MARKETING (Exam 1)

Warner Bros:

- They produce the Harry Potter famous chocolates, yet the company discovered they were buying cocoa from a company that had a poor record on human rights and child labor. - There were more than 400,00 signatures to the film studio that made the company publicly apologize and have an immediate change

Suneera Madhani:

- Use to work in a credit card company and she noticed there was a lack of transparency since there were many additional fees required from customers. - She tried to fix the problem yet she couldn't so she quitted her job and started "Fattmerchant" which consisted in charging only 100 per month, leaving any additional fees aside. - She had vision, mission and goals to start a new era for credit cards that doesn't look down on women as well as has 100% transparency.

PepsiCo's Frito-Lay:

- Worked with Nielsen's NeuroFocus to assess consumer motivations underlying the success of its Cheetos snack brand.

Classification of Products

-Deficient products have neither immediate appeal nor long run benefits. -Pleasing products give high immediate satisfaction but may hurt consumers in the long run. -Salutary products have low appeal but may benefit consumers in the long run. -Desirable products give both high immediate satisfaction and high long run benefits.

Consumer behavior:

The process we use to select, purchase, use, and dispose of goods, services, ideas, or experiences to satisfy needs/desires Internal, situational, and social factors influence consumer behavior Examples: - Lumbersexual - Masculinity - Man buns - Millenials are less racional tolerant - Glitter Bombs

Online Behavioral and Social Tracking and Targeting

Tracking consumers online might be as simple as scanning customer reviews and comments on the company's brand site or on shopping sites such as Amazon.com or BestBuy.com

Market Opportunity:

When the right combination of circumstances and timing permits an organization to take action to reach a particular target market.

Strategic windows

are periods of time during which there is an optimum fit between the key requirements of a market and the particular capabilities of a firm competing in that market.

Stealth Marketing

- Any marketing strategy that advertises a product to people without them knowing they are being marketed. - Ex: Sony Ericson paying actors to make other people take photos with their cameras, and they appearing to be normal people.

P&G:

- Market Research by observing consumers in their natural environment. - Saw chinese wash her hair with only 3 cups of water, which made the company deduce that their shampoo should be easily rinsable.

- 4 steps in designing a costumer driven marketing strategy:

- Market Segmentation - Market Targeting - Differentiation - Positioning

Difference btw Market and Marketing Research:

(collect current data and combine it with past data) 1. Market research focuses specifically on the market and market trends, size, etc. 2. Marketing research is broader. It's a wide range of activities. May involve market research, but is broader.

J&J:

- Accused company directors of ignoring red flags of manufacturing defects. Accused of contamination and indirect labeling. Also said to have marketed drugs that were not approved. - Chicago accident with Tylenol for children resulted in seven deaths: Good action plan since it took the product out and calmed nerves of costumers.

Amazon:

- Amazon was boycotted for having put a great variety of bookstores out of business. - Now amazon is being boycotted because it is said to have terrible working conditions in Pennsylvania.

Business Plan:

- An on-going system of making decisions that guides your firm in the long and short run. - Serves as a guide for the entire organization

Marketing information:

- Analyzing o Customer Relationship Management (CRM): Companies capture information at every possible customer touch point. Used to manage detailed information about individual customers and carefully manage customer touch points in order to maximize customer loyalty. • Identify customers to get to know them • Differentiate customers by their needs • Interact with customers • Customer parts of our product o Data warehouse: companywide electronic database of finely detailed customer information that needs to be sifted through for gems. o Data mining: use of high-powered techniques to sift through the mounds of data and dig out interesting findings about customers. - Distributing: o The marketing information system must make the information available to managers and others who make marketing decisions or deal with customers. o Many companies use an intranet to facilitate information distribution. The intranet provides ready access to data, stored reports, and so forth. - Other Considerations(Small business and non profit organization): o Managers can conduct informal surveys using small convenience samples. o Small organizations can obtain most of the secondary data that is available to large businesses.

Arm & Hammer

- As more women entered the workplace, baking from scratch declined, and women began buying prepackaged cake and cookie mixes. Arm & Hammer realized that it needed to reposition its brand to reverse its declining market share. The firm did so by looking for ways in which the product could be used, other than baking. As a result, they began positioning the product on the basis of uses such as 1) refrigerator/freezer deodorizer, 2) as an alternative to toothpaste for brushing teeth (this was before the Arm & Hammer toothpaste brand was launched, and 3) as a carpet deodorizer which could be sprinkled on rugs, then vacuumed away (again, before the Arm & Hammer branded carpet deodorizer was introduced).

