BUSM-Marketing Study cards
For both BCG Matrix and Ansoff Matrix, if given a scenario, you should know in which quadrant it belongs. No need to memorize the in-class examples, but you should know the characteristics.
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Required reading: "Black Rifle Coffee Seeks Like-Minded Aficionados."
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Required reading: "Focus Groups Fall Out of Favor."
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Required reading: "Volvo to Sharpen Brand Positioning."
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Required viewing: "Choice, Happiness and Spaghetti Sauce."
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What are the four guiding principles that underly the strategic marketing process?
1. Customers are Different 2. Customers Change 3. Competitors Change and React 4. Organizational Resources are Limited
Know the three steps to segmentation, especially the role of homogeneity and heterogeneity.
1. Divide the market into distinct segments. 2. Choose the specific segment(s) that we wish to target(luxury, middle class, etc) 3. . Position offerings to provide value to each segment via a specific marketing mix.
What's the sequence of events when running a business, from goals to results?
1. Goals-Destination 2. Strategy- Road Map 3. Tactics- vehicles 4. Results- dashboard SALES-PROFIT-SHARE
Seven steps of new-product development, i.e. stage-gate process. What happens in each stage? (Don't worry about Stage 7 for now.)
1. New Product Development 2. Idea Generation 3. Screening and evaluation 4. Business Analysis 5. Development 6. Market Testing 7. Commercialization
Understand how the marketing mix is executed, depending on the need addressed (e.g. Poo Pourri)
1. Product Strategy-function/purpose 2. Price Strategy- $9.95 3. Promotion Strategy- getting to ultimate consumer 4. Place- accessibility of service
What does Maslow's hierarchy of needs have to do with needs and wants?
1. Self Actualization 2. Self Esteem 3. Love and Belonging 4. Safety and Security 5. Physiological needs -Everything a person buys fulfills a need that already exists
What are the four types of business risk, plus the most important one and why?
1. Technical risk: Do we have expertise to create this? 2. People risk: Do we have the team to achieve this? 3. Financial risk: Do we have funding to pursue this? 4. Market risk: Will big consumer trends shift on us?
What does it mean that a "problem half-defined is half-solved"? How do you get there?
1. What business problem are we trying to solve? 2. What's our hypothesis for this business problem? 3. What will we do with the information we collect?
How can products/services/brands can be repositioned?
By reaching a new target segment
What are the best practices for using exploratory, descriptive and causal research?
Combining methods are fine EXCEPT for Exploratory!
Know the different kinds of research bias - particularly sample bias and how to avoid it
Confirmation bias: fixating on data that reinforces what we already believe Order bias: caused by the order in which items or responses are presented Question bias: caused by how the query is framed or worded Sample bias: respondents are not fully representative of the target segment
Understand the four main segmentation methods, plus pros/cons of each one.
Demographic-based on some objective physical aspect(gender, measurable income, age, birth era etc) Geographic-based on where prospective customers live or work, household size, income, family members(Region, City, Size) Psychographic- based on some subjective mental or emotional attributes(personality, lifestyle, or specific need) Behavioral-based on observable actions or attributes by prospective buyers (ie. frequency and usage rates)
What's the difference between empathy and sympathy, and why does it matter in marketing? (This would make a great short-answer question. "#$)
Empathy-the ability to share someone else's feelings or experiences by imagining what if would be like to be in that person's situation Sympathy-understanding someone else's suffering
Exploratory vs. descriptive vs. causal research - how are they different, what are they used for, and how can you combine them (e.g. ice cream example)?
Exploratory- provides ideas about a vague problem or question Descriptive- Trying to find the frequency of buying(southwest) Casual- research evolved around testing one variable and seeing its effect Exploratory- Probing => qualitative(How does it feel to use) Descriptive- Correlation=>quantitative Casual- Causation=>Quantitative(Cause and effect)
What are the four main types of utility (i.e. value) that marketing can deliver?
Form Utility, Possession Utility, Time Utility, Place Utility
Know the role and importance of innovation. How does it drive growth of the business?
Innovators: well educated, high income, high risk tolerance.
Understand the diffusion of innovation, particularly the role of early adopters in crossing the chasm.
Innovators: well educated, high income, high risk tolerance. Early Adopters: wide networks, well connected, very influential. "Chasm" separates niche products from mainstream products.
How is market research defined and what is its role in business?
Is the process of defining a marketing problem and opportunity, collecting information, and then making a plan of action
The stage-gate process: How does it work, why does it matter, how does it reduce risk?
It ensures new innovations are ready to go into market testing
How does defining the business problem affect the research you'll do - or not do?
