MK 323 Mid-term

target, intent, awareness, ACV, trial, repeat, forecast, market share, Dichotomous, alternative, Semantic, likert, leading, ambiguous, unanswerable, double-barreled, non-exhaustive, mutually

Forecasting Demand: Recapping the BASES model: What goes into the BASES model: 1.) size of ____________ market, found from industry research), 2.) purchase ____________ (your survey results Only take "Definitely Buy" and "Probably Buy" into account. Discount "Definitely Buy" by taking 80% and "Probably Buy" by taking 30%). 3.) ______________________ (your media plan), 4.) _________ (Distribution- your distribution plan. Measure of distribution reach), 5.) __________ units (trial households -> trial units. Trial units -your survey results (multiplied by trial households). 6.) ________________ units (your survey results multiplied by trial households). Where you find the data for the model: 1.) industry research, 2.) your survey results (remember the 80/30 adjustment), 3.) You media plan, 4.) your distribution plan, 5.) Your survey results, 6.) your survey results. Forecasting Key Concepts: Sale ________________ for a product is the volume that would be bought... by a defined customer group, in a defined geographical area, in a defined time period, in a defined marketing environment, under defined marketing programs. Raw data -> Model -> Forecast. Factors that influence the forecast: products, price, sales promotions, competition, consumers, distribution, advertising: product or brand sales. Two approaches for CORE for products teams: 1. ____________ ___________ forecast 2. BASES Model. Market share forecast - for product teams: step 1: identify your product category. Step 2: estimate category sales in $ and Units. Step 3: What category share can you expect in Year 1 and in Year 5? For Products teams: Example - New Sunscreen Product: Step 1 Category: Product Category is Sunscreen and Oil. Step 2: Category Sales: According to Chain Drug Review (as found in Tablebase) the US total dollar sales is $922 million. Step 3 Market share: Neutrogena ultra sheer 8.5% and coppertone sport 7.4%... etc . What share could a new product from a new small company expect after 5 years? Using both BASES and the market share approaches allows us to feel more confident in our forecast and that it makes sense. Look at Chenkai's Cuisine Case!!! Marketing Research Analytics: Steps 4-5 MKT in marketing research process. Step 3: Collect data for core project: Qualitative: interviews, for deeper insight, understanding. Context for quantitative research. Quantitative: surveys, seek to generalize findings and predict. Start with clear goals: What are your objectives from the research? Identify the right respondents. Ask clear questions. Always ask from general questions to specifics. Think about how responses will be coded and interpreted. Make sure the survey looks good and is inviting. Make sure to pre-test the survey! Questionnaire research: Open ended question/structured. ___________________ scale is a type of fixed alternative scale (yes or no question). Fixed _______________________ Scale - (If you answered yes to question 2, how often do you eat fast food?, once a week, once a month...). Importance scale. _______________ differential scale(tasty not tasty, clean to dirty). _______________ scale: strongly agree, agree, indifferent, disagree...). Don't make these mistakes: ___________________ question: (Why do you like Wendy's fresh meat hamburgers better than those of competitors), ____________________ question(Do you eat at fast-food restaurants regularly?, yes or no), _______________________ question:(what was the occasion for eating your first hamburger?). _________________________________ question: (do you eat Wendy's hamburgers and chili?). ___________________________ question: (what is your current age, 1-4, 5-9, 10-14 (It does not cover the whole range). Non-_________________ exclusive question: (What is your age?: Under 20 20 -40, 40 and over, they have an overlap, so essentially don't have an overlap). Adjust for segment overlap: Overlap occurs when you have two segments but only one segment will purchase in each situation. The most common example is a children's product: parent segment, grandparent segment.

dilution, co-branding, equity, awareness, perceived, associations, loyalty, manufacturer, retailer,

How to evaluate brand dilution: Evaluate the fit between the product class of the core brand and the extension. Evaluate consumer perceptions of the attributes of the core brand and seek out extensions with similar attributes. Refrain from extending the brand name to too many products. Is the brand extension distanced enough from the core brand? Adidas licenses its brand to MLS. Co-branding offers opportunities. Not all brand extensions are successful, however. Some can dilute brand equity. Brand _____________ occurs when the brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold. ____________________ is the practice of marketing two or more brands together on the same package, promotion, or store. Co-branding can enhance consumers' perceptions of product quality by signaling unobservable product quality through links between the firm's brand and a well-known quality brand. How would you measure brand equity?: Brand awareness, perceived value, brand associations, brand loyalty. National, retail brands pursue distinct strategies. Brands Affect Market Value: Having well-known brands can have a direct impact on the company's bottom line. The value of a company is its overall monetary worth, comprising a vast number of assets. The value of a brand translates into brand _____________, or the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service. Brand ____________________ measures how many consumers in a market are familiar with the brand and what it stands for and have an opinion about it. The more aware of or familiar with it they are, the easier their decision-making process is, which improves the chances of purchase. The ____________________ value of a brand is the relationship between a product's or service's benefits and its cost. Customers usually determine the offering's value in relation to the value of its close competitors. Brand _________________________ reflect the mental and emotional links that consumers make between a brand and its key product attributes, such as a logo and its Page 345color, slogan, or famous personality. Brand ______________ occurs when a consumer buys the same brand's product or service repeatedly over time rather than buying from multiple suppliers within the same category. __________________________ brands, also known as national brands, are owned and managed by the manufacturer. ______________/store brands, also called private-label brands, are products developed by retailers. In some cases, retailers manufacture their own products; in other cases they develop the design and specifications for their retailer/store brands and then contract with manufacturers to produce those products. When all products are sold under one family brand, the individual brands benefit from the overall brand awareness associated with the family name. A firm can use individual brand names for each of its products. Corporate name may not be brand: Family brands: Kellogg's Rice Krispies. Kellogg's Special K. Individual brands: Keebler, Cheez-It, Famous Amos, and Morning Star Farms (owned by Kellogg's). Why would Kellogg's not want to add its name to the Famous Amos brand? Packaging, logos, anime create consistency: Why is consistency important?: Branding: Advertising, product benefits, price, value proposition, customer service, company name, Strong impression, logo, packaging, repetition.

Objectives, Segmentation, geographic, demographic, psychographic, self-values, self-image, VALS, Benefit, behavioral, occasion, loyalty

Market Segmentation, Targeting, and Positioning (STP): Steps 3, 4 at the heart of marketing strategy. Target selection ties to positioning. Step 1: Strategy or Objectives (segmentation) -> Step 2a: Select Key Variables/Segmentation Methods -> Step 2b: Create Segmentation Tree and Grid -> Step 3: Evaluate Segment Attractiveness (Targeting) -> Step 4: Select Target Market Step 5: Identify and Develop Positioning Strategy (Positioning). Segmentation, Targeting, And Positioning: Step 1: Establish Strategy or _____________________ - The first step in the segmentation process is to articulate the vision or objectives of the company's marketing strategy clearly. The segmentation strategy must be consistent with and derived from the firm's mission and objectives as well as its current situation—its strengths, weaknesses, opportunities, and threats (SWOT). Step 2a: Select Key Variables/________________________ Methods: Behavioral, Geographic, Psychographic, Demographic, Benefit. What are examples of each of these? Select Key Variables/Segmentation Methods: Behavioral, Geographic, Psychographic, Demographic, Benefit. Use Segmentation methods: The second step in the segmentation process is to use a particular method or combination of methods to segment the market. This step also develops descriptions of the different segments, which helps firms better understand the customer profiles in each segment. _______________________ segmentation organizes customers into groups on the basis of where they live. _________________________ segmentation groups consumers according to easily measured, objective characteristics such as age, gender, income, and education. Of the various methods for segmenting, or breaking down, the market, ______________________ segmentation is the one that delves into how consumers actually describe themselves. Usually marketers determine (through demographics, buying patterns, or usage) into which segment an individual consumer falls. Psychographics studies how people self-select, as it were, based on the characteristics of how they choose to occupy their time (behavior) and what underlying psychological reasons determine those choices. ________-___________ are goals for life, not just the goals one wants to accomplish in a day. They are the overriding desires that drive how a person lives his or her life. Examples might be the need for self-respect, self-fulfillment, or a specific sense of belonging. People's ________-______________, or self-concept, is the image people ideally have of themselves. The most widely used psychographic segmentation is the Values and Lifestyles Survey (__________), owned and operated by Strategic Business Insights (SBI).24 It examines the intersection of psychology, demographics, and lifestyles. _______________ segmentation groups consumers on the basis of the benefits they derive from products or services. ______________________ segmentation divides customers into groups on the basis of how they use the product or service. Some common behavioral measures include occasion and loyalty. __________________ Behavioral segmentation based on when a product or service is purchased or consumed is called blank segmentation. Men's Wearhouse uses this type of segmentation to develop its merchandise selection and its promotions. In light of the high cost of finding new customers and the profitability of loyal customers, today's companies are using ____________ segmentation and investing in retention and loyalty initiatives to retain their most profitable customers. One very popular mixture of segmentation schemes is geodemographic segmentation. Based on the adage "birds of a feather flock together," geodemographic segmentation uses a combination of geographic, demographic, and lifestyle characteristics to classify consumers.