Changing Age Structure of Population

- Baby Boomers - Generation X - Milennials (Echo boomers/Generation Y) - Generations Z (born digitals)

Corporate Marketing Ethics Policies:

- Broad guidelines that everyone in the organization should follow - Philosophies that should guide companies and marketing managers: o 1: Decided by the free market and legal system o 2: Responsibility is in the hands of companies and managers

Assessing Organizational Resources and Opportunities:

- Competitive Advantage: Market opportunity + core competency + strategic window

Market Intelligence:

- Competitive Insight o Competitor Intelligence o Product Intelligence - Market Insight o Market understanding o Customer insight (used to have a competitive advantage)

Developing Marketing Information:(CMI)

- Competitive Marketing Intelligence (purchase data collected by outside firms): the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketplace. o Gain early warnings of competitor moves and strategies. o Disadvantage: may involve ethical issues o Adv: consumer insight and association with the brand o For example, the U.S. Security and Exchange Commission's database provides a huge stockpile of financial information on public competitors

Bausch & Lomb's ReNu with MoistureLoc:

- Created contact lenses solution that turned out to cause fungal eye infection. - Criticized for acting slowly, and being close lipped which actually affected their customer trust. - If your product is in any way harmful you need to assume responsibility, apologize and take action.

AMA Code o Ethics:

- Do no harm - Truth in marketing systems - Embrace ethical values: honesty, responsibility, fairness, respect, citizenship, transparency.

Hispanic Market:

- Exploiting social paradigms (ex: luxury cars attract women) - Vulnerable audiences (ex: children response to advertisement/ mcdonalds logo flashed in kids message)

Types of influences of consumers decision making process: (external)

- External o Situational Influences: • Physical Environment • Time (Poverty) o Social Influences: • Culture, sub culture: • The values, beliefs, customs, and tastes produced or practiced by a group of people • Includes key rituals like weddings and funerals • Subcultures: A group within a society who share a distinctive set of beliefs, characteristics, or common experiences o Microculture: Those who are identified because of a specific activity (ex: HOGS - members of the Harley Davidson Owners Group/ Snowboarders/Macophiles) • Social class: The overall rank or social standing of groups of people within a society, according to factors such as family background, education, occupation, and income • Fore example, luxury goods often serve as status symbols that allow people to flaunt their membership in higher social classes. • Group membership: An actual or imaginary individual or group that has a significant effect on an individual's evaluations, aspirations, or behavior • Opinion Leaders: • Are frequently able to influence others' attitudes or behaviors • Have high interest in product category • • Gender Roles: Society's expectations regarding appropriate attitudes, behaviors, and appearance for men and women. Consumers often associate "sex-typed" products with one gender or other

General Motors:

- GM announced a recall in early 2014 due to faulty ignition switches in a number of its cars, now believed to have cost 42 people their lives. The company's problems were compounded by the realization that it had known about the defect for over a decade

Fisher-Price

- Has established an observation lab in which it can observe the reactions children have to new toys.

Types of influences of consumers decision making process: (Internal)

- Internal (PMPLALA) o Perception: how we select, organize and interpret info from the outside world • 3 factors necessary for perception to occur: • Exposure (Ex: subliminal advertisement) • Attention • Interpretation • Information Inputs: • Selective Exposure: individuals select which inputs will reach awareness • Selective Distortion: changing info based on beliefs or feelings • Selective Retention: individuals only remember info in regards to their feelings o Motivation: internal states that thrives us to satisfy needs based on a goal • Maslow's hierarchy of needs and related products: • Self Actualization (Self fulfillment) ex: hobbies, traveling • Ego Needs (Prestige, status, accomplishments) ex: car, furniture, country clubs, liquors • Belongingness (Love, friendship) ex: clothing, grooming products , clubs • Safety (Shelter, protection) ex: insurance, alarm systems • Physiological (water, food, sleep): medicines o Personality: et of unique psychological characteristics • Self concept • Self Esteem o Learning: relatively permanent change in behavior • Learning theories: • Behavioral (connections we form within events) o Classical Conditioning (2 stimuli at the same time) o Operant Conditioning (rewards and punishments) • Cognitive (connections within the environment) o Attitudes: Lasting evaluations of a person • Attract (feeling) • Cognition (knowing) • Behavior (doing) o Lifestyle: reflect a pattern of living. Marketers seek to describe people according to activities, interests, and opinions • Psychographics: group consumers according to psychological and behavioral similarities. o Age Groups: Goods/services often appeal to a specific age group. Purchases are often associated with a particular stage in the family life cycle • Examples: Furniture - college students buy cheap, easy to assemble furniture; married couples with newborns need cribs; middle-aged individuals may upgrade their furniture to nicer quality items once the children are out of the house; Elderly may need to replace their beds and mattresses with alternatives that making sleeping easier, such as Sleep by Number beds, or Tempurpedic mattresses.

