MARKETING EXAM 2

what is the key with assessing information needs

the company must decide if the value of insight is worth the costs

value proposition

the full positioning of a brand

list the five sustainable marketing principles

-1.) consumer-oriented marketing- viewing and organizing a company's marketing activities from the customer's point of view -2.) customer value marketing -3.) innovative marketing- seeking real product and marketing improvements -4.) sense-of-mission marketing -5.) societal marketing

what are the four characteristics that influence consumer purchases?

-1.) cultural -2.) social -3.) personal -4.) psychological

define marketing research and list the steps

-1.) defining the problem and research objectives -2.) developing the research plan for collecting information -3.) implementing the research plan-- collecting and analyzing the data -4.) interpreting and reporting the findings

what are the four factors that influence business buyers?

-1.) environmental -2.) organizational -3.) interpersonal -4.) individual

what is big data?

the huge and complex data sets generated by today's sophisticated information generation, collection, storage, and analysis technologies. msu has a minor in business analytics that can help you learn how to handle big data

adoption process

the mental process through which an individual passes from first hearing about an innovation to final adoption

what are the four main segmentation variables and examples?

-1.) geographic- nations, regions, cities -2.) demographic- age, life-cycle stage, gender, income -3.) psychographic- lifestyle and personality -4.) behavioral- occasions, benefits, user status, usage rate, loyalty status

what are the key elements of social factors?

-1.) groups and social networks -2.) family- most important membership reference group -3.) social roles and status- a person's position in each group

culture

the set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions

what are the 3 ways to develop information? give examples

-1.) internal databases- ex; USAA providing financial services to U.S. military -2.) competitive marketing intelligence- ex; U.S. patent office -3.) marketing research- ex; approaches followed by firms (use own research departments, hire outside research specialists, purchase data collected by outside firms)

types of information search

-1.) internal search- when buyers search their memories for information about products that might solve their problem -2.) external search- when an internal search is not sufficient consumers seek additional information from outside sources

what are the three main differences between consumer and business markets?

-1.) market structure and demand -2.) nature of the buying unit -3.) types of decisions and the decision process

what are the key requirements for effective segmentation?

-1.) measurable -2.) accessible -3.) substantial -4.) differentiable -5.) actionable

list the key psychological factors

-1.) perception -2.) motivation -3.) learning -4.) beliefs and attitudes

environmental sustainability

generating profits while helping protect the environment

Which differences to promote

important, distinctive, superior, communicable, preemptive, affordable, profitable

why use multiple segmentation bases?

in order to identify smaller, better-defined target groups

what is the sensitivity to price?

inelastic- more fluctuating demand

primary data

information collected for the specific purpose at hand

secondary data

information that already exists somewhere, having been collected for another purpose

total marketing strategy

integrating ethnic themes and cross-cultural perspectives within a brand's mainstream marketing, appealing to consumer similarities across subcultural segments rather than differences

Read First Stop Marketing Research at P&G to understand the value of marketing research (pg 97). Did P&G do ethnographic research (pg 107 has the definition)? (They did, but called it a different name. What did they call it?

