of a company using this.
Tommy Hilfiger was suffering, considered idea of multi segmentation that they could expand into - developed Adaptive Apparel, or clothes for people with disabilities (easy-to-use buttons, etc) there was a segment population that was substantial
True
True or False: Prestige Pricing is pricing something extremely high to separate it from competition.
True
True or False: Price Skimming is setting the price as high as you can, within fairness, as long as you can until the competition catches up with you, forcing you to adjust it.
Knowledge
Turns into expertise; material knowledge of your audience; curse is when you know so much, you can't break it down; "Simplicity is complex" -present in a clean way
Amazon
UPS and FEDEx new rival
Name some examples of technology acting as a condition for companies
UPS, FedEx, USPS all compete, Amazon comes from no where and overtakes everyone Online banking is next big thing - can I make it faster and safer? Transactions - Apple pay, walmart pay, etc Construction management Grocery stores - all about speed
Customer Value, Customer Satisfaction, Develop and maintain relationships with customers
What 3 goals does the marketing department seek to achieve? a) Benefits, Profits, Customers b) Reputation, Profit, Satisfaction c) Customer Value, Customer Satisfaction, Develop and maintain relationships with customers
introduction of new products
What are Points of Parity, Points of Difference, and Rebranding parts of?
Be creative, aggressive, enthusiastic, smart, honest
What are Traits of Success? a) Be creative, aggressive, enthusiastic, smart, honest b) Likeability, aggressiveness, interpersonal communication skills c) Honesty, teamwork, communication, aggressiveness d) None of the above
Post-Purchase Behavior
What happens after the purchase. If you keep the product, you may experience cognitive dissonance, doubt. Why did I buy this? You ask a friend and they make you feel better by confirming your choice. Ex. Jewelry shop that has someone pop in and say that they have the piece and they just adore it. Karma bought a new couch and attempted to return it; he likes it now that his friend complimented it. he has not gone back to the store though because heey did nothing to soften his self-doubt. His house is handicap accessible, except for 2 back doors that his wife made him change. Robert comes over, charges him an arm and a leg, comes back to see how he doing in a week. He refers people to him all the time. loves Robert. More loyal customers!
Likeability
What is selling yourself related to?
Targeting
What is stage 2 of Strategy Development?
Being a good presenter
What is the heart and soul of business?
Tone of Voice
What is the most important aspect of vocal delivery?
Customer Service
What is the number one thing that cause customers to switch?
Employee Job Satisfaction->Creates Customer Value->Creates Customer Satisfaction->Generate Loyalty->Profit
What is the service profit chain? a) Trust->Knowledge->Identification->Charisma b) Employee Job Satisfaction->Creates Customer Value->Creates Customer Satisfaction->Generate Loyalty->Profit c) Trust->Knowledge->Loyalty->Profit
Odd or even/ psychological pricing
When you chose to be an odd or even number. Odd=bargain. Even=quality
Community Relations
When you get involved with the community, your brand is enhanced. If you gave money back to an organization in a small town, people think highly of you. You are seen as a good citizen and they will find you as being more respectable
integrated marketing communication
When you take all these items from the promotional mix, it's called:
Japan
Where did coke launch its first alcoholic drink?
Progresso
Which company use labeling to promote nutritional value to become leader in industry
The products purchased tend to be expensive and infrequently bought.
Which of the following is most likely to be true of extensive decision making? a. Consumers spend little time on search and decision before making a purchase. b. Consumers usually stick with one brand though they are familiar with alternatives. c. The information search is predominantly internal. d. The products purchased tend to be expensive and infrequently bought.
Two Warranties
Written and Implied
How do you take the K-car (cheap, will get you to work and back reliable everyday for the blue - collar worker)? (a SEGMENT of ppl who just need that simple a-b car)
a Warranty!! ex. 100k miles or 10 yrs all while offering bumper to bumper protection.
Marketing Orientation
a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product; it is synonymous with the marketing concept
Production Orientation
a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace
Media Relations
a relationship with an individual who happens to work for an outlet that transmits certain information down a certain medium treat the media well
Luggage Companies
after 9/11 changed as a result of values of the day/social factors
Everything with a company can be perfect and customers will still switch. Why?
attraction from competition example - Towne Center, Perkins Rowe
Factors considered when analyzing how to position a product
attributes, benefits, comm of value
Income
average income of Wall Street Journal buyers is $120,000 -advertisements appeal to that income
Customer Value
be able to show how you can add value to the company; ex: first class flights, getting on and off early, benefits are bigger than costs
Credibility
being believable and able to influence others
Credibility
believability and trust
customer value =
benefits - cost
what is the formula for customer value?
benefits - cost = customer value bigger the benefits, bigger the value
Vocal Deliverability
bitterness and boredom are two keys to stay away from; be persuasive
Cognitive Dissonance
can be eliminated if the label can assure you of your purchase
Thin Slice
can be evaluated by others during the first 10 seconds
Knowledge/Expertise
can be trustworthy, but it's what matters if you don't know how to do the job
Economics
can fall under the umbrella of conditions recessions, expansions, interest rates, etc
Written Warranties
can help you differentiate yourself from competition. auto, laptops
Buzz Marketing
chooses to put a product int he hands of an opinion leader for the purposes of them using the product for free and hoping they spread good word of mouth. MoPad --> Vespa --> gave bikes to football players at Ohio State University, hoping that they will say something good about the product. The ethical concern is that you can't tell them to say something good.
4 Components of Market Analysis
company competition customer conditions
Recovery
company asking customer to come back after indifference
Failure
company fails and causes indifference
Product Orientation
company looks inward to see what they do best then once decided, they produce it--better than anyone else; satisfy PR; sometimes it is an issue with underestimating the demand/ need for a particular product
Economic
consumers acting differently in a boom vs. a recession is an example of how _____ factors affect the market industry.
Tiffany's
creates the engagement ring for LGBTQ community
What is the "Need Recognition" in a consumer decision - making process?
find an unfulfilled need and grab their attention
Religion
government could not be catholic in Louisiana because North Louisiana didn't want a catholic government a long time ago don't want to offend, want to attract
Failure and Recovery
great companies fail on purpose because recovery is so good and they have you talking about thereafter
Smart
great to have but need to have other skills. Not just 4.0. Well polished
Evoked Set
group of brands, resulting from an information search, from which a buyer can choose
service failure
has to do with realizing what you could have done earlier and what to do when it takes place.
Arrogant
hating to be wrong, refusing to admit they don't know something, trying too hard to be perfect, etc
Al Mehrabian's Study
he did a study on the emotional impact an individual can have to get people to pay attention to them/be drawn and attracted to them; as well as the individual getting people to do whatever they want them to do.
Karam story about default look
he was suppose to work with an LSU football player who had to do a press conference. He didn't show up because he thought Karam looked mean. So when he finally met with him he asked the guy why he thought he was so mean and the football player said that he always sees him around the business school and he always looks mad/mean so he assumed that he was a mean guy.
unsought
hearing aid, life insurance, 401K
Sales Orientation
how good a company is at selling a product
Segmentation
how will you divide the population? who do you want to aim your product towards?
Personality
how you want to be; can be highly manicured for celebrities
Criteria for Effective Segmentation
identification accessible responsiveness substantive
3 objectives of a brand of a product
identification, repeat purchases, introduction of new products
Core Service Failure
if they mess up basically the one thing they're supposed to be doing
Cognitive Dissonance
inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions
Sell Yourself
interpersonal skills, carry yourself, talking to others
Marketing Orientation
it develops programs that bring about mutually satisfying exchanges between selective groups
Honesty and Sincerity
keep secrets
Identification
know how to appeal to different types of people
Hands
make sure not rigid and still; avoid hands in pocket; find something comfortable either in front/behind the body
tactics of pricing are important because they
make you a better seller of the product and a smarter consumer of the product
Discuss points of difference between Uber and its competitors
more convenient, there faster, easier to pay no cash exchanged , cleaner
Referrals
o A little different than word of mouth. o It's when someone asks for someone else's opinion o A friend tells you from their past experiences who to contact to get a job done. You trust that friend so you go to them, maybe even despite the price. o Referrals can drive someone's business. It's like free advertisement in an external environment. ▪ Exp- Karam tells everyone about the company that did the floor on his house because of how good their service was.
Unethical Behavior
o Doing bad things to screw people over.
Attraction for the Competition
o Someone just did something a little better than you. o You can't control this that much (unlike the previous 5) o Maybe they are getting amazing reviews. o Maybe more high-tech/newer/nicer o Exp- Town center on Corporate Blvd. its so nice, it attracts people to its stores more than other places do.
Empathy
o The company understands where the client is coming from and why they are the way that they are. o The company is able to see beyond just the sale that is going on and see how the product is important to the client/customer. o Seeing the "big picture".
Age
old/young; baby boomers; Generation X and Y -nursing home to assisted living to retirement community
Name an example of a company's systematic way to overcome failure
overbooking on airplane; they'll bump you up if flight is full
2 components of a product
packaging and warranty
Mass Marketing
part of targeting; meant for everyone, obvious, easy, expensive
Rebranding
position, affiliation, and personality
Show Runner
presenter that can step up and they're good. Try to look past their show to see if you're being tricked
Showrunner
presenter that can step up and they're good. Try to look past their show to see if you're being tricked
Neophyte
presenter that is everyday person. Good but not great, slightly above average
Sales Orientation
put together skilled sales force to move the product
4 things needed in order to maintain a long term relationship
responsiveness, reliability, empathy, and assurance
Marketing Orientation
satisfying the customers needs and wants
3 Stages of Strategy Development
segmentation targeting positioning
Cognitive Dissonance
self doubt following purchase
Market Yourself
show yourself to others
Trust
sincerity, honesty, if you are slightly nervous, could be a sign of sincerity
Sales Orientation
skilled sales force whose job is to sell the product; interact and sell; key is finding the right people
Mystery Shopper
someone hired by company to evaluate their company mysteriously so workers do not know -done in attempt to outside audit to check and see how company is doing all around
ESG
stands for environmental, social, and corporate governance
Maintain Contacts
stay in touch with the people you do work with because you never know when you'll need them. Each individual person has their own way of doing this.
Presenter
the heart and soul of business is being a good what?