Developing Marketing Information:(ID)

- Internal Databases (own research departments): are electronic collections of consumer and market information obtained from data sources within the company network. o Problems with internal data: • It may be incomplete or in the wrong form for making marketing decisions. • Keeping the database current requires a major effort because data ages quickly. • All the data must be well integrated and readily accessible.

Ethics: Schools of Thought

- Kan't Categorical Imperative: Golden Rule (Belief is an ethical principle only if it applies to everyone at the same time - Mill's Utilitarianism: (Believe is an ethical principle if is result in the greater good) - Fletcher Situational Ethics: Principle should be a moral law only if it contributed to love.

LEGO:

- Lego has become the Apple of toys since it has had research for over a decade that has helped them reach products that are best appealing to children. - They achieved this with a team that specialized only on research for innovative ideas. - Partnering with other companies has also helped them to gain value network. EX: lego createing it's own movie - A lot of research and experiments to discover best product.

Intrusions on Consumer Privacy

- Many consumers strongly resent or even mistrust marketing research. - Increasing consumer resentment has led to lower survey response rates in recent years. - The best approach is for researchers to ask only for the information they need, to use it responsibly to provide customer value, and to avoid sharing information without the customer's permission.

Managing Marketing Effort:

- Market Analysis (SWOT) - Market Planning - Marketing Department Organization (Plans into actions) - Marketing Control (Strategies) o CMO: Chief Marketing Officer o Functional Organization: different activities headed by a functional specialist

Shoe Craze (Nike)

- Marketers at the beginning of the walking shoe craze assumed that all recreational walkers were just burned-out joggers. Subsequent psychographic research that examined the AIOs of these walkers showed that there were actually several psychographic segments within the larger group who engaged in the activity for very different reasons. These different motivations included walking for fun, walking to save money, and walking for exercise. This research resulted in walking shoes for different segments, from Footjoy Walkers to Nike Healthwalkers.

Developing Marketing Information: (MR)

- Marketing Research (hire outside research specialists) Process: o Defining the problem and research objectives • Hardest step bc it guides entire process • Types of objectives (Gathering primary data): • Exploratory Research: Preliminary information that helps determine the problem o Observational and ethnographic research: yield the kinds of details that don't emerge from traditional research questionnaires or focus groups. • Descriptive Research: Describe things such as market potential for a product o Survey research: is the approach best suited for gathering descriptive information • Casual Research: test hypothesis of cause and effect relationship o Experimental Research o Developing the research plan (written proposal): • Outline management problems and research objectives • Identify information needed • Specify how results of analysis will be used • Estimate research cost • Types of research: • Identify the type of data required • Primary data: consist of information collected for the specific purpose at hand o Research Approaches: o Contact Methods o Sampling Plan o Research Instruments: • Questionaires • Mail • Telephone • Personal interviewing o Individual o Group • Immersion groups • Mechanical Insstruments: • Neuromarketing • Secondary data: consist of information that already exists somewhere, having been collected for another purpose. (online data bases, internet search engines) Needs to be R,A,C,I o Implementing the research plan o Interpreting and reporting the findings: - The market researcher must interpret the findings, draw conclusions, and report them to management. The researcher should present important findings and insights that are useful in the major decisions faced by management.

Pepsi:

- Monitors online discussions about its brands by searching key words in tweets, blogs, posts, and other sources, its servers take in a stunning six million public conversations a day, more than two billion a year. This is too much information for managers. Marketers need better information, and they need to make better use of the information they already have. The real value of marketing research and marketing information lies in how it is used and in the customer insights that it provides.

