Marketing Chapters 6-11

Multinational Firm

• Views the world as consisting of unique parts and markets to each part differently. • Employs a multidomestic marketing strategy — have as many different product variations, brand names and advertising programs as countries in which they do business. - Example: mr clean in mexico, spain, us, france, etc.

Brand purpose

the reason why a brand exists, the place it has in consumers' lives, the solution it provides to consumers and the brand's role in making society better off.

Organizational Markets - Reseller markets

wholesalers and resellers who buy physical products and resell them again without any reprocessing

Market Segmentation

• Aggregating prospective buyers into groups, or segments, that 1) have common needs and 2) will respond similarly to a marketing action. • Leads to product differentiation — a strategy of using different marketing mix actions, such as product features and advertising, to help consumers perceive the product being different and better than competing products.

Personas

• Character descriptions of a brand's typical customers. • Bring target market data alive by creating fictional character narratives, complete with image, in one-page descriptions or snapshots that capture the personalities, values, attitudes, beliefs, demographics and expected interactions of a typical user with a brand.

Step 4: Develop Findings

• First, analyze the data. • Cross tabulation (or cross tabs): a method of presenting and analyzing data involving two or more variables to discover relationships in the data. • Example: Wendy's could pair the age of the head of household with how often the respondent eats at a fast-food restaurant. • You want to make sure you have established these parameters during the survey design phase. • Next, present the findings.

Writing a Positioning Statement

• For [target audience] who [need], [brand] is a [product category] that offers [key benefits]. • Example: For upscale American families, who desire a carefree driving experience, Volvo is a premium-priced automobile that offers the utmost safety and dependability.

2 Approaches to Product Positioning

• Head-to-head positioning: directly competing with competitors on similar product attributes in the same market. • Example: Dollar Rent a Car vs. Avis vs. Hertz. • Differentiation positioning: seeking a less-competitive, smaller market niche in which to locate a brand. • Example: Whole Foods vs. large supermarket chains.

Perceptual Maps

• Identify the important attributes for a product or brand class. • Discover how target customers rate competing products or brands with respect to these attributes. • Discover where the company's product or brand is on these attributes in the minds of potential customers. • Reposition the company's product or brand in the minds of potential customers.

3 Types of Global Companies

• International firm. • Multinational firm. • Transnational firm.

Step 5: Take Marketing Actions

• Make action recommendations. • Implement the action recommendations. • Evaluate the results.

Step 1: Define the Problem

• Measures of success: criteria or standards used in evaluating proposed solutions to the problem. • Exploratory research: provides ideas about a vague problem or question. • - Example: LEGO wanted to know if middle schoolers would be overwhelmed by 500 pieces for its MINDSTORMS product and lose interest. • Descriptive research: tries to the find the frequency with which something occurs or the extent of a relationship between two factors. - Example: LEGO tested two MINDSTORMS kits with middle schoolers and high schoolers. • Causal research: tries to determine the extent to which the change in one factor changes another one. - Example: LEGO tweaked key pieces in the MINDSTORMS kit to make the product usable faster.

4 Main Brand Strategies Multiproduct branding Multibranding strategy Private branding strategy Mixed branding strategy

• Multiproduct branding = a company uses one name for all its products in a product class. • Example: Microsoft. • Multibranding strategy = a company gives each product a distinct name. • Example: Frito-Lay has Doritos and Tostitos. • Private branding strategy = a company manufactures products but sells them under the brand name of a wholesaler or retailer. • Example: Costco's Kirkland. • Mixed branding strategy = a company markets products under its own name(s) and that of a reseller because the segment attracted to the reseller is different from its own market. • Example: Whirlpool sells appliances under its own name and reseller names.

3 Types of Buying Situations

• New buy. • Straight rebuy. • Modified rebuy.

