Principles of Marketing - Final

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

Alternative evaluation: The stage of the buyer decision process in which the consumer uses the information to evaluate brands in the choice set It is very valuable for marketers to learn what traits between brands are the most important to consumers, so that they can understand how to better appeal to consumers over their competition.

How does Amazon and P&G work together in their vendor-flex program?

Amazon reduces the cost of storing bulky objects P&G uses Amazon to transport products at a cheaper price

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

Shinola understands that consumers of luxury goods will pay more for the intangible parts of their products. People appreciate that Shinola is based in Detroit, a city suffering from the loss of jobs caused by the fall of the american auto industry. This appreciation makes people want to buy Shinola because of the idea that buying Shinola is helping the people of Detroit.

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

commercialization: introducing a new product to the market

What is a "Socially responsible marketing program" and how does it benefit a company? (p. 417-418)

o Being aware of the many legal and ethical issues surrounding marketing communications, working hard to communicate. Attracts eco-friendly customers and lowers costs

What are the six stages of Buyer - Readiness"? (p.408)

o Buyer-readiness stages: the stages consumers normally pass through on their way to a purchase o Awareness o Knowledge o Liking o Preference o Conviction o Purchase

How does Red Bull use Sales Promotions and Events in their Marketing program?

o Energized fans with a unique product, brand personality and event-marketing approach o Holds hundreds of events designed to bring community together o Extreme sports events and athletes with off the grid experiences o Red Bull Stratos project with extreme skydiver jumped from a helium balloon breaking the sound barrier and numerous other records

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

- A marketers job is to display to a consumer how a good will fix one of their problems, so by better understanding how a good does or does not help a consumer is very valuable for a marketer

When a company practices "market-skimming" what are they doing?

- MARKET-SKIMMING PRICING: Setting a high price for a new product to skim maximum revenues layer by layer from segments willing to pay the high price; the company has fewer but more profitable sales. Only hunting big fish

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

-brand logos are used to build notoriety, and send messages about the brand itself -makeovers are used to modernize a brand look -a problem with this is that for some reason loyal consumers are worried by the change and can cause an uproar by having mass protests of the changes

Describe how good supply chain management systems work to deliver marketing value for the consumer?

Supply chain management is the managing of upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers

Guerilla Marketing and Buzz Marketing Campaigns have a unique but effective design. How do they work? (p.411)

o Guerrilla Marketing: what was done to Lego/Shell, characterized by low-costs and being unconventional. Attacking them. o Buzz Marketing: cultivating opinion leaders and getting them to spread information about a product or service to others § Netflix recruits Grammasters, influencers who post Netflix related posts

The airline industry pricing practices and the Spirit Airline strategy has many interesting rules? Describe Spirit Airlines pricing practices, like "ala carte" or auction-based pricing. What is the pros and cons? Why consumers like or dislike their methods?

- "Bare Fare" Your ticket will get you a seat on a plane to your destination almost nothing more, anything additional, drinks, pillows, more legroom, will cost extra. Prices are insanely low at Spirit, but you are getting exactly what you paid for. - Auctions allows for flyers to bid on seats - Pros o Cheap as hell and consumers can get great deals - Cons o VERY poor service, and auctions ensure people with the highest perceived value at any given moment get the good

How can a company make a lot of money even in the maturity stage of a product?

- By modifying their product and the market for their product, most competition will begin to lower prices, and some will even drop out. Companies should look to find new customers from people who already consume the product, just from their competition.

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

- It wants its engineers to pursue bold projects that would normally be shot down in early development - The company is hoping to sift through many adequate ideas (balloon that can provide wifi in remote areas for months at a time) to reach a few highly valuable one (self-driving cars)

What is the purpose of benchmarking in setting strategy?

benchmarking is comparing the company's products and processes to those of competitors or leading firms in other industries to identify best practices and find ways to improve quality and performance used when entering a new market

Why is the choice of marketing channels critical in maintaining your brand image/essense

channel decisions affect every other marketing decision

What is a value delivery network?

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

Give some examples of "channel conflict" and how do "power" relationships play in channel management. What is "horizontal" conflict and "vertical" conflict?

Disagreement on goals (within the channel) Horizontal--firms at the same level of the channel Vertical--different levels of the same channel (ex: McDonald's corporate & McDonald's franchises)

Dunkin donuts refreshed their Brand and Marketing Strategy recently. What does the Brand Essence and slogan "Nothing too fancy - just meeting the everyday, all-day needs of the Dunkin tribe" say about the company.

The company has a very established target market. Not trying to go after Starbucks customers. Instead it avoids fancy names (stuffed melt instead of Panini) in order to offer coffee at a reasonable price to working-class customers. It also establishes consistency of its offerings.

Facebook founder Mark Zuckerberg often gives away many of his software products that work with his software. What is the strategy behind that and what does he hope to get out of it?

Zuckerberg is giving away software products to help get customers for facebook and to get real advertising opinions

What is the role and purpose of a public relations department in the company? (p.447)

o Design activities that engage and build good relations with company's touch points: press relations, product and brand publicity, public affairs, investors, government and donors o Power to engage consumers and make a brand part of their lives and conversations

What is a "viral marketing" campaign and how do you set one up?

o Digital version of word-of-mouth o Videos, ads and other content that is so infectious that customers will seek it out or pass it along o Engaging, inexpensive since people pass it along o Google's "Friend's Furever" featuring unlikely animal pairings to celebrate diversity "be together, not the same" o AIDA: attention, interest, decision, action

Bill Rossiter in his talk to the class gave create to the "geek squad" in the survival of Best Buy. What did they do for the company?

Gave a resource for person to person tech support that could be summoned to houses. Incredibly valuable to the technical inept.

What is marketing?

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

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

Initially the company focused on providing users with equipment for capturing videos then changed their focus to the capture broadcast and recognition and recognition aspects of their products this was to aid company growth, and GoPro was able to attract more customers because average people got a chance to feel like professionals because how easy it is to use when someone buys a GoPro, they are not only buying a camera, they are buying access to a way of telling their story through videos. GoPro enables its users to share the most important moments in their lives through video.

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

It is very expensive to have quality relationships with lots of people luxury marketing: having a higher value with limited production

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

Make it incredible easy to leave reviews and rating for their experiences

Name several types of new retail store models?

E-tailers, dollar stores, warehouse stores, and mom and pop shops (spontaneity and excitement, new and exclusive products, limited time)

Logistics Information Management is critical to making a large enterprise run efficiently. What is ERP-enterprise Resource Planning and how does it help a company replenish their products?

ERP is the integrated management of core business processes, often in real-time and mediated by software and technology. ERP systems track business resources-cash, raw materials, production capacity- and the status of the business commitments: orders, purchase orders, and payroll

Why is your channel strategy so important in developing an International marketing program?

Each country has their own unique distribution systems Because foreign markets are generally very different from local ones, and companies want to ensure they are reaching their consumers in the best ways possible

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

Starbucks is a unique coffee shop, not only are their customers receiving their coffee, but they also gain the atmosphere and the experience of starbucks It is a social setting, free wifi, name on the cup, starbucks has worked to make their customers feel as though they cannot find this experience anywhere else

What is the role of a "sales agent" in the marketing value chain? How do they become more powerful and vital for a business?

The "sales agent" is part of the primary marketing value chain. They are responsible for creating, communicating, delivering, and exchanging offerings that have value for customers. They become more powerful and vital for a business when they are able to sell large amounts of a product.

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

They focused on creating many basic barbie dolls and constantly adding enhancements for barbie to use that are sold separately.

What is an undifferentiated and differentiated marketing strategy?

Undifferentiated marketing strategy-a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer Differentiated marketing strategy-a market-coverage strategy in which a firm targets several market segments and designs separate offers for each

How did the Four P's help Staples develop a new product and organize their stores?

Price- Product Promotion Place

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

Real Time Marketing: marketing that links into current events that are relevant to an audience in order to engage them with a brand ... "in the moment" Ex: Oreo Super Bowl tweet: You can still dunk in the dark"

Gavina Coffee uses 11 different types of channels to help them grow. What are the variety that they use in the 20 states they sell their products?

Retailers, food, suppliers, and small coffee shops (largest channel=McDonald's)

Blogs have enabled WOM, MOM and many other ways to communicate? What role do they play in the Marketing Mix?

o Email marketing, Word-of-mouth, marketing websites, omni-channel retailing, dynamic ads, build online communities to communicate products and updates o Show promotions, updated prices, locations for purchase

Describe the current strategies of Amazon and Walmart in their current Price War for Online Supremacy? What approach and competitive strategy are each one using?

- Amazon is focusing on providing better delivery and a larger array of goods, as well as an easier buying experience - Walmart is trying to have the best prices, but their inventory is strictly Walmart goods

Printer manufacturers, Amazon Kindle and shaving companies often use "captive" pricing to make profits. How does it work?

- CAPTIVE PRODUCT PRICING: Setting price for main products low but necessary add-ons high, to attract customers with low initial prices, and then profit once they are trapped o EX: Razor blades, video game consoles, amazon kindel

How is a "price" created for each product and how is it validated by the marketplace?

- PRICE: The amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using a product or service

Psychological pricing is used when a store practices "even/odd pricing" What do they do?

- PSYCHOLOGICAL PRICING: Pricing that considers the psychology of pricing and not simply the economics; the price is used to say something about the product -consider the psychology (not just the economics) behind the price; set a price in odd numbers (499 vs 500)

Taco bell uses price as a weapon to compete. What is their method and how does target marketing contribute to their strategy of what to charge?

- Perfect example of value-based pricing, TB understands what amount consumers are willing to pay for a good and then create their products to fit those prices. Many people are not going to TB specifically because it is serving the foods that they want, it is because the price is so low and the food is satisfying

Customer Relationship Management relies on good measurement "touchpoints". What is a touchpoint analysis and what does one discover from a TPA?

CRM: Managing detailed information about individual customers and carefully managing customer touch points to maximize customer loyalty. By using CRM to understand customers better, companies can provide higher levels of customer service and develop deeper customer relationships. They can use CRM to pin- point high-value customers, target them more effectively, cross-sell the company's products, and create offers tailored to specific customer requirements. A touchpoint analysis analyzes each interaction with the customers and clients and the company. Therefore, the company can see where each customer saw their ads or purchased their products and can target these people in order to build customer loyalty. Customer loyalty is the main reason for TPAs as the company wants to build as much customer loyalty as possible.

How does "crowd sourcing" help in new product development?

Crowd Sourcing: inviting broad communities of people- customers, employees, independent scientists and researchers, and even the public at large--into the new product innovation process -this outsources some of the idea production process, but more importantly gives the company excellent insight to consumer needs

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

Dole foods is a produce based company, and so they need to ensure that their suppliers are delivering fresh, well kept fruit to them; Always maintains its high quality product standards Improving as a company: started out with just pineapples, now sell all kinds of fruit and vegetables Uses machinery that peels/cuts and packages fruit and vegetables very quickly Uses canning techniques that allows them to be shipped all over the world

How were DuckDuckGo strategist going to take on the big guys like google and facebook? Why did they pick their strategy?

Duckduckgo emphasizes their privacy policy: they are a search engine that does not track what the user searches. Even though they are competing with much bigger entities, they believe that they will be able to attract the right kind of customer who values privacy

Measurable, Accessible, Substantial, Differentiable and Actionable are the five requirements for a segmentation exercise to be successful. Describe each characteristic features.

measurable- the size, purchasing power, and profiles of the segments can be Measured accessible-the market segments can be effectively reached and served substantial- the market segments are large and profitable to serve differentiable- the segments are conceptually distinguishable and respond differently to different marketing mix elements and programs actionable-effective programs can be designed for attracting and serving the segments

How does one practice Cost-Based Pricing and what is the advantage and disadvantage of this method? What is cost-plus method of pricing?

- COST BASED PRICING: Setting prices based on the costs of producing, distributing, and selling the product in addition to fair return for effort and risk - Pros o Attractive to costumers for low prices -if the business can make the product for less than their competitors, they can price it lower, and do more in bulk sales, higher margins - Cons o Lower profits are caused from only charging the necessary, may affect efficiency, your income is directly tied to time Cost-Plus method: adding a standard markup to the cost of a product, -many people feel that cost-plus pricing is fairer to both buyers and sellers. Sellers earn a fair return on their investment but do not take advantage of buyers when buyers demand becomes great.

