Marketing Test #1
What is a SWOT analysis and what can it reveal?
A SWOT covers Strengths Weaknesses Opportunities Threats Can show where the company should go and what are the road blocks
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:Increasing profits by reducing costs, while charging industry-average prices OR Increasing market share through charging lower prices, while still making a reasonable profit on each sale because you've reduced costs >Advantages:Access to the capital needed to invest in technology that will bring costs down, Very efficient logistics, A low-cost base (labor, materials, facilities), and a way of sustainably cutting costs below those of other competitors. >Disadvantages: not unique to you, and that other competitors copy your cost reduction strategies -Differentiation: making your products or services different from and more attractive than those of your competitors >Advantages:Good research, development and innovation, The ability to deliver high-quality products or services, Effective sales and marketing >Disadvantages:attack on several fronts by competitors pursuing Focus Differentiation strategies in different market segments, cut off many potential consumers -Niche: concentrate on particular niche markets and, by understanding the dynamics of that market and the unique needs of customers within it, develop uniquely low-cost or well-specified products for the market >Advantages: build strong brand loyalty amongst their customers, market segment less attractive to competitors >Disadvantages: organization is too small to serve a broader market, risk competing against better-resourced broad market companies' offerings
What are the changes seen for marketing because of "Environmentalism, sustainability and social responsibility" as reflected in their branding and product development?
-Environmentalism: market greener, more eco-friendly products. -Sustainability: Company goes above and beyond government regulations, actually improving the environment -Social Responsibility: give back to community/ outreach programs in HQ community
Nike's "Risk Everything" campaign was very successful. What was their strategy and formula for success?
-They had boys playing soccer turn into their favorite soccer players around the world for 2014 FIFA World Cup -risk everything is what it takes to carry on nation's hopes. -created #riskeverything -formula was consumer engagement and interaction
How does a "value proposition" help the working relationship in a marketing exchange?
-Value Proposition: Mutual Understanding, Alignment of Goals -Become a Part of the Ecosystem -Differentiate from Competitors as Partner, Co-developer, Ally -Maximizing Use of Products and Services, Development, R&D, Derivatives -Customization of Offerings, Advertising -Extending the Relationship, Being a Part of the Supply Chain (The VALUE CHAIN) -Profitable by Reducing Expenses and Being Focused, Less Negotiations
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?
-Value: Bundle of benefits a customer derives from a purchase that solves a need, want or desire -Value creation: adding value for a customer beyond an isolated transaction, working together - WIN - WIN -key to understand because it allows you to incorporate the most value in each product which makes it more desirable to the customer -gives customer most utility if company understand the value their products will offer
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?
-identified five forces that make up the competitive environment, and which can erode your profitability 1)Competitive Rivalry 2)Supplier Power 3)Buyer Power 4)Threat of Substitution 5)Threat of New Entry - the key sources of competitive pressure within an industry -By thinking about how each force affects you, and by identifying its strength and direction, you can quickly assess your position. -You can then look at what strategic changes you need to make to deliver long-term profit.
Netflix uses analytics to help improve customer satisfaction. What do they do?
-they tack and analyze heaps of customer data in excruciating detail -use big data insights to give customers exactly what they want by using this knowledge to fuel recommendations to subscribers -use real-time data (like ratings, searches, and plays) on member viewing behavior and sentiments -purchases customer data from Nielson, Facebook, Twitter, etc, -survey new customer on movie/tv preferences -ask existing customers to rate whatever they watch
The Marketing Process (1.1) has four steps in creating value. What are they?
1) Understand the marketplace and customer needs and wants 2) Design a customer-value driven market strategy 3) Construct an integrated marketing program that delivers superior value 4) Engage customers, build profitable relationships, and create customer delight STEPS RESULT IN CAPTURED VALUE FROM CUSTOMERS TO CREATE PROFITS AND CUSTOMER EQUITY
Why is it important to understand whether a customer's state of desire for an offering is either in "needs, wants or demands" state?
A Need: a need includes basic human necessities, such as the physical food, warmth, and safety, the social need for belonging/affection, and the individual need for knowledge and expression. A Want: are the form human needs take when formed by culture and individual personality. Need food, but want a Big Mac (America) diff in other cultures. In papua new guinea, need food but want taro, rice, yams, and pork. Shaped by ones society. A Demand: When wants are backed up by buying power. People demand products and services with benefits that add up to the most value and satisfaction.