International researchers:

- Often must collect their own primary data. - Reaching respondents is often not easy in other parts of the world. - Cultural differences from country to country cause additional problems for international researchers. - Language is the most obvious obstacle.

Consumer Decision Making Process:

- Problem recognition: Occurs when customers sees great difference between their current state and desired state o Ex of stimulation of problem recognition: Campbell's Soup ad asks, "What shape are your kids in? - Information search: o Internal: costumers search memory (experiences) o External: costumers search in the environment (internet) • Behavioral Targeting: Deliver ads based on what customers do online • SEO (search engine optimization) • SEM (Search engine marketing) - Evaluation of alternatives: o Consideration Set: evaluating a small number of products for further consideration o Evaluating Criteria o Framing - Product choice o Based on heuristics (rules that are loosely defined) • Price = quality • Brand Loyalty • Country of origin - Post purchase evaluation o The degree of satisfaction with the product depending in if your expectations were met or not. o Cognitive Dissonance: refers to the anxiety or regret that a consumer may feel after choosing from among several similar attractive choices. Essentially, consumers become nervous and second guess the choice they made. • Reduce CD: Warranties, follow up emails, additional info.

The history of marketing:

- Product Era o Mass Production o New ways to use labor and technology - Sales Era o Advertising and sales are key to attracting new costumers - Relationship Era o Responsive to costumers o New product innovation o Honoring promises, openness, trust. - Triple Bottom Line Era o Not just satisfying short term needs but creating long term bonds to maximize social, financial and environmental bottom line • Social marketing, sustainability, green marketing.

McDonald's (Basic research: listening to customers):

- Receives 2,200 complaints/day. - Of those, 70% (1890) are service-related. - Of those, half (945) receive follow up. - Of those, 1/3 (315) were dissatisfied with the recovery. - So, 33% (630) of the daily service complaints are addressed. - The real problem: what if 1,890 only represents 5% of the dissatisfying experiences?

McDonald's and Walmart:

- Risked alienating workers, and therefore also customers, by not adequately addressing protests against their employees' low wages. While pay may be low enough to put some workers below the poverty line, executives at these companies often make millions

Multilevel Integrated Planning: (strategic)

- Strategic Planning: o Developing and maintaining strategic fit between companies' goals and capabilities and its changing marketing opportunities. o Establishes firm's purpose o Adapting firm to take advantage of opportunities o Process: • Analysis of Marketing environment (economic, political, competitive) • Asses companies financial and human resources as well as capabilities. (goodwill, reputation, brand name, core competencies) • Identification of opportunities in the market place (market opportunities and strategic windows) • Discover competitive advantages (When company matches a core competency to an opportunity)

Marketing Plan (Focuses in addressing the 4Ps):

- The environment (people) - Marketing Objectives (product) - Marketing Strategies (place, price, process) - Accountability (responsible): the promotion

K-Cups:

- The use of K-cups has been increasing significantly over the years. Even though it may seem as a profitable business due to its popularity, it is incredibly damaging for the world. - Production of cups could go around the equator almost 11 times. - Green Mountain: only 5% is recyclable - Not recyclable or biodegradable (great plastic waste)

Broken Window Theory:

- Theory that maintaining urban environments may stop or decrease vandalism. - Sustainable marketing builds profitable customer relationships by creating value for customers and get value in return in present and future.

Principles of Sustainable Marketing

1. Consumer-oriented marketing means that the company should view and organize its marketing activities from the consumer's point of view. Only by seeing the world through its customers' eyes can the company build lasting and profitable customer relationships. 2. Customer-value marketing means the company should put most of its resources into customer value building marketing investments. By creating value for consumers, the company can capture value from consumers in return. 3. Innovative marketing requires that the company continuously seek real product and marketing improvements. 4. Sense-of-mission marketing means that the company should define its mission in broad social terms rather than narrow product terms.