tree, grid, attractiveness, Identifiable, Substantial, Reachable, Responsive, Profitable, target, mass, differentiated, concentrated, micromarketing

Market Segmentation, Targeting, and Positioning (STP): Steps 3, 4 at the heart of marketing strategy. Target selection ties to positioning. Step 1: Strategy or Objectives (segmentation) -> Step 2a: Select Key Variables/Segmentation Methods -> Step 2b: Create Segmentation Tree and Grid -> Step 3: Evaluate Segment Attractiveness (Targeting) -> Step 4: Select Target Market Step 5: Identify and Develop Positioning Strategy (Positioning). Step 2b: Create _________ for 6-sided timer: Step 2b: Create segmentation ________(Create two segment names with sizes, demographics, psychographics, their sought benefits) develop profiles. Segment demographics may be similar, but segment psychographics differ. Hedonist versus The Traditionalist. Tree, grid focuses on target characteristics. Based on characteristics, assess fit. Step 3: Evaluate segment attractiveness (Substantial, Reachable, Responsive, Profitable, Identifiable). ____________________ - Firms must be able to identify who is within their market to be able to design products or services to meet their needs. _______________________ - Once the firm has identified its potential target markets, it needs to measure their sizes. If a market is too small or its buying power insignificant, it won't generate sufficient profits or be able to support the marketing mix activities. _____________________ - The best product or service cannot have any impact, no matter how identifiable or substantial the target market is, if that market cannot be reached (or accessed) through persuasive communications and product distribution. ____________________ - For a segmentation strategy to be successful, the customers in the segment must react similarly and positively to the firm's offering. If, through the firm's distinctive competencies, it cannot provide products or services to that segment, it should not target it. ___________________ - Marketers must also focus their assessments on the potential profitability of each segment, both current and future. How will you determine attractive segments for your core product? Define positioning as why the target would choose your product over others. Step 4: Select _______________ market: Targeting Strategies: Differentiated, Concentrated, Micromarketing or one-to-one, Undifferentiated or mass marketing. When everyone might be considered a potential user of its product, a firm uses an undifferentiated targeting strategy (__________ marketing). Clearly, such a targeting strategy focuses on the similarities in needs of the customers as opposed to the differences, Focus on what is in common in the needs of consumers). Firms using a ______________________ targeting strategy target several market segments with a different offering for each (Segmented Marketing). A firm decides to target several market segments and designs separate offers for each). When an organization selects a single, primary target market and focuses all its energies on providing a product to fit that market's needs, it is using a _______________________ targeting strategy (Niche Marketing, Going after a large share of one market, or a few smaller segments). When a firm tailors a product or service to suit an individual customer's wants or needs, it is undertaking an extreme form of segmentation called __________________________ or one-to-one marketing. Local Marketing-tailoring needs to local customer groups. Individual Marketing-tailoring to individual customers.

Positioning, strategy, value, value, salient, symbols, competition, factors, All commodity volume

Market Segmentation, Targeting, and Positioning (STP): Steps 3, 4 at the heart of marketing strategy. Target selection ties to positioning. Step 1: Strategy or Objectives (segmentation) -> Step 2a: Select Key Variables/Segmentation Methods -> Step 2b: Create Segmentation Tree and Grid -> Step 3: Evaluate Segment Attractiveness (Targeting) -> Step 4: Select Target Market Step 5: Identify and Develop _____________________ Strategy: Step 5: Identify, develop positioning: Market positioning involves a process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products. The positioning _______________ can help communicate the firm's or the product's value proposition, which communicates the customer benefits to be received from a product or service and thereby provides reasons for wanting to purchase it. The main __________ proposition components are: Target market, (Offering name or brand, Product/service category or concept), Unique point of difference/benefits. Value is a popular positioning method because the relationship of price to quality is among the most important considerations for consumers when they make a purchase decision. Positioning: the way the product is defined by consumers on important attributes, the space the product occupies in consumers' minds relative to competing products. Positioning = Target Market + Category + Differentiation. 4Ps shape target consumers' understanding of your brand reactive to competitors. Step 5: Identify distinctive positioning: Positioning methods/Factors: Value, Salient attributes, Symbol, Competition, Brand character. ____________: The relationship between price and quality and also perceived value. _______________ attributes: The product attributes that are the most important to the target market. __________________: The trademark or other symbol that gives the product value and recognition. A well known symbol can be used as a positioning tool. Can create a position for the brand that distinguishes it from its competition. ______________________: Positioning products up against a specific competitor or an entire product/service classification. Perceptual map is a positioning tool. Firms can choose to position their products against a specific competitor or an entire product service classification. Clarify positioning with perceptual map: A perceptual map displays, in two or more dimensions, the position of products or brands in the consumer's mind. We have chosen two dimensions for illustrative purposes: sweet versus light taste (vertical) and less natural versus healthy (horizontal). Clarify positioning with perceptual map ________________: 1.) Determine consumers' perceptions and evaluations in relation to competitors'. 2.) Identify the market's ideal points and size. 3.) Identify competitors' positions. 4.) Determine consumer preferences. 5.) Select the position. 6.) Monitor the positioning strategy. Why position?: Because consumers have complex choices and decisions. Marketers try to simplify an over communicated landscape. Average supermarket has 30-50,000 products. For Core Project - perceptual map: Positioning attributes are determined from your secondary data and interviews (and sometimes surveys) and should be what is most important to your target customers. These same important attributes are used to inform the customer dimensions in your House of Quality. The location of existing brands are determined from interviews, your research, knowledge of your industry, and from your judgement. Several positioning maps are often used to position a product/service and its competitors. Do not position 323 products/services on price! (put prices next to the product/service on the positioning map). CORE PROJECT - positioning statement. Sock Case: For (target market) who (statement of need or opportunity) the (product name) is a (product category) which means (differentiating benefit #1 and #2) because it offers (attribute #1 and #2) and is unlike (primary competitor). Segmentation tree: Gather primary and secondary sources to support segment size, characteristics included in tree. Segmentation grid: Show targeted and non-targeted segments. Perceptual Map #1 Safety vs. Variety of Shapes. Perceptual Map #2 Interactivity vs. Variety of Shapes. How do you describe your target. What is ACV (______ ________________ _________________)?: ACV is a measure of the distribution reach based on the sales in the stores that carry the product. Not merely the number of stores. = (total sales of stores carrying a brand) / (total sales of all stores). a percentage measure of the total dollar volume of retail sales of stores stocking a SKU or brand versus total dollar volume sales in all categories.

coding, cross-tab, new, changing, saturation, risk, fashion, relationships, externally, internally,

