MAR3023 Exam 1
Marketing Era
"great awakening" w/focus on customer orientation where customers were central focus of org - "delight"/satisfaction make what we sell
what does Peter Drucker claim the aim of marketing is?
"know/understand customers so well product/service fits them and sells itself"
macro-marketing strategies: segmenting markets ex
- Diet Coke: for women because of word "diet" - Coke Zero: aimed at men, "manly" color, doesn't contain "diet," official drink of college gameday, had a NASCAR - Coke Zero Sugar: for Genz Z, "diet" fell out of fashion
holistic view of marketing
- relationship, integrated, internal, and performance marketing - engage the customer wherever they happen to be - based on the development, design, and implementation of marketing programs, processes, and activities that recognize their breadth - incorporates social responsibility marketing-- an understanding of broader concerns in the ethical, environmental, legal, and social context of marketing activities
Jane is at a store and is trying to decide between purchasing Wish-Bone and Newman's Own ranch salad dressing. This is an example of what type of competition?
Brand
Match the description to its respective competitor definition: McDonald cheeseburger vs Burger King cheeseburger, Great Value sandwich cookies vs Nabisco Oreo cookies, Hostess Twinkie vs bottled water, Red Bull vs Pepsi Cola.
Brand, generic, total budget, product
Coca-Cola's original flavor has a high market share but does not experience the amount of market growth as Coke Zero, which has come to dominate its' market segment. Original Coke is a ________, while Coke Zero is a ________
Cash Cow/Star
Samsung is among one of the top market leaders for flat screen LED TVs. However, flat screen LED TVs have been in the market for some time now, and the market's growth is becoming quite steady/stable. This would make Samsung flat screen LED TVs:
Cash Cows
who is a gamechanger in dist?
Coca Cola: there are many opportunities around us to buy since they blanketed the US w/their dist - hard to find country where Coke isn't sold-- about brand and dist not taste
Walmart has negotiated with its suppliers in a way that it is able to provide products to consumers at prices well below that of its competitors while staying profitable. This is something that Walmart is able to do better than its competitors. This cost advantage that Walmart has in relation to its competitors is an example of a:
Core Competency
Janet started growing tomatoes in her garden. She couldn't eat all of the tomatoes that she grew and decided to set up a booth at the farmer's market. There was no fee to have a table there, and anyone with a product to sell could have a table there. This is a _________ structure.
Pure Competitive
The first thing that the newly formed software company Bitwise Industries did when implementing their marketing plan was to analyze what industry functions their business excelled at and which areas needed improvement. They used this information to partner with companies that excelled where their expertise was lacking. This process is known as ______ analysis
SWOT
Which of the following marketing eras was focused primarily on short-term profit maximization as marketers had excess inventory they needed to rid their storage facilities of?
Sales Era
BIC offers a variety of razors targeted at particular consumers. They offer razors for men, women, consumers who have sensitive skin, consumers who prefer electric razors, and consumers who need disposable razors. This is an example of which marketing concept?
Segmentation
AB InBev is a conglomerate that owns Budweiser, Coors Light, and Heineken. These brands represent divisions within the larger company known as ________
Strategic Business Units
Many people have their personal preference for bottled water, swearing Fiji tastes better than Walgreens or Publix water. Dr. Brady gave a blind taste test to his students asking them to choose their favorite bottled water, and many of them chose Walgreens as the best tasting flavor. Why do people believe Fiji water is better?
