Marketing Management Exam 1
marketing research process
1). Define the problem 2). Develop research plan 3). Collect information 4). Analyze information 5). Present findings 6). Make decision
Major Forces in the Environment
1). Demographic 2). Economic 3). Socio-Cultural 4). Natural 5). Technological 6). Political-Legal
marketing plan components
1). Executive Summary 2). Table of Contents 3). Situation Analysis 4). Marketing Strategy 5). Financial Projections 6). Implementation Controls
5 types of general strategies
1). Financial 2). Market Share 3). Product/Service 4). Brand 5). Customer
6 Major Competitive Spheres
1). Industry 2). Products 3). Competence 4). Market Segment 5). Vertical Channels 6). Geographic
Product/Service Strategies
1). Innovation Focus 2). Responsiveness 3). Low Cost 4). Quality Attributes 5). Custom Applications
3 parts of strategic planning
1). Planning 2). Implementing 3). Controlling
How we can measure market demand
1). Potential market 2). Available market 3). Target market 4). Penetrated market
3 types of marketing channels
1). communications channel 2). distribution channel 3). services channel
3 types of market opportunities
1). new market segment 2). go-to-market approach 3). differentiating functionality
internal records
1). order-to-payment cycle 2). sales information system 3). databases, warehousing, data mining
2 options in a nonexpandable market
1). primary demand 2). selective demand
research instruments
1). questionnaires 2). qualitative techniques 3). technological devices
types of marketing research firms
1). syndicated 2). custom 3). specialty-line
5x5 Questions for Mission Statement
1). who are we? 2). who are our customers? 3). what is our operating philosophy? 4). what is our competitive advantage? 5). what are our responsibilities with our society? (corporate social responsibility)
Cost Leadership (Porter Generic Strategy)
the market opportunity is a go to market approach and we are looking to "profit by delivering products and services at lower cost" (financial strategy)
Differentiation
the market opportunity is a go to market approach and we are looking to "profit by delivering value in new ways that customers will pay for" (financial strategy)
retention
the market opportunity is a go to market approach and we are looking to "retain customers by leveraging CRM to capture preferences" (customer strategies)
acquisition
the market opportunity is a new market segment and we are looking to "acquire customers from new markets with unmet needs" (customer strategies)
Brand Awareness
the market opportunity is a new market segment and we are looking to "build brand by increasing awareness" (brand strategies)
Perceived Quality
the market opportunity is a new market segment and we are looking to "build brand by increasing perceived quality" (brand strategies)
Innovation Focus
the market opportunity is a new market segment and we are looking to "emphasize strong R&D to capture new market segment" (product/service strategy)
Market development (ansoff growth strategy)
the market opportunity is a new market segment and we are looking to "grow market share by selling existing products and services into new markets, such as new geographies" (market share strategy)
revenue per customer
the market opportunity is a new market segment and we are looking to "grow revenue per customer by expanding into new areas" (customer strategies)
Low Cost
the market opportunity is a new market segment and we are looking to "leverage low-cost production advantages to target price-sensitive segment" (product/service strategy)
Differentiation (Porter's generic strategies)
the market opportunity is a new market segment and we are looking to "profit in new markets with high-priced, differentiated products" (financial strategy)
Cost Leadership
the market opportunity is a new market segment and we are looking to gain "profit in new markets by leverage competitive advantages in costs" (financial strategy)
Other Proprietary Brand Assets (Aaker Brand strategies)
the market opportunity is differentiating functionality and we are looking to "build brand by leveraging assets to make it stand out from pack" (brand strategies)
Brand Loyalty (Aaker Brand Strategy)
the market opportunity is differentiating functionality and we are looking to "build brand by reinforcing elements responsible for brand loyality" (brand strategies)
Innovation Focus
the market opportunity is differentiating functionality and we are looking to "emphasize strong R&D to target early adopters of new technologies" (product/service strategy)
retention
the market opportunity is differentiating functionality and we are looking to "retain customers by providing top service to top customers" (customer strategies)
Quality Attributes
the market opportunity is differentiating functionality and we are looking to "target users who demand extreme quality, reliability, or durability" (product/service strategy)
Market Opportunities
the market overview, market segments, and competitive landscape influence this
Semantic differential
this is a questionnaire question that was designed to measure the connotative meaning of concepts; the respondent is asked to choose where his or her position lies, on a scale between two bipolar adjectives (for example: "Adequate-Inadequate", "Good-Evil")
likert scale
this is a questionnaire question that you can answer whether or not you agree on a scale (1 to 5 I think?)
