Marketing Midterm 1

What are the "Art and Science" roles of Marketing?

1. Brand building 2. Reputation Mangement 3. Business Growth 4. Creating platforms for strategic advantage

What are the 5Cs?

1. Customer 2. Context 3. Competition 4. Collaboration 5. Company

What are the 5 steps to the Marketing Research Process?

1. Define the problem 2. Design the research plan 3. Collect and Analyze the data 4. Develop findings and recommendations 5. Conduct follow-up

Types of Customer Primary Data

1. Demographics/socioeconomic 2. Psychographic/lifestyle 3. Awareness 4. Attitudes 5. Intention 6. Motivation 7. Behavior - how people make buying decisions

What are the 3 loyalty frameworks?

1. Heart - Emotional 2. Head - Attributes 3. Hand - Habit

GOAL OF MARKET SEGMENTS

1. Identifiable 2. Sizable 3. Stable 4. Accessible 5. Congruent = Target Market

Hofstede's Cultural Dimensions and how can they help in marketing?

1. Power distance 2. Time Orientation 3. Indulgence 4. Masculinity 5. Individualism vs Colectivism 6. Uncertainty Avoidance Helps understand the type of country, local

Types of research data?

1. Secondary vs Primary 2. Exploratory vs Descriptive vs Casual 3. Qualitative vs Quantitative

According to the marketing mix, how many elements are there in total?

7

Exchange

A basic business function that takes place when a person or company satisfies a need by exchanging money for product/services

Why do companies pursue international markets?

Access to raw material Sizable new markets Competitive skills can be developed broad before competitors enter their domestic market

Country Market Adaptation

Addresses the desires, tastes, and needs of a country market Local connection Marketing = complex

Undifferentiated Targeting

All the same marketing tactics

Price

Amount that is charged

What is an "Embargo"

An embargo is a government-imposed restriction on trade, investment, or other economic activity with one or more countries

What is the Net Promotor Score?

Assesses the extent customers will recommend a product, service, or brand NPS = Promotors - Detractors Caution: Scores can go up because detractors are leaving, customer base shrinks

Why does customer segmentation exist?

Because you can't serve ALL customers equally well

What type of survey would be most useful if I wanted to compare the kinds of beard oils people already use?

Brand Awareness

Marketing mix

Building blocks that a marketer can adjust to affect marketing strategy of a product

What types of primary data would we need to focus on to answer: 1. How often do you expect to use beard oil? 2. How do you feel about using beard oil? A. Awareness and motivation B. Attitude and lifestyle C. Intention and Attitude D. Intention and Demographic

C. Intention and Attitude

Limitations of being customer-centric?

Cannot develop breakthrough products and services Marketing opportunities can pass b/c over analyzing

Framework for a Successful Value Proposition

Competitive Offering Customer needs/wants Company Offering - Need to have "points of difference" with the competitive offering and "points of parity"

Mark's Bags has decided to lower the price of its Extreme Sports Backpack. Generally speaking, which of the following might be a motivating factor in this decision to lower the price? A. To increase profits B. To be more appealing compared to competitors C. To increase customer loyalty D. All of the above

D. All of the above

Data needed to calculate the Customer Lifetime Value + Importance of CLV

Data on how much the customer spends per week, over a period of time Ex. Starbucks customer has a CLV of 14,000 over a lifetime Gives a company understanding of how much it should invest to retain customers (early in relationship)

Consumer Segmentation Criteria:

Demographic Profitability Geographic Affiliation ex. USC Alumni Usage Behavior - are customers ready, what occasion is the product used, loyalty ex. Reeses's Valentines Psychographic ex. think, feel, behave -> Benefits Sought

Business Segmentation Criteria

Demographic - size of business, type of organization Geography Application - usage level, how product is used, importance Profitability

Differentiated Targeted

Different marketing tactics for each segmentation customer

E

Economic

Global Standization

Economies of scale Facilitates efficient marketing Promotes needs/tastes similar on global level

E

Envrionment Ex. Critical metals for electric vehicles

Pricing Strategies

Ex. 10% discount with bundle purchase Odd pricing Bulk purchase discount 5 or more Warranty purchase option

Odd Pricing

Ex. 6.99

Structured Questions

Ex. How often could you find a use for this [Product/Service]?? 1. Once a week 2. 2-3 times a month 3. Once a month

4 Types of Quantiative Research

Experimental Survey Panel (Longitudinal Studies) Scanner

Examples of Quantitative Research

Experimental Survey Scanner ? Panel (Longitudinal)

Elastic Cloud Computing

Extent to which computing resources can be scaled up/down easily by cloud service provider

PESTEL Framework

External impacts on firm's decisions.

Classic Marketing Approach VS. Alternative Marketing Approach

Give them what they want Market-driven VS. Help customers learn what they want Market-driving

Psychographic/lifestyle

Given segments' attitudes' values, interests, and beliefs

Literature Search

Going through textbooks, journals, media, to find data - Secondary/Exploratory

Product

Good/Service to satisfy a customer's needs

What is a focus group and what are the criticisms for them?

