Marketing Test 1
119. How does "Behavioral segmentation" help improve customer loyalty or "occasion" shopping on holiday's or "Benefits" segments?
Behavioral segmentation- Dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product Benefit segmentation- Dividing the market into segments according to the different benefits that consumers seek from the product Marketing occasion shopping increases profits in certain parts of the year, such as Starbucks selling Fall-themed beverages. Marketing benefit segments allows a company to target different benefit seeking customers with varying products. (Ex: Fitbit)
2. The Marketing Process (1.1) has four steps in creating value. What are they?
Understand customers--create customer value--build strong customer relationships--reap rewards of customer value
45. What is the advantage of a Social Media Center?
• Allows a company to respond quickly to any social media concerns or issues; live monitoring of the firm's social media activity, gives the company easier access to customer opinions
49. How does an advertiser create "Behavioral Targeting"?
• Marketers mine consumer browsing information and target ads and offers to specific consumers
54. Ordering and wording can skew a questionnaire. How does it do that?
• Personal questions first can cause respondents to become defensive • Wording can bias the response
26. What is a SWOT analysis and what can it reveal?
• Strengths, Weaknesses, Opportunities, Threats • Gives a good idea of the competitive landscape of the company
57. Netflix uses analytics to help improve customer satisfaction. What do they do?
• They monitor what consumers watch and use big data insights to give customers what they want to watch through recommendations, deciding what programming to offer and what content to develop
60. 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?
• They offered coupons for pregnancy items to a young girl... turned out she was pregnant • There should be checks in the research system, however, this shows that the research was highly accurate. Knew the girl was pregnant before her family
56. What is "Marketing Analytics" and why is it so important in developing a marketing strategy?
• Tools, technologies and processes by which marketers dig out meaningful patterns in big data • Used to gain customer insights and gauge marketing performance...important in developing market strategy bc you use big data and the analytics in finding a target market/seeing which areas of your company need to improve
55. Customer Relationship Management relies on good measurement of "Touchpoints". What is a Touchpoint Analysis and what does one discover from a TPA?
• Touchpoints: customer purchases, service and support calls, web and social media visits, satisfaction surveys, credit and payment interactions • Integrate customer information from all sources, analyze it, create a 360-degree view of customer in order to build stronger customer relationships
106. How does B2B Sales handle segmentation?
• Use many of the same factors as B-to-C • Use: o Operating characteristics Purchasing Approaches o Situational factors o Personal characteristics
17. What is the "Starbucks Experience" and how has it helped their company to grow?
"One that enriches people's lives one moment, one human being, one extraordinary cup of coffee at a time". • Part of mission statement • Starbucks sells an experience, not a product. Customers find more value in the experience; its not just about the coffeet
114. What is a "Positioning Statement" and why is it important?
A statement that summarizes company or brand positioning using: To (target segment and need) our (brand) is (concept) that (point of difference). It differentiates the brand
99. How should Marketing Departments and Public Relations' handle "crisis" situations?
• Departments have to be proactive to prevent further damage. Must put out a message and stick to it • Take responsibility and protect the brand
75. What are the five steps in the Buyer Decision process?
1. Need recognition 2. Information search 3. Evaluation of alternatives 4. Purchase decision 5. Post-purchase behavior
27. What are the 8 elements in a Marketing plan?
1. Executive Summary- summary of main goals and recommendations. Brief 2. Current Marketing Situation- describes target market, company's position, etc. o Market description o Product review o Review of competition o Review of distribution- sales trends 3. Threats and opportunities analysis 4. Objectives and issues 5. Marketing strategy 6. Action programs- how will marketing strategies be turned into actions 7. Budgets 8. Controls- monitor progress, allow managerial review
53. Questionnaires can be misleading when using open-ended or closed ended questions. Give an example.
Close ended - include all possible answers (Ex: multiple choice) Open ended - allow respondents to answer in their own words (reveal more than close ended) - need to use simple, direct, and unbiased wording
3. Why is it important to understand whether a customer's state of desire for an offering is either in "needs wants or demands" state?
Given their wants, people demand products + services with the most value, benefits, and satisfaction wants- needs as they are shaped by culture and personality...buying power then brings demand • Important in order to create value for customers through market offering. Need to know what you are satisfying: need or want/demand
82. 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?
GoldieBlox attempts to encourage female interest in STEM education by combining the research showing stellar verbal skills among girls and their tendency to learn better by interacting with stories with toy construction sets. If successful, they could increase female interest in STEM education by tweaking and reframing gender stereotypes.