Trends that will shape consumer behavior

1. Multiplicity (Active participation) 2. Hyper Efficency (being fit) 3. New Industrial revolution (users become creators) 4. Shifting to visual vocabulary 5. Age of impatience 6. Remixing tradition

The Boston Consulting Group Approach :

A company classifies all its SBUs according to the growth share matrix -The vertical axis: market growth rate provides a measure of market attractiveness. -The horizontal axis: relative market share provides a measure of company strength in the market. -Stars. High growth, high share businesses or products. They will turn into cash cows. -Cash cows. Low growth, high share businesses or products. They produce a lot of cash that the company uses to pay its bills and support other SBUs that need investment. -Question marks. Low share business units in high growth markets. They require a lot of cash to hold their position. -Dogs. Low growth, low share businesses and products.

- Brand Personality:

A distinctive image that captures the brand's character and benefits o Sincerity: (Ex: Disney) o Excitement: (Ex: Apple) o Competence (Ex: Toyota) o Sophistication (Ex: Rolex, Cartier) o Ruggedness (Tough and outdoorsy) Ex: Timberland, Ford Trucks

Differentiation:

Actually differentiating yourself from the other market firm to create superior value to costumers. Interplay between quality price and utility.

Customer Driven Market Strategy:

Companies must divide up the total market, choose the best segments, and design strategies for profitably serving chosen segments. - Differentiation o Product position is the place the product occupies relative to competitors in consumers' minds. o Positioning is arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. - Positioning o Positioning begins with differentiation—differentiating the company's market offering so that it gives consumers more value.

Market Fragmentation:

Creation of many consumer groups due to the diversity of their needs and wants.

Strategic Considerations (3 Cs):

Customer, Competition and Company. Consider what the customer wants, what the company does best and what it struggles in that other companies can have a competitive advantage.

Generational Marketing

Defining people by their birth date may be less effective than segmenting them by their lifestyle, life stage, or the commons values they seek in the products they buy.

Impure Marketing:

Do to certain ambiguities in quality and costumer preferences (Ex: creation of products with same style but slight change. Adidas vs. Abibas/ DFC vs. KFC/ use of almost naked people or perfect image of a person/ Old Milwaukee vs. Bud Light)

Socially Responsible Behavior.

Enlightened companies encourage their managers to "do the right thing."

System Thinking:

Holistic view of a business that focuses on understanding, explaining, and predicting behaviors of complex systems where the emphasis is on studying the system as a whole. - System is made up of independent elements that interact - Organizations can be seen as systems - Your view depends on where you are and the role you play in the system

Synergy:

Interaction to produce a greater effect than the sum of their separate effects. - Vision: What we want to achieve, what we want to be. (single thought) - Mission: How are we going to achieve it (single thought) o Market Oriented Mission Statement: statement of the organization purpose and that defines the business in terms of satisfying basic customer needs. - Goals and Tactics: should be smart (specific, measurable, attainable, relevant and time-based)

Cause-Related Marketing.

Many companies are now linking themselves to worthwhile causes.

Marketing Research:

Marketers identify costumers unwanted needs via marketing research and then develop products that meet those needs. Real value of marketing research is based on how it is used. What customer insights it provides. Goal: provide relevant, timely facts needed to plan a strategy Approaches followed by firms: - Use own research departments - Hire outside research specialists - Purchase data collected by outside firms

Utility:

Marketing serves as a tool to help an organization to create utility. -Time: Costumers have the product at the time they need them. Your product needs to be available at the market and has easy access (seasonality, weather, holidays). -Place: Easy a convenient place to put your product Have effective delivery transportation system -Possession: The consumer will be satisfied only if he has full possession of the product. Feeling of satisfaction for having ownership. (Freedom of use) -Form: The benefits and satisfaction that the customer derives from the product (form utility is a strategy used to produce a product that would appeal to your costumers and can often times be directed to more than one target market. An example is a laptop that is also used as DVD) Ex: Coca Cola (Would you go to Atlanta to buy one?)(Would you buy Celo Cola, which is exactly the same?)(Bayern vs. Kirkland Aspirin)

Mattel:

Mattel was producing products that contained toxic led paint in toys that could affect children if ingested. This was a challenge that could've destroyed Mattel, yet they learned how to handle it an publicly apologized. They created a system that tested all materials in production to avoid having any toxic chemicals in their toys. - Shows the importance of having a plan, and being sincere and ethical, and doing a lot of marketer research to know how to solve the problem.

