POM Quiz 1

BCG Consulting uses a "Portfolio Analysis" Methodology for their customers showing "Growth-Share Matrix? How does it work and what can you communicate with it?

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Microsoft often gives away many of his software products that work with their software. What is the Microsoft strategy behind that and what does they hope to get out of it?

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What does Jeff Bezos credit the key to Amazon success is? Do you agree

"Obsess over customers" - everything is relentlessly customer driven, customized home pages, recommended products based on searches/previous buying history

McDonald's does segment and target marketing by dividing their customers into what kind of groupings and segments. Would you do it their way?

1. Middle to lower income, less healthy options, fast food 2. Yes, no fast food restaurant is going to be super healthy

What are the five steps in the Buyer Decision process?

1. need recognition 2. information search 3. evaluation of alternatives 4. purchase decision 5. post purchase behavior

How does "Behavioral Segmentation" help improve customer loyalty or "occasion" shopping on holiday's or "Benefits" segment? Why is the question, "What is a Product?" not so simple to answer?

Behavioral Segmentation: dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product. Benefit Segmentation: dividing the market into segments according to the different benefits that consumers seek from the product. Marketing occasion shopping increases profits in certain parts of the year, such as Starbucks selling fall-themed beverages. A Product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. They can be broadly defined to include services, events, persons, places, organizations, and ideas.

How does an advertiser create "Behavioral Targeting"?

Behavioral targeting is using online tracking data and analytics to target advertisements and marketing offers to specific consumers.

Big Data often scares many consumers. Why is that? What can go wrong? What are the positives of having Big data systems available to companies?

Big data is the plethora of huge and complex data sets generated by today's sophisticated information generation, collection, storage, and analysis technologies. Consumers are scared by this because brands have access to a lot of their personal information, and it can feel like an invasion of privacy. Something that can go wrong is that companies may put quantity of data above quality. The wealth of data available to them may distract them from seeing what is actually relevant and useful for crafting a marketing strategy. The positives are that marketers can adapt their strategies in a timely fashion due to the steady stream of data they can receive.

What are the Pros and Cons of having your brand become "generic" like Kleenex or Band-Aid?

Brand name becomes identifiable with the product category - good for business. Difficult to protect; others can recreate product.

Outline the factors that Influence Consumer Behavior and give examples.

Consumer buyer behavior is the buying behavior of final consumers - individuals/households that buy goods and services for personal consumption. Factors that influence consumer behavior and examples are as follows: cultural - ex. culture, subculture, social class social - ex. groups/social networks, family, roles/status personal - ex. age/lifestyle stage, occupation, economic situation, lifestyle, personality/self-concept psychological - ex. motivation, perception, learning, beliefs/attitudes

How does "Crowd Sourcing" help in new product development?

Crowd sourcing is inviting broad communities of people - customers, employees, independent scientists and researchers, and even the public at large - into the new product innovation process. This helps in new product development because it allows companies to gather idea for new products from a myriad of sources rather than just one.

In customer-engagement marketing, why is there a shift of "marketing by intrusion" to "marketing by attraction"

Customer-engagement marketing is making the brand a meaningful part of consumers' conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences, and community. Marketing by attraction is creating market offerings and messages that engage customers rather than simply interrupt them as marketing by intrusion tends to do.

Why is it important to recognize the "Family" and current changes if you are in marketing?

Family is the most important membership in a reference group. Families are changing - more couples without children, people getting married later, etc.

What are the four service characteristics that a company needs to know when designing a Marketing campaign?

Intangibility: services cannot be seen, tasted, felt, heard or smelled before bought. Inseparability: services cannot be separated from their providers (people or machines) Variability: quality of service depends on who provides them as well as when, where, and how they are provided Perishability: services cannot be stored for later sale or use

Why is "internal marketing" so important in the "services" business?

Internal Marketing: means that the service form must orient and motivate its customer-contact employees to work as a team and provide customer satisfaction. Need to hire the right people to carefully orient and inspire them to offer unparalleled service; make the employees believe in the brand so they can authentically deliver the brand's promise to the customer. Employees will be interacting with the customers usually, so that is why it is so important.

Understanding Technological changes is vital for Marketers. Why and give an example?

It is essential for marketers to understand technological changes because one of the environments they must consider is the technological environment which consists of the forces that create new technologies, creating new product and market opportunities. This is important especially since technology evolves so rapidly, so marketers must adapt their marketing techniques to keep up with mobile technology.

What is "Marketing Analytics" and why is it so important in developing a marketing strategy?

Marketing analytics is the group of analytic tools, technologies, and processes by which marketers dig out meaningful patterns in big data to gain customer insights and gauge marketing performance. Need to sift through all the data to give customers what they want

What are the many definitions of a "New Product" and why must a branding and marketing program be developed for each?

Original products, product improvements, product modifications, and new brands that the firm develops. They are all going to be different, thus they need to be marketed differently. You want to promote the enhancements of your product

Explain the five decisions on has to make about individual product marketing - Product Attribute, Branding, Packaging, Labeling/ logos and Product Support services?

Product Attribute: defining benefits it will offer on the basis of quality, features, and style/design Branding: name, term, symbol, or design that identifies maker or seller of product or service. Brand name becomes the basis on which a whole story can be built about a product's special qualities. Packaging: involves designing and producing the container or wrapper for a product. Important marketing tool; attracts buyers, communicates brand positioning, closes sales, etc. Labeling/Logos: identifies product or brand, describes several things about a product, promotes brand and engages customers Product Support Services: customer service; offer usually comes with support services which may be minor or major part of total offering

Define what is the "Product Mix" or sometimes called "Product Portfolio Mix".

Product Mix: consists of all the product lines and items that a particular seller offers for sale ex: GE manufactures light bulbs, medical equipment, jet engines, etc.

What is the Role of Amazon Prime offering in increasing Customer Loyalty and Repeat buying?

Sells speed - consistent convenience and shipping as fast as 2 hours long, one click buy

Name 3 Marketing Information Data Bases you accessed in the Mendoza Business Library workshop.

Statista, IBISWorld, Factiva

simple random sample

every member of the population has a known and equal chance of selection

"Shinola" Products is a good example of a company understanding their consumer. What do they do that makes them close to their customer and create a high demand in their target group?

They have created an All-American brand personality by setting up in Detroit - a town once flourishing with industrialism that has fallen upon hard times. They provide jobs there and source most of their materials from America. Additionally they create high quality bags, bikes, leather goods, and watches that can be passed down from generation to generation. Their storefronts follow a sleek industrial aesthetic and they host events to lure in customers.

Disney Resorts have provided excellent "customer experiences"? Name several strategies that they have used to increase business and gain customer loyalty.

They have the idea of "Disney Magic," RFID wristband technology, and extensive training for their employees.

What process did Sara Lee use in developing the "Soft and Smooth" White Bread?

They learned that people liked the texture and color of white bread, but wanted to get more whole grains because it was healthier. They made their new bread in a way that it looked and felt like white bread, all while containing more whole grains. Additionally, the company packaged the product in a way suggesting that it was still white bread. - market research

Big data is used effectively by Target to analyze their customers' needs and preferences. What mistake did they make in divulging their findings to a young shopper's family? What does this say about research?