84. 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 partners with a smaller set of big buyers to solve they complex analytics problems. They found that customers need total solutions to increasing data issues. Pro - loyal and happy buyers. Con - not a large market Solutions selling is buying a packaged solution from a single seller, avoiding all separate decisions involved in a complex buying situation. Complex, difficult to implement and expensive
115. A companies' "Value proposition" is written to communicate Brand image to the "intended" target market. What are the key elements of a value prop?
Importance, distinction, superiority, affordability "Why should I buy your brand?" Key elements of a value prop is to give more value for a lower price
35. 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?
In the past two decades, the US population has shifted toward Sunbelt states; the West and South have grown while the Midwest and NorthEast have lost population. Americans also continue to move from rural to metropolitan areas, More Americans continue to move to suburbs and "micropolitan" areas. • Changes in where people live changes where/how they work. It does make a difference when considering a marketing plan
116. 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?
In the recent years the company has been trying to go beyond their current market of old cacausian males, It has crafted products and programs specifically designed to attract what it calls "out reach customers" They changed their bikes to appeal to more urban audiences and made them leaner, and they have conducted endless surveys, focus groups, and interpretive studies that plumb the depths of customers' feelings about their Harley's
73. Briefly describe Maslow's Hierarchy of Needs in relation to Consumer Marketing Insight.
Maslow's hierarchy of needs seeks to explain why people are driven by certain needs at certain times. From most pressing to least pressing: physiological, safety, social, esteem, and self-actualization. This hierarchy helps determine what predominantly motivates people to satisfy needs. People will not care about the higher tiers if the basic needs are not met so we must focus on the first needs before we can tackle the next need.
105. 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 focuses on targeting younger, caffeine-reliant dare-devils. They have implemented it through using social media sites and encouraging customers to use their product to "live life to the fullest" and "enjoy every moment." They are an international brand that emphasizes behavioral segmentation as many of their customers are EXTREMELY loyal
18. What is the difference between a Product-Oriented and a Marketing Oriented description of a company?
Product oriented descriptions say what a company does or creates, while marketing oriented descriptions are defined in terms of satisfying basic customer needs.
93. 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's CBD structure makes sure that everyone is taken care of. The article says they are treating customers as "strategic partners," which in effect is true, but more so this program lets them treat customers as family. Rather than focus solely on the sales of P&G products, P&G CBD team makes sure that the stores are selling as many products as they can-even if those are competitors' products. They are focusing on "mutually beneficial relationships" so they can both improve their sales and respective customer relations.
1. Provide a definition for "What is Marketing?"
Process by which companies engage consumers, build strong customer relationships and create customer value in order to capture value from customers
118. 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?
Some auto companies segment based on benefit (Luxury and performance). In the beverage market, companies use a loyalty status segmentation strategy to target loyal consumers and to make them into partners in building the brand. Some companies also target teens through universal teen themes, such as Coke's partnership with Spotify. Segmenting establishes an image of the company's personality, such as when a company segments the market based on lifestyle. Companies like Nike that target active consumers associate their brand with a lifestyle. The advantage is effectively targeting a profitable segment and the disadvantage is possibly losing other interested customers in other segments or depending too much on one segment.
42. What different groups or ideas are present in a "Marketing Information Systems"?
Takes information from the marketing environment and then develops a marketing information system in which it can be passed on to marketing managers and other information users in order to make decisions Internal Databases Marketing Intelligence Marketing research Assessing information needs/Analyze and use the information from internal databases, marketing intelligence, and market research to pass on to marketing managers
7. How does a "value proposition" help the working relationship in a marketing exchange?
• Customer satisfaction comes from how well a company delivers on its basic value prop and helps customers solve their buying problems, its the set of benefits or values it promises to deliver to consumers to satisfy their needs differentiating it from other brands; what makes their experience better / diff (cheap v. lux)
12. The new trend of "customer-generated marketing" has had a big impact on companies marketing plans and messaging. What is it?
• Customers play role in shaping their own brand experience and those of others. • Uninvited consumer to consumer exchanges in blogs, social media, etc. • Invited input, collect ideas from customers
67. How has WOM influence risen over the past several years? What is an "Opinion Leader"?
Word of mouth influence has increased recently due to the emergence of online social communities. • Opinion Leader- people within reference group who, because of special skills, knowledge, personality or other exert social influence over others
46. Name the four steps of Market research. Why is Step One most critical?
• Define the problem and research objectives-- guides entire process • Develop the research plan for collecting information • Implement the research plan and collect/ analyze data • Interpret and report findings
24. Before one can develop a good Marketing Strategy it is important to perform a "Situational Analysis. What are the key components in a SA?
