MKTG 301 Concept Check 3 Scott Wallace

Panel Data (Secondary)

Group (panel) of consumers Surveys or sales receipts - what are they buying, or not buying? Usually collected by marketing research firm Consistent group of consumers, used across time, as stand-in for the general population

Omnichannel Experience

- Great experience depends on alignment of the whole marketing mix in every channel -Brand, messaging, quality, service, etc. should be consistent across all channels -Spans traditional company "silos" •Manufacturer vs. channel partners •Website managers vs. store managers •Sales vs. service [need to have connection and coordination] -Customers should be able to move between channels seamlessly (e.g., in-store pickup or returns, tweet at customer support)

Direct Mail

- Content - moderately complex (text + images), negative associations (junk-mail), slightly intrusive -Targeting - moderate reach, high precision and control -Pricing - pay per "impression," moderate overall cost -Monitoring - poor tracking (opened/read mail), moderately hard to measure sales effect

Cognitive Appeals

- Rational arguments to persuade people to prefer/buy the product -Changing knowledge/beliefs about attributes E.g. You could save 15% Gieco ad Comparative Advertising E.g. Verison vs. Att service coverage; BK ad vs. closest rivals burger (performance and features difference)

Promotion

-Activities used by the firm to engage and communicate with customers and other stakeholders Five Elements of the Promotion Mix •Advertising •Sales/Price Promotions (coupons, sales events) •Personal Selling (salespeople) •Public Relations (PR) [Big part of how companies communicate with other stakeholders. E.g. Investors, news media, gov't] •Direct Marketing (least emphasized - e.g. catalogues. Merge between advertising and personal selling) Key concept: Integrated Marketing Communications

Shelf Design

-Appealing and profitable items at eye level -High-demand items in the middle of an aisle to "pull" people down the aisle -Organize complicated shelves clearly (labels, colors; horizontal and vertical groups) [Campbells pays for this store layout so that makes the complicated selection easy.]

Television

-Content - complex (audio, video, text), limited engagement -Targeting - broad reach, limited precision or control -Pricing - pay per impression, large overall cost -Monitoring - poor tracking, no interactions, hard to measure sales effect

Online Video Advertising

-Content - same as TV -Targeting - moderate reach, high precision and control -Pricing - pay per impression, moderate overall cost -Monitoring - good tracking (exact impressions, view/skip behavior), hard to measure sales effect

Search Advertising

-Content - very simple and limited, slightly intrusive -Targeting - narrow reach, extreme precision and control -Pricing - pay per click, low overall cost -Monitoring - great tracking (exact impressions, click-through behavior), easy to measure sales effect

Retail Trend: Experiential Retail

-Curated atmosphere and holistic experience -Non-shopping activities that reinforce brand -"Instagrammable" -Flagship stores (LL Bean, REI, Nike) and pop-up stores (Glossier, NBA All-Star Weekend)

The Death of Brick and Mortar Retail

-Department stores, big box stores are struggling vs. online competitors -eCommerce taking over new categories (Zappos, Instacart) Large spaces, not being taken advantage of. Little that couldn't be substituted with online version

The Customer Journey

-Entire timeline of things that contribute to customer experience is known as a customer journey -Events along the journey are known as touch points (ad impression, website visit, store visit, service call, etc.) -Journey extends beyond the point of purchase -Touch points are not always in the firm's control, and may not even involve the firm •Conversations about the product/brand •Product research through third parties •Post-purchase product experiences •Competing or complementary product experiences

Memory Errors: Behavioral Frequency (Response Bias)

-How many times have you purchased coffee in the last year? Impossible to actually count from memory -Educated guess at best Better: -When was the last time you bought coffee? -Much more likely to remember -Specific episode (vs. full history) is more memorable -Recent (vs. distant) experience

Surveys

-More structured than interviews or observation -More consistent and comparable data across respondents -Greater up-front cost to design survey, lower marginal cost to get responses (esp. online) -Lots of issues to consider for effective question design ISSUES WITH QUESTION DESIGN: -List Framing Effects -Order Effects -Biased or Leading Questions -Double-Barreled Questions -Response Biases •Memory Errors •Social Desirability Effects •Demand Effects

Primary Research Methods

-Observation -Interviews and Focus Groups -Surveys -Experiments

Clicks to Bricks

-Popular online only brands expanding into dedicated retail stores -Immersive experiential retail; service-intensive showrooms. E.g. Allbirds, Glossier, Casper, Amazon, Google

Monetization Strategies for Digital Products

-Transactions -Subscriptions -Advertising -Merchandising and Cross-Selling -Tips and Donations

Marketing Channel

-Your partners for selling - distribution channels. How you get your product to the end customer -A set of independent organizations that help make a product or service available for use or consumption -Intermediaries between the company and the customer. Like a wholesaler selling to resell and then customer.