Niche or concentrated marketing has great advantages. What is the good and bads consequences of picking it as your product strategy.
A firm goes after a large share of one or a few smaller segments or niches. Sells a specific product (i.e. socks) Pros: can market more effectively by fine tuning products and more efficiently because it has higher research on those they serve; lets smaller companies focus their resources, highly profitable Cons: low profit margins if their segment turns sour; higher risks with lower diversification
What is a "Positioning Statement" and why is it important?
A positioning statement is an expression of how a given product, service or brand fills a particular consumer need in a way that its competitors don't.
New Balance Targeting multiple
A ton of the price of the shoe goes into marketing 25-40 year old niche of people who want comfortable shoes and arch support. Don't go for the high leverage athletes like Nike "Endorsed by no-one"
Why does "post-purchase dissonance" and "cognitive" dissonance occur to many buyers?
After purchase the consumer will be either satisfied or unsatisfied with their purchase. Post purchase behavior is the stage of the buyer decision process in which consumers take further action after purchase based on their satisfaction or dissatisfaction. Cognitive dissonance: discomfort caused by postpurchase conflict Consumers start thinking start to feel uneasy of the things they are missing out and the benefits of other brands
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?
Although one may think that it was unwise of Facebook to give away technology for free, this actually goes along with their mission statement of wanting to create a more intimate and friendly environment that feels connected and welcoming to all. In fact, Facebook believes that in order for a product to reach its highest potential, many people need to weigh in on their opinions. In fact, they believe that "the best way to advance the technology is to work on it as a community." Finally, because Facebook is such a successful site, it gains most if not all of its significant profit through advertisements that pay Facebook to be displayed. Also, Facebook knows that because of the vast number of users their site has, it would be nearly impossible for a new startup to completely surpass or dominate them.
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: attitudes describe a person's relatively consistent evaluations, feelings, and tendencies towards an object or idea Marketers should focus on fitting their strategy into these attitude patterns rather than try to change the consumers attitudes
How does B2B Sales handle segmentation?
B2B sales focuses on what the other businesses needs to improve operations. For example, Starbucks is in the office place so they need coffees and teas that are easily accessible in the office rather than having to run to Starbucks to buy one-break rooms are perfect to target.
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?
B2B social media model, websites are engaging and get consumers excited about products. Using websites like vine or facebook or instagram
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 scares consumers as it feels like they are being watched. It very helpful but can also be an info overload, don't need more info just need better info. But they can get quick and timely consumer insights.
When using mechanical instruments for research, what is biometric measuring and neuro-marketing?
Biometric measuring: monitor heart rates, respiration rates, facial and eye movements Neuro-marketing: EEG and MRI technologies to track brain electrical activity to learn how consumers feel and respond.
The chapter talks about "Brand Essence". What is it and why is it vital for a company to understand it?
Brand essence is the core characteristic which defines a brand. It is an intangible attribute that separates your brand from your competition's brand by your audience. It is emotional and based on feelings. A brand essence is intangible for your audience, unique to your brand and, most importantly, reliable.
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 people involved in the buying decision Businesses must understand stimuli in the market (economic, tech, political, cultural, competition) and interpersonal and individual influences to decide the product or service, supplier, quantity ordered, delivery terms and times, service terms, and payment Players: 1) Initiators - perceive a problem or opportunity requiring a new product of service 2) Users -must use or work with the product or service 3) Influencers -provide information for evaluating alternative products or suppliers 4) Gatekeepers - control the flow of information to others 5) Buyers - actually contact the selling organization and place the order 6) Deciders - final authority to purchase 7) Controllers - determine the budget
"Alternative Buying Evaluation" is an important process brand marketing teams must study. Why and what would one learn?
By studying the alternative buying evaluation, marketers can understand how consumers actually evaluate brand alternatives so they can take steps to influence the buyer's decision
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?