• An SA describes the current business environment in which the company operates • Industry analysis, macro-level external environment, competitive environment/SWOT/Porter's/other models, internal environment, business objectives, leadership, vision, value proposition, social responsibility, market, financial health
80. Many things effect 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?
• Attitude of others: your decisions are shaped by the opinions of people important to you • Unexpected situational factors: Consumer may form purchase intention based on a factor, but unexpected events may change purchase intention. EX: economy might make a turn for the worse
44. Big Data often scares many consumers. Why is that? What can go wrong? What are the positives of having Big data systems available to companies?
• Big data can pose a threat to the privacy of consumers; gathered information can fall into the wrong hands or an be used in the wrong way • Positives: its a great source of data, gives a holistic view of consumer base
Pearson also says "Brand Essence" is everything. Why such a strong emphasis on this concept?
• Brand essence is the heart and soul of a brand; it is crucial because it is what makes consumers attracted or not attracted to a brand. It tells the customer how to think, feel, and act about the product. Without a brand essence you cannot have brand loyalty and your product simply becomes a need. You want it to be both a need and a want. How should the public perceive your brand?
40. "Social Media has gotten nasty". Give an example. Is this good or bad? Why? Should there be restrictions?
• Customer receives a damaged computer from FedEx, posts video of delivery man throwing the monitor • Good and bad; provides accountability to the firm, but can go to far and be somewhat unfair for them
20. ESPN is a part of the Disney Portfolio. How does it effect their business and their portfolio?
• Business Portfolio- collection of businesses and products that make up the company • ESPN Brand portfolio generates 10.6B revenue; sports advertising. ESPN must change their brands so that they align with the overarching Disney brand • ESPN has hit hard times because of: future of sports coverage, competition (politics and other networks), rising costs of sports rights, drop in viewership • Owning many companies is good news/bad news. Leveraged/dragged down; one bad company can hurt the parent.
86. What is a Buying Center? How do business use them and why is it important for marketing to understand the dynamics of the Process? Who are the participants?
• Buying Center: All of the individuals and units that play a role in the purchase decision making process • It is important to understand this process because within the process there are various ways in which this process can take place; it is far from fixed. Additionally, the business marketer must learn who participates in the decision, each participant's relative influence, and what evaluation criteria each decision participant uses • Participants: Users-must use product/service Influencers-provide information for evaluating alternative products Gatekeepers- control the flow of information to others Buyers- contact the selling organization and place the order Deciders- final authority to purchase
112. 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.
• COMPETITIVE ADVANTAGE: advantage over competitors gained by offering greater customer value either by having lower prices or providing more benefits that justify higher prices. Companies all want to be different on the market so that people have a reason to purchase from them. At IHOP you "come hungry leave happy." This positioning emphasizes two things: the food is good and the atmosphere will make you leave feeling happy. It is important to establish what value the customer will be receiving from the brand.
4. How does "marketing myopia" effect a sellers' ability to deliver value to their customers?
• Companies focus on specific product they offer rather than the benefits and experiences produced by these products. • Limits the seller's ability to create a brand experience; cannot adapt to changing environments
37. What are the changes seen for marketing because of "Environmentalism sustainability and social responsibility" as reflected in their branding and product development?
• Companies have realized that whats good for customer well-being and the planet can also be good for business • More efficient operations, less wasteful products are good for all so companies are trending toward this
9. How does Chick-Fil-A distinguish themselves from other QSR's?
• Consistent branding, employee involvement, corp. Culture, customer orientation, Role of service, better service than the competition
70. 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?
• Consumers don't just buy products, they buy the values and lifestyles those products represent. Certain lifestyle segments have needs that can be served through special products
51. In Non-Probability sampling what is the difference between Convenience, Judgment or quota samples?
• Convenience: selects easiest pop. • Judgement: researcher chooses pop. members who are good prospects for accurate information • Quota: researcher finds and interview number of people in each of several categories
30. The chapter talks about "Brand Essence". What is it and why is it vital for a company to understand it?
• Core essence: nucleus of the brand; who are you • Architecture: specific benefits the brand delivers; what do people buy • Positioning and Value Proposition: what motivates consumers with in competitive space; why do people buy your brand • Reputation: brands perceived ability to deliver value proposition; what do people say about your brand
28. 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: price • Differentiation: involves actually differentiating the firm's market offering to create superior customer value • Niche: finding small segment and pursuing it
64. Outline the factors that Influence Consumer Behavior and give examples.
• Cultural: children learn basic values, perceptions, wants and behaviors from family and other important institutions. EX: americans grow up exposed to freedom, hard work, etc. Programs attempt to cater to these • Social: small groups, social networks, family, social roles and status • Personal: occupation, age and status, economic situation, lifestyle, personality and self concept • Psychological: motivation, perception, learning and beliefs and attitudes
43. "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.
