Marketing

How do marketing professionals take into account marketing ethics when selling products and services?

(1) have managers who are committed to quality, (2) set high service quality standards, (3) have systems for monitoring service performance, and (4) satisfy employees as well as customers.

What are the three key elements to consider when designing a marketing research study?

(1) specify the type of information to be collected (2)*** possible data sources (syndicated/info from industry, secondary/info already exists, or primary/ info from organization) (3) a procedure for collecting data.

What are the five problems associated with measurement error?

-respondent characteristics (ex. knowledge or mood) -situational factors (ex. time of day or interview environment) -data collection factors (ex. influence of the researcher or interviewing method) -questionnaire factors (ex. misleading questions, incomprehensible questions, or socially sensitive questions) -data analysis factors (ex. using the wrong data analysis method or coding open-ended comments improperly)

What are AMA's three ethical Norms?Be able to explain them.

1. Do No Harm-consciously avoiding harmful actions or omissions. 2. Foster Trust in the Marketing System-avoiding deception in product design, pricing, communication, and delivery of distribution. 3. Embrace Ethical Values-enhancing consumer confidence in the integrity of marketing by affirming these core values of honesty, responsibility, fairness, respect, transparency, and citizenship.

What are common statistical analyses and techniques used by marketing researchers? *** ON TEST

Analysis of Qualitative (open-ended, small sample): -focus groups=asks indiv from the target market for feedback (build on new product concepts b/c its quick) -depth interviews: interviews a single person (purchase motivation/sensitive concepts & advertising) -cross tabs= analyzes data patterns for frequency counts (tests relationships or trends) Analysis of Quantitative (close-ended, large, predictive): -Analysis of variance= analyzes stat. sig. differences by testing real diff in group averages (is it due to sampling error? evaluates effect. of diff policies or evidence to inform marketing decisions) -Regression=measures relationship btw. predictors & outcomes (how much money will they make for every dollar they spend) -Factor Analysis=groups highly correlated variables with factors (simplify data sets) -cluster analysis=clusters people into similar perspectives (segmentation of markets) -max-diff analysis=analyzes choice preferences of most/least (choice preference) -TURF analysis=determines optimal combination of products (what needs to be stocked to achieve max sales) -Conjoint analysis: estimates value of each attribute to find value of product. (aid product dev., pricing choices, & to build market stimu. to measure impact of choices or market share)

Why is it important for marketing through the eyes of the brand champions?

Brand champions will be interested in enhancing their consumption experience of products they love by using complementary products and can ride the wave of the original products consumers love.

Contrast the four Risks of global marketing expansion.***

Competitive-results from competitors' responses to the new product's entry into the local market. Economic-considers the potential mismanagement of a country's economy as exhibited by inflation and government debt. Legal-includes inadequate protection of contracts and intellectual property. Without appropriate legal safeguards, the probability of broken contracts and stolen intellectual property increase significantly. Political-is associated with demonstrations, strikes, civil strife, abrupt government changes, violence, and terrorism. Political risk influences business performance.

How are consumer insights discovered by marketing analytics?

Consumer insight is an accurate, deep, and intuitive understanding of what gets a consumer to take action. These insights are found when measuring, analyzing, predicting, and managing marketing performance by linking specific marketing initiatives to desired consumer actions.

What are the three levels of strategy?

Corporate- SBU- Marketing-

What are the three types of geographic marketing?

Domestic-focuses on customers in the firm's home country. They do not participate in joint ventures with companies in other countries. For this product category, transportation costs create a barrier to entry, excluding out-of-country competitors. International-exporting products to one or more countries outside the domestic market while remaining invested in the domestic country. They may participate in joint ventures with companies in other countries. Global-selling or licensing products for sale in countries throughout the world. Looks a great deal like production orientation marketing carried out on a global scale. Cons creates new global competitors.

Social forces

Generational Cohorts: people born during the same period, who share common life experiences. Age in 2018 Greatest generation =91 and older silent generation=73-90 baby boomers= 54-72 generation x=38-53 generation y=22-37 generation z= 21 and younger

*** Types of income

Gross= total amount of money disposable=money after taxes to buy necessities discretionary= money after taxes and necessities to buy luxury products

How are the factors that influence low-involvement and high-involvement choices the same?*** -How are they different? -How do these factors relate to consumer behavior?

