Marketing

Customer satisfaction-

o Customers will buy again and tell others about their good experience.

• Customer dissatisfaction-

o Customers will often switch to competitors and disparage the products to others.

What is marketing

o Engaging customers and managing profitable customer relationships. o Twofold goal of marketing: 1. Attract new customers by promising superior vale. 2. To keep and grow current customers by delivering satisfaction.

• Why is customer engagement important?

o Fostering direct and continuous customer involvement in shaping brand conversations, brand experiences, and brand community. o It is important because it goes beyond just selling a brand to consumers, goal is to make the brand a meaningful part of consumers' conversations and lives.

Which of the following statements is true regarding packaging?

-Packaging can be an important part of brand's identity

o Mass marketing

A firm might decide to ignore market segment differences and target the whole market with one offer. Such strategy focuses on what is common in the needs of consumers rather than on what is different. (Undifferentiated Marketing)

o Focus Groups

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.

Demographic Market Segmentation

Age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, generation.

What is the correct sequence of the steps in the strategic planning process?

-Define the company mission -Set company objectives and goals -Design the business portfolio -Plan the market and other functional strategies.

The definition of the company's mission is the first step in the strategic planning process. The mission is then transformed into ________, which in turn guide decisions about ________.

-Detailed supporting goals and objectives; the business portfolio

Advances in ____ are forces that offer exciting new opportunities to target customers more selectively and engage them more deeply

-Digital and social media

In recent years, today's marketers are also reexamining their ______ responsibilities.

-Ethical and societal responsibilities

Many marketers are now connected ________ with their customers, marketing partners, and competitors.

-Globally

Augmented Product

Offering additional consumer services and benefits. -Example: iPad gives customers a warranty.

For which service characteristic do marketers need to pay close attention to fluctuations in demand?

Perishability

The mission is transformed into detailed supporting goals and objectives, which turn guide decisions about the business portfolio. Then each business and product unit must develop detailed ______ plans in line with the company-wide plan.

Functional

Government Publics

Government developments, marketers often consult company lawyers.

Subcultures

Groups of people with shared value systems based on common life experiences and situations.

4) Which of the following is the correct order for the five steps in the five step decision making process (assuming the consumer goes through the model in the "typical" order)?

c) Need recognition, information search, evaluation of alternatives, purchase decision, post-purchase phase

5) Dividing a market into several sections of customers is known as ________.

c) market segmentation

o Demographic Environment

-The study of human populations in terms of size, density, location, age, gender, race, occupation. -Major interest to marketers because it involves people, and people make up markets. -Baby boomers have been one of the most powerful forces shaping the marketing environment.

Media Publics

Carries news (newspapers and social media)

o Unsought Products

Consumer either does not know about or knows about but does not normally consider buying.

o Specialty Products

Consumer products and services with unique characteristics or brand identifications for which a significant group of buyers is willing to make a special purchase effort.

Product Concept

Consumers will favor products that offer the most in quality, performance, and innovative features.

What are the 4 types of Consumer Products

Convenience products Shopping Products Specialty Products Unsought Products

identify the main characteristics affecting consumer behavior

Culture Social Personal Psychological

_____ companies research customers deeply to learn about their desires, gather new product ideas, and test product improvements.

Customer- Driven companies

Financial Publics

Obtain funds (Bank, investments, stockholders)

Segmented marketing

A firm decides to target several market segments and designs separate offers for each. (Differentiated Marketing)

Product

Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.

o Experimental Research

Best suited for gathering causal information. Experiments involve selecting matched groups of subjects, giving them different treatments, controlling unrelated factors, and checking for differences in group responses. Tries to explain cause-and-effect relationships

o Consumer buyer markets

Buying behavior of final consumers- individuals and households that buy goods and services for personal consumption. All of these final consumers combine to make up the consumer market.

o Business Buyer Market

Buying decisions can range from routine to incredibly complex, involving only a few or very many decisions makers and buying influences. Marketers want to know how business buyers will respond to carious marketing stimuli. Straight Rebuy: Buyer reorders something without modifications. Modified Rebuy: They buyer wants to modify product specifications, prices, or suppliers. New Task: A company buying a product or service for the first time.

o Competitive advantage

Companies can gain this to the extent that their company can differentiate and position itself as providing superior customer value.