Marketing Research Analytics: Steps 4-5 MKT in marketing research process. Step 3: Collect data for core project: Step 4: Analyze data, developing insights: Convert data into insights that helps explain, predict, or evaluate. Questionnaire _______________ - Think about how to code data: Record coding into data file: (1=strongly disagree, 2=somewhat agree, 3=neither...up to 5) Use numeric codes, female = 1, male =2. Rewrite to simplify coding: Where do you buy long-burning logs? Online, supermarket, discount stores, specialty stores, etc. Don't check all that apply, do a yes or no for each, No = 1, Yes = 2. Questionnaire analysis: Cross tabs gives richer insight into data analysis: A cross tabulation (or _________________) or pivot table used to analyze and discover relationships among variables in the data. Which variables should be used together for analysis? Cross tabs a valuable analytical lens: tabs allow for better understanding of the needs of particular buyers and segments. Most widely used technique for organizing and presenting marketing data: Simple format that allows direct interpretation. Easy means of communicating data to management. Can be used to summarize experimental, observational, and questionnaire data. There will be a Pivot Table/Demand Curve tutorial posted by the TA and a TA session. You will use statistical tests as part of analysis. Calculating purchase intent from raw data, This 323 team has two segments - males and females, calculate the purchase intent for each segment. Make Sure to Turn Into Percentage first Before You Transform it Into Def and Prob adjustments! Step 1: Take percent by segment. Step 2: Look at "definitely" and "probably" purchase. Look at 2 variables together: Would you purchase this new product? And How much would you pay for this product? The team then asked "what is the size of your household?". Step 5: Action Plan and Implementation: For the Core project for MK, you will develop a marketing plan. What kind of items might a Core marketing plan entail? Remember: the goal is what you learn in your research should help guide your marketing actions. New product Development: New products/services can drive growth: Market penetration: current markets and current products/services). Growth Strategies. A market penetration strategy employs the existing marketing mix and focuses the firm's efforts on existing customers. Product development (Current markets, and new products/services). The third growth strategy option, a product development strategy, offers a new product or service to a firm's current target market. Market development(New markets and current product/services): A market development strategy employs the existing marketing offering to reach new market segments, whether domestic or international. Diversification (New markets and new products/services). A diversification strategy, the last of the growth strategies from Exhibit 2.7, introduces a new product or service to a market segment that currently is not served. Diversification opportunities may be related or unrelated. In a related diversification opportunity, the current target market and/or marketing mix shares something in common with the new opportunity. In contrast, in an unrelated diversification, the new business lacks any common elements with the present business. Why do firms create _________ products? : Changing customer needs, Market saturation, managing risk through diversity, fashion cycles, improving business relationships. ____________________ Customer Needs: When they add products, services, and processes to their offerings, firms can create and deliver value more effectively by satisfying the changing needs of their current and new customers or by keeping customers from getting bored with the current product or service offering. Market ____________________: The longer a product exists in the marketplace, the more likely it is that the market will become saturated. Without new products or services, the value of the firm will ultimately decline. Managing _________ through Diversity: Through innovation, firms often create a broader portfolio of products, which help them diversify their risk and enhance firm value better than a single product can. _______________ Cycles: In industries that rely on fashion trends and experience short product life cycles—including apparel, arts, books, and software markets—most sales come from new products. Improving Business _____________________: New products do not always target end consumers; sometimes they function to improve relationships with suppliers. Strategic Roles of New Products: __________________ driven: (Defend market share position. Establish a foothold in a new market. Preempt market segment. _________________ driven: Maintain position as product innovator. Exploit technology in a new way. Capitalize on distribution strengths. Provide a cash generator. Use excess or off-season capacity.

concept testing, secondary, primary, information, syndicated, perceptual, screening, First, second, third,

Marketing Research: We will focus on launching new products, unmet needs(analysis of online review, interviews and shopping observations, as part of primary exploratory research), market opportunity, ____________ ______________: An idea with potential is developed further into a concept, which in this context refers to a brief written description of the product; its technology, working principles, and forms; and what customer needs it would satisfy. It refers to the process in which a concept statement is presented to potential buyers or users to obtain their reactions. These reactions enable the developer to estimate the sales value of the product or service concept, possibly make changes to enhance its sales value, and determine whether the idea is worth further development. Our research focus is on launching new products: Our research goal is to understand the appeal and market potential of a new product/service. Is there an unmet need? (analysis of online reviews, interviews and shopping observations, as part of primary exploratory research). What are the characteristics of the target segment and size of target segment? (secondary research). Based on the design of the project, data can be collected from secondary or primary data sources. ___________________ data are pieces of information that have been collected prior to the start of the focal research project. Secondary data include external as well as internal data sources. ___________________ data, in contrast, are those data collected to address specific research needs. No company can ask every customer his or her opinion or observe every customer, so researchers must choose a group of customers who represent the customers sample, and then generalize their opinions to describe all customers with the same characteristics. In this context, data can be defined as raw numbers or other factual information that, on their own, have limited value to marketers. However, when the data are interpreted, they become ___________________, which results from organizing, analyzing, and interpreting data and putting them into a form that is useful to marketing decision makers. Although the secondary data described previously are either free or inexpensively obtained, marketers can purchase external secondary data called ______________________ data, which are available for a fee from commercial research firms such as IRI, the National Purchase Diary Panel, and Nielsen. How should we position our product ... A __________________ map (positioning map) displays, in two or more dimensions, the position of products or brands in the consumer's mind. We have chosen two dimensions for illustrative purposes: sweet versus light taste (vertical) and less natural versus healthy (horizontal). The numbered circles denote consumers' ideal points—where a particular market segment's ideal product would lie on the map. The larger the numbered circle, the larger the market size. What product features, messaging, pricing, and place resonate with the target segment? (concept test). Research provides insights into consumer influences and behavior: Need recognition -> information search -> alternative evaluation. Psychological factors - motives, attitudes, perceptions, learning, lifestyle. (All discussed in buyer behavior). Primary research - conduct research yourself, you have a goal in mind and execute against it with that goal in mind. Secondary Research - collect data by third party, had a previous goal in mind. Questions to ask about customers: Who are they? What do they buy? How do they choose? How do they select a product/service? Where do they buy it/consume it? When do they buy it? Build a discussion guide by asking questions going from broad to narrow, screening question -> general -> Specifics. ___________________ questions (Am I qualified to take part, (Do you own X?"). __________-level questions: Describe current usage, competitors, context ((What brand of X do you own?"). How was it initiated? _______________-level questions: Likes, dislikes. What delights/frustrates? __________-level questions: Tell me about the last time. Questionnaire Layout: 1.) Cover letter/Introduction, 2.) Screening questions at the beginning, 3.) Interesting and simple questions next ("warm-ups"), 4.) Involving questions in the middle. 5.) Possibly insert "prompters". 6.) Threatening and sensitive questions near the end. 7.) Classification (demographic) questions in the end. 8.) Finally, have a "Thank You". Focusing on potential consumers for interviews: One-on-one interviews with potential consumers help Core teams assess the promise of a new concept. Each team member is required to conduct interviews to gain a sense of what is important to consumers. Best practice is to conduct interviews as pairs. Strongly encouraged to interview only individuals who are in the expected target consumer segment. Not allowed to use BU professors, staff, or students as participants in interviews or survey research (no college students). Not allowed to interview anyone under the age of 18 without the written permission of a parent or guardian.

psychological, situational, social, purchase, shopping, temporal, family, reference, culture, initiator, influencer, decider, buyer, user, gatekeeper, Habitual, involvement, extended, limited, impulse, B2B