It helps a company decide which direction it will choose to go through; 1.finding the business problem 2. Creating a hypothesis 3. Gives a company expectations -allows a company to decide(secondary research, primary research, etc)
Why is marketing seen as the "hub of the wheel" in some industries/companies?
It is at the center of finance, accounting, supply chain, human resources, sales, creative services, production, and market research
The perceptual map: What is it, how does it work, how is it used?
Its charts out a segment in correlation with the product values
Is marketing, in the broadest sense, a department or a function or a discipline?
Marketing is a way of "thinking"(function), not just a department
Understand needs vs. wants, and how marketing can (or can't) impact either one.
Need-Something a person have have to live or achieve a larger goal Want-A specific manifestation of a need that's determined by personal/cultural factors
What comprises the marketing mix, i.e. 4 Ps
Place, Product, Price, Promotion,
What's the difference between points of parity and points of difference? Why do they matter?
Points of parity: Features that the brand must have to establish membership in the category Point of difference: The singular aspect that sets the brand apart from others in the category.
Positioning - what's the role of the positioning statement and each of the four inputs?
Positioning is the consumer's perception of the brand's difference from its competitors.- -[target segment]-whom specifically is the brand targeted -[frame of reference]-In what category does the brand compete -[unique benefit]- What sets the brand apart from others in its category -[reason to believe]-What attributes make the unique benefit possible? §Declaration of competitive advantage. §A strategic document for all functions. §Not an ad, but an internal guidepost. §An enduring, consistent agreement.
Ansoff Matrix: What is it, what do the quadrants mean, how is it used to develop strategy?
Purpose-To Identify the different opportunities for driving growth of any one product, brand, or business. Risk v Reward(in order) Quadrants 1. Product Development (New Product x Current Market) 2. Market Penetration (Current Product x Current Market) 3. Market Development (Current Product x New Market) 4. Diversification (New Product X New Market)
BCG Matrix: What is it, what do the quadrants mean, how is it used to develop strategy?
Purpose: To manage total portfolio; by investing our finite resources to create growth/profit 1. Question Mark 2. Star 3. Cash Cow 4. Dog
The importance - and examples - of renovation.
Renovation-Chocolate Milk Exercise, make the product fit other consumer wants
What are the different types of business goals/objectives (often used interchangeably).
SALES-PROFIT-SHARE
Primary vs. secondary research - what's the difference, why does each one matter?
Secondary research is the data already collected, Primary research involves creating new data on a market. Secondary- Internal Data, Census Reports, Trade Journals Primary- Exploratory, Descriptive, Casual
Market segmentation - what is it, why does it matter, benefits for both customer and company?
Segment the market to respond more effectively to the specific needs of a group of buyers, thereby increasing sales and profit
Know the definition of strategy and why it's often thought of as choices or priorities.
Strategy-decisions about how we'll achieve our business goals - All about trade-offs - limited resources require choices, prioritization
How do you use the criteria for deciding which segment should be targeted?
Targeting: Choose segment that offers best opportunity for revenue and profit.
What's the significance of tradeoffs in strategy?
There are no solutions. There are only trade-offs
What four factors must be present for marketing to occur?
Value, Strategy, Market Research, segment/target/position
Know the value equation and what happens when the numerator/denominator moves up/down
Value=Benefit/Price
What's the significance of cannibalization and synergy?
cannibalization-when companies new products out compete their own Synergy-When organizational flow in a company results in revenue
Innovation from consumer's perspective: continuous vs. dynamically continuous vs. discontinuous.
continious- customers dont need to learn new behaviors dynamically- only minor changes in behavior are required discontinous-makes the customer learn a completely new set of behaviors
What's the logic behind segmentation, i.e. marginal revenue > marginal cost?
efficient at (1) having common needs, (2) responding similarly to a particular proposition.§Ask: "Does marginal revenue from serving a new segment exceed marginal cost?"
Know Kotler's definition of marketing. Don't need to memorize it, but know the key points
identifies Needs v Wants within a group of people-"The science and art of exploring, creating and delivering value to satisfy the needs of a target market at a profit"
Innovation from business's perspective: from line extension to disruptive invention.
line extension- incremental improvements of existing products disruptive invention-
What are the three main marketing strategies that arise from segmentation?
multiple segments, one product multiple segments, multiple products mass customization ~segment of one
What are the four product classifications? How do the marketing mix and consumer behavior differ depending on the type of product?
§Convenience-Items that are purchased frequently and often requiring little shopping effort §Shopping-Items that are purchased less frequently, take more time and consideration on part of the consumer §Specialty- items that consumer makes special effort to buy §Unsought-having to pay for unwanted items(funeral service)
