MKT Exam #3

intentions to buy

definitley buy prob buy not sure prob not buy def not buy

more unique aspects of nonprofit organization marketing strategies

Indirect payment through taxes is common to marketers of free services Separation between payers and users—Services are often used by those who are relatively poor and paid for by those who are better off financially. Making the service tangible to donors is key to loyalty (Social Swipe in airports) Below-cost pricing—Virtually all private and public colleges and universities price their services below full cost

core service and supplementary services

core - the most basic benefit the customer is buying (sleep) supplementary- services that support or enhance the core services

completely unstructured

(elaboration)... people usually fill this out if you are extremely happy/unhappy

internal daabases

(secondary data); are collections of consumer and market information obtained from within the company network information on customer characteristics sales transactions website visits customer satisfaction and service records records of sales, costs, and cash flows reports on production, shipments, and inventories reports on reseller reactions and competitor activities point-of-sale transaction data Harnessing such information can provide powerful customer insights and strong competitive advantage avtg: Save time and money Aid in formulating the problem statement Suggest research methods and data to solve problems Serves as a basis of comparison for other data disavtg: May not give adequate detailed information Quality and accuracy of data may pose a problem

Brands

A brand is a symbol or name which is recognized by consumers and considered as a factor that differentiates a seller from the competition. The word "brand" originates from the old farming practice of imprinting animals with a mark for you to identify them. For marketers, it means branding an image or idea permanently into the minds of consumers for them to identify you. Brand name: Part of a brand that can be spoken, including letters, words, and numbers (GM, 7-11) Brand mark: Elements of a brand that cannot be spoken (Mercedes logo) Three purposes of brands: product identification, repeat sales, and new product sales A brand may be rationally driven (based on utilitarian or functional benefits) or abstract-driven (intangible, emotional, or symbolic).

Specifying the sampling procedures

A sample is a segment of the population selected for marketing research to represent the population as a whole To learn about the decision making process for a family vehicle purchase, should the subject asked be the husband, the wife, other family members, dealership salespeople, or all of them?

Benefits of product lines

Advertising economics: Product lines provide economies of scale in advertising Package uniformity: Packages in the product line may have a common look but continue to maintain their individual identities Standardized components: Product lines allow firms to standardize components, thus reducing manufacturing and inventory costs Efficient sales and distribution: A product line enables a full range of choices to customers, which results in better distribution and retail coverage Equivalent quality: All products in a line are perceived as having similar quality

Importance of Scale

Airline food service is _____ to me. Extremely important Very important Somewhat important Not very important Not at all important

Behavioral research approach

Behavioral- Actual purchases are more reliable than statements offered to market researchers. Customers leave traces of their purchasing behavior in store scanning data, catalog purchases, and customer databases. Unobtrusive measures (listening to conversations of passengers in first class lounges as they talk about different carriers and their services or placing mystery passengers on flights to engage fellow passengers) Actual purchases reflect consumers' preferences and are more reliable than statements offered to researchers. Grocery shopping data shows that high income consumers don't necessarily buy expensive brands although they say they do.

product decisions of nonprofit organizations

Benefit complexity—nonprofits often market complex behaviors, long term, and intangible benefits (MADD, quit smoking, etc.) Benefit strength—usually weak or indirect (what is the benefit of following the speed limit or donating blood?) Involvement—often elicit low involvement (Only you can prevent forest fires)

Online Focus Groups Advantages

Better participation rates: Online focus groups are conducted over the course of days/weeks. Therefore, participants are less likely to pull out Cost-effectiveness: Face-to-face groups incur costs for facility rental, airfare, hotel, food, etc. Broad geographic scope: Time is flexible online. This provides a worldwide respondent pool Accessibility: Online focus groups provide access to participants who might otherwise be difficult to recruit

brand equity

Brand equity is the added value endowed to products that is reflected in the way consumers feel and act with respect to the brand. It also helps in assessing the prices, market share, and profitability the brand commands. ex. McDonald's brand equity with children is a huge competitive advantage. A research study found that 85% of preschoolers felt that identical McDonalds food items—even milk and carrots-taste better when wrapped in McDonalds packaging than in unmarked wrappers.