Consider 4 powerful influencers on buyers: 1.) Marketing mix (Product, Price, Place, Promotion), 2.) _____________________ factors (Motives, Attitudes, Perceptions, Learning, Lifestyle), 3.) ___________________ factors (Purchase situation, shopping situation, temporal state), 4.) _________ factors (Family, Reference groups, Culture). 3.) Situational Factors: But sometimes situational factors, or factors specific to the situation, override or at least influence psychological and social issues. _________________ situation - (atmospherics (sum of physical surroundings) influence customers judgment of store, quality, etc. aka servicescape). _________________ situation (Store atmosphere, Salespeople, Crowding, In-Store demos, Promotions, Packaging). __________________ state (effect of time on customer, internet shopping growing as result of time pressures felt). 4.) Social factors: _____________: must satisfy everyone because it's for the whole family to use, the whole family partakes in the decision. _________________ Groups: another individual used as a basis for comparisons regarding beliefs, feelings, behaviors; they provide information, offer rewards/praise for purchase, and enhance self image. ________________ : shared meanings, beliefs, morals, values and customs of a group. Psychological: How do attitudes form?: Attitude, Behavioral, Cognitive, Affective. Perception is selective, not objective: Messages -> Selective exposure, selective comprehension, selective retention. Social: Decision complicated by buying center - Family decision making roles: User, Initiator, Influencer(kids), Decider(parents), Buyer. (1) _______________, the person who first suggests buying the particular product or service; (2) ________________, the person whose views influence other members of the buying center in making the final decision; (3) __________________, the person who ultimately determines any part of or the entire buying decision — whether to buy, what to buy, how to buy, or where to buy; (4) _____________, the person who handles the paperwork of the actual purchase; (5) _________, the person who consumes or uses the product or service; and (6) ______________________, the person who controls information or access, or both, to decision makers and influencers. Decisions are complicated by referents: Groups: Family, Friends, Coworkers, Famous people. And Provide: Information, Rewards, self-image. Purchase Situation can drive behavior: 1.) _______________: decision making describes a purchase decision process in which consumers engage in little conscious effort. 2.) New, 3.) Emergency, 4.) Gift. How can purchase situations influence the consumer decision process? Shopping situation affects expectations: Store atmosphere, salespeople, crowding, in-store demonstrations, promotions, packaging. How can shopping situations influence the consumer decision process? Temporal state introduces urgency to buy: Time of day/month/year. Time pressure, state of mind/mood. Types of decisions adhere to different norms: Habitual decision making, Limited problem solving, extended problem solving, Impulse buying. ______________________ is the consumer's degree of interest in the product or service. This process is an example of extended problem solving, which is common when the customer perceives that the purchase decision entails a lot of risk. _________________ problem solving occurs during a purchase decision that calls for, at most, a moderate amount of effort and time. A common type of limited problem solving is _______________ buying, a buying decision made by customers on the spot when they see the merchandise. Value Based Marketing: Balance Customer's Benefits and Costs, Benefits and Costs are not always financial. Business Buyer Behavior: Consider _______ markets (manufacturers, resellers, institution, government). How is the B2B process different from B2C? : Need recognition, product specification, RFP process, Proposal analysis and supplier selection, order specification, vendor/performance assessment using metrics.

criteria, evaluative, determinant, rules, compensatory, noncompensatory, cognitive dissonance, loyalty, Motives, Physiological, safety, love, esteem, self-actualization, attitude, cognitive, affective, behavioral, perception, learning, lifestyle

Consumer Decision Process Suggests logical flow: Need recognition -> Information search -> Alternative evaluation -> Purchase and consumption -> Post-purchase. 3.)Alternatives evaluation based on relevant _______________: __________________ criteria: consist of salient, or important, attributes about a particular product. determinant attributes: ___________________ attributes are product or service features that are important to the buyer and on which competing brands or stores are perceived to differ. Are those attributes that actually determine the buyer's final choice of service. A determinant attribute does not have to be the most important attribute but it is the attribute that the consumer uses to ultimately distinguish one service offering from another. Consumer decision _________ are the set of criteria that consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives. These rules are typically either blank or blank. A ____________________ decision rule assumes that the consumer, when evaluating alternatives, trades off one characteristic against another, such that good characteristics compensate for bad characteristics. Sometimes, however, consumers use a _______________________ decision rule in which they choose a product or service on the basis of one characteristic or one subset of a characteristic, regardless of the values of its other attributes. What are some of the features of a vacation that make up your compensatory or non-compensatory decision rules? Step 5. Postpurchase ______________ __________________: is an internal conflict that arises from an inconsistency between two beliefs or between beliefs and behavior. Negative word of mouth occurs when consumers spread negative information about a product, service, or store to others. The psychologically uncomfortable state produced by an inconsistency between beliefs and behaviors that in turn evokes a motivation to reduce the dissonance; buyers' remorse. Postpurchase cognitive dissonance generally occurs when a consumer questions the appropriateness of a purchase after his or her decision has been made. It's especially likely for products that are expensive, are infrequently purchased, do not work as intended, and are associated with high levels of risk. Post-purchase experience affects ___________: Information search: what is cognitive dissonance? How do firms attempt to reduce dissonance?: Build realistic expectations of customer satisfaction. Provide money-back guarantees and warranties. Pay attention to positive information / feedback. Seek more feedback (positive and negative). Why is post-purchase experience so important? Consider 4 powerful influencers on buyers: 1.) Marketing mix (Product, Price, Place, Promotion), 2.) psychological factors (Motives, Attitudes, Perceptions, Learning, Lifestyle), 3.) situational factors (Purchase situation, shopping situation, temporal state), 4.) Social factors (Family, Reference groups, Culture). 2.)Psychological risks: are those risks associated with the way people will feel if the product or service does not convey the right image. ______________: A need or want that is strong enough to cause the person to seek satisfaction. One of the best-known paradigms for explaining these motive types, developed by Abraham Maslow more than 70 years ago, is called Maslow's hierarchy of needs. _______________________ needs deal with the basic biological necessities of life—food, drink, rest, and shelter. ____________ needs pertain to protection and physical well-being. __________ needs to relate to our interactions with others. ______________ needs allow people to satisfy their inner desires. Finally, ______-_____________________ occurs when you feel completely satisfied with your life and how you live. More basic needs (physiological and safety) are fulfilled, people turn to satisfying their higher-level human needs (social and personal). An _________________ is a person's enduring evaluation of his or her feelings about and behavioral tendencies toward an object or idea. Moving on.... An attitude consists of three components. The ___________________ component reflects our belief system, or what we believe to be true; the ____________________ component involves emotions, 40 or what we feel about the issue at hand, including our like or dislike of something; and the _____________________ component pertains to the actions we undertake based on what we know and feel. Another psychological factor, ___________________, is the process by which we select, organize, and interpret information to form a meaningful picture of the world. Influences acquisition and consumption of goods/services through tendency to assign meaning to color, symbols, taste, and packaging. based on culture, traditions, and overall upbringing. Perception is selective, not objective: Messages -> Selective exposure, selective comprehension, selective retention. ________________ refers to a change in a person's thought process or behavior that arises from experience and takes place throughout the consumer decision process. _______________ refers to the way consumers spend their time and money to live, refers to the way a person lives his or her life to achieve goals.

core customer, actual, associated, speciality, shopping, convenience, Unsought, lines, mix, breadth, depth, brand, line