How are the factors that influence low-involvement and high-involvement choices the same? They both use the do-feel decision making process to persuade purchases -How are they different? Low= (routine) consumers make habitual or frequent purchases. Inexpensive, little risk, little info. High= (extensive) risk is involved in expense, social implications, physical danger. much info and infreq. purchase -How do these factors relate to consumer behavior? low=the challenge is getting a consumer to try something new. high=challenge is getting a consumer to search out the right information and make the right comparisons before making a purchase.

Benefits of Green marketing

Increasing market share -Attracting green consumers by getting your products included in environmentally preferable purchasing programs. Reducing operating costs- Increasing efficiency and reducing waste leads to better profit margins. Less tangible benefits- Includes benefits such as increasing employee participation and morale, strengthening the company's image in the community.

What are the myths of unethical marketing?

Myth #1: Marketers Push Products Consumers Don't Want to Buy.-marketing is not designed to get consumers to buy products they don't want, don't like, and don't need. Myth #2: Consumers Are No Match for the Power of Marketing.-you can be heard loud and clear. You can also create your own outlet for service reviews. Myth #3 Marketing is Deceptive and Not Truthful or Honest.-most firms know that truth in advertising is important for building trust with their customers and they strive to portray the truth in their marketing efforts. Myth #4 Marketers Believe in Planned Obsolescence.-First, firms that engage in planned obsolescence risk enormous backlash from consumer groups. Second, firms that actively pursue planned obsolescence put themselves at risk to global competitors who see an opening to compete by offering consumers additional benefits of longer-lasting, higher-quality products.

How do consumer behavior concepts apply and relate to business-to-business buying decisions?

Participants assume one or more of the following roles in this process: influencers(give info), gatekeepers(contol info flow), users(work with the product), deciders, and buyers

What are the 4 P's of the Marketing Mix?

Product, Price, Place, Promotion

What are the differences between the four marketing philosophies?

Production orientation-(all about the product. Does not consider competitors or the needs of the market) supply generates its own demand. lower cost and increase distribution sales orientation- (aggressive sales techniques) marketing's only role is to sell products once they are made. Marketers must find people to buy existing products and then aggressively sell. market orientation-very product or service should focus on satisfying customer needs and wants at a profit. societal orientation-(concerned about enviro) every product or service should provide value to the customer as well as to society as a whole.

How does social responsibility impact marketing practices and green marketing?

Social responsibility suggests that businesses and organizations are part of a larger society and that they are accountable to that society for their actions. With a sustainability strategy, a company makes marketing decisions by considering consumers' wants, the company's requirements, and society's long-term interests. In essence, the belief is that firms can "do well by doing good." Through green marketing, firms are able to enhance their brand image. They may also be able to increase their profitability because they are demonstrating to consumers that they care about the environment. The key ways a company embraces social responsibility include philanthropy, promoting volunteering, and environmental changes.

What are the advantages and disadvantages of standardizations versus customization?***

Standardization: the firm uses the same marketing mix in the foreign market as it uses in the domestic market. Product, price, promotion, and distribution are standardized across countries. pro-cost reductions gained by economies of scale. Considerable savings are gained in a product (lower production costs) and promotion (lower costs in media advertising and sales literature). Control and image. con-standardized products may not fit the needs of the local market. Customization: adapt or modify the marketing mix to suit the local market. pro-suitability to tastes and have a sense of local-ness cons-higher cost

What is the ethical framework for identifying and applying levels of ethical strength? How does it apply to marketing professionals?

The framework has a foundation of personal understanding of ethics that is then built upon by the elements of personal applications of ethics to business situations, ethical courage, and ethical leadership. Most individuals in an organization have a personal ethical understanding—they are generally able to distinguish right from wrong. However, what is often lacking in businesses today is the application of personal ethics to business situations.

What is a Strategic Business Unit (SBR)?

Units within the organization that have their own objectives and different independent plans. It also has control over its resources and its own competitors. it can be measured based on market growth rate and market share.