Societal Orientation
the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals' and society's long-term best interests
Core Service Failure
the service you have paid for has been botched
niche
the smallest market; one speciality and do it well, but a little more expensive, ex: william sonoma
Openly Angry
they let you know about it. They are easy to identify.
Yeti
they marketed one great product that could keep something warm or cold for a long time
Research
this is how you evaluate is customer service/satisfaction is good. You have to conduct it in order to find out what the customer is saying/thinking.
Why do companies hire mystery shoppers to evaluate the work you are doing?
to evaluate how they treat their customers; figure out good customer service
Why did Adidas steal Kanye West from Nike?
to help make their brand relevant and change their target market to recreate the Adidas brand
Bitterness
tone/grunt in your voice that people interpret
status quo pricing
type of pricing where price matches competition. Match product and hope it doesn't negatively effect product
price skimming
type of pricing where you set the price as high as you can to make as much profit as you can (probably not a lot of competition)
rebate
unique discount where you get refunded; all the elites aren't going to do it
What are the three things that hinder likability?
verbal arrangement, visual delivery, vocal delivery
Price in terms of why customers switch
very important; if prices unfair, people will switch too high - "too much" too low - "what's wrong?"
Societal Orientation
we have grown up with products that feast on this; satisfying a customers needs and giving them what they want while also being good to society and our environment
public, media, community
what 3 relationships levels must be managed?
Service Encounter Failure
when customer service is poor; employee isn't knowledgable (think Apple)
Economic Factors
when money is tight, adjust
Race
white and black -Pepsi targeted blacks to compete with Coca-Cola -no one targeted Hispanics until recently -Chines now being targeted because 3 billion people
tommy hilfiger
who created adaptive apparel for people who are disabled and can't dress themselves
Mystery Shopper
works in company, poses as shopper and you go in and use service you were hired for and you go back to report
core service failure
you are unhappy with service, what they are providing is not what you expected
Shopping
you don't just run in and buy it; you look into it, shop around, more involvement, greater price
shopping
you don't just run in and buy it; you look into it, shop around, more involvement, greater price
Enthusiastic
you have to have a little bit of fire or snap in what you're doing. You can't be a drain on a company, or you will be fired. You have to have a certain energy/light about you. This is kind of like the "it" factor.
Major Threats to Image
▪ Social media-be careful: once you say it in social media, it is out there and people are reading it. It only takes one email, blog comment, Facebook post, etc. to ruin your personal brand. ➢ Exp- Maurice Jones-Drew criticizes Jay Cutler on Twitter. Now the media is ripping him apart for it, and his personal brand is tarnished ➢ Getting involved in social media is like being given a glass sword with the sharp end pointing up....you have to be careful how you handle it.
Phase 3: Maturity
▪ The price/promotion reaches it's peak
Visual Delivery
➢ In 1/24th of a second, an image is created and a person's brand can be created, destroyed, or modified. - Exp- Ricky Jean Francois told everyone on the football team that Karam was "one mean dude". He said he saw Karam walking around the business school and thought Karam was mean because if the default look he gave off. - Exp- Gov. Blanco's default look during Hurricane Katrina. She looked scared and overwhelmed at the press conferences. No one really remembers what she says, just the mental image of how she looked- pathetic, helpless, and useless. - Exp- Rudy Giuliani, the Mayor of NYC after 9-11. Before the event he had low approval ratings, but after the disaster, the way he carried himself made everyone fall in love with him. They didn't fall in love with what he said, but with the way he looked and carried himself during a time of crisis. He had a strong presence/believability factor about him. - Exp- Karam's example of a doctor telling someone they have the flu. If they give off a facial expression of them not caring, the patient probably won't go back to the doctor, or recommend them to a friend.
Verbal Arrangement
➢ This means memorization/PowerPoint isn't as key as you would think it would be. ➢ It's not what you say, but how you say it. That said, the content still needs to be good.
Visual Delivery
➢ Visuals carry vocals, which leads into the rest of Mehrabian's study
Why It's So Hard to Be an 'Ethical' Investor
"I wouldn't say companies are misusing the term, but many investors get confused"
Supermarkets Deploy Sausage Stations, Dad Jokes to Lure Male Shoppers
"Sharing shopping is important to men's assessment of relationship quality, perhaps more so than any other household task"
Rihanna Becomes Face of Puma
"They didn't want to just throw my face on a billboard and call it a day"
Production Orientation
"What can we do best?" "What can our engineers design?" "What is easy to produce, given our equipment?"
Likeability
(Hillary Clinton is not President today because she just didn't get this while Obama did)
4 Marketing-Management Philosophies
- Production Orientation (producing products) - Sales Orientation (sales people to sell the product) - Marketing Orientation (satisfying needs and wants of customers) - Societal Orientation (satisfying needs and wants of customers while keeping the society safe)
Customer Satisfaction
- customer service is part of it - 63% of consumers will change opinion of company based on one indifference that happened to them -- switching from American to Delta because of one indifference at ticket counter - Value these days is so important that customer service now is better in attempt to keep customers - Mystery Shopper - Failure and Recovery - Employee satisfaction can create an environment of better service
Develop and Maintain Long Term Relationship
- long term creates brand loyalty - Short term (restaurants) must create quick relationship - Failure almost guaranteed in business (walk-ons example) - Most know how to recover from failure
Production Orientation
- looks inward and decides what the company does best then produces that product -problem sometimes is product stays on shelf, not always what the customer wants
Service Encounter Failure
- service to you was not to your liking - want someone with knowledge - bedside manner- make you feel they care
Societal Orientation
-Patagonia -Recycled materials made the man MILLIONS. -They were one of the first to embrace the societal orientation. Marketing a product yet keeping the society and environment safe. water -Problem with water and plastic - you throw it away. -The next trend in water is going to be how you can package that water in a sustainable way into recycled empty plastic water bottles. Nike -Several years ago, Nike made a mistake by not complying with that "comma." SWEAT SHOPS. -That's where CREATIVITY comes in- how you can take our society and environment and improve ways, efficiency... - Figured out a way with their machines where they didn't have to stop and start over again. They figured out a way where the machine would make the shoe one continuous piece without WASTING material.
Product Life Cycle
-Productive Introduction -Productive Growth -Product Maturity -Product Decline -Product Extension
Societal Orientation
-Satisfying customers while keeping our society & environment safe -Sustainability -Helps the profitability but also the brand
African American
Demographic Pepsi
age, gender, race, religion
Demographic profile of customer can be broken into
Identification
Enhance credibility by examples you use
Honesty
Enron and Arthur Anderson; #3 thing MBA programs look for; way in which you work; reflection of your company
Chrysler
Everything has a warranty. Some are implied. Written warranty - laptop, car, etc. Ex. Chrysler was the #3 car company int he world. CEO Lei Coco wanted to transform Chrysler. He saw a trend in women --> minivan. There were a lot of people who just needed to get from point A to point B without breaking down --> k-car, boring but affordable and they slapped a TEN Year 100,000 bumper to bumper warranty
Cause Marketing
Extension of community relations. Company wants to take part in some kind of cause, charity, community outreach
values of the day
External environment did Samsonite luggage company respond after September 11
What is the number one visual element?
Facial expression; people look at you before you leave the room and after
$300M for Aging Federer? Uniqlo Thinks So.
Federer emphasized that Uniqlo respected him not just as an athlete but also as person, considering his interests and passions beyond the sport
What is another visual delivery aspect to help persuade people?
Figure out your default look, the everyday look you have. If you can frame and package it better, you can persuade people
Name examples of lifestyle changes affecting companies as form of condtitions
Gillette - men like beards now, hurts razor industry Levis- Levis didn't adapt to the low rise jeans, went from top to bottom; Wrangler and Lee adapted and improved Water- doctors start advising 8 glasses and lifestyles change; these companies take advantage
Customer Satisfaction
Good customer service leads to ____?
premium pricing
Good service means customers are willing to pay more
Neophyte Presenter
Good, average, not perfect but above average
Karam Builds House
Got screwed at first for being too frugal then, I paid a PREMIUM PRICE for a little bit more, but got SENSATIONAL customer service.
Coupons
-When you use them, does the image of the company go up or down? NEVER UP! -Rolex will NEVER offer coupons, because it will make their image go DOWN. -Other companies do coupons to hopefully draw you in -Can you misuse the use of coupons? Can you include them when you should have or shouldn't have? Coupons help a store - it depends.
Radio Advertising
-You know EXACTLY who you're getting. You press that button and you know what you're getting. You can identify who is who by what music that station is known for. XM radio- -Radio is the "land of opportunities" -All you have to do is use technology to improve radio Geniuses - Mike and Mike in the morning, Howard Stern, etc. said "we're going to create our own brand on the radio and look how successful they've been" -RADIO IS A PLATFORM! If that may be the platform you want to use to reach your audiences. Radios are the ultimate in targeting.
Performance
-Your personal branding success is PERFORMANCE (as a young college student it is your GPA, have you had an internship, have you gained knowledge/experience in the world) As you grow, you keep enhancing this attribute, adding qualities to it.
what fortune 500 companies look at when hiring
-interpersonal communication skills -teamwork -honesty -core competency
Targeting (3 Ways to Target)
-mass-marketing: appeal to a large audience -multi-segment: find multiple segments in large population -niche: do one speciality and do it well (its a little more expensive)
differences between sales and market orientations are substantial, can be compared in terms of five characteristics
-the organization's focus -the firm's business -those to whom the product is directed -the firm's primary goal -tools used to achieve the organization's goals
Vocal Delivery
-tone will define you --it is the tone you use when you are giving your vocal delivery --will define what others think of you -killer B's -Pause: ability to be able to learn when to stop, be quiet, when to be reflective, etc.
2 Types of Advertising
.) Product Advertising -Galleria furniture: market is the blue collar person who wants to use and toss it later on. It's in-expensive, affordable furniture. You want to compete in Houston? Good luck. 2.) Institutional Advertising -Whole purpose behind the campaign is to IMPROVE the company's BRAND and IMAGE! -If the image improves, then they will also be able to sell more products. -Oil industry always running these adds to show they are not just villains polluting environment Examples: -BP oil spill -Walmart always looking for goodwill -volkswagen elite care, but needed to restore the innocent brand they once had. Not about selling more cars anymore
media and community
1 objective of marketing is building long term relationships. What are 2 important relationships that need to be maintained
Demographics
1) Age 2) Race 3) Gender 4) Income 5) Geographic 6) Education 7) Occupation 8) Family Life Circle 9) Religion
What are the skills you need to have to be successful?