Other Things to Consider A SCAN OF GLOBAL MARKETPLACE SHOULD ALSO INCLUDE

• Political stability. • Trade regulations. • Indirect versus direct exporting. - Indirect = when a firm sells its domestically produced products in a foreign country through an intermediary. - Direct = when a firm sells its domestically produced products in a foreign country without intermediaries. • Licensing. - When a company offers the right to a trademark, patent, trade secret or other intellectual property. • Joint ventures. - When a foreign company and local firm invest together to create a local business. • Direct investments. - When a domestic firm invests in and owns a foreign subsidiary or division. • How the 4 Ps need to be adjusted.

Product class VS Product Form

• Product class = the entire product category or industry. • Example: Prerecorded music. • Product form = variations of a product within the product class. • Examples: Cassette tapes, compact discs, digital music downloading, streaming.

Product positioning & Product repositioning

• Product positioning: the place a product occupies in consumers' minds based on important attributes relative to competitive products. • Product repositioning: changing the place a product occupies in a consumer's mind relative to competitive products.

The Buying Center

• Several people in an organization who participate in the buying process. • These individuals share common goals, risks and knowledge important to a purchase decision.

Step 2: Develop the Research Plan

• Specify constraints — restrictions placed on potential solutions. • Identify the data needed for marketing actions — data that will help make a clear choice (not just nice-to-know information). • Determine how to collect the data — two key elements to consider: - Concepts: ideas about products or services. -Methods: approaches that can be used to collect data to solve all/part of a problem.

Market Research

• The process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions.

Brand licensing

= a contractual agreement whereby one company (licensor) allows its brand name(s) or trademark(s) to be used with the products or services offered by another company (licensee) for a royalty or fee. Example: NFL logo

(CARMAX) The advantages of using a poll on Facebook are....

- Easy for consumer - Open-ended questions can make you talk to no one - It would be appropriate to ask an open-ended question when you want to generate more of an actual conversation and solicit more opinions/ Dialogue

5 Step Marketing Research Approach

1. Define the problem 2. Develop the research plan 3. Collect relevant information 4. Develop findings 5. Take marketing actions

5 stages of purchase decision process

1. problem recognition 2. information search 3. alternative evaluation 4. purchase decision 5. post purchase behavior

Economic Considerations

A SCAN OF GLOBAL MARKETPLACE SHOULD ALSO INCLUDE • An assessment of the economic infrastructure in these countries. - A country's communications, transportation, financial and distribution systems. • Measurement of consumer income in different countries. -The average per capita or household income and how income is distributed. • Recognition of a country's currency exchange rates. - The price of one country's currency expressed in terms of another country's currency (e.g., U.S. dollar, Japanese yen, euros, etc.).

What is the role of the buying center at Trek? Who compromises the buying center in the decision to select a new supplier at the trek?

A person goes to buying center and looks for suppliers/ products Designers/ quality control/ purchasing manager/ research and development group/ production crew go to these buying centers

(CARMAX) What evokes consumer engagement on a brand page on Facebook? What attracts consumers to like a brand?

Aesthetics and quality of content make people want to be engaged

What is ChatGPT?

An AI Software

Product Lifecycle

introduction, growth, maturity, decline

Difference between a branded house and a house of brands

Branded House: Maintains the focus on a single, well-known and consistent brand House of Brands: Home to numerous brands, each independent of one another, and each with its own audience, marketing, look and feel.

Modified Rebuy People involved - Decision time - problem definition - buying objective - suppliers considered - Buying influence -

Buyers want something, need to go beyond buying center People involved - 2 to 3 Decision time - moderate problem definition - minor modifications buying objective- low priced supplier suppliers considered- present Buying influence - Purchasing agent and others

Prince Case Study

Competitive- just tennis only Changing their brand for how tennis has also adapted Social- lots of influences/athletes Going to specific retailers to market to them Against environmental factors Economic - tennis is expensive - elite nature to it To play tennis- discretionary market → extra money Recreational- reach them as an aspect of fitness, pricing Pricing is a means of communication Prince- gain distribution in Target/ Walmart by dynamic pricing Controlling entire tennis category Direct how to arrange in store

Boston consulting group quadrant

LEFT TO RIGHT TOP TO BOTTOM Stars. Question marks. cashcow. dog.

disposable income vs discretionary income

Disposable income is the income a person has left after all the taxes on it have been paid. Discretionary income is the money left over after necessities have been paid for

5 Developments in Globalization

Economic protectionism by individual countries. • Economic integration among countries. • Global competition among global companies for global consumers. • The presence of a networked global marketspace. • The growing prevalence of economic espionage.