How does marketing analytics relate to managerial decisions for marketers?

With marketing analytics, marketers can answer questions such as (1) How are our marketing programs performing and how can they be improved? (2) How are our competitors spending their marketing dollars and how does their success compare with our own? (3) Are our marketing initiatives performing better or worse than predicted and why is that? (1) developing segmentation approaches, (2) evaluating their promotion, pricing, and product or service strategy, (3) monitoring their branding efforts, (4) measuring the effectiveness of social media.

What is marketing insight?

a deep understanding of consumer attitudes and beliefs that have the power to shape consumer behavior.

Customer lifetime value (CLV)

a measure of a customer's worth (sales minus costs) to a business over one's lifetime. If you don't know a customers worth you don't know what you should spend to keep one or to get one.

What are big data? -Why are big data essential to marketing managers?

big data= -Why are big data essential to marketing managers=

Culture

composed of attitudes, behaviors, expectations and values that are learned, shared, and transmitted by a group of people.

What is the Strategic Triangle?

customer, company, and competition.

What is marketing analytics?

enable marketers to measure the effectiveness of marketing activities. gather data from across all marketing channels and consolidate it into a single, comprehensive marketing view. ***The methods for measuring, analyzing, predicting, and managing marketing performance with the purpose of maximizing effectiveness and return on investment.

Buying Center- five elements***

influencer-affect the outcome decision with their opinions Deciders-have the final decision to buy Buyers-purchaser User-Ones who use the product or service Gatekeepers-control the flow of information

How is hypothesis testing used in marketing research?

makes research more conclusive and gives organizations more confidence when acting on research recommendations. Hypothesis testing uses statistics to determine the likelihood that a given belief is true. It consists of three steps, (1) formulate the null hypothesis, (2) pick a test statistic, (3) compute a p-value, which is the probability that we observe a difference by chance, i.e., determine if a test statistic is significant.

Types of error ***

sampling error-drawing small samples from large populations, increase the sample size Measurment error- asking questions which don't measure what you hope to measure, ask appropriate questions Coverage error- sample does not represent the population of interest, screen for representative sample Non-response error- obtained sample differs from the original selected sample, compare non/late respondents and respondents

How is a SWOT (situational assessment or situational analysis) analysis created and used for competing in a global environment? ***

strengths, weaknesses,-think marketing mixes and internal forces. opportunities, and threats. Formal Planning: The Staff Planner's Role at Start-Up. was written containing SOFT then Stewart refined it to SWOT. It was created to assess how their firm's internal abilities and capacities are affected by forces in the external environment and as an evaluation of the strategic position. Strengths (advant): Core competencies, abilities, and capacities that provide an advantage when meeting customer needs Weaknesses (disvant): Internal limitations a firm faces when seeking to deliver value to customers Opportunities: Favorable conditions and trends a firm may exploit to its advantage Threats (trouble): Conditions, trends, and barriers that hinder firm performance. Managed by acting upon or avoiding them.

What are the components of a marketing strategy?

target market+ marketing Mix= Marketing strategy

Define Data Wrangling***

the process of cleaning, unifying, and preparing unorganized and scattered data sets for easy access and analysis.

Define and explain the four market entry strategies.***

(1) exporting pro-financial risk is relatively low because the foreign distributor or retailer takes on the risk of selling the product. con-the exporting company has little control over what happens to it (2) licensing: a firm in one country (the licensor) agrees to allow a firm in another country (the licensee) to use its manufacturing, processing, trademark, know-how, patent, or some other skill or value. pro-puts the burden of risk for developing the product on the back of the licensee. con-the licensor usually only receives a small portion of the sales revenue and doesn't have close control on manuf. quality or marketing. (3) joint venture: when two or more companies agree to create a new business, jointly owned by the participating companies. Joint ventures share expenses and risks across companies located in the home country and in other countries. (4) foreign direct investment: make direct investments in building up wholly owned operations in other countries. pro-company has complete control con-cost and risk are high. nonnative managers understanding cultural differences.