The Power of branding
Eric has saved $1,232 by forgoing his daily Starbucks coffee for the year. He feels like he should take this savings and spend it on his family. His wife wants to take a trip to Las Vegas, while his son feels that money would be better spent upon upgrading their home theater. These two options are an example of_______
Total Budget Competitors
Creating relationships: How do you build a relationship with a customer? Disney ex
appeal to audience - Disney appeals to kids and families by providing opportunity/activity to do everything they could want to do on their vacation-- solve their needs - appeals to other age groups: uni internships, weddings, senior marketing strategy
illusion of choice
appears to be lots of brands but actually just 8-10 massive conglomerates that own vast majority - Nestle, Coke, Pepsi, Unilever, M&M Mars, Kellogg's, General Mills, Kraft Heinz, Johnson-Johnson, P&G< Mondelez
value equation
benefit/cost - cost= price, effort, time, risk, sacrifice
Pepsi
by Caleb Bradham when sold in his New Bern, NC drug store and originally "Brad's Drink" - Coke offered opportunity to buy them 3 diff times but declined - Mountain Dew, 7UP, SoBe, Lipton, Aquafina, Ocean Spray, Frito Lay, Quaker, Gatorade - named after digestive enzyme "pepsin"
Based on the work by the Boston Consulting Group (BCG), products that have high market share of a low growth market are called:
cash cows
customer centric marketing
collab relationships based on customers' individual needs/concerns
time/reality
companies follow lead of successful company and come out w/products that are as good, where over time and based on reality, there'll be mimicry - ex: Uber vs Lyft, Coke vs Pepsi
Berkshire Hathaway
conglomerate holding company w/diverse portfolio of businesses-- if one area is on downward swing, other aspects of portfolio should be going up - best known for insurance - started as textile company in Massachusetts before Buffet took over - GEICO, Dairy Queen, Benjamin Moore paint, Duracell, Fruit of the Loom, Jordan's, See's Candles, Brooks - stakes in Pilot, B of A, Amex, General Motors, Chevron, Verizon, Coke, Apple - based in Omaha
power of branding
consumer reports rate all products as objectively same as, or even better than, branded products - Ziploc vs Great Value Slider bags, Quaker Oats vs Great Value oatmeal, Kellogg's Frosted Flakes vs Hy-Top's Frosted Flakes, Peter Pan vs Great Value creamy peanut butter
power of branding and advertising
consumers don't buy unfamiliar products, even if unfamiliar is objectively better
product development
core marketing function is to identify unmet customer needs and develop products that fill them - no firms w/o marketing and w/o revenue nothing happens - ex: Ford's Model T, Tesla
stakeholders
customers, suppliers, employees, shareholders, and local communities
price
decisions and actions associated with establishing pricing objectives and policies - determining product prices, variable/dynamic pricing
marketing core strategies: segmenting markets
demographic, geographic, psychographic, behavioral - gender, age, race, edu, income, lifestyle, purchase behaviors (e.g. early adopters)
market segmentation?
dividing market into smaller groups based on shared characteristic
tool brands
dominated by 8-10 major players - Diablo, Freud (owner Kohl is FSU alum), Dremel, CST/beyer, Roto, Verspat American
iceberg metaphor
explains how/why marketing became misunderstood as what we see everyday: what is above the waves and smaller than parts below the water - visible= promotion/what we think of marketing (ad, promo, branding) - below= what marketing actually is-- complex because it's strategic, quantitative, multi-faceted + driven by big data which fuels consumer understanding and leads to great products
Societal Era
firms now serve three entities: shareholders, customers, society
Production Era
firms produced what they could make - seller's market-- demand exceeded supply - inward focus, technical development - food safety wasn't safe before
what process did McDonald's invent?
game-changer in applying manufacturing facility processes to fast food - production line philosophy - putting out food and same level of high quality and much faster/more consistently than anyone else - taught course and had consulting company
product
goods, services, ideas
Charmin sells toilet paper so how can they build relationships?
have free, themed restrooms in Times SQ - also came out w/robot designed to bring you toilet paper
A company with a customer orientation would believe that the main goal of good marketing is for their company to gauge their success based on:
how they satisfy customers
promotion
inform individuals/groups about org and its products/services - ad, PR, personal selling, in-store promos, street teams/guerilla marketing, viral marketing
relationship marketing
long-term, mutually satisfying, buyer seller relationships - focus on customer retention: repeat customers generate over twice as much revenue as new customers, long-term makes firm profitable not one-time
Simple Trade Era
made by hand, grown, or traded in small quantities - lasted til Industrial Revolution, giving us variety - could be done quickly and in mass quantities so lowered price
dist/place
make products avail in places/quantities desired, minimize cost of inventory, transportation, and storage - ex: Amazon's advantage - vending machines are effective method - ex: Carvana
Misconceptions of Marketing
many think it's billboards at Times Square, brand impressions down Tennessee St, or famous ads
competitive advantage equation
market opportunity + core competency = competitive advantage
green marketing
meaningful, long-term relationships while maintaining, supporting, and enhancing natural environment - tied to societal marketing era
Determining where to sell Coca-Cola Cherry is an example of which of the following components of the marketing mix?
place
Dr. Brady walked into Publix to purchase some beloved La Croix. He went down the drink aisle only to find that his favorite flavor, Tangerine, was out of stock! He cried briefly, then chose his second favorite flavor, Pamplemousse. This distribution failure pertains to which part of Publix's marketing mix?
place
what is the most important P of the 4 "levers"
product
the 4Ps/marketing mix
product, price, promotion, place - levers to maximize revenue and stock price: change price, introduce new product, change dist strategy, invest in ad
gamechanger product
product/service/process that redefines or creates new market
The local farmer's market which is held in downtown Tallahassee charges a small fee for vendors to set up tables and sell their local grown products. This is closest to what type of economic system?