Core Functions of Marketing (4ps):

Place, price, promotion, product. Marketing is the process of creating, distributing, promoting and pricing a product, service or idea. (Theses are the levers you should pull to differentiate yourself)

Positioning:

consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. - More-for-more: better product for higher price - Same-for-less: Offering the same for less (Discount stores) - More-for-the-same: brand offering with comparative quality but lower $ - More-for-less: lower quality for lower price

Economic environment

consists of factors that affect consumer purchasing power and spending patterns. -Industrial economies - constitute rich markets for many different kinds of goods. -Developing economies - offer outstanding marketing opportunities for the right kinds of products. - Subsistence economies - consume most of their own agricultural and industrial output.

A marketing information system (MIS)

consists of people and procedures for assessing information needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights. - Must monitor the marketing environment to provide decision makers with information they should have to better understand customers and make key marketing decisions - CRM systems facilitate this process.

- Market Targeting:

involves evaluating each market segment's attractiveness and selecting one or more segments to enter. o A company with limited resources might serve only a few "market niches." (segments that major competitors overlook or ignore)

Natural environment

involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities. - Trends in the natural environment: o Shortages of raw materials. o Increased pollution. o Increased government intervention.

Sampling Plan:

is a segment of the population selected for marketing research to represent the population as a whole. (Who, size and procedure?) - Probability sample o Simple random sample (equal chance) o Stratified (divided into groups like age) o Cluster (divided into groups and take sample from each group) - Non-probability sample o Convenience sample (easiest population) o Judgement sample o Quota sample (interview a number of people)

Cultural environment

is made up of institutions and other forces that affect a society's basic values, perceptions, preferences, and behaviors.

Behavioral targeting

is the practice of marketers using online data to target ads and offers to specific consumers.

o Market Segmentation

is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate products or marketing programs. o Create value for targeted costumers. o Division in like minded groups

Marketing mix (4ps/4cs)

is the set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market. - Price - Promotion - Product - Place

Marketing dashboards:

meaningful sets of marketing performance measures in a single display used to monitor strategic marketing performance.

Societal marketing

means an enlightened company makes marketing decisions by considering consumers' wants and interests, the company's requirements, and society's long run interests. Products can be classified according to their degree of immediate consumer satisfaction and long run consumer benefit. (Figure 16.4)

Marketing ROI

measures the profits generated by investments in marketing activities.

Marshmallow Challenge:

o Business students tend to do poorly because they are trained to look for the one perfect solution, yet kindergarteners use to build prototypes and great results. o When given motivation ($) and shows high stakes have high impact. Not one group finished the tower. o Helps identify the hidden assumptions. All challenges have a marshmallow. You can make faulty decisions by having many assumptions.

Multilevel Integrated Planning:(operational)

o Day to day activities. o Action plans that tell us if we are succeeding

- Differentiation

o Differentiation: involves actually differentiating the firm's market offering to create superior customer value • Value proposition: how a company will create differentiated value for targeted segments and what position to occupy in those segments. • Product's position: the way the product is defined by customers on important attributes

Multilevel Integrated Planning: (functional)

o Each area establishes their own plans that contribute to the organizational planning

- Market Segmentation

o Market Segmentation: involves dividing a market into smaller groups of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes. • To have an effective MS: MASDA (measurable, accessible, substantial, differentiable, actionable) • A. Demographics: gender, family size, age, religion, income, education o Age and life cycle segmentation o Gender segmentation o Income segmentation • B. Psychographics: lifestyle, social class, personality o VALS: values and lifestyles • Primary motivations • Level of resources and motivation • C. Geographic: nations, regions, states o Geodemographics: geography + demographic • D. Behavioral: knowledge, attitudes, users o Occasion o Benefit • Users (potential, ex users) • Usage (light, medium, heavy) • Loyalty • Multiple Segmentation Bases: rarely limited to one or few variables • PRIZM: classifies Americans based of demographic factors o Segmenting Business Markets: • Operating characteristics • Purchasing approaches • Situational Factors • Personal Characteristcs o Segmenting International Markets: • Geographic factors • Economic factors • Political and Legal factors • Cultural Factors o Inter-market Segmentation