what is branding

Brands are ideas rooted in reality but reflecting the perceptions of consumers. Branding is endowing products with the power of that idea and relentlessly communicating it to consumers. Marketers need to teach consumers "who" the product is—by giving it a name and other brand elements to identify it—as well as "what" the product does and why consumers should care. Branding is the art of predisposing, not imposing

Captive brands

Captive brands carry no evidence of the store's affiliation, are manufactured by a third party, and are sold exclusively at the chains (Simple Truth) No evidence of store's affiliation Manufactured by a third party Sold exclusively at the chains Retailer can ask a price similar to that of manufacturers' brands

product modification

Changing one or more characteristics of a product Includes modification in: Quality: Change in a product's dependability or durability (Apple storage) Function: Change in a product's versatility, effectiveness, convenience, or safety Style: An aesthetic product change (replenish reminders) Planned obsolescence: Practice of modifying products so those that have already been sold become obsolete before they actually need replacement (iphones). Wasteful or good business?

product line contraction

Contracting product lines is a strategic way to deal with overextension Benefits: Resources are concentrated on the most important products. Managers do not waste resources trying to improve the sales of poorly performing products (Toyota dropped Scion which was originally targeted at younger buyers) New-product items have a chance of being successful owing to availability of financial and human resources

Types of consumer products

Convenience: Inexpensive items that require little shopping effort Shopping: Require comparison shopping; more expensive and found in fewer stores (washers, dryers, furniture, TVs, housing, and universities) Specialty: Particular items for which consumers search extensively and are reluctant to accept substitutes (fine watches, expensive automobiles, and gourmet restaurants) Unsought: Products unknown to the potential buyer or known products that the buyer does not actively seek (insurance, burial plots)

Customization/Standardization

Customized services—more flexible, respond to individual customers' needs, and command a higher price Standardized services—more efficient and cost less Emerging strategy Mass customization: Strategy that uses technology to deliver customized services on a mass basis

Roles of Marketing Research

Descriptive (e.g. exploratory) Tells you what happened Gathering and presenting factual statements What are historic sales trends in the industry? What are consumers' attitudes toward a product? Diagnostic Explains why it happened What was the impact on sales after a change in the package design? Predictive/Prescriptive (e.g. causal) Tells you what will happen and/or what to do next How much advertising is needed to generate sales growth?" Uses descriptive and diagnostic research to predict the results of a planned marketing decision?

Place (Distribution) Strategy

Distribution strategies for service organizations focus on issues such as: Convenience - Select a service provider (Mac & Mias is a childrens clothing website that allows parents to customize their purchase with tailored selections based on what's sent back) Number of outlets - Intensity should meet market's needs (too many-not exclusive; too little- exclusive but inconvenient) Direct to consumer (legal, medical accounting, airlines using online services) vs. indirect (travel agencies) Location - relation between market and distribution strategy Scheduling - time-dependent service providers

ethnographic research

Ethnographic research comes from the field of anthropology and is becoming popular in commercial marketing research Studies human behavior in its natural context Involves observation of behavior and physical setting Ethnographers directly observe the population they are studying to gain richer insights into the culture and behavior of people To boost sales, ConAgra sent employees that spent nine months observing families in their homes to record how they feel about their Orville Redenbacher brand. They found that most families use popcorn as a "facilitator of interaction". The research led to a promotional campaign that spanned TV advertising, social media, and packaging - "Spending Time Together: That's the Power of Orville Redenbacher"

Repositioning

Factors that motivate a firm to reposition an established brand: Changing demographics Declining sales Changes in the social environment SeaWorld had to reposition itself after the release of Blackfish exposed the mistreatment of orcas. As a result, Sea World now presents orcas in a natural setting rather than in theatrical shows.