They made the mistake of recommending baby and maternity products to a teenage girl's family who was pregnant but her and her family did not know yet. This says that at times big data can be invasive and can recommend lifestyle products that make people uncomfortable

What is the advantage of a Social Media Center?

Tracking social media activity can provide information on what consumers are saying about products. Can see how to change product, strategy, or advertising. People turn to social media to complain so they can see what they need to do better.

biometric measures

heart rates, respiration rates, sweat levels, facial and eye movements

what is the Amazon "Blend of Benefits"? What is the Discovery Experience Built into the Offering? How do they hel with the Amazon success record?

huge selection, good value, low prices, and convenience. discovery experience - the temptation to stay and browse fora while - engages custmers

neuromarketing

using EEG and MRI technologies to track brain electrical activities to learn how customers feel and respond

As with the case of Samsung, many companies develop an IOT strategy? What is IOT and what effect will it have on the economy?

"Internet of Things": a global environment where everything - from home electronics and appliances to automobiles, buildings, and even clothing - will be digitally connected to everything else. Provides fertile territory for future innovation and growth. Dominance in one category and connectivity leads custumers to purchase more products from the company across all categories to increase network of connected devices.

Four steps of the marketing process

(1) Understand the marketplace and customers needs and wants (2) Design a customer value driven marketing strategy (3) Construct an integrated marketing program that delivers superior value (4) Engage customers, build portable relationship and create customer delight (5) Capture value from customers to create profits and customers equity

Ritz Crackers are an iconic brand. How did they conduct research and what did they learn about the consumer buying habits that helped them launch Ritz chips.

- extensive market research and focus groups that led them to determine characteristics that people associate with ritz- buttery, cakeyand characteristics people associate with chips/crackers to distinguish their product as a chip while still having ritz characteristics (store in a bag)ext

What is a SWOT analysis and what can it reveal?

-*SWOT Analysis*: an overall evaluation of the company's strengths, weaknesses, opportunities, and threats -Internal analysis reveals strengths and weaknesses, while external analysis points to potential opportunities and threats. - Capabilities

Airbnb has introduced a Disruptive Business Model into the Hotel industry. What has been the keys to their success and how have they customized their experience to the customer?

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Amazon continues to grow their services base even though their shipping is barely breaking even. How do they make money and how is this helped by their business model as a "disruptor"?

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ESPN, Marvel comics, Star Wars are a part of the Disney Portfolio. How does it affect their business and their portfolio?

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Mountain Dew has chosen to focus on a specific segment of the market with their ads and promotions. What segment have they chosen and how have they implemented it.

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The Shopify Drop ship Model is leading edge in working within the B2B. What kind of marketing programs do they have and how is it helping them compete?

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What is the "Starbucks Experience" and how has it helped their company to grow?

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What is the difference in a "House of Brands" and a "Branded House" in Portfolio Management? Use P&G, General Mills, Disney as examples of each type

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What value does LinkedIn provide for the different stakeholders who use the service, company and employees?

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Why has the Amazon Business model been so successful

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How is a brands' value determined and why is it important? What is brand equity?

-Brand Value: the total financial value of the brand>determined by brand equity which is measured along four consumer perception dimensions: differentiation (what makes the brand stand out), relevance (how consumer feels to meets their needs), knowledge (how much consumers know about the brand), and esteem (how highly consumers regard and respect the brand)>used as a competitive advantage and to build customer equity -Brand Equity: the differential effect that knowing the brand name has on customer response to the product or its marketing

Why would someone want to "Co-Brand" their product and what are the potential problems?

-Co-branding: the practice of using the established brand names of two different companies on the same product-Someone may want to co-brand because combined brands create broader consumer appeal and greater brand equity; complementary strengths of two brands; allows company to expand its existing brand into a new category with more ease -Potential problems include relationships involve complex legal contracts and licenses; must carefully coordinate advertising, sales promotion, and other marketing efforts; requires each party to trust the other to take good care of its brand

What is the difference between types of Consumer products - Convenience, Shopping, Specialty or Unsought - and their Pricing and Promotion?

-Consumer Product: a product bought by final consumers for personal consumption -Convenience Product: a consumer product that customers usually buy frequently, immediately, and with minimal comparison/buying effort>Price: low>Promotion: mass promotion by producer -Shopping product: a consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style>Price: higher price>Promotion: advertising and personal selling by both the producer and resellers -Specialty Products: a consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort>Price: high price>Promotion: more carefully targeted promotion by both the producer and reseller -Unsought Product: a consumer product that the consumer either does not know about or knows about but does not normally consider buying>Price: varies>Promotion: aggressive advertising and personal selling by the producer and resellers

What is the difference of the three levels of Products - Core, Actual or Augmented? Give an example by using Apple iPad.

-Core: customer value; at the most basic level, the company asks, "What is the customer really buying"; the problem-solving benefits or services>Apple iPad ex: people who buy it are buying entertainment, self-expression, productivity, and connectivity; a mobile and personal window to the world -Actual: brand name, features, quality level, packaging, design>Apple iPad ex: all features have been carefully combined to deliver the core customer value of staying connected -Augmented: delivery and credit, product support, warranty, after-sale services>Apple iPad ex: provides consumers with a complete connectivity solution; give customers warranties, quick repair services, and info sites to visit; Apple apps

Describe the four Brand Development Strategies - Line extensions, Brand extensions, multi-brand and new branding - and when you would use each?

-Line Extensions: extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category>company might introduce line extensions as a low-cost, low-risk way to introduce new products; might want to meet consumer desires for variety, use excess capacity, or command more shel space from resellers -Brand Extensions: extending an existing brand name to new product categories>create immediate new -product familiarity and acceptance at lower development costs-Multibranding: marketing many different brands in a given product category>offers a way to establish different features that appeal to different customer segments, lock up more reseller shelf space, and capture a larger market share -New Branding: creating a new brand name entirely for new product lines>used when company enters a new product category for which none of its current brand names is appropriate

There are many challenging decisions involving brands - positioning, name selection, sponsorship and development. Give examples of each these decisions.

-Positioning: attributes, benefits, beliefs/values> Whirlpool positions major home appliance products on attributes such as quality, selection, style, and innovative feature; benefits such as taking the hastle out of cooking and cleaning, better energy savings, or more stylish kitchens; beliefs/values such as "Every Day Care" campaign based on warm warm emotions of taking care of people you love with their appliances -Name Selection: selection, protection>Kleenex chose a name that is simple and makes intuitive sense (Clean-Ex). They then build a brand name that eventually became identified with the product category. To protect their brand from being erased by generic use of their name, Kleenex uses a registered trademark symbol after its name along with the words "Brand Tissue." -Sponsorship: manufacturer's brand, private brand, licensing, cobranding>Kellog sells its output under their own name (Kellogg's frosted flakes); Kroger have private brands it only sells in its stores (Heritage Farm, Simple Truth); Disney lines the rights to sell merchandise featuring its characters such as princesses, and heroes; Taco Belle and Doritos came out with the Doritos Locos Tacos -Development: line extensions, brand extensions, multi brands, new brands>Doritos has over 20 different types of chips/flavors; Vick's came out with NyQuil and ZzzQuil; PepsiCo markets at least 8 brands (Pepsi, Sierra Mist, Mountain Dew, Manzanita Sol, IZZIE, Tropicana Twister, Mug toot beer); Toyota created the Lexus brand aimed at luxury car consumers and the Scion brand targeted millennial consumers

Explain the five decisions on has to make about individual product marketing - Product Attribute, Branding, Packaging, Labeling/ logos and Product Support services?

