Marketing 505

Product leadership, Operational excellence, customer intimacy. According to porter: Differentiation, cost leadership, customer focus. Operational excellence - supply chain. Product leadership - R&D. Customer Intimacy - marketing.

According to Treacy and Wiersema, what are the various value disciplines that a company can pursue?

Customer centricity is a strategy to fundamentally align a company's products and services with the wants and needs of its most valuable customers

According to the article entitled "Boosting Demand..."are some customers likely to be "better" than others? If so, why?

To satisfy their needs and wants.

Can I articulate why consumers buy goods and services

To elicit a response from the prospect (target market)

Can I explain the aim of a marketer in a consumer decision-making context?

Science - data driven, predicting demand. Art - building connecting with target group. Inherently creative endeavor. What gets through your filter?

Do you believe that marketing is a science and/or an art?

If it is too expensive to customize, and the return even if market share increases isn't worth it. • Undifferentiated - target all customers with the same marketing mix, if standardization lowers the cost of delivering the value proposition to unprecedented levels and opens the industry to many • Mass market

Firms are increasingly thinking about segments in more granular terms, and are being advised to customize their offerings for individual customers. In what instances may it not make sense for firms to try to customize their offerings?

It's often difficult to tell whether similarities between a familiar and an unfamiliar problem are deep or superficial. Managers facing strategic choices can improve their odds of using analogies well by following these four steps. •Anchoring - first piece of info that we get is stuck in our mind •Confirmation bias - ignore other evidence and just look for information that reinforces our decision

How can "anchoring" and "confirmation bias" (as described in Gavetti & Rivkin's article) influence managerial assessment of the marketplace?

Suppliers (upstream businesses), intermediaries (Downstream businesses that can assist in getting product to market, including distributors, independent reps, retailers, facilitators), facilitators (marketing research firms, ad agencies, banks), complementors (providers of associated goods and services- eg call centers).

How can Collaborators influence marketing strategy?

A graphical depiction of the bundle of benefits that a firm's offering can provide to the customer.

How can a value stack aid in understanding?

Understand needs, wants - can more easily make products that respond to these needs. wants

How can firms benefit from listening to the "voice of the customer"?

Marketing research - primary, secondary, focus groups, observation, surveys.

How can firms listen to the "voice of the customer" (VOC)?

Features/Attributes/Benefits: the physical characteristics/ingredients Brand: Name, term, or symbol to identify a seller's offering (good or service) (Industrial) Design: optimize appearance/functionality of offering Packaging & Labeling§Warranty & Guarantee Pre- and Post-sales Support

How can the various facets of "product" (i.e., design, packaging, etc.) assist the firm in arriving at a competitive advantage?

You want to have a very structured, systematic approach in order to avoid a superficial analysis. Which of the 5 Cs are relevant when making the analogy - which aren't? Which can you accurately draw analogy from, and which ones are too different to be considered?• Look for elements in context that support your ideas • Prevent superficial similarities so you can get a true assessment of the market • Understand the source • Basis for what you think sales should be • New - trial and error • Perfect information - deduction • Middle - analogy

How does Gavetti & Rivkin's article relate to analyzing the 5Cs in Dolan's Framework on Marketing Strategy?

Showing why a certain group of product users needs this specific product, "position is the act of designing the company's offering and image to occupy a distinctive place in the mind of the target market." Why is our product superior?

How would you in your own words define positioning?

marketing is the science and art of finding, retaining, and growing profitable customers

How would you in your own words describe marketing?

It is selling to the customer, not the job. They focused on the identifiers variables rather than the response variables.

In the Marketing Malpractice article, what do the authors identify as their main critique with traditional segmentation practices in marketing?

To elicit a response from the prospect (target market).The response can be: create awareness, change attitude, generate purchase, stimulate WOM, etc

In the context of consumer decision-making, what is the aim of a marketer?

Relative advantage, compatibility, complexity, divisibility, and communicability

Please evaluate the electric car (e.g., Tesla, Volt, i3, Leaf, etc.) along Rogers' five factors. Do you think it will succeed based on your analysis?

Product, price, placement, promotion. product - the need-satisfying offering, price - the amount charged for the product, placement - channels of distribution/the mechanisms to distribute the product to the customer, promotion - communications to the customer (signals we send).

The four Ps

Assists in positioning a new offering by determining which benefits will have the desired effect(s) in relation to customer preferences-Provides insight on how to reposition a brand in light of changing customer preferences-Permits a monitoring of perceptions about competitive brands, thereby facilitating the detection of future problems that may require remedial action for one's own brand. Point of differentiation.

To what extent is perceptual mapping a tool that can be utilized in positioning a firm's offering?

Customer characteristics, marketing variables, etc. Ticket prices, competition, attractions, entertainment, macroecnomic factors (how well the economy is doing), etc.

What are determinants of topline revenues at the Georgia Aquarium?

Forecasting: 1. Chain Ratio Method - derives the potential market opportunity by multiplying a base number by several adjusting percentages. 2. Market Buildup Method - calls for identifying all the potential buyers in each market and estimating their potential purchases 3. Multi Factor Method - aggregates different components of the potential market by assigning specific weights to each component 4. Analogy Method - estimate market potential based on another industry sector that has comparable methods or processes 5. BASES - forecasts market demand by asking consumers several questions about their interest in the product concept, likelihood to buy, frequency of purchase, transaction size, value perceptions, and many other important diagnostics. Insight comparisons, new product concept model for consumer adoption

What are some methodologies that allow a firm to quantify the market potential for an offering?

SWOT, assessment of market opportunity, financial and marketing goals, summary of company's marketing strategy, budget, forecast of month to month sales and revenues, a plan for monitoring progress. Databases.