branding strategies

Family brands vs. individual brands Family brands provide an umbrella under which multiple products can be marketed (Jack Daniels name is used on whiskey, coffee, BBQ sauce, pork, and clothing) Individual brands are used when different segments are targeted (General Motors- Chevrolet, GMC, Saturn, Pontiac, Buick, Hummer, Cadillac, Saab; P&G- Bold, Cheer, Dash, Era, Gain, and Tide) Differentiation? National vs. store brands Store brands (private label brands) are exclusive to a given retailer (Sam's Cola vs. Coca Cola; JC Penney's Stafford/St. John's Bay vs. Dockers/ Haggar; Wal Mart--Dr. Thunder, Mountain Lightning) Generic branding Identifies a product by class or type and cannot be trademarked. US govt has declared the following brand names as generic: aspirin, cellophane, linoleum, thermos, kerosene, monopoly, cola.

Levels in relationship marketing

Financial—Using pricing incentives such as frequent flyer programs. This level of relationship marketing is least effective as it can be easily imitated Social—Building social bonds by staying in touch with customers, learning their needs, and designing services accordingly (sending birthday cards to customers and their kids) Customization—Developing one-to-one solutions to fit customers' needs (Mac and Mias) Structural—Offering value-added services that are not available from other firms (signature spa treatments)

The gap model of service quality

Gap 1: The gap between customer expectations and management's perceptions of their expectations (to close this gap, Chase Bank invested heavily in their app after realizing their customers wanted full feature mobile banking) Gap 2: The gap between management perceptions of customer expectations and the translation of those expectations into service quality specifications (KFC used to rate managers on "chicken efficiency" or how much chicken was thrown away at closing; so customers who came later were waiting much longer to be served) Gap 3: The gap between service quality specifications and the service that is actually provided (leveraging technology may be necessary to bridge this gap- Domino's) Gap 4: The gap between actual service delivery and what the customer was told the service provides (deceptive advertising) Gap 5: The gap between the expected service and the perceived service. This gap can be positive or negative

characteristics of services

Heterogeneity Variability of the inputs and outputs of services, which causes services to be less standardized than goods. Even the same service performed by the same person will vary (artist performances, surgeries, peak times, sports). Variability exists in peak time service (stressed employees are less involved) vs. downtime service (more attention to individual customers) Perishability Inability of services to be stored, warehoused, or inventoried. An empty hotel room or plane seat generates no revenue for that day. In certain cases, services should be durable such as healthcare or education Capacity management attempts to synchronize supply and demand by shifting some customers to less popular times of the day to ensure adequate service (airline vouchers, restaurants). A controversial method of capacity management in the airline industry involves overbooking (taking more reservations than there are seats available). Often flight attendants will ask for volunteers who would be willing to take a later flight, and reward them with vouchers for free hotel stays and discounts on future travel with the airline.

primary data

Information collected for the first time and used for solving the particular problem under investigation Advantages : Answers specific research questions Data are current, and source of data is known Secrecy can be maintained The cost of primary data may range from a few thousand dollars for a limited survey to several million for a nationwide study (piggyback)

intangibility of internet-based services

Insurance Banking and investment services Music (piracy) Travel services Dating sites (segmentation strategies) Career-related services Social media

characteristics of services

Intangibility Inability of services to be touched, seen, tasted, heard, or felt in the same manner that goods can be sensed. Tangible cues are often used to communicate quality (You're in Good Hands) Inseparability: For some services, it is impossible to separate the production from consumption (consumer and stylist must both be present in the hair dresser's salon). In others, production and consumption are inherently separate (dry cleaning, landscaping) Disintermediation: Eliminating personal interactions between customers and salespeople. (Positive or negative?)

