MKT 3401 exam 1 (Karam)
key components of confidence are that you are able to control, manage, and camouflage your___________
nervousness
specialty
niche store, more luxurious, higher prices
levels of involvement
Routine Limited extensive
3 strategies to rebrand (motel 6)
(re)position- make the hotel a safe, fun, and enjoyable place affiliation-who uses the same product you use? Who goes to the same places you go? Personality-"voice of motel 6 advertisement"
3 types of presenters
- Showrunner - Neophyte - Artists
3 concepts that make up societal orientation
-marketing orientation, while keeping our environment and society safe -being environmentally friendly -public awareness
The 3 goals of marketing orientation
-satisfying the customer's needs and wants by giving them a product that they desire -getting to know the customer -understanding the customer
Levels of the Marketing Strategy Framework
1. Market Analysis 2. Strategy Development 3. Implementation
What companies look for when hiring?
1. interpersonal & communication skills 2. teamwork 3. honesty 4. core competency
Consumer Decision Making Process
1. need recognition 2. information search 3. evaluation of alternatives 4. purchase 5. post purchase behavior
in _______ seconds, you can predict with ________% accuracy who someone one is as though you listened for an hour
10 70%
NFL guest tackled your kids the viewership of fans over 55
30%
What percent of the emotional impact that you have is judged according to your voice and vocal delivery?
38%
How much of the emotional impact you have is visual delivery?
55%
What percent of customers are likely to change their behavior based on one encounter?
63%
What percent of people actually tell a service person after a bad experience?
7%
What percentage is judged according to the verbal arrangement of your message?
7%
McDonalds healthy eating campaign increased sales by __ percent and it ____ the brand
7%; repaired
What percent of customers are more likely to buy from a company involved in caused marketing than a competitor that is not?
76%
What percent of people will tell at least one person if they have a bad experience with a product?
77%
personal branding
= performance + personality + visibility + trust
credibility
=knowledge + confidence + connection
networking
A way of making and using contacts to get job information and advice
Demographic Pepsi?
African American
Cognitive dissonance- reason for labeling
Alleviate cognitive dissonance - Seek approval form someone else - Attributes that made the product good (label)
2 types of unsatisfied customers
Angry- lets you know how they feel remorseful-doesn't say anything, smiles, then bad mouths the place
2 types of service failure
Ante--everyday good service that you expect Moment of Truth--terrible moment happens, your chance to make it right
What flight company spent lots of money to improve customer satisfaction to make up for overbooking flights. As long as you know you have failed, you can do something to recover.
Delta airlines
What is the service profit chain?
Employee Job Satisfaction->Creates Customer Value->Creates Customer Satisfaction->Generate Loyalty->Profit
ON TEST
In your attempt to persuade, you have to make sure you don't ever offend the person. Offense usually takes place after they say yes
step 3: Evaluating Alternatives
Involves determining the value or adequacy of the alternatives that were generated
be smart
Knowing how to think, represent a company, be a great member of an organization, make good decisions, can you manage people
What is prestige pricing?
Pricing something extremely high to set it apart from the competition
What are the four factors of the marketing mix?
Product, Price, Place, Promotion
Step 1: Need Recognition
The first stage of the buyer decision process, in which the consumer recognizes a problem or need
Strategy development: segmentation
o Can it be identified? o Is the population accessible? distribution (can I get the product to them?) promotion (Can I get the message to them?) substantial (Is the population big enough?) responsive (Will they be responsive to your message?)
developing and maintaining relationships is what?
relationship maintenance
Service after the sale
repair after the warranty
marketing mix is not equal to the ___________ mix
retail
3 levels of buyer involvement in purchases
routine moderate extensive
unique selling proposition
separate your product from the clutter (other products). Believable, desirable, advertising appeal that is going to separate your company and product from the competition
What are some of the key concepts of customer satisfaction?
service quality delivery
service encounter failure
service of the delivery is terrible; rude, distant, lacking knowledge
Price skimming
set the price as high as you can, within fairness, as long as you can until the competition catches up with you forcing you to adjust it
Status quo
set the price even with the competition
Penetration pricing refers to
setting a low initial price on a new product to appeal immediately to the mass market
Price skimming is ____
setting the price as high as you can within range until the competition catches up to you and forces you to lower it
What are the Conditions in the market analysis (external factors)
social factors lifestyles values of the day technological factors political/legal changes economic factors
What external environment did Samsonite luggage company respond to after 9/11?