• Customer Insights: fresh marketing information-based understandings of customers and the marketplace that become the basis for creating customer value, engagement and relationships. Secondary data already exists, found in company's internal databases or bought from an external research firm. Cheaper and more accessible than primary data. Primary data is found through observational, experimental, or survey research. Can be found online, in focus groups, on the phone, mail, etc. Touchpoint analysis examines every contact between a customer and a company (purchases, support calls, site visits, etc.) Competitive intelligence- the systematic monitoring, collection, and analysis of publicly available information, aboue the consumers, competitors, and give it the greatest possible competitive advantage
13. "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: value of the entire stream of purchases a customer makes over a lifetime of patronages... • Losing the customer means losing a lot more than one purchase, NEED TO MAKE LIFETIME CUSTOMERS • Customer Equity: total combined customer lifetime values of all company's customers • Increase brand loyalty, increase CLV, increase CE
85. How does the corporate B2B buying process differ from the B2C process? What steps are different in each.
• Derived demand--business demand derives from the demand for consumer goods • Inelastic and more fluctuating demand--demand for business products is not much affected by price changes • Far fewer but far larger buyers; far more complex buying decisions, process is longer and more formalized A B2C process only involves recognizing a need, finding the right brand, and postpurchase behavior. It is a much simpler decision and evaluation process.
76. Why does "post-purchase dissonance" and "cognitive" dissonance occur to many buyers?
• Dissonance: purchase expectation does not match purchase reality • Cognitive dissonance: discomfort caused by postpurchase conflict • So many consumers experience dissonance because every purchase involves compromise
89. International Marketing Manners are important to practice and to understand. Why?
• Doing international business requires knowledge of customs and culture in order to form strong relationships
25. How were DuckDuckGo strategist going to take on the big guys like Google and Facebook? Why did they pick their strategy?
• DuckDuckGo was going to offer a unique customer benefit--privacy. Energizes its unique niche with brand personality and user community. • Knew they couldn't compete with Google and Facebook head-on; there was a subset of consumers disillusioned with the lack of privacy
91. Business to Business Social Media and Buying Process is rapidly changing. How is it being effected by the Internet and the Connected-world?
• E-procurement: online purchasing has grown rapidly in recent years; shaves transaction costs and increases efficiency Reverse auctions: put purchasing request online--suppliers bid Trading exchanges: companies work collectively to facilitate the trading process Company buying sites: post buying needs and invites bids, negotiates terms, and places orders B-to-B digital and social media marketing: uses these to engage business customers and manage customer relationships anywhere, anytime Targets individuals in businesses who affect buying decisions
5. Describe elements of Buffalo Wild Wings marketing strategy. What is the key to their success?
• Encourage guests to stay longer, create positions catering to customer experience, provide apps • They cater to the 20% who spend 80% of the money (The BDUB Experience)
62. Explain the difference between Exploratory Descriptive and Casual Research.
• Exploratory: gather preliminary information that will help define problem and suggest hypotheses • Descriptive: Marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of the consumer • Causal: test hypotheses about cause-and-effect relationships (ex:would tuition decrease lead to enrollment bump to cover it)
69. Why is it important to recognize the "Family" and current changes if you are in marketing?
• Family is the most important consumer buying organization in society. • The "modern family" composition and roles are changing. It is important to cater to the different familial roles
16. When might a business desire fewer customers over more customers in developing their marketing plans.
• Fewer loyal customers provide greater customer equity than a lot of unloyal customers, smaller high value customer base • Satisfy the 20% who spends 80% • Lexus wants lifetime Lexus drivers because they will spend a ton if they are loyal for life (Luxury Product)