Campbell's deeper dive research used biometrics to measure the emotional and hormonal response of customers to Campbell's products; they also went inside the homes of customers to see habits in the home. The strength to this method is to see what the customer might not necessarily know that they are feeling-what drives them to the product and what drives them away. Here, they could see that the emotion wasn't present in the store. They saw that the "see of red" cans actually deterred people from buying. It also encouraged them to add more "trendy" ingredients to their soup (broths, ginger). Traditional methods show trends, biometrics show emotions, and in-home research shows the desire for ease and ingredient necessities.
How does Chick-Fil-A distinguish themselves from other QSR's?
Chik-Fil-A distinguished themselves from other QSRs by focusing on the consumer experience. They keep their classic chicken sandwich and do not do gimmicks, they just make sure all their employees put the consumers first. Better before bigger Community first mentality
Questionnaires can be misleading when using open-ended or closed ended questions. Give an example.
Close ended: multiple choice or something with an answer already on the page Open ended: "describe...." customer has to give their own input
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.
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.
In Non-Probability sampling, what is the difference between Convenience, Judgment or quota samples?
Convenience: The researcher selects the easiest population members from which to obtain info Judgement Sample: The researcher uses his or her judgement to select population members who are good prospects for accurate info. Quota Sample: Researcher finds and interviews a prescribed number of people in each of several categories.
Outline the factors that Influence Consumer Behavior and give examples.
Cultural Factors -culture: the set of basic values, perceptions, wants and behaviors learned by a member of society from fame and other important institutions -subculture: many brands now target specific subcultures such as hispanics, african americans, and asian americans with marketing programs tailored to their specific needs and preferences -Social Class Social -groups and social networks -family -roles and status Personal -age and life-cycle stage -occupation -economic situation -lifestyle -personality and self-concept Psychological -motivation -perception -learning -beliefs and attitudes
"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: This is the total sales that a customer will generate throughout the lifetime Customer Equity: Total combined customer lifetime value of all of the companies current and potential customers.
How were DuckDuckGo strategist going to take on the big guys like Google and Facebook? Why did they pick their strategy?
DuckDuckGo's philosophy is not to directly compete with the large search engines, but rather provide a service that large firms do not: privacy. For users who do not wish to be tracked by Uncle Sam and have their data saved to a database, DuckDuckGo is the answer for them. Because of this privacy, DuckDuckGo appeals to the "privacy-minded users"
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.
Dunkin is not trying to outperform Starbucks or attract their customers. They still want to appeal to the average Joe (customers who "see through the hype" of Starbucks) but they also want to provide them with more options to eat through out the day. They aren't adding an environment, it is still grab&go, but they are making sure customers can get what they want from friendly people.
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 , businesses can connect with buyers and maintain relationships. They can hold reverse auctions where buyers put purchasing requests online and suppliers bid for the businesses; trading exchanges are where companies work collectively to facilitate the trading process; extranet links=buy inventory online B2B eprocurement shaves transaction costs and reduces time between purchase and delivery Social media marketing
"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?
Important to focus on a target so company can market efficiently. They save money by staying on target because they are advertising heavily to the group that will actually buy from them instead of investing heavy sums in a general populace who may never use their product.
Explain the difference between Exploratory, Descriptive and Casual Research.
Exploratory: Market research to gather preliminary information that will help define problems and suggest hypothesis Descriptive: Marketing Research to better describe marketing problems, situations, or markets, such as potential for a product or the demographics and attitudes of consumers. Casual: Marketing research to test hypotheses about cause and effect relationships.
Before one can develop a good Marketing Strategy, it is important to perform a "Situational Analysis. What are the key components in a SA?
Five key components of the organization's specific business environment are examined. These are customers, competitors, suppliers, and government and legal issues
What is a "Focus Group" and why would you use one?
Focus group is a group of 6-10 participants that engage in a study (Market research method wherein a company brings in a small amount of participants to learn more about their product and a moderator discussion.)
Define "Marketing Mix" and why is it important to a strategist to understand?
Four Ps Price Place Promotion Product
What is "generational marketing" and what are the good points and bad points of this approach?