-Product Attribute: developing a product or service involves defining the benefits it will offer such as quality, features, and style/design>Product Quality: the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs; two dimensions are level and consistency>Product Features: a competitive tool for differentiating the company's product; need to assess the value of each potential feature>Product Style and Design: style is simply the appearance of the product; design goes to to the very heart of a product and begins with observing customers, understanding their needs, and shaping their product-use experience -Branding: a name, term, sign, symbol, or design, or combination of these, that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors.> helps consumers identify products, represent product quality and consistency, provide sellers advantages, and it is the basis on which the whole story can be built about a product's special qualities -Packaging: the activities of designing and producing the container or wrapper for a product> creates immediate brand recognition and boost sales -Labeling/Logos: label identifies the product or brand, describes several things about the product, and promotes the brand and engage costumers>companies must take care when changing brand symbols because customers may react strongly to change -Product Support Services: important part of customer's overall brand experience> need to send out surveys to assess value; use mix of phone, email, online, social media, mobile, and interactive voice and data technologies to provide support services

Why is the question, "What is a Product?" not so simple to answer?

-Product: anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or a need -not so simple to answer because products include more than tangible objects; they include services, events, persons, places, organizations and ideas, or a mix of all of these things. -Service: an activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything

What are the Pros and Cons of having your brand become "generic" like Kleenex or Band-Aid?

-Pros: generates great brand recognition; gives company competitive edge -Cons: may threaten company's rights to the name by making it too generic; may erase all of the company's hard work over the years

What is the purpose and use of a Brand Logo and why are some companies doing "makeovers"?

-Purpose and Use: identifies the product or brand, describes several things about the product, and promotes the brand and engage consumers -Makeovers: companies are doing makeovers because they are evolving their brands/products to the point where their products are no longer reflected in their old logos (ex: Gap)

Why is "internal marketing" so important in the "services" business?

-Service: an activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything -Internal Marketing: orienting and motivating customer-contact employees and supporting service employees to work as a team to provide customer satisfaction - important because it gets everyone in the organization to be customer centered by preceding external marketing

Organizational marketing programs are conducted by many companies to enhance their corporate image and their brand. What is "Social Marketing" and how does it help a company?

-Social Marketing: the use of traditional business marketing concepts and tools to encourage behaviors that will create individual and societal well being -Helps a company because it shows consumers that they care about more than just gains or losses. Consumers respect company more and thus have more loyalty for them

International product and service Introduction must consider several critical issues. Name several issues and what the risks when introducing those products in other countries or regions.

-They must figure out which products and services to introduce to which countries -They must decide how much to standardize or adapt their products and services for world markets -International expansion is different from industry to industry. Globalizing banking has set precedence while globalizing retail is a bit different.

Describe the different segmentation strategies in either the beverage market (Coke v Pepsi) or retail store business (Walmart, Target, Sears, J C Penney), or Autos (figure 7.3) and how they chose to compete? Why does segmenting establish a brand and image with consumers and customers, and what is the advantage or disadvantage?

1. Figure 7.3*** 2. Prices are similar, but vehicles are differentiated by their luxuries and performances

Because of change in technology and access, how has "micromarketing" and "local marketing" become possible and more common? Is "Individual" or "hypertargeting" possible and good?

1. Micromarketing = Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments: it includes local marketing and individual marketing 2. Local Marketing = Tailoring brands and marketing to the needs and wants of local customer segments - cities, neighborhoods, and even specific stores 3. Companies can now track consumers' whereabouts closely and engage them on the go with localized deals and information fast, wherever they may be1. SoLoMo (Social + Local + Mobile) Marketing 4. Individual Marketing = Tailoring products and marketing programs to the needs and preferences of individual customers 5. Can be risky with data usage (Target example) 6. Many people find it helpful though

What is a "Positioning Statement" and why is it important

1. Positioning Statement = A statement that summarizes company or brand positioning using this form: To (target segment and need) our (brand) is (concept) that (point of difference) 2. The case for the brand's superiority is made on its points of difference 3. States the product's membership in a category and then shows its point of difference from other members of the category

Name the four steps of Market research. Why is Step 1 most critical?

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 1 - The most difficult but most important because it guides the entire process. Need to see you're addressing the right problem and using your resources for the right reasons

What is a "Product Positioning" map and what does it tell you about how a company wants to work with their target market?

1. Product Position = The way a product is defined by consumers on important attributes - the place it occupies in consumers' minds relative to competing products 2. A product's position is the complex set of perceptions, impressions, and feelings that consumers have for the product compared with competing products 3. Different positions indicate different target markets1. Example: Lexus LX570 and Toyota Land Cruiser are meant for different people

Companies and Brand Managers look for competitive advantage through a "differentiation" strategy and careful product positioning. Give an example of how they might implement this type of strategy and development of their product's image/ essence.

1. The differentiation and positioning process has three steps1. Identifying a set of differentiating competitive advantages on which to build a position 1. 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 2. Needs to not only offer but deliver on promises 3. Product Differentiation can separate products through features, performance, or style and design 4. Service Differentiation can be through speedy, polite, and convenient service 2. Choosing the right competitive advantages1. Usually the fewer the better for competitive advantages to promote 2. Which Differences to Promote? 1. Important = The difference delivers a highly valued benefit to target buyers 2. Distinctive = Competitors do not offer the difference, or the company can offer it in a more distinctive way 3. Superior = The difference is superior to other ways that customer might obtain the same benefit 4. Communicable = The difference is communicable and visible to buyers 5. Preemptive = Competitors cannot easily copy the difference 6. Affordable = Buyers can afford to pay for the difference 7. Profitable = The company can introduce the difference profitably 3. Selecting an overall positioning strategy1. Value Proposition = The full positioning of a brand - the full mix of benefits on which it is positioned 2. Winning Value Propositions:1. More Benefits for More Price 2. More Benefits for the Same Price 3. More Benefits for Less Price 4. The Same Benefits for Less Price 5. Less Benefits for Much Less Price 3. Losing Value Propositions 1. The same Benefits for More Price 2. Less Benefits for More Price 3. Less Benefits for the Same Price

A "Value Proposition" is written to communicate Brand image to the "intended" target market. What are the key elements of a value prop?

1. Value Proposition = The full positioning of a brand- the full mix of benefit son which it is positioned 2. Key elements are benefits and price

Harley Davidson has a very specific target market and segment that they have worked with for the past 60 years. What challenges are they having as their demographic and customers change and age?

2. They do not have many women/minority consumers 3. There challenge is finding a way for these people to buy their products 4. Very loyal consumer base

straight rebuy

A business buying situation in which the buyer routinely reorders something without modifications.

When might a business desire fewer customers over more customers in developing their marketing plans?

A business may desire fewer customers to really focus on building loyalty. There are certain types of customer relationship groups, and one of the ideal groups is the true friends group, which includes customers that are loyal and profitable. This may be a small number of customers overall, but the profitability makes it worthwhile.