Product Strategies and Services Marketing: Complexity of Products: Actual Product (brand name, packaging, feature/design, quality level), Core customer value, Associated services (financing, product warranty, product support). At the center is the ________ ________________ value, which defines the basic problem-solving benefits that consumers are seeking. Marketers convert core customer value into an ______________ product. Attributes such as the brand name, features/design, quality level, and packaging are important, but the level of their importance varies, depending on the product. The ____________________ services, also referred to as the augmented product, include the nonphysical aspects of the product, such as product warranties, financing, product support, and after-sale service. The amount of associated services also varies with the product. Types of Consumer Products, can categorize them based on 4 Ps: Convenience product, Shopping product, speciality product, unsought product. __________________ products/services are those for which customers express such a strong preference that they will expend considerable effort to search for the best suppliers. Road bike enthusiasts, like those interested in the Trek Madone 9 Series, devote lots of time and effort to selecting just the right one. ___________________ products/services are products or services for which consumers will spend a fair amount of time comparing alternatives, such as furniture, apparel, fragrances, appliances, and travel. __________________________ products/services are those products or services for which the consumer is not willing to expend any effort to evaluate prior to purchase. ____________________ products/services are products or services that consumers either do not normally think of buying or do not know about. Because of their very nature, these products/services require lots of marketing effort and various forms of promotion. What is a brand? Why build a brand? What are your brand associations? What is BU's brand?: What characteristics come to mind? Internal sense of brand? Outside of the BU community? What is Questrom's brand? What makes a good brand name or logo? Short & Simple, easy to spell & read, easy to recognize & remember, easy to pronounce, can pronounce in only one way, can pronounce in all languages, suggests product benefits meets packaging/labeling needs, no undesirable imagery, always timely, adapts to any advertising medium, legally available for use. Adidas product mix by breadth, depth (know difference). The product mix typically consists of various product ___________, which are groups of associated items that consumers tend to use together or think of as part of a group of similar products or services. The complete set of all products and services offered by a firm is called its product ______. The product mix reflects the breadth and depth of the company's product lines. A firm's product mix ________________ represents a count of the number of product lines offered by the firm; the four columns in Exhibit 11.2 depict just four of the lines offered by Daimler AG. Product line ___________, in contrast, equals the number of products within a product line. Daimler AG clearly maintains the most products under its Mercedes-Benz line of cars, and it adds more as needed to appeal to various consumers. However, adding unlimited numbers of new products can have adverse consequences. Too much breadth in the product mix becomes costly to maintain, and too many brands may weaken the firm's reputation.3 If the products are too similar, sales of one brand may cannibalize, or take away sales from the other brand, with no net sales, profit, or market share increase. Strong brand gives options to extend. What is a line extension? What is a brand extension? A ___________ extension refers to the use of the same brand name in a different product line. It is an increase in the product mix's breadth.23 The dental hygiene market, for instance, is full of brand extensions; Colgate and Crest sell toothpaste, toothbrushes, and other dental hygiene products, even though their original product line was just toothpaste. A __________ extension is the use of the same brand name within the same product line and represents an increase in a product line's depth. Not all brand extensions are successful, however. Some can dilute brand equity. Brand extension is the use of the same brand name to launch a new product in a different product line. On the other hand, Line extension is the use of the same brand to launch and market a new product in the same product line.

survey, questionnaire, experimental, Analyzing, projective, monitoring, categorize, implementation

The Marketing Research Process: Step 1: Defining the objectives and research needs. Step 2: Designing the research. Step 3: Collecting the data. Step 4: Analyzing the data and developing insights. Step 5: Developing and implementing an action plan. Step 3. Data collection process: Arguably the most popular type of quantitative primary collection method is a ____________—a systematic means of collecting information from people using a questionnaire. A ________________________ is a document that features a set of questions designed to gather information from respondents and thereby accomplish the researchers' objectives. Individual questions on a questionnaire can be either unstructured or structured. Unstructured questions are open ended and allow respondents to answer in their own words. Structured questions are closed-ended questions for which a discrete set of response alternatives, or specific answers, is provided for respondents to evaluate. ________________________ research (an experiment) is a type of quantitative research that systematically manipulates one or more variables to determine which variables have a causal effect on other variables. Step 4. ______________________ data and developing insights Convert data (raw #'s/facts) into info (organized, analyzed, or interpreted data) to explain. Code data. Bucket qualitative data into themes. Example: What guests say about Island Creek Oyster Bar. Look for themes(categories), patterns, Facial recognition Develop insights from themes: Once you identify themes in your data by bucketing by valence, topic keyword, or whatever makes sense. Quantify what you can, for example "53 out of 102 comments focused on flavor". What story does your data tell? What are _________________________ techniques?: Indirect format that encourages respondents to project their underlying motivations, beliefs, attitudes or feelings. When direct questions fail, one might use blank techniques. They are qualitative. Presentation of an ambiguous, unstructured object, activity, or person that a respondent is asked to interpret and explain. From psychoanalytic practice: Word association, Imagery, Groupings. 3 types of projective techniques: word association, completion test, picture interpretation. Collect data from social media. What is social media listening or monitoring? What can you learn and do with this listening? Social media ___________________________ allows firms to develop insights: Organizations use social media analytics tools to better understand what is being said about themselves, their competition, and other topics of interest. It includes measuring opinions and sentiment of groups and influencers.Use social media listening tools, socialmention and google trends, use social media to explore segmentation and competitors for your positioning maps. Observe differences in search volume, trends, spikes or dips for each competitor company/brand. Try to __________________________ your data: by valence (positive vs. negative), type, context, or what makes sense. You may also be able to quantify, e.g., "30% of comments focused on flavor.". Any potentially noteworthy trends relevant for your subcategory? What insights can you summarize from these analyses? Some questions to answer using Social Mention and brand blogs? : Who is talking? Where are they talking? (instagram, blogs, twitter?) What are they saying? Positive, Negative. How can you use this information? Consider for BDW. 5. Action plan and _______________________: Report includes objectives of the study, issues examined, methodology, analysis and results, and insights and managerial implications.

objectives, research, designing, internal ,external, Observational, questionnaire, probability, non-probability, collection, Qualitative, Quantitative, scanner, panel, research,

The Marketing Research Process: Step 1: Defining the objectives and research needs. Step 2: Designing the research. Step 3: Collecting the data. Step 4: Analyzing the data and developing insights. Step 5: Developing and implementing an action plan. The Marketing Research Process: Step 1.) defining the ___________________ and ________________ needs: What information is needed to answer specific research questions? How should that information be obtained? (Primary or secondary data) Step 2. ___________________ the research Type of data available/required: Type of research necessary to collect data: (Data: Facts and figures pertinent to the problem, secondary data: Facts and figures already recorded prior to the project, primary data: Facts and figures newly collected for the project, ____________ data: Financial statements, research reports, files, customer letters, sales call reports, and customer lists inside the firm, _________________ data: U.S. census reports, trade association studies and magazines, business periodicals, and internet-based reports outside the firm, _______________________ data: Mechanical and electric approaches, personal approaches, watching people. observation is a method of collecting data by human, mechanical, electrical, or electronic means. researcher may or may not have direct contact or communication with the people whose behavior is being recorded. Observation entails examining purchase and consumption behaviors through personal or video camera scrutiny, or by tracking customers' movements electronically as they move through a store. virtual community (an online network of people who communicate about specific topics). _________________________ data: Idea generation through in-depth interviews and focus groups. Idea evaluation by mail, online, telephone, and personal surveys. Predict about population from sample: sampling concepts -> Population, Sample -> Sample techniques -> Probability samples, Non-probability (convenience) samples. For generalizability, we strive for closer to probability samples. ____________________ sample: Every member of the population has a known, nonzero probability of being selected: ex: For survey of BU students random generation of BU ID numbers is used and email is sent to 1000 students. ________________________ (convenience) sample: There is no guarantee that each member of the population will have the same chance of being introduced. Ex: For a survey of BU students, two questrom professors survey their classes of 50 students each. Step 3: Data __________________ process Collect data: includes collecting secondary data. Also includes data from primary qualitative and quantitative sources. Data -> secondary, primary -> internal , external data, observational , questionnaire data. ___________________ research: observation, focus groups(unstructured conversation, there is a moderator, trying to get people to talk to each other) social media, in-depth interviews projective techniques -> data collection research -> ______________________ research: (experiments, marketing experiment, change packaging and measure sales), survey, scanner, panel). _______________ data are used in quantitative research obtained from scanner readings of Universal Product Code (UPC) labels at checkout counters. Whenever you go into your local grocery store, your purchases are rung up using scanner systems. ____________ data are information collected from a group of consumers, organized into panels, over time. Data collected from panelists often include their records of what they have purchased (i.e., secondary data) as well as their responses to survey questions that the client gives to the panel firm to ask the panelists (i.e., primary data). What is a focus group?: A small group (usually 6-10) who discuss initial reactions to a new or existing product or service, guided by a moderator. As its name implies, qualitative research uses broad, open-ended questions to understand the phenomenon of interest. It provides initial information that helps the researcher more clearly formulate the research objectives. Qualitative research is more informal than quantitative research methods and includes observation, following social media sites, in-depth interviews, and focus groups. Once the firm has gained insights from doing qualitative research, it is likely to engage in quantitative research, which are structured responses that can be statistically tested. Quantitative ________________ provides information needed to confirm insights and hypotheses generated via qualitative research or secondary data. Qualitative: In an in-depth interview, trained researchers ask questions and listen to and record the answers and then pose additional questions to clarify or expand on a particular issue. In focus group interviews, a small group of people (usually 8 to 12) come together for an intensive discussion about a particular topic. Using an unstructured method of inquiry, a trained moderator guides the conversation according to a predetermined, general outline of topics of interest.