Digital Marketing Methods

-eCommerce -Advertising in digital media -Search Engine Marketing (SEM) -Social Media Marketing

Why sustainability is a difficult value proposition

1. Ambiguity: Defining sustainability is complicated and multifaceted (health, pollution, carbon emissions, water and energy costs, labor ethics, social justice) 2. Observability: Nearly all sustainability-related attributes are invisible when buying/using the product -How much water and energy went into this? -How much pollution was generated creating and shipping this? -Are there chemicals in this that will affect my health decades from now? -Were the people who made this paid fairly and working in safe conditions? -Are the profits from this going to people who share my values? 3. Distance: Even for consumers who value sustainability, the psychological distance of its effects (far in the future, affecting people you don't know, etc.) weakens its role in decisions

AIDA MODEL

1. Awareness: attract customers' attention 2. Interest: Raise consumers' interest by focusing on advantages and benefits 3. Desire: Get consumers to want the product or service 4. Action: Get consumers to take action and buy 4 stages that a customer moves through in chronological order.

Features

1. Complexity - What can you do in this medium? (senses, size, duration, etc.) Kind: More restrictive (Google search ads) vs. more creative formats (TV ads) Size: Smaller (Instagram ads) vs. larger formats (Billboards) Involve different Senses/dimensions: text, images, audio, movement, etc. 2. Engagement - How do people connect with content/ads in this medium? (impact, interaction, intrusiveness) Impact: Do people skip the ads (most TV) or focus on them (Super Bowl)? Interaction: Can people interact (Tweets) or just passively see the ads (TV)? Intrusiveness: Are the ads unobtrusive (Google search ads) or annoying interruptions (Pop-up ads)? 3. Associations & Context Associations & Context - What will get associated with your ad/brand? (context, nearby content, history/norms of the medium) Context: Does the context suggest your brand is legitimate (Super Bowl ads, luxury magazines) or casual (Facebook ads, pop-up ads)? Nearby content: What kind of content is surrounding your ad (TV show, YouTube video, podcast, news articles, etc.)? History/norms: Does this type of ad have a history or reputation that changes people's responses (junk mail, pop-up ad links, telemarketing)?

Integrated Marketing Communications (IMC)

1. Consistency: All communications need to tell the same message. 2. Coordination: Planning and monitoring of all parts of the promotion mix should be managed together. -All of the 5 elements of the promotion mix -Like omnichannel distribution is aligned

Indirect Distribution Channel Advantages

1. Contact Efficiency Manufacturer only needs to have a strong relationship with the distributor. E.g. You get access to multiple of your target segments selling your tech in best buy, than directly targeting your unique segments 2. Scale - Economies of Scale (pooling multiple producers) -Reach far more customers -Convenient for consumers (distribution intensity) -Often ends up cheaper 3. Specialization -Much less investment to the producer because you are outsourcing! Outsourcing: -Distribution and delivery infrastructure -Sales and service (value-added retailers) -Intermediaries have deep experience in their roles

Functions of Channels

1. Product distribution and storage (downward flow of goods) 2. Targeting and positioning (who shops here? What else is on the shelf?) 3. Manage shopping environment and experience 4. Front-line customer interactions (sales, service) 5. Sharing information among partners (upward flow of info) e.g. purchase data