Completely unstructured
this is a questionnaire question that??
Sentence Completion
this is a questionnaire question that??
Story Completion
this is a questionnaire question where respondents complete an incomplete story.
Rating scale
this is a questionnaire question where responses are graded on a continuum (example : rate the appearance of the product on a scale from 1 to 10, with 10 being the most preferred appearance). Examples of types of scales include the Likert scale, semantic differential scale, and rank-order scale
Word association
this is a questionnaire question where words are presented and the respondent mentions the first word that comes to mind
marketing intelligence system
this is a set of procedures and sources that managers use to obtain everyday information about developments in the marketing environment
available market
this is based on interest AND purchasing power/access to your products; ex: minors wanting alcohol are excluded since they don't have access
trend
this is discovered when you see a sequence of events, has momentum, durability, and direction (ex: organic food)
demand
this is having the money/ability to pay for your want (ex: I have the $1.50 for the Coca-Cola I want)
marketing information system
this consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers
brand loyalty
this helps brand extensions and creates good WOM (word of mouth), and decreases the cost of sales
customer objectives
this includes best customer service, best warranty, best customer relationship management, increase customer purchase frequency, etc)
multiple-factor index
this includes calculating the BDI (brand development index) which = [(a) percent of U.S. brand / (b) percent of U.S. category] x 100.
service channel
this includes customer service, extra features after purchase, etc
penetration
this includes existing products and existing consumers only (the ones being served by the industry); this can include stealing competitors' customers or the innovative use of existing products and increase purchase frequency
needs
this includes food, water, shelter
financial objectives
this includes higher profit, higher sales, higher debt, etc
distribution channel
this includes physical stores, only web, deliver at home, download
communications channel
this includes promotion, newspapers, PR, advertising, website
market share objectives
this includes reaching a certain portion of the market, etc
branding
this includes the head, heart and spirit (new identification for today)
product/service objectives
this includes to be the top 5 most innovative companies, top 5 services for customers
brand objectives
this includes to create brand recall, awareness, loyalty, mental association with brand, etc
customer groups
this is a dimension that defines a business that includes B2B and B2C
technology
this is a dimension that defines a business that includes iphones, tv, etc.
customer needs
this is a dimension that defines a business that includes service, product, customization, etc
strategy
this is a game plan: 1). conduct internal/external analysis (strengths/weaknesses) 2). choose a couple opportunities 3). write mission - write objectives/goals
megatrend
this is a large social, cultural, political, economical, and forms slowly at first; it influences and shapes society for a long time (7-10years), "extended trend," ex: mini tech stuff, social media, smartphones
wants
this is a need in a specific direction (ex: I want a Coca-Cola for thirst)
Importance scale
this is a questionnaire question that respondents are usually asked to rate the importance of a particular issue, on a rating scale of 1-5
strategy
this is how we are going to be unique, how we are going to sustain this overtime, etc
recognition
this is like a multiple choice question where you are prompted with a brand and you remember it
recall
this is like an essay where you can remember without prompting
fad
this is like fashion, it comes and goes
Intention to buy scale
this is a questionnaire question that uses a mathematical technique to convert stated purchase intentions into purchase probabilities; a survey might ask a question using a five-point scale
intelligence activities
this is part of MIS (marketing information system) and includes opinions, feedback, articles, secondary articles, supplier reviews, trends, blogs, etc)
product/service development
this is related to a new product and existing markets
market development
this is related to existing products, but new customers
marketing plan
this is the central instrument for directing and coordinating the marketing effort; it operates at a strategic and tactical level
target market
this is the market you decide to pursue
potential market
this is the number of people with enough level of interest for your product; ex: minors wanting alcohol would be included here
perceived quality
this is the quality in the mind of the consumer; this directly influences purchases and makes it easier to do brand extensions
corporate culture
this is the shared experiences, stories, beliefs, and norms that characterize an organization
marketing research
this is the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company
order-to-payment cycle
this is useful for inventory and is the time it takes to make the order and receive payment
marketing intelligence
this is very qualitative; includes gossip, trends, consumer/expert opinions; use this to monitor external environment
value proposition
this is what makes your product different/better than competition
new market segments
this market opportunity can include not being satisfied with current options
implementation controls
this part of the marketing plan controls is in the controlling column of strategic planning and includes calling customers using a survey, calling suppliers a year after asking how are we doing, reviewing cost monthly, etc
income distribution
this tells you how much luxury vs. commodities are needed
secret need
What is this? "I would like my friends to see me as a clever consumer"
Not a strategy
What is true about this statement: "my strategy is to internationalize"
a surplus
When considering that price is what you pay, value is what you get; we need to make them feel like the consumer is getting ________.