Economic Environment

Consists of economic factors that affect consumers purchasing power and spending patterns. Can have a dramatic effect on consumer spending and buying behavior. Marketers should pay attention to income distribution as well as income levels.

o Cultural Environment

Consists of institutions and other forces that affect a society's basic values, perceptions, preferences, and behaviors. People grow up in a particular society that shapes their basic beliefs and values. Example: Most Americans believe in individual freedom, hard work, getting married, and achievement and success.

o Political Environment

Consists of laws. Government agencies, and pressure groups that influence or limit various organizations and individuals in a given society.

Social Consumer Behavior

Consumer's small groups, social networks, family, and social roles and status. Small groups influence a person's behavior. Online Social networks are online communities where people Reference groups are face to face interactions that expose a person to new behaviors and lifestyles. Family members can strongly influence buyer behavior. Roles and Status can also play a part in social characteristics affecting consumer behavior. Economic and lifestyle.

• What are the main ways in which B2B marketing differs from B2C marketing?

Decision process has eight basic steps: Problem recognition, general need description, product specification, supplier search, proposal solicitation, supplier selection, order-routine specification, and performance review. o Consumer buyer is influenced by four key sets of buyer characteristics: Cultural, social personal, and psychological. These factors help marketers to identify interested buys and to shape products and appeals to serve consumer needs better.

Personal Consumer Behavior

Each personals distinct personality influences their buying behavior. Personality is unique psychological characteristics that distinguish a person or group. Traits such as self-confidence, dominance. The idea that brands also have personalities, and consumers are likely to choose brands with personalities that match their own. Brand personality- specific mix of human traits that may be attributed to a particular brand.

o Probability Sample

Each population member has a known chance of being included in the sample, and researchers can calculate confidence limits for sampling error. Simple random sample, Stratified random sample, Cluster (area) sample.

o Observational Research

Gathering primary data by observing relevant people, actions, and situations. Example: Questionnaire.

o A brand's value proposition

How it will create differentiated value for targeted segments and what positions it wants to occupy in those segments.

o Niche marketing

Instead of going after a small share of large market, a firm goes after a large share of one or a few smaller segments or niches. (Niche Marketing)

o Online marketing research

Internet and mobile surveys, online panels, experiments, and online focus groups and brand communities.

o Promoting points of difference

Marketers must think through the customer's entire experience with the company's product or service.

Cultural Consumer Behavior

Marketers need to understand the role played by the buyer's culture, subculture, and social class. The most basic cause of a person's wants and behavior. Example: Growing up in society, a child learns basic values perceptions, wants, and behaviors from his or her family and other important institutions.

Geographic Market Segmentation

Nations, regions, states, countries, cities, population density, and climate.

Behavioral Market Segmentation

Occasions, benefits, user status, usage rate, loyalty status.

o Ethnographic Research

Research involves sending observes to watch and interact with consumers in their "natural environments". The observers might be trained anthropologists and psychologists or company researchers and managers.

o Non-Probability Samples

Sampling error cannot be measured. These varied ways of drawing samples have different costs and time limitations as well as different accuracy and statistical properties. Convenience sample, judgement sample, Quota Sample

Psychographic Market Segmentation

Social class, lifestyle, personality

o Technological Environment

The most dramatic force now shaping our destiny. Antibiotics, robotic surgery, smartphones, and the internet. Our attitude towards technology depends on whether we are more impressed with its wonders or its blunders. New technologies can offer exciting opportunities for marketers. Many firms use RFID (Radio-Frequency identification transmitters) to track products and customers at various points in the distribution channel.

o Survey Research

The most widely used method for primary data collection. The approach best suited for gathering information. A company that wants to know about people's knowledge, attitudes, preferences, or buying behavior can often find out by asking them directly. Very Flexible.

o Natural Environment

The physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities. Unexpected happenings in the physical environment—anything from weather to natural disasters can affect companies and their marketing strategies.

o Micromarketing

The practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations. Rather than seeing a customer in every individual, micro marketer see individual in every customer. • Local marketing- tailoring brands and promotions to the needs and wants of local customers. • Individual Marketing-Tailoring products and marketing programs to the needs and preferences of individual customers.