Channel Structure

1. Direct Distribution)(Direct channel) : From company to customer without intermediaries. E.g. Glossier, H&M, Apple, Starbucks, Warby Parker. NO INTERMEDIARIES 2. Indirect Distribution (Indirect Channel): Intermediaries between company and customer. -Traditional retailers -Home selling -Price Clubs / Wholesale Clubs -Online Retailers E.g. Walmart, Target, Costco, Sam's, Bj's, Amazon.com 3. Hybrid Distribution: Sell through both direct and indirect channels simultaneously. Useful If your segments have different needs (price, customization, service, convenience, etc.) -Direct part lets you own some customer relationships and insights; also limits intermediaries' power -Indirect portion often lets you reach more customers or offer lower prices 4. Vertical Marketing Systems A: Corporate VMS: Channel participants aren't fully combined, but share corporate ownership (closest to being a direct channel - will act like a single company) E.g. Luxotica Group (ray ban - sunglasses hut - end consumer) B: Contractual VMS: Channel participants are independent, but have strong, long-term contracts coordinating their activities (coordination leads to more direct channel-like behavior. They might have contracts that pass price savings to customers) Most common version is franchising. E.g. Manufacturer Sponsored Retailer (Ford dealership) E.g. Manufacturer Sponsored Wholesaler (Coke bottler/distributor) E.g.t Service-Firm Sponsored Retailer (restaurant franchises) C: Administered VMS: Channel participants are independent but activities are coordinated thoroughly by one very powerful participant E.g. Amazon, Walmart, Kraft, P&G (lots of product makers control the stores they sell in - negotiating power)

What makes a channel structure effective? Effective channel structure

1. Economics: Able to deliver greatest value to customer at the largest margin to the firm. 2. Control: Firm has control over full marketing mix, owns the customer relationship, and captures all relevant information. 3. Adaptability: Minimize vulnerability to future changes in customers, industry, or the macro environment.

Store Layout

1. Have a decompression zone at the entrance 2. Use high visibility spaces to show off and build your brand (power wall) 3. Give people space to move (4' standard aisles; "butt-brush effect" - makes people leave in next couple of minutes and purchase nothing) 4.Planned purchases can require effort, but impulse purchases need to be quick and easy 5.Get people to spend more time and see more items in the store (e.g., put staple items in the back) E.g. IKEA uses serpentine tracks that manage the retail experience, push customers through all products

Marketing Digital Products

1. Micro-targeting 2. Monitoring 3. Growth and Scale 4. Monetization Strategies

Beyond eCommerce

1. Mobile: •Quick response to activated need (on the go) •Small screen •Hard to gather/compare complex info •Touch-based interface (more tangible, impulsive and less precise than mouse) 2. Voice: •Audio-based interface •Very hard to gather/compare more than minimal info; first search result dominates •Interface takes effort and time; activates "social" psychology 3. Virtual Reality •Very rich experience •Gather/compare large amount of information •Allows product exploration and testing (3-D, interactive) 4. Augmented Reality •Using computer vision, simulate product in real context (clothing, furniture) •Can be in VR or mobile format •Favors products that are easy to simulate (solid furniture, skin-tight or rigid clothing)

Advertising Methods

1. Offline/Mass Media -Traditional ads -"Native" print advertising (looks like article, fine print shows its an ad) -TV "advertainment" (Cavemen show from Geico - long form ad) -Product placement (e.g. Coke in American Idol) 2. Digital Media Banner ads, search ads, pop-ups, social media (posts, ads, influencer marketing), traditional ads in online media (preroll video ads) YouTube + Podcast ads similar to traditional ads 3. Direct (Mail, etc.) Mail, Email, text/SMS, Personal selling 4. Other -Billboards -Outdoor and -Guerrilla Advertising Events (e.g. Apple events)

Key Concepts in Experience Management

1. Omnichannel Experience 2. Extended Delivery Networks 3. Experience Co-Creation

Social Media Marketing

1. Paid Advertising (E.g. Allbirds ad) 2. Talking on Social Media: -Owned media and potential Shared media (PESO model) -Low cost (e.g. interns; but they can screw this up) -Limited audience, but reaches most loyal customers -Can sometimes go viral and reach a broader audience E.g. Wendy's 3. Listening on Social Media -Follow cultural trends and events -Track brand-related discussions and attitudes (sentiment analysis) -Identify individuals' attitudes, emotions, etc. (for targeting) [e.g. emoji use --> target] -Get feedback, provide service E.g. United Airlines on Twitter. Guy who's guitar broke can be a huge problem.