1) Be creative 2) Be aggressive (not giving up) 3) Be enthusiastic 4) Be smart 5) Be honest (most crippling)
Why do customers switch?
1) Core service failure 2) service encounter failure 3) price 4) inconvenience
What did execs want to position Motel 6 as?
1) Inexpensive - but convenient, safe, comfortable 2) affiliation - who's going to use the same product you're going to use, want a better affiliation for M6 3) Personality - all products have personality; what should M6 be?
What are 4 qualities looked for when hiring someone?
1) Interpersonal communication skills (default look imp. here) 2) Teamwork (make everyone in the group look better than you) 3) Honesty (can I trust you to behave) 4) Core competency
3 distinct populations that Walmart will target
1) Low income people who want the best price and lowest deal; paycheck to paycheck type of person 2) Low income (not as low as above), want somewhat name brand stuff 3) People who just need home items and don't care what brand it is
Results/Benefits of Good Customer Satisfaction
1) Referrals 2) Premium Pricing 3) Increased Usage 4) Reduced Selling Effort
Components of Credibility
1) Trust 2) Expertise/Knowledge 3) Position, Status, and Success 4) Personal Brand 5) Identification 6) Charisma
unethical pricing tactics
1. Bait and switch: Price low and say "sold the last one, but we have this" 2. Predatory pricing: price low and knock out competition 3. Dynamic pricing: internet. Constantly changing price
Reasons Customers Switch
1. Core Service Failure 2. Service Encounter Failure 3. Price 4. Inconvenience 5. Failure to Respond to Service Failure 6. Attraction for the Competition 7. Unethical Behavior
5 Traits that Market Yourself
1. Creative - think about ways to solve problems 2. Aggressive - thinking of another way when you're turned down 3. Enthusiastic - don't wear down the culture 4. Smart - problem solve, get things done, be reliable, intelligent 5. Honesty - trustworthy: most crippling: will get you on your resume: will take care of most of ethics
2 ways to reduce cognitive dissonance
1. Get validation/reaffirmation from a friend a. That's why people always ask their friends for what they think, their opinion 2. What was the attribute that forced me to buy in the first place? a. You may read the LABEL again b. You see that it is legitimately made of leather and you know it's the real deal leather Whatever that attribute is, you go look back at it again and that may help you VALIDATE your purchase again.
3 Objectives of Branding
1. Identification 2. Repeat Purchases 3. Introduction of New Products
3 Distinctive Populations Walmart will Target
1. Low income people who want the best price and lowest deal. (day to day paycheck) 2. Low income (not as low as #1) want somewhat name brand items 3. People who just need home items & don't care what the brand it
Pricing Tactics
1. Rebates: coined in 1975 2. Single Pricing: dollar store, dollar menu 3. Professional: Lawyers, dentists, car 4. Loss leader: regular company, runs ad pricing name brand product lower than you've seen it. Then they surround you with other products you want - coke, whiskey, popcorn, etc. 5. Psychologicall pricing (Odd/Even) - Odd number notes bargain. Sales advertisements are $100, $2,000, $900. porch is the same. Kay's will say 499.99. Expensive restaurants use $8, $9, $19 6. Precise/Rounding: In negotiation, use precise numbers. They indicate more thought. 62,700 vs 65,000
Customer Service Yields
1. Referrals 2. Premium Pricing 3. Reduces amount of money spent on advertising
Factors of External Environment
1. Social Factors 2. Economic Factors 3. Technological Factors 4. Competitive Factors 5. Legal/Political Factors
3 Primary Functions of Packaging
1. Stores & Protects the product 2. Facilitates recycling 3. Promote the product
3 Branding Decisions
1. Target is better than Walmart (1-2% difference is sales price) Recession --> Walmart 2. McDonald's, fat kid --> introduced healthy choices and improved sales by 8% 3. Tiffany's sold a $45 bracelet with target market of girls 14-18. Sold enormously well with $35 million, but it wasn't good for the brand. It diluted it. You weren't supposed to get the blue box until you were older.
What lesson is learned from the United Breaks Guitar?
1. United didn't have a recovery plan in place- When failure take place you have to have a recovery system in place. All they had to say to him was "how much was it?" OR "we can't do that, but here's a voucher for a future ticket and you can go anywhere in the US." Sometimes it's not the money as such as it is the acknowledgement of the person and the problem. 2. The power of social media
Dissatisfied Customers
1. Verbal Customers 2. Silent Customers
Characteristics of Promoting Product
1.) Color -Serves as a source identifier. I.e- LSU=Purple n gold 2.) Shape -Shape of can, or product, make it more appealing 3.) Smell -attempts to bring back memories 4.) Label four purposes: -Construction (whats in product) -Instruction -Nutrition -Cognitive Dissonance (Self doubt following the purchase) Cognitive Dissonance can be eliminated if your label can assure you of your purchase
Level One- Market Analysis
1.) Company 2.) Competition UPS v. Amazon Prime 3.) Customers -Who are you going to target your product toward? -We look at DEMOGRAPHICS because it's HARD! Demographics considered: Age, Gender, Race, religion 4.) Conditions -everything that changes in the external environment -You have to be able to see and adapt to the changes and then you can tweak, innovate your products Examples: Social factors, Lifestyles, Technological, legal (when laws are passed, u must comply), economic
Trojan Fish Strategy
15 cents for one gold fish. You buy two fish and now you have to buy a bowl, but get tired of the bowl, then you have to go buy the tank so that it can filter the water. You have to buy reef, rocks, etc. Now that 15 cent purchase is has now turned into a huge investment for a fish. Examples: -Printers and ink -Razors (gillette) and blades
Name an examples of company looking at race demographic to grow
1940s, Pepsi is losing hard to coke, realizes African American demographic isn't being targeted Home Depot post Katrina starts putting the spanish translation under the english for the aisle markers Newport Cigarette - targets not white population
how much of your emotional impact is judged by your visual delivery?
55%, facial expression is the number one component of visual delivery.
What % of people will change a purchase decision based on the indifference of one person?
63% You need be alert, and seeming to care when dealing with customers
Verbal Arrangement
7% of emotional impact is in ______________ of your message
verbal arrangement of the message
7% of emotional impact is judged on what?
how much of your emotional impact is judged by vocal arrangement of your message?
7%, content is king and verbal arrangement is the answer.
What % of people will tell at least 1 person after a bad experience with a company? How many of that % will tell a higher authority of the company?
77% Only 7%. If you are a manager you need to speak with customer directly. if 77% of people are spreading things about the company by word of mouth, it can be absolute lethal
Status Quo Pricing
80% of all business choose this style; choosing to find point in difference in something other than prices and maintaining same prices as everyone else
status quo pricing
80% of all business choose this style; choosing to find point in difference in something other than prices and maintaining same prices as everyone else
Supermarkets Deploy Sausage Stations, Dad Jokes to Lure Male Shoppers
A new study found that men who participate in grocery shopping have better relationships
service encounter failure
A person that works for the company did not treat you well and because the service was so bad you do not want to go back again. Have to show that you're polite and knowledgeable.
The Summer of Plastic-Straw Bans: How We Got There
A viral video in 2015 involving a plastic straw stuck inside of a sea turtle also sparked the conversation that led to the bans
7%
According to Al Morabian, what percentage of emotional impact is judged on verbal arrangement?
55%
According to Al Morabian, what percentage of emotional impact is judged on visual delivery?
be inward looking, focusing on selling what the firm makes.
Aphroditera Inc., a company that manufactures beauty products, follows the philosophy of sales orientation. In this case, the workforce of Aphroditera Inc. is likely to: (A) be inward looking, focusing on selling what the firm makes. (B) put extensive efforts in customer relationship management. (C) refrain from aggressive marketing and promotional measures. (D) focus on determining the needs of its customers and designing a sales strategy accordingly.
Personality
Are you going to be "THAT" person and you want "THAT" personality, if that's what you think will sell and that's what you want to be, then the answer is yes. Personality can be edgy, unique, athletic, whatever.. But you have to think about how you want your brand to be, and clarify it.
Supermarkets Deploy Sausage Stations, Dad Jokes to Lure Male Shoppers
As more men go grocery shopping, stores notice
Customer Value
Be able to show how you can add value to the company, be creative. Customer value=Benefits-Cost. EX: First class flights- getting on early, off early, refreshments. Benefits are bigger than the costs!
Two or more products together at one price
Bundling is: a) Weave terminology b) Two or more products together at one price c) A deal
Competitive Factors
Can be pushed by the competition Fill the void to satisfy customers
Show-Runner Presenter
Can step up and are just good, poised, and wonderful. Maybe about 10 in the class
Cause Related Marketing
Consumers are 76% more likely to purchase a product from a company involved in cause related marketing than a company not involved at all Problem with cause related marketing: -OVERSATURATION -Too many people have exploited this opportunity Ex) Natural Products article/Organics - people think everything is organic and pure, but the whole deal is oversaturated. Once there is a crack in the shield, the brand is DESTROYED
A Spoonful of Sugar Helps the Sales Go Up
Consumers care less about nutrition and more about good flavors and colors
What are some (6) pricing tactics?
Coupons Rebates- coined in 1975 Single pricing- dollar store, dollar menu Professional- lawyers, dentists Loss leader- runs ad lower than you've seen, surround with products you want Psychological (odd/even)- odd number notes bargain Precise/rounding- in negotiation use precise numbers, indicate more thought Bundling- more than two products together for great deal
Customer Satisfaction
Customers must be happy with what they bought, come back and talk good about you and give a high rating. Service, quality, and delivery
What does the customer satisfaction concept consist of?