pure competition
where does the problem w/misconceptions of marketing originate?
quasi-marketers-- shady part of marketing because they're trying to convince people their product is better than it really is - promo aspect/ad aspects interacts w/gray area - real marketing is product and positioning - gray area: B2B - amorphous BS: trendy, overhyped fads, guerrilla/direct marketing
Sales Era
sell what we make, aggressive promo, short-term profit maximization - firms pushed products using aggressive sales tactics - tend to make promises you can't keep true
DivvyUp is a startup sock company that started at FSU. Part of their success can be attributed to one of their core competencies which is to donate a pair of socks to a person in need for every pair a customer buys. This is an example of which type of CSR?
strategic philanthropy
Using SWOT analysis, firms realize that they should try to convert internal weaknesses into ___________ and external threats into ___________
strengths; opportunities
Per our class discussion, it has been shown that only 15% of consumers can actually taste the difference in Pepsi, coke, and generic cola brands (Publix). Often times loyal Coca-Cola drinkers even find they prefer the taste of Pepsi when engaging in a blind taste test. If coke is indistinguishable by taste from these competitors, what are customers really purchasing when the buy coke?
the brand
what is the connection between Larry Bell and McDonald's?
the man behind Taco Bell took McDonald's brothers' course on fast food processes in Cali
core competency
things firms does well or better than others - ex: FedEx and Amazon's dist - ex: Ebay-- best option to buy 2ndhand through web portal to essentially access flea markets, yard sales, and more around the world
identifying opportunities
through marketing, determine what products/services may be of interest to customers, and strategy to use in sales, comms, and business development
Uber was founded in 2009 and has since expanded internationally, becoming increasingly successful. In 2012 a company called Lyft entered the market. Like Uber, Lyft facilitates peer-to-peer ride-sharing, and consumers have a hard time distinguishing between the two companies. This example relates to the ___________ aspect of marketing. As a result, Uber will likely need to focus more attention on ___________
time/reality; promotion
true or false: if marketers hit their mark w/product, price, and dist, there's little need to advertise
true
marketing citizenship
accomplished when a firm fulfills the economic, legal, ethical and philanthropic social responsibilities expected by stakeholders
marketing (Dr. Brady's approved definition of Marketing)
activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
segmentation happens in __ product classes
all
why is marketing needed/important?
1. time/reality 2. powerful 3. works really well
Warren Buffet
8th wealthiest person, worth 100 billion but still lives in 700k house he bought in '58, owns Berkshire Hathaway - "takes 20 yrs to build a rep, and 5 min to ruin it" - eats breakfast at McDonald's every morning - based in Omaha
In the late 1990s Publix noticed there was an increase in Tallahassee residents' desire for organic food, but there were no stores that offered organic food. In response to this interest, Publix created organic food departments in their Tallahassee stores. This is an example of:
A market opportunity
Old Milwaukee Light is the most decorated mass produced light beer in the U.S but does not place in the Top 25 of the highest selling ones. This is a function of the power of:
Advertising & Branding
Old Milwaukee is the most decorated mass produced light beer in the US, however, the top selling light beer in the US is Bud Light. How do you explain this discrepancy:
Advertising and branding
Nike once outsourced their shoe production to other countries that rely on child labor. While Nike did not hire the children itself, Nike knew the companies that they were outsourcing to were engaging in this terrible practice. Consumers as well as other stakeholders found this business act to be unacceptable. This is an example of:
An ethical violation
ex of companies w/little-no ad:
Asics, 4Rivers, Krispy Kreme, Trader Joe's, Zara, Lululemon, Costco, Tesla, Netflix, Rolls Royce, Ferrero Rocher, Sriracha
Warren Buffet's company Berkshire Hathaway is a conglomerate holding company that owns such wide-ranging businesses as BNSF Railways and Duracell Batteries. This is an example of having a _______ that spreads risk
Diverse portfolio
When purchasing a plane ticket, Southwest Airlines attempts to give you more for your money by letting you check one bag for free, while most other airlines charge you for all your baggage. This is most likely Southwest's way of:
Creating value
As a result of the large baby boomer population there is an increase in Americans who are ages 51-70 in America. In response to this aging population, health care companies are adapting their products to include more products aimed towards older adults. This is an example of which external environmental force?
Demographic
The Federal government regulates advertising and tries to eliminate deceptive advertising claims, which agency is responsible for this?