Key Characteristics of Retailer Types

1. Product variety -narrow vs. wide (specialty vs. supermarket) -deep vs. shallow (category killer vs. convenience store) 2. Amount of service -self-service, limited-service, or full-service 3. Relative prices (convenience store vs. wholesale club)

Direct Distribution Channel Advantages

1. Quality Control -Manage whole customer journey -Design and manage retail environment -Hire and train all staff 2. Customer Contact -Own the relationship -Capture insights, feedback, and customer data -Build strong relationship and loyalty 3. No Channel Conflict -No fighting over profit margin split -Price cuts passed on to customers -Automatically share information -Automatically carry whatever the producer wants (and no competitors' products)

Targeting

1. Reach - How much of your target audience can this medium reach? -TV can reach most customers (especially older ones), YouTube can reach most younger customers (Snapchat, TikTok, etc. too) 2. Frequency - How often will each person be exposed to your message? -People often pass billboards and subway ads daily -Google search ads are sold for one single exposure/search 3. Precision & Control - How well can you reach only your target audience, and how much can you choose or change the audience? -Direct mail targets by individual, TV ads target by show/hour -HGTV reaches a more precise audience than NBC -HGTV always reaches the same audience, vs. Facebook ads can shift their targeting easily

Attributes of Good Market Research (Primary Data)

1. Reliability: Would a repeat test find the same insights? 2. Validity: Do the findings apply to the business problem you're solving? 3. Generalizability: Is your data representative of the wider world?

Retailers

1. Specialty store (Apple store, Sephora, Lululemon) 2. Department store (Nordstrom, Macy's) 3. Supermarket 4. Convenience store 5. Discount store (Target, Walmart). Small profit margins, success through scale. 6. Off-price retailer •Factory outlet (J Crew Factory, Nordstrom Rack) •Wholesale club (Costco) 7. Superstores •Supercenter (Super Target, Walmart Supercenter) - might even have restaurants, other shops attached. •Category killer (Best Buy, Home Depot) [Specialty that score that has scale and depth]

Retail Atmosphere

1. Visual design -Clutter vs. order; Bright vs. dim lighting -Use of color: black is sophisticated, orange is fair and affordable, blue is trustworthy and dependable 2. Sound design -Noisy vs. quiet -Use of music: excitement/arousal, cultural associations 3. Temperature, Textures, Scents (often "piped in" artificially)

Monitoring

1.Impressions - Can you tell who's seeing your ad? (TV/radio panel ratings vs. online tracking) 2. Interactions - Are there ways to interact with the ad that are useful to track? (clicks and click-through rate, liking and sharing) 3. Conversions - Can you accurately measure your ad's effect on sales? (tracking pixels/cookies, test marketing, A/B testing, "ghost" search ads) A/B test: Show different versions of ads

eCommerce

Benefits: -High value-to-bulk ratio (size, weight, fragility, perishability, hazards) [hard to store and deliver big things, bad for eCommerce] -Large absolute margins -Don't need hands-on testing. -No convenient offline options -Low sensitivity to delayed delivery, or high WTP for fast delivery -Customers are geographically dispersed

Halo Effects

Definition: When a positive product attribute leads to irrational positive inferences about unrelated attributes. -In some product categories, sustainable attributes (e.g., organic labeling) lead people to assume the product is healthier (e.g., fewer calories, less sugar) or more ethically produced (e.g., labor practices) -The reverse can also happen, contributing to greenwashing

Paid Search

Advertisers pay to show up as search results, Google sells keywords in automated real-time auctions. Advertiser pays Google whenever someone clicks through (CPC). Why is this so appealing to advertisers? • Target people specifically based on interest in your (or competitor's) product • Influence people who are actively looking to make a purchase E.g. Tour Guide: Find the perfect trip to Italy

Types of Advertising Appeals

Affective (Emotional): Influence feelings and emotions -Cognitive (Rational, Informative): Influencing thoughts, beliefs, knowledge -Conative (Behavioral): Driving or influencing action E.g. Call to Action - Purchase Now! Donate Now! Drive to a particular action

Advertising

Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. -Heart of marketing -U.S. law requires disclosure of sponsorship

Generalizability

Are your responses representative of the population of interest? Common biases: -Current customers - extra favorable -Ex-customers - extra unfavorable -Opt-in - extreme views -Specific times/places - specific characteristics •Daytime = unemployed, retired •Internet = technologically savvy, younger Do you have enough responses to draw larger conclusions? -Larger is better -Amount needed depends on variability in responses -Not based on size of total relevant population

PESO MODEL

Aside from selecting media, marketers can choose between four pathways to create/spread their message... P: Paid media: Traditional ads E: Earned media: Get people talking S: Shared media: Get people to share your message O: Owned media: Do the talking yourself Major considerations: Cost, source/trust, control (message control, monitoring), targeting, and objectives

List Framing Effects

Based on the smallest and largest answers possible, answer will vary. E.g. if 1 to more than 2 hours; vs. 1 to more than 4 1/2 hours. Changes the norm for people to respond in. Past classes asked: How many hours of television do you watch on an average week day? Please choose the category from the list below that best describes your behavior. Version A - 1/2 incrementally, stops at more than 2 1/2 hours; VS. Version B: Goes up all the way to 4 1/2 Marketer's Question: What % watch more than 2.5 hrs of TV?