Customers must be happy with what they bought, come back and talk good about you and give a high rating. Service, quality, and delivery
Name an example of company looking at female demographic in order to grow
Harley Davidson doesn't want to lose its main demographic (Harley man), but needs to expand; make a bike for women with Harley look and feel
Sponsorships
Has incredible opportunity for you to grow, strengthen, build YOUR brand or *BLOCK OUT other brands!*
Arrogant
Hate to be wrong, refuse to admit they don't know something, better than someone, or above certain things
it uses skilled sales force to move products
How do sales orientation differ from marketing orientation
Promotional Mix
How you communicate with the consumer. What you do to REACH that consumer. Purpose 3 Folds: 1. Inform 2. Persuade 3. Remind you To make sure YOU DON'T FORGET that "we are that dominant product."
Service Failure
Karam thinks some companies are so good with their recovery plan system that they may sometimes fail on purpose.
A Spoonful of Sugar Helps the Sales Go Up
Kellogg, GM, & Post are diversifying their businesses thru buying smaller brands that make other foods to protect them from cereal sales determining their fate
Television Advertising
Key is reaching that SEGMENT OF THE POPULATION who is watching that show. -The greatest time to advertise is the SUPER BOWL! -Best time to advertise for the elderly is EARLY AFTERNOON, EVERY DAY! -Best time to advertise for college students, AT NIGHT! Example: Galleria furniture: market is the blue collar person who wants to use and toss it later on. It's inexpensive, affordable furniture. They bought it at 1:30-3am, because the target market was people who STAY OUT LATE, people who have odd hours, people who are trying to make a living, etc. He struck gold for nothing. Grew so big warren Buffet bought a furniture gallery, to get in the furniture business.
hiring the right people
Key to service profit chain
The Summer of Plastic-Straw Bans: How We Got There
Kim Kardashian told her 115,000,000 IG followers that she stopped using plastic straws
Empathy in Relationship
Know the people you are talking to in-depth
Credibility
Knowledge + confidence + connection
How can you control, manage, and camouflage nervousness?
Maintain a default look that looks comfortable, manage your inflections
family and friends
Nelson study, which ranked most trusted way of consumers gathering info
Value
One of the challenges to customer value is creating _____________ in a product
7%
Only ____% of those who have had a bad experience will tell a higher authority/service provider
7%
Only _____ percent of those who had bad experiences are going to tell a higher authority
Charisma
Overall delivery/presence/poise
Price Skimming
Pricing a product at the highest level market can bear can get away with this with little/no competition; when competition catches up, price must be adjusted ex) Starbucks' $15 cup of coffee ex2) 51% of Mercedes are leased
4 Components of the Marketing Mix
Product Price- elite vs. inexpensive Place- Where will your company be? Promotion- advertising, public relations, sales promotions
Bell
Product Life Cycle has a ______ shaped curve
Females
Puma is targeting _________ so it chooses Rihanna as its spokesperson
How can you keep them for four?
Research says if you can land someone as an insurance customer, you can keep them for three years. What challenge does that present?
Why It's So Hard to Be an 'Ethical' Investor
Research shows that ESG may help boost returns alone, but disregarding the "sin" stocks could hamper them
Production Orientation
Researchers at Fresnas Inc. invented a new form of glass that filters harmful rays of sunlight and blocks heat. Without researching the market conditions, Fresnas Inc. went ahead and manufactured windshields with the new glass. It hopes that customers will like its new product. In this scenario, Fresnas Inc. has adopted a
Two Types of Credibility
Resume credibility- written or spoken resume Authenticity- Who are you? Are you genuine? Are you likeable? Are you rigid?
Price Skimming
Set the price as high as you can for as long as you can until competition catches up
Penetration Pricing
Set the price as low as you can to get market share, name recognition, and get people to try the product
Rihanna Becomes Face of Puma
She was happy with the vision for the collaboration/creative freedom they gave her
What does the developing a long-term relationship concept consist of?
Show appreciation, do nice things for people that give you business EX. Companies give Christmas presents, it is what makes an industry wonderful
Point of Purchase
Signs that draw your attention in the store. You have a bunch of clutter in the grocery store that draw you to whatever aisle in the store What are the whole purposes of point of purchases? 1. Advertise a product -Wherever you are in the store, you see it 2. Draw in traffic -People to walk in the store, see your display and draw them in to look at it 3. Impulse Buying You go in there to get milk, but come out with things that you had no intention of buying
Societal Orientation
TOMs is an example of utilizing
Showrunner, Neophyte, Artist
What are the 3 types of Presenters? a) Showrunner, Neophyte, Artist b) Seller, Showruner, Artist c) Neophyte, Artist, Seller d) None of the above
Production orientation, Sales orientation, Marketing Orientation, Societal orientation
What are the 4 parts to the Marketing Management Philosophy? a) Production orientation, Sales orientation, Marketing Orientation, Societal orientation b) Societal orientation, Management orientation, Legal orientation, Production orientation c) A & B d) B & C
customer value, customer satisfaction, credibility
What are the three primary marketing concepts?
Motel 6
What brand used focus groups that brought about 3 changes: reposition, personality, and affiliation?
Customer training program
What did Delta Airline do to improve their profitability?
Professional Advancement
What do companies look for?
Athleisure
What does under armour use to attract customers?
Implementation
What is level 3 of Marketing Strategy Framework?
Strategy Development
What is level two of Marketing Strategy Framework?
Best Buy employees are more knowledgable
What is one to reason to shop at Best Buy instead of Walmart for a camera?
- Vocal delivery - Visual delivery
What makes you likable? - your ____ delivery, and - your ____ delivery.
B. Recommend Be cautious when somebody is using this term to you. This word is apparently enticing
What one word enables your word of mouth to be more persuasive? What one word has a bigger impact to pass on word of mouth? A. "I LIKE this product" B. "I RECOMMEND this product." C. "I ENCOURAGE you to try this product."
80%
What percent of businesses use Status Quo pricing?
38%
What percent of the emotional impact that you have is judged according to your voice and vocal delivery? a) 98% b) 38% c) 20% d) 2%
7%
What percentage is judged according to the verbal arrangement of your message? a) 1% b) 12% c) 10% d) 7%
76%
What percentage of customers are more likely to purchase a product that's involved in cause marketing than those who are not?
Be prepared, show that you care, have a plan
What should you do with service failure?
Arrogance, people will judge you harshly
What will limit your growth even if you sound smart and knowledgeable?
If you mismanage, or snap
What will people remember no matter what?
Recommend
What word has a bigger impact on a person when talking about a product by word of mouth
legal/political
When car seats became required, it gave rise to the opportunity for car seat makers to make more money. This is an example of how _____ factors affect the market industry.
A Spoonful of Sugar Helps the Sales Go Up
When the brand does something that the consumer doesn't like, the consumer will let the brand know
Likeable
You market yourself and sell yourself if you are
Default Look
Your facial expression defines you. Default look is your everyday expression. Either likable or your downfall
Paramount (more important than anything else) Manage
Your tone of voice is , you've got to hear it, if you can hear it, you can it.
77%
_____ percent of people who have a bad experience will tell at least 1 person.
63%
_____ percent of people who will change a purchase decision based on the indifference of 1 person.
77
_____% of people who have a bad experience will tell at least one person and embellish the story
77%
______% of consumers who have had a bad experience will tell at least one person
63%
______% of consumers will change a purchase decision based on the indifference of one person
38%
_________ of the emotional impact you have is based on vocal delivery
Facial Expression
________________ is the number one component of visual delivery
Creativity
change problems market/sell yourself; think through problems
Dynamic Pricing
changes, flexible pricing ex) airplane tickets
credit card
chase bank ran the _____ through the marketing mix
External factor to be considered in info search
commercial, personal, public
Warm Glow
companies that do things that are environmental friendly
5 Reasons a Customer takes their Business Elsewhere
core service failure service encounter failure price inconvenience attraction from competition
Customer Satisfaction
customers' evaluation of a good or service in terms of whether it has met their needs and expectations
Developing long-term relationships
develop relationships to hold onto business and maintain relationships so that in case you fail, the recovery will be more efficient. Power of Appreciation, Entertainment (box seats at Tiger Stadium), Responsive, Reliable, Empathy, Assurance
Points of Difference
differences between products which make you buy one over the other ex. Lawn mowers: both cut grass at equal quality but one is quieter than the other so you buy the quieter one.
Trust
difficult to repair once broken
Family Life Circle
divorced, engaged, empty nest
Neutral
don't know who you are
Dress
dress one notch above audience
Conditions
everything that changes in the external environment; have to be able to adapt and change(social factors, lifestyle, technology, economic, legal/political);part of Market Analysis
Single Pricing
ex) Dollar Tree, McDonald's Dollar Menu
Kleenex
example of a master brand
Multi Segmented
find multiple segments in large population; low income people look for needs, people who like brand names (fruit of the loom), and rich people who want household goods
7-9
focus groups generally have ____-_____ people
Positive
good credibility
Service Profit Chain
good employee satisfaction--> good customer value--> good customer satisfaction -->customer loyalty--> profits
3 Benefits of Good Customer Service
good for business premium pricing reduce selling time
Neophyte
good not great; average
prospect theory
has to do with the fact that a negative event can ruin everything because it is easy for people to remember the bad things.
What are the 4 criteria for effective segmentation?
identification (find the segment you want to talk about), accessibility (can you reach them visually/in person or through marketing), responsiveness (do they have ability to do what you're asking), substantial enough
Criteria for effective segmentation
identification, responsive, substantial, accessible
points of difference
identify how your product can separate yourself from the competition
Aggressive
if at first you don't succeed, try, try, again". You have to keep trying, even when it's not as easy as you wish it would be. You have to stay focused and determined, and never give up, even if you have to start from scratch. (exp- Ford motor company was all but dead, but they didn't give up, and now they are a juggernaut again.)
Trust
if you come to the decision to tell the truth or lie then TELL THE TRUTH. Once trust is gone it is very hard to gain back. Lance Armstrong lied about using steroids so now no one buys his livestrong bracelets anymore
Visibility
in the social media world it is a platform. It is a way to be able to speak, seen and carry your brand. Puma hired Rihanna because of her visibility, she has a large following so people will buy more Puma if she is promoting it
Buzz Marketing
is a way of putting your product in the hands of decision makers so they can spread the word.