Five Forces Model (Michael Porter)

-Competitive rivalry. Intensity based on the type and number of competitors and on the basis of competition. Price discounting, advertising, new product offerings, and service quality are strategies used to attract customers in the face of competitors. High competitive rivalry drives down industry profits. -Power of suppliers. Powerful suppliers can drive down industry profits by charging higher prices and reducing product and service quality. -Power of buyers. Powerful buyers (customers) can use their clout to demand and receive lower prices, increased product quality, and more services. -Threat of entrants. New entrants can shake up an industry and cause increased competition as they seek to take market share from existing companies in the industry. -Threat of substitutes. Substitute products have the potential to replace existing products because they perform a similar function. As a result, industry profits suffer.

How do social forces, like culture and demographics, influence customer attitudes, lifestyles, and buyer behavior?

-Culture: shared values, attitudes, and practices that shape human behaviors. It exerts the broadest and deepest influence on consumer buying patterns. demographics: Statistical data that describe a population. It provide marketers with important information about the age, gender, income, race, and ethnicity of particular populations. Changes and shifts in demographics can affect consumer behavior

What are the five components of the research process?

-Define the marketing problem- Also define the research objectives and the decisions to be made. -Design the research project. Review all relevant secondary research and related studies for insight and direction. Write a screener to identify an appropriate sample of decision-makers, users, and influencers. Write questions that address goals or decisions; the questions may come from qualitative pre-work or prior studies. -Collect the data. Select data collection and analysis methods that will provide simple, clear, and unambiguous answers. Collect data as quickly as possible using reliable, representative sources. -Analyze the data. Use appropriate analysis methods to provide information and insight for answering the research question. -Take action. Answer the research question and make specific recommendations.

What are the four factors that help marketing researchers generate insights for an organization?

-Experience of the research team -Quality of the data sample -Expertness of the data analysis -Nature of the survey questions

What are common statistical analyses and techniques used by marketing researchers?

-Exploratory information is usually collected from individuals in personal interviews, in-store shop-alongs, ethnographic studies, or from focus groups of 8 to 10 people. Exploratory research helps marketing managers obtain overall impressions of the marketing environment and issues. -Conclusive information is typically quantitative and based on large samples of respondents. Conclusive research may help managers find the degree of association between marketing variables and marketing outcomes using multiple regression or other analytical tools. Conclusive research helps managers find quantifiable solutions to quantifiable problems.

What are the quadrants in the Product-Market Expansion Matrix? ***

-Market penetration (same product and people) —selling more of the existing products in existing markets. Low Risk. ex. CocaCola -Product development (new product same people) —introducing new products to existing markets. Some Risk. ex. Apple -Market development (new people)—introducing existing products to new markets. Some Risk. ex. IKEA -Diversification (new people and product)—introducing new products to new markets. High Risk. (concentric: diversify current products to new people, Horizontal: unrelated products to existing people, Conglomerate: purchasing another company to diversify) ex. Samsung

What are the profitability drivers? ***

-customer acquisition -customer retention -sales per customer(If customer acquisition costs are high, then sales per customer must be high to compensate. Boosted through buying theirs and not competitors, add-on sales, and partnered firms with add-on sales) -margin (diff btw price and cost. increased by increasing price, shifting purchases toward higher-margin products, making customers less expensive to serve, discourage unprofitable customer behavior. sell for a 500% margin to maintain a profitable buisness)

Define the following terms: 1) marketing domain 2)marketing concept 3)margin 4)corporate strategy.

1) 2) 3)diff btw price and cost 4)

Define: 1)market 2)marketing

1) people who have wants and the ability to purchase something that satisfies their needs. (Business/B2B and consumer/B2C) 2) an exchange btw sellers and buyers. It creates value to facilitate exchanges and satisfies a customers needs at a profit.

*** Define and explain the 5 external forces (social, economic, technological, competitive, and regulatory) that shape the competitive structure of firms.