Generational marketing is how companies understand and market to different generations EX: baby boomers have alot of wealth and want to feel like they are still young (sieze the day) EX: gen X is taking over the spots of the baby boomers, they feel like they have been in their shadow. "Never stop improving" EX: Millenials, large digital presence, not the wealthiest group but shows potential. Same w Gen Z (Gen Z more of a sensory overload though) Good because can market to certain generations but bad because splitting by generations is too broad, need to go deeper
Four examples of Segmentation are Geographic, Demographic, Psychographic and Behavioral?
Geographic: where do they live? (cities, rural areas) International or US customers? For example, in Orlando you're going to find more swimsuits in the Macy's than you would in Minnesota Demographic: gender (females have "softer" marketing style); age/life-cycle stage (don't make age assumptions, but rather address what life-cycle they might be at: starting a new family can occur at 25 or 35). Women's antiperspirant has more of a "soft on your skin-no harsh chemicals); whereas, a man's would say "for the tough work you need to do" Psychographic: Lifestyle. Are they looking for healthy foods? Bohemian feel? What's their personality? Panera emphasizes their "clean-eating" for the growing organics trend Behavioral: Divides people based on their reactions to the product. How loyal are they? How loyal may they become? I am not a loyal P&G user, but if I have a kid and start to use diapers, then P&G targeting me telling me to buy their product could make me a loyal customer in the years to come; benefits of the device: fitbit has many different tracking options
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 moms have a large following of loyal customers on social media and blogging sites where they share their experience with numerous people Bad news: the moms are not required to say anything positive so they could actually hurt the company if they had a bad experience or didnt like it
In customer-engagement marketing, why is there a shift of "marketing by intrusion" to "marketing by attraction".
Greater consumer power means that companies can no longer rely on marketing by intrusion. They must practice instead marketing by attraction. Hence, most marketers now combine their mass media marketing efforts with a rich mix of online, mobile, and social media marketing that promotes brand-consumer engagement, brand conversations, and brand advocacy among customers -Marketing by Attraction: creating market offerings and messages that engage consumers rather than interrupt them -Customer-Engagement Marketing: making the brand a meaningful part of consumers' conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences, and community
Many products are considered "Habitual-Buys". Compare that to a "Variety-seeking buying behavior" environment. What are the characteristics of each?
Habitual Buys: occur under conditions of low involvement and little significant brand difference Variety-seeking buys: situations characterized by low involvement but significant perceived brand differences
As the economy shift, why is income distribution important to understand as income levels?
Now there is a tiered market, rich richer, poor poorer, not a lot of middle class. Target one level usually. But some tailor to all levels, such as Ford w their different car offerings.
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 "More for more, more for the same, same for less, same for much less"
How do Business Buyer Behaviors vary in their decision process and decision criteria?
Influences: environmental (economy, supply conditions, tech); organizational (strategy, structure); interpersonal (influence, expertise, authority); individual (age, personality, preferences)
How should Marketing Departments and Public Relations' handle "crisis" situations?
It is imperative that Public Relations and Marketing work together as they are both the external representation of the company. If their missions do not align, then they are presenting the public with a fractured company image. A company must look as put-together in a crisis as possible to strengthen shareholder confidence
How is "Social Class" measured in the United States? Is it an important distinction?
It is measured as a combination of occupation, income, education, wealth, and other variables Yes because people within the same social class exhibit the same buying behavior Distinct product and brand preferences
What was the psychology that Patagonia used in their campaign of "Don't Buy this Jacket"? Do you think it was effective?
It was effective as they sold more coats, but they genuinely wanted to help people consume more consciously
6. Describe elements of Buffalo Wild Wings marketing strategy. What is the key to their success?
Key to BWW success; creating their brand experience, not just wings and beer. They want you to stay at the restaurant and create an environment thats fun to do so. They market towards that, people wanting to stay even longer than the game. With TVs and surrounding effects, make the restaurant feel like a mini stadium.
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?
Lifestyle is so important because it is more than just someone's social class or personality, but it captures the activites they like and interests they have, profiling their pattern of acting and interacting in the world
What different groups or ideas are present in a "Marketing Information Systems"?
MIS help managers use information to create customer value, engagement and stronger customer relationships. A MIS consists of people and procedures dedicated to assessing customer needs, developing the needed information, and helping decision makers use the information to generate and validate actionable customer and marketing insights. The MIS begins and ends with information users - marketing managers, internal and external partners and others who need marketing info and insights. Marketeers can obtain the needed information from internal data, marketing intelligence, and marketing research.