Sales Orientation
is based on the belief that people will buy more goods and services if aggressive marketing techniques are used to convince potential customers to buy
Public Information
is information not produced by the company like government documents or consumer reports magazine
Burger King
is one of the only restaurants not moving towards the health fad, so they started selling hot dogs
Money
is the $ good? o Exp. Wal-Mart employees say they aren't getting paid enough and a lot of them seem unmotivated at work o Karam mentioned an example of a company that implemented a raise by 25-30 cents an hour. Even this small, miniscule amount got everyone excited and made all of the employees work harder and be more driven.
Shaquille O'Neal
is the face of new big and tall collection at JCPenney
Recovery
is the key to dealing with service failure.
Water
is the number one liquid because of marketing
Switching
is when a customer takes their money from one place to another. "i'm no longer shopping here, i'm shopping over there"
Satisfying
leads to marketing concepts
Strategy Development
level 2 of Marketing Strategy Framework; segmentation, targeting, position of the product
implementation
level 3 of Marketing Strategy Framework; includes the 4P's
Marketing Analysis
level one of the marketing strategy framework is ________ which has to do with analyzing the environment and studying how social, economic, competitive, technological, and legal/political affects this environment.
Strategy Development
level two of the marketing strategy framework is _______ which has to do with figuring out what part of the market you are going to target, identifying specific consumers, and getting the product to them.
Referrals
little different then word of mouth. when someone asks for opinions. like FREE advertising!
convenience
low in level of involvement; bubble gum; candy; don't spend time searching; quick and easy
Pauses
manage info by saying nothing and be comfortable
Societal Orientation
market orientation while keeping society and environment safe Eco-friendly
Lennard's
marketed toward college graduates with debt
3 Effective Ways to Look at Targeting
mass marketing multi segmented niche
Negative
minimal, not good
Traits
most important trait is the one you decide
Identification
no one is perfect, but work hard to portray an image of yourself
Artist
nutty person who likes to speak
Responsive
o Be responsive to clients needs/requests o If they call needing you, you need to reply to them/meet with them in a timely manner. o Exp- if a heater goes out at someone's place, the ability of the AC Company to be responsive will make all of the difference. Time is valuable, it prevents people from switching.
Ability to be able to change premium prices
o Good service means customers are more willing to pay more o This is not price gouging
Promotion
o How are you going to take the product, with the price, and tell people where to get it. o You have to promote/get your message out about the product to the customer you are going after. o Advertising and PR are really big here since this is about communication. o Personal selling is also big here.
Price
o If the price is too high or too low, you could be done. o It is a reflection of quality o Price is the easiest thing to alter, but it can be the most sensitive thing to customers and whether they buy the product or not. o Exp- Lexus ▪ Karam was driving by and he saw a 2005 Lexus for sale for only $2,000. He instantly thought that was way too cheap and something had to be wrong with it. He actually misread it and it was for sale for $22,000, which sounds more reasonable. o Exp- Karam and his personal branding experience ▪ He does this often, but he doesn't know how much his advice is worth, so he doesn't know how to set a price. One guy Karam was working with told him he needed to up his hourly charge or no one would take him seriously, but Karam refused. Eventually it came back to hurt Karam. He gave advice on a presentation and then got an offer to go to Switzerland and do an even bigger presentation, but they backed out once they saw his price. Karam was asking for only $200 an hour, whereas most professionals that give personal branding advice ask for at least $10,000 a day. It made him look like he was so cheap that his advice wasn't worth listening to.
Service Profit Chain
o It leads/drives good customer satisfaction o It starts with good employees job satisfaction ▪ A good employee satisfaction (happy employees/hiring the right people) leads to good customer value, which leads to good customer satisfaction, which leads to customer loyalty, which then leads to profits. It's a cycle. ▪ Hiring the right employees is key ➢ Exp- Canes-their secret ingredient is hiring the right people that are outgoing and positive. It helps create customer value because customers that go to Canes are getting great service along with quality food for a cheap price. ➢ Exp- Starbucks also excelled in this area. ▪ You have to train employees- think back to the Delta example.
Deceptive Pricing
price on the surface isn't what it really appears to be. ▪ Exp- internet prices appear to be cheaper, but by the time the tax and shipping/handling charges are added on, it ends up being a lot more than you think.
penetration pricing
pricing product/service a little below normal rate to gain entry into market place and gain brand loyalty ex) Tiffany's - too good for penetration pricing, CEO made a $45 bracelet that devalued the entire brand
Penetration Pricing
pricing product/service a little below normal rate to gain entry into market place and gain brand loyalty ex) Tiffany's - too good for penetration pricing, CEO made a $45 bracelet that devalued the entire brand
"Lost Leader"
pricing tactic to draw you into the store where you're going to buy a name brand product that they've strategically located in the store; you feel good about the steal and buy something else too
Gender
product exclusively decision for male/female -Jordan w/ jump man
Marketing Mix
product, price, place, and promotion
Component of marketing mix
product, price, place, promotion
What are some of the yields of good customer service?
referrals, premium pricing (will pay a little extra for good service), reduces amount of money spent on advertising (word of mouth is more utilized)
Price Gouging
refers to a situation in which a seller prices goods or commodities much higher than is considered reasonable or fair.
Likeability
relates to the fundamentals of marketing ▪ Good customer service leads to good satisfaction. ➢ You can't have good customer service if you don't have the likability factor due to not knowing how to present yourself.
Prospect Theory
research helps you determine what the prospect theory is ▪ This theory says human behavior makes us remember outrageously bad things that happen over good things. ▪ This is one potential reason why customers might be turned away ▪ This is the philosophy of how one little minor negative thing can trump all of the good things that have happened. ➢ For instance, one bad employee can ruin an entire company's brand to a customer.
Occupation
retiree medical student
Marketing Orientation
satisfy the customers needs and wants by providing them with the products and services they desire; (everything this course is about); marketing concepts
Marketing Orientation
satisfying customers' needs and wants by providing them with the service they need
Societal Orientation
satisfying customers' needs and wants by providing them with the service they need WHILE keeping the environment and society safe
Marketing Orientation
satisfying the customers needs and wants by providing them with a product or service that they will use; satisfaction driven
Sustainability
says want to keep society safe and to leave the world a better place ▪ Wal-Mart and the squiggly recyclable light bulbs ▪ Exp- Nike and shoes ➢ Nike determined that for every pair of shoes that are made, enough material to make another shoe is "left for nothing" on the factory floor .there is a lot of wasted material. Nike said it would be a better company if they redesigned machinery to save more material.
Likeability
selling yourself is related to _____, which is the emotional impact you have on someone
4 Product Components
service after sale warranty brand packaging
job satisfaction
service profit chain starts with what?
price skimming
set the price as high as you can for as long as you can until competition catches up
penetration pricing
set the price as low as you can to get market share, name recognition, and get people to try the product.
Redbull uses the __________ of its packaging to promote its product
shape small cute can 5 hour energy also does this; altoids
What is the next predicated trend in water?
solving the problem of plastic - how to package in a sustainable way
Fast; Slow
speaking too ____ is more persuasive than speaking too _____
segmentation, identification, and accessibility
strategy development has to do with _______ (what part of a market are you going to target), ________ (people who travel, college students, the elderly, etc.), and _______ (getting the product to them)
Thin Slice
the 1/24 of a second it takes to define your brand
religion
the __________ demographic is hard to market to because it's so easy to offend
Involvement
the amount of time and effort a buyer invests in the search, evaluation, and decision process of consumer behavior
Sales Orientation
the belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits
Societal Orientation
the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals' and society's long-term best interests -ex: marketing products and containers that are less toxic than normal, more durable, contain reusable materials, or are made of recyclable materials
customer loyalty
the number one thing customers want in the utility industry is the creation of
verbal and silent, long term relationship
the two types of unsatisfied customers are ______ and _____. In order to recover from this, you have to do the right thing but you can't give them too much. Recovery is easier if you develop a ________.
why did Puma chose Rihanna to market their brand
they chose Rihanna because of her personality and her brand.
Production Orientation
they don't care about the customer, consumer, or people; they only care about making a product the best they can
Remorseful Customer
this is the dangerous one. This is the unsatisfied customer that you don't know about, and they are harming your brand just as much as the openly angry customer. They are talking about you behind your back about how unsatisfied they are, but they won't say anything to your face.
Social Factors
values, lifestyles (always changing) Example is luggage in airports got smaller- Samsonite
service, quality, delivery
what are the 3 components of customer satisfaction?
production, sales, marketing, and societal orientation
what are the 4 marketing/management philosophies?
trust, sincerity, expertise, position
what are the elements that enhance credibility?
United Breaks Guitars
what case study is an example of customer satisfaction?
UPS, FedEx, and the US Postal Service
what companies are an example of having to analyze the competition in the level of marketing analysis?
sapphire
what credit card revolutionized chase bank?
football team colors
what is an example of a source identifier?
Customer Service
what is the main reason customers switch companies?
facial expression
what is the number one visual element?
Perceived Image
what people actually view you as. May or may not be the same as your desired image.
Desired Image
what someone wants people to see them as
Tone of Voice
what will define you more than you think?
What is points of parody
what your product is and how similar it is to the competitors product
Warm Glow
when companies do things that are environmentally friendly
Market Yourself
you have to be able to know how to present yourself and make people you. You have to target the right people with the right idea.
Intelligence
you have to be smart/bright. You have to have a good feel for every industry you're in. are you able to do what someone tells you to do, and do it well/accurately.
Honesty
you have to be trustworthy/will do the right thing. You need to be dependable, and won't fall under temptations such as giving out company info to other people for certain incentives. Business ethics are wrapped around the concept of honesty. (exp- look at Enron. Dishonesty is what made the entire company collapse). A good example of honesty can be seen in one of Karam's former students. Karam wrote down the wrong score by over 100 points. (the kid's grade on moodle said he got a 190/200 when he really got a 90/200.) The student went to Karam and told him the truth, causing him to lose his A in the class. That is the definition of honesty and morality to the extreme.
Sell Yourself
you have to have those skills that make you stand out and make people want to "buy" you. This is the only one of these four things that there is a model for.
Networking (Know People)
you have to know people. (he used the example of the NOLA Mold Guy that used his connections to make a huge profit in New Orleans right after Katrina)
Personal Selling
you're always selling yourself. This is about how to represent yourself. It's about who you are and how you can package yourself to be seen by the market you're trying to sell yourself to.