societal
step 2: information search
the stage of the buyer decision process in which the consumer is motivated to search for more information · Bigger the risk, the bigger level of involvement (time and effort spent in evaluating)
shopping
don't just run in and buy it; more involvement/greater price
switch
don't like something so you switch to a different company
key to customer satisfaction
employee satisfaction. If the employee is satisfied, then usually you'll get good satisfaction
internal search
experience is so rich that you use this experience to make a decision
evoked set
extract from your list of considerations to finally make a decision EX: deciding what school to attend
lesson learned in "united breaks guitar" study; implement a __________ plan
failure/recovery
True or false: Retail Mix is the same as Marketing Mix
false
marketing strategy framework
framework for how you process "how do I market this new product that I have"
external search
gather information from: - family and friends - opinion leaders- drawn to the way they live and you may follow what they do - celebrity endorsers - commercials--biased - public--unbiased; consumer reports
focus group
group of people who have used the product. Give them a questionnaire to get their opinion on the product
bundling is
grouping two or more products together and pricing them as a unit
strategy development: positioning
how do you want people to see you or your company o Attributes o Benefits o Value
packaging
how the package looks and is packaged
the 3 objectives of Brands
identification, repeat sales, introduce new products
brand (3 objectives)
identification- way to be able to have your product seen repeat sales- like the product, you buy it again and again EX: toms shoes introduce new products- if the brand is good and selling you can introduce new products
2 purposes of product packaging label
informative - instructions- tells how to use the product. Can generate enormous revenue for the product - construction- how is it made and what is the product made of? - nutrition- what is the nutritional value? - Reduce cognitive dissonance (buyer's remorse) Persuausive - Persuasive in working, color, phrase EX: "25% off" ,"reduced salt"
buzz marketing: ethical concern
intent is to share truthfulness. Unethical: the company puts the product in the hands of opinion leaders and bribes them for good reviews via word of mouth
Southwest competition, flights get caught in an ice storm and losing brand damaged ________
jet blue
What was the external environment responsible for the surge in the production of car seats?
legal issues
unsought
life insurance, 401K, health insurance, hearing aids
According to Kenneth Feinberg, what is very important?
listening
penetration pricing
lower the price because you are trying to get your product out there, gain penetration into the market place, grab market share
developing and maintaining long-term relationships is
maintaining contact
Sustainability
making sure we keep this atmosphere, earth good and clean
What are the 3 levels of the marketing Strategy framework?
market analysis, strategy, development, implementation
What are the 4 main points made by John Camp in order to have success?
market yourself sell yourself networking maintain contact (follow up)
components of targeting
mass marketing mult-segmented niche positioning
What are 2 important relationships that need to be maintained?
media and community
What did Wrigley's gum put in it to make it different?
caffeine
buzz marketing
concept some companies use when introducing a new product. When they take the product and put it in the hands of a predetermined group of opinion leaders for the purpose of them using the product and hopefully spreading good work of mouth.
3 results of good customer service
referrals reduced effort to sell premium pricing
What are the 4 steps to Market Analysis?
Company Competition Customer Conditions
strategy development: targeting (3 strategies)
Mass (undifferentiated) market- one message appeals to everyone Multi-segmentation- multiple segments within a population Niche- one concentrated segment that you feel you can give someone something special with great value
What are the 5 steps in the Consumer Decision Making Process
Need recognition Information search Evaluate alternative Purchase Post Purchase behavior
separated the company into 2 without customers knowing, raised prices, & joined companies again
Netflix CEO, Hasting
What are the three objectives of brands?
New product Identification Loyalty (REPEAT SALES)
what are the components of a product
Packaging, warranty, service after sell, brand/company's image
What role do instructions play in the game of monopoly?
Parker Brothers figured out that people did not like board games because they were confusing -They developed and packaged simple instructions for the game of Monopoly that made it easy to play and now it is the most popular board game in history
What type of "aggression" do companies want you to have?
Persist in finding a solution even after rejection
Promotional includes advertising, public relations, sales promotions and _____
Personal selling
What were the 3 steps for rebranding motel 6?