What is "dynamic pricing" and how does Amazon implement it?

- Dynamic pricing is the process of determining pricing based of off demand at any given moment. Recently companies like amazon have come under fire for such aggressive tactics like rapidly changing the prices of any given good throughout a day. For example, a videogame rapidly dropping from $50 to $15 dollars with dips and rises on one black Friday from Amazon trying to compete with best buy and Walmart to have the lowest price on the market.

How are "shipping costs" used in geographic pricing as a tactic to pass along price discounts or increases? Example might be FOB-origin pricing, uniform-delvivered pricing, zone pricing, basing point pricing or freight absorption pricing.

- FREE ON BOARD (FOB) ORIGIN PRICING: Pricing in which goods are placed free on board a carrier; the customer pays the freight from the factory to destination CONSIDERED FAIREST o AKA Consumers pay for the good at the goods own price and value, and pay for shipping so that shipping costs are regulated - UNIFORM DELIVERY PRICING: Manufacturers charge all customers the same price for shipping regardless of their origin - ZONE PRICING: Pricing in which the company sets up 2 or more zones. All prices are the same for all consumers within a certain zone - BASING-POINT PRICING: Pricing in which the seller designates some city as a basing point and charges all customers the freight cost from that city to a customer - FREIGHT ABSORPTION PRICING: Pricing in which the seller absorbs all or part of the freight charges in order to get the desired business o Used for market penetration

Trader Joe's had a new pricing mix and marketing strategy that changes the nature of pricing decisions. How do they price? Good-Value or value-added pricing?

- GOOD VALUE: off-brand BS - Value-added: Brand names - TJ's is mostly Good value, their store is made up of mostly their own brands, and served as a cheaper option than whole foods

An aggressive approach to eliminate competition is "market-penetration pricing". What is the goal and objective of this strategy?

- MARKET PENETRATION PRICING: Setting a low price on a new product in order to attract a large number of buyers and a large market share. Sacrificing high sale profits to better promote and expand a product, resulting in a larger market share. Hunting a whole lot of small fish - Lower prices Higher sales - Conditions for this to work: o Market must be highly price sensitive, high elasticity o Production and distribution costs must both decrease while sales volume increase o Low price must help keep out competition o Providers must keep price low so as to not lose customers

Laws prohibit "retail price maintenance"--where a manufacturer requires a dealer price a product at a certain level, creating MRSP. What is MRSP and what is Price Discrimination with channels?

- MSRP: Manufacturer's suggested retail price o Retailors oppose this because it displays the production cost of goods, or the amount of money the producer of a product recommends the product be sold for.

Why are international prices hard to determine and what are the factors that go into selling them?

- Markets around the world greatly vary, so producers need to account for that when selling goods. Generally lower cost goods will greatly vary around the world, but incredibly expensive goods like jet airplanes will cost the same regardless of where they are bought - Tariffs are also a large factor, Italian clothing will be significantly cheaper in Italy because of the increase of supply, and removal of shipping and tariff costs.

As manufacturer likes setting a "reference price" as a psychological marker. How do they use it? A "promotional price" is set but there are often restrictions on them...what are they?

- Most people do not know what the costs of production are so they judge goods based off of their prices, reference prices are used in the sense that a person think most options for a product should cost $X - REFERENCE PRICES: Prices that buyers carry in their minds and refer to when they consider a certain product - PROMOTIONAL PRICING: Temporary pricing products below the list price, and sometimes even below costs, to increase short term sales

JC Penney made a major mistake in changing their price philosophy. What did they do?

- Originally practiced High/Low pricing, regular prices are really expensive, but markdowns and coupons were plentiful. JC Penny was known for their coupons. Then company shifted to EDLP and people thought they were going to be losing a lot of money because coupons were no longer a factor. People were outraged because they did not realize JC Penny was lowering all prices

Pharma pricing model is often criticized. What are the two sides of the argument for why Pharma prices are set the way they are? What is predatory pricing? Price fixing?

- PREDATORY PRICING: Setting prices lower than cost for a small amount of time to drive competition and then raising prices once many competitors are driven out of the market - PRICE FIXING: When competitors collude and agree on a price that simulates monopolistic conditions in the market - Pharma is known for being both an incredibly expensive and profitable industry. Developing new drugs is extremely expensive

When would you use "price-bundling" prices and what are the good and bad points? What is the difference between passing along discounts or rewarding allowances?

- PRODUCT BUNDLE PRICING: Combining several products and offering the bundle at a reduced price a. Progressive insurance, computer software (Microsoft office), AT&T phone/cable/internet - Pros: Draws in consumers to buy products they initially didn't consider - Cons: Losses in profits for producer

What process did Sara Lee use in developing the "soft and smooth" white bread?

- PRODUCT DEVELOPMENT (SE): developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering. - Sara Lee: A ton of market research and testing - TEST MARKETING: the stage of the new product development in which the product and its proposed marketing program are tested in realistic market settings

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

- PRODUCT LIFECYCLE: The course of a products sales and profits over its lifetime o 1. PRODUCT DEVELOPMENT: before a good is commercialized, when it is actually being created o 2. INTRODUCTION: when a new product is first distributed and made available for purchase o 3. GROWTH: Sales start to climb quickly o 4. MATURITY: When a products sales growth slows or levels off o 5. DECLINE: when sales begin to decrease and a product begins to die

What is the Product Line Pricing? Give an Example

- PRODUCT LINE PRICING: Setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors' prices § A company might offer a multitude of membership options ranging in price and features. Bronze $10, Silver $20, Gold $30, Platinum $50

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

- Products need to be tailored to better fit their surroundings in foreign markets. The original goods should still be prominent, but additional bridging goods need to be present aswell o McDonalds will add salmon burgers in Norway, or mashed potato burgers in China, ect - Styles of providing goods or services also need to be modified o McDonalds has been successful in France because it has changed many venues to fit French styles and cultural norms for eating (longer visits/more food) - Translations were not mentioned but also important Nova car sold poorly in Latin America because the name translates to No Go

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

- Reviews effect both size and speed of product growth, especially WOM - Introduction of new features is very important - Profits need to be increased by decreasing the costs of production - Consumers need to be educated about the product - Competition needs to be gauged and strategies to stay ahead must be implemented

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

- STYLE: A basic and distinctive mode of expression - FASHION: A currently accepted or popular style in a given field - FAD: A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity

How does a consumer use "showrooming" to get the best price? Why do retailers hate the price?

- ShowRooming is visiting a physical store and using a product to judge it then going online to buy it Retailors spend money on allowing customers to try multiple different products and help them pick the right one, because of showrooming these costs are not paid back because shoppers go to buy their products from their competition

What are "target-profit pricing" and "break-even analysis" and how are they used to determine price?

- TARGET-Profit PRICING: Calculating how many units of a given product need to be sold before breaking even and eventually receiving wanted returns - BREAK EVEN ANALYSIS: An analysis on what amount of sales is needed to cover costs. Used to realize sales needed for profit to become positive

When a company adopts "high/low" pricing (JC Penney) and battles against EDLP pricing (Walmart) how do they compete?

- They make it appear as though they have high quality products by giving an originally high prices, then change to low prices using discounts. EDLP is just constant low pricing -High/Low: start by selling high price then later selling it on clearance or discounted price (JC P.) -Everyday low price (EDLP)-promising a low price without the need for discounts (Walmart)

How did the Ritchie Brothers establish price for their used Machinery and what did they do to increase that price? What is the advantage for the seller when they use "auction pricing"?

- They start the price at one that would cover their costs, and everything more is extra for them - Advantages o People are likely to have a different mindset when bidding in an auction o Person who values the good the most will be the buyer

Lululemon stores take prestige pricing to the limits. What do they do to get value and such high price products?

- They target a group of people who generally will have extra funds for luxuries like high class workout clothes - They make sure their consumers think that the high prices are necessary for profits, by being one of the few suppliers of quality workout clothes - People assume quality from price -selling quality products that create a status symbol -wearing clothes=a sign of healthy lifestyle

What are some of the reasons that carrying a weak product in decline can hurt the company and be very costly?

- Weak products could hog management time and waste other intangible resources - By trying to save a dying product, companies often will miss opportunities to promote new products

Why is the shopper at the Whole Foods store willing to use a different type of pricing philosophy at that store and what is their main criteria for shopping there?

- Whole Foods buyers know that cheaper options exist but instead want to buy Whole Foods because they believe that they are paying more for higher quality, which they can afford. This is described as a type of minor everyday luxury

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

-Brand equity: the differential effect that knowing the brand name has on customer response to the product or its marketing -Brand Value: The total financial value of a brand, measured by: -differentiation: what makes the brand stand out -relevance: how consumers feel it meets their need -knowledge: how much consumers know about the brand -esteem: how highly consumers regard the brand

The new trend of "customer-generated marketing" has had a big impact on companies marketing plans and messaging. What is it?

-Brand exchanges created by consumers themselves--both invited and uninvited by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers. -On blogs, social media, review websites

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

-Cobranding: the practice of using the established brand names of two different companies of a product -This allows two separate companies to combine to do something neither could do on their own. Spongebob square pants clothing for example, Nickelodeon wouldn't be able to make clothes, so they had other brands help them to make highly successful products. Or Doritos and taco-bell creating the Doritos locos crunch wrap. -These combinations need complex legal contracts and licenses, each brand wants to protect themselves from the other

The "Bottled Water" industry was created as a "perfect storm" of several societal factors coming together 2002-2005 that lead to great success and growth. What are they?

-Every Arab country in the Middle East had water scarcity crisis -Region needed to double amount of water compared to past -High disposable income, easy market access for suppliers, increasing health awareness contributed to increased demand in bottled water industry

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

-IOT internet of things- global environment of connecting every one thing with another, cars to phones to buildings to computers all connected -According to research IOT will be a $3 trillion market by 2020

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

-Idea screening: screening new product ideas to spot good ones and drop bad ones ASAP -Product concept: a detailed version of the new product idea stated in meaningful consumer terms -Product image: the way consumers perceive and actual or potential product

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

-Intangibility: services that cannot be seen, tasted, felt, heard, or smelled before they are bought -inseparability: services are produced and consumed at the same time and cannot be separated from their providers -variability: the quality of services may vary greatly depending on who provides them and when, where, and how they provided -perishability: services cannot be stored for later sale or use

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

-Internal marketing: orienting and motivating consumer-contact employees and supporting service employees to work as a team to provide customer satisfaction (making employees happy) -Interactive marketing: training service employees in the fine art of interacting with customers to satisfy their needs -Improving consumers view of company from how their interactions go

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

-Line extensions: extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product or category -KFC used to serve mostly fried chicken but has grown to include grilled chicken sandwiches and other goods -Brand Extensions: extending an existing brand name to a new product or category -smart thermostat companies moved to including carbon monoxide alarms -Multi-Brand: when creating new products, giving each their own brand name, that are all subordinates of a larger ones -Ex: Pepsico owns different sodas, energy drinks, bottled waters, and fruit drinks -all these brands are their own entities that can expand into new markets that PepsiCo alone could not reach. PepsiCo owns Starbucks, and Mountain Dew, but those two brands are very different -New Branding: When a company offers a new brand for a new type of product, for example, toyota creating Lexus for its new comfortable cars

In developing a "marketing strategy statement" what does a developer include in their initial proposal?

-Marketing Strategy Development: designing an initial marketing strategy for a new product based on the product concept -marketing strategy statement: has 3 parts 1.) describes the target market; the planned value proposition; and the sales, marketshare, and profit goals for the first year 2.) outlines the products planned price, distribution, and marketing budget for the first year 3.) describes the planned long run sales, profit goals, and marketing mix strategies

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

-New products are: original products, product improvement, product modification, or new brands -they are the life blood of a company, created products will always fade in popularity over time, so company growth usually requires new products -New product development (SE): the development of new products, through a firm's development efforts -IDEA Generation (SE): the systemic search for new ideas

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

-Questions that are difficult or personal can cause the respondent to become defensive and cause their opinions be skewed by their attitude. Therefore, questions should be placed in logical order so as to not confuse the respondent causing their responses to change. Researchers should also use care in the wording and ordering of questions. They should use simple, direct, and unbiased wording. Questions should be arranged in a logical order. The first question should create interest if possible, and difficult or personal questions should be asked last so that respondents do not become defensive.