generation, consortia, licensing, brainstorming, outsourcing, competitor's, input, continuous, dynamically, discontinuous, testing, development, prototype, alpha, beta

The product development process: idea generation (development of viable new product ideas). Concept testing (testing the new product idea among a set of potential customers). Product development (development of prototypes and/or the product). Market testing (testing the actual products in a few test markets). Product launch (full scale commercialization of the product). Evaluation of results (analysis of the performance of the new product and making appropriate modifications). Step 1: Idea ______________________ where can new ideas come from?: Internal R&D, R&D consortia, licensing, brainstorming, outsourcing, competitor's products, customer input. To generate ideas for new products, a firm can use its own internal research and development (R&D) efforts, collaborate with other firms and institutions (R&D ________________), license technology, brainstorm, outsource, research competitors' products and services, and/or conduct consumer research. Internal Research and Development: Many firms have their own R&D departments in which scientists and engineers work to solve complex problems and develop new ideas. To develop new product ideas, more and more firms have been joining an R&D consortia, or groups of other firms and institutions, possibly including government and educational institutions, to explore new ideas or obtain solutions for developing new products. In the search for new products, firms buy the rights to use a technology or ideas from other firms through a ___________________ agreement. This approach saves the high costs of in-house R&D, but it means that the firm is banking on a solution that already exists but has not been marketed. Firms often engage in _____________________ sessions during which a group works together to generate ideas. One of the key characteristics of a brainstorming session is that no idea can be immediately accepted or rejected. When companies have trouble moving through these steps alone, they turn to ______________________, a practice in which they hire an outside firm to help generate ideas and develop new products and services. ________________________ Products: A new product entry by a competitor may trigger a market opportunity for a firm, which can use reverse engineering to understand the competitor's product and then bring an improved version to market. Reverse engineering involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents, if any exist. Customer ____________: Listening to the customer in both B2B and B2C markets is essential for successful idea generation and throughout the product development process. Another particularly successful customer input approach is to analyze lead users, those innovative product users who modify existing products according to their own ideas to suit their specific needs. Degrees of "newness" for New Products: Basis of comparison -> ________________________ innovation (requires no new learning by consumers, After four years of product development, Procter & Gamble recently introduced a new, improved disposable diaper.) -> ________________________ continuous innovation (Disrupts consumer's normal routine but does not require totally new learning, The Advanced Photo System (APS) created by Kodak and its partners combines traditional chemical photo processing with digital technology.) -> ________________________ Innovation (Requires new learning and consumption patterns by consumers, The introduction of consumer VCRs in the late 1970s initiated a revolutionized in-home electronic entertainment.) Continuous, Dynamically continuous or discontinuous innovation? Where can ideas come from?: 1.) Take something out of your product 2.) Put something in our product 3.) Answer to consumer gripe 4.) Visible difference 5.) Make the task easier 6.) Use products in a new way 7.) Product substitutability 8.) Look overseas. Step 2: Concept ____________________: Concept is a brief written description of the product. Customers' reactions determine whether or not it goes forward. Testing of the new product ideas among a set of potential customers. Concept testing refers to the process in which a concept statement is presented to potential buyers or users to obtain their reactions. These reactions enable the developer to estimate the sales value of the product or service concept, possibly make changes to enhance its sales value, and determine whether the idea is worth further development. Triggers the marketing research process. Step 3: Product Development: Development of prototypes and/or the product. What are examples of each of these? Prototype, Alpha testing, Beta testing. Product ____________________ or product design entails a process of balancing various engineering, manufacturing, marketing, and economic considerations to develop a product's form and features or a service's features. An engineering team develops a product prototype that is based on research findings from the previous concept testing step as well as their own knowledge about materials and technology. A __________________ is the first physical form or service description of a new product, still in rough or tentative form, which has the same properties as a new product but is produced through different manufacturing processes—sometimes even crafted individually. Product prototypes are usually tested through alpha and beta testing. In ____________ testing, the firm attempts to determine whether the product will perform according to its design and whether it satisfies the need for which it was intended. Test it with employees first in alpha. In contrast, ____________ testing uses potential consumers who examine the product prototype in a real-use setting to determine its functionality, performance, potential problems, and other issues specific to its use.

testing, premarket, test, life, introduction, growth, maturity, decline, innovation, breakthroughs, relative, compatibility, observability, complexity

The product development process: idea generation (development of viable new product ideas). Concept testing (testing the new product idea among a set of potential customers). Product development (development of prototypes and/or the product). Market testing (testing the actual products in a few test markets). Product launch (full scale commercialization of the product). Evaluation of results (analysis of the performance of the new product and making appropriate modifications). Step 4 Market ________________: Premarket tests (customers exposed, customers surveyed, firm makes decision). Test marketing (Mini product launch, More expensive than premarket tests, Market demand is estimated). Example of Test Marketing. Firms conduct ___________________ tests before they actually bring a product or service to market to determine how many customers will try and then continue to use the product or service according to a small group of potential consumers. A method of determining the success potential of a new product, __________ marketing, introduces the offering to a limited geographical area (usually a few cities) prior to a national launch. Test marketing is a strong predictor of product success because the firm can study actual purchase behavior, which is more reliable than a simulated test. Step 5 Product Launch: If the market testing returns with positive results, the firm is ready to introduce the product to the entire market. This most critical step in the new product introduction requires tremendous financial resources and extensive coordination of all aspects of the marketing mix. Step 6: Evaluation of results: How can a firm measure success of a new product? Few products and ideas succeed. Why new products fail: Bad concept, insufficient difference, poor execution, inadequate budget, insufficient market size, bad timing, mistargeting, mispositioning, misjudging the competition, misestimating, market changes, wearing blinders. Diffusion of innovation curve, number of users and time of adoption of innovation. Evaluation of Results: After the product has been launched, marketers must undertake a critical post launch review to determine whether the product and its launch were a success or failure and what additional resources or changes to the marketing mix are needed, if any. Many firms use panel data to improve the probability of success during the test marketing phase of a new product introduction. The product ________ cycle defines the stages that products move through as they enter, get established in, and ultimately leave the marketplace. It thereby offers marketers a starting point for their strategy planning. When the product category first launches and innovators start buying the product, the _________________________ stage begins. In the _______________ stage, the product gains acceptance, demand and sales increase, and more competitors emerge in the product category. In the ___________________ stage, industry sales reach their peak, so firms try to rejuvenate their products by adding new features or repositioning them. If these efforts succeed, the product achieves new life. If not, it goes into the ________________ stage and eventually exits the market. Introduction Stage: The introduction stage for a new, innovative product or service usually starts with a single firm, and innovators are the ones to try the new offering. The growth stage of the product life cycle is marked by a growing number of product adopters, rapid growth in industry sales, and increases in both the number of competitors and the number of available product versions. The maturity stage of the product life cycle is characterized by the adoption of the product by the late majority and intense competition for market share among firms. Marketing costs (e.g., promotion, distribution) increase as these firms vigorously defend their market share against competitors. Using the diffusion of _______________________ theory: The process by which the use of an innovation—whether a product, a service, or a process—spreads throughout a market group, over time and across various categories of adopters, is referred to as diffusion of innovation. The theory surrounding diffusion of innovation helps marketers understand the rate at which consumers are likely to adopt a new product or service. These new products, also called pioneers or ______________________, establish completely new markets or radically change the rules of competition as well as consumer preferences in a market. Using the diffusion of innovation theory, firms can predict which types of customers will buy their new product or service immediately after its introduction as well as later as the product is more and more accepted by the market. With this knowledge, the firm can develop effective promotion, pricing, and other marketing strategies to push acceptance among each customer group. _______________ Advantage: If a product or service is perceived to be better than substitutes, then the diffusion will be relatively quick. ______________________: A diffusion process may be faster or slower, depending on various consumer features, including international cultural differences. ______________________: When products are easily observed, their benefits or uses are easily communicated to others, which enhances the diffusion process. __________________ and Trialability: Products that are relatively less complex are also relatively easy to try. These products will generally diffuse more quickly and lead to greater and faster adoption than will those that are not so easy to try. What factors would lead a product to be adopted more quickly into the market?: Factors affecting product diffusion: relative advantage, compatibility, observability, complexity and trialability. Product life cycle and marketing strategy: For each stage of the PLC - how might the 4P's change? Alternative Product life cycles: The stages (introduction, growth, maturity, decline) can vary in length of time for any product life cycle: Fad, long maturity, seasonal/cyclical sales, positioning - repositioning. Corporate social responsibility: firms generally acknowledge that, in addition to economic and legal duties, they have responsibilities to society. For example, one definition describes CSR as context-specific actions and policies, taking stakeholders' expectations into account, to achieve what is referred to as the triple bottom line: economic, social, and environmental performance.