Help gain insight into how consumers feel, or opinions are held Plan and design of further research? Criticisms: projects information onto a population from individuals Groups can yield false positives, not work in the market Require time and money

Behavior

How people make buying decisions

Awareness

How well shoppers know your option exists

Projective Methods

Indirect methods that causes participants to reveal their feelings, thoughts, etc.

Definition of the "Internet of Things"

Interconnection of computing devices embedded in everyday objects, send and receive data

Depth Interview

Interviews with people who are knowledgeable about the general subject under investigation

L

Law/Legal

Triangle Diagram of Customer Relationship Management

Lifetime Value of Customer Customer Loyalty Customer Satisfaction

What is finding out first what the customer wanted and working to provide that to the customer?

Marketing concept

What is the definition of Marketing?

Marketing is a process that uses art and science to create, communicate, and deliver offerings that have value for customers, collaborators and the company

Motivation

Measure the motives of consumers to understand what conditions drive behavior

Pre-Experience

Mystery shops Involve customers in business decision making Frontline personnel

NAFTA

North American Free Trade Agreement (NAFTA)

Examples of Qualitative Research

Observation Individual interviews Focus group Social media

4 Types of Qualitative Research

Observation Individual Interviews Focus Group Social Media

Concentrated Targeting

Only marketing a specific segment of customer

Link PESTEL macro-environment elements to 5C framework

PESTEL gives CONTEXT into the 5C 1. Customer 2. Competitor 3. Company 4. Context 5. Collaboration

Identify the purpose of a positioning map and how it is used

Perceptual map is used to compare yourself to competitors on the basis of a couple of variables Test where unmet customer needs potentially exist Identify where competitors might be vulnerable Helps in repositioning Ex. Low performance, high price

What does AI in Marketing look like today?

Personalization - recommendations Look-Alike Audiences - evaluate customers and identify prospects Predictive Analytics - foretell future actions Product Pricing: ex. uber Content creation: ex. AI generated photos

Unstructured Questions

Please describe your ideal vacation in the space below

P

Political Ex. Ultra processed foods

Demographics/Socioeconomic

Population characteristics and lifestyle circumstances for a market segment

AI =

Prediction

The research question when referred to in marketing is the?

Primary goal of the market research

What are the Additional Ps of Marketing?

Process - Flow of activities involved in providing services/goods Ex. Supply chain People - Encompasses human actors who provide goods to the customer Ex. Salespeople Physical Evidence - Tangible elements in the place that the good is sold Ex. Decor, lighting

Marketing Research

Process of collecting and analyzing information to influence marketing strategy

What are the tactical elements to deliver value in Marketing?

Product Service Brand Price Incentives ^ All above create value Communication Distribution

What is the marketing mix?

Product, Service, Price, Incentive, Distribution, Communication, Brand

Exploratory Research

Qualitative Many research projects begin with this Open-ended questions Unstructured

Descriptive Research

Quantitative Determines how often something occurs or how 2 things are related Quantifies feelings, attitudes, or opinions Online surveys Structured questions

Casual Research

Quantitative Finding the cause-and-effect relationship Often is an experiment - Rarely used

Market Segment

Relatively homogenous customer group that will react similarly to a particular marketing mix

Data Mining

Revealing patterns in secondary data Exploratory

How do you measure satisfaction data? Post-Experience.

Satisfaction scales Feedback Intent to refer Net promotor score

What are the pros and cons of Secondary Data versus Primary Data?

Secondary data is inexpensive, easy to obtain, but may not provide the correct insights needed Primary data is expensive, requires time, and can yield powerful market insights

STP

Segment -> Target -> Position

What is the tendency to focus on selling current products to customers?

Selling concept

What is a Target Market?

Set(s) of buyers sharing common needs or characteristics that an organization decides to serve

Definition of Positioning

Shaping the Value Proposition

Intention

Shopper plans to take action

Attitudes

Shoppers' positions about a given topic

S

Socio-cultural Ex. Rent the Runway Ex. Rise and fall of different workout options

T

Technology Ex. Big Data, Elastic Cloud Computing, AI, Internet

What does an A/B Test do?

Test different layouts and compare the data feedback from both.

What is the goal of the marketer?

To provide value to the customer to bring long-term profitability to the company

True/False: The customer should ideally be at the center of the marketing Process

True

How is marketing a process?

Understand (5C's) -> Plan -> Implement -> Measure

What is a buyer persona?

What a customer in the target market segment would look like and their Segmentation Characteristics

Differentiation

What makes a product unique and stand out to customers above other products

What is a Value Proposition?

Why you should buy from us. Developed before positioning, gives an overview of benefits.

Distinguish between the roles of the former GATT and current WTO

World Trade Organization (WTO) replaced the General Agreement on Tariffs and Trade (GATT) as the international organization that oversees the multilateral trading system GATT - open trade WTO - legal body to govern trade