34. What is "generational marketing" and what are the good points and bad points of this approach?
• Generational marketing is creating separate products and/or marketing programs for each generation • Bad: can put off one generation; defining people by birth date may be less effective segmentation than lifestyle, stage, values; • Good: Each generation spans decades and many socio-economic levels--you can capture a ton of value from one generation
104. Four examples of Segmentation are Geographic Demographic, Psychographic and Behavioral?
• Geographic: take region of the world/country and assume they will be attracted to a product for the sole reason of geography o Target offers smaller stores for urban neighborhoods • Demographic: age, life-cycle state, gender, income, occupation, education, religion, ethnicity, generation o McDonald's assigns brand managers to segments of different demographic groups (young adults, latinos, etc. • Psychographic: lifestyle, personality o psychologically, some people want to be part of a group; shape brand to appeal to this group o Anthropologie sells a lifestyle brand to which young women customers aspire • Behavioral: occasions, benefits, user status, usage rate, loyalty status o Starbucks pumpkin spice lattes during autumn; fitbit makes products to fit benefit preference of different segments
68. MOM as Brand Ambassador's programs have been very successful. What is the good news and bad news for a company to use this approach in their marketing?
• Good news: these brands get mostly good reviews from sources that people trust • Bad news: some people may not believe the reviews are credible since the moms are receiving benefits. Potential for a bad review that could do more damage than all the good reviews
10. In customer-engagement marketing why is there a shift of "marketing by intrusion" to "marketing by attraction".
• Greater consumer empowerment -- attract customers rather than interrupt them- Shift has been made due to social media, no longer viable to simply run a bunch of annoying and interrupting ads on tv or videos. now it's more of attracting people to your brand through engagement online, wanting active participation. feelings and messages that engage rather than interrupt consumers.
48. What is a "Focus Group" and why would you use one?
• Group interviewing of people with a trained moderator directing discussion. • Hopefully you bring out deeper feelings and thoughts Hear consumer ideas and opinions, observe facial expressions, body movements, group interplay, and conversational flows.
117. McDonald's does Segment and Target Marketing by dividing their customers into what kind of groupings and segments. Would you do it their way?
• Groupings and segments: different kinds of demographic groups (young adults, african american moms, young latino's, etc. (Happy Meals, southwest Chicken salad ect.) • Segment managers look for what compels his or her segment. Pass this information to creative team, who work this all together. • I think this could be problematic because it is difficult to shape a brand to be compelling to each segment
77. Many products are considered "Habitual- Buys". Compare that to a "Variety-seeking buying behavior" environment. What are the characteristics of each?
• Habitual: low consumer involvement and little significant brand difference. Table salt • Variety-seeking: low consumer involvement but significant perceived brand differences. Buying cookies--choose brand without much evaluation and then evaluate during consumption. Next time they may switch to another brand out of boredom. Consumers that exhibit this often do a lot of brand switching rather than those who buy the same brand out of habit.
88. How do Business Buyer Behaviors vary in their decision process and decision criteria?
• Heavily influenced by factors in economic environment--primary demand, economic outlook, cost of money • Supply of key materials • technological, political and competitive developments in environment • Culture and custom
39. Understanding Technological changes is vital for Marketers. Why and give an example?
• Improved technology allows for better, more precise marketing • EX: salesforce - Created CRM technology to better target consumers based on data
36. As the economy shift why is income distribution important to understand as income levels?
• Increased income distribution has led to a tiered market • Must pursue the correct target market income level. EX: Nordstrom--affluent; Dollar General--those with modest means
29. 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?
• Industry competitors (middle), buyers, substitutes, supplier, potential entrants • Shows the give and take by the various forces affecting an industry
81. 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.
• Innovators • Early adopters • Early mainstream • Late mainstream • Lagging adopters Five Stages of Product Adoption: Awareness, Interest (seeks interest), Evaluation, Trial, Adoption (purchase and continued use Want to target innovators and early adopters because they influence the later adopters
94. 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?
• Maintains product quality--quality assurance; upholds brand image of quality • Make suppliers meet rigorous standards and always have at least three at a time in case there are any issues in the supply chain
6. Provide a definition of key terms "a market" and "Marketing Management".
• Market: set of actual and potential buys of a product or service, sharing a particular want or need • Marketing Management: design strategies that will engage and target customers and build profitable relationships with them
102. What is "Market Segmentation" and why is it an important first step?
• Marketers realize that they cannot connect to all customers, at least not in the same way. Break customers up into "segments" • Market Segmentation: Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes
79. "Alternative Buying Evaluation" is an important process brand marketing teams must study. Why and what would one learn?