Measurable, Accessible, Substantial, Differentiable and Actionable are the five requirements for a segmentation exercise to be successful. Describe each characteristic features.
Measurable: can measure group's size, purchasing power, and profiles Accessible: Effectively reached and served Substantial: Profitable enough to warrant marketing efforts Differentiable: Distinguishable and responsive to targeted approaches Actionable: effective programs can be designed for each segment
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: The systematic design, collection, analysis and reporting of data relevant to a specific marketing situation facing an organization. - Market research gives marketers insights into customer motivations, purchase behavior, and satisfaction. It can help them to assess market potential and market share or measure the effectiveness of pricing, product, distribution, and promotion activities. Touchpoint Analysis: Due to the big data era, companies use this information to analyze "touch points" which include customer purchases, sales force contacts, serve and support calls, web and social media site visits, satisfaction surveys, credit and payment interactions, market research studies — every contact between a customer and a company. -unfortunately this data is usually scattered widely across the organization or buried deep in separate company databases. Primary Data: information collected for a specific purpose at hand -research approaches for gathering primary data include observations, surveys, and experiments Secondary Data: Information that already exists somewhere, having been collected for another purpose -company's internal database provides a good starting point, however companies can also buy secondary data from outside suppliers. In addition, using commercial online databases, marketing researchers can conduct their own searches of secondary data sources. Finally, internet search engines can able be a big help in locating relevant secondary information sources. Competitive Marketing Intelligence: The systematic monitoring, collection, and analysis of publicly available information about consumers, competitors, and developments in the marketing environment. -Marketing intelligence techniques range from observing consumers first hand to quizzing the company's own employees, benchmarking competitors products, online research, and monitoring social media buzz. Good marketing intelligence can help marketers gain insights into how consumers talk about and engage with their brands.
How does the corporate B2B buying process differ from the B2C process? What steps are different in each.
Market Structure and Demand: businesses are more insensitive to price changes; small increase in consumer demand=large increase in business demand; demand derived from consumers-have to sell other businesses to sell their products sometimes (i.e. Gorilla Glass) Nature of the Buying Unit: more decision participants Types of Decisions/Decision Process: businesses spend more money so the process is longer and more complex; B2B more dependency between businesses
Provide a definition of key terms "a market" and "Marketing Management".
Market: A market is the set of actual and potential buyers of a product or service Marketing Management: The art and science of choosing target markets and building profitable relationships with them.
How does an advertiser create "Behavioral Targeting"?
Marketers use online data to target ads towards specific consumers. In your amazon cart you put an ipad but don't buy it, you will get apple ads.
How does "marketing myopia" effect a sellers' ability to deliver value to their customers?
Marketing Myopia: is the fault of the seller when they become too focused on the specific products they offer and lose sight of the benefits and experiences of the product. They are so obsessed with their product they focus only on existing wants and lose sight of consumer needs. EX: think consumer needs a 4 in drill bit, they actually want a 4 in hole. BWW realizes this trap and gives the full experience
What is "Marketing Analytics" and why is it so important in developing a marketing strategy?
Marketing analytics are the tools and technologies and processes by which marketers dig out meaningful patterns in big data to gain customer insights and gauge marketing performance.
Why is it important to study the Micro and the Macro environment? Use FITBIT as an example.
Microenvironment: Acts close to the company that affect its ability to engage and serve customers (suppliers, the company, marketing intermediaries, competitors, publics, customers) -government publics: possible HIPPA violation -Local publics: communities using Fitbit as workplace incentive Competition: Apple and Google Macroenvironment: Societal changes (economy, nature, technology, politics, culture, demographics) -Tech: people know how to use it -Economic value: people are looking for things with high economic value today
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: tailoring products and marketing programs to the needs and wants of the specific individuals (mix of local and individual marketing) Technology such as Facebook ads targets individuals specifically based on previous searches There is a privacy issue associated with individual marketing, but it does put exactly what the customer wants in front of their faces
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 focus on marketing to the 20% of their consumer base known as their DEWmocracy.