What is a Buying Center? How do business use them and why is it important for marketing to understand the dynamics of the Process? Who are the participants?

A buying center is all the individuals and units that play a role in the purchase decision-making process. It is important to understand this process because within the process there are various ways in which this process can take place; it is far from fixed. Additionally, the business marketer must learn who participates in the decision, each participant's relative influence, and what evaluation criteria each decision participant uses• Participants: Users-must use product/serviceInfluencers-provide information for evaluating alternative products Gatekeepers- control the flow of information to others Buyers- contact the selling organization and place the order Deciders- final authority to purchase

Before one can develop a good Marketing Strategy, it is important to perform a "Situational Analysis. What are the key components when studying the Internal and External business environment?

A situational analysis is the study of the internal and external factors that affect marketing strategies. Internal business environment studies should examine the way in which employees are treated and developing systems that provide them with benefits to ensure good quality of work. External business practices emphasize the output of the business and focuses on establishing productive customer relationships

How does a "value proposition" help the working relationship in a marketing exchange?

A value proposition is the set of benefits or values a company promises to deliver to consumers to satisfy their needs. This helps the working relationship in a marketing exchange because it establishes a sense of trust between consumers and companies when the promised benefits and values are consistently delivered.

What are the five types of "Influencers"? What can go wrong with celebrity endorser's strategy?

Advocate, ambassador, citizen, professional occupational, and celebrity- if someone doesn't like the celebrity or there is a scandal, it may affect your product's sales even if completely unrelated. Also if celebrities are discovered to not actually use your products.

Why does "post-purchase dissonance" and "cognitive" dissonance occur to many buyers?

After purchase the consumer will be either satisfied or unsatisfied with their purchase. Post purchase behavior is the stage of the buyer decision process in which consumers take further action after purchase based on their satisfaction or dissatisfaction. Almost all purchases however end in cognitive dissonance, or discomfort caused by post purchase conflict. This is because every purchase involves compromise Consumers feel happy about acquiring the benefits of the chosen brand but sad about losing the benefits of the unchosen brand. Therefore, they experience post purchase dissonance for every purchase.

Airbnb has a successful business model that use all four characteristics of service. What do they do to make sure they are in tune with their target market?

Airbnb has a target market that is tired of staying in the standard hotel room. Airbnb has the catch line that they have millions of rooms with no two alike. They ensure that the process is incredibly simple for all parties involved and maintain the quality of everything that is offered.

"Alternative Buying Evaluation" is an important process brand marketing teams must study. Why and what would one learn?

Alternative evaluation is the stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set. During this stage, consumers evaluate all of their product and brand options on a scale of attributes which have the ability to deliver the benefit that the customer is seeking.

How has "Artificial Intelligence" changes to B2B marketing environment for the better? What new capabilities will AI provide to B2B players?

Artificial intelligence learns about you and your behavioral patterns - starbucks mobile app knows your order etc.

Niche or concentrated marketing has great advantages. What is the good and bad consequences of picking it as your product strategy?

Concentrated (niche) marketing is a market-coverage strategy in which a firm goes after a large share of one or a few segments or niches. The good consequences of picking this as your product strategy is that since the firm focuses on being knowledgeable about a specific niche, they are better equipped to serve them. The bad consequences include that it is higher risk to rely on a niche because if they fail they have only marketed to a very small group.

Many things effect a "Buying Decision". "Attitude of Others" and "Unexpected Situational factors" occur that might alter your choices. What are they and how can they have you change?

Attitude of others is the idea that if someone important tells you to buy car A, then the likelihood of you buying car B are significantly reducedUnexpected situational factors are things that occur that were not expected-economic decline, job loss, competitor drops prices, friend reports being disappointed with a car. Therefore, preferences and purchase intentions do not always result in purchase choice.

How does B2B Sales handle segmentation?

B2B sales focuses on what the other businesses needs to improve operations. For example, Starbucks is in the office place so they need coffees and teas that are easily accessible in the office rather than having to run to Starbucks to buy one-break rooms are perfect to target.

What are the changes seen for marketing because of "Environmentalism, sustainability and social responsibility" as reflected in their branding and product development?

Because of environmentalism, sustainability, and social responsibility, companies have to be very careful about producing and packaging their products in a way that is not wasteful or harmful to the environment. Increased pressures for social responsibility may also lead to an increase in cause-related marketing.

Marketers' roles in New Product Development might include testing by the consumer of new products. What advantage does involvement by the marketer have for the Process?

Concept testing allows the company to gauge consumer interest in various products and proceed with the product that is deemed most favorable by consumers

The chapter talks about "Brand Essence". What is it and why is it vital for a company to understand it? How is brand essence best communicated?

Brand essence is the heart and soul of a brand. It is vital to understand because it includes the physique, personality, culture, self-image, reflection, and relationships of the brand. Brand essence is best communicated through consistent messaging from the brand (**)

How is a brands' value determined and why is it important? What is brand equity?

Brands represent consumers' perceptions and feelings about a product and its performance. Brand Equity: the differential effect that knowing the brand name has a customer response to the product and its marketing.

Questionnaires can be misleading when using open-ended or closed ended questions. Give an example.

Close-ended questions include all of the possible answers and subjects make choices among them. Open-ended questions allow respondents to answer in their own words. Open-ended questions tend to give more information than close-ended. Wording and order is highly important to ensure that the questions are not misleading.

Why would someone want to "Co-Brand" their product and what are the potential problems?

Co-branding joins two or more well-known brands in common products. Advantages: strength of each brand supports the other, opens up new markets, lower marketing communication costs. Disadvantages: loss of control, negative effect if one brand has a problem, overexposure

What is the difference between types of Consumer products - Convenience, Shopping, Specialty or Unsought - and their Pricing and Promotion?

Convenience: frequent purchase, little planning, low involvement, low price, mass promotion ex: toothpaste Shopping: less frequent purchase, much planning & comparison, higher price, advertising and personal selling by producer & retailer ex: major appliances, TV, clothing Specialty: strong brand preference and loyalty, special purchase effort, little comparison of brands, low price sensitivity, high price, more carefully targeted promotion ex: luxury goods, Rolex Unsought: little product awareness or knowledge, price caries, aggressive advertising and personal selling ex: life insurance

What is the difference of the three levels of Products - Core, Actual or Augmented? Give an example by using Apple iPad.

Core: what the buyer is really buying, core benefit or services consumers seek. Apple - buying entertainment, self-expression, productivity, and connectivity. Actual: turns core benefit into an actual tangible product. iPad - its name, parts, styling, operating system, features, packaging, and other attributes Augmented: built around the core benefit and actual product by offering additional consumer services and benefits. Apple iPad - warranty, quick repair services, web, and mobile sites for problems, apps & accessories.

What is the value of the "Lexus Covenant" for communicating with their customers?

Covenant: create finest cars ever built, yet, but also treat each customer "as we would a guest in our own home." Improves the customer satisfaction ratings; customers like all that Lexus provides, become customers for life

What is the "B-Dub" Experience? How is it maintained? Name three things they are doing right?