environment, immediate, Macro, analysis, Decision Process, recognition, recognition, information, internal, external, risk, financial, social, performance, physiological, psychological, evaluated, universal, retrieval, evoked

Marketing ________________________: Consumers -> ___________________ environment: Competition, Corporate Partners, Company -> ____________ Environment: Culture, Demographics, Social, Technology, Economic, Political/Legal. A Marketing Environment Analysis Framework. The immediate environment: Company Capabilities, Competitors, Corporate Partners, The Immediate Environment. Energy Trends. What are current social trends that impact consumer behavior?: Health and Wellness Concerns, Greener Consumers, Privacy Concerns. Point of Campus Calendar case: Trade Offs and trade off ________________, change target will change in product configuration impact sales and demand. Macroenvironmental Factors: In addition to understanding their customers, the company itself, their competition, and their corporate partners, marketers must understand the macroenvironmental factors that operate in the external environment. These factors are culture, demographics, social trends, technological advances, economic situation, and political/legal environment, or CDSTEP. Buyer Behavior: Consumer ______________ _________________ Suggests logical flow: The consumer decision process begins when consumers recognize they have an unsatisfied need and they would like to go from their actual, needy state to a different, desired state. The greater the discrepancy between these two states, the greater the need _____________________ will be. Functional needs pertain to the performance of a product or service. Need recognition -> Information search -> Alternative evaluation -> Purchase and consumption -> Post-purchase. 1.) Need __________________(Do you have this problem?), information search, alternative evaluation(You have a car,but this car is superior. Evoked, Retrieval, Universal. Evaluative criteria, Determinant attributes), purchase, post purchase(cognitive dissonance). Is pizza choice a conscious process? Is college choice a conscious process? How did your decision process play out? 2.) Search for ______________________: blank information search(Already known) and blank information search(Have to seek out). In an ______________ search for information, the buyer examines his or her own memory and knowledge about the product or service gathered through past experiences. In an _______________ search for information, the buyer seeks information outside his or her personal knowledge base to help make the buying decision. Information search takes __________ into account: ____________________ risk is risk associated with a monetary outlay and includes the initial cost of the purchase as well as the costs of using the item or service. ____________ risk involves the fears that consumers suffer when they worry others might not regard their purchases positively. Whereas ________________________ risk involves what might happen if a product does not perform as expected, _______________________ (or safety) risk refers to the fear of an actual harm should the product not perform properly. Finally, ________________________ risks are those risks associated with the way people will feel if the product or service does not convey the right image. 3.)Alternatives ____________________ from set of choices: Evoked -> Retrieval -> Universal: What does each set include? Attribute Sets: Research has shown that a consumer's mind organizes and categorizes alternatives to aid his or her decision process. __________________ sets include all possible choices for a product category, but because it would be unwieldy for a person to recall all possible alternatives for every purchase decision, marketers tend to focus on only a subset of choices. One important subset is ____________________ sets, which are those brands or stores that can be readily brought forth from memory. Another is a consumer's ______________ set, which comprises the alternative brands or stores that the consumer states he or she would consider when making a purchase decision.

marketing mix, product, place, price, promotion

Marketing is the activity, set of institutions, and processes for creating, capturing, communicating, and delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Marketing has shifted from a producer point of view: Products -> Selling & Promoting -> Profits through sales volume (Selling Concept). Customer needs -> Integrated Marketing -> Profits through customer satisfaction (Marketing Concept). Ask questions to gain consumer insights: What triggers the decision to buy? Who in the family makes the decision to buy? Who actually buys? Where does the person buy? Who in the family uses and how do they use it? What features do users want in a new product that might make them switch from an old product? What we refer to as the ________________ _______ or 4Ps, starts with designing a product for a specific consumer target: Promotion: Communicating value. Product: Creating value. Price: Capturing value. Place: Delivering value. _______________ (or service) creates value: Although marketing is a multifaceted function, its fundamental purpose is to create value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs. ___________ delivers the value and entails bringing the product to target: , or supply chain management, describes activities necessary to get the product to the right customer when the customer wants it. Tesla does not sell through dealerships, only Tesla stores. What does this mean for the consumer? Represents all the activities necessary to get the product to the right customer when that customer wants it. ___________ captures the value: everything a buyer gives up (money, time, energy) in exchange for the product. The key to determining prices is to figure out how much customers are willing to pay and assess whether a profit can be made at that point. Everything has a price, although it doesn't always have to be monetary. therefore, is everything the buyer gives up—money, time, and/or energy—in exchange for the product. Marketers must determine the price of a product carefully on the basis of the potential buyer's belief about its value. __________________ communicates the value: is communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their opinions or elicit a response. Even the best products and services will go unsold if marketers cannot communicate their value to customers. is communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their opinions and elicit a response. How did Allbirds founded in 2014, grow its brand in such a short time? People buy benefits, not features. Size is a feature, benefit is portability