society
who influences needs
sampling unit
who is to be surveyed
CEOs
who often develops corporate culture; they develop connected employees
economy, technology, demographic, etc
why might there be two different market demands? (consider major forces of the environment, or greater market sensitivity)
different ways
within the same need, some people have __________ to satisfy those needs
blind
you should be doing environmental and internal analysis everyday and continually research; without this you are _________
10
your company needs to be in the top what search results on Google
Strengths, Weaknesses, Opportunities, and Threats Chart (SWOT)
What does conducting a situation analysis entail?
potential or available market
most demand forecasting looks at what two markets?
target market
segments we are interested in because they're "close to our philosophy/mission"
segments
these are groups of homogeneous (similar) people
3 Customer Strategies
1). Customer Acquisition 2). Customer Retention 3). Customer Revenue Growth
3 Dimensions that Define a Business
1). Customer Groups 2). Customer Needs 3). Technology
total market potential
calculations: - multiple potential number of buyers by average quantity each purchases times price - chain-ratio method
benefits
"Customers do not inherently want to buy products. Products cost money and, for corporate buyers, reduce profits. Customers buy products for the __________ that the product features provide." - Russell S. Winer
Google Philosophy
"Never settle for the best." 1). Focus on the user and all else will follow 2). It's best to do one thing really, really well 3). Fast is better than slow 4). Democracy on the Web works 5). You don't need to be at your desk to need an answer 6). You can make money without doing evil 7). There is always more information out there 8). The need for information crosses all borders 9). You can be serious without a suit 10). Great just isn't good enough
Warren Buffet
"Price is what you pay, value is what you get."
Google Mission
"To organize the world's information and make it universally accessible and useful."
data
"torture the ____ to make it talk"
market
(general) - economic conditions - industry changes - available markets - customer preferences
quality attributes
(product/service strategies) best quality, reliability, safety, best durability
innovation focus
(product/service strategies) big R&D investment
low cost
(product/service strategies) cheap
custom applications
(product/service strategies) make product personalizable
responsiveness
(product/service strategies) speed over innovation, fastest to introduce something
competition
(related to competitors) - products - marketshare - customer preferences
internal
(related to firm) - performance summary - income statement - product contribution
Income Distribution
(within the economic force in the environment) - subsistence economies - raw-material-exporting companies - industrializing economies - industrial economies
if the world were a village of 100 people
- 61 villagers would be Asian, 14 African, 11 European, 8 Latin/South American, 5 North American, 1 from Australia/Oceania/Antarctica - 18 villagers would be unable to read or write, but 33 would have cellular phones and 16 would be online on the Internet - 18 villagers would be under 10 years of age, 11 would be over 60, equal males and females - 18 cars in the village - 63 villagers would have inadequate sanitation - 32 would be Christians, 20 Muslims, 14 Hindus, 6 Buddhists, 16 non-religious, and the remaining 12 would be members of other religions
planning process
- Conduct Situation Analysis (SWOT) - Establish mission - Establish goals and objectives - Design strategy - Write a plan
Planning stage of strategic planning
- Corporate planning - Division planning - Business planning - Product planning
Designing Strategies
- First determine objective and market opportunities - Then develop a strategy - Then go on to the Marketing Mix
Technological Devices
- Galvanometers - Tachistoscope - Eye cameras - Audiometers - GPS
Controlling stage of strategic planning
- Measuring results - Diagnosing results - Taking corrective action
Goal Formulation and MBO
- Objectives must be hierarchial - Objectives should be quantitative, in measurable terms - They should specify a clear time frame - Goals should be challenging but realistic - Objectives must be consistent with each other
Implementing stage of strategic planning
- Organizing - Implementing
Characteristics of Good Marketing Research
- Scientific Method - Research Creativity - Multiple Methods - Interdependence - Value and cost of information - Healthy skepticism - Ethical marketing
Political-legal force in the environment
- business legislation - growth of special interest groups
Step 1: Define the Problem
- define the problem - specify decision alternatives - state research objectives (marketing research process)
questionnaire question types