IoT Trend

Internet of things - having a connected home; marketing research helps managers understand trends and take advantage By 2020, 69% of consumers are expected to have at least one IoT device, such as a thermostat or security system Men are more likely than women to purchase an in-home IoT device by 2019. Younger consumers are most likely to adopt connected technologies later on, while older consumers are slightly more likely to already own certain products

Components of a marketing research project

Marketing research problem Determines what information is needed and how it can be obtained efficiently and effectively Marketing research objective Defines the specific information needed to solve a marketing research problem (have a strategic vision) Management decision problem Broad-based problem that uses marketing research in order for managers to take proper actions **vision without action is a dream, action without vision is a nightmare**

word association

Method of assessing somebody's mental state or personality by asking the person to respond with the first word that comes to mind when a given word is heard

Universal Product Codes (UPCs)

Series of thick and thin vertical lines (bar codes) readable by computerized optical scanners Represent numbers used to track products Help retailers prepare records of customer purchases, control inventories, and track sales

nonprofit organization marketing

Nonprofit organization: Exists to achieve some goal other than the usual business goals of profit, market share, or return on investment Governments, private museums, theaters, schools, and churches Nonprofit organizations account for more than 20 percent of the economic activity in the United States

Customer Relationship Mangement

Not all customers are equally important to a business. Consequently, the company must use data mining to distinguish between profitable and unprofitable customers Once the customer data are analyzed, they are leveraged. Data are transformed into information and disseminated throughout the organization When repeat customers call 1-800 Flowers, the system immediately pulls up data on previous transactions helping reps make the experience easier and more relevant (Mother's Day)

unique aspects of nonprofit organization marketing strategies

Objectives: To generate enough funds to cover expenses, Nonprofits do not seek to make a profit for redistribution to owners or shareholders, To provide equitable, effective, and efficient services Selection of target markets: Tend to be apathetic or strongly opposed to receiving their services (vaccinations, psychological counseling); Pressure to adopt undifferentiated segmentation strategies to reach the largest number of people; Complementary positioning—nonprofits must usually complement rather than compete with efforts of others (a university library complements the public library)

remember

Once the researchers decide how to collect primary data, the next step is to select the sampling procedures being used. Since it is not possible to interview all users of a new product, a firm must select a sample or a subset of the larger population. The population, or universe, must first be defined. Then it is determined if the sample must be representative of the population. If the answer is yes, a probability sample is needed. Otherwise, a nonprobability sample is considered.

Global issues in branding

One brand name everywhere: Company markets mainly one product and the brand name does not have negative connotations (Coca Cola) Adaptations and modifications: A one-brand name strategy is not possible when the name cannot be pronounced in the local language (alphabetic differences) is owned by someone else has a negative or vulgar connotation (IKEA in Thailand) Different brand names in different markets: Local brand names are often used when translation or pronunciation problems occur (Axe line of male grooming products is called Lynx in England, Australia, Ireland, and New Zealand)

forms of people-watching-people research

One-way mirror allows the researchers to see the participants, but the participants cannot see the researchers Mystery shoppers are researchers posing as customers who gather observational data about a store Behavioral targeting (BT) combines a consumer's online activity with psychographic and demographic profiles compiled in databases

designing effective packaging

Packaging:. Packaging facilitates storage, use, and convenience of products as well as recycling Contains and protects products (beer, milk, medicine, shelf life) Facilitates storage, use, and convenience- different sized packages appeal to heavy, moderate, and light users (Campbells soup single use cans aimed at elderly and singles; easy to pour tops, reclosable, etc.) Environmental impact of packaging (Reduce, Reuse, Recycle; Pepsi, dissolvable packaging) Promotes products- aesthetics influence perceptions (Apple, Crown Royal) Golden Ratio— phi Φ is recognized for its ability to give humans a sense of aesthetic appeal in balance and harmony (used in the design of architectural masterpieces such as AlHambra and the Parthenon) 1.618 around everyside **beer is packaged specifically to protect it from light etc.