International Firm

Engages in trade and marketing in different countries as an extension of the marketing strategy in its home country. • Generally markets existing products and services in other countries the same as it does in its own. • Example: Avon is the same across Asia, Europe and South America, employing virtually the same marketing strategy as it does in the U.S.

T or F? A customer relationship management platform (CRM) is the internal response that customers have to all aspects of an organization and its offering.

FALSE

Organizational Markets - Industrial markets

Firms that in some way reprocess a product or service they buy before selling it again to the next buyer

Why is mary kay a global brand?

In 40 different countries Rely on business partners in multiple areas that keep the brand fresh in each company to provide global insight/ distribution - a scaleable network

What product and promotion strategy did mary kay employ in china?

Influencers Retaining brand color, but making it fresh again and appealing to a new market Launched during fashion week Got word out through We Chat- attracted 45k new followers

Secondary data

Internal: ● Inputs (budgets, financial statements, sales call reports) ● Outcomes (actual sales and customer communications) External: ● U.S. Census reports ● Trade association studies ● Business periodicals ● Internet-based reports

Why did US dept of justice announce it is suing google?

Monopoly over online advertising, controlling entire ad market

(CARMAX) On a Facebook brand page, what are the dif between engagement and likes? And which is more important

Like- like your page to see your posts often, doesn't mean action Engagement- show that people have more skin the game and act on the things that you put out, this is more important because it shows how engaged the audience is and is deeper/ more meaningful

Organizational buyers

Manufacturers, wholesalers, retailers, service companies, not-for-profit organizations, and government agencies that buy products and services for their own use or for resale

Market penetration = Market development= Product development = diversification=

Market penetration = increase sales of current products in current markets Market development= sell products to new markets Product development = new products to new markets diverse= new new

What global market entry strategy did mary kay use in China?

Market research Recognized that trends were always changing Targeted a younger demographic

Difference between marketing persona and brand personality?

Marketing- image of potential customer, more about composite character Brand- how you're going to market your brand to people, more about imagine that a brand is projecting

Trek - What is an example of the 3 buying situations

New buy - new saddle, electric motors Straight rebuy - more hand grips Modified rebuy - used leather before but want to use vegan leather now

Primary data

Observational (watching people): ● Mechanical methods (e.g., Nielsen ratings) ● Personal methods (e.g., Gillette watching people shave) ● Neuromarketing methods — nonconscious (e.g., changing packaging to evoke emotions) Questionnaire (asking people): ● Idea generation methods — coming up with ideas (individual interviews and focus groups) ● Idea evaluation methods — testing ideas (personal surveys, telephone interviews, online surveys, etc.) Other sources: ● Social media ● Panels and experiments ● Information technology, IoT ● Data mining

Oligopoly means

Only a few sellers in a market (ex. Telephone Carrie's like AT&T)

(CARMAX) Vanity metric

People who want to get a lot of likes/ audience, just for the number, but does not get value/ engagement, sometimes bot followers

(CARMAX) Poll or contest-only strategy if you had a limited budget and 2 weeks to decide which flavor to put out?

Poll only

Step 3: Collect Relevant Information primary data: secondary data:

Primary data: facts and figures that are newly collected for the project. Secondary data: facts and figures that have already been recorded prior to the project at hand.

4 PS

Product, Price, Place, Promotion

What selection criteria does Trek use when selecting a new supplier/ evaluating an existing supplier?

Quality, price, environmental impact (emissions, etc.), and delivery (are they on time?)

Straight Rebuy People involved - Decision time - problem definition - buying objective - suppliers considered - Buying influence -

Reorder of an existing product or service from approved vendors People involved - one Decision time - short problem definition - well defined buying objective- low priced supplier suppliers considered- present Buying influence - purchasing agent

Purpose of persona in marketing?