Customer driven strategy - appeals to sports fans, makes environment sporty, stays consistent, builds community

"Customer Lifetime Value" and "Customer Equity" are two vital concepts each company needs to understand. What implications do they have for building marketing plans and strategy

Customer lifetime value is the entire stream of purchases a customer makes over a lifetime of patronage. Customer equity is the total combined customer lifetime values of all the company's customers. These concepts have implications that when building marketing plans and strategy, marketers should consider building customer loyalty by paying attention to long-term factors that could influence the wants, needs, and demands of their consumers.

Customer Relationship Management relies on good measurement of "Touchpoints". What is a Touchpoint Analysis and what does one discover from a TPA?

Customer relationship management: managing detailed info about individual customers and carefully managing customer touch points to maximize loyalty A touchpoint analysis includes customer purchases, sales force contacts, service and support calls, web and social media site visits, satisfaction surveys, credit and payment interactions, and market research studies. Can obtain information about customer loyalty and building relationships

What is the purpose and use of a Brand Logo and why are some companies doing "makeovers"?

Customers attach meaning to brand and develop brand relationships. Companies do makeovers to enhance brand relationship with consumers and to make brand more accessible on electronic devices, stay modern

International Business Machines has shifted from a technology maker to a service provide over the past twenty years. Why?

Doing international business requires knowledge of customs and culture in order to form strong relationships

Business to Business Social Media and Buying Process is rapidly changing. How is it being altered by the Internet and the Connected-world?

E-procurement: online purchasing has grown rapidly in recent years; shaves transaction costs and increases efficiency Reverse auctions: put purchasing request online--suppliers bid Trading exchanges: companies work collectively to facilitate the trading processCompany buying sites: post buying needs and invites bids, negotiates terms, and places orders B-to-B digital and social media marketing: uses these to engage business customers and manage customer relationships anywhere, anytime Targets individuals in businesses who affect buying decisions

Idea Generation is the life-blood of New Product Development and internal sources, external ideas, Crowd-Sourcing are all methods for new products to be introduced. How did Under Armour get new ideas from their "Future Show" method? How does Bose do it?

Entrepreneurs are invited to Under Armour to pitch ideas to the company. Bose however, starts from scratch rather than looking at what competitors are doing and seeing if they can enhance it. They aim to create completely unique products with high quality

Define "Marketing Mix" and why is it important to a strategist to understand?

Marketing mix is the set of tactical marketing tools - product, price, place, and promotion - that the firm blends to produce the response it wants in the target market. It is important for a strategist to understand because it covers the different segments of marketing that marketing strategies must consider.

What is a "Focus Group" and why would you use one?

Focus group interviewing is personal interviewing that involves inviting small groups of people to gather for a few hours with a trained interviewer to talk about a product, service, or organization. The interviewer focuses the group discussion on important issues. Gain fresh insights into thoughts and feelings, observing facial expressions, body language, conversation flow.

What is "generational marketing" and what are the good points and bad points of this approach?

Generational marketing is a way of segmenting people by lifestyle or life stage rather than simply by age. This is good because it allows brands to cater to the needs of different generations and get in touch with their consumers on a deeper level by understanding what their wants needs and demands are based on their current stage in life. Bad aspects of this approach are that not every generation will be able to relate to one another, so it is important not to exclude certain generations from the market. Also younger generations such as generation alpha are very susceptible to messaging and generational marketing can be manipulative and exploitative for those groups of consumers.

Does it make a difference if there has been a "geographic shift" in the country for marketing brand managers to consider in their marketing planning?

Geographic shifts do make a difference in marketing planning because growth in certain regions will change a brand's marketing plans since people of different regions lead different lifestyles and therefore have different needs, wants, and demands. More people work from home now.

Why is it important to understand whether a customer's state of desire for an offering is either in "needs, wants or demands" state?

It is important to understand whether a customer's state of desire is in needs, wants, or demands because needs are simply states of felt deprivation, wants are the form human needs take as they are shaped by culture and individual personality, and demands are wants backed by buying power. It is important to understand the difference between each influences one another: needs become wants and wants become demands. Demand is the state of desire that has buying power, so that is the ultimate goal - to satisfy demands, but this cannot be done without understanding needs and wants.

What is the difference between product idea, product concept and a product image?

Idea: is an idea for a possible product that the company can see itself offering to the market Concept: a detailed version of the idea state in meaningful consumer terms Image: the way consumers perceive an actual or potential product

Why was Alphabet formed by Google to help their new product develop management?

In the technology industry, revolutionary ideas drive the next big growth areas, you need to be uncomfortable and continuously growing to stay relevant. Alphabet was created so that Google could pursue a number of different ideas and manage them as if they are unrelated. Basically to allow them to do all the different things they want to do without managing it all under one company

The term "Value" is relevant to different people but it makes for a challenge for a marketing team. Why is it key to understand the many different types of value in product selection?

It is ket to understand the different types of value because there are three levels of value that are necessary to truly put out the best products to ensure customer satisfaction. The first level of value is personal value which considers income, career, and workload for personnel. This is often implemented by increased bonuses, opportunities for promotion, etc. The second level of value is business value which takes into consideration revenue, costs, and services. This is often increased through improved revenue, market share, decreased cost of goods sold, etc. The third level of value is technical value which takes into consideration processes, systems, and people. This can be improved by the automation of manual processes, improved performances, improved reliability, etc.

What does it mean to "Commercialize" a product? What role does marketing play in the process?

Introducing a new product into the market; comes with high costs. Marketing play an influential role, deciding advertising, timing of introduction and where to launch the product

The "New Product Screening" process says one should ask three questions - R, W, W. This stands for - Is it real? Can we win? Is it worth doing? What does this mean?

Is it real? Is there a real need and desire for the product and will consumers buy it? Is there a clear product concept and will such a product satisfy the market? Can we win? Does the product offer a sustainable competitive advantage? Does the company have the resources to make a product a success? Is it worth doing? Does the product fit the company's overall growth strategy? Does it offer sufficient profit potential? The company should be able to answer yes to all three questions before developing the new product idea further.

Is "Behavioral and Social Targeting" an acceptable why to market to the individual In a b2C strategy? What is god about it and what is controversial?

It is acceptable. It is good because it allows businesses to analyze the actual personalities and consuming behavior patterns of their consumers and tailor their marketing strategies to best accommodate them. It is controversial because it can be seen as invasive and intrusive to privacy as well as manipulative and exploitative to certain groups.

How should Marketing Departments and Public Relations' handle a "crisis situation"?

It is imperative that Public Relations and Marketing work together as they are both the external representation of the company. If their missions do not align, then they are presenting the public with a fractured company image. A company must look as put-together in a crisis as possible to strengthen shareholder confidence

As the economy shift, why is income distribution important to understand as income levels?

It is important to understand income distribution because one marketing environment that marketing executives must consider is the economic environment which basically means that they must understand the economic factors that affect consumer purchasing power and spending patterns. The rich have grown richer, the middle class dwindles, the poor grow poorer. Gucci targets affluent people while Dollar Tree targets lower income people.

Lifestyle might be the most accurate way to study and identify groups. Why is it becoming so very important when you study a consumer behavior market?

Lifestyle is a person's pattern of living as expressed in his or her activities, interests, and opinions. It shows customers values and how they affect buyer behavior. Marketeers look for lifestyle segments with needs the can be served through special products or marketing approaches.