labeling

Persuasive labeling Focuses on a promotional theme or logo Consumer information is secondary Informational labeling Helps consumers make proper product selections (FDA moves to make nutrition labels and calorie counts bold) Lowers a consumer's cognitive dissonance after the purchase (FDA also sets standards for the use of: low fat, light, reduced cholesterol, low sodium, low calorie, low carb, and fresh on labels) Greenwashing: Attempt to give the impression of environmental friendliness (consumers tend to view green packaging as being healthier)

co-branding

Placing two or more brand names on a product or its package Types of co-branding: Ingredient branding: Identifies the brand of a part that makes up the product (Frito Lays' Munchies- Doritos, Sun Chips, Cheetos, Pretzels) Cooperative branding: Occurs when two brands receiving equal treatment borrow from each other's brand equity (Godiva-Slimfast) Complementary branding: Suggests usage by advertising and marketing products that are used together (Puffs/Vicks, Intel/IBM) **co-branding is a useful strategy when a combination of brand names enhances the prestige or perceived value of a product or when it benefits brand owners & users.

pricing decisions for non profits

Pricing objective is to defray costs rather than to achieve a profit Nonfinancial prices—Consumers must absorb nonmonetary costs such as time, embarrassment, and effort (public assistance programs)

probability vs non probability sample

Probability Sample is a sample in which every element in the population has a known statistical likelihood of being selected Nonprobability Sample is any sample in which little or no attempt is made to get a representative cross section of the population

Marketing Research

Process of planning, collecting, and analyzing data relevant to a marketing decision Links the consumer, customer, and public to the marketer through information Provides data on the effectiveness of a marketing mix and insights for necessary changes

Branding terms

Product line- all products sold under a particular product category Product mix is the set of all product lines a particular seller makes (P&G) Product extension- when a firm uses an established brand to introduce a new product, can also be called a sub-brand (Hersheys Kisses; Toyota Corolla- best selling car of all time) In a line extension, the parent brand releases a new product within an existing category such as with new flavors, ingredients, and sizes (Iphone/ipad releases) In a category extension, marketers use the parent brand to enter a different product category altogether (Swiss Army watches; Dunkin Donuts coffee).

overextension

Product lines can be overextended when: Products do not contribute to profits Manufacturing or marketing resources are disproportionately allocated Items in the line become obsolete

promotion decisions for non profits

Professional volunteers donate pro bono services in exchange for potential long-term benefits Public service advertising (PSA)—promotes a federal, state, or local government for public good (Bone vs. Steel). The time and space for PSA announcements are usually paid for by the medium

Exploratory Techniques

Projective techniques - provide an incomplete stimulus and ask respondents to complete it, or give them an ambiguous stimulus and ask them to make sense of it. Generally used to get at people's underlying feelings, especially when people are unwilling to express true reactions (Brawny) Word associations involve asking subjects what words come to mind when they hear the brand's name (top of the mind awareness) Brand personification- ask subjects what kind of person/animal/object they think of when the brand is mentioned Laddering- asking a series of increasingly more specific "why" questions that reveal deeper motivations and abstract goals Why did you buy a Nokia phone? "They look well built"—attribute Why is it important the phone is well built? "Means it's more reliable"—functional Why is reliability important? "Because my friends/family need to reach me"—emotional Why must you be available to them at all times? "I can help them if they're in trouble" BRAND ESSENCE

promotion strategy part 2

Promotion should: (1) provide needed information and advice (2) persuade customers of the merits of the brand or service (3) encourage them to buy This can be delivered through advertising, salespeople, websites, self service equipment, and other customers. Some services are "mentally intangible", or difficult to visualize in advance since there is no reference point (surgeries, legal work). In such situations, it is important to educate customers on the value of the service and your credentials to establish trust (reviews & testimonials)

evaluating service quality

Reliability: Ability to perform a service dependably, accurately, and consistently. Responsiveness: Ability to provide prompt service (express checkout options, pushing bill under the door at hotels or displaying on TV, portable wireless terminals for car rental returns, taking credit card info in advance and documenting charges through email, serving customers fast when in a hurry-drive thrus) Assurance: Knowledge and courtesy of employees and their ability to convey trust. Empathy: Caring, individualized attention to customers (healthcare providers). Tangibles Physical evidence of the service (appearance of facilities, employees)