• Marketers should study buyers to find out how they actually evaluate brand alternatives; if they know what processes go on, they can take steps to influence the buyer's decision
14. What is "real-time" marketing and give an example of how advertisers are practicing it.
• Marketing during major media events such as Super Bowl, Grammys and Academy Awards • EX: Lights go out during superbowl -- Oreos tweets "you can still dunk in the dark" • EX: Lebron leg cramps, Gatorade says "our athletes don't get cramps" roasting Powerade
23. Define "Marketing Mix" and why is it important to a strategist to understand?
• Marketing mix: set of tactical marketing tools - product price, place, promotion - A strategist can blend these tools to produce the response they want in the target market
59. McDonald's Test Kitchen at Hamburger U developed many ideas for new products. What went wrong in their introduction with "Arch Deluxe" product line launch and what are the implications to market research?
• McDonald's tried to go upscale with a burger and tried to sell on taste; the company's customers don't go to the restaurant for these reasons. They didn't know what customers wanted so they didn't offer a product that appealed to customers. Shows that market research can get things wrong, must be thorough
107. 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- Market segments are large or profitable enough to serve • Differentiable- The segments are conceptually distinguishable and respond differently to different marketing mix elements and programs Actionable- marketing strategies on the segment have the potential to be effective
110. Because of change in technology and access how has "micromarketing" and "local marketing" become possible and more common? Is "Individual" or "hypertargeting" possible and good.
• Micromarketing: practice of tailoring products and marketing programs to suit the tastes of specific individuals and local customer segments; drives up marketing costs by reducing economies of scale; logistical problems • Technology allows firms to track locations and searches of individuals and suit offerings to their wants and needs • Individual marketing: tailoring products and marketing programs to the needs and preferences of individual customers o Detailed databases, robotic production and flexible manufacturing, and interactive technologies make this easier; possible but potentially expensive
31. Facebook founder Mark Zuckerberg often givens 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?
• Mission is to connect people on his network • Giving away stuff improves some people's ability to connect and is good press. Makes more people want to connect
97. How has the "Great Recession" effected marketing and what changes have come about?
• More sensible consumer spending; "value" has become the watchword
52. When using mechanical instruments for research what is biometric measuring and neuro-marketing?
• Neuro: use technology to track brain electrical activity--how consumers feel • Biometric: track heart and respiration rates, sweat levels, and facial and eye movement
109. Niche or concentrated marketing has great advantages. What is the good and bads consequences of picking it as your product strategy.
• Niche/concentrated marketing: firm goes after a large share of one or a few smaller segments or niches • Allows firm to achieve strong market position because of its greater knowledge of consumer needs in the niche it serves. More effective and efficient. Good for small companies • Increases risk. Companies that rely on one or a few segments for all business will suffer greatly if segment turns sour
32. Nike's "Risk Everything" campaign was very successful. What was their strategy and formula for success?
• Nike wanted to make people feel a certain way. At the end of the day, soccer unites us all. Everybody is just a kid playing out on the local field with their friends. Competition.
83. "Emotional Branding" to Moms had several key attributes identified to make an advertisement successful. What were some examples?
• Nirvana mom--everything is perfect • Sacrifice-- everything you've done for your kid • Commiseration-- being a mom is tough The Dad as stupid
113. 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.
• No frills, low costs; less-for-much-less value proposition • Cut some of the amenities of typical grocery stores (bags, SKU's, cart return employees, credit cards) to cut costs and, thereby, cut prices for consumers • High quality, basic grocery items, at very low cost
47. What are Observational research ethnographic research and experimental type research?
• Observational: gathering primary data by observing relevant people, actions and situations. EX: Trader Joe's evaluates potential store location by checking traffic patterns, competitor locations, etc. • Ethnographic: sending trained observers to watch and interact with consumers in their "natural environment". EX: Coors researchers my go to bars • Experimental: selecting matched groups of subjects, giving them different treatments, controlling related factors and checking for differences in responses. Best suited for gathering casual information
63. 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?
• Older, more affluent, better educated • Shapes their brand to show how their bikes stand for freedom, independence, power and authenticity. (Company has begun crafting products for other segments based on age, race, and gender. Their research has shown that customers are loyally attracted to brand's freedom, independence, power, and authenticity. They sell self-expression and lifestyles.)
38. Patagonia used the slogan "Conscious Consumption" and "Don't Buy this Jacket? What was their strategy?
• Patagonia was playing to their environmentally conscious message, which resonates with their target market (This campaign appealed to many of their consumers who dislike consumerism and capitalism) • Suggesting you only buy what you need. Customers are going to buy something no matter what so why not from a company they perceive as environmentally friendly?