What are the five steps in the Buyer Decision process?
Need recognition Information search Evaluation of alternatives Purchase decision Postpurchase behavior
What are Observational research, ethnographic research and experimental type research?
Observational Research: gathering primary data by observing relevant people, actions, and situations. Ethnographic Research: Sending out observers to watch and interact with consumers in their natural environments Experimental Type Research: selecting matched groups of subjects, giving them diff stuff, controlling unrelated factors and checking for diff in responses.
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
Patagonia used the slogan "Conscious Consumption" and "Don't Buy this Jacket? What was their strategy?
Patagonia is working towards helping the environment, as every jacket has a large environmental impact to produce. They are trying to get consumers to consume rationally consume in their everyday lives. While they did sell a lot of jackets after this campaign, the intention behind the slogan was sincere.
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?
People were still interested in the taste and texture of white bread, however, also wanted the health benefits of the wheat bread.
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?
Portfolio Analysis: management evaluates all the products and business of a company and how they work together SBU (strategic business units) Growth Share matrix: vertical axis-attractiveness of product, horizontal- measure of company's strength in market. Stars: High growth, high share. Eventually turn into cash cows when growth slows Cash Cows: low growth, high-share businesses or products. Question Marks: Low business share in high growth markets Dogs: low growth low market share
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?
Positioning Autos: - Consumers see Cadillac Escalade as moderately priced, with balance of luxury and performance. - Range Rover and Land Cruiser used to be seen back in the day as an off roading vehicle for adventure. Recently, they have retained this standing yet with a luxury aspect added.
Describe the steps in the typical B2B Buying Process. What is an RFP, QA process and VPA (Performance Review).
Problem recognition (what's the problem?), general need description (write up problem), product specification (cost reduction analysis--how to get cheapest prices), supplier search (best vendors), proposal solicitation (buyer invites suppliers to submit proposals), supplier selection (list all suppliers with service quality, reputation, on-time delivery, ethics, communication, and prices), order-routine (tell supplier quantity, deadlines, return policies, and warranties), performance review (review supplier performance) RFP: request for proposal (proposal solicitation) QA process: Quality assurance process, making sure there are no inventory defects and problems--supplier selection VPA: visual performance review
What is the difference between a Product-Oriented and a Marketing Oriented description of a company? (Examples)
Product Oriented: Chipotle- We sell Mexican Food Marketing Oriented: Chipotle- We serve food w "integrity" with a commitment towards the long-term welfare of customers and environment. Home depot: we empower customers to chase their dreams.
What is a "Product Positioning" map and what does it tell you about how a company wants to work with their target market?
Product positioning map is a conceptual map that graphs consumer perceptions of brands versus those of competing products on important buying dimensions such as luxury v performance (i.e. ruggedness) It shows how the company wants the public to view them versus how the public actually does
What is the difference between the five concepts of "Production, Product, Selling, Marketing and Societal Marketing" concept?
Production concept: Consumers will favor products that are easily accessible and highly affordable Product concept: Consumers will favor a product that is high quality and is innovative Selling Concept: Consumers will not buy products unless company spends a lot of marketing campaigns. -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 consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests
In Probability Sampling, what is the difference between Random, Stratified or Cluster Sampling?
Random: Everyone in the population has an equal chance of being selected Stratified: Population divided into exclusive groups, people selected at random from those groups Cluster Sampling: Population divided into mutually exclusive groups, researcher selects a sample of the groups to interview
What is "real-time" marketing and give an example of how advertisers are practicing it.
Real time marketing is making a marketing strategy around up to date events EX: Superbowl blackout-Oreo tweets, you can still dunk in the dark. Wildly popular. Every time Iphone comes out-Samsung is constantly tweeting stuff out
Ordering and wording can skew a questionnaire. How does it do that?
Researchers should care about the wording and ordering of the questions. They should use simple, direct and biased wording. Questions should be arranged in 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.
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.
Segment market differently, have great produce but super low prices Only open during peak shopping hours. Cut a lot of costs Smaller packages- EX chip bag without air Cut alot of labor costs
What is "Market Segmentation" and why is it an important first step?
Segment markets into consumer pools so you can market to them better and more effectively. Helps companies understand who their consumers are, and how to get more.