Preparing and Presenting + follow up

Researchers are required to present written and oral reports. Contents of a report: Concise statement of the research objectives Brief explanation of research design Summary of major findings Conclusion with recommendations Follow up: Researcher should determine why management did or did not carry out the recommendations

categories of pricing objectives

Revenue-oriented pricing Focuses on maximizing the surplus of revenues over expenditures (fixed/variable costs plus margin) Operations-oriented pricing Seeks to match supply and demand by varying price. Raising prices during peak times and reducing during low times (hotels) Patronage-oriented pricing Tries to maximize the number of customers by varying price (introductory price discounts for newer services to encourage trial, senior citizen or student discounts) Price-insensitive customers are willing to pay premium for higher levels of service whereas price-sensitive customers are more accepting of relatively low performance (Wal Mart)

intangibility of college education

Search Qualities- dormitory room, student union, sports arena, computing lab, and classrooms, as well as tuition cost, published graduation rate, percentage of faculty holding terminal degrees, etc. Experience qualities - perceived quality of student life, the degree of difficulty associated with completing coursework, parking availability, convenience of attending classes, etc. Credence qualities pertain to whether or not the student learned what he or she needs to know to enjoy a successful career.

Promotion strategy

Stressing tangible cues— To make their intangible services more tangible (hotels turn down the bedcovers and put mints on the pillows, Disney virtual, Audi) Using personal information sources—someone consumers are familiar with (such as a celebrity) or someone they admire or can relate to personally (testimonials) Creating a strong organizational image—managing the evidence, including the physical environment of the service facility, the appearance of the service employees, and the tangible items associated with a service (Starbucks) Engaging in post purchase communication—follow-up activities after a customer transaction.

place (distribution) decisions of nonprofit organizations

Success is determined by a nonprofit organization's ability to distribute its service offerings when and where customers want them (satellite campuses or online classes)

traditional forms of survey research

Survey: A researcher either interacts with people or posts a questionnaire online to obtain facts, opinions, and attitudes. In-home personal interviews: Although in-home personal interviews often provide high-quality information, they tend to be very expensive because of the interviewers' travel time and mileage costs. mail intercept interviews: The mall intercept interview is conducted in the common area of a shopping mall or in a market research office within the mall. Computer-assisted personal interviewing: The researcher conducts in-person interviews, reads questions to the respondent off a computer screen, and directly keys the respondent's answers into the computer Computer-assisted self-interviewing: A mall interviewer intercepts and directs willing respondents to nearby computers. Telephone Interviews: Telephone interviews cost less than personal interviews, but cost is rapidly increasing due to low response rates Mail Surveys: Mail surveys have several benefits: relatively low cost, elimination of interviewers and field supervisors, centralized control, and actual or promised anonymity for respondents. Executive Interviews: An executive interview usually involves interviewing businesspeople at their offices concerning industrial products or services, a process that is very expensive. Focus Groups: A focus group is a type of personal interviewing. Often recruited by random telephone screening, seven to ten people with certain desired characteristics form a focus group.

trademarks vs. service mark

Trademark: exclusive rights to use a brand or part of a brand (MGM lion's roar, front grill shape of BMW and Jeep, Coca Cola bottle shape, black and copper combination of Duracell battery, Levi's red tag on left rear pocket, abbreviations like Bud and Coke) Service mark: Trademark for a service (Weight Watchers) Trademark protection typically lasts 10 years. To renew, companies must prove the mark is still being used

what is internal marketing

Treating employees as customers and developing systems and benefits that satisfy their needs Services are performances, so the quality of a firm's employees (salespeople) is paramount to perceived quality (flextime, on-site day care, and concierge services) Although many transactions are discrete in nature, it may be possible for employees to transform these one time transactions into membership relationships (theater subscription, monthly hairstylist fee, commuter pass, etc.)

product warranties

Warranty: confirms the quality or performance of a good or service Express warranty: Written guarantee (100% cotton, Gluten Free, satisfaction guaranteed) Implied warranty: Unwritten guarantee that the good or service is fit for the purpose for which it was sold (all sales have implied warranty under UCC) Full warranty includes repair of any defects and replacement of the merchandise or a full refund Limited warranty: Any warranty that does not live up to this tough prescription must be "conspicuously" promoted