Positioning, Affiliation, and Personality
price strategy
Price Skimming Penetration Pricing Status Quo Pricing
The ___________ company used labeling to promote nutritional value to become a leader in the industry
Progresso
2 types of credibility
Resume and Authenticity
Level 2: Strategy Development
Segmentation Targeting Positioning
teamwork
Thrown into a group and complete the task at hand
3 societal organizations are considered eco-friendly
Wal-Mart Patagonia TOMS
persuasion scale
____-3___-2____-1______0_____+1_____+2_____+3____ · Lost people ------------------------Loyal
step 4: purchase
action taken
4 parts of the promotional mix
advertising public relations sales promotions personal selling
What are the two types of unsatisfied customers?
angry and remorseful
5 traits to help market yourself
be creative be aggressive be enthusiastic be smart be honest
What are Traits of Success?
be creative, aggressive, enthusiastic, smart, honest
#1 killer of personal brand
being boring or arrogant
persuasion
conscious attempt to modify the thoughts and behavior of you, the consumer, and move you toward a pre-determined goal
Persuasion
conscious attempt to modify the thoughts and behavior/action of a consumer and influence them towards a predetermined goal
functions of packaging
contain and protect the product theftage: (theft+storage) - Shrinkage-people inside the organization that steals - Theft-people who walk in and steal recycle promote product - label - tells you what you are getting as a customer size color smell sound
people recall more from listening to people they view as more ________
credible
what type of "enthusiasm" does a company NOT want you to have? don't wear down the _____ of a company
culture
customers switch because of ______ more than anything else
customer service
the main focus of Delta airlines training was to improve __________
customer service
What 3 goals does the marketing department seek to achieve?
customer value, customer satisfaction, develop and maintain relationships with customers
public relations
dealing with integrity with a variety of mediums to create a positive image or correct a negative one
Market analysis: external conditions
demographics-how we view customers social factors Lifestyles- trends · Activities of consumers · Interests of consumers · Opinions of consumers values of the day - ex: competitive suitcase designs convenient for flyers technological factors political/legal changes o See and adapt to changes to be successful economic factors o How does everything change when the economy changes (finance homes, deals on cars, sales at stores)
What happened when the guitar man came up with a song about airlines being uncaring, went viral?
did not resolve a service failure
Level 1: Market analysis (4 steps)
o Company- who are we, what do we do, what can we do, what do we want to do o Competition- must know who the competition is, what they are doing, must be ready for them o Customer-know whom the customer is or going to be. Who is your target market? o Conditions (external)-what is taking place around all of this. As the conditions change am I able to adapt my product to these changes
be aggressive
o Don't be rude or mean. When they tell you "no", you have to be able to say "ok" and try something else. o Be able to recover and think of another way to accomplish what you need to accomplish
interpersonal and communication skills
o Everything you do- in line, in public, or if someone hears you o This includes tone o Killer B's § Boredom- same old thing you hear people repeat over and over again § Bitterness- breath you take that you shouldn't have taken, the sound or grunt you made when you shouldn't have and that defines you (What, Huh, No)
to enthusiastic
o Ex: attorneys offices are very intense o This means you can't hire people that would weigh down the organization and be a drag. You want a good company culture
buyer perspective
o Product o Cost o Convenience o Communication
4 factors of implementation
o Product (service) o Price o Place/distribution o Promotion
be honest
o This means more to a company than power o Are you going to be honest enough to do your job without jeopardizing the name of the company and your and your company's reputation
celebrity endorsements
o boost sales o change perception
market yourself
o how do you find the right person to talk to and say the right things to get them to pay attention to you. o What value can you create for that person to hire you or buy what you're selling
Lost v. Loyal
o time o logical appeal- proof and information. How clearly can I present it and persuade a buyer? o Emotion o Ethical appeal-credibility
____denotes a bargain while _____ denotes high quality
odd numbers; even numbers
prospect theory
only remember the bad things that happen instead of the good
key to buzz marketing
opinion leaders must give a good review by word of mouth.
What does retail mix add to the 4 P's
people
winner = ________ + _________ + _________ + __________
personality performance visibility trust
The heart and soul of a business is being a good ______.
presenter
What is buyer perspective based upon?
product, cost, convience, communication
What are the 4 parts to the Marketing Management Philosophy?
production orientation, sales orientation, marketing orientation, societal orientation
Sales Orientation
putting together a skilled sales force for the purpose of selling a product "tell and sell"
Strategy market identifies the ______ and asks questions about effective segmentation
target audience
credibility
the believability you have when talking to other people
production orientation
they don't care about the customer, consumer, or people; only care about making the product the best they can
Why is it important that you are honest?
they have to trust that you aren't going to take advantage of the company
"in 10 seconds of an hour presentation, people's personalities were determined with 70% accuracy":This is known as the ___ ____ theory
thin slice
be creative
think about how to get things to work- think of another plan or route to get people to listen
What is the most important component of vocal delievery?