Why was the ALS Ice bucket challenge so successful?
Saw celebrities do it, free marketing, worldwide trend, for a good cause (Social Pressure), easy to do. 0 Dollars spent on marketing AIDA: Attention, interest, decision, action.
How has the "Great Recession" effected marketing and what changes have come about?
Since the GR, people have become more sensible and "value" has become a big watch word. Buying less looking for more value. "value marketing" Luxury items do not sell as much
What is the "Starbucks Experience" and how has it helped their company to grow?
Starbucks made itself different by being a third home. Away from the office away from home. They want to make everyones life better, one moment, one human being, one cup of coffee at a time. They lost sight of their brand image when they started growing really fast They don't just want to be profitable and big, they want to engage their customers in a meaningful way.
Understanding Technological changes is vital for Marketers. Why and give an example?
Stay ahead of the curve, making it easier and more convenient for the consumer. For example, a Disney has a bracelet you wear it has a chip in it and you pay for stuff just by scanning (RFID) tech.
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: buyer reorders something without modifications-Maintain old customer relationships through quality and ease Modified rebuy: buyer wants to modify product specifications, prices, terms, or suppliers-supplier become nervous to put best foot forward whereas receiving B just wants high quality New Task Buy: B buying a product or service for the first time; marketer wants to reach these groups, but it also is risky to spend money trying to get them and not get sales
How does "subculture" play a role in understanding the Consumer? What is a Total Marketing Strategy?
Subcultures are small groups within a culture (nationalities, religion, race) Hispanic Americans can be broken down into age, income, nationality(costa rican, Argentinian, Mexican) Older hispanics are more brand loyal while younger are more price sensitive African Americans are heavy users of digital and social media and motivated by quality and selection Asian Americans can be seperated into groups such as Korean, philipino, Vietnamese They shop frequently and are brand loyal 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
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?
Target made some of its customers very uneasy whit it used their buying histories to figure out that they had a baby on the way, including eerily accurate estimates of child gender and due date
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 psychologists can determine the motives behind consumer needs and wants. These psychologists study motivation research that probes subconscious motivations underlying consumer emotions and behaviors towards brands
What are the 8 elements in a Marketing plan?
The 8 elements are: Executive summary Current marketing situation Threats and opportunities analysis Objectives and issues Marketing Strategy Action Programs Budgets Controls
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?
The Arch Deluxe was a hamburger sold by the international fast food restaurant chain McDonald's in 1996 and marketed specifically to adults. It was soon discontinued after failing to become popular despite a massive marketing campaign and now is considered one of the most expensive flops of all time. Dont want to show kids disliking the burger and parents liking it.
Why is it important to recognize the "Family" and current changes if you are in marketing?
The Family lifestyle has changed throughout time from the traditional family where the mother cooks, shops, and cleans, to now shifting towards the father doing that type of work Marketers need to shift there strategies based on the father being more involved in the shopping Children and teens also have a huge say in the family decisions
What is the advantage of a Social Media Center?
The advantages of these command centers are that they can provide information with what the consumers are saying about the specific company's products and thus be able to gage how to change their product, marketing strategy or advertising. If a consumer responds well to a product, the company will be sure to continue their marketing platform in a similar way. On the contrary, and probably more common and possibly even more beneficial would be the converse of this situation. Often when people are outraged with a product or service, they will turn to social media. Angry posts, videos and pictures regarding a company can be put on the internet in a matter of seconds and quickly these can be viewed by thousands of people. This can be detrimental to a company. By having these command centers, the producer can sift through these potential threats towards their business and address the situation in ways in which they feel fit. The customer is always right and thus we must please them to continue getting their business. We must make sure to address a situation if we feel as if it is severe and do whatever means necessary and ethical to make sure this customer is happy.
Name the four steps of Market research. Why is Step One most critical?
The four steps of market research: 1) Defining the problem and research objectives. The first step is probably the most difficult but also the most important one because it guides the entire research process. It is frustrating and costly to reach the end of an expensive respect project only to lean that you've missed the wrong problem. 2) Developing the research plan and collecting the information 3) Implementing the research plan— collecting and analyzing the data 4) Interpreting and reporting the findings
What is a "Supplier Development" program like Cargill and McDonald's practices and why is it important tool to improve your business process.