Describe the four Brand Development Strategies - Line extensions, Brand extensions, multi-brand and new branding - and when you would use each?

Line Extensions: company extends existing brand names to new forms, colors, sizes, ingredients, or flavors of existing product category. ex: KFC offers different kinds of chicken. Brand Extensions: extends current brand name to new or modified products in a new category ex: Nest, market of thermostats, extends brand name into smoke alarms Multibrands: companies often market many different brands in a given product category ex: PepsiCo markets Pepsi, Sierra Mist, Mt. Dew, Gatorade, bottled Starbucks, Aquafina, etc. New Brands: company might believe that the power of existing brand name is wanting new brand name is created or creates a new brand name to enter product category where none of the current brands are appropriate ex: Toyota creates lexus

Dole Foods conducts a rigorous Procurement Process and requires their suppliers to perform many tasks to qualify as a source for food. Why is that so important for their business and how do they insure they keep improving as a company?

Maintains product quality--quality assurance; upholds brand image of quality • Make suppliers meet rigorous standards and always have at least three at a time in case there are any issues in the supply chain

How does "marketing myopia" effect a sellers' ability to deliver value to their customers?

Marketing myopia is the mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products. This diminishes sellers' ability to deliver value to their customers because the best marketing strategies (Disney Parks, Shinola, etc.) consider each step of the consumers' buying process to ensure ultimate customer satisfaction.

What is "Market Segmentation" and why is it an important first step?

Market segmentation is dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes. This is an important first step because markets can be large and diverse and breaking them down into smaller more accessible segments can help with that.

"Targeting" your audience helps a company in many ways. How is it necessary for a Marketing Strategy to have a statement and focus on a target?

Market targeting is evaluating each market segment's attractiveness and selecting one or more segments to serve. A target market consists of a set of buyers who share common needs or characteristics that a company decides to serve. This helps guide the marketing strategy because once segmentation is complete, it is necessary to decide which target markets are the most worthwhile.

In developing a "Marketing Strategy Statement, what does a developer include in their initial proposal?

Marketing Strategy Development: designing an initial marketing strategy for a new product based on the product concept Three parts: 1 - Describes the target market; the planned value proposition; and the sales, market share, and profit goals for the first few years 2 - Outlines the product's planned price, distribution, and marketing budget for the first year 3 - Describes the planned long-run sales, profit goals, and marketing strategy

What different groups or ideas are present in a "Marketing Information Systems"?

Marketing information systems are people and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights.

"Customer Insights" are achieved through market research, touchpoint analysis, primary and secondary collection and competitive intelligence? Define how each are conducted and the value of each method.

Marketing research is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization. Insight into customer motivation, purchase behavior, market potential, market share, effectiveness of pricing, product, distribution and promotion activities. Touchpoint analysis: companies use big data to analyze every contact between a customer and company.Customer purchases, sales force contacts, calls, visits, surveys, interactions. Primary data is information collected for the specific person at hand. Need to design a plan for research approaches, contact methods, sampling plans and research instruments.Observations, surveys, experiments Secondary data is information that already exists somewhere, having been collected for another purpose. Researchers usually start here. Company's internal database or internet search engines.Can put a wealth of information but can be inefficient due to so much information. Can be obtained quicker and at a lower cost. Need to make sure it is relevant, accurate, current, and impartial. Competitive marketing intelligence is the systematic monitoring, collection, and analysis of publicly available information about consumers, competitors, and developments in the marketing environment. Understanding the environment, tracking competitors and providing early warnings of opportunities/threats.Can be done firsthand by observing, quizzing, monitoring social media buzz.

casual research

Marketing research to test hypotheses about cause-and-effect relationships

Requirements for Effective Segmentation

Measurable: The size, purchasing power, and profiles of the segments can be measured. Accessible: The market segments can be effectively reached and served. Substantial: The market segments are large or profitable enough to serve. Differentiable: The segments are conceptually distinguishable and respond differently to different marketing mix elements and programs. Actionable: Effective programs can be designed for attracting and serving the segments.

Google Moonshot has a development process that is unique? Describe the process.

Moonshot seeks to make the impossible possible. No idea is a bad idea, the company pursues, or at least considers, a great number of projects with the knowledge that only a few, if that, will ever come to market. They also have people from a variety of backgrounds and don't put so much pressure on them to not fail, almost encourage failures to learn

How has the "Internet Revolution" effected marketing and what changes have come about?

More emphasis on social media- can make or break a brand and needs to be paid attention toAlso big data, using this info to market to customers and to research

Netflix uses analytics to help improve customer satisfaction. What do they do?

Netflix has a customer database from which it can send recommendations and develop exclusive content to serve customers betterUse real-time data like ratings, searches and plays, also looks at social media and ratings

What is the NIKE + campaign and why was it successful?

Nike Running/Training Club - creates community

Nike is one of the most innovative companies in Marketing? Describe their approach and key to success.

Nike experience - just do it, high quality shoes, cause-related marketing, nike experience (training club), endorsements, ads etc.

What is NIKE' formula for success and what can be learned from studying the use of Marketing tools and strategy to differentiate themselves in the shoe industry?

Nike's formula for success is emphasizing success, perpetuating comeback stories, and standing behind the take a knee movement. They endorse professional teams and have coined the just do it slogan.

Zappos successfully re-thought the "Telesales" model and adopted the "Deliver Happiness" theme to their clients. What was their secret of success in this new model

Offers superior customer services by pleasing employees - " taking care of those who take care of customers" but also encourage people to call if there are any issues, no script, no supervisor approval, hire people who genuinely want to work there, and train and treat them well.

ECO-Dot by Amazon is a new platform for marketing into many homes. What are the Pros and Cons of this type of marketing and the effect it might have on the Family?

Pros - becomes more personal, can suggest products in every day life, convenience leads to more purchases made through amazon cons - children are too young to discern what is real messaging and what is marketing messaging

How does Qualtrics fit in with the big data trend?

Qualtrics IQ uses AI to automatically identify trends in responses to surveys

Proctor and Gamble are Strong Advocates of treating their Customers like Partners. What are they doing to demonstrate that and how do they make sure their Clients are successful?

P&G's CBD structure makes sure that everyone is taken care of. The article says they are treating customers as "strategic partners," which in effect is true, but more so this program lets them treat customers as family. Rather than focus solely on the sales of P&G products, P&G CBD team makes sure that the stores are selling as many products as they can-even if those are competitors' products. They are focusing on "mutually beneficial relationships" so they can both improve their sales and respective customer relations.

Is perception more important than reality in marketing? What makes a "Complex buying" process different?

Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world. Consumers undertake complex buying behavior when they are highly involved in a purchase and perceive significance differences among brands. consumers may be highly involved when the product is expensive, risky, purchased infrequently, and highly self-expressive. Complex buying behavior is consumer buying behavior in situations characterized by high consumer involvement in a purchase and significant perceived differences among brands.