Marketing Research at P&G: Creating Irresistibly Superior Experiences P&G makes and markets an impressive list of food, beauty, and household products, including such familiar megabrands as Tide, Gillette, Bounty, Pampers, Always, Febreze, Charmin, Crest, Pantene, Vicks, and Old Spice. In all, P&G markets 65 top-selling consumer brands serving nearly 5 billion consumers in 180 countries, bringing in $65 billion in annual revenues. P&G's brand portfolio includes 23 billion-dollar-plus brands. Year in and year out, P&G is also the world's leading advertiser. P&G's goal is to create innovative brands that give consumers an "irresistibly superior experience." In these fast-changing times, however, to create such irresistibly superior experiences, P&G must first create a steady flow of deep, fresh insights into consumers' constantly changing needs and behaviors and into just what it is that will make the company's brands irresistibly superior. How does P&G gain these insights? Through marketing research—lots of marketing research. Each year, the company invests some $350 million on marketing research, conducting more than 15,000 research studies and interacting with more than 5 million consumers, amassing mountains of information and insights into what its consumers need and how they think, act, and buy. P&G employs a wide range of research approaches, ranging from traditional largescale consumer surveys, small-scale focus groups, and in-store studies to online panels, realtime social media listening, mobile surveys, and big data analytics. Over the years, P&G's marketing research has resulted in an impressive stream of innovative new-product and marketing successes. Consider P&G's Febreze odor remover. Febreze was developed as an "odor neutralizer," a groundbreaking innovation in a category filled with "odor masking" air fresheners. But after only a few years, Febreze's sales were tanking. To find out why, P&G conducted in-home usage tests in which small teams of P&G researchers observed and interviewed Febreze users and nonusers. The teams came up with a key consumer insight: Most Febreze purchasers weren't using the product to eliminate specific odors—say, in those smelly old sneakers or a pet bed. Instead, they were using it after normal cleaning—for example, spraying a carpet after vacuuming a room—as a further confirmation of cleanliness. Based on that insight, P&G reworked the product and its positioning. It added mild but refreshing scents to reinforce Febreze's odor neutralizing qualities. Currently positioned as "Odors out. Freshness in. Go ahead, breathe happy," Febreze now comes in a variety of scents including fresh-cut pine, bamboo ("a hint of misty bamboo") and Big Sur ("so your home smells like it's perched on the limb of a sandalwood tree"). P&G then launched an award-winning "Breathe Happy" repositioning campaign that dramatically demonstrated Febreze's ability to "clean away odors." Febreze grew quickly to become one of P&G's billion-dollar brands. P&G long ago mastered the art and science of consumer immersion research—called "Living It"—in which small teams of P&G staffers live, work, and shop with consumers to gain deep insights into what they think, feel, need, and do. For example, some years ago, P&G used immersion research to find out why Ariel Ultra, the super-concentrated version of its non-U.S. flagship detergent brand, wasn't selling well in Mexico. Ariel Ultra, which delivered more cleaning power at half the quantity per load, was targeted toward middle-class Mexican households, a value-oriented segment that had little room to store bulky detergent containers. However, after only a few months of disappointing sales, P&G temporarily pulled Ariel Ultra from store shelves while it reconsidered its strategy. Traditional surveys and focus groups provided some of the answers. First, Mexican consumers simply didn't believe that smaller amounts of concentrated Ariel Ultra could provide the same cleaning power. Second, for Mexican women, suds are a sign that the detergent was doing its job, but Ariel Ultra didn't suds up. "We should have understood. We didn't, so we failed," says a P&G manager. "We had to get out of our offices and become immersed in the real world and daily routines of consumers." So P&G's researchers dug deeper with "Living It" studies. The research teams learned that laundry is the most important household task for Mexican homemakers, who want to ensure that their clothing lasts and presents their family well outside the home. The researchers also noted that 90 percent of Mexican women use fabric softener, a product that P&G managers had assumed was little used. Finally, they saw that millions of rural Mexican homes had no running water or had it for only a few hours a day. Women either washed clothing by hand or with semiautomatic machines that required changing water manually, employing two rinse cycles after washing and two more after softening. Armed with these deeper insights, P&G reformulated Ariel Ultra to require less rinsing and less water. It also introduced Downey Single Rinse. The combination reduced the previous six-step laundry process to three steps—wash, add softener, and then rinse once. P&G then launched a promotional campaign that emphasized how P&G laundry products could save women time, effort, and water. The relaunched brand dramatically increased P&G's share of the laundry market in low- and middle-income Mexican households. Beyond traditional research approaches, P&G has also perfected today's digital research platforms, from online panels, web tracking, and mobile surveys to big data collection and analytics. Some of this research consists of digital adaptations of traditional methods. For example, when P&G learned that it was losing Pampers customers to competing brands when they switched to bigger sizes, it developed a mobile app that tracked participating customers' use of the brand through everyday diaries. The mobile app data showed that the next-size-up brand switching had nothing to do with perceived diaper performance. Instead, because the bigger size Pampers were shaped so differently, parents perceived potential fit problems. Parents also had a tough time in stores figuring out which size of Pampers was next. These research insights led to simple solutions—minor diaper design changes for better perceived fit and packaging modifications to more quickly and clearly communicate needed sizing information. The modifications lead to reductions in brand switching and increases in Pampers market share. P&G researchers have also mastered today's "big data." For example, the company reaps massive amounts of data from its thousands of consumer-facing websites around the world, which it combs constantly for customer insights. And P&G closely monitors the online, mobile, and social media environments to research and respond in real time to what consumers are doing, thinking, and talking about. For example, when Tide was doused on the NASCAR Daytona 500 track to clean up fuel spilled after a wreck, allowing the race to continue, Tide researchers picked up the flood of social media response and quickly aired ads capitalizing on the event. P&G uses sophisticated analytics to dig out actionable consumer insights from its big data. It then delivers the insights into the hands of P&G marketers via "decision cockpits," interfaces on their computers that let them drill down into important information. P&G has also set up more than 50 "Business Spheres" worldwide, high-tech digital centers where managers can immerse themselves in real-time information viewed on large displays. Such real-time research analytics help P&G marketers make faster and better decisions in their quick-changing environments. So how does P&G go about creating those irresistibly superior experiences? By gaining deep and fresh insights into what consumers need and want. And how does P&G gain those consumer insights? Through marketing research—lots and lots of marketing research