The stage of the business buying process in which the buyer reviews proposals and selects a supplier or suppliers based on the proposal submissions Cargill provides their customers with research on the trends in the market to assist them with selling. Important in showing the customer that you care that they go on to sell your inventory. Its a continued relationship. EX: Notre Dame and Under Armour (B2B). They send reps to campus and and then these reps work with players on the team to make cool uniforms. Develop a relationship, important for both sides.
"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?
They pride themselves on making their products completely American made, which draws attention from consumers who love their country The stores are also coffee shops and have events like whiskey tastings Have a lifetime guarentee and focus on the gritty American attitude
ESPN is a part of the Disney Portfolio. How does it effect their business and their portfolio?
They were saying a lot of controversial things on air but when disney acquired them they had to clean up the act to fit the Disney brand
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?
This is because their product is a commodity that cannot really be different from everyone else, and there is such a fine line where consumers really demand fresh products and if they do not have fresh ones one time they can easily switch.
What is a "Value Delivery Network"?
This is the network of suppliers, producers, retail stores, marketing, service that create consumer value.
Customer Relationship Management relies on good measurement of "Touchpoints". What is a Touchpoint Analysis and what does one discover from a TPA?
Touchpoint Analysis- recording every contact of consumer with company, purchases, social media site visits, surveys, payment interactions. Creates a higher level of consumer understanding and better relationships
What is an undifferentiated and differentiated marketing strategy?
Undifferentiated: mass marketing--go after whole market Differentiated: segmented marketing--picking a very specific group
What is a "Value-Chain" Analysis? Why is it important to always perform one for a company?
Value-Chain Analysis is a analysis of the company where every segment is treated as a chain, and the company is only as strong as the weakest chain, how effective are all the segments at working together and marketing.
"Social Media has gotten nasty". Give an example. Why? Should there be restrictions?
When experiences go badly consumers go right to social media. Example, FedEx guy throwing packages. This hurts companies business because a bad review often weighs more strongly with a customer/deters more business than a good review.
When might a business desire fewer customers over more customers in developing their marketing plans.
When marketing to high leverage clients, for example luxury brands. Limited production so few clients Easier to have few relationships w high leverage clients then a lot w a little.
The new trend of "customer-generated marketing" has had a big impact on companies marketing plans and messaging. What is it?
Which consumers actually play a role in shaping their own brand experiences and those of others (Mountain Dew) Companies looking to consumers for ideas gets them involved with the brand
How has WOM influence risen over the past several years? What is an "Opinion Leader"?
Word of mouth - customers tend to trust family and friends more than ads or salespeople. WOM happens naturally but marketers can help create positive conversations Opinion leader- a person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others
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?
Yes -need to consider where people are relative to there products/ads -move towards telecommunications such as online ads and apps -understand different demand from different geographic locations
Is perception more important than reality in marketing? What makes a "Complex buying" process different?
Yes because what the consumer perceives is what drives their decisions Complex buying behavior is the behavior of consumers when buying in situations characterized by high consumer involvement in a purchase and significant perceived differences among brands
McDonald's does Segment and Target Marketing by dividing their customers into what kind of groupings and segments. Would you do it their way?
Yes, they make ads focused on different groups of people that provoke different emotional responses, ex: Southwest Salad
International Marketing Manners are important to practice and to understand. Why?
You do not want to lose a business deal over being rude to a customer, even if you don't think it's rude. For example, don't take your coat off in a business meeting with Russians, don't give the Chinese clocks as a gift, and don't call a Frenchman by his first name
How does "Behavioral segmentation" help improve customer loyalty or "occasion" shopping on holiday's or "Benefits" segment?
behavioral segmentation is a marketing strategy based on actual consumer buying behavior. It divides the market into groups of customers according to their knowledge of, attitude towards, use of or response to a product.
"Emotional Branding" to Moms had several key attributes identified to make an advertisement successful. What were some examples?
emotional branding of safety was an example as well as the brand of saving money
Provide a definition for "What is Marketing?"
the process by which companies engage customers, build stronger relationships, and create customer value in order to capture value from customers in return