Branding as a sustainability marketing tool

Brands are an excellent way to convey non-observable attributes -Due to greenwashing concerns, brands must be trusted and seen as sincere to be credible as sustainable product makers -People's memories tend to be all-or-nothing ("I actually heard they weren't sustainable in this one way...") so sustainable brands often need to go all-in on every dimension of sustainability

Brick and Mortar

Brick and Mortar Benefits: 1. Employee Interaction: -Provide information and recommendations -persuade and sell -social interaction and friendly face -gather comments, feedback, customer insights. 2. Product Testing: -Try out the product in action -See products in person, 3D -Touch and feel products -Test for hard-to-verbalize attributes (e.g. exact clothing it vs. basic measurements; car ergonomics) 3. Multiple Senses: -Non-visual product attributes -Multi-sensory store experience -Immersive shopping (vs. laptop or mobile screen) 3. Customer Labor -Customer gathers items in the cart -Customer handles last-mile transportation to home -Huge cost savings vs. having staff/drivers do this for every single person! -On the other hand, "delivery" feels instantaneous in the store [you don't realize how much effort it takes to get home, etc.]

Location

Considerations for choosing a location: 1. Cost. How expensive is the space? How expensive are the workers? How hard is it to get deliveries there? 2. Targeting. Who would go there? How close is it to target customers? 3. Competition and Complements. What other stores might help or hurt your business? 4. Clustering - when stores are clustered near each other.

Interviews and Focus Groups

Conversation with (potential) customers to directly ask them about their thoughts and feelings. -Focus group is an interview with multiple people at once, led by a moderator. -Have a lot of interaction and can be guided by an expert interviewer/moderator -Fairly unstructured and anecdotal, so more useful for exploratory research than for making final decisions or generalizing to all customers. -Focuses on articulated needs APPLICATIONS: Understanding Consumers -perceptions, opinions, and behaviors Product Planning -generating ideas about, or evaluating new products Advertising -develop creative concepts and evaluate ads or messages ADVANTAGES -Group Interaction -Spontaneity -Richness -Easily understandable "customer" language -Fast -Flexible LIMITATIONS -Lack of Generalizability -Groupthink and Conformity -Social Desirability (sensitive topics) -Moderator Influence

Showrooming (Omnichannel Concept)

Customer visits retail store but purchases on website. [E.g. Apple Store] Insight: Customer values in-person service, hands-on trial, etc.

Webrooming (Omnichannel concept)

Customer visits website but purchases in retail store. Insight: Customer dislikes in-person service, or can't find/compare the right information easily in store

Disintermediation (Marketing Trend)

Cutting out existing intermediaries to be replaced with a direct channel or with radically new intermediaries. •Direct: Why now? -easier shipping -micro-targeted ads, cheap communications -geographically dispersed customers (esp. niche products) •Radically new: Online platforms (Amazon, Etsy, Alibaba, YouTube) Example: Fortnite Epic Store (Rather than going on Steam) •Company launched independent "Epic Store" in Dec. 2018 (vs. Steam store 30% commission) •Last year, had 200M users and made around $400M per month

Primary Data

Data that did not exist prior to this specific research effort and must be created by the marketer. Most helpful for decision support research (the 4 Ps). ADVANTAGES: 1. Allows investigation of a specific issue of interest 2. Often more relevant outcomes than secondary data 3. Can look at causality and what-if scenarios DISADVANTAGES: 1. Expensive 2. Time-consuming 3. Many potential biases

Greenwashing

Definition: presenting a product as sustainable or "green" in a way that misleads consumers, either implicitly or explicitly. -Using green-sounding terms that are not legally protected or certified (e.g., eco- friendly, farm fresh, natural feeling) -Seemingly independent certification labels from made-up organizations -Applying green-sounding trademark names to irrelevant ingredients or features ("OrganiOils," "EcoPower") -Highlighting that a product is made "with" natural or organic ingredients when they are a small percentage of total ingredients -Mimicking label or package design of sustainable brands (green, plants, natural design theme)

Dark Patterns

Design features of a user interface (UI) that deliberately work poorly but benefit the company -Unsubscribing or closing an account -Opting out of sharing contacts, joining email lists, enabling notifications, location tracking, upgrading, etc.