15. 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?
• People find "value" in different things. • Changing economic environment → customers look for value for money → company's cater to this; Target "Expect More, Pay Less" • The key is to understand what value consumers look for and offer a value proposition that caters to it
Johnson and Johnson Co. are often praised for their handling of the Tylenol in 1982 (page 135 in Old Rules). What lessons can be learned from what they did?
• People thought there was an issue with Tylenol products; the company recalled all products of concern worldwide and did extensive testing to uphold the reputation of their brand. Didn't overreact and took necessary measures for consumer well-being
74. Is perception more important than reality in marketing? What makes a "Complex buying" process different?
• Perception: process by which people select, organize and interpret information to form a meaningful picture of the world (react to stimuli) • Yes, it is what people perceive, it determines how they make buying decisions • A complex buying process is different in that these consumers are highly involved in a purchase and perceive significant differences among brands. Marketers have to differentiate their brand's features and inform the buyer. consumers may be highly involved when the product is expensive, risky, purchased infrequently, and highly self-expressive.
120. How did the Four P's help Staples develop a new product and organize their stores?
• Prices: they keep prices of store brand products lower than name brands • Product: offer variety of office supplies • Promotion: Advertise how "easy" it is to shop at Staples; cater store to fill this need • Place: position products in store to reduce shopping time; position stores in high-traffic areas
90. Describe the steps in the typical B2B Buying Process. What is an RFP QA process and VPA (Performance Review).
• Problem recognition- Someone in the company recognizes a problem or need that can be met by acquiring a specific product or service. • General need description- Describes the characteristics and quantity of the needed item • Product specifications- Determines the best product characteristics (based on cost/durability/quality) • Supplier search- involves compiling a list of qualified suppliers to find the best vendors • (RFP- request for proposal) Proposal solicitation- is the process of requesting proposals from qualified suppliers A QA process is a quality assurance test to make sure the products meet all of the specifications and looks for any mistakes. • Supplier selection- is when the buying center creates a list of desired supplier attributes and negotiates with preferred suppliers for favorable terms and conditions • Order routine specification- The buyer writes the final order with the chosen suppliers, listing the technical specifications, quantity needed, expected time of delivery, return policies, and warranties • Performance review: May lead buyer to continue, modify or drop the arrangement (A performance review is when the buyer assessed the supplier and considers the future)
111. What is a "Product Positioning" map and what does it tell you about how a company wants to work with their target market?
• Product position: the way a product is defined by consumers on important attributes • Maps show the cosumer perceptions of brands versus those of competing brands on important buying decisions
8. What is the difference between the five concepts of "Production Product, Selling, Marketing and Societal Marketing" concept?
• Production: consumers care about available and affordable products → focus on improving production and distribution • Product: consumers care about product quality → focus on improving product continuously • Selling: Consumers will not buy products unless firm undertakes large scale promotion and selling efforts → focus on promotion and selling • Marketing: achieving goals depends on knowing needs and wants of market and delivering satisfaction better than competitors → focus on marketing • Societal Marketing: Marketing decisions should consider wants, company requirements, consumer long-run interest, society's interest →focus on consumer and societal interests longterm
19. 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?
• Relative market share vs. marketing growth rate • Question mark: High growth, low share • Dog: low growth, low share • Cash Cow: low growth, high share • Star: High growth, high share • Communicates the position of each of a company's SBU's (strategic business units), helping decide where to further invest funds
50. In Probability Sampling what is the difference between Random, Stratified or Cluster Sampling?
• SRS: every member of pop. has equal chance of selection • Stratified: pop. divided into mutually exclusive groups (like age), srs of each group • Cluster: population divided in groups (blocks) and takes a sample of groups and interview
66. How is "Social Class" measured in the United States? Is it an important distinction?
• Social Class: relatively permanent and ordered divisions whose members share values interests and behaviors. • Measured as a combination of income, occupation, education, and wealth • Important distinction because a single factor does not determine it
87. 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- buyers reorder something without any modifications; handled on a routine basis; to keep customers "in" suppliers try to maintain customer engagement and product/service quality • Modified rebuy- buyer wants to modify product specifications, prices, terms or suppliers; "in" suppliers become nervous and feel pressured to put best foot forward to protect an account • New task- company buying product or service for the first time. The greater the cost or risk, the large the number of decision participants and greater the company's efforts to collect information. Marketer's greatest opportunity and challenge
65. How does "subculture" play a role in understanding the Consumer? What is a Total Marketing Strategy?
• Subculture: nationalities, racial groups, geographic regions. These subcultures make up important market segments; marketers often design programs tailored to their needs • Total Marketing Strategy: practice of integrating ethnic themes and cross-cultural perspectives within their mainstream marketing. EX: cheerios commercials feature interracial families. Appeals to consumer similarities across segments rather than differences
98. What is a "Supplier Development" program like Cargill and McDonald's practices and why is it important tool to improve your business process.