tone of voice
True or False: Strategy Development Identifies the target market and asks questions about criteria for effective segmentation, segmentation marketing, positioning
true
True or false: 4 factors of the marketing mix are product, price, place/distribution, and promotional (the 4 P's)
true
true or false: 63% of customers are more likely to change a purchase behavior based on the indifference/behavior of one person--ex. cashier at Walmart
true
true or false: 7% of people who have a bad experience will tell a service person
true
true or false: 77% of people who have a bad experience will tell at least one person about it (according to Wharton business school)
true
true or false: Customer satisfaction = employee satisfaction
true
true or false: Hard Rock was a fragmented brand
true
true or false: Kashi is more popular and expensive because it is promoted as a healthy cereal, but what people don't realize is that it's owned by Kellog's
true
true or false: Price skimming is setting the price as high as you can, within fairness, as long as you can until the competition catches up with you forcing you to adjust it
true
true or false: Retail Mix adds presentation to the 4 P's
true
true or false: Retail Mix is a product, price, place, promotional, and presentation
true
true or false: The 5 steps in the Consumer Decision Making Process is need recognition, information search, evaluate alternative, purchase, post purchase behavior
true
true or false: buyer perspective covers depends on the product, cost, convenience, and communication
true
true or false: customer satisfaction leads to referrals, increase in usage, reduce selling effort, premium pricing
true
true or false: odd numbers denote bargain, even numbers denote high quality
true
true or false: penetration pricing means lower the price because you are trying to get your product out there, gain penetration into the market place, grab market share
true
true or false: prestige is pricing something extremely high to separate it from competition
true
true or false: promotional covers advertising, public relations, sales promotions, and personal selling
true
true or false: the 3 objectives of brands are; identification, repeat sales, & introduce new products
true
true or false: the 3 steps for rebranding for motel 6 were positioning, affiliation, and personality
true
What are the 3 elements that can improve your "credibility"?
trust expertise charisma
How did the organization that purchased Hard Rock Cafe realize there was a problem with their branding and fixed it?
unified the brand
What did the organization who purchased the hard rock cafe realize was the problem with the brand? How did they remedy the situation?
unified the brand
societal factors
values of the day; activities, interests, and opinions that help make up your life style decisions
3 characteristics that make you "likable"
vocal visual verbal
step 5: post purchase behavior
what happens after the sale
core competency
what you are good at
"sneezing"
word of mouth--very powerful
charisma
your personal brand
JcPenny article
· CEO is man who created the apple store
maintain contact
· Develop and maintain long-term relationships
visual delivery
· Facial Expression will define your emotional impact · Figure out your default look (your everyday facial expression) · 1/24 of a second is it all it takes and a brand is created · The thin slice is a concept in negotiation o 10 secs is all it takes to formulate an opinion of someone and can make a 70% prediction about someone's personality as if you were in the presence of someone for 1 hour
Product Life Cycle
· Intro · Growth · Maturity · Decline · Extensive- extend life of product
enhance credibility
· Trust/honestly/sincerity · Knowledge, expert on topics · Identification/association · Position/status/success · Charisma/personal branding
Likability- Al Merchabian
· We as individuals want to be liked, no matter how you are. · Want to have the emotional impact on someone else · Want people to look at you and like you enough to pay attention to you
promotion
· advertise o TV o Radio o Newspaper o Internet o Magazines o Direct mail o Billboards o Circulars
product categories
· convenience- everyday product; low level of involvement · Shopping · Specialty · Unsought-never thought you were going to need it
reasons we switch
· core service failure- service you wanted didn't please you · service encounter failure (no attention because of what you have on or what car you drive) · price · inconvenience (sit in an office for 1.5 hours for a 5 minute check up) · employee's failure to respond to service failure · attraction from competition · unethical behavior- what they do might not be what we want them to do
3 Marketing goals
· create customer value CV=benefits-cost · customer satisfaction · failure and recovery
mystery shopper
· evaluate business and tell manager what they experienced
sell yourself
· how people see you. · How well you can speak either in public or in person. · How people judge you when they look at you
Level 3: Implementation
· implement the plan so the consumer will buy the product and make you money
warranty (2 cases)
· implied - the law says products you sell must be good · written - legally binding (computer, tv, etc warranty)
marketing management philosophy
· production orientation- produce orientation · sales orientation- a company puts together a sales person who's skills are to move products · marketing orientation- satisfying a customers needs and wants by giving them a product they desire, · societal orientation- satisfying a customers needs and wants by giving them a product they desire, while keeping the environment and our society safe
2 things constantly work
· what things happen to price · what promotions are you going to use/embrace
service profit chain
• employee job satisfaction o creates customer value creates customer satisfaction generate loyalty • profit