- dichotomous - multiple choice - likert scale - semantic differential - importance scale - rating scale - intention to buy scale - completely unstructured - word association - sentence completion - story completion
fad, trend, and megatrend
categorize trend, megatrend, and fad
questionnaires
- ensure questions are free of bias - make questions simple - make questions specific - avoid jargon - avoid sophisticated words - avoid ambiguous words - avoid negatives - avoid hypotheticals - avoid words that could be misheard - use response brands - use mutually exclusive categories - allow for "other" in fixed response questions
Good mission statements
- focus on a limited number of goals - stress major policies and values - define major competitive spheres - take a long-term view - short, memorable, meaningful
Collecting marketing intellgence on the Internet
- independent customer goods and service review forums - distributor or sales agent feedback sites - combination sites offering customer reviews and expert opinions - customer complaint sites - public blogs
What a CMO needs
- intuition vs. data-based decisions (using data mining, more quantitative skills) - decision-making under risk (balistic marketing) - adaptability (technology changes in general) - creative thinking ("think outside the box") - social skills / teamwork - leadership skills
area market potential
- market buildup - multiple-factor index
Vocabulary for Demand Measurement
- market demand - market forecast - market potential - company demand - company sales forecast - company sales potential
Research approaches
- observational and ethnographic - focus group - survey - behavioral - experimental
Technological force in the environment
- pace of change - opportunities for innovation - varying R&D budgets - Increased regulation of change
Demographic force in the environment
- population growth - population age mix - ethnic markets - educational groups - household patterns
tactical levels of a marketing plan
- product features - promotion - merchandising - pricing - sales channels - service
Step 2: Develop the Research Plan
- sampling plan - contact methods (marketing research step)
Sampling plan
- sampling unit: who is to be surveyed? - sample size: how many people should be surveyed? - sampling procedure: how should the respondents be chosen?
Natural force in the environment
- shortage of raw materials - increased energy costs - anti-pollution pressures - governmental protections
estimating future demand
- survey of buyers' intentions - composite of sales force opinions - expert opinion - past-sales analysis - market-test method
strategic levels of a marketing plan
- target marketing decisions - value proposition - analysis of marketing opportunities
estimating current demand
- total market revenue - area market potential
Steps to Quality Marketing Intelligence
- train sales force to scan for new developments - motivate channel members to share intelligence - hire external experts to collect intelligence - network externally - utilize a customer advisory panel - utilize government data sources - purchase information
Socio-cultural force in the environment
- views of themselves - views of others - views of organizations - views of society - views of nature - views of the universe
information needs probes
- what decisions do you regularly make? - what information do you need to make these decisions? - what information do you regularly get? - what studies do you periodically request? - what information would you want that you are not getting now? - what are the four most helpful improvements that could be made in the present marketing information system?
Qualitative techniques
- word associations - visualization - projective techniques - brand personification - laddering
product orientation vs. market orientation
1). "we run a railroad" vs. "we are a people-and-goods mover" 2). "we make copying equipment" vs. "we improve office productivity" 3). "we sell gasoline" vs. "we supply energy" 4). "we make movies" vs. "we entertain people"
Economic force in the environment
1). Consumer Psychology 2). Income Distribution 3). Income, Savings, Debt, Credit
3 Phases of Value Creation and Delivery
1). Creating/Choosing the value (product management) 2). Communicating the value (branding) 3). Delivering the value (customer management)
market saturation
100% penetration
market-buildup
51 Industry sector (information) 513 Industry subsector (broadcasting and telecommunications) 5133 Industry group (telecommunications) 51332 Industry (wireless telecommunications carriers, except satellite) 513321 National Industry (U.S. paging)
needs turn into wants and wants turn into demands
categorize wants, needs, and demands
familiar brands
9 out of 10 times these are chosen before generic or unfamiliar brands
industry marketing expenditure on x and market demand (potential, forecast, minimum) on y
What is on the x and y-axis of the marketing demand as a function of industry marketing expenditure graph?