continuum, knowledge, standards, delivery, communication

The service product __________________: service dominant -> product dominant. Most offerings lie somewhere in the middle. How does service differ from product?: Factors differentiating services from goods: intangible, perishable, heterogeneous, inseparable. Examine gaps to improve service: Customer expectations for service quality. -> Knowledge gap: Management perceptions of customer expectations. Standards gap: Standards specifying service to be delivered. Delivery gap: Actual service delivered. Communication gap: Retailer communications about service quality. View service recovery as opportunity: Increase Service Recovery: Listen to the customer, resolve problems quickly, provide a fair solution. ______________________ Gap: Align with consumers on what they value: Marketing research: understanding customers, evaluating service quality, understanding customer expectations. The knowledge gap reflects the difference between customers' expectations and the firm's perception of those customer expectations. Firms can close this gap by determining what customers really want by doing research using marketing metrics such as service quality and the zone of tolerance. Today, most service firms have developed voice-of-customer programs and employ ongoing marketing research to assess how well they are meeting their customers' expectations. A systematic voice-of-customer (VOC) program collects customer inputs and integrates them into managerial decisions. An important marketing metric to evaluate how well firms perform on the five service quality dimensions (again see Exhibit 13.4) is the zone of tolerance, which refers to the area between customers' expectations regarding their desired service and the minimum level of acceptable service—that is, the difference between what the customer really wants and what he or she will accept before going elsewhere. ___________________ Gap: Verify consumer's perception of experience meets firm's. Set standards for quality, develop systems to ensure high-quality service. Standards specifying service to be delivered. The standards gap pertains to the difference between the firm's perceptions of customers' expectations and the service standards it sets. By setting appropriate service standards, training employees to meet and exceed those standards, and measuring service performance, firms can attempt to close this gap. ____________________ Gap: Stress test systems: Reduce delivery gaps: Use of technology, provide support & incentives, empowering employees. The delivery gap is the difference between the firm's service standards and the actual service it provides to customers. This gap can be closed by getting employees to meet or exceed service standards when the service is being delivered by empowering service providers, providing support and incentives, and using technology where appropriate. The Delivery Gap: Delivering Service Quality. The delivery gap is where the rubber meets the road, where the customer directly interacts with the service provider. Even if there are adequate standards in place, the employees are well trained, and management is committed to meeting or exceeding customers' service expectations, there can still be delivery gaps. In the service context, empowerment means allowing employees to make decisions about how service is provided to customers. When frontline employees are authorized to make decisions to help their customers, service quality generally improves. ________________________ Gap: Don't over promise: manage customer expectations, promise only what you can deliver, communicate service expectations. The communication gap refers to the difference between the actual service provided to customers and the service that the firm's promotion program promises. If firms are more realistic about the services they can provide and at the same time manage customer expectations effectively, they generally can close this gap.

mission, objectives, planning, analysis, planning, opportunities, implementation, marketing mix, resources, implementation, strategy, tactics, segmentation, targeting, positioning

The three major phases of the marketing plan are planning, implementation, and control. Follow 5-part strategic marketing: Step 1: Business _______________ & _________________ (________________ phase) - Specify a set time frame. Specific, achievable, measurable. Begin marketing plan by setting objectives. What does the organization want to accomplish as a business result? Specify a set time frame. Make objectives: specific, achievable, measurable. Marketing executives, in conjunction with other top managers, define the mission and/or vision of the business. Step 2: Situation _________________ (__________________ phase) (SWOT). Step 1 and 2 are this phase. Follow up by assessing the firm marketplace. How did MSFT assess opportunity?: Microsoft saw opportunity in the fast-growing video gaming market. Microsoft had formidable strengths in developing software and deep pockets. Microsoft's expertise is limited to professional software (Windows, Office), not hardware, not entertainment/gaming, seen as weaknesses. Sony Playstation and Nintendo, already dominant, loomed as threats to a successful business. For the second step, they evaluate the situation by assessing how various players, both in and outside the organization, affect the firm's potential for success. Step 3: Identify ____________________: (______________________ phase): 1.) Segmentation Then, look for opportunity, unmet needs. (this phase)and (marketing strategy), (key demographics), 2.) Targeting, 3.) Positioning(Once you have targeted the group, way we use marketing mix to create that positioning, if we are a high end product we will have a high price, what do customers think about us compared to competitors, this appears to be aimed at me because I care about the environment, Positioning conveys differentiation: A meaningful point of difference gives consumer reason to choose). In the implementation phase, marketing managers identify and evaluate different opportunities by engaging in a process known as segmentation, targeting, and positioning (STP). Step 4: Activate __________________ _______, allocate _________________ (________________________ phase): They then are responsible for implementing the marketing mix using the four Ps: (Product is value creation, Price is value capture, Place - value delivery, Promotion - value communication. A marketing __________________ is a means by which a marketing goal is to be achieved, characterized by a specific target market and a marketing mix program (four P's) to reach it. It identifies (1) a firm's target market(s), (2) a related marketing mix (its four Ps), and (3) the bases on which the firm plans to build a sustainable competitive advantage. In the implementation phase of the marketing strategy, when firms are identifying potential markets and ways to deliver the four Ps to them, firms must consider several pertinent issues. Marketing ______________ - are detailed day-to-day operational decisions essential to the overall success of marketing strategies. Engage in social media listening: during super bowl, major holidays, major sports, cyber monday, academy awards. are a series or set of strategic methods or actions aimed at promoting a business' goods or services. The aim is to maximize sales and maintain a competitive good or service. Good, in this context, means product. Sending emails to existing customers and targeted consumers. Reaching customers and prospects through social media websites. Exhibiting at trade shows. Step 4 includes segmentation, targeting, positioning: The process of dividing the market into groups of customers with different needs, wants, or characteristics—who therefore might appreciate products or services geared especially for them—is called market _________________________. After a firm has identified the various market segments it might pursue, it evaluates each segment's attractiveness and decides which to pursue using a process known as ______________________. Finally, when the firm decides which segments to pursue, it must determine how it wants to be positioned within those segments. Market ______________________ involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.

performance, metrics, control, metric, portfolio, growth, market share, analysis, product, relative, penetration, development, market, diversification,

The three major phases of the marketing plan are planning, implementation, and control. Follow 5-part strategic marketing: Step 1: Business mission & objectives (planning phase). Step 2: Situation analysis (planning phase) (SWOT). Step 3: Identify opportunities: (implementation phase). Step 4: Activate marketing mix, allocate resources (implementation phase). Step 5: Evaluate _________________________ using marketing ______________, adjust (________________ phase): Finally, this phase entails evaluating the performance of the marketing strategy using marketing metrics and taking any necessary corrective actions. Assess marketing effectiveness. A ___________ is a measurement system that quantifies a trend, dynamic, or characteristic. Metrics are used to explain why things happened and help project the future. What are some metrics firms might use? They make it possible to compare results across regions, strategic business units (SBUs), product lines, and time periods. Evaluate ___________________ performance: Assess portfolio by _______________, and ______________ ____________, using the Boston consulting Group (BCG) Matrix: High and low relative market share and high and low market growth rate. They have a mix of products so they use it to choose which products they want to invest in further. Growth is static so this graph isn't always necessary. E-trade and tries to get people thinking about wanting to save for their child's education in college. In portfolio ___________________, management evaluates the firm's various products and businesses—its "portfolio"—and allocates resources according to which products are expected to be the most profitable for the firm in the future. Portfolio analysis is typically performed at the strategic business unit (SBU) or ________________ line level of the firm, though managers also can use it to analyze brands or even individual items. The circles represent brands, and their sizes are in direct proportion to the brands' annual sales. The horizontal axis represents the relative market share. In general, market share is the percentage of a market accounted for by a specific entity51 and is used to establish the product's strength in a particular market. It is usually discussed in units, revenue, or sales. A special type of market share metric, _________________ market share, is used in this application because it provides managers with a product's relative strength compared with that of the largest firm in the industry. The vertical axis is the market growth rate, or the annual rate of growth of the specific market in which the product competes. Market growth rate thus measures how attractive a particular market is. Marketing strategy: What are options for growth?: Market _____________________(send reminders to get more brushes every month, use the same product for different uses): employs the existing marketing mix and focuses the firm's efforts on existing customers. product ________________________: a product strategy, offers a new product or service to a firm's current target market. ________________ development: (go overseas: A market development strategy employs the existing marketing offering to reach new market segments, whether domestic or international. _________________________ strategy: introduces a new product or service to a market segment that currently is not served. Diversification opportunities may be related or unrelated. In a related diversification opportunity, the current target market and/or marketing mix shares something in common with the new opportunity. In contrast, in an unrelated diversification, the new business lacks any common elements with the present business. Unrelated diversifications do not capitalize on either core strengths associated with markets or with products. Consider the broader market environment.