Growth and Scale

Digital products have zero marginal cost -Cost-based pricing not applicable; identifying value becomes very important -Flexibility to price discriminate (no floor) -Scale becomes a primary concern The most successful digital products grow exponentially due to network effects Global reach and instant distribution (approximately)

Network Effects

Each additional customer makes the product more valuable to other customers -This produces organic WOM, exponential growth, and strongerfirst-mover advantage Four common business models with major network effects: 1. Customers use the product with each other (WhatsApp, Venmo, Dropbox, Fortnite) 2. Product relies on user-generated content (UGC) (Pinterest, Wikipedia, YouTube) 3. Two-sided platforms bringing together customers and providers (Amazon, Uber, Etsy) 4. Data flywheel where customers provide extremely valuable data to improve the product (machine learning, voice recognition, self-driving cars)

Experience Co-Creation

Experience depends not just on what marketers do, but also on what customers do. Co-creation refers to the fact that customers help to create a good (or bad) customer experience for themselves and for other customers. -Single Customer: communicating needs, choosing/customizing products, asking for help, being in the right mood or mindset to enjoy an experience -Other Customers: Crowd at a concert, other plane passengers, other social media users, other shoppers in a store

Tips and Donations Monetization Strategy

Free content builds relationship and brand equity, audience voluntarily pays to support creator. Examples: Patreon, Twitch, NPR, YouTube channel memberships, Pay-What-You-Want pricing Pros: -Promotes relationship mindset and loyalty Cons: -Most users won't pay -Need to cater to paying customers (narrow segment)

Monetization Strategy: Merchandising and Cross-Selling

Free digital content builds relationship and brand equity, cross- selling later "harvests" this value. Examples: Branded merchandise, Concert or event tickets, Celebrity product lines/books/etc. Pros: -Potentially high revenue per customer -Promotes relationship mindset and loyalty Cons: -Most users won't convert and won't pay anything -Investing up front for delayed (and uncertain) revenue

Transactions: Monetization Strategy

One-time charge for purchase of digital goods. Most similar to traditional goods and services. Examples: iTunes, Amazon Video, Kindle e-books Pro: Higher revenue per purchase Cons: Fighting against "online=free" norm

Social Desirability Effects

For certain questions, respondents are biased to answer in a way that they perceive to be socially desirable. (Self-presentation) This makes some research questions very hard to address: What % of the US population cheats on their spouse/partner? What % of the US population washes their hands every time they go to the bathroom? What % of UW students use illegal drugs regularly?

Choosing Your Advertising Medium

Four Considerations: 1. Features 2. Targeting 3.Pricing (structure and cost level) 4.Monitoring (feedback and testing)

Order Effects: Responses are influenced by previous questions

General questions are influenced by related, specific questions that precede them. The specific questions are influenced more by concrete facts or memories. As a result, putting the general question first (how happy are you in general?) provides more accurate results than putting the general question last.

Customer Experience

Holistic, not just product quality (augmented product) -Source of sustainable competitive advantage! -Builds brand -Adds customer value -Difficult to replicate Due to complexity, can be hard to fully understand and manage

Biased or leading questions

How much more would you be willing to pay if your clothing was made in the United States? But then the smallest option is less than 5%, which means some amount - and not 0

Secondary Data

IS ANYTHING OTHER THAN PRIMARY DATA. Data that already exists somewhere (prior to this specific research effort) and was collected for another purpose. -Can be external or internal to the company Examples: -Transaction data (e.g. scanners) -Panel Data/3rd Party Data -Online browsing data -User Generated Content (Twitter, etc.) -Census or pre-existing survey data -Most helpful for situational marketing research (the 3 Cs) -Often the domain of marketing analytics ADVANTAGES: 1.Abundant, easy to find 2.Can be low cost or even free 3.Can show real market behavior (scanner data) DISADVANTAGES 1.Not customized to your needs 2. Procedural details may be unknown to you 3. Limited insights about causation

Conative Appeals

Influencing Behavior Calls to action -Encourage inquiries -induce trial, purchase, and repurchase -inform about purchase options/locations -encourage WOM E.g. Netflix trial, BUY NOW!