what are the five characteristics that impact the rate of adoption?

-1.) relative advantage- the degree to which the innovation appears superior to existing products -2.) compatibility- the degree to which the innovation fits the values and experiences of potential customers -3.) complexity- the degree to which the innovation is difficult to understand -4.) divisibility- the degree to which the innovation may be tried on a limited basis -5.) communicability- the degree to which the results of using the innovation can be observed or described to others

when designing a plan for primary data collections, what are the four key decisions?

-1.) relevant- does the data fit the project's needs? -2.) accurate- is the data reliably collected and reported? -3.) current- is the data up to date enough for current decisions? -4.) impartial- is the data objectively collected an reported?

figure 16.4 with examples of each quadrant

-1.) salutary- bicycle helmet -2.) deficient- bad tasting, ineffective medicine -3.) desirable- tasty and nutritious breakfast -4.) pleasing- junk food

what two things get in the what during purchase decision stage?

-1.) situational factors -2.) attitudes of others

descriptive research

-1.) used to better describe the market potential for a product or the demographics and attitudes of consumers -2.) best approach is survey

exploratory research

-1.) used to gather preliminary information -2.) helps to define problems and suggest hypotheses -3.) best approach is observational

casual research

-1.) used to test hypotheses about cause-and-effect relationships -2.) best approach is experimental

does ceo only stand for chief executive officer?

it also stands for compliance and ethics officer

what is the JND

just noticeable difference

what are the four different targeting approaches? define and provide examples

-1.) Undifferentiated (Mass) Marketing- a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer -2.) Differentiated (Segmented) Marketing- a market-coverage strategy in which a firm targets several market segments and designs separate offers for each -3.) Concentrated (Niche) Marketing- a market-coverage strategy in which a firm goes after a large share of one or a few segments or niches -4.) Micromarketing (Local or Individual Marketing)- tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local and individual marketing

list the personal/individual factors

-1.) age and life-cycle stage -2.) occupation -3.) economic situation -4.) lifestyle -5.) personality and self-concept

list the steps in the adoption process

-1.) awareness- the consumer becomes aware of the new product but lacks information about it -2.) interest- the consumer seeks information about the new product -3.) evaluation- the consumer considers whether trying the new product makes sense -4.) trial- the consumer tries the new product on a small scale to improve his or her estimate of its value -5.) adoption- the consumer decides to make full and regular use of the product

a need occurs when there is enough tension and distance between what and what? how can a need be triggered?