Kroger sponsors such brands as Private Selection, Heritage Farm, and Simple Truth. Kroger does not manufacture any of these products. Which type of brand sponsorship is Kroger using?

- A private brand.

o Positioning

- Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

The value of customer relationships that a brand creates is called _______.

- Customer Equity

The step in the strategic planning process that should be market oriented, realistic, specific, motivating, and consistent with the market environment is the _______

- Definition of the company's mission.

In determining product quality, what are the two dimensions of quality marketers must decide upon?

- Level and consistency

• Differentiation and Positioning

- Marketers often prepare perceptual positioning maps that show consumer perceptions of their brands versus those of competing products on important buying dimensions.

When a company lengthens a product line by adding more items beyond its current range, they are ________.

- Stretching the line

Which marketing management orientation holds that a firm should have a customer focus to achieve sales and profits?

- The marketing concept

Which of the following is a pure tangible good?

- Toothpaste

o Shopping Products

- less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style.

Which of the following correctly defines a product?

-A product is anything offered to a market that might satisfy a need or want.

Customers

-Are the most important actors in the company's microenvironment. The aim of the entire value delivery network is to engage target customers and create strong relationships.

The Great Depression caused consumers to rethink their buying priorities and bring their consumption back in line their incomes. The challenge of this trend is to _______ with current times while also enhancing its long-term.

-Balance a brand's value proposition.

The first four steps of the marketing process focus on creating values for customers. The next step is designing a ______

-Customer value-driven marketing strategy

Marketing Intermediaries

-Help the company promote, sell, and distribute its products to final buyers. -They include resellers, physical distribution firms, marketing services agencies, and financial intermediaries. -Resellers are distribution channel firms that help the company find customers or makes sales to them. These include wholesalers and retailers that buy and resell merchandise.

Service _______ means that services cannot be seen, tasted, felt, heard, or smelled before they are bought.

-Intangibility

Service marketing requires ________. This means that the service firm must orient and motivate its customer-contact employees and supporting service people to work as a team to provide customer satisfaction.

-Internal Marketing

When we see Hello Kitty on children's clothing, Disney characters on lunchboxes, and Sponge Bob Squarepants on breakfast cereals, which form of brand sponsorship is being used?

-Licensing

Products and technologies eventually become outdated, but basic market needs can last forever. For this reason, company mission statements should be ______

-Market-Oriented

The _____ concept holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do.

-Marketing

The Company

-Marketing management takes other company groups into account- groups such as top management, finance, research and development (R&D), purchasing, operations, human resources, and accounting.

Digital marketing tools used in digital and social media marketing include______

-Social media, mobile apps, and blogs.

______ planning sets the stage for the rest of the company's planning. It develops a strategy for long-run survival and growth.

-Strategic

Suppliers

-Suppliers form an important link to the company's overall customer value delivery network, -They provide the resources needed by the company to produce its goods and services. -Supplier problems can seriously affect marketing. Marketing Managers must watch supply availability and costs. -Supply shortages or delays, natural disasters, and other events can cost sales in the short run and damage customer satisfaction in the long run.

Which of the following statements regarding the changing marketing landscape is correct?

-The Great Recession caused consumers to rethink their buying priorities.

Marketing management can adopt one of five competing market orientations, which include _______

-The production concept, the product, the selling concept, the marketing concept, and the societal marketing concept.

o Competitors

-To be successful, a company must provide greater customer value and satisfaction than its competitors do. -Marketers must do more than simply adapt to the needs of target consumers. -They must gain strategic advantage by positioning their offerings strongly against competitor's offerings in the minds of consumers.

Which of the following statements is true regarding managing service quality?

-Unlike product quality, service quality will always vary.

The quality of services depends on who provides them as well as when, where, and how they are provided. Which characteristic of services does this describe?

-Variability

Which of the following is considered part of an augmented product rather than that of an actual product or core customer value?