1/24
your personal brand is created in ______ of a second; the image of you by someone else is created
Performance
your personal branding success; will grow as you enhance it and take advantage of opportunities
Charisma
your poise, your presence, personal brand, the way you carry yourself, your delivery; where are your weakest points and how do you correct it?
Rihanna WSJ
• Apparel companies are wanting to expand to other people out there, other than athletes... So Puma picked Rihanna, a female and an entertainer with a HUGE personal brand. Puma is targeting FEMALES (after narrowing product lines, simplifying designs, and shrinking color schemes) Sales increased. So other brands, Adidas, picked Kanye West, persuaded him to leave Nike to help make THEIR brand RELEVANT! They wanted help on changing their TARGET MARKET to RECREATE their Adidas brand! IF you get a personal brand and the population is large enough then we should be able to put a product on the hands/feet of that person to make that brand MORE visible and MORE MARKETABLE!
Race
▪ Back in the 60s in the civil rights time, a lot of companies were shunning a huge population. Economically and from a business standpoint that's stupid. Pepsi was the exception. They tried to make the product attractive to the black population too. They put black people in some of their ads. Sales grew because they found a particular niche and they were able to grow that niche into a significant market. ▪ Hair companies make products specifically for black people hair. ▪ For Hispanics there are translated labels from English into Spanish because of the huge non-English speaking Hispanic population in the US. The font size on products used to be 32 for English and 18 for Spanish, now it's close to even, and Spanish font may now be larger than English in Home Depot/Lowes. ▪ China- forget about them coming over to America, you should do what Kobe did and go over there because of their huge population and all of the opportunities they have. ▪ The list of races/ethnicities/countries goes on and on.
Gender
▪ Do you target males or females or both? If both, what percentage of each? ➢ Goodell and the NFL are trying to target more women to get into the NFL. There are a lot of commercials on TV during the games where girls are watching the games on the couch with the guys. A tip- look at the commercials and the kind of people in them. That's usually the target audience they are going after. ➢ NFL "Play 60" campaign is not just about getting kids active, its also about getting them to buy NFL stuff too.
What do companies do when service fails?
▪ Every company has to have some kind of mechanism in place for when service failure occurs. (service failure will happen one time or another. It's inevitable. Someone will get let down at one point of time or another.) ▪ Delta Airlines admitted failure and they decided to require customer service training.
Occupation
▪ Find a specific occupation and provide them with a new product, or an adjustment to a current product, that will help them in their line of work.
Motel 6 Rebranding Position
▪ How will they position Motel 6-> they wanted a highly economical, safe, clean, convenient place to stay for people that are traveling on the highway. ▪ Ads would show the new improvements to the hotels as well as the new colors. ▪ They used their price to show they could be the lowest priced hotel of all the large national hotel chains. ▪ They positioned it not as a vacation hotel, but for professionals/families that were traveling on the road.
Phase 4: Decline
▪ It has run its course ▪ Price/promotion decrease ▪ However, not everything dies (technology usually does though)
Specialty
▪ It might be a little niche place you go to in order to get a specialty item or a specific name brand ▪ Typically nicer , more "luxury products" so therefore the price is higher ▪ The price is usually more and there is a higher level of involvement ▪ You search hard until you become a loyal customer
Education
▪ Lower education people don't need a lot things others do (laptops/high tech stuff) ▪ Blue collar people may not have the same desire to buy the same things white collar people do.
Income
▪ Rich/poor/middle class
Visual Delivery
➢ Don't overreact to people that don't look enthusiastic about your presentation, some people's default look doesn't really represent how they really are feeling/who they really are. - Exp- Karam went to some meeting on personal branding and was talking to everyone about default looks. There was a lady at the meeting that pulled out a little compact mirror thing and looked at herself in it. She started crying, and said she now knows why she had been fired so many times in her 31 year career because she looked so angry and mean. For 1 hour and 58 minutes the woman sat at tables looking at the presentations and gave off a bad look. It wasn't her 2 minute presentation that people hated, but the 1hour and 58 minutes of her sitting listening to everyone else. If people don't like you, you may not keep your job.
Visual Delivery
➢ Dress/cleanliness is important, but facial expression is the most important. - Clothing style, tattoos, piercings, etc., are what make you who you are. They are part of your personal branding.
Visual Delivery
➢ Eye contact- be careful with it (too much/too little)
Artist
presenter that looks weird and does thing weird on purpose. Look past image to see underneath good information
status quo pricing
price match competition. Match product and hope it doesn't negatively affect product
Media Relations
-A relationship with an individual who happens to work for an outlet, that transmits certain information down a certain medium -Companies that can manage a crisis best are the ones that can manage the media the best
Level 1: Marketing Analysis
-Analyze company -Analyze competition -Analyze customers -Analyze conditions
Visibility
-Athletes come to LSU for visibility. The LSU football brand is the 5th most valuable brand. 1, Texas. Visibility in the social media world is a PLATFORM. It's a way to be able to *speak, seen, carry your brand in a way that is important for visibility*. Brands always want people to be an extension of their brand because of the VISIBILITY they have.
Consumer Behavior- The Path to "Power" (Purchase)
-Consumer decision making process that we go through and how we think about these situations and why you do what you do as a consumer -Persuasion is the conscience attempt to motivate you the consumer to move you to take action, to buy the product, etc. and to be good at this consumer decision making process. You have to know there is NO purchase if I can't get you into the building, onto the website, if I can't talk to you, etc. They KEY to persuasion is to get someone INSIDE THE DOOR! "If you don't want to be converted, don't go to the revival."
What does Delta Airline do to improve profitability?
-Customer training program. -Training - they like you enough to ship you off and train you the way they want you to be. To be able to be better, efficient in the ways of the company. Then your VALUE in the company goes up above everyone else's value and then good things start to happen.
PRODUCT PLACEMENT of the SuperBowl - Winners and Losers
-Embedded advertising -Companies measure how many times your brand is mentioned VERBALLY 1 headset: Bose 1 Drink: Gaterade 1 Laptop/ tablet: Microsoft Companies Involved the stock price goes up .004 after the super bowl. Win on Sunday, Win on Monday. THE WINNERS ARE THE OWNERS OF THE COMPANIES!
CASE STUDY - United airlines (Harvard Business School Case Study) "United Breaks Guitar"
-He goes to customer service and complains, "my favorite guitar is broken!" United basically wrote him off like it was nothing. So, he went to someone else. They did the same thing to him. -The guy wrote a song, "United Breaks Guitars" and put it on YouTube, with over 3-4 million followers of it. Because ONE person in the United frontline refused to accommodate the guy, the company got horrible, viral, publicity
Personal Selling
-How do you go out and fulfill a sales orientation and these individuals can go out and sell products? -Personal selling is a VITAL part of all of marketing and belongs under the promotional mix as #4. One on one interaction
Thin Slice
-Images are created as quick as 1/24 of a second. -Personal brands are created as fast as 1/24 of a second -A brand can be created and destroyed fast
Odd-Even/Psychological Pricing
-Numbers that end in an ODD number are perceived as cheeper and a better bargain -Numbers that end in a ROUNDED number are seen as a little bit higher quality
Warton Business School Study Why Customers SWITCH?
1.) Core Service Failure -Why you buy the service your getting. -Are they delivering? 2.) Service Encounter Failure -Person was rude, indifferent, cold, and you get angry. -If you lack knowledge, the customer will get frustrated and switch to someone that has knowledge. (Best buy over Walmart bc of technical expertise) 3.) Price -Price is lethal -Unfair pricing can be signal for people to switch -Pricing at wrong time Sooner or later, you're going to have to put a price tag on yourself. ie: -Dominos and carryouts charged wrong -netflix- almost doubled pricing fee and customers felt it was unfair. 4.) Inconvenience -You can have best location, but if its inconvenient no one will go -i.e.: (chimes has tons of parking) (Calendars had to move bc CC's was right there and had no parking) 5.) Cultivate long term relationships -Business relationships -The NFL controls 80% of tickets You want to cultivate relationships buying the person a ticket isn't cultivating those relationships, it's the 3-4 days before the game that you're spending time with your client.
Benefits of Sponsorships
1.) Exclusivity -One of the greatest benefits -If you can get it, it makes your brand pretty special and if you become a sponsor you will get enhancement, brand exposure and blocking out the competition. 2.) Signage -Where your brand is going to be seen (Rihanna and Puma). The celebrity then steps out with the product on... VISBILITY. 3.) Cobranding -Event next to the event you have the brand name. -Opportunity for your company to use the marketing of the venue you are sponsoring. (Think town olympics is held in) 4.) Hospitality and Entertainment -Perks you get from entertainment - tickets, backstage passes, etc. -$12,000 will get you a seat behind Lebron James, you'll be seen on TV for a little bit and sit behind a legend, but if you're a SPONSOR you get that ticket for FREE!
How do we get information? Various ways externally:
1.) Family and Friends 2.) Opinion Leaders -Not a celebrity, but the person in your circle that carries themselves in a way that you want to be like them. 3.) Celebrity Endorsers -They help drive sales and help change the perception of a product 4.) Buzz Marketing -Unique way businesses can lure you into the revival -Relatively new product is placed in the hands of an opinion leader for the purpose that the opinion leader uses that product and spread word of mouth 5.) Word of Mouth -An unethical concern that people who are engaged in buzz marketing have to resist. The unethical concern would be bribing someone to give GOOD WORD OF MOUTH 6.) Commercial -All forms of advertising TV and other 7.) Public Information -Enough of our family friends, blogs, commercials... I'm going to do it myself. You start using consumer report, because it is from a very authentic and very credible source that has no connection. All it does is evaluate products. Scandal free.