-desired state and an actual state -internal stimuli (hunger or thirst) or external stimuli (chatting with a friend might get you thinking about buying a car)

list the social criticisms of marketing (other business)

1. acquisition of competitors 2. marketing practices that create barriers to entry 3. unfair competitive marketing practices

what are some things a company can do to promote ethics and social responsibility?

1. code of business conduct 2. eastman business conduct helpline and website

list the social criticisms of marketing (society as a whole)

1. false wants and too much materialism 2. too few social goods 3. cultural pollution

list the social criticisms of marketing (individual consumers)

1. high prices 2. deceptive practices 3. high-pressure selling 4. shoddy, harmful, unsafe products 5. planned and perceived obsolescence 6. poor service to disadvantaged consumers

what is the BBB & what are the two parts?

Buyer's Black Box -1.) buyer's characteristics -2.) buyer's decision process

what is the role of CRM?

CRM integrates everything that a company's sakes, service, and marketing teams know about individual customers, providing a 360-degree view of the customer relationship

define perception and the three processes

Perception- selecting, organizing, and interpreting information to product meaning -1.) Selective Exposure- an individual selects which inputs, usually relating to strongest needs, will reach awareness -2.) Selective Distortion- changing or twisting received information, occurs when a person receives information inconsistent with personal feelings or beliefs -3.) Selective Retention- remembering information inputs that support personal feelings and beliefs and forgetting inputs that do not

Does Dunkin' want to be Starbucks? Read First Stop on page 171. Do they have different target markets (describe)? Different positions (describe)? Which as the larger market share?