• Systematic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials for use in making products or reselling them to others • Important in preventing low inventory or whatnot
103. "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?
• Target market: set of buyers who share common needs or characteristics that a company decides to serve • Target Marketing: identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each • So that they can focus on where they will make their money. Cannot appeal to all consumers in the same way; pick their battles
72. "Shinola" Products 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?
• The company developed a brand without knowing what their product would be. The brand is one that attempts to elicit a response by harkening back to real, authentic america. They effectively target its audience through durable products, American manufacturing, lifetime guarantees, and industrial feeling retail stores • Consequently, customers like their brand so they also like their products. High demand → can sell bikes for several thousand dollars
101. Dunkin donuts refreshed their Brand and Marketing Strategy recently. What does the Brand Essence and slogan "Noting too fancy - just meeting the everyday all-day needs of the Dunkin tribe" say about the company
• The company is not trying to compete with Starbucks on fanciness; they are trying to provide quality coffee at a low price. • Dependability; provide simple fare at reasonable prices to work-class customers
33. Why is it important to study the Micro and the Macro environment? Use FITBIT as an example.
• The interplay of these factors is essential to understanding a company's success or potential therefore • Macro: important to know they were at the right place at the right time; target market and sentiment; threats and obstacles • Micro: who sees value--needs or wants; product positioning...Micro: Fitbit studied the market for fitness tracking devices and realized that there was no great options for consumers. Macro: Fitbit realized that there was a growing fitness and wellness trend that many people were attracted to. Companies also sought to reduce healthcare costs and decided to purchase Fitbits to keep employees healthier.
78. 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.
• They learned that consumers have distinct opinions about the taste of their product and the texture of chips as well as the bag type. They made a chip that retained well-liked qualities of ritz and those of chips
58. 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?
• They learned that people liked the texture and color of white bread, but wanted to get more whole grains. • They made their new bread in a way that it looked and felt like white bread, all while containing more whole grains. • Additionally, the company marked their new product so that they emphasized it was still white bread
61. Campbell soup uses Big Data and analytics insights to do a "Deeper Dive" and read the consumer minds. What did they learn and how did it help their business?
• They learned what makes customers buy their soup: nostalgia. Changed their marketing to play to this emotion. Increased stagnating sales
108. What is an undifferentiated and differentiated marketing strategy?
• Undifferentiated/mass marketing: ignore market segment differences and target the whole market with one offer • Differentiated/segmented marketing: firm targets several market segments and designs separate offers for each
92. 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?
• Use of social media to create connections with business associates. Share research, information, plans, etc. with other scientists Use social media to tell compelling stories that bring the brand to life (Ex: Vine campaign) GE is sharing its brand story of its machines and innovative technology online. (Pinterest, Tumblr, Instagram to share the beauty of the companies innovative industrial products) It has several different industry-specific websites that provide info and customer service. They also use social media platforms to engage customers and shape brand content. (Ex: Vine campaign) (GE Blog called GE reports which features their research on sci-fi topics such as moon power ect)
22. What is a "Value Delivery Network"?
• Value Delivery Network: composed of the company, suppliers, distributors, and consumers who partner with each other to improve the performance of the entire system in delivering customer value
21. What is a "Value-Chain" Analysis? Why is it important to always perform one for a company?
• Value chain: series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products • To understand how the company creates value for its consumers
11. Why was the ALS Ice bucket challenge so successful?
• Viral campaign,Peer to peer marketing (The ability to nominate others), AIDA (attention, interest, decision, action), challenging others, internet, community
71. Marketing teams often add someone with Psychology Expertise in order to understand the consumer. Why is that role important and what do they study?
•Consumers often don't know or can't describe why they act as they do. Psychologists are hired to carry out motivation research that probe subconscious motivation underlying behaviors and emotions towards brands. • A person's buying choices are futher influenced by four major psychological factors: motivation, perception, learning and beliefs and attitudes