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

-RWW -Real: is it possible? Is there a need and a market for this product -Win: does this product offer a sustainable competitive advantage? -Worth doing: does this product fit the companies overall growth strategy?

Describe elements of Buffalo Wild Wings marketing strategy. What is the key to their success?

-Revolves around the B-Dub experience -Utilize restaurant as a total eating and social experience (watch sports, cheer on teams, meet new friends that are into the same thing) -Designs restaurants to imitate stadium experience. -Appeals to avid sports fans as well as families -never rush guests, ecourage people to stay long periods of time and enjoy the experience

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

-Toys have an especially low PLC -New products must be seen as a type of extension and enhancement of later ones

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

-Under Armour gives the public an opportunity to present ideas for new products, and makes a big show out of selecting their winner from 12 finalists and presenting a cash prize and contract to be the winner. -Bose massive investments are put into R&D, almos tan unhealthy amount

How did Snicker's bars use Digital Media to enhance their IMC campaign of "you're not you when you're Hungry"

-Use multiple platforms across all sorts of devices -social media, television, print, packaging -competitions through YouTube and Facebook, hashtags, snap a selfie contest -Unique brand message consistent throughout all the new TV ads, print -Packaging labels with mood descriptors

Why was the ALS Ice bucket challenge so successful?

-Was structured as a challenge, encouraged people to share it and make friends participate -Utilized real time marketing using power of social media -Celebrity endorsements -No money required up front

Zappos successfully re-thought the "telesales" model and adopted the "deliver happiness" theme to their clients. What was their secret of success in this new model?

-Zappos understood the frustration many consumers had when dealing with product support so they pioneered the change to be more accommodating -Zappos offered free returns - Zappos made sure its telemarketers were very happy, well paid, employees who would enjoy doing their job and be helpful and refreshing to consumers in need -KEY: happy employees offer better results when interacting with consumers

What is a "focus group" and why would you use one?

-a focus group is when a small group of people meet with a trained moderator to talk about a product, service, or organization. It can be very useful in order to gather important information on a product or how people perceive a company's brand or product. It allows the company to hear opinions from possible customers.

In non-probability sampling, what is the difference between convenience, judgement, or quota samples?

-convenience- the researcher selects the easiest population members from which to obtain information -judgment sample- the researcher uses his or her judgment to select population members who are good prospects for accurate information -quota sample- the researcher finds and interviews a prescribed number in each of several categories

Name four steps of Market research. Why is step one most critical?

-defining the problem and research objectives: this is the most important step because it guides the entire research process -Developing the research plan for collecting information -Implementing the research plan- collecting and analyzing the data -Interpreting and reporting the findings

Explain the difference between Exploratory, Descriptive and Causal Research.

-exploratory- the objective is to gather preliminary information that will help define the problem and suggest hypotheses -descriptive-the objective is to describe things, such as the market potential for a product or the demographics and attitudes of consumers who buy the product -casual-the objective is to test hypotheses about cause and effect relationships

How does Chick-Fil-A distinguish themselves from other QSR's?

-focus on customers is key, ned to provide the best possible experience to its customers -has a limited menu, original breaded chicken sandwich -customer service must go above and beyond -customer experience-enhancing strategy: give them something to do...eat more chicken. -very family-oriented, and follows religion

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

-generational marketing is creating separate products and marketing programs for each generation Good: undeniable differences between our generations, businesses should take advantage of this when creating campaign strategies Bad: risk turning off an entire generation each time you craft a product or message that appeals affectively to another

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

-market research-researchers define the problem and objectives of the research and define a plan that will gather the exact information needed to efficiently gather the data and present it to management. The value that this method gives is the information from their customers about what they plan on doing that could determine whether their idea will fail or succeed -touchpoint analysis-analyzing each interaction with customers and clients. Like website interaction, promotions, call centers, surveys, feedback, ads, commercials. The companies look at how they are reaching their customers and what is the most effective so that they can continue to target that area or put more resources towards it. It helps the company continue to reach more and more customers effectively -primary collection-primary data is normally collected through surveys, observations, and experiments. This allows companies to specifically target certain groups and allows the company to gather as much data as needed, while the secondary data is usually not enough -secondary collection- secondary collection is information that already exists somewhere, having been collected for another purpose. Companies can buy this information from outside suppliers. The value of this is that secondary data can usually be obtained faster and at a lower cost than primary data, allowing companies to gather information faster while spending less money -competitive intelligence-is the systematic monitoring, collection and analysis of publicly available information. It can be done by observing customers firsthand, quizzing the company's own employees, benchmarking competitors' products, online research and monitoring social media buzz. Good competitive marketing intelligence can help marketers gain insights into how consumers talk about and engage with their brands.

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

-marketing by attraction is creating market offerings and messages that engage consumers rather than interrupt them -utilize social media to great extent -

When using mechanical instruments for research what is biometric measuring and neuromarketing?

-neuromarketing- is when researchers use EEG and MRI technologies to track brain electrical activity to learn how consumers feel and respond -biometric- uses heart rates respiration rates, sweat levels, and facial and eye movements

In probability sampling, what is the difference between random, stratified or cluster sampling?

-random sampling-every member of the population has a known and equal chance of selection -stratified random sample- the population is divided into mutually exclusive groups (such as age groups), and random samples are drawn from each group -cluster sampling- the population is divided into mutually exclusive groups (such as blocks), and the researcher draws a sample of the groups to interview

Before one can develop a good marketing strategy, it is important to perform a "situational analysis". What are the key components of the sa?

-strengths, weaknesses, opportunities and threats

What is the advantage of a social media center?

-the advantage of a social media center is being able to respond personally to people's complaints or concerns that they post. This allows companies to reach their customers on a more personal level and be able to see customers reactions and thoughts on their products almost immediately

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

1. Product and service attributes 2. Branding 3. Packaging 4. Labeling and Logos 5. Product service and support

The Marketing Process have four steps in creating value. What are they?

1. Understand the marketplace and customer needs and wants. 2. Design a customer value-driven marketing strategy 3. Construct an integrated marketing program that delivers superior value 4. Engage customers, build profitable relationships, and engage customer delight

Apple Computer gets a strong premium price for their product and rarely discounts. Their competitors like Xiaomi have created a cheaper alternative for their phone. How should Apple counter this type of competition?

Absolutely not, part of the reason the apple price is so high is because people believe that it should be that high, Apple is branded as the futuristic high performing expensive smartphone that should satisfy all a person's needs, by creating a lower value product, the company risks compromising its brand's power

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

Aldi's brand differentiation revolves around producing quality food for much cheaper prices than their competitors (focus on lowering prices). Aldi stores offer few options/variety for each products and typically do not carry name branded foods. (Often their own store branded foods-almost 95%) Their stores are also smaller and operated by smaller staffs. They also operate only at times which are peak shopping times, they do not focus on losing money by operating at times where a small amount of people shop.

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

Answer the question "Why should I buy your brand?", quality, performance, style, price, why product is better than the others (pg 208)

Many things affect a "buying decision". "Attitude of others" and "unexpected situational factors" occur that might alter your choices. What are they and how can they have you change?

Attitudes of others: Other people, who are not directly involved in the purchase, may have a large influence on the buyers behavior Unexpected situational factors: Factors that suddenly change a person's values when getting a product. For example, if the economy declines, a person may value affordability more than comfort

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

Because families themselves are their own consumer segment. The family is the most important consumer buying organization in society. Changes in the general family dynamics will change how you market For example in past years marketers would target moms because traditionally they would be making most household purchases, but now there is a shift away from that because of the growing number of dads taking on household management

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

Because when analyzing a lifestyle you can see spending patterns It profiles a person's whole pattern of acting and interacting in the world When analyzing consider AOI dimensions, activities, interests, and opinions

Why must the price demand curve be studied before any strategy or decisions are made on price?

Because when understanding the elasticity of demand, producers can better gauge how to price a good. Low elasticity will result in high prices because price is not a large factor in the consumers decision to buy a good for whatever reason

How does "Behavioral segmentation" help improve customer loyalty or "occasion" shopping on holiday's or "Benefits" segments?

Behavioral segmentation helps improve customer loyalty or "occasion" shopping on holidays or "Benefits" segments. During occasions it keeps customers coming back for the product they desire. It helps firms build up products usage. For example. Pumpkin Spice Lattes at Starbucks are only available during the fall. Benefit segmentation requires companies to deliver the benefits that their customers are looking for. As a result customers are more inclined to continually buy the product as their satisfaction is met. (Ex: Fitbit)

"Old Rules" talks about "Brand Essence". What is it and why is it vital for a company to understand it?

Brand essence is the heart and soul of a brand - its fundamental nature or quality It is important for a brand to understand its essence so it knows the customers it is marketing towards

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

Bullseyes with 3 rings -augmented -actual -core Augmented (builds on the actual and core value of the product, and offers consumers even more benefits) -delivery and credit -after sale service -warranty -product support (apple support, payment plans, product warranties) actual (the combination of the physical product and the core benefits consumers stand to gain from purchasing it, on other words, it is the tangible aspect of the product.) -brand name -quality level -features -packaging -design (apples brand name, lightweight, high performance, fashionable) core (what the consumer is actually offered from the product) -the consumer need that is being satisfied by the product (a phone to connect people, a device for self expression, productivity)

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

Business Buyer markets involve larger purchases and more dollars than B2C markets Far fewer, but larger buyers in the B2B market Many sets of business purchases are made for only one set of consumer purchases (Good Year Tire example) Business markets have an inelastic and more fluctuating demand, especially in the short run B2B buying process involves more decision participants and a more professional purchasing effort, as they face more complex buying decisions than do consumers B2B demand is a derived demand--it is ultimately derived from the demand for consumer goods In the business buying process, the buyer and seller are often more dependant on each other, which is why B2B marketers must work with buyers throughout all stages of the buying process (including post-purchase operations)

How does B2B Sales handle segmentation?

Business buyers can be segmented geographically, demographically, or by benefits sought, user status, user rate, and loyalty rate. Additionally use operating characteristics, purchasing approaches, situational factors and personal characteristics. Usually have separate systems for dealing with larger or multiple location buyers- help them develop.integrate products into their company

What is a buying center? How do businesses use them and why is it important for marketing to understand the dynamics of the process? Who are the participants?

Buying Center: decision making unit of a buying organization that consists of all people and units involved in the business purchase buying decision process Participants include users, influencers, buyers, deciders and gatekeepers (pg 168) IT is important for marketers to understand the B2B buying process in depth and also know the client very well in order to provide a complete solution through solutions selling

How does a company nurture and develop a community of "Early adopters" for their product?

By focusing on the most basic features of a product and not rushing to make grand changes, as well as serving core customers to create loyal returning customers.

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

Changes in technology have helped "micromarketing" and "local marketing" become more common. Thanks to the explosion in smartphones and tablets that integrate geolocation technology allowing companies to track consumers' whereabouts closely and engage them in localizes deals and information fast. (SoLoMo marketing- social+local}+mobile) Individual marketing is possible with these new technologies.- Mass customization of goods and marketing messages. (Hyper targeting can be good and can engage the customers more for example Nike fans who train with FuelBands and Nike+ Running App) Hyper targeting can overstep by collecting data inappropriately and deceptive messaging.

Johnson and Johnson Co. are often praised for their handling of the Tylenol in 1982. What lessons can be learned from what they did?