Some years back, Dunkin' paid dozens of faithful customers in cities around the country $100 a week to buy coffee at Starbucks instead. At the same time, the coffee chain paid Starbucks customers to make the opposite switch. When it later debriefed the two groups, Dunkin' says it found them so polarized that company researchers dubbed them "tribes," each of which loathed the very things that made the other tribe loyal to their coffee shop. Dunkin' fans viewed Starbucks as pretentious and trendy, whereas Starbucks loyalists saw Dunkin' as plain and unoriginal. "I don't get it," one Dunkin' regular told researchers after visiting Starbucks. "If I want to sit on a couch, I stay at home." Dunkin' has rapidly expanded into a national coffee powerhouse, on par with Starbucks, the nation's largest coffee chain. But the research confirmed a simple fact: Dunkin' is not Starbucks. In fact, it doesn't want to be. To prosper, Dunkin' must have its own clear vision of just which customers it wants to serve and how. Dunkin' and Starbucks target very different customers who want very different things from their favorite coffee shops. Starbucks is strongly positioned as a sort of high-brow "third place"—outside the home and office—featuring couches, eclectic music, and art-splashed walls. Dunkin' has a decidedly more low-brow, "everyman" kind of appeal. The Dunkin' research showed that its brand fans were largely bewildered and turned off by the atmosphere at Starbucks. They groused that crowds of laptop users made it difficult to find a seat. They didn't like Starbucks's "tall," "grande," and "venti" lingo for small, medium, and large coffees. And they couldn't understand why anyone would pay so much for a cup of coffee. "It was almost as though they were a group of Martians talking about a group of Earthlings," says an executive from Dunkin's advertising agency. The Starbucks customers that Dunkin' paid to switch were equally uneasy in Dunkin' shops. "The Starbucks people couldn't bear that they weren't special anymore," says the ad executive. Such opposing opinions aren't surprising, given the differences in the two stores' customers. Dunkin's customers include more middle-income blue- and white-collar workers across all age, race, and income demographics. By contrast, Starbucks targets a higher-income, more professional group. But Dunkin' researchers concluded that it was more the ideal, rather than income, that set the two tribes apart: Dunkin's tribe members want to be part of a crowd, whereas members of the Starbucks tribe want to stand out as individuals. "You could open a Dunkin' Donuts right next to Starbucks and get two completely different types of consumers," says one retailing expert. Dunkin' built its positioning on serving simple fare at reasonable prices to working-class customers. It gained a reputation as a morning pit stop where everyday folks could get their daily donut and caffeine fix. But to broaden its appeal and fuel expansion, the chain began been moving upscale a bit. It spiffed up its stores and added new menu items, such as lattes, smoothies, peach and caramel flavor coffee shots, and non-breakfast items like a steak wrap and chicken bacon afternoon sandwich. Dunkin' also made dozens of store and atmosphere redesign changes, big and small, ranging from adding free Wi-Fi, digital menu boards, and more electrical outlets for laptops and smartphones to playing relaxing background music. And it let Dunkin' franchisees redecorate their stores in any of four Starbucks-esque color schemes, including "Dark Roast," "Cappuccino Blend," and "Jazz Brew." By: Brett Farmer As it inched upscale, however, Dunkin' tried not to alienate its traditional customer base. There were no couches in the remodeled stores. Dunkin' even renamed a new hot sandwich a "stuffed melt" after customers complained that calling it a "panini" was too fancy; it then dropped it altogether when faithful customers thought it was too messy. "We're walking [a fine] line," said the chain's vice president of consumer insights at the time. "The thing about the Dunkin' tribe is, they see through the hype." Dunkin' targets the "Dunkin' tribe"—not the Starbucks coffee snob but the average Joe. Fastgrowing Dunkin' isn't like competitor Starbucks; it doesn't want to be. Over the past several years, both Dunkin' and Starbucks have grown rapidly, each targeting its own tribe of customers and riding the wave of America's growing thirst for coffee. Although still smaller than Starbucks—which captures a 40 percent U.S. market share versus Dunkin's roughly 22 percent share—Dunkin' is currently the nation's fastest-growing snack and coffee chain. It hopes that continued repositioning and upgrades will help keep that momentum going. Signaling its shifting positioning, Dunkin' recently announced that it would drop the Donuts from its former Dunkin' Donuts name. "Just call us Dunkin'," says the chain. Dunkin' plans eventually to double its number of stores from the current about 9,000 locations to 18,000 (compared with Starbucks's 14,000 U.S. outlets). However, in pursuing growth, Dunkin' must stay true to the needs and preferences of the Dunkin' tribe. Dunkin' is "not going after the Starbucks coffee snob," says one analyst, it's "going after the average Joe." In fact, after recent surveys showed that Dunkin customers thought that its menu and operations were getting too complicated, and maybe a little too pretentious, the company announced a new wave of menu and location redesign decisions. The aim is to take the brand back to the basics, giving core customers what they want without many frills. Dunkin' now says simply that it wants to be an "on-the-go, beverage-led brand and a coffee leader." It's streamlining its menu—phasing out items such as smoothies, flavored coffee shots, bagel and flatbread options, and a wide array of baked goods and afternoon sandwiches. Dunkin' is even simplifying its bloated donut selection, from about 30 varieties to the 18 "core donuts" that its best customers like best. The refined positioning emphasizes beverages (an expanded coffee selection), speed and convenience (adding drive-throughs, Grab & Go sections, and on-the-go ordering through its mobile app), and value ("half the price" of more upscale chains). Dunkin's targeting and positioning are pretty well summed up in its long-running ad slogan "America Runs on Dunkin'." The brand remains committed to keep America running with its great coffee, donuts and other edibles, simple but friendly environment, and solid value. According to Dunkin's chief marketer, Dunkin' remains a place where, "everyday folks who keep America running keep themselves running every day." By: Brett Farmer So far, so good. For the past 11 years, Dunkin' has topped the coffee category in a leading customer loyalty and engagement survey, ahead of number two Starbucks. According to the survey, Dunkin' has been the top brand for consistently meeting or exceeding customer expectations with respect to taste, quality, and customer service. Nothing too fancy—just meeting the everyday needs of the Dunkin' tribe.