What are some resources that you can draw upon to develop a comprehensive marketing plan?

Likley financial returns, fit (corporate strengths and weaknesses).

What do you believe are two main considerations that firms need to take into account in determining which target market opportunity (ies) to pursue?

The need satisfying offering of a firm.

What does the 'product' element of the marketing mix encompass?

Customer = the market. (total number of customers, units that can be sold, total revenues).

What does the term "Customer" in Dolan's Framework encompass?

the name, term, symbol, or design (or combination of these) to identify a seller's offerings (i.e., goods and/or services) as distinct.

What does the term "brand" mean?

• The name, term, symbol, or design (or combination of these) to identify a seller's offerings as distinct

What does the term "brand" mean?

• Consumer behavior is influenced by- cultural, social, personal • 4 psychological processes also influence behavior- motivation, perception, learning and memory

What factors can influence a customer's decision-making process?

5 Cs ( Target Market. External forces- PESTD)

What factors can influence the creation and implementation of marketing strategy?

Relative advantage, compatibility, complexity, divisibility, and communicability

What factors may attenuate an innovation from diffusing rapidly throughout the marketplace?

PESTD

What is a key Contextual trend that you believe could be the source for a new product/service idea?

A marketing plan is a report that summarizes what has been learned about the marketplace (5 c's), and outlines the marketing strategy to be implemented to achieve the desired objectives. Objectives: volume, sales revenues, market share, profitability.

What is a marketing plan?

reify = making something abstract more concrete or real. The Dolan framework does this. 1. Marketing analysis and demand forecasting (the 5 Cs). 2. Aspiration decisions (marketing segmentation, target market selection, product and service positioning). 3. Action plan for creating and capturing value - the 4 Ps. 4. Driving key business outcomes (customer retention and customer acquisition - to profits)

What is a means by which to reify the marketing process?

Consumer Buying Behavior is the study of "how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants"

What is a potential means by which to conceptualize the customer decision-making process?

Value - benefits product can provide in relation to the cost. consists of the whole cluster of benefits the company promises to deliver... [It]is a statement about the resulting experience customers will gain from the company's market offering.

What is a value proposition?

Market segmentation is the process of dividing the market into homogenous groups of customers who respond similarly to a particular marketing mix.

What is market segmentation?

Target market + the 4 Ps

What is marketing strategy?

1) make a significant contribution to the creation of perceived customer value in products, and 2) be difficult for competitors to imitate

What is meant by the term "core competency" when describing a company?

Positioning is the act of designing the company's offering and image to occupy a distinctive place in the mind of the target market. Unique selling proposition = Benefit (You should buy this because), unique (not offered by substitutes), compelling (benefit is enough to sway voters away from other offerings).

What is meant by unique selling proposition?

Action plan - 4 Ps. Aspiration - market segmentation, target market selection, product and service positioning.

What is the difference between aspiration decisions and action plan?

Goal based: entails demonstrating more explicitly how the brand relates to consumers' goals and requires insight about what motivates consumers to use a brand.link to higher order goals, help consumer attain higher order goal (university of TX example). competition based:highlight benefits that a brand shares with other members of the category. (miller lite and bud light example) point of parity and point of difference.

What is the difference between competition-based and goal-based positioning?

Identifier variables - customer characteristics (age, sex, etc), interests. Response variables - behavior/benefits based (price, reliability, service), application or usage situation, sensitivitiy to marketing mix. Identifier variables begin by segmenting the market based on who the customers are, in the hope that the resulting segments behave differently in response to marketing mix variables. In contrast, post hoc segmentation starts by using response variables to divide the market on the basis of how customers behave, and then hopes that the resulting segments differ enough in terms of customer profiles to enable identification.

What is the difference between identifier and response variables when it comes to segmentation?

marketing is everything that you do to reach and persuade prospects and the sales process is everything that you do to close the sale and get a signed agreement or contract. ie • Marketing = strategy, sales = output

What is the difference between marketing and sales?

PM: All of the product lines offered by a firm PL: A set of individual products that are closely related

What is the distinction between "product mix" and "product line"?

The goal of strategy is profitable growth, meaning value above the firm's cost of capital...In most firms, projects are driven by revenue-seeking activities with customers, so customer selection efforts directly impact which activities the firm invests in.

What is the goal of business strategy?

New offerings are provided to smaller subgroups. • Line extensions are new versions of the product within the same product category, such as new flavors, new packaging options, and new sizes.

What is the link between product line extensions and segmentation?

The four Ps

What is the marketing mix?

1. What business are we in? 2. What are we trying to achieve in those businesses that we compete? (corporate objectives) 3. What are our resources and capabilities that can provide a competitive advantage? (financial, personnel, culture, technical, production, etc.) What is our image or reputation? 5. How will we compete in general/in those markets in particular. What is our mission/value discipline?

What should a Company analysis entail?

Who competitors are now and who they are likely to be in the future. Assess others offers, the market they target, how they target it, and how it will change/evolve over time. Strengths/weaknesses (10-k, interviews with potential customers, marketing actions). Assessing how one can influence compeittors.

What should a Competitive analysis entail?

Comps with CMO outperform companys that don't. The TMT sets goals for the enterprise, and makes decisions (e.g., structure culture, resource allocation) to guide organizational activity.

Why is it important for marketing to be represented in the C-suite?

If you can be customer-centric, you can create goods and services which compete, this positively affects bottom line.

Why is it important for you to learn about marketing?

Primary data are freshly gathered for a specific purpose or a specific research project. Secondary data are data that were collected for another purpose and that already exist somewhere.

what is the difference between primary and secondary marketing research?