Components of Product
1.) Packaging Three Functions: -Stores and protects product -Facilitates recycling -Promotes the product 2.) Warranty two types: -Implied (Bring it back well replace it) -Written (You give company money, if anything breaks, then we will fix it) 3.) Brand How your brand is going to be different than other brands in the industry Three objectives of branding: -Identification (Easily identifiable in industry i.e. nike check) -Repeat Purchases (Repeat the sales) -Introduction of new products
Of all the steps in personal selling - from preparation all the way to the presentation... Whenever you do the actual CALL TO ACTION all the way to the very last step, those are all the steps involved in personal selling. STEPS TO PERSONAL SELLING:
1.) Preparation 2.) Prospecting 3.) Preparing presentation 5.) Close the deal 6.) Follow-up
Level 3: Implementation Marketing Mix
1.) Product Category 1- Convenience (deodorant, detergent, etc) Category 2- Shopping (Laptop, Apartment furniture) Category 3- Specialty (Luxury watches, luxury items) Category 4- Unsought (Investments, Health insurance) 2.) Price -Penetration Pricing (Start price low to gain entry into market place) -Price Skimming (Charge at highest level, Bc there isn't a lot of competition) -Status Quo Pricing (Pricing it what all the competition is pricing) 3.) Place 4.) Promotion
Product Life Cycle
1.) Product Introduction -The most attention is placed on PROMOTION and PRICING -Promote it differently if brand new product also depending on the audience -Price will be different 2.) Product Growth -Something happens along the way and the product GROWS -As the product grows, the PROMOTIONS shift 3.) Product Maturity -When your product PEAKS you can finally cut back on PROMOTIONS! May not be TV all the time, maybe just reminders. 4.) Product Decline -Everything slows down a little -Sometimes a DECLINE - can lead to a product being obsolete and then disappears. 5.) Product Extension -Product in decline and then yet they find new life in the product Ex) Botox - "miracle drug for migraines." People use them for cosmetic purposes, but now Botox has extended into a medically prescribed drug.
Customer Service Yield
1.) Referrals -if you have good customer service, positive word of mouth happens. 2.) Premium Pricing -If I know you're good and reliable, then be there and I'll pay a little extra. 3.) Reduces amt. of money spent on advertising -if reputation is so good then customers are going to tell someone about it and that continues to enhance your credibility and customer satisfaction.
Developing Long-Term Relationships The types of relationships that need to be cultivated:
1.) Relationship With the Customer -However you can. -Built over time. -Must be LIKABLE 2.) Media Relations -Relationship with someone who works for outlet, that can transmit info down a certain medium. -If you cultivate relationship with them they can gain you visibility, ad make you look better -Treat them well -Companies that manage crisis the best = the company that manages media the best. (IE: Superbowl- if media relations are managed well, the city of houston can be made out to look like a wonderful, fun, vibrant place though media.) 3.) Community Relations -Social enterprise. -Helps create a corporate brand, name recognition. -Get involved, embed in the community. Examples: -Superbowl- For every company out there that has a huge corporate presence, they are doing something in Houston this week. Making a donation somewhere, etc. -John Hancock has huge presence in Boston, therefor is very involved in Boston marathon. Race starts and ends at john hancock. Gained lots of good will so he didn't loose his good name after boston bombing.
Dissatisfied Customers
1.) Verbal Customer -The on who will say it -Who your afraid of 2.) Silet Customer -Bad experience but doesn't make a scene until the leave -the worst
How many Nespresso pods were sold a year?
10 Billion pods in 1 year -shows the impact repacking has on a product
Tactics of Pricing
Makes you a better seller of product and a smarter consumer of the product. 1.) Discounts 2.) Rebate -Discount were you get refunded -elites won't do it 3.) Single Pricing -dollar store, dollar menu 4.) Bundling -Key Is to include ONE product people really need, that makes them want to get rest of bundle 5.) Dynamic Pricing -Changes, Flexible pricing -Airline tickets 6.) Psychological/odd-even Pricing -Numbers that END in an ODD number are perceived as cheaper and a better bargain -End in even= seen as high quality 7.) Precise Numbers -That PRECISE number has to have meaning, not just a number pulled out of the air. You want to show you've done the math and didn't just negotiate a number. 8.) "The loss leader" -Pricing tactic to draw you into the store where you're going to buy a NAME BRAND product (can't be non-brand) and they put it in the store strategically located. You feel good about buying that product, you buy something else and have change leftover -EX: Sam Walton, Walmart, Flip flop barrel
A Spoonful of Sugar Helps the Sales Go Up
Many treat it as a snack or dessert
Contests
McDonald's- Monopoly as a contest at McDonald's. They say it's so popular, they could do it year round, but they shouldn't because that's OVERSATURATION. It brings in SO many people. Albertson's- They do monopoly.
Likeability
The emotional impact you have on somebody; makes your personal brand strong and successful
What does Case Study: United Breaks Guitars demonstrate?
The power of one; a person's guitar is broken and not handled properly, person writes a song and puts on Youtube, customer service violated and brand damaged
Public External Types of information
The unbiased sources we use for information. Neutral. Government. JP Power and Associates. Consumer report. - Clutter: so much to choose from. There are a lot of options and decisions. - Unique Selling Proposition: Separate yourself from the clutter. Believable advertising appeal. pull your product out amongst the population. Ex. Volvo and its safety. Toothpaste industry --> Rembrandt came up with whitening. It resonated throughout the industry - Involvement: Time and energy spent in searching and evaluating a product (Routine, moderate, Extensive) - Evoked set: The final group of choices. Your odds are better if you make it down to this group. Choosing college, you embarked on an information search, ending in an evoked set of LSU, Georgia, and Texas. Front
Taco Bell Example
This is a great example of how you can be proactive in the face of a crisis and as a result, gain credibility. Taco Bell took a full page ad in several national newspapers to undo any damage from a lawsuit saying that what Taco Bell called "ground beef" actually had very little meat in it. Taco Bell then made out an ad with the title "Thanks for Suing Us." The ad then promoted the company's product by talking about how its taco mixture is 88% beef, with other ingredients, such as oats, spices, cocoa powder and sugar, included to provide flavor, texture, consistency and moisture. These methods of retaliatory advertising ended up making the company look good.
Societal
Tom focuses on which marketing management philosophy?
True
True or False: 4 factors of the marketing mix are product, price, place/distribution, and promotional. (the 4 P's)
True
True or False: Customer Satisfaction = Employee Satisfaction.
True
True or False: Penetration Pricing means lower the price because you are trying to get your product out there, gain penetration into the market place, grab market share.
Social
after 9/11, companies took advantage of the fact that people needed new types of luggage. this is an example of how _____ factors affected the market industry.
Credibility
are you believable? do people look to you?
Loss leader pricing
attract customer to store so they will buy additional products
Motel 6
o KKR is a huge company with lots of money to spend so they often invested in things that had a lot of potential o They buy Motel 6, which are sub-par hotel rooms, but they are usually on prime land because they are near the interstate. o KKR did research by forming focus groups and finding out what people liked/didn't like about Motel 6. The research said people thought it was a not very nice, cheap place to stay. They said it was a questionable place to stay because of all the sketchy people that stayed there (people would just get a room and stay there for 20 minutes). They also said the rooms there were dirty, the sheets were stained, and overall the hotels were mostly run-down. o KKR has to go in and change the atmosphere by giving it a better look and showing customer value. They wanted to create a place that was decently priced that people could get a good night's rest at. o They realized there are a lot of people that are traveling on the nearby interstates that just need a place to stay, and then get up early and leave. o They also found a lot of wealthy people that were frugal about not wanting to spend too much money on a hotel room.
Legal/Political Factors
o Law-> rules will constantly change/be updated o Conditions are changing so the company can't just sit back, they have to be able to adjust to new laws and be able to sell the product to customers. o Examples ▪ Cigarette industry- they weren't allowed to do TV ads because of the health hazards, so they had to adjust to their external environment and figure out a way around it. They resulted to magazine ads. The same thing almost happened to smart phones because of the potential brain damage than can occur from using one too much. ▪ Car seats- the law stated that every baby/young kid would have to have one. Fisher-Price jumped on this opportunity. They were already a popular/well-known children's brand so they decided to create car seats and sell them. ▪ Seatbelts- Back in the day the law came about that everyone had to have seatbelts in their cars. Ford/GM doesn't make nylon and buckles, but one of his former student's grandfathers (Grandpa Jack) did. He owned a nylon production company and he jumped in on the opportunity to make seatbelts for the big auto- industry. The competition eventually caught up with him, but he had a great running start.
Assurance
o Like a "safety net" o Example- Company X has a product and they are willing to pay $100,000 dollars to be seen in an NFL stadium for every game. Company Y has been in the arena for free for 15 years and doesn't pay a dime for their access. The NFL team chose Company Y over X even though they were losing money. They did this because Company Y had always been very responsive and dependable. The NFL team doesn't have to worry about it since they know the operation will work correctly with Company Y. It's like the "if it ain't broke, don't fix it" mentality. It's worth the money they're not getting from the other company because Company Y has done it for 15 years and they know how everything works and they know everything about the NFL organization. The NFL team can rest assured and be confident that everything in regards to Company Y, it's the conservative choice that they're more comfortable with. This is what the power of a relationship can do.
Failure to Respond to Service Failure
o No one said they were sorry when the company messed up in one form or another. o The company has to be able to say they messed up, show they're sorry, and respond properly to failure. o Once again, look at the Delta Airlines example
Inconvenience
o The business is not in the best location o A customer may not be able to get there in time due to traffic (College drive) o The store is too far away o The store may be too close to the competition o Have to wait too long for service. o No place to park ▪ Example- There used to be a restaurant called Calendar's that was on the little strip mall on highland road. It was doing really well until a coffee shop was put right next to it. The coffee place had a bunch of people go there and stay for hours hogging up all of the parking that both places shared. Eventually the store went out of business because there was no place to park anywhere so they would go somewhere else to eat.
Service Encounter Failure
o The person that works for the company was so (fill in the blank) that you won't go back to that company/store again. (They may have been rude, disrespectful, etc.) o Lack of knowledge can cause this, but temperament is usually the main factor. o Example- Karam went to a store to go get pants and the salesperson was an a-hole.
Core Service Failure
o The service you are paying for fails you in some way. o Something they're providing isn't what you expected it to be. o Basically, you're unhappy with the service o Examples- ▪ You change phone companies because the service is too slow. ▪ You switch pharmacists because every time you go there to get medicine they give you the wrong prescription. ▪ The food at a restaurant isn't good, so you don't go back again
Reliable
o The work you do it good, and the client can count on you to get it done in a quality way on a consistent basis. You're dependable.