Read Starbucks: Serving the Underserved (pg 504). Why and how was Magic Johnson involved?

Starbucks: Serving the Underserved—Doing Good and Doing Well Starbucks has long been famous for its pricey premium coffee and upscale "Starbucks Experience," targeted largely toward well-off professionals. Some 83 percent of Starbucks's U.S. stores are located in predominately white middle-class or higher-than-middle-class communities. There's been a distinct underrepresentation of Starbucks stores in the nation's lowest income areas populated by minorities. In recent years, however, Starbucks has been experimenting with stores in such underserved communities. In part, this initiative stems from Starbucks's long-held social responsibility mission. But beyond doing good, Starbucks believes that such stores also provide good opportunities for growth and profits. Starbucks's move into underserved communities began in the mid-1990s when the company hooked up with retired Los Angeles Lakers basketball superstar Earvin "Magic" Johnson. Johnson was on a mission to take big business into depressed urban areas. More than just a philanthropic attempt to "give back," Johnson saw genuine marketing opportunities in inner-city "commerce deserts" largely ignored by big brands. He started with a few Pepsi bottling plants and then expanded into shopping centers and movie theater complexes. Johnson soon found a kindred spirit in Starbucks founder and executive chairman Howard Schultz. "I said, 'Look Howard, Latinos and black folks. We like coffee too,'" Johnson later revealed. After seeing the success of Johnson's urban theaters, Schultz agreed that putting Starbucks in underserved low-income communities made good business sense. The two struck a deal for a 50-50 Starbucks-Johnson venture to build Starbucks shops in urban neighborhoods. Targeting urban consumers required adapting the Starbucks model, everything from the menu to the music. "I had to take the scones out of my Starbucks and put in things like sweet potato pie and sock-it-to-me cake," Johnson said. Over the next 12 years, Starbucks built 105 Magic Johnson Enterprises stores. The stores were an unqualified success. When Johnson liquidated his business holdings a few years ago, Starbucks paid handsomely for full ownership of all 105 stores. The Starbucks-Johnson stores were no big stretch for Starbucks. From its earliest days, the chain maintained a strong corporate culture of social responsibility. Schultz saw "doing good" as an essential prerequisite to "doing well." There is a great need "to achieve the fragile balance between profit, social impact, and a moral obligation," said Schultz. Companies must "enhance the lives of our employees and the communities we serve." And the best way to have strong social impact is to achieve strong financial performance. To further serve the underserved, Starbucks recently committed to opening 15 "community stores" in low-income urban areas such as East Baltimore; the Jamaica neighborhood of Queens, New York; and Englewood on Chicago's Southside. The Starbucks Community Store initiative began after the 2014 riots in Ferguson, Missouri, part of greater metropolitan St. Louis. Schultz led a team of Starbucks executives on a tour of Ferguson, an urban community with a population that is 70 percent African-American, where 22 percent of residents live below the poverty line and unemployment among young black males nears 50 percent. Schultz told the executives, "We're absent from this community ... but we have a responsibility and an opportunity to be here." Opening a store in Ferguson made sense from a social responsibility perspective. But from a business point of view, most analysts were skeptical. They viewed Ferguson as an urban economic dead zone. The riots had only made things worse, leaving behind 37 damaged businesses, 17 of which were completely destroyed. Increasing the risk, Starbucks met with substantial resistance locally. "Many people told us, 'You do not have a role here,'" says Starbucks's global responsibility chief. As it turned out, the Ferguson store was among the top performers of the hundreds of new stores opened by Starbucks that year, and it had 15 percent sales growth in the second year. Today, Starbucks considers the Ferguson store "a blueprint for the future" of its community stores. How has a store that most businesses would never have opened been successful? A visit to the store tells the story. On the wall hangs a framed photo of a yard sign that reads, "WE LOVE ALL OF FERGUSON." A homeless woman who routinely parks her shopping cart outside sleeps at a table. Diedric Cook—a 21-year-old barista who was living out of his car before being hired a year ago—places a cup of tea on her table for when she wakes up. Around lunchtime, a dozen men and women gather in the shop's designated community room for a free job-skills training class led by members of the Urban League. The room serves as a community center, hosting job fairs, school board meetings, and poetry readings. Young, green apron-clad employees combine bright and hopeful personalities with hard knowledge of life on the street, creating an environment where they interact naturally among themselves and with customers. Although employees in the Ferguson store appear carefree, a deeper look reveals how they struggle to keep things together. Cordell Lewis—the tattooed, mohawk-shorn manager who was recruited from the video game store across the street—will tell you that Cook isn't the only employee who's lived out of his car. Lewis himself had done that as a child. Referring to another young employee who had slept in her car in a Walmart parking lot the night before, Lewis says, "How am I ever going to get on that person and say, 'You're late, you're not in dress code'?" He continues, "If [such employees] were in a bad spot I would take care of it. Starbucks would take care of it." Ironically, the situations that render these employees "unemployable" to most other companies are key ingredients in the mix that makes inner-city Starbucks locations work. "Seeing your manager care about you that much makes it where you like coming to work," Cook points out. "He's like a dad around here," says another employee of Lewis. "This is our home away from home." That kind of employee commitment creates a place where local customers also feel at home. By being one of the first to set up shop in underserved communities, Starbucks has inspired other businesses to follow suit. Since it opened the Ferguson store, 41 other new businesses have opened there, creating a vibrant economic center. "When one person steps out from the crowd, others will follow," says a local city council member. "Starbucks said, 'We are going to Ferguson. We are going to help this community recover.' Once Starbucks stepped out of the crowd, everybody began to follow." Fifteen Starbucks community stores hardly make a dent in the massive network of Starbucks locations in well-heeled communities around the world. Nor do 105 former Magic Johnson shops. But it's a start. And Starbucks's rapid expansion has led to saturation in many markets. If the company wants to continue growing, it must find new pockets of opportunity. As it ponders where to place the 10,000 new stores it plans to open in the next five years, Starbucks's community store successes suggest that it can both do good and do well by serving underserved communities. Says the manager of the new community store in the Bedford- Stuyvesant area of Brooklyn, New York, "There's a bigger purpose here than just coffee."