- Market Targeting

o Market Targeting: consists of evaluating each market segment's attractiveness and selecting one or more market segments to enter. • Selecting target market segments: • Undifferentiated Marketing (mass-marketing): Ignore market segment differences and target whole market with one offer • Differentiated Marketing (segmented) : Target several market segments and designs several offers • Concentrated Marketing (niche): Large share of one or a few targeted niches • Micromarketing: is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations. • Local Marketing • Individual Marketing • 3 factors to look at: • Segment Size and Growth o Substitute products • Segment Structural Attractiveness o Reduced by aggressive competitors o Power of buyers o Less powerful suppliers • Company objective and resources • Influenced by type of spenders: • Steadfast frugalists: least band loyal (most difficult group to market) • Involuntary penny pinchers: thrifty fashion but they don't like doing so • Pragmatic spenders: spending power • Apathetic materialistics: not affected by recession • Chose your marketing strategy based on: o Resources o Product variability (assembly line, hand made) o Product's life cycle stage (fast like tech, or something that can be around for a while) o Market Variability o Competitors marketing strategies CAN BE: - Socially Responsible Target Marketing: targeting vulnerable segments or questionable products or tactics

- Market Positioning

o Positioning begins with differentiation—differentiating the company's market offering so that it gives consumers more value. We pick the target from our company, and see the value proposition. Afterwards we try to propose a position that costumers decide if we achieved it or not. - More-for-more: better product for higher price - Same-for-less: Offering the same for less (Discount stores) - More-for-the-same: brand offering with comparative quality but lower $ - More-for-less: lower quality for lower price

- Positioning

o Positioning: consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. • Perceptual Positioning Maps: show consumer perceptions of their brands versus competing products on important buying dimensions. • Steps of differentiation and positioning strategy: • Identifying a set of differentiating competitive advantages upon which to build a position: o Developing positioning statement o Communcating and delivering chose point o Selecting positioning strategy • Choosing the right competitive advantages ((how many and which differences to promote: if important, distinctive, superior, communicable, preemptive, affordable, profitable) • Selecting an overall positioning strategy. o Value proposition: full positioning of a brand. • More for more • More for the same • Same for less • Less for less • Brand Positioning - The unchanging brand story. • Product Positioning - A tangible example of the brand story. • Geocoding: Customizes Web advertising so people who log on in different places see ad banners for local businesses.

Differentiation

o Product position is the place the product occupies relative to competitors in consumers' minds. o Positioning is arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

- Repositioning:

o Used to change the brand image o Redoing a product's positioning due to the market o Primarily through CRM

Environmental Scanning:

process of collecting information about forces in the marketing environment (outside forces that affect marketing management ability to maintain relationships with costumers) o Micro-environment: actors close to company (company, suppliers, intermediaries, customers, competitors) o Macro-environment: large societal forces (political, economic, legal, technical, socio cultural) • To deal with this you can be: • Proactive: trying to avoid or take action o SWOT analysis: situational analysis (used for marketing analysis) • S&W: Internal • O&T: External • Overall: try to match your strengths with your opportunities. Mitigate your threats with your strengths and transform your weaknesses into strengths. • Reactive: believe that there it is an uncontrollable element that you need to adapt to

SBU and strategies

strategic business units (ex: Disney) One of four strategies can be pursued for each SBU: 1. The company can invest to build its share. 2. It can invest just enough to hold its share. 3. It can milk its short-term cash flow, or harvest. 4. It can divest by selling it or phasing out.

A business portfolio is

the collection of businesses and products that make up the company. Planning: - 1: The company must analyze its current business portfolio and decide which businesses should receive more, less, or no investment. - 2: It must shape the future portfolio by developing strategies for growth and downsizing. Analysis: - 1: To identify the strategic business units (SBU). An SBU is a separately managed unit of the company with its own missions and objectives. - 2: To assess the attractiveness of its various SBUs and decide how much support each deserves. Most companies are well advised to "stick to their knitting" when designing their business portfolios. Most standard portfolio-analysis methods evaluate SBUs on two dimensions: - 1.The attractiveness of the market or industry, and - 2.The strength of the position in that market or industry.

Marketing is

the foundation of every business because it uncovers what customers want or need, they know about it and purchase because they can afford it or find it. Marketing refers to a process, a strategy, a tool.

Technological environment is

the most dramatic force now shaping our destiny.

Core competencies:

things a firm does extremely well which sometimes gives a company an advantage over its competition.

Growth Strategies:

•Market penetration: making more sales to current customers without changing its products. •Market development: identifying and developing new markets for its current products. •Product development: offering modified or new products to current markets. •Diversification: starting up or buying businesses outside of its current products and markets.