Chicago Tylenol Murders in 1982--People tampering with/poisoning tylenol capsules the company took an active role with the media in issuing mass warning communications and immediately called for a massive recall of the more than 31 million bottles of Tylenol in circulation McNeill and Johnson & Johnson offered replacement capsules to those who turned in pills already purchased and a reward for anyone with information leading to the apprehension of the individual or people involved in these random murders Johnson & Johnson developed new product protection methods and ironclad pledges to do better in protecting their consumers in the future. Working with FDA officials, they introduced a new tamper-proof packaging, which included foil seals and other features that made it obvious to a consumer if foul play had transpired. They also introduced a new version of their pills — called the "caplet" — a tablet coated with slick, easy-to-swallow gelatin but far harder to tamper with than the older capsules which could be easily opened J&J took full responsibility for their actions, did a total recall of all its tylenol bottles, worked to ensure whoever had committed this crime was caught, and put in numerous measures to ensure this would never happen again--this allowed their sales to increase back to normal within 2 years

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

Companies are responding to consumer demands by producing more environmentally responsible products... better pollution controls, biodegradable packaging, recycling Companies learning that what's good for the planet and customer well being can be good business More efficient operations and less wasteful products are good for environment and save money Ex: Patagonia donates 1% of revenues to environmental causes Before, it used to be hard on costs but now it has become more cost-efficient

"disintermediation" is the constant concern of players in the marketing channel? When does it occur and give some examples of how companies fight it.

Companies must be innovative to avoid people going straight to final buyers "disintermediation: cutting middle men in a supply chain do not suck at your job and work with trustworthy partners and you will be safe

What is a "customer value delivery network" and how do marketing channels play a key role in satisfying consumer needs?

Companies, suppliers, distributors, and customers who partner with each other to improve the performance of delivering customer value Marketing channel helps make product or service available

Why is "competition-based pricing" method often preferred by the sales function? What are the pros and cons?

Competition based pricing: setting prices based on competitor's strategies, prices, costs, and market offerings. Consumers will base their judgments of a product's value on the prices that competitors charge for similar products

What is a "corporate" chain, franchise chain and a "voluntary" chain in retail?

Corporate chain-two or more outlets that have common ownership and control, centralized buying and merchandising options, and similar lines of merchandise are considered corporate chain stores. They appear in all types of retailing but strongest in department, discount, good, drugstores, and restaurants (can buy in large quantities at lower prices and gain promotional economies) Franchise chain- franchise arrangements are characterized by a contractual relationships between a franchiser (a manufacturer, wholesaler, or service organization) and franchisees (independent entrepreneurs who purchase the right to own and operate any number of units in the franchise systems). (McDonald's, Subway) Voluntary chain- sponsored group of independent retailers that engaged in group buying and common merchandising. These are associations of independent retailers, unlike corporate chains, Wholesaler-sponsored voluntary chains of retailers who engage in bulk buying and collective merchandising are prevalent in many countries. One example is Try Value hardware stores.

Michael Porter described three basic forms of competing - Cost, Differentiation and Niche? What are each strategy and what are the advantages and disadvantages of each?

Cost - no frills The most cost efficient way is not always the most quality Differentiation - uniquely desirable products and services I don't really see a downside to differentiation Niche - offering specialized service in a focused market Sometimes a market that is really small has trouble surviving because it doesn't appeal to a large enough group

How should Marketing Departments and Public Relations handle "crisis" situations?

Crisis Situation: when an event occurs that has a significant effect on the company's reputation or brand essence; bad word can spread quickly because of the increased use of social media Marketing departments should have a crisis management plan in place to implement in case of a crisis To ensure a crisis does not arise, a company should monitor their brand closely using every avenue of digital and social media A plan should be in place so the Marketing and PR departments can issue a quick response (speed is key) They should respond to everyone affected directly by the crisis first and then move on to the general public They should be genuine and honest their statements

Outline the factors that Influence Consumer Behavior and give examples.

Cultural, the set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions. Ex Culture, Social class, Subculture Subculture: a group of people with shared value systems based on common life experiences and situations (nationalities, religions) Social, factors that are brought from who a person is surrounded by. Ex: Groups and social network, family, roles and status Personal, factors that are created from the actual physical needs of a person. Ex: Age and lifecycle stage, occupation, lifestyle, personality and self-concept, economic situation Physiological, factors that are created from the consumer's state of mind. Ex: Motivations, perceptions, learning, beliefs, and attitudes

Harley Davidson Motorcycles are an "Iconic" Brand. What are the characteristics of their consumer, their behavior and the marketplace? How does Harley "communicate" to target audience?

Currently 2/3 of riders are older caucasian males, but the company is trying to expand to be known and used by anyone who wants a quality motorcycle Their current users are known for their fierce loyalty to the brand The brand is known for promoting the traits of Freedom, independence, power, and authenticity The brand holds events like anniversary celebrations to celebrate returning users and captivate new ones

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

Customer Lifetime Value: the value of the entire stream of purchases a customer makes over a lifetime of patronage Customer Equity: the total combined customer lifetime values of all of the company's customers Value of company comes from current and future customers Companies not only want profitable customers but they want to retain them for life See chart on page 22 of Strangers, Barnacles, Butterflies and True Friends

Bill Rossiter in his talk gave several examples of how good "branding" is vital for the success of your product or service? Give an example

Every action a person makes they are judged from and everyone who views or knows about it changes their perspective accordingly. Every interaction is an interview

"Social Media has gotten nasty" Give an example, is it good or bad? Why? Should there be restrictions?

Ex. Video of FedEx delivery guy throwing customer's package over their fence instead of ringing the doorbell and resulting in a severely damaged computer monitor goes viral. This could be considered a good use of social media because it can highlight unacceptable business practices but social media being used in this way seems to largely defame business' reputations and can cause relatively small negative events to spiral out of control.

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

Example: Dunkin Donuts vs Starbucks Starbucks targets more upscale professionals with more high-brow positioning. Dunkin Donuts targets the "average Joe" with a decidedly more lowbrow, "everyman" kind of positioning. Each succeeded by creating the right value proposition for its customers.

Describe the difference between an exclusive, selective or intensive distributor

Exclusive--few people have the right to distribute products, very few retailers get the right to sell your product (high standards) Selective--choosing a few people who will not receive your product, but most firms may retail your product. (some standards) fewer distributors than the number of intermediaries Intensive--supplying product in as many outlets as you can Intensive: stocking with anyone who will take your product. (no standards)

What are the 8 element in a marketing plan?

Executive summary Business goals Target audience groups Online marketing - current standing Online marketing objectives Tactics Related posts Comments COULD ALSO BE Executive summary Current marketing situation Threats and opportunities analysis Objectives and issues Marketing strategy Action programs Budgets controls

Why is a company constantly re-evaluating their channel strategy? Economics, Control and Adaptability all play a role.

External factors are always changing (ex: economy; consumer preferences)

The General Electric model is leading edge in working with their B2B clients. What kind of marketing programs do they have and how is it helping them compete?

GE uses digital and social media marketing programs Way to bind the two companies together, share inside information and thinking. Get everyone to buy into the same culture, essence Creates a way to share problems and concerns, and thus customer focus in maintained. Promotes Efficient communication between parties, Win- Win environment. Know latest thinking and directions

Four examples of Segmentation are Geographic, Demographic, Psychographic and Behavioral. Describe the different types and give examples of each.

Geographic segmentation- dividing a market into different geographical units, such as nations, states, regions, counties, cities, or even neighborhoods Ex:Target's CityTarget vs Supertargets Demographic segmentation- dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation Ex: Dove's Men+Care Psychographic segmentation-dividing a market into different segments based on lifestyle or personality characteristics Ex:Panera-fresh food with no preservatives Behavioral segmentation-dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product Ex: Tacobell's A.M cruchwrap (occasions)

Many products are considered "Habitual- Buys". Compare that to a "Variety-seeking buying behavior" environment. What are the characteristics of each?

Habitual buying behavior occurs under conditions of low involvement and little significant brand difference. In situations characterized by low involvement but significant perceived brand differences, consumers engage in variety-seeking buying behavior.

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

Harley Davidson is having attracting new customers after their current customers age and change. To combat this they have developed Street Models for people to use in the city in order to widen their market demographic. (Exampand to women, African Americans, and Hispanics) They have also created events where these customers go and socialize, creating more unision and attracting other customers too.

How does the IBM Sales Model for Business to Business relationship selling work? What are the Pros and cons of this business model? What is "Solutions Selling"?

IBM's B2B emphasis is less on selling to customers and more on partnering with them to help solve their complex information and analytics problems They deliver insights and solutions to customer's data and information technology problems Pros: IBM's position involves "Boots on the Ground"--developing close day in, day out relationships with their customers Pros: They are knowledgeable and spend an extensive amount of time getting to know clients and their decision makers and understanding their clients problems and thinking about how IBM can solve their problems (see vodafone example--pg. 163) Pros: Starts with a customer focused mission and translates to IBM individuals working closely to clients to find and provide complete solutions Cons: Honestly can't think of many...maybe it's too time consuming? Solutions Selling: Buying a packaged solution to a problem from a single seller, thus avoiding the separate decisions involved in a complex buying situation

BCG Consulting uses a "portfolio analysis" methodology for their customers showing "growth share matrix" How does it work and what can you communicate with it?

It is a framework created by BCG Consulting that evaluates the strategic position of the business brand portfolio and its potential. Classified into 4 categories based on industry attractiveness and competitive position **look at picture***

What is a "value-chain" analysis? Why is it important to always perform one for a company?

It is a process where a firm identifies its primary and support activities that add value to its final product and then analyze these activities to reduce costs or increase differentiation.

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

It is important because it analyzes the competitive rivalry, bargaining power of suppliers, bargaining power of customers, threat of new entrants, and the threat of substitute products or services of a company

Customer "value-based pricing" is determined in what whom and how?

It is setting price based on buyers perceptions of value rather than on the sellers cost. The customer decides what price is right uses buyers' perceptions of value as the key to pricing.

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

It is the set of actions or tactics that a company uses to promote its brand or product in the market 4ps: price, product, promotion, place

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

Lexus covenant is a promise Lexus makes to its customers to provide the most painless car buying and maintaining process possible. Including home pick ups for servicing and services at dealerships to ease the pains of car buying. This makes people value Lexus more, promotes loyalty, and makes consumers associate the brand with a positive experience.

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

Like consumer buying decisions, business buying decisions are affected by a incredibly complex combination of environmental, interpersonal and individual factors, but with an extra layer of organizational factors thrown into the mix Environmental factors: the economy, supply conditions, technology, regulation, competition and culture/customs Organizational Factors: Objectives, strategies, structure, systems, and procedures Interpersonal factors: influence, expertise, authority, dynamics Individual Factors: Age, job position, motives, personality, preferences, buying style

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

Marketing analytics is the analysis tools, technologies, and processes by which marketers dig out meaningful patterns in big data to gain customer insights. It is important because companies use this to mine through the big data that they collect from various sources and use it to gain insightful information about their customers and their habits.

How does marketing myopia affect a seller's ability to deliver value to their customers?

Marketing myopia: the mistake of sellers paying more attention to the specific products they they offer rather than to thee benefits and experience of the products. People lose sight of underlying customer needs, product is only a tool to solve a customer problem. -Hurts seller's ability to deliver value, they should focus on creating brand experiences for their customers.

McDonald's does Segment and Target Marketing by dividing their customers into what kind of groupings and segments. Would you do it their way?

McDonald's does Segment and Target Marketing by dividing their customers based in racial and ethnic groups. For example with the South West Salad they observed that African Americans were not viewing the product as a meal. As a result they developed marketing strategies to specifically address the issue. Would you or would you not do it their way?- potential for racism, benefit might be serving customers better

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

Mountain Dew has chosen to market their ads and promotions to young, largely millennial-male target market. They have done so through their "Do the Dew" campaign which emphasizes living in the moment and just going for it. The brand sponsors extreme sport events such as The Dew Tour. In addition, they have the Green Label/DEWmocracy programs that allow consumers to help make decisions for the brand and share interact with fellow fans.

What are the five steps in the Buyer Decision process?

Need Recognition Information search Evaluation of alternatives Purchase decision Post purchase behavior

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

Netflix uses the mined data in order to better recommend shows from their vast library. This allows the consumer to not have to scroll through the thousands of shows and movies that Netflix and can just watch the recommended shows. This helps save the consumer a lot of time and gives them shows that they would like.