What two services does a business usually have?

a core service and a supplementary service

semantic differential scale

a five-point scale in which the opposite ends have one- or two-word adjectives that have opposite meanings (large; small experienced; inexperienced; modern; old fashioned)

sentence completion

a projective technique in which respondents are presented with a number of incomplete sentences and asked to complete them

group interviewing

consists of inviting six to ten people to meet with a trained moderator to talk about a product, service, or organization. Participants normally are paid a small sum for attending. A moderator encourages free and easy discussion, hoping that group interactions will bring out actual feelings and thoughts. At the same time, the moderator "focuses" the discussion—hence the name focus group interviewing. challenges of this: Expensive (online focus groups is cheaper option) Difficult to generalize from small group Consumers not always open and honest (over participants, quiet participants)

random error

differences in data measurement that are due to imprecision of the measurement device

services

economic activities offered by one party to another that are usually time-based performances In exchange for their money, time, and effort, service customers gain access to goods, labor, facilities, environments, professional skills, networks, and systems; normally do not take ownership of any of the physical elements involved.

sampling error

error caused by observing a sample instead of the whole population (usually called margin of error)

Customer insights

future needs and buying motives are hard to predict because customers usually can't tell you what and why

which gap refers to customer expectations and management's perceptions of their expectations

gap 1

which gap refers to the gap between service quality specifications and the service that is actually provided

gap 3

which gap is between actual service delivery and what the customer was told the service provides

gap 4

which gap is the gap between the expected service and the perceived service (positive or negative)

gap 5

which gap refers to the gap between management perceptions of customer expectations and the translation of those expectations into service quality specifications

gap two

competitive marketing intelligence

improves strategic decision making by: observing consumers firsthand quizzing the company's own employees benchmarking competitors' products researching competitors online Monitoring social media buzz (Burger King) gaining early warnings of competitor moves and strategies, new-product launches, new or changing markets, and emerging strengths and weaknesses

Customer Insights

information based understandings of customers that become the basis for creating customer value, engagement, and relationships. ex. pintest -> more than 500,000 brands use pintrest to engage and inspire their customer communities ex.

what is the most intangible form of service

information processing

intangibility vs. tangibles

intangibility - the inability of services to be touched, seen, tasted, heard, or felt in the same manner that goods can be sensed tangibles - the physical evidence of a service, including the physical facilities, tools, and equipment used to provide the service

mental stimulus processing

intangible actions/services directed at people's minds: education/advertising Mental stimulus processing refers to services directed at people's minds such as education, news, and religious services. Ethical standards required since customers may be manipulated Physical presence of recipients not required Core content of services is information-based and should be 'inventoried'

fast food restaurants

is in the middle of high physical elements and high intangible elements. Where salt is the highest physical and internet banking is the highest intangible.

advtg of manufactures' brand and private brands

manu: heavy advertising leads to strong consumer loyalties, well-knwon manufactuerers' brands such as Kodak and Fisher price can attract new customers and enhance the dealer's (wholesaler's or retailer's) prestige, many manufactuerers offer rapid delivery enabling the dealer tocarry less inventory, and if a dealer happens to sell a manufactuerer's brand of poor quality - the customer may simply switch brands and remain loyal to the dealer key advantages of carrying private brands: a wholesaler or retailer can usually earn higher profits on its own brand because the private brand is exclusive - there is less pressure to mark down the price to meet competition; a manufacturer can decide to drop a brand or a reseller at any time or even become a direct competitor to its dealers; a private brand ties the customers to the wholesaler or retailer so a person who wants a DieHard batter must go to Sears; and lastly, wholesalers and retailers have no control over the intensity of distribution of manufactuerers' brands, like Walmart store managers don't have to worry about competing with other sellers of Sam's american choice products. They know that these brands are sold ONLY in walmart/ sam's club stores

Kleenex, Clorox, Aspirin, Google, Scotch tape..

marketing managers should be careful to protect their trademark from being generic, but being generic does imply a leadership position

Mobile research

mobile surveys account for 30% of interview responses; as screen size decreases, so do survey completion rates.