Brand development index
BDI stands for...
Aaker Brand Strategies
Brand Strategy?
Creating Communicating and Delivering Value to a Target Market at a Profit
CCD-VTP
CCD-VTP
What is the acronym that Dr. Gonzalez learned when he was in school regarding Marketing?
Double Income No Kids
DINKS stand for...
unstated need
What is this? "I expect a good schedule and no delays"
Porter Generic Strategies
Financial Strategy?
C + I + G + (X-IM)
GDP equation =
hierarchial, measurable, time frame, realistic, and consistent
Goal Formulation and MBO: - objectives must be _______ - objectives should be ________, in measurable terms - they should specify a clear _________ - goals should be challenging but _________ - objectives must be _________ with each other
market potential is higher in prosperity and lower in recession
How is the market potential different when the economy is in prosperity versus when the economy is in a recession?
acculteration
I want to adapt and be like wherever I am and I will tend to act the same way as others
development is existing markets and diversification is new markets
In the Market Share (growth) strategies, what is the difference between the Product/Service Development or Diversification strategy?
real need
What is this? "I need to fly from A to B for a low fare"
advantage
It's one thing to spot stengths/weaknesses or opportunities, but it's another thing to take __________ of this.
stated need
What is this? "I want a cheap flight!"
Ansoff Growth Strategies
Market Share Strategy?
delight need
What is this? "I would like comfort seats and appetizers"
price
On the vertical line diagram from the presentation, what is between value and cost?
inverse relationship
Price and Market Demand have what? ; the higher the price, the lower the demand (economist's understanding)
segmenting, targeting, and positioning
STP stands for...
Market potential, Market forecast, Market minimum
What are the three marketing demands (highest to lowest) that are shown on the y-axis of the marketing demand as a function of industry marketing expenditure graph?
multiple choice
This is a questionnaire question with a list of options to choose from
dichotomous
This is a yes or no questionnaire questions.
Create
_______ a tangible product or a service with tangible features, create an offering (product management); this includes the product, advertising, 800 number inside, etc
Deliver
_________ the value through customer management
Communicate
__________ the value to customers (branding); can be slogan, logo, advertising, packaging; "branding is a promise"
tactical
always consider whether or not the _________ aspects of a marketing plan fit your strategy
branding
communicating the value
sensitivity of demand and market share
companies care about what two things?
sales quotas and sales budget
companies use their sales demand to define what two things?
sales budget
conservative budget of where we'll actually be
70%
consumers are ____ of GDP
Product Management
creating/choosing the value
new breed of consumers
crisis changes the way consumers see and live in society which equals what?
relationship
customer management is no longer about having a database, it's having a ____________ with your customer; remember that they have families and other interests (we cannot trick customers anymore)
brands
customers today are choosing _______ that share their personality and passion for the sport/event/interest/anything/etc
customer management
delivering the value
primary demand
demand coming from 1st time users (option 1 is a nonexpandable market)
sensitivity of demand
difference between market potential and market minimum
need
every consumer's _______ is satsified differently
sales pitch
everything in life is a __________
effects
everything is a combination of what
consumer
everything starts and ends with the _________ in marketing
total market potential calculation
ex: demand for the new light beer = (population) x (personal discretionary income per capita, PDIPC) x (average % of PDIPC spent on food) x (average % of amount spent on food that is spent on beverages) x (average % of amount spent on beverages that is spent on alcoholic beverages) x (average % of amount spent on alcoholic beverages that is spent on beer) x (expected % of amount spent on beer that will be spent on light beer)
rich perspective
go beyond demographics, have a more __________ of a family (ex: DINKS, marital status, single, etc)
penetration rate
how many people in the market have it
sample size
how many people should be surveyed
sampling procedure
how should the respondents be chosen
market potential
if a company is a monopoly (first-movers) then the company sales potential = _______ in the industry graph
bad
if you don't have resources, higher market sensitivity is ____ because you won't hit 100% of the market potential (since you can't afford it) and then you leave that open to the competition to take
dilutes
issuing stock _____ your cost of stock
keep customers
it's cheaper to __________ than to attract new ones!