FTC
Jennifer walks into a store to buy a new shampoo product. She sees a brand of shampoo with the packaging stating, "Strengthens hair 6x better than the leading competitor!" These claims are not scientifically proven or approved by regulators. Which government agency would review this case?
Federal Trade Commission (FTC)
Which of the following is not a part of the structure for the pyramid of social responsibility?
Foresight
In 2007 Amazon released the Amazon Kindle e-reader. This allowed users to browse, buy, download, and read e-books, magazines, and other digital media wirelessly via the Kindle Store. This product also had e-ink technology that allowed the screen to be read in full daylight. After the introduction of this devise, several other companies offered similar products. The Amazon Kindle is considered a ________ product
Game Changer
Hummer released an advertisement on a billboard stating, "Thirsty For Adventure, Not Gas" with a subtitle saying it gets 20/mpg. The Hummer's 20/mpg is extremely low relative to other trucks in its category and even worse relative to standard cars. This advertisement is an example of _______
Greenwashing
Netflix provides employees with cool perks like free rides to and from work. They also provide access to a free cafeteria for breakfast, lunch, and dinner. They provide these perks in hopes that if they take care of their employees, their employees will treat their customers with similar respect and positivity. What is this type of marketing called?
Internal marketing
In 2008 it was discovered that the financial firm Madoff Investment Securities LLC was stealing money from its customers by spending the money on personal items instead of investing it in the financial products they were supposed to. The firm would also print and mail fake statements to clients every month so that the clients thought their money was invested. This is an example of which of the dimensions of social responsibility?
Legal
Samsung sells 1 out every 4 smartphones sold in the United States. This equates to a 25% _____
Market Share
15% of all bowlers purchase Roto Grip bowling balls over other bowling ball brands. This represents Roto Grip's what?
Market share
A cereal company advertises that its cereal can lower cholesterol. This statement may be misleading as the company cannot provide evidence to prove this claim. This situation involves an ethical issue that is related to which of the 4 P's?
Promotion
Nike has created self-lacing shoes. Which of the four Ps should be used to make consumers aware and excited about the new product?
Promotion
Back in the day, if you wanted to watch TV you had the choice of four different networks, NBC, CBS, ABC, and PBS. There were not any other options than these four stations. What type of competition is this an example of?
Oligopoly
In the United States there are three auto manufacturers, Ford, General Motors, and Chrysler. It is difficult for an entrepreneur to start a new car manufacturing company because it costs billions of dollars in startup costs. The automobile market is an example of what type of competitive structure?
Oligopoly
Amazon recently purchased Whole Foods. Whole Foods uses Amazon's expertise with delivery to offer grocery delivery to people who use their service, rather than the customer having to actually go to the grocery store. What part of the marketing mix is being used by Whole Foods with this service?
Place
Coca-Cola has vending machines located near the entrances of most buildings on campus. There are also several vending machines in high traffic areas. With this distributed arraignment of multiple opportunities to purchase Coca-Cola products, the company has met what pillar of the marketing mix?
Place
Companies often have candy display cases in the checkout lanes of super markets. These display cases are placed lower so that they are at the eye level of children and can attract the attention of children while they are in the checkout line. Research has shown that this results in a 10% increase in candy sales. As companies have increasingly used these candy display cases child obesity has risen by 20%. This is a situation of ethics involved in which of the 4 P's?
Place
Costco is a lovely place to shop if you have a family of 12; But as a single individual, Alec doesn't need 54 rolls of paper towels or 64 rolls of toilet paper because it is inconvenient to store in his small apartment. Alec prefers a place like Publix that has his grocery needs in the quantities more appropriate for his situation. Alec's preference for shopping based on the quantities within the packaging is relating to which aspect of the marketing mix?
Place
In general, when pricing products you should?
Price it at a level that will cover your costs and maximize your profits
One of the marketing eras is defined by firms having a strong focus on the items they could produce as there was a lack of other options. This era was a sellers' market because supply was less than demand. This is an example of which of the marketing eras?
Production
ex of gamechangers:
YETI, Tesla, La Croix, Spiker Semester, Uber, Netflix, iPhone, Air BnB
customer relationship marketing
using info about customers to develop and sustain desirable customer relationships
marketing core strategies: creation
value: rewards card, value menu, babysitting relationship: establish one that's long-term and mutually satisfying between buyer & seller
market opportunity
when circumstance and timing meet to create strategic windows of opportunity (e.g. changes in style) - ex: Starbucks took advantage for place for consumers to hang out, work on laptop, meet for coffee
competitive advantage
when market opportunity aligns w/firm's core competency