Intangible vs. tangible assets

non-physical assets (accounting services, legal services); brand recognition tang - physical assets like land, vehicles, and equipment/cash

framing error

occurs when the wrong sub-population is used to selected a sample (frame of reference)

measurement error

occurs when there is a difference btwn the information desired and the information collected (POOR QUESTION WORDING)

competitive marketing intelligence can be derived from

people inside the company suppliers, resellers, and core customers monitoring competitors' websites researching specific competitor events or industry trends tracking consumer conversations about competing brands and the company's own brands thousands of online databases **The intelligence game goes both ways. Facing determined competitive marketing intelligence efforts by competitors, most companies are now taking steps to protect their own information (patent filings)**

rating scale

rating on perception of service

big data

refers to the huge and complex data sets generated by today's sophisticated information generation, collection, storage, and analysis technologies. Marketers don't need more information; they need to make better use of the information they already have. It comes from consumers **90% of all the data in the world has been created in the past 2 years**

three categories of pricing objectives

revenue-oriented (majority of businesses use these), operations-oriented, patronage-oriented pricing... however businesses usually use a mix of all three of these

How search, experience, and credence impact ease of evaluation

search attributes are - easy to evaluated things like clothing, chair, motor, vehicle, foods. high in experience attriubutes are in the middle with things like restaurant, meals, haircut. high in credence attributes are difficult to evaluate with things like education, legal services, surgery, repairs.

information processing

services directed at intangible assets: accounting/banking Information processing refers to services directed at intangible assets (accounting services or financial advice) Most intangible form of service. Thin line between information processing and mental stimulus processing

manufacturers' brands vs. private brands

sometimes national brand is used as a synonym for manufacturer's brand private lab (Store brand) is a brand name owned by a wholesaler or a retailer (kroger, great value, trader joes) because overhead is low and there are no marketing costs, private label brands have 10% higher margins on average

likert scale

strongly disagree, disagree, neutral, agree, strongly agree

people-processing

tangible services directed at people's bodies: barbers/healthcare... ex. being fed, fed, lodged, restored to health, or made more beautiful. For this to happen, consumers must: physically enter the service factory (imagine a factory where people are enhanced) cooperate actively with the service operation Managers should think about process and output from the customer's perspective to identify benefits and non-financial costs (time, mental and physical effort) Innovations can improve the efficiency of services and enhance the experience for both employees and customers

possession processing

tangible services directed at physical possessions: refueling/recycling Possession processing occurs when consumers ask a service organization to provide tangible treatment for a problem (house infested by termites, overgrown hedges, broken elevator, package delivery) Customers are less physically involved Production and consumption are separable

discuss the profound impact of the internet on marketing research

the internet has simplified the secondary data search process. Internet survey research is surging in popularity. Internet surveys can be created rapidly, are reported in real time, are inexpensive, and easily personalized. Often researchers use the internet to contact respondents who are difficult to reach by other means. The internet can also be used to conduct focus groups to distribute research proposals and reports, and to facilitate collaboration between the client and the research supplier

describe the steps involved in conducting a marketing research project

the marketing research process involves several basic steps. First, the researcher and the decision maker must agree on a problem statement or set of research objectives. Social media and big data may be helpful in this pursuit. The researcher then creates an overall research design to specify how primary data will be gathered and analyzed. Before collecting data, the research decides whether the group to be interviewed will be a probability or non probability sample. Field service firms are often hired to carry out data collection. Once data have been collected, the researcher analyzes them using statistical analysis. The researcher then prepares and presents oral and written reports, with conclusions and recommendations, to management. As a final step, the researcher determines whether the recommendations were implemented and what could have been done to make the project more successful

why do marketers use marketing research

to improve the decision-making process, trace problems, serve customers, gauge the value of goods & services, understand the marketplace, and measure customer service efforts

DICHOTOMOUS questions

yes/no questions