marketing midterm
ZMOT
The zero moment of truth (ZMOT) refers to the point in the buying cycle when the consumer researches a product, often before the seller even knows that they exist. The number of consumers researching a product online prior to purchase has been on the rise in recent years as the internet and mobile continue to advance.
steps in marketing planning
1. understand the marketplace and customer needs and wants 2. design a customer-driven marketing strategy (who to serve and how: The company must also decide how it will serve targeted customers—how it will differentiate and position itself in the marketplace. ) 3. construct an integrated marketing program that delivers superior value (transforming the marketing strategy into action) - via marketing mix tools, 4P's 4. build profitable relationships and create customer delight -customer relationship management is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. It deals with all aspects of acquiring, engaging, and growing customers. 5. capture value from customers in return to create profits and customer equity first 4 steps are creating value for customers. final is capturing value from customers
marketing concept vs selling concept
2 diff marketing management orientations selling concept: starting point - factory focus - existing products means - selling and promoting ends - profits through sales volume consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort. The selling concept is typically practiced with unsought goods—those that buyers do not normally think of buying. These industries must be good at tracking down prospects and selling them on a product's benefits. Such aggressive selling, however, carries high risks. It focuses on creating sales transactions rather than on building long-term, profitable customer relationships. The aim often is to sell what the company makes rather than to make what the market wants. It assumes that customers who are coaxed into buying the product will like it. Or, if they don't like it, they will possibly forget their disappointment and buy it again later. These are usually poor assumptions. marketing concept: starting point - market focus - customer needs means - integrated marketing ends - profits through customer satisfaction knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. Under the marketing concept, customer focus and value are the paths to sales and profits. Instead of a product-centered make-and-sell philosophy, the marketing concept is a customer-centered sense-and-respond philosophy. The job is not to find the right customers for your product but to find the right products for your customers.
types of segmentation- behavior/usage, demographic, psychographic, geographic