Affective Appeals

Influencing emotion 1. Positive affect (audi example - nice epic music, family, patriotism). -Humor (Buble promoting Bubly seltzer) -Warmth(coke example): nostalgia, family, animals -Excitement: money, action, sex -Ads with spokespeople 2. Negative Affect -Fear (SimpliSafe examle) -Guilt (charity) -Anger or outrage (political attack ads) Ads with celebrity spokespeople Benefits: -Grab attention -Likeable (positive affect) -associations spill over (e.g. Matthew McConaughey) -May be seen as category experts Drawbacks: -Celebrities' futures are unpredictable! E.g. Tiger Woods

Observation

Involves watching and interpreting people's behavior with minimal interaction or intervention Great for exploratory research and for finding unarticulated needs E.g. McDonald's milkshakes. People were buying milkshakes early in the morning. Buyers were often adults eating alone. Insight: People wanted these milkshakes while they were stuck in traffic on their commute. Marketing decisions: Design to last longer, design for straw vs. spoon, list on breakfast menu, morning price promotions, shift McCafe products to meet this need

Product Assortment

Key Considerations: 1.) Fit with other products and with the store -Functional fit (level of service needed, target customers, buying occasions) -Symbolic fit (brand associations, status) ^^ E.g. NORDSTROM 2.) Profitability -Popularity -Profit margin -Store (vs. manufacturer) profit share -Does offering this product help me sell more of my other products? -Customer traffic -Complements and captive products -Psychological effects (compromise effect, etc.) -"Loss leaders" [products sold to gain other benefits - e.g. Black Friday sales on TVs are losses, but they make captive sales that increase overall profitability] ^^E.g. Best Buy

Major Retailing Decisions

Location, Product Assortment, Store Layout, Atmosphere

Search Engine Marketing (SEM)

Paid Search + Search Engine Optimization

Freemium Monetization Trend

Main product is available for free, paid "premium" version gives additional features -Many "free riders," but not a problem due to zero marginal cost -Free users create network effects that provide value for premium customers

Addiction

Many digital products are relentlessly optimized to capture and hold our attention (bright colors, constant notifications, 24/7 availability, infinite newsfeeds, etc.) -These products are Supernormal Stimuli, playing with our brains in ways that nothing in the natural environment ever could (similar to highly processed foods) -As these products get more and more effective, there is an ethical conflict between customer well-being and business success(especially for advertiser-funded platforms) -In the next few years, there is a high likelihood that we'll see a reaction in the form of consumer demand, activism, and/or regulation

Types of Data

Primary Data: -Surveys -Focus group/interviews -Observation -Experiments Secondary Data: -Transaction data (e.g. scanners) -Browsing/clickstream data (Amazon) -User Generated Content -Government or 3rd party data

How many times should an ad be shown

Middle amount. Too little and too much saturate or not enough. S SHAPED! Threshold effect: People have to see an ad a certain number of times Saturation effect: Seeing ad too many times makes you worn out / no marginal value

Pricing

Minimum investment (TV ads very large vs. Facebook very small) Pay for conversions vs. impressions -Television ad CPM ($ / 1000 expected viewers) -Radio/Podcast/Influencer links and discount codes (paid based on sales) -Online CPM ($ per 1000 impressions) vs. CPC ($ per click) -General price level for the medium (will depend on engagement, targeting ability, audience desirability, and ad competition)

Non-Probability Sampling

Non-Probability Sampling - sample members are NOT drawn at random from the population of interest and may have systematic differences in characteristics. -Convenience sample includes whoever is easiest to recruit -Judgment sample includes the "best" respondents according to the researcher's judgment Non-probability samples can actually work much better in some cases, but you must be careful about generalizing your findings. Most real-world samples are convenience samples to some degree.