Price
o There are various levels of price that can cause this o Too expensive and people may not want to pay for it. o Too cheap and people may think something may be wrong with the product. o It is usually because people think the price is too high. They feel exploited. ▪ Exp- during Katrina many companies spiked prices on clean up supplies because they could get away with it. o Price gouging o Deceptive pricing o The hardest thing to do in business is find the right price that makes most people content with it.
position of the product
part of level 2- Strategy Development; 3 aspects: attributes, benefits and communication of values
Employee Satisfaction
pay, promotion, workers, supervisors, customers, and the company you work for are all things you can measure _______ with.
Position/Status/Expertise
people tend to listen to people in higher, more respectable positions and people who are successful
attributes, benefits, communication of value
positioning consists of what 3 things?
Delta Airlines Example
o They sent 11,000 of their workers to "charm school" because they had recently been clobbered for having bad customer satisfaction. Therefore, they decided it was time to rain the employees on the art of customer satisfaction. o They knew when a flier is frustrated, it takes just one surly airline agent to give a black eye to an entire company. o In fact, among major airlines Delta finished with the highest rate of customer complaints filed with the Department of Transportation in the first nine months of last year, and was second-to-last in on-time arrivals and baggage handling through November. Delta also had the highest rate of canceled flights among major carriers in 2010 o Delta spent over 2 billion dollars on improvements in this overhaul effect. o Delta knew it was a safe, quality airline, but at the same time they realized 1 person (such as a flight attendant) can ruin the whole "Delta experience". All of their employees needed to be trained. o The daylong training sessions are aimed squarely at complaints raised in surveys Delta has been doing with customers. One recurring theme, the agents are told, is that customers write to the airline saying "no one cared or apologized" when something went wrong. Another focus of the training: o Lessons boil down to finding ways to assist customers rather than shunt them aside, trying harder to smile and being more appreciative of their travel dollars o The majority of all the revenue Delta got came from first class, so they wanted to expand the whole first class experience to the rest of the plane.
Sales Orientation
o This is ever evolving. o Our generation grew up with this idea. o It is a marketing orientation with a twist o Satisfying the customer's needs/wants by providing them with the products/services they desire, WHILE keeping our society and environment safe. o "Think Green"- it says we as a company care about the Earth ▪ Exp- a company uses plywood, but they re-plant a tree for every tree they chop down. ▪ Exp- Patagonia (TFM)- all recycled products are used to make their products ▪ Exp- Pepsi Refresh Campaign ➢ They didn't advertise during the Super Bowl one year and used the saved money to run this campaign. ➢ Pepsi plunged into the crowded field of cause-related marketing to kick off "Pepsi Refresh Project." Under the program, Pepsi awarded grant money for community projects proposed and selected by consumers, such as helping high-school students publish books to develop their writing skills. Pepsi says it earmarked $20 million of its ad dollars for the grants next year. ➢ Their image/brand went up, but sales actually went down because some people messed with, or "tricked" the system.
Marketing Orientation
o This is important in everything and is what this course focuses on. (see the 3 key marketing concepts that branch off of this on the next page) o Satisfying the customer's needs/wants by providing them with the products/services they desire. ➢ For instance, a Surgical Company giving out a customer service survey to their patients so they can see what areas they need to work on. They want the customers to be happy and choose them again over the competition.
Recovery
o What is too much too little for recovery though? Depends on the situation -do you just say you're sorry, or do you give them free stuff? Sorry may not be enough and you have to be careful with giving away free stuff because you have to make a living. - also what is too much or too little? 50 % off the purchase for the unsatisfied customer, or 20% off? o Example-Walkons. Karam went here with his family after Mass one Sunday right after the restaurant on Burbank opened up a few years back. The food was taking forever to get done after they ordered and everyone in the restaurant is getting impatient. The owners didn't anticipate the crowd and had to put up a "closed out of food" sign up on the front door. The owner comes up to the Karams and apologized for everything and offers to comp their meal. Karam says no, even though they didn't get much food and it wasn't very good. Despite this bad experience, Karam still goes back to the restaurant because of the offer the owner gave him to give them free food as well as the true genuineness of the owner in his apology.
Production Orientation
o When a company looks inward to see whatever they do best/what they're better at than anyone else. Then, they produce it o Problem- there can be an issue sometimes with underestimating the demand/need for the particular product
Sales Orientation
o When an organization puts together a skilled sales force whose job is to sell a product o It's about putting the product in the skilled hands of a sales team o The key is finding the right people to sell the product o This can greatly drive sales, but the team has to not be afraid to be told "no".
Economic Factors
o When there's an economic boom people can throw money around more. o When there's an economic recession, people aren't spending as much so there's a lot more pricing tactics/deals. ▪ Exp- cash for clunkers o During recessions, luxury items don't sell as much, the travel industry is hurt, and the housing market suffers as well. o You have to be smart/savvy as a business in reaction to either a recession or a boom.
Customer Satisfaction
o Word of mouth is deadly. If someone's experience was bad, they will tell all of their friends and everyone about it. This is especially easy now in the social media world.
Less selling effort
o You don't really have to sell the brand to repeat customers
63%
of customers will change purchasing decision based upon an encounter with just 1 person from the company o For instance, if there is a terrible employee at Wal-Mart that you have a bad experience with, you may not go back to the store anymore. You may not hate the company at all, but that one person that represents the company can leave a bad enough taste in your mouth that you don't go back.
77%
of people that have a bad customer experience will tell at least one other person. That person will then tell another person, and it will spread. Storytelling will also most likely occur causing the original story to get exaggerated and embellished.
Mystery Shopper
▪ Someone is hired by a company to pose as an everyday shopper/customer and then explain/rate everything they experienced. ▪ The point of this is to try to find a possible source of a prospect theory. ▪ Karam did this one time at a Sheraton Hotel in New Orleans. He filled out a 28 page survey on his stay. He was asked very specific questions (such as did they pronounce his name correctly) about each and every person from the hotel he came in contact with (bell boy, front desk clerk, greeter, room service guy, maid, etc). Karam ended up staying at the hotel for 3 days for free with all kinds of perks, but all he remembers is how the hotel handled his lost tie that he left in the room. He called the hotel back 4 times about his tie, but they replied back to his calls. That is the main thing he remembers and is a great example of the prospect theory at work.
Phase 1: Introduction of the product to the consumer
▪ This is the stage where you advertise/promote the product and already have a set price.
Geography
▪ Where do you live? ▪ Do you live in the North or the South? People dress differently in Louisiana than they do in Minnesota. ▪ People dress differently/ are into different things based off of where they are from. (North Baton Rouge vs. South Baton Rouge is even very different. ▪ What sells in one place may not sell in another
Religion
▪ You have to be careful with this, you don't want to offend. ▪ Exp- before football games right after the national anthem there used to be a prayer. You never hear this anymore because it was always ended with "in Jesus name.... Amen". The liberals, as usual, flipped out and had to try to make every person in the country happy. Someone in the crowd got offended and they became a vocal minority. ▪ Exp- in the Catholic haven of South Louisiana during Lent season Catholics have to eat Seafood and not meat on Fridays. All of the restaurants are smart and cater to this. A lot of them will have special "Lent meals" that only consist of seafood.
Age
▪ Young, pre-school, teen, college, young adult, elderly, etc. ▪ The true genius of age comes in at the senior citizen age ➢ Nursing homes were awful, now they're called community centers. Some young innovative people saw that the population was getting older and that the elderly were being deprived of proper living standards.
Developing Long-Term Relationships
● As critical to business as anything ● Developing/maintaining relationships in an ethical, honorable way. ● You develop relationships to hold onto business and maintain relationships so that in case you fail, the recovery will be more efficient. ● The ability to develop/maintain relationships is crucial to make money. o Think of the example of taking people to suites at sporting events (HOSPITALITY) ● Think about what is it in your personal brand that allows you to do this in a positive way.
Company
● Ask the following questions: o Who are we as a company? o What do we do? o How big are we? o Is distribution good? o Is the financial backbone strong? o How many shareholders do we have and what are they like? o Where does the company want to grow/go in the future? o Exp- Starbucks is good at this. They know who they are and how to make it work.
Customers
● Be aware/able to identify them/adapt to their changing ways in order to satisfy their changing needs. ● You have to be able to identify your target audience in order to be successful ● Descriptors ● Demographics
Customer Value
● FORMULA: Benefits - Costs = Customer Value
Customer Satisfaction
● Good customer service leads to good
Customer Value
● In other words, the benefits outweigh the costs o For example, a company may spend a lot of money to buy tickets to an LSU game for clients. The tickets may cost a lot, but the overall impression the company will have on the business could potentially help them maintain/gain business from the clients, which ultimately may outweigh the initial cost of the tickets o A good customer value for Karam is Taco Bell because he believes he gets quality food for a cheap price by going there. o Apartments create customer value by promising safety, a good location, and luxurious new apartments for a specified price.
Customer Satisfaction
● One way to achieve customer satisfaction is to admit wrongdoings and have a genuine apology. o One example of where a company failed to do this can be seen in the American Airline example ▪ A musician accused the airline company of breaking his guitar. ▪ They denied it even though he had some proof. ▪ The musician then went on and made a song bashing the airline and played it on Youtube. ▪ Over 4.1 million people watched it, causing the reputation of American Airlines to take a huge hit. ▪ This all could have easily been avoided if American Airlines would have just admitted their wrong doings and helped him out. o Exp- Super Bowl in Dallas. ▪ People have tickets to the game and show up, only to find out that due to safety concerns they can't go to the same because their seats aren't safe ▪ The NFL, admitting its mistake, told these people they will get first-class treatment and tickets to next year's Super Bowl. They also refunded each of the people the money they paid for the ticket.
Problem with Marketing
● The main problem is that customers switch and take money to the competition.
Customer Satisfaction
● When you walk away with expectations fulfilled/feeling satisfied/happy with the experience o Customer satisfaction surveys are a popular method of researching this
Vocal Delivery
➢ Be enthusiastic ➢ Tone is the most important part of the vocal delivery ➢ A shaky voice is ok....the biggest myth in vocal delivery is that if you sound nervous it will discredit you, and if you don't sound nervous, it doesn't mean you are good. ➢ The big killer is boredom. It will kill your delivery more than anything else. ➢ Also, a bitter tone that makes you come across like you don't care will kill your delivery as well.