cognitive dissonance

a buyer's doubts shortly after a purchase about whether the decision was the right one

belief

a descriptive thought that a person holds about something

subculture

a group of people with shared systems based on common life experiences and situations

reference group

a group the serves as direct or indirect point of comparison or reference in forming a person's attitudes or behaviors

opinion leader

a person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others

sample

a segment of the population selected to represent the population as a whole

probability sample

a technique in which every element in the population being studied has a known chance of being selected

nonprobability sample

a technique in which there is no way to calculate the likelihood that a specific element of the population will be chosen

differentiation

actually differentiating the market offering to create superior customer value

subliminal advertising

advertising in which the consumer doesn't realize they are being affected by an ad

consumer market

all the individuals and households that buy or acquire goods and services for personal consumption

competitive advantage

an advantage over competitors gained by offering greater customer value, either by having lower prices or providing more benefits that justify higher prices

attitude (and its parts)

an individual's enduring evaluation of feelings about and behavioral tendencies toward an object or idea -1.) cognition- beliefs, knowledge, information -2.) affect- feelings, emotions -3.) behavior- intentions

consumerism

an organized movement of citizens and government agencies designed to improve the rights and power of buyers in relation to sellers

environmentalism

an organized movement of concerned citizens, businesses, and government agencies designed to protect and improve people's current and future living environment

positioning

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

define artificial intelligence. is it a bigger deal than fire or electricity?