Monopsony (related to administered VMS)

One dominant buyer, e.g. Walmart

Monopoly (related to administered VMS)

One dominant seller e.g. P&G

Monetization Strategy: Advertising

Product/content draws attention, advertiser pays content creator, consumers (eventually) buy from advertiser. Examples: Facebook, Instagram, Google, YouTube, Pinterest, Spotify (free version), Podcasts Pros: -Low cost salience to consumer -Low bar for acquiring and keeping consumers Cons: -Often compromise customer value to favor advertisers (censorship, manipulation, violating privacy)

Push vs. Pull

Push: Push the product down the channel to the customers. Mostly communicating with and incentivizing the retailer. Retail deals with end customer, incentivizes with specials and discounts. Pull: Instead of focusing on retailer, manufacturer focusing on the end customer. That way, the customer demands it from the retailer.

Double Barreled Questions

Questions that ask about two separate pieces of information at the same time, making interpretation difficult or impossible. Please indicate how much you agree or disagree with each of the following statements about your shopping experience: 1) I felt welcomed by the staff and my needs were well taken care of. Better (not double-barreled) version: 1) I felt welcomed by the staff. 2) My needs were well taken care of.

Subscriptions: Monetization Strategy

Recurring charge for ongoing access to digital goods within a set period of time.Examples: Netflix, Kindle Unlimited, Spotify, New York Times Pros: -Very high retention -Lower cost salience to customer (autopay) Cons: -Higher bar for initial conversion -Fighting against "online = free" norm

Demand Effects

Respondents often feel pressure to answer questions in a way that they think the asker wants to hear. How often have you been flossing? NOT ABOUT SELF PRESENTATION. DRIVEN BY PRESSURE TO ANSWER IN A WAY THE RESEARCHER WANTS. OUT OF POLITENESS

Key to Generalizability: Sampling

Sample size: How many responses did you collect? Sampling Procedure: Whom did you ask? -Probability and Non-probability samples

Search Engine Marketing (SEO)

Search Engine Optimization (SEO) involves designing the content of a website to increase its likelihood of showing up in desired organic (non- paid) search results. -Keywords and phrases, links (to and from) other reputable and relevant sites, using easily searchable product and brand names [Built up over time. PageRank] - This is how people think about product and brand naming. Bad SEO: LIVE, Bare Naked Ladies [catch everyones attention - could be a huge problem when online], Prince's symbol - hard to find.

Probability Sampling

sample members are drawn at random from the population of interest. Ideally they will have no systematic differences in characteristics compared to that population. -Simple random sample has an equal chance of including any member of the population. -Stratified random sample ensures that certain (mutually exclusive) subgroups are represented but draws randomly within each group.

Advertising Stats

Some numbers: -The rate of a full-page black-and-white ad in Wall Street Journal in 2018: $249,180 -30 seconds during the 2017 Super Bowl: $5 million -Google's total advertising revenues in 2017: $95 billion (worldwide) -U.S. advertising spending in 2017: $206 billion

Decision Support Research

Strategic: Segmentation, Targeting, Positioning Tactical: Product, Price, Place, Promotion

Situational Research

Trying to understand the situation your business is operating in. -To Identify Opportunities/Threats -To Assess Strengths/Weaknesses -3 C's

Negative Inferences

The idea of Sustainability carries many associations in consumers' minds In some product categories, consumers associate green products with poor performance on other attributes: -Overpriced -Foods taste worse -Cleaning products are less effective -Generally less durable and less functional

Social Media Data (secondary)

User-generated content -Social graph (connections) -Interests (following pages, subreddits) -Some is publicly available (Twitter), other data can be purchased

Clustering

Why cluster near others with complementary products? -Shared customers and usage occasions -Concentrate/share traffic Why cluster near others with competing products? -Convenient for shoppers (travel costs, information search, maybe near complements) -Location itself might be great for other reasons

Extended Delivery Network

Your customer's experience often depends on the contributions of other products and services. The whole set of products and services that shape a given experience is the Extended Delivery Network. Example - Going to a Movie: -Movie studio and theater -Rotten Tomatoes -Babysitter/Dogsitter -Uber -Verizon -Restaurant (dinner beforehand) -Bar (drinks afterward) -Yelp ^^ This is an example of a customer-coordinated network. Firm-coordinated network = hotel concierge handles taxi and restaurant for guest

Objectives of Promotions

•Getting customers (AIDA model, Pull/Push approaches) •Informing, Persuading, and Reminding •Long term: Building brands and customer relationships Inform (Introduction phase): -Tell the market about a new product -Describe attributes, benefits, uses Persuade (growth): -Create/strengthen positive associations -Weaken negative associations Remind (maturity): -Remind current customers to purchase again/more -Keep product in consumers' mind during "off season"