-Warranty

• Demands

-When backed by buying power, wants become demands. -Given their wants and resources, people demand products and services.

• Understand and be able to explain the impact of the major actors in the microenvironment:

1. Company 2.Suppliers 3.Marketing Intermediaries 4. Competitors 5.Publics 6.Customers

To design a winning marketing strategy, what are the two important questions a marketing manager must answer?

1. What customers will we serve? 2. How can we serve these customers best?

Psychological Consumer Behavior

4 Major factors: Motivation, perception, learning, and beliefs and attitudes. Beliefs and Attitudes • Beliefs- a descriptive thought that a person holds about something. • Attitudes- Describes a person's relatively consistent evaluations, feelings, and tendencies toward an object or idea. Learning • Changes in an individual's behavior arising from experience. Motivation • the need that is sufficiently pressing to direct the person to seek satisfaction. Perception • The process by which people select, organize, and interpret information to form a meaningful picture of the world. • How the person acts is influenced by his or her own perception of the situation.

General Publics

A company needs to be concerned about the general public's attitude towards its products.

Citizen-Action Publics

A company's marketing decisions may be questioned by consumer organizations, environmental groups, minority groups and others. Its public relations department can help it stay in touch with consumers and citizen groups.

Service

A form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.

o Publics

Any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives. -

o Segmentation

Companies divide large, diverse markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs.

Core Products

Company's product or services which are most directly related to their core competencies.

Targeting

Consists of evaluating each market segment's attractiveness and selecting one or more market segments to serve.

Major Factors in the Macro Environment?

Demographic Environment Economic Environment Natural Environment Technological Environment Political Environment Cultural Environment

Actual Product

Develop a product and service features, a design, a quality level, a brand name, and packaging

What are the two types of samples?

Probability Sample Non-Probability Samples.

Which brand dimension is defined as how consumers feel a brand meets their needs?

Relevance

Local Publics

This group includes neighborhood residents and community organizations.

Internal Publics

This group includes workers, managers, volunteers, and board of directors. Large companies will use newsletters and other means to inform and motivate their internal publics.

Experience

To differentiate company offerings, beyond simply making products and delivering services companies are creating and managing customer experiences.

o Convenience products

products and services that customers usually buy frequently, immediately, with minimal comparison and buying effort.

7) Brooke's Boutique plans to launch a new clothing line. For this purpose, the firm first conducts a survey to understand its target audience and identify the demographics of potential buyers. It then conducts experimental research to test whether customers associate discounted prices with lower product quality. Which types of research has the boutique employed in this case?

b) exploratory followed by descriptive

1) Demographic, economic, natural, technological, political, and cultural forces form the ________ of an organization.

b) macroenvironment

2) The practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as ________.

b) micromarketing

6) According to the five-step model of the marketing process, which of the following is the final step in the process?

d) designing a customer-driven marketing strategy

3) Brands vary in the amount of power and value they hold in the marketplace. Iconic brands like Apple, Google, and Harley-Davidson have achieved substantial brand ________.

equity

the marketing process

o 1. Understand the marketplace and customer needs and wants. o 2. Design a customer value-driven marketing strategy. o 3. Construct an integrated marketing program that delivers superior value. o 4. Engage customers, build profitable relationships, and create customer delight. o 5. Capture value from customers to create profits and customer equity (Capture value from customers in return).

• Define Customer Needs

o Are states of felt or deprivation. (Physical, social, and individual)

What are wants?

o Are the form human needs take as they are shaped by culture and individual personality? o An American needs food but wants Big Mac. (Example)

• What are the stages in the new product adoption process and categories of adopters?

o Awareness- The consumer becomes aware of the new product but lacks information about it. o Interest- The consumer seeks information about the new product. o Evaluation- The consumer considers whether trying the new product makes sense. o Trial- The consumer tries the new product on a small scale to improve his or her estimate of its value. o Adoption- The consumer decides to make full and regular use of the new product.

• What is a marketing information system?

o Begins and ends with users- assessing their information needs and then delivering information and insights that meet those needs. o Primarily serves the company's marketing and other managers. o May also provide information to external partners, such as suppliers, resellers, or marketing service agencies.