How does New Balance shoes track their product requirements for their stores and what advantages does it provide?

New Balance tracks what kind of shoes are selling the best. New Balance then focuses their efforts on producing more of these and ensuring that their stores always have these products in stock. This tracking allows New Balance to know what kind of shoes are popular. They can focus on making and selling those shoes and don't waste time and resources on less popular shoe-types.

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

Niche/Concentrated Marketing-a market-coverage strategy in which a firm goes after a large share of one or a few segments or niches Advantages: -firm achieves strong market position -greater knowledge of consumer needs -can market more effectively and efficiently -helps small companies focus their limited resources Disadvantages: -will suffer greatly if one segment turns away from product/service -larger competitors could enter with more resources

Nordstrom's has a unique way of competing. Describe their style. What are the strengths and weaknesses of Nordstrom's strategy?

Nordstrom is very customer centered around customer service and revolves around luxury and quality products weakness: it is very premium

What is Omni-channel retailing? Why is it so important in today's environment for retailer to survive?

Omni-channel retailing: integrating all available shopping channels and devices into a seamless customer shopping experience. It is so important because it allows consumers to buy wherever and whenever it is most convenient for them to. In turn, their experience is bettered and their loyalty to the retailer increases. It is also important because physical brick and mortar stores are often going out of business so they need a new channel to sell products. It is creating a seamless cross-channel buying experience that integrates in-store online and mobile shopping Today's buyers shift across online and offline Tactics to deal with this type of buyer such as price matching, personal advice and service, immediacy, convenient locations, easy returns Order online and pickup in store, and then buy additional things in person

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

Online purchasing (e-procurement) has grown rapidly, as it shaves transaction costs and results in more efficient purchasing for both buyers and suppliers E-procurement also reduces the time between order and delivery and frees people from a lot of paperwork B2B marketers are now using a wide range of digital and social marketing, such as on websites, blogs, mobile apps, e-newsletters, and proprietary online networks Digital and social media has become the new space for engaging business customers, as it can create greater customer engagement and interaction

Proctor and Gamble are Strong Advocates of treating their customers like partners. What are they doing to demonstrate that and how do they make sure their clients are successful?

P&G created CBD (career business development) - function is to integrate the customers and partners into the P&G network. Make sure the suppliers and product channels are successful In CBD you will develop your strategic selling skills by building diverse, collaborative relationships with P&G's multi-functional team members Creates a Win-win situation This model is a costly one, but once integrated it can save money. Reduced mistakes and better service, more efficiency Divestment is a management statement. If you can't add value, spin off. Plus, management focus and investment in growth and adding value to the Brand.

Patagonia uses the slogan "conscious consumption" and "don't buy this jacket" what was their strategy?

Patagonia's purpose was to raise awareness of and participate in the 5R's: reduce, repair, reuse, recycle, reimagine They were promoting the message that everything we but has an environmental cost and that we need to leave our world inhabitable for our kids

What different groups or ideas are present in a "marketing information systems"?

People and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights. -assessing information needs -internal databases -marketing intelligence -marketing research -analyzing and using information

How has the "great recession" affected marketing and what changes have come about?

People are focusing more on getting a good value from their purchase. The example in the book was that Target shifted the focus on their slogan from expect more, to the pay less side

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

People are scared of big data because they do not like companies taking and selling their personal information to other companies. People are afraid of what can go wrong and the possibility of their information being taken advantage of. Companies can take advantage of their personal information in order to target specific people. Companies can be hacked and people's personal information can be stolen in order to commit fraud by using their personal information. However, the positives of companies having this data is being able to provide a better more personal service to tailor to the specific customer, allowing the customer to have a better experience.

ESPN is part of the Disney Portfolio, How does it affect their business and their portfolio?

People associate disney with a family atmosphere, so integrating ESPN into the company makes ESPN meet certain standards. Unfortunately, that means the company and Disney are judged more harshly during scandals like John Skipper resigning due to a cocaine addiction

Apple Pay is a potential disinter-mediator? How are they offering change?

People do not need their wallets; the wallet is on the phone They are making it possible to pay for almost everything with an Apple product

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

People vary in willingness to try new goods or experiences -stages of the adoption process: Awareness: When a consumer first learns about a product Interest: When a consumer seeks information about this new product Evaluation: When a consumer considers whether or not to try the product Trial: When a consumer tests the product Adoption: When a consumer decides to make full and regular use of a product Types of adopters Innovators first 2.5% Early adopters next 13.5% Early mainstream next 34% Late mainstream next 34% Lagging adopters final 16%

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

Perception is most important for attracting buyers initially, but to get returning consumers, the quality of the good must be high Complex buying behavior: consumer buying behavior in situations characterized by high consumer involvement in a purchase and significant perceived differences between brands The complex buying process is usually for larger more important purchases and involves the buyer becoming much more involved, careful, and well educated in their decision.

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

Post purchase behavior: when buyers take action after a purchase due to their level of satisfaction for a product Post-purchase dissonance: after purchase discomfort caused by traits not noticed until a good is being used Cognitive dissonance: buyers discomfort caused by post-purchase conflict, or regretting not buying another good instead Dissonance occurs because of the consumer's expectations, and perceived performance

How is your brand affected-if you are using a "prestige product" strategy? If you are using a "comparison" pricing strategy? If you use a "technical or innovation selling" strategy?

Prestige--high quality producer Comparison-compare low price to those of competitors Technical or innovation-most innovative producer

Describe the steps in the typical B2B buying process. What is an RFP, QA process and VPA (performance review)?

Problem Recognition: can result from internal or external stimuli. Company recognizes a problem or need that can be met by acquiring a product or service Next, the buyer prepares a general need description, which outlines the characteristics and quantity of the needed item Product Specification: Buying organization decides on and specifies the best technical product characteristics for the needed item Supplier Search: stage of the business buying process in which the buyer tries to find the best vendors Proposal Situation: The stage of the business buying process in which the buyer invites qualified suppliers to submit proposals. The buyer issues a Request for Proposal, or RFP Supplier Selection: the stage of the business buying process in which buyer reviews proposals and selects a supplier or suppliers Order-Routine Specification: The stage of the business buying process in which the buyer writes the final order with the chosen supplier(s), listing technical specifications, quantity needed , expected time of delivery, return policies and warranties Performance Review: the stage of the business buying process in which the buyer assesses the performance of the supplier and decides to continue, modify, or drop the arrangement QA=quality assurance i think

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

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

What are the 4 P's of marketing?

Product, Price, Place, Promotion

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

Product: anything that can be offered to a market for attention, acquisition, use , or consumption that might satisfy a want or need. Service: an activity, benefit, or satisfaction offered for sale that us essentially intangible and does not result in the ownership of anything It is hard to define because a product could be anything sold to another person to solve or help deal with a problem, they have, which is a broad definition. It is not so simple to answer the question because a product can be loosely defined to also include events, services, people, places, or organizations. It can be either very broad, or very specific

what is the difference between the five concepts of "production, product, selling, marketing, and societal marketing" concept?

Production concept: the idea that consumers will favor products that are available and highly affordable, therefore, the organization should focus on improving production and distribution efficiency. Product concept: the idea that consumers will favor products that offer the most quality, performance and features; therefore, the organization should devote its energy to making continuous product improvements. Selling concept: the idea that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort Marketing concept: a philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. Societal Marketing Concept: a company's marketing decisions should consider consumer's wants , the company's requirements, consumer's long term interests, and society's long term interests

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

Pros: most popular product in the market Cons: people too heavily associate brand name as product. Like people calling all adhesive bandages BAND AIDS -Given enough time any seller can claim to be these brands like what happened to Jell-O, kerosene, and yo-yo's.

How does "RFID" technology make an integrated logistics management supply system simpler and inventory management more accurate?

RFID is a technology where small transmitter chips are embedded or placed on products or packaging. It allows companies to know exactly where a product is located physically within the supply chain.

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

Remember they accidentally sent pregnancy ads to a 15 year old and her dad was pissed even though she actually was pregnant Because of her shopping patterns, Target started suggesting baby/pregnancy products.

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

Rich have grown richer, middle class has shrunk, poor have gotten poorer Has created a tiered market, companies like Nordstrom aggressively target the affluent, Five Below targets the lower tier

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

Ritz conducted trials with consumers and asked them a multitude of questions about their preconceived notions and thoughts on the products they were creating The producers realized that people consider crackers more of a winter snack, and chips more of a summertime snack. Therefore the creation of this new product would not necessarily take away large sales from their crackers. The producers also realized that they should place their Ritz chips next to other Ritz products so that the higher price of Ritz chips would not be as noticeable than if they were placed next to other chips

Sara Lee used Market Research to help them develop a new kind of bread to replace their leading white bread product. What did they learn from marketing research and how change their product?

Sara lee learned the important qualities and characteristics that people like in their white bread and the packaging that it comes in. Therefore, Sara Lee used this information to build the perfect ratio between ingredients in order to create their leading white bread product. They learned that consumers like soft and smooth white bread.

Segmented pricing is used to pass along lower prices by segment, geography, demographic, age group or sex. Is this fair and why do they do it?

Segmented pricing: selling a product or service at two or more prices, where the differences are not based off of production costs

How does the selling models of Volvo and Tesla threaten the existing car industry marketing channel strategy? What is the advantage and the disadvantage?

Selling cars directly online, boost sales but alienate independent sellers

What is a "service retailer" and what is their role or mission?

Service retailer refers to a retailer whose product line is actually a service, including hotels and motels, banks, airlines, colleges, hospitals, movie theaters, etc. Their mission is to provide a specialized service for the customer They grow faster than product retailers

what is a marketing channel? Give some examples of types of channels used by markets

Set of interdependent organizations that help make a product or service available for use (ex: Apple sold music for Ipods via iTunes)

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

Social marketing is the use of social ideas; consists of using traditional business marketing concepts and tools to encourage behaviors that will create individual and societal well being, improves brand image and favorability to consumers

What are the different considerations when one changes, increase or decrease prices from the customer? From the competition? What is the purpose of the "low-price fighter brand"? How are "store brands" used to serve this function?

Store Brands are used as cheaper alternative to the higher quality name brands, attract consumers for low prices -Customer POV- higher price makes the product seem of higher quality -Competition POV-lower price may signal that the company is trying to boost sales or take a larger part of the market -Low-price fighter brand- add a lower-priced item to compete with other firms -store brands--give the fighter brand the low price it needs to be that way

The three types of buying situations are straight rebuy, modified rebuy, and new task buy. What difference in approach, costs, and structure does each have?

Straight Rebuy: A business buying situation in which the buyer routinely re-orders something without modifications To keep businesses "in" suppliers try to maintain customer engagement & product/service quality "Out" suppliers try to find new ways to add value or exploit dissatisfaction so the business will consider them Buyer makes fewest purchasing decisions in a straight rebuy Modified Rebuy: A business buying situation in which the buyer wants to modify product specifications, prices, terms or suppliers "In" suppliers will feel pressured and have to put their best foot forward on an account "Out" suppliers may see a modified rebuy situation as a opportunity to make a better offer and gain new business New Task Buy: a business buying situation in which a buyer purchases a product or service for the first time Marketer tries to reach as many key buying influences as possible while also providing help and information Buyer makes most decisions in a new task buy

Netflix is seen as a disputer because they have not been afraid of "disintermediating" many companies business models and roles in the marketing chain. They believe in "distermediating" themselves. What does that mean?

Strive to be so innovative that they replace their current business model Netflix revolutionized the streaming and movie service by offering online streams. Therefore, Netflix only needs computers to interact with their customers. Other competitors are forced to follow Netflix to be considered and many channels are lost to the entire industry.

What is a "category killer" in retailing?

Superstores, giant specialty store that carry a very deep assortment of a particular line (Best Buy) A retail chain store that is dominant and its product category Electronics, home-improvement, books, baby gear, toys

What is a "supplier development" program like cargill and mcdonalds practices and why is it an important tool to improve your business process?