There are many challenging decisions involving brands - positioning, name selection, sponsorship and development. Give examples of each these decisions

Positioning position brands clearly in target customers' minds ex: Walmart positions on benefits (saving money) Name Selection: good name adds greatly to product's success ex: suggests benefits (snapchat), easy to remember (iPad), distinctive (Panera), extendable (Amazon book seller to general retailer), translate easily to foreign languages Sponsorship: four options: - National Brands/Manufacturer Brands: Samsung sells output under brand name - Private Brands/Store Brands: Kirkland - Licensed Brands: Kodak sells its brand to camera manufacturers - Co-Branding: two established brand names of different companies are used on the same product - Benjamin Moore paint colors and Pottery Barn join forces Development: line extensions, brand extensions, multibrands, and newbrands

Describe the steps in the typical B2B Buying Process.

Problem recognition- Someone in the company recognizes a problem or need that can be met by acquiring a specific product or service. • General need description- Describes the characteristics and quantity of the needed item • Product specifications- Determines the best product characteristics (based on cost/durability/quality) • Supplier search- involves compiling a list of qualified suppliers to find the best vendors• (RFP- request for proposal) Proposal solicitation- is the process of requesting proposals from qualified suppliers A QA process is a quality assurance test to make sure the products meet all of the specifications and looks for any mistakes. • Supplier selection- is when the buying center creates a list of desired supplier attributes and negotiates with preferred suppliers for favorable terms and conditions • Order routine specification- The buyer writes the final order with the chosen suppliers, listing the technical specifications, quantity needed, expected time of delivery, return policies, and warranties • Performance review: May lead buyer to continue, modify or drop the arrangement (A performance review is when the buyer assessed the supplier and considers the future)

What is the PLC - Product Life Cycle and why is it important to understand?

Product Life Cycle: the course that a product's sales and profits take over its lifetime; five distinct states: 1 - product development: company finds and develops a new product idea, sales are zero 2 - introduction: period of slow sales growth as the product is introduced into the market, profits non-existent 3 - growth: period of rapid market acceptance and increasing profits 4 - maturity: period of slowdown in sales growth because of increased marketing outlays to defend the product against competitors 5 - decline: period when sales fall off and profits drop

Define what is the "Product Mix" or sometimes called "Product Portfolio Mix".

Product Mix: the set of all product lines and items that a particular seller offers for sale

What is the difference between a Product-Oriented and a Marketing Oriented description of a company?

Product orientation is when businesses focus on products and develop goods based on what it is good at doing. Market orientation is when the business focuses on the market and responds to the needs and wants of the market.

What is "real-time" marketing and give an example of how advertisers are practicing it

Real-time marketing is the creation and execution of an instantaneous marketing message in response to and in conjunction with an occurrence during a live event. An example of real-time marketing is Wendy's free chicken nugget retweet campaign on twitter. A Wendy's customer tweeted Wendy's asking how many retweets it would take to get free chicken nuggets for a year, and Wendy's swiftly responded saying 18 million. Other brands and celebrities began retweeting to help this customer, and the tweet broke records for the most retweeted tweet.

What makes "Cause-related" marketing programs effective and successful in trying to create partnership and new donors? Give some examples.

Shows that brands care about or at the very least support more causes than simply profit. Makes consumers feel like they are also contributing to a good cause when engaging with cause-related brands. Ex. Aerie's #AerieReal campaign

Organizational marketing programs are conducted by many companies to enhance their corporate image and their brand. What is "Social Marketing" and how does it help a company?

Social Marketing: marketing of social ideas; consists of using traditional business marketing concepts and tools to encourage behaviors that will create individual and societal well-being. Improves brand image and favorability to consumers

"Social Media has gotten nasty". Give an example. Why? Should there be restrictions?

Social media gives consumers instantaneous access to speak badly about an experience. An example of this could be if a passenger of a particular airline has a bad experience, they can easily tweet about it immediately. McDonald's once tried to start a hashtag trend on twitter but it was quickly infiltrated with trolls saying negative things about the company. Social media marketing can be good for holding businesses accountable, but it can also be very bad when things get blown out of proportion before a brand has the chance to respond.

Style, fashion, fad... how does time differ for each?

Style: a basic and distinctive mode of expression ex: home styles such as colonial, ranch, etc. lasts for decades or generations passing in and out of vogue. Fashion: currently accepted or popular style in a given field. Ex formal business attire of corporate dress in 80s and 90s gave way to the business casual look of the 2000s and 2010s. Fad: temporary periods of unusually high sales driven by customer enthusiasm and immediate product or brand popularity ex: pet rocks. Fads last the shortest

How does "subculture" play a role in understanding the Consumer?

Subculture is a group of people with shared value systems based on common life experiences and situations. This includes nationalities, religions, racial groups, and geographic regions.

TESLA is a good example of how Competition is not a zero sum game. Why do they need to develop an infrastructure and network with their competitors in order to be successful in the electric car market?

TESLA pays nothing for marketing - purely word of mouth. CEO Elon Musk has a large public following. Niche-marketing strategies market toward affluent technology enthusiasts. Skimming - they do not market toward people that cannot afford their products. Prestige marketing - they charge a lot for specific products, but people who stand behind it will buy it anyway. Must get outside of stigma of being elitist, and must anticipate and prepare for competition in the electrical vehicle market.

The "Rate of Product Adoption" varies from person to person. Why is that and where does one usually profile? Name the five stages or types of adopters.

The adoption process is the mental process through which an individual passes from first hearing about an innovation to final adoption. The stages of the adoption process: 1. awareness - consumer becomes aware of new product 2. interest - consumer seeks information about new product 3. evaluation - consumer considers whether trying new product makes sense 4. trial - consumer tries new product on a small scale 5. adoption - the consumer decides to make full use of the new product Five Types of Adopters: Innovators (venturesome, first 2.5%), Early Adopter (adopt early and carefully, 13.5%), Early Mainstream (deliberate, 34%), Late Mainstream (skeptical-wait for others to try, 34%), Lagging Adopters (tradition-bound, 16%) Five Characteristics of Innovation's 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 consumers 3. complexity - the degree to which the innovation is difficult to understand or use 4. Divisibility - the degree t 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

What decisions must be made in the Growth Stage of the PLC to extend the life of a product?

The company should consider modifying the: - market: increase consumption by finding new users and new market segments - product offering: changing characteristics such as quality, features, styles, etc. to retain current users or attract new users - marketing mix: improving sales by changing one or more marketing mix elements, such as offering new or improved service, cut prices, etc.

MOM as Brand Ambassador's programs have been very successful. What is the good news and bad news for a company to use this approach in their marketing? Use McDonalds, Disney or Walmart Moms Ambassador approach.

The good news is that many moms are willing to do this for few perks and no actual compensation. The other good news is that as primary purchasers for many families, people trust the testimony of moms. The bad news is that moms are also brutally honest, and if they are not satisfied with a product or service, they will also express that readily.

Why is it important to study the Micro and the Macro environment?

The microenvironment is the actors close to the company that affect its ability to serve its customers - the company suppliers, marketing intermediaries, customer markets, competitors, and publics. The macroenvironment is the larger societal forces that affect the microenvironment - demographics, economic, natural, technological, political, and cultural forces. It is important to study these factors because without studying the microenvironment, the company may not be able to foresee threats to their brands, and the macroenvironment is important to study because it helps the brands stay in touch with what is going on in the world and can help them better target the consumer groups they wish to target.

Ordering and wording can skew a questionnaire. How does it do that?