• What is the buying center and what role does it play in B2B purchases?

o Buying center Composed of all the people involved in the buying decision. It plays a role in buying decision process because it is influenced by internal organizational, interpersonal, and individual factors as well as external environmental factors.

• Define primary data

o Consist of information collected for the specific purpose at hand. o Observing relevant people, actions, and situations. o Examples: Surveys, observations, and experiments. (observational research)

• Define secondary data

o Consist of information that already exists somewhere, having been collected for another purpose. o Example: Company's database.

• What is a firm's product mix?

o Consists of all the product lines and items that a particular seller offers for sale. (Product Portfolio)

• Exploratory Research

o Gather preliminary information that will help define the problem and suggest hypotheses.

• Types of market segmentation

o Geographic o Demographic o Psychographic o Behavioral

• What are the functions of product packaging?

o Involves designing and producing the container or wrapper for a product. o Packaging has become an important marketing tool. o Packages must now perform many sales tasks.

• What is a firm's product line?

o Is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or that fall within given price ranges.

customer delight

o Keeping customers loyal, the aim of customer relationship management.

• What are the five steps in the five-step consumer behavior decision making process?

o Need Recognition o Information Search o Evaluation of Alternatives o The Purchase decision o Post-purchase behavior

the main characteristics of and be able to identify the types of primary data:

o Observational Research o Ethnographic Research o Survey Research o Experimental Research o Focus Groups o Online marketing research

• product marketing?

o Product Attributes o Branding o Packaging o Labeling o Product support services

• Know and be able to define the key characteristics that distinguish services from products

o Products are tangible goods that can be seen and felt. o Services are intangible and cannot be seen and felt.

• What is a brand?

o Represents everything that a product or service means to consumers. o Valuable assets to company.

• How does services marketing

o Service Intangibility: Cannot be seen or felt. o Inseparability: Cannot be separated from their providers. o Variability: Quality of service depends on who provides it. o Perishability: Cannot be stored for later sale or use.

• Product labeling?

o Simple tags attached to products to complex graphics that are part of packaging. o Perform several Functions (Identifies product or brand, Describe several things about the product.) o Labels and brand logos can support the brand's positioning and add personality to the brand.

• Market Orientation

o That the entire company obsesses over creating value for the customer and views itself as a bundle of processes that profitably define, create, communicate, and deliver value to its target customers

• Basic concept for the course: What are the 4 Ps?

o The Four P's o Product- Tangible good, ideas, and services o Price- What a buyer must give up to obtain a product. o Place- (Distribution) Product availability where and when customers want them. o Promotion- To bring about exchanges with target markets

• What is brand equity and why does it matter?

o The differential effect that knowing the brand name has on customer response to the product and its marketing. o It is important because it is the measure of the brand's ability to capture consumer preference and loyalty.

• customer lifetime value

o The entire stream of purchases that the customer would make over a lifetime of patronage.

• Define customer equity

o The total combined customer lifetime values of all of the company's current and potential customers. o Better measure of a firm's performance than current sales or market shares.

• Descriptive Research

o To describe things, such as the market potential for a product or the demographics and attitudes of consumers who buy the product.

• What is customer relationship management (CRM)?

o To manage detailed information about individual customers and carefully manage customer touch points to maximize customer loyalty.

• Causal Research

o To test hypotheses about cause-and-effect relationships. o Example: Would a 10 percent decrease in tuition at a private college result in an enrollment increase sufficient to offset the reduced tuition?

• What is Marketing Myopia?

o When sellers make the mistake of paying more attention to the specific products they offer than to the benefits and experiences produced by these products. o They focus only on existing wants and lose sight of underlying customer needs.

What are the Five Types of Customer Markets?

• 1. Consumer markets- individuals and households buy for personal consumption. • 2. Business markets- buy goods and services for further processing or use in their production processes. • 3. Government Markets- Consist of government agencies that buy goods and services to produce public services or transfer goods and services to others who need them. • 4. Reseller Markets- Buy goods and services to resell as a profit. • 5. International Markets- Buyers in other countries