Supplier Development Program: the process of working with certain suppliers on a one-to-one basis to improve their performance and expand capabilities for the benefit of the buying organization If your suppliers are more efficient and capable, it benefits the buying organization as well; maybe the buying organization now only needs one supplier; possibility of cutting costs and/or delivery time

Understanding technological changes is vital for maketers. Why and give an example

Technological environment is the most dramatic force changing our world the tech environment changes very rapidly, new tech replaces old tech Companies that do not keep up will soon find their products outdated, will miss new products and opportunities Ex: many companies are now using RFID (radio freq ident.) to track products and consumers at various points in distribution channel, such as Disney's magicband

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

That role is important because they study the motives behind why a person buys something. When a person's motives are better understood, marketers can then make their advertisements more appealing

How does an advertiser create "behavioral targeting"?

The advertisers mine the data about what sites you visit or products purchase and use that to target what products and services you might buy. Therefore, the advertiser targets your consumer behavior in order to predict your next purchases.

Why is it important to study the Micro and Macro Environment? Use FITBIT as an example

The microenvironment are the people close to the company that affect its ability to serve its customers (suppliers, competitors, etc) Macroenvironment: larger societal factors that affect the microenvironment (demographic, economic, natural, technological, political, cultural) Important to study because marketers can adapt their strategies to meet new marketplace challenges and opportunities Fitbit heavily involved in both environments Used micro when dealing with tough competition from the likes of Apple and other smart watch producers...allows for innovation and differentiation Macro was involved when marketing their product to corporate America and taking advantage of a health and fitness craze as well as high social media popularity

Nike's "Risk Everything" campaign was very successful. What was their strategy and formula for success?

The risk everything campaign was created in order to make the consumer feel as though their everyday athletics are just as important as those of professional athletes and can be even equated to life and death circumstances

Why has the warehouse retailer model been so success, like COSTCO and SAM's Club?

The warehouse retailer model has been so successful because they only minimally markup offerings, they pass along lower costs to consumers, and they proved "differentiated and high quality" products. They are also convenient and provide a variety of materials in one centralized location. Limited selection of nationally branded and private-label products in a wide range of categories at very low prices. Operate out of big, drafty bare bones to keep prices low.

International Marketing Manners are important to practice and to understand. Why?

There are many things that marketers can and should learn from International business practices. Every Country has its own culture, and that they are all different. Every country has differences in thought, values and customs. All major positions in a company or organization, but marketers especially need to understand the needs, customs and cultures of international firms they decide to do business with. As the book says, marketers "must dig deeply to make certain they adapt to these differences" (171). Marketers must be careful with how they market their products in overseas economies and cultures in order to avoid offending the people of these cultures or making an embarrassing mistake. Understanding the culture of the market you are in is crucial to marketers, and they should make it a priority to understand the cultures they are marketing in; not only to avoid making silly and offensive mistakes, but also to create more effective marketing plans and campaigns.

How is "Social Class" measured in the United States? Is it an important distinction?

There are seven american social classes: upper upper class, lower upper class, upper middle class, middle class, working class, upper lower class, lower class. Lines between classes are much less rigid in the US. Overall distinction is important, but similar classes tend to have similar buying habits

What is third-party logistics (3PL) and why have these companies mushroomed over the past 20 years?

Third-Party logistics (3PL) providers are independent logistics providers that perform any or all the functions required to get a client's product to market. They've mushroomed because many companies hate doing logistics "grunt work" (bundling, loading, unloading, sorting, storing etc)

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

This allows companies to acquire a greater share of the customer, or the portion of the customer's purchasing that a company gets in its product categories firms can offer greater variety to current customers can create programs to cross-sell or up-sell more products

MOM as Brand Ambassador programs have been very successful. What is the good news and bad news for a company to use this approach in their marketing?

This allows them to get a better sense of the needs of their consumers, and give back to them. It also makes the brand appear more caring for their customers However this also shows a brands disinterest in dads, and can be seen by some as reinforcement for a negative stereotype

What is vertical integration of your channels, "corporate vms"? Describe the issues of direct versus indirect channel management.

Vertical integration--producers & retailers acting as a unified system Corporate VMS--one owner in charge of successive production & distribution, a vertical marketing system that combines successive stages of production and distribution under single ownership-a channel leadership is established through common ownership. aKA consolidation of roles to a single company or firm so as to eliminate middle men Direct channel--sells directly to consumers Indirect channel--1+ levels of intermediaries to help bring its products to final buyers

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

Very important as they help decide who the company is actually going to market their product to. Once the market is broken down into different segments, the company needs to select what group fits into the mission and goals of the company.

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

Walmart- everyday low prices, quality at low price Target- started as a nicer walmart- but changed to expect more pay less to emphasize cheap prices as it turned away potential customers who thought it was expensive JCPenny- higher end discount shoppers- declined when they stopped the promotions BMW- more for more, getting luxurious cars for a higher price. Segmenting establishes a brand and image with consumers and customers. The advantages is that is creates a loyal base of continuous customers. Marketing and brand image is centered around a specific group. Disadvantage is that it can block out potential customers who are not included in the brand image.

Is "web-casing" (web rooming) or "show-rooming" a better strategy to sell products?

Web-casing (web-rooming)- the practice of first checking out merchandise online, then buying it in traditional stores.The key for store retailers is to convert these shoppers into buyers when they visit the store. Showrooming: consumers come into a store to check out merchandise and prices and then buy online from a rival. Some retailers are embracing it as an opportunity to highlight the advantages of shopping in person.

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

Whether an item is a want or a need affects its demand. Need: a state of felt deprivation Want: needs that are shaped by one's society and individual personality Demand: wants that are backed by buying power

What is a wholesaler and what vital role do they play in the economy?

Wholesalers are firms who sell goods and services to those who are buying them for resale or business use. (operate behind the scenes) They play a vital role in the economy because they supply the various items to different companies throughout the world that we use every day. They buy from producers and sell mostly to retailers, industrial consumes and other wholesalers They add value because they perform channel functions: (selling and promoting, buying and assortment building, bulk breaking, warehousing, transportation, financing, risk bearing, market information, management service and advice)

How has WOM (word of mouth) influence risen over the past several years? What is an "Opinion Leader"?

Word of Mouth influence has become significantly more important because of the creation of online reviews. Word of mouth influence: The impact of personal words and recommendations of trusted friends, associates, and other consumers on buying behavior Opinion leader: A person within a reference group who, because of special skill, knowledge, personality, or other characteristics, exerts social influence on others

GoldieBlox faces many challenges with consumer perception of what toys should be sold to whom. Will they have any effect in STEM education for females if they are successful?

Yes, because studies have shown the toys given to children in developmental stages of life influence how they act as an adult.

What is the difference between a competitor-centered and customer-centered marketing approach?

competitor-centered strategy: a company whose moves are mainly focused on competitors actions and reactions, the company develops a fighter orientation and watches for its weaknesses and those of the competitor, but the weaknesses of this strategy are that the company becomes too reactive. Rather than carrying out their own moves, they carry those of the competitor and can end up watching the industry moves rather than finding new and innovative moves customer-centered marketing approach: focuses more on customer developments, makes it easier to identify new opportunities and set long-run strategies that make sense. By watching the consumer trends evolve, it can help decide what emerging needs are the most important to serve. Then, it can concentrate its resources on delivering superior value to target customers market-centered companies: watches both their consumer and competitor in balance

What is the difference between types of consumer products-- convenience, shopping, specialty, or unsought-- and their pricing and promotion?

consumer product: a product bought by final consumers for personal consumption convenience product: a consumer product that customers usually buy frequently, immediately, and with minimal comparison and buying effort (low cost, buying habits, ex: toothpaste) shopping product: less frequent purchase, often involves much planning and comparison. Often have higher prices. a consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality price, and style (higher cost, moderate/high consumer involvement and research--ex: major appliances: TV's, clothing) specialty product: strong brand preference and loyalty, special purchase effort, little comparison of brands, low price sensitivity. High price, More carefully targeted promotion. A consumer product with unique characteristics or brand identification for which a significant group of buyers if willing to make a special purchase effort -very high cost, requires much buyer involvement (luxury goods, Rolex's) Unsought product: Little product awareness or knowledge. Price varies, aggressive advertising and personal selling. A consumer product that the consumer either does not know about, or knows about but does not normally consider buying (varying in price: life insurance) Industrial product: a product bought by individuals and organizations for further processing or for use in conducting a business

Direct-response marketing is still very popular forms of advertising and selling. How is it conducted and why is it effective?

direct-marketing via television including direct response from television infomercials and interactive television (TV) advertising DRTV describe the product heavily in an infomercial Interactive markeing is a newer way to market

How does the "gray" market and "black" market activities hurt the Global Brand managers' international product rollout?

gray market- right product ---> sold to unauthorized dealers...sold for more.black market- makes a copy of a product then sells it. same design sold for substantially less. "copycat knockoff"

Converse lets the customer be involved in creating the ad campaign. What do they do? (p.439)

o "Made By You" campaign that celebrates individuality and self-expression and features unique customized converse all stars along with backstories

Volvo Trucks IMC required great synergy in working with the many different ways to advertise. What did they do? How did they use "Live Tests"? (p.423)

o 6 different YouTube videos that allowed them to show off the features of the trucks without explicitly stating them o Steering precision and ballerina video

7-Eleven has successfully adopted a Global Strategy. What have they done that made them successful?

o 7-Eleven has retained their small store format, convenience positioning, and global brand identity o Retailer initiative philosophy to adapt its operations in each global market to match differing local definitions of convenience o Locally made food, meet customer needs well

What is the future of the shopping center/mall given the changing nature of retailing?

o A newer form of shopping center is the power center. o Power centers are huge unenclosed shopping centers consisting of a long strip of retail store, including large, free standing anchors such as Walmart, Home Depot, Costco. Each store has its own entrance with parking directly in front for shoppers who only want to go to one store. o New lifestyle centers which consist of mixed-use developments with ground-floor establishments and apartments or condominiums above, combining shopping convenience with the community feel of a neighborhood center

1. Name the five types of activities in the "Promotion Mix" and what roles do they play as they execute a Marketing program? (p.401)

o Advertising: any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor (broadcast, print, online, mobile, outdoor) o Sales Promotion: short-term incentives to encourage the purchase or sale of a product or service (discounts, coupons) o Personal Selling: personal customer interactions with the purpose of engaging customers and building relationships (presentations, trade shows) o Public Relations PR: building good relations with public by obtaining favorable publicity, building up a good corporate image (press releases, sponsorships) o Direct and Digital Marketing: engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships (direct mail, email, social media)

Why is a "comparative" advertising tactic effective and what problems can it cause? How did Microsoft use it against Apple? (p.431)

o Attack advertising o Directly or indirectly compare to other brands o Create controversy, exclude other brands from consumers' choice set, shake things up. o Invite consumer responses which can result in an advertising war o Microsoft vs Apple § Microsoft products were used by regular everyday people and that Apple was too expensive and out-of-touch. Campaign/ad "I couldn't do that on my Mac" and "I'm a PC" "laptop Hunters"

IKEA has been successful with implementing their Global Strategy. They have created a nice balancing act. What have they done well that could be copied?

o Balance between global standardization and local adaptation o Cultural understanding, sell at lower costs due to high level of standardization o Familiar huge stores, logo and colors, but adapts assortments, operations and marketing to cater to unique needs o Study the market culture to meet needs and tastes

Why has Direct Marketing grown so fast over the past 7 years? Describe the new DM environment?

o Become more internet-based as consumers spend more time on devices.