competition
know your what?
selective demand
made by people who having identified their need and the way they want to satisfy that need, they're checking out the competition; focus on winning a larger market share--concentrate on capturing more penetration
market potential
market demand during specific period of time
marketing channels
market divided into segments, target markets are chosen among segments, and target markets are reached through what?
value proposition
market offering = what?
do not create
marketers ___________ needs
marketing plan
marketing management progresses into a _________
segments
markets are divided into what?
vision
mission = ??
order-to-payment cycle
number of days (time); we care because we need to watch overdistribution or underdistribution
see ourselves and others
religion (especially in a secular society) play a strong role in how we ___________
sales information system
sales=demand; sales can convey a lot of info, but not all (ex: yellow and red mustangs...good sales people might be selling yellow mustangs, but the consumers actually want red mustangs)
because people will have multiple
some markets, even at 100% aren't saturated, why? (ex: TVs, phones, shoes, houses)
5 types of needs
stated: I want a cheap flight real: I need to fly from A to B for a low fare unstated: I expect a good schedule and no delays delight: I would like comfort seats and appetizers secret: I would like my friends to see me as a clever consumer
sales quotas
target, goal to obtain, to reach
sent to the world
the (X-IM) in the GDP equation is what?
consumed by consumers
the C in the GDP equation is what?
consumed by government
the G in the GDP equation is what?
consumed by firms
the I in the GDP equation is what?
controlling
the __________ portion of strategic planning doesn't end until you complete your objectives
teams
the best leaders have the best ________
expandable
the difference between market demand1 and market demand2 is how _________
marketing manager
the job of this person is to continuously identify opportunities and markets
Focus
the market opportunity is a differentiating functionality and we are looking to "profit by catering to unique niche)
Differentiation (Porter Generic Strategy)
the market opportunity is a differentiating functionality and we are looking to "profit by selling unique offerings competitors can't match" (financial strategy)
Product/Service Development or Diversification (Ansoff Growth Strategy)
the market opportunity is a differentiating functionality and we are looking to grow market share by marketing new products and services (market share strategy)
Other Proprietary Brand Assets (Aaker Brand Strategies)
the market opportunity is a go to market approach and we are looking to "build brand by leveraging distribution channel relationships" (brand strategies)
Brand Associations (Aaker Brand Strategy)
the market opportunity is a go to market approach and we are looking to "build brand by reinforcing positive associations" (brand strategies)
Custom Application
the market opportunity is a go to market approach and we are looking to "build products or service in order to cater to customer preferences" (product/service strategy)
Responsiveness
the market opportunity is a go to market approach and we are looking to "continually innovate to keep product or service fresh and engaging" (product/service strategy)
Market penetration (Ansoff Growth Strategy)
the market opportunity is a go to market approach and we are looking to "grow market share by marketing existing products and services to existing customers in new ways" (market share strategy)
revenue per customer
the market opportunity is a go to market approach and we are looking to "grow revenue per customer by adding value-added services" (customer strategies)
familiar brands
these can convey a message of reliability and financial stability with the company and reasonable quality
Objective
the mission and competitive advantage influence the development of this
penetrated market
the people you have, they're already buying your product
religion
the socio-cultural views: views of society, views of nature, views of the universe are fueled by what?
target markets
these are chosen among segments
needs and expectations
we are matching our resources to customer __________ of us
potential objectives
what are all of these? - penetration rate (market share) - revenue - cost to deliver - capital/investment neccessary - number of units - overhead cost
ansoff growth strategy, market penetration
what is this an example of? AT&T- Capture share from competitors using Apple iphone
ansoff growth strategy, product/service development
what is this an example of? Mini- Grow share by offering multiple models to multiple segments
ansoff growth strategy, market development
what is this an example of? Starbucks- grow share through aggressive geographic expansion
market minimum
what you would sell without any marketing expenditure because the product is wanted