Representation of target audience, an avatar if you will, that represents your audience, a photo of them, and a literature nickname and something that describes that person

Buyers can be grounded into market segments, which are relatively homogenous groups of prospective buyers who have ____ needs and will respond similarly to a ___ action.

Similar Marketing

How has Trek's interest in the environmental impact of its business influenced its organizational buying process?

Started new program for eco tires and recycling Using recycled material, carbon emissions, and what goes into making their products Do the suppliers know where the material is sourced from?

T or F? A customer value proposition is a cluster of benefits that an organization promises customers (or segments) to satisfy their needs

T

B2b marketing

The marketing of products and services to companies, governments, or not-for-profit organizations for use in the creation of products and services that they produce and market to others

Trading up vs trading down

Trading up = adding value to the product (or line) through additional features or higher-quality materials. Trading down = reducing a product's number of features, quality or price.

Based on its marketing strategy, mary kay is a..

Transnational Tweaked marketing for different countries Taking a product and running a similar marketing playbook based on things that they know about Chinese market

Cross-Cultural Analysis

UNDERSTANDING CONSUMERS AROUND THE WORLD • The study of similarities and differences among consumers in two or more nations or societies. • As a marketer, you must understand and appreciate other societies': • Values — McDonald's does not sell beef hamburgers in India. • Customs — In France, men wear twice the number of cosmetics as women do. • Cultural symbols — In Japan, the word for "four" is also the word for "death." • Languages — Vicks is a sexual slang word in Germany, so the brand is called Wicks there instead.

Agile Marketing

Using data and analytics to continuously source promising opportunities or solutions to problems in real time, deploying tests quickly, evaluating the results, and rapidly iterating (doing it over and over). ability to go dif directoins with your marketing based on trends, etc.

consumer touchpoints

a marketer's product, service, or brand points of contact with a consumer from start-to-finish in the purchase decision process

Brand personality

a set of human characteristics associated with a brand name

consumer journey map

a visual representation of all the touchpoints a consumer comes into contact with before, during, and after a purchase

Product modification

altering one or more of a product's characteristics, such as its quality, performance or appearance, to increase the product's value to customers and increase sales.

an example of a sociocultural influence on consumer behavior is...

community influence

Government markets

federal, state and local agencies that buy goods and services for their constituents.

New Buy People involved - Decision time - problem definition - buying objective - suppliers considered - Buying influence -

first time buyer of the product or service People involved - many Decision time - long problem definition - uncertain buying objective- good solution suppliers considered- new/present Buying influence - Technical/operating personnel

Which is not a main category of influence on consumers? marketing mix physological metaphysical sociocultural situational

metaphysical

3 Ps in the triple bottom line

people, planet, profit

3 phases of strategic marketing process

planning, implementation, evaluation

the 5 environmental forces marketers have to be aware of?

social, economic, technological, competitive, and regulatory

Market modification

strategies a company tries to find new customers, increase a product's use among existing customers or create new use situations.

SWOT means

strengths, weaknesses, opportunities, threats

6 Criteria for Naming

suggest the product benefits memorable, distinctive and positive. fit the company or product image. no legal or regulatory restrictions. simple and emotional. have favorable phonetic and semantic associations in other languages. (7Up means "death through drinking" in Shanghai.)

tactic vs strategy

tactic- day to day, operational marketing actions strategy- means by which a marketing goal will be achieved

Brand equity

the added value a brand name gives to a product beyond the functional benefits provided.

Transnational Firm

• Views the world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants rather than differences. • Employs a global marketing strategy — the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ. • Markets a global brand — a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs. - ex: coke and pepsi -Some tweaks at times to better reach consumers. (mcdonalds: beer in germany, vegetarian in india)

4 questions to ask of the buying center in an organization:

• Which individuals are in the buying center for the product or service? • What is the relative influence of each member of the group? • What are the buying criteria for each member? • How does each member of the group perceive our firm, our products and services, and our sales people?