quiz #7 - marketing

Anthony and Brian both owned Harley Davidson bikes, and both were members of the HOGS. They did not realize at first the HOGS were not an official part of Harley Davidson, but a group that grew apart from the company. More recently this kind of phenomenon has gone online and become known as? - brand communities - user communities - interest communities - social-media communities

brand communities

Adrienne was thrilled with the new design she had for neckties and posted it on the company's website. It wasn't long before negative comments flowed in complaining about the colors she chose and the overall design. She scrapped that design and started over. If the design had gone into production it would have been a costly mistake, and the process that prevented this from happening is known as

co-creation

Stephanie was complaining to her friends about how hard it was to find parking and deal with traffic on the way to the store. She was even more upset when she got to the store, and they didn't have what she needed. She said, I'm taking my business elsewhere." To prevent defection of customers like Stephanie, retailers need to focus on? - concentrating on conv. - better inventory control - improving traffic flows - adding parking facilities

concentrating on convenience

Retail operations, traditionally thought of as "place" in the marketing mix, are under increasing pressure from consumers to accommodate the consumers' busy lifestyles and lack of time to go shopping. While some customers still like the old ways of shopping, retailers need to think about shopping from the customers' perspectives, which falls under which of the 4 Cs approach to the marketing mix? -customer benefits -convenience -cost -communication

convenience

If a firm wanted to build enthusiasm for the launch of new product by getting input and advice from a large number of potential customers online, what process might they use?

crowdsourcing

Why is experiential marketing becoming such a significant approach to consumer marketing - interaction - experiences

interaction with the brand, product or service becomes more compelling and intimate leading to a stronger link between the customer and the firm

There are two trends changing marketing practice:

(1) increased customer participation with brands and in the marketing process, with marketers trying to provide more positive customer experiences and (2) customers becoming more reliant on technology to connect with brands and each other.

OG 4 Ps framework:

(product, place, price, and promotion) is still used to describe the marketing mix.

Key Concepts: -experiential marketing -brand community -co-creation -crowdsourcing -gamification -extended marketing mix

- Experiential marketing: A style of marketing that creates memorable interactions with brands that appeal to customers' senses. - Brand community: An online community formed on the basis of attachment to a product or brand. - Co-creation: A relationship in which customers participate in the design or production process with the brand. - Crowdsourcing: The use of individuals or groups outside the organization to provide assistance, advice, or input on a task. - Gamification: The use of games to interact with others (especially customers) to make the interaction more engaging and interesting. - Extended marketing mix: The 5Ps and Cs framework that marketers use to facilitate exchanges with a target market.

A fifth P and C:

Participation-connection: To accommodate the two trends in marketing practice, we added a fifth P and C to extend the marketing mix—participation (P) and connection (C).

The traditional marketing mix includes the 4 Ps:

Product, Place, Price, and Promotion

Why is it important for a marketer to begin marketing mix decisions with Product when all 5 Ps are interrelated?

Products and clear ideas of the customer benefits are the basis for all other consideration

What is the purpose of adding the 4 Cs to the traditional 4 Ps framework?

The purpose of adding the 4 Cs to the traditional 4 Ps framework is explained below: 1. The four pillars of marketing strategy are Product, Price, Place and Promotion. In addition to this the 4C's of marketing which are Consumer wants, Cost, Convenience and Communication are added in order to bring out the more realistic pillars of marketing. 2. Marketers feel that these 4C's add much more value and focus on communication to the target audience rather than just marketing and selling the product. 3. While the 4P's where focus on selling marketing strategy, the 4C's are focused on consumer based marketing strategy. 4. Even before developing the product the marketers can really understand their audience and plan strategy accordingly.

To add a more explicit focus on customers, the 4 customer Cs were added to the traditional 4 Ps framework to provide a more direct customer perspective.

To apply the marketing mix effectively, marketers must tie specific Ps to customer Cs. Marketers should relate: Product (P) decisions to desired customer benefits (C), Place (P) decisions to customer expectations and desired levels of convenience (C), Price decisions to customer perceptions of cost (C), Promotion decisions to customers' communication (C) needs.

Jason would drive about 20 miles out of his way to the gas station whose price was about 8¢ a gallon cheaper than the local stations. His friend Paul, who was a marketing student, tried to explain to Jason this wasn't such a great deal because

cost means more than the price at the pump; including the fuel he used to get there and his time

Kate has been watching her firm switch from the 4 Ps in the marketing mix to the 4 Cs over the past few years. This switch is more than semantics for the use of the 4 Cs means the marketers will? - practice more state of the art approach - create more value in an exchange - control more of the customers total spending - be more efficient in their use of marketing tools

create more value in an exchange

Maya couldn't stop talking about her purchase of her new clothes for work. Not only had the people in the store been helpful and gracious, she was amazed at how comfortable the surroundings had been from the lighting to the flowers to the way the goods were colorfully displayed, the chilled water she was offered, the amenities in the changing rooms, the way her purchases had been wrapped and more. Her friends were acting bored, but they were also thinking about visiting the same store. What Maya had experienced was

experiential marketing

Patrick was frustrated with trying to get the fifth P—Participation—right. He knew the traditional 4Ps were all well developed, so he decided to move ahead without nailing down the Participation aspect. Was this a good decision? -yes. the 4 Ps have worked well for decades, and the fifth is still largely unproven. -no. participation is the most important of the 5 Ps in today's marketing environment -yes. starting without Participation settled doesn't mean it can't be done later. speed-to market is important. X NOT RIGHT -no. all 5 Ps are interrelated, and problems with one indicate potential problems with the others.

no. all 5 Ps are interrelated, and problems with one indicate potential problems with the others.

Integrating the extended marketing mix: There are three key points to remember when applying the framework to make marketing decisions:

1. All five P & C elements in the extended mix are equally important. Marketers must consider all five elements thoroughly and with the same level of attention to have a successful mix. 2. The combination of P & C element decisions will determine the success or failure of the marketing program. A great decision in one element cannot make up for a poor decision in another area. 3. All five mix elements must work together. Strategic consistency requires the marketer to consider not just whether the P delivers on the corresponding C (e.g., product decision provides desired customer benefits), but also whether the decisions across elements are consistent (do all five decision elements work together and provide the same value message to the target customer?).

The rise of experiential marketing and increased use of technology have given rise to what changes in the marketing mix. -moving the customer from the center to encompass all four Ps and Cs -abandoning the center system for a most customer-centric approach - adding a new pair of Ps and Cs to the marketing mix - recreating the traditional idea of Place to accommodate new retail styles and online shopping experiences. NOT RIGHT

adding a new pair of Ps and Cs to the marketing mix