Social- affect people's attitudes, beliefs, and lifestyles. For marketers, information about social forces is important because these forces shape consumer behavior. Economic- (changes in economy affect consumer spending) Marketers pay attention to income trends because of the relationship between income and ability to pay. Companies offering luxury products are most interested in *** discretionary (after taxes and necessities) income. Tech- (used to solve a problem more effectively.) Marketers monitor technological advances and changes to create new products and to estimate the effects of technology on existing products. ex. film-based camera competitive- (used to determine the attractiveness of an industry) A useful framework for understanding the competitive environment is the Five Forces model developed by Michael Porter, which is based on industrial economics. Regulatory- (protects consumers and ensures safety) government constraints used to protect consumers and businesses. For the consumer, regulations help ensure safety and fair trade practices. Regulations protect businesses by promoting competition and fair business practices.

What is the consumer behavior process? *** -How do marketers influence buying decisions and customer loyalty?

What is the consumer behavior process? (1) problem recognition (current state & desired state), (2) information search (internal, personal, public, commercial sources of info), (3) evaluation of alternatives (elimination by aspects, compensatory, lexicographic) , (4) purchase (quick, congenial, and competent. more expensive the purchase the more this is important) and (5) post-purchase evaluation. How do marketers influence buying decisions and customer loyalty? -Culture=deepest and broadest influence, social factors, psychological drivers(motivation, attitude, perception), individual differences(gender, age, and family life-cycle), the buying situation, and the marketing mixes used by competing companies influence purchasing decisions

*** Know for Test*** Types of analysis

cross tabs- freq counts, conditions, attitudes, behaviors that occur most often Analysis of Variance-variability around an average, averages that differ beyond expected variability Regression Analysis-relationship btw a dependent variable and one or more independent or predictor variables Factor analysis-Data reduction techniques, identify highly correlated variables, group into factors Cluster analysis-classifies objects or people into groups based on similarities, divides market into segments Discriminant analysis-ability of predictor variable to discriminate btw categories, generate perceptual maps depicting brands Max Diff Analysis-measures most/least important or most/least appealing, determine choice preference Conjoint Analysis-estimates the value of component attributes given tradeoffs, develop new products an identify pricing alternatives.

How is measurement error minimized?

measurement error is the error from (random and systematic error) (1)validity- not measuring what we think we are—invalid measurement— (2)reliability-not measuring what we want with consistent accuracy—unreliable measurement. -Double check all measurements for accuracy. For example, double-enter all inputs on two worksheets and compare them. -Double check your formulas are correct. -Make sure observers and measurement takers are well trained. -Make the measurement with the instrument that has the highest precision. -Take the measurements under controlled conditions. -Pilot test your measuring instruments. For example, put together a focus group and ask how easy or difficult the questions were to understand. -Use multiple measures for the same construct. For example, if you are testing for depression, use two different questionnaires.

What is the black-box model of consumer behavior? -How does it provide insight into buying decisions?

the black-box model of consumer behavior: consumer decisions are not entirely understandable or predictable; there is no mathematical formula that can accurately describe an individual's decision-making process. (1) stimuli influencing the buyer (2) the buyer's black box (3) the buyer's response. How does it provide insight into buying decisions? -general stimuli (economy, political environment, technological changes, natural surroundings, social context, and culture.)can greatly influence buyer behavior -marketing stimuli (marketing mixes consisting of various products, prices, places, and promotions) can influence buyer behavior buyer's black box is filled with the buyer's characteristics: attitudes, interests, and opinions, motivations, values, and perceptions of the world, stage of life, lifestyle, and education. The buyer's response comes down to some sort of choice, such as when to purchase, where to purchase, how to purchase, how much to purchase, or which product and brand to purchase. The consumption experience also plays a role in the buyer's response.

What is consumer behavior?

the study of how people make purchasing decisions and of individuals' consumption experiences.

What are the objectives and process of data analytics?

to help make the marketing decisions the client needs to make.

Data modeling

transform data to extract insights, build model to represent phenomenon of interest, select variables to include

What is the fraud triangle? How is it applied to marketing and selling products and services?

useful tool for explaining, predicting, and preventing fraudulent behavior. We can extend the usefulness of this tool to unethical behavior. Three elements represent the sides of the fraud triangle: opportunity, motivation, and rationalization. opportunity-fraud=access to info or assets motivation-pressure felt by fraud rationalization-justifying fraudulent behavior.