KIND Bars marketing Strategy has a very sincere message about CSR. What is it and how is it used in their marketing campaigns.

o CSR = Corporate Social Responsibility o "Do the Kind thing", wanted to bring more kindness to the world by rewarding random acts of kindness o Pop your bubble o More to business than just profit

Why did Bass Pro Shops succeed where Cabela's failed? Was it a good idea to buy them?

o Cabela's failed because they fell victim to intense competition from online vendors, while Bass Pro Shops did not. o It was a good idea to buy them because it made one large successful company o Were able to acquire them at a cheap price, the synergies lined up

Why would a company advertise with "Doing Good" or being a Responsible Steward of the environment? What do they hope to gain? Examples are Dove's "For Real Beauty" or P&G's "Like a Girl" campaigns? (p.420)

o Consumers care more about social responsibility, big part of corporate missions o "Dove Campaign for Real Beauty" set out to change stereotypes with ads featuring candid and confident women with all body types o Always "Like a Girl" change the meaning of the statement to boost confidence showing little girls not having negative connotations of phrase

What has changed and is new in today's "Marketing Communication Mix" that requires companies to adopt new tactics and strategies? (p.401)

o Consumers: are better informed and communications empowered. Can use internet, social media to find information on their own. Can connect with others o Marketing strategies: are shifting away from mass marketing, are developing programs to engage customers and build customer relationships in more narrowly defined micromarkets o Digital technology: new information and communication tools o More targeted, digital, social, and engaging marketing communications model

The discipline of "Content Marketing" requires many creative people to build the new messaging communication method. They must succeed over "paid, owned, earned and shared communication channels." How do they do this? (p.404)

o Content Marketing: creating, inspiring, and sharing brand messages and conversations with and among consumers across a fluid mix of paid, owned, earned and shared channels o Rather than interrupt consumers and force feed mass messages o Reach smaller communities in more engaging ways o Online, mobile and social media that engage more targeted consumer communities in more personalized ways o Create conversations that lead to engagement, purchase, loyalty and advocacy

What is the definition of Content Marketing? How is the Tecate Gentleman Campaign and effective use of clear Content Marketing? (p. 404)

o Content marketing: creating, inspiring and sharing brand messages and conversations with and among consumers across a fluid mix of paid, owned, earned and shared channels o Tecate did TV ads and then continued on Facebook, offered the letter, made it interactive, made it a story line that continued and people wanted to know what happened next

What are the elements of a good advertising strategy? (p.433

o Creating advertising messages § Engage customers, communicate well o Selecting advertising media § Which media to use

What is the Alibaba business model and how is it different than Amazon?

o Digitization of commerce o Alibaba's designed from scratch grocery store § The shopping experience is powered by your phone. You can scan § Every store doubles as a distribution center o Auto vending machine that lets you browse cars on phone and then try them out

What is made easier with using Digital Marketing?

o Engaging directly with carefully targeted individual consumers and communities to obtain an immediate response and build lasting relationships o Tailor their offers and content to needs and interests o Build engagement, community and sales

Of the ten different "execution styles" of advertising, what do you think are the three best? (p.437)

o Execution style: the approach, style, tone, words, and format used for executing an advertising message o Slice of life: shows "typical" people using the product in a normal setting (IKEA features people in rooms with furniture) o Lifestyle: shows how a product fits in with a particular lifestyle (Athleta activewear shows woman in complex yoga pose) o Personality Symbol: character that represents the product. (Mr. Clean, Flo) o Testimonial evidence or endorsement: highly believable or likeable source endorsing the product. (Taylor Swift for Diet Coke)

Bass Pro Shops and Jungle Jim's are two Retail business models that represent "experiential retailing" shopping. Is this a trend and the way of the future for stores or is it virtual reality?

o Experiential retailing is useful to a company to attract people who wouldn't normally enter the store, but VR could be a new wave of experiential retailing that could put old model of massive museum like stores out of business

What are the four elements of sales force compensation?

o Fixed amount: usually a salary, stable income o Variable amount: commissions or bonuses based on sales performance, reward for greater effort and success o Expenses o Fringe benefits

L'Oreal uses the concept of "universalization" as the cornerstone for their Global Strategy. What is it and how have they been successful?

o Globalization that respects differences o Need to adapt to desires, needs and culture of each consumer o Studied the differences in climate, skin, hair types, beauty routines o Find a balance between standardizing the brand while also adapting to the local market

What is the good and bad news of the many rapid changes brought by Digital Marketing revolution? Give some examples.

o Good § Convenient, easy, private § Give buyers anywhere, anytime access to goods and information § Buyers can interact with sellers § Seller flexibility § Opportunities for real-time marketing o Bad § Spam, excessive access to personal information

What is "Green Retailing and why is it catching on among the public?

o Green retailing: adopting environmentally sustainable practices, promoting more environmentally responsible products, launching programs to help customers be more responsible, working with channel partners to reduce environmental impact. o Sustainable building design, construction and operations o Greening up product assortments from renewable sources, sustainable products, packaging, and distribution systems

GEICO pounds away with one, simple message. Why was this effective and how did they move up to second place with double-digit revenue growth? (p.426-427)

o Have used "15 minutes could save you 15% or more on car insurance" slogan for 20 years. o Has led to increased revenue growth because the ads are "unskippable" because they are short, unique, to the point and funny o Creative as compared to other insurance companies o Innovating on content and characters

What is Informative, Persuasive and Reminder advertising methods? (p.429)

o Informative: used heavily when introducing a new product category. Build primary demand. Suggest new uses, inform of quality, benefits, price changes. Describe available services and support, correct false impressions. o Persuasive: more important as competition increases. Objective is to build selective demand once established. Persuade to purchase now, create customer engagement, build brand community. o Reminder: important for mature products. Maintain relationships and keep consumers thinking about them, where to buy, off-season.

What is the difference between Inside and Outside sales person roles?

o Inside: conduct business from their offices via phone, online and social media or visits from prospective buyers. Provide support, learn about customers o Outside: travel to call on customers in the field, face-to-face collaboration and relationship building

How does the IMC of Lowe's solidify around the slogan, "Never Stop Improving" for their employees and customers and business? (p.406)

o Integrated Marketing Communications: carefully integrate and coordinate the company's main communications channels to deliver a clear, consistent and compelling message about the organization and its products. o Use social media to create personalized real-time engagement o 6 second vines to show how to fix home-improvement problems, YouTube videos for DIY fixes, similar presence about improving on all channels

Both Kiosk Marketing and Direct-response Television marketing require buyer involvement in the process and selection. Is this good or bad? How is this a good example of AIDA?

o Kiosk Marketing: ordering machines, physical stations where people can buy a product at airports, retail stores, resorts o DR TV: direct marketing via television including direct-response advertising (infomercials)and interactive advertising. o Engagement can get people excited but can also bother the user when you're trying to watch a show

Consumer privacy, Spam, pop-ups, junk mail, pop-under, and big data issues have all created concerns and perhaps a need for great public policy? Why?

o Major privacy concerns with digital marketing platforms such as hacking, taking advantage of uneducated buyers, fraud o Need to set age limits and other restrictions on how much information o Can take advantage, irritate consumers, access by unauthorized people

When selecting advertising media, companies are no longer happy with being told how many have viewed their commercial but what is the "consumer expressions". Why? (p.444)

o Measuring the communication effects whether they are getting the message across o Need to see people's perception

How does the product line under the brand Method benefit from the new media mix? (p.403)

o Method: eco-friendly household product employs a full but mostly digital promotional campaign themed "Clean Happy" § Center of the campaign was brand videos on YouTube and Facebook, online media ads, major social media presence on Twitter § Then incorporated carefully targeted regional TV in select markets o Were able to drastically cut costs o The marketing material is more specific and target, personalized.

What is your assessment of Mobile Marketing? When is it best and what fears does it create?

o Mobile marketing: marketing messages, promotions and other content delivered to on-the-go consumers through mobile devices o Grabs headlines, is targeted and personal, immediate and timely and cost-effective o Problem is marketers don't know how to monetize it without driving customers away o #AskSeaWorld caused people to complain about animal treatment

What is the Advantages of Direct Marketing methods? Name a few types of Direct Campaigns. (p.416)

o More targeted, interactive, immediate and personalized o Direct mail, catalogs, telephone marketing, online, mobile, social media o Well suited to highly targeted marketing efforts, creating customer engagements, and building a one-to-one customer relationship

What decisions do companies have to make in Global Product Development? Think of the OREO cookie Brand Manager in China.

o Need to think about the tastes, expectations and preferences in different countries o Adjustments to product, packaging and promotion o China § Lightly sweetened version, smaller packages, wafer alternative § Branding, Oreo affiliation for the product changes: Kraft is trusted § TV advertisements are seen as more credible and higher quality

Give some examples of "Non-personal" communications. What is their role in the Mix? (p.412)

o Non-personal communication channels: media that carry messages without personal contact or feedback, including major media, atmospheres and events o Print, broadcast display and online o Newspapers, TV, grand openings, shows, exhibits, public tours, billboards o Affects buyers directly

Marketers are often asked about the "return on advertising investment". What is the problem and why is this important to track? (p. 444 - 445)

o People who react and engage with an ad are more likely to actively pursue the product o Companies care what people are saying and how they are reacting o Return on Investment: net return on investment divided by the costs o Communication effects: ad message

There are three methods of determining advertising budgets - % of sales, competitive-parity and objective/ task method. How do they vary in approach? (P.413)

o Percentage of Sales: setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price § Simple to use, helps management think about relationships between promotion spending, selling price, and profit per unit § Wrongly views sales as the cause of promotion rather than as the result o Competitive-Parity: setting the promotion budget to match competitors § Companies differ greatly, each has own needs and there is no evidence that budgets based on competitive parity prevent promotion wars o Objective/Task method: based on what it wants to accomplish with promotion § 1. defining specific promotion objectives § 2. determining the tasks needed to achieve these objectives § 3. estimating the costs of performing these tasks. § Sum of these costs is the budget. § Most logical but hardest to use

What is "personal selling"? What is the difference between relationship Sales and Transactional sales? (p. 471)

o Personal selling: o Relationship oriented sale: engage the customer over the long term in a mutually profitable relationship o Transaction oriented sale: aim is to make sales

What are three or four key decision points when developing global Marketing Program?

o Product § Straight product extension: marketing a product in a foreign market without making any changes § Product adaptation: adapting to meet local conditions/wants in foreign market § Product invention: creating new products/services for foreign markets o Promotion § Communication adaptation: a global communication strategy of fully adapting advertising messages to local markets o Price o Distribution channels § Whole channel view: designing international channels that take into account the entire global supply chain and marketing channel, forging an effective global value delivery network

Holiday Inn Express used Fallon Agency to help them develop the "I stayed at a Holiday Inn Last Night" campaign. what was their target marketing and approach that made it so effective? (video)

o Targeted business travelers with funny and clever ads. Depicted people who had stayed at Holiday inn performing incredible feats despite having no experience.

International Advertising can be very tricky in its implementation. What problems can happen and how could they be avoided? (p. 445)

o The degree to which global advertising should be adapted to the unique characteristics of various country markets o Standardization § Benefits: lower costs, greater coordination, consistent image § Drawbacks: countries differ in culture, demographic, economies, laws o Avoid problems by: creating strategies that make worldwide efforts more efficient and consistent, adapt programs to make them responsive to needs and expectations in different markets o "think globally but act locally"

what is a "trade promotion" and what is it meant to accomplish?

o Trade promotion: sales promotion tools used to persuade the resellers to carry a brand, give it shelf space and promote it in advertising

AT&T conducted the "It Can Wait" campaign. What was its' purpose? (p. 419)

o Urges people to put away their phones while driving. o Depict horrible outcomes of using a phone o Offers a Drive Mode app that silences texts and alerts, notifies senders that the user is behind the wheel o It Can Wait pledge

How does "Team Selling" work? What is the advantage and disadvantage of the model?

o Using teams of people from sales, marketing, engineering, finance, tech support and upper management to service large complex accounts o Multiple minds of experts in different areas can solve problems better/faster o Salespeople are competitive and have been trained and rewarded for outstanding individual performance, may have trouble learning to work with others, can confuse those used to working with one person, difficulty evaluating individual contributions

What are the latest trends in wholesaling as technology changes and disintermediation occurs?

o Wholesalers are facing growing competitive pressures, more demanding customers, new technologies and more direct-buying programs on the part of large industrial, institutional and retail buyers. o Wholesalers today are cutting down on the number of lines they carry, choosing to carry only more profitable ones o Rethinking which services count most in building strong customer relationships o Need to maintain strong presence on social media o Investing in automated warehouses and IT systems, more online business o Increasing the services that they provide to retailers o Wholesalers are opening up their own retail divisions, retailers have become massive wholesalers.