artificial intelligence is technology by which machines think and learn in a way that looks and feels human but with a lot more analytical capacity Despite all these remarkable applications, AI is still in its early stages. "We're still in the dawn of AI adoption," says a technology expert. "It's a new frontier and one that will redefine the relationship between consumers and brands." As an industry, AI will skyrocket from current annual revenues of $650 million to nearly $40 billion by 2025. And that doesn't include the trillions of dollars' worth of retail sales that AI will facilitate. "AI is going to be like electricity or the internet," says the Lowe's technology manager. "It becomes so interwoven . . . it takes all of this other stuff that we've been doing for so long and it makes it better than the sum of its parts." Google's CEO puts it more simply: "It's more profound than fire or electricity."

in post-purchase, why is cognitive dissonance a concern?

because customer satisfaction is key to building profitable relationships with customers

derived demand

business demand that comes from the demand for consumer goods

new task

buyer purchases a product or service for the first time

straight rebuy

buyer routinely reorders something without any modifications

modified rebuy

buyer wants to modify product specifications, prices, terms, or suppliers

business buyer behavior

the buying behavior of organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others

are ethics and social responsibility the same?

dealing with issues of ethics and social responsibility, in an open and forthright way, helps to build and maintain strong customer relationships based on honesty and trust. as with environmentalism, the issue of ethics presents special challenges for international marketers. business standards and practices vary a great deal from one country to the next

market segmentation

dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes

influencer marketing

enlisting established influencers or creating new influencers to spread the word about a company's brands

market targeting

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

are there more buyers in this market than the consumer market? are they larger or smaller?

fewer, but larger buyers

what is a code of conduct? does msu have one? what are its 3 most common violations?

formalized rules and standards that describe what the company expects of its employees--- msu does have one, its the student honor code. common violations include 1. cheating . 2. plagiarism . 3. academic fraud

define mis; what are the 3 key words?

marketing information system consists of people and procedures to assess information needs, develop the needed information, and help decision makers use the information to generate and validate actionable customer and market insights. 3 words: assess, develop, use

sustainable marketing

meeting present needs while preserving the ability of future generations to meet their needs sustainable marketing requires consumers, companies, public policy makers, and others to work together; it also calls for socially and environmentally responsible actions

is it easy to gain consumer insights? how do we do it and why?

no, it is tricky. For example, when a company such as 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.

what are the two camps?

qualitative and quantitative

social class

relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors

compare traditional sellers' rights to traditional buyers' rights

sellers: -1.) the right to introduce any product in any size and style provided it is no hazardous to personal health or safety or if it is to include proper warnings and controls -2.) the right to charge any price for the product provided no discrimination exists among similar kinds of buyers -3.) the right to spend any amount to promote the product provided it is not defined as unfair competition -4.) the right to use any product message providing it is not misleading or dishonest in content or execution -5.) the right to use buying incentive programs provided they are not unfair or misleading buyers: -1.) the right not to buy a product that is offered for sale -2.) the right to expect the product to be safe -3.) the right to expect the product to perform as claimed

marketing analytics

the analysis tools, technologies, and processes by which marketers dig out meaningful patterns in big data to gain customer insights and gauge marketing performance

consumer buyer behavior

the buying behavior of final consumers-individuals and households that buy goods and services for personal consumption

in figure 16.2, which 2 approaches fall under "today: greening" and which under "tomorrow beyond greening"

today: greening: -1.) internal- pollution prevention -2.) external- product stewardship tomorrow: beyond greening: -1.) internal- new clean technology -2.) external- sustainability vision

what is the quickest route to adoption?

trial

Unilever

unilever is committed to making sustainable living commonplace and our logo is a visual expression of that commitment. each icon has a rich meaning at its core, and represents some aspect of our effort to make sustainable living commonplace.

planned obsolence

when a company causes its products to become obsolete before they need replacement

are apple, coke, nike, and microsoft listed in the top 100 best corporate citizens for 2019?

yes

is a convenience sample a type of NONprobability sample?

yes

is a random sample a type of probability sample?

yes

is stimulus generalization part of learning? what were our examples?

yes, examples are Ritz and Arm & Hammer

figure 5.1. is it a S-R model? what does S-R mean?

yes, it is an S-R model (Stimuli---BBB---Response)