The order of questions should be logical and start out more general transitioning to more personal so that respondents do not becoming defensive.Should be simple, direct and unbiased.

cluster (area) sample

The population is divided into mutually exclusive groups (such as blocks), and the researcher draws a sample of the groups to interview.

What is a "Supplier Development" program like DOLE practices and why is it important tool to improve your business process.

The stage of the business buying process in which the buyer reviews proposals and selects a supplier or suppliers based on the proposal submissions Cargill provides their customers with research on the trends in the market to assist them with selling. Important in showing the customer that you care that they go on to sell your inventory. Its a continued relationship.

How does Chick-Fil-A distinguish themselves from other brands?

They are a chicken restaurant that has a smaller menu that does not change frequently. The quality of their food is higher quality than most fast food restaurants. They are focused on creating a brand image that emphasizes caring for their customers. Their ad campaigns rarely feature the food itself. Rather it features customers telling stories of how employees had an impact on them and treated them like family.

Aldi's has a very precise Brand Differentiation for their stores as they try to reach their target market. What is it and how have they implemented it.

They have a far more no-frills approach than most grocery stores. They make them bring their own bags, bag their own items, and store their own carts. They make customers select from a smaller selection of around 1400 items opposed to their typical competitor's 30000

How was GoPro successful when they redefined their products with experiences?

They were very successful. Their commercials now show footage of people skiing, snowboarding, in the water, really all over the world having these incredible experiences and their raw emotions. This made their product and offering that enables consumers to tell stories and share the emotions and moments of their lives, not just sell cameras.

Five Force Model by Michael Porter analyzes the broader scope of an industry and its' competitors? Why is this important and vital for a Chief Marketing Strategist to consider?

This approach is important for a Chief Marketing Strategist because it considers the different ways that competitors can impact a company. This includes threat of new entrants which consists of economies of scale, product differentiation, capital requirements, etc., rivalry among existing firms which consists of the number of competitors, relative size of competitors, industry growth rate, etc, threat of substitute products which consists of relative prices of substitutes, relative quality of substitutes, switching costs to buyers, etc., determinants of buyer power which consists of number of buyers relative to sellers, product differentiation, switching costs to use other products, etc., and determinants of supplier power which consists of supplier concentration, availability of substitute inputs, importance of suppliers' input to buyer, etc.

Marketing teams often add someone with Psychology Expertise in order to understand the consumer. Why is that role important and what do they study?

This is important because it drives how people purchase their products. They study factors such as motivation, perception, learning and beliefs and attitudes.

Mattel has been extremely successful managing the Product Life Cycle of the Barbie Doll? Describe what they have done and implemented and why is it so important for their survival.

Through product line extensions and reinvention, Barbie has always adjusted to current fads and fashions and has been able to appeal to an ever changing target market. She has had over 130 jobs, they have given her numerous friends all with their own background story.

Important decisions must be made by a company at each step of the PLC. In the introduction stage, why must a toy maker look at in the current product line when introducing new products?

To ensure that the new product will not cut into the sales of current product offerings, also to see where the other products are and whether it will benefit or hurt them

Intuit's "Design for Delight" philosophy has helped their product development in what way?

Uses customer-centered new product development which focuses on ways to solve customer problems and create more customer-satisfying experiences. Intuit conducts extensive research about how the customer uses their products, seeking to understand the problems and needs of customers. Thus, Intuit seeks to understand the customer's wants and needs better than customers themselves

What is a "Value-Chain" Analysis? Why is it important to perform one for a company?

Value-chain analysis is a systematic way of examining all of the activities a firm performs and determining how they interact to form a source of competitive advantage. It is important to perform one for a company because it does aid in gaining a competitive edge over potential competitors.

How has WOM influence risen over the past several years?

Word of mouth influence is the impact of the personal words and recommendations of trusted friends, family, associates, and other consumers on buying behavior. In recent years with social media, the range that WOM influence can reach has expanded vastly.

new task

a business buying situation in which the buyer purchases a product or service for the first time

modified rebuy

a business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers

ethnographic research

a form of observational research that involves sending trained observers to watch and interact with consumers in their "natural environments"

undifferentiated marketing strategy (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

differentiated (segmented) marketing

a market-coverage strategy in which a firm targets several market segments and designs separate offers for each

value delivery network

a network composed of the company, suppliers, distributors, and, ultimately, customers who partner with each other to improve the performance of the entire system in delivering customer value

marketing concept

a philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do

customer-generated marketing

brand exchanges created by consumers themselves - both invited and uninvited - by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers

Solutions Selling

buying a packaged solution from a single seller, avoiding all separate decisions involved in a complex buying situation. Complex, difficult to implement and expensive

What role does the promotion "Blazin' Wing Challenge" play at BWW?

challenge where customers can eat a dozen of the hottest wings in under 6 minutes to win prizes and get added to the wall of fame

habitual buying behavior

consumer buying behavior in situations characterized by low consumer involvement and few significant perceived brand differences

variety-seeking buying behavior

consumer buying behavior in situations characterized by low consumer involvement but significant perceived brand differences

"Emotional Branding" to Moms had several key attributes identified to make an advertisement successful. What were some examples?

emotional branding of safety was an example as well as the brand of saving money

What are the eight elements in a Marketing plan?

executive summary, current marketing situation, threats and opportunities analysis, objectives and issues, marketing strategy, action programs, budgets, controls

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

geographic segmentation

dividing a market into different geographical units, such as nations, states, regions, counties, cities, or even neighborhoods

psychographic segmentation

dividing a market into different segments based on lifestyle or personality characteristics

demographic segmentation

dividing the market into segments based on variable such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation

observational research

gathering primary data by observing relevant people, actions, and situations

experimental research

gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses

descriptive research

marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers

exploratory research

marketing research to gather preliminary information that will help define problems and suggest hypotheses

opinion leaders

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

marketing management

the art and science of choosing target markets and building profitable relationships with them

societal marketing concept

the idea that a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests

production concept

the idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency

product concept

the idea that consumers will favor products that offer the most quality performance, and features; therefore, the organization should devote its energy to making continuous product improvements.

selling concept

the idea that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort

stratified random sample

the population is divided into mutually exclusive groups (such as age groups) and random samples are drawn from each group.

What is marketing?

the process by which companies engage customers, build strong customer relationships, and create customer value in order to capture value from customers in return.

quota sample

the researcher finds and interviews a prescribed number of people in each of several categories

convenience sample

the researcher selects the easiest population members from which to obtain information (non probability)

judgment sample

the researcher uses his or her judgment to select population members who are good prospects for accurate information (non probability)

market

the set of actual and potential buyers of a product or service

How does the corporate B2B buying process differ from the B2C process? What steps are different in each?

• Derived demand--business demand derives from the demand for consumer goods •Inelastic and more fluctuating demand--demand for business products is not much affected by price changes •Far fewer but far larger buyers; far more complex buying decisions, process is longer and more formalized A B2C process only involves recognizing a need, finding the right brand, and postpurchase behavior. It is a much simpler decision and evaluation process.

How do Business Buyer Behaviors vary in their decision process and decision criteria?

•Heavily influenced by factors in economic environment--primary demand, economic outlook, cost of money •Supply of key materials •technological, political and competitive developments in environment •Culture and custom