Define WOM marketing and when is it most effective? (p.411)

o Word-of-Mouth: the impact of personal words and recommendations of trusted friends, family, associates, and other consumers on buying behaviors o Carries great weight for products that are expensive, risky, or highly visible

What are observational research, ethnographic research and experimental type research?

observational research: involves gathering primary data by observing relevant people, actions and situations ethnographic research- involves sending observers to watch and interact with consumers in their "natural environments" experimental type research: involves selecting matched groups of subjects, giving them different treatments, controlling unrelated factors, and checking for differences in group responses

Name the competitive strategies company often used when entering a new market?

overall cost leadership- company has the lowest production and distribution costs to win over market share because competitors cannot produce a smaller price (walmart, spirit) differentiation- company concentrates on creating a highly differentiated product line and marketing program so that it comes as a market leader in the industry (price not too high-- Nike) Focus- the company focuses its efforts on serving a few market segments well rather than going for the whole market (Ritz-Carlton, Bose, more luxury and concentrated)

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

these are periods of great migratory movement, Definitely, more and more people moving to "micropolitan areas" (small cities located beyond congested metropolitan areas) meaning a shift in where people work More people telecommuting... working from home, in a remote office, work on the phone Resulted in a booming small home/office market Means that marketers now have to target the telecommuting sector to a higher degree in order to turn profits

Describe the seven different types of Retail Store models and what they focus on as their business models? (Specialty, Department, Supermarket, Convenience, Discount, Off-price and Superstore)

1.Specialty- offers specific products with expert knowledge about the specific product (florists, furniture stores) 2. Department-the most complex offering a wide range of products that can appear as a collection of smaller retail stores managed by one company. The department store offers products at various pricing levels. This type of retailer adds high levels of customer service by adding convenience. (Macy's, Neiman Marcus) 3. Supermarket- Supermarkets have significant buying power and therefore often retail goods at low prices. Usually offer food and drink but have recently diversified to home, electrical, fashion, etc. (Publix) 4. Convenience- located in residential areas, this type of retailer offers a limited range of products at premium prices due to the added value of convenience.(7-Eleven) 5. Discount- This type of retailer offers a variety of discounted products. They offer low prices on less fashionable branded products from a range of suppliers (Walmart) 6. Off-price- retailers who provide high quality goods at cheap prices. They usually sell second-hand goods, off-the-season items etc. (TJ Maxx) 7. Superstore- offer a wide variety of all types of products at low prices to get everything you need from one store. (Super Target, Best Buy)

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

A "positioning statement" is a statement that summarizes company or brand positioning using this form: To (target segment and need) our (brand) is (concept) that (point of difference). Ex: Evernote is a digital content management application that makes it easy to capture and remember moment sand ideas from your everyday life using your computer, tablet, phone, and the web. Provides the company with a specific mission and calls for concrete action and not just talk. The statement determines what the company must deliver.

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

A closed ended question can be answered with a yes or no, open ended needs more information For example: are you going on vacation this summer vs. what are your summer plans Open-ended questions are especially useful in exploratory research, when the re- searcher is trying to find out what people think but is not measuring how many people think in a certain way. Closed-ended questions, on the other hand, provide answers that are easier to interpret and tabulate.

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

A company must decide how it will serve target customers-- how it will differentiate and position itself in the marketplace. A brand's value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs.

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

A product positioning map shows consumer perceptions of brands versus those of competing products on important buying dimensions. Tells you what qualities are important to a target market and what the companies focus on/should focus on more

What is the role and the future of a "shopping center" and a "lifestyle center"? What is a "retail convergence" and why is it so highly competitive?

A shopping center is a group of retail business built on a site that is planned, developed, owned and managed as a unit. (Regional shopping center, community shopping center, neighborhood shopping centers, power centers) Lifestyle centers are smaller, open-air malls with upscale stores, convenient locations, and non retail activities such as playground, hotels, movie theaters, etc. Retail convergence is the merging of consumers, products prices, and retailers. This means great competition between places that were mutually exclusive before like Sears and Best Buy, which makes it hard to differentiate a certain company.

What is a SWOT analysis and what can it reveal?

A strategic planning technique that helps a person or organization identify strengths, weaknesses, opportunities, and threats related to business competition or project planning

Briefly describe Maslow's Hierarchy of Needs in relation to Consumer Marketing Insight.

A triangle of needs, only when a lower level is fulfilled will a person move towards the next tier Top Self-actualization (self development and realization) Esteem (self esteem, recognition, and status) Social (sense of belonging, love) Safety (security, protection) Base Physiological (hunger, thirst)

What is a "Limited-service Wholesaler" and give three examples like rack jobber, drop shippers?

Limited-service wholesaler: offer fewer services than full-service wholesalers cash-and-carry wholesalers: carry a limited line of fast-moving goods and sell to small retailers for cash. Normally do not deliver. Truck wholesalers: perform primarily a selling and delivery function. Carry a limited line of semi-perishable merchandise (milk, bread) which is sold for cash as deliveries are made to supermarkets, hospitals, restaurants, cafeterias, hotels Dropshippers: do not carry inventory or handle the product. On receiving an order, they select a manufacturer who then ships the merchandise directly to the customer. Operate in bulk industries (coal, lumber, equipment) § Rack jobbers: serve grocery and drug retailers, mostly non-food items. Send delivery trucks to stores where the delivery people set up toys, health and beauty, etc. They price the goods, keep them fresh, set up point-of-purchase displays and keep inventory records. § Producers cooperatives: farmer-owned members that assemble farm produce for sale in local markets. Often attempt to improve product quality and promote a co-op brand name such as sun-maid raisins, Sunkist oranges, diamond nuts. § Mail-order or web wholesalers: send catalogs to or maintain websites for retail, industrial, and institutional customers featuring jewelry, cosmetics, specialty foods, and other small items. Primary customers are businesses in small outlying areas

How does "subculture" play a role in understanding the Consumer? What is a Total Marketing Strategy?

Many subcultures make up important market segments, and marketers often design products and marketing programs tailored to certain subcultures and their general needs The three main subcultures mentioned in the book are Hispanic american (family oriented and price sensitive), African american (motivated by quality and selection), and Asian american (well-educated, brand conscious) Total market strategy: Integrating ethnic themes and cross-cultural perspectives within a brand's mainstream marketing, appealing to consumer similarities across subcultural segments rather than differences

What is the difference between a product-oriented and a marketing oriented description of a company?

Market oriented: a company that organizes its activities, products and services around the wants and needs of its customers Product orientation: a company who focuses on its product and the skills knowledge and systems that support it

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

Market segmentation is dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes. It is an important first step because Important to decide who you are marketing to/who the product is for. Understand the differences between each group

Provide a definition of key terms "a market" and "marketing management"

Market: the set of all actual and potential buyers of a product or service Marketing Management: art and science of choosing target markets and building profitable relationships with them

What are the 9 tactical approaches to pricing?

o Product Pricing o Captive Pricing § Low initial costs draw in consumers who are then milked by expensive additions needed later. (Razors + Razor blades, Gaming systems + games) o Price Bundling § Discounts are given for people buying multiple products at once, this promotes buyers to buy products they initially would not consider. (insurance types, full meals at restaurants) o Reference Pricing § Pricing is based off what consumers believe what they should be paying. (Chips should cost $X, and crackers should cost about $Y) o Prestige Pricing § Offering the most expensive product so that consumers will assume that they are buying the best product. o Odd/Even Pricing § Slightly modifying the price of a good to a more appealing number. (instead of charging $50 instead $49.95) o High/Low pricing § all products are originally very expensive, but prices are constantly slashed, and discounts are constantly offered so that consumers rush to buy believing that they are catching a deal. (JC PENNY) o One-price & Variable Pricing § One price: Every costumer is paying the same amount for a good § Variable: Price varies for customers based off some specific factors o Every Day Low Prices (EDLP) § All prices are as low as possible, to attract frugal buyers, very popular since the recession. (Walmart) o Auction § Auctions allow for sellers to ensure the person who values their good the most is the one buying it. Also, a new type of environment can drastically change the buyers mindset.

What was the purpose of the Global Rainforest Alliance - Follow the Frog? (p. 419)

o Promoted the cause of minimizing harmful human impact on the environment. o Companies committed to sustainable sourcing from farms and forests can earn the right to display the Rainforest Alliance Certified logo o Offer sourcing assistance and training o Follow the Frog § Video featuring what people don't have to do to help the environment (going to extremes) and that there's an easier way by following the frog and choosing products that have the seal § Boost awareness of pressing ecological challenges

What are the seven steps in the selling process?

o Prospecting and Qualifying § Identifying qualified potential customers. Financial ability, volume of business, special needs, location, possibilities for growth o Pre-approach § Learn as much as possible about a prospective customer before calling o Approach § Meet the customer for the first time o Presentation and Demonstration § Tell the value story to the buyer, show how it solves problems o Handling objections § Seek out, clarify, and overcome any objectives to buying o Closing § Ask the customer for an order o Follow-up § After the sale to ensure customer satisfaction and repeat business

What new role has Public Relations Departments had to take with the development of Social Media? What is a Social Media Command Center? (p. 446-447)

o Public Relations: build good relations with public by obtaining favorable publicity, building image, handling rumors, stories and events o With social media, PR uses websites, blogs and social media to connect with customers o Has to make sure these sites don't have negative content and that they portray the brand's unified identity o Command Centers: make sure brand's marketing exposure is positive

What is the difference between "push' and "pull" strategies for advertising campaigns? (p.416- 417)

o Push strategy: using the sales force and trade promotion to push the product through channels. Producer promotes the product to channel members who in turn promote it to final consumers o Pull strategy: spending a lot on consumer advertising and promotion to induce final consumers to buy the product, creating a demand vacuum that pulls the product through the channel.

Trade barriers are a very common implementation in the International Trade System. How are "quotas" used? Tariffs set a non-tariffs implemented that would serve as barriers to open trade?

o Quotas: limits on the amount of foreign imports that they will accept in certain product categories. Used to conserve on foreign exchange and protect local industry and employment o Tariffs: taxes on certain imported products designed to raise revenue or protect domestic firms. Used to force favorable trade behaviors from other nations o Nontarrif trade barriers: biases against bids, restrictive product standards, excessive regulations/enforcement. Used to protect local industries and employment

How does the sales team link the company with its customers?

o Represent the company to customers § Find and develop new customers and communicate info about the company's products and services § Sell products by engaging customers and learning about their needs o Represent the customers to the company § Acting inside the firm as "champions" of customers' interests and managing the buyer-seller relationship

What is the definition of a "sales promotion"? Give three to four examples

o Sales promotion: short-term incentives to encourage the purchase or sale of a product or service § Freestanding insert in the newspaper with a coupon § Ad offering "buy 1 get 1 free" and other discounts § Supermarket deals § Buy a new phone and get a free memory upgrade § Frequency marketing programs and loyalty cards

How does a sales quota motivate sales people/ What is the role of sales contests?

o Sales quota: standard stating the amount a salesperson should sell and how sales should be divided among the company's products. Compensation often related to how well they meet quotas o Organizational climate: valuing the salespeople o Sales contests: spur efforts to go above and beyond what is expected

What is the difference between the different roles of a sales person?

o Salesperson: individual who represents a company to customers by: prospecting, communicating, selling, servicing, information gathering, and relationship building § Order taker: department store salesperson standing behind the counter § Order getters: position demanding creative selling, social selling, relationship building for products and services

What are the major advertising decisions a firm has to make? (p.429)

o Setting advertising objectives § Specific communications tasks to be accomplished with a specific target audience during a specific period of time. To inform, persuade or remind o Setting advertising budget o Develop advertising strategy § Creating advertising messages and selecting advertising media o Evaluating advertising effectiveness

Why was the ad campaign, "CVS quits" launched in a very high profile manner? Chapter 16 - Personal Selling and Sales Promotions. (p.447)

o Show customers they're adhering to brand mission of "helping people on their path to better health" and although they lost billions in tobacco sales, people trust them and are more inclined to shop there o Received a lot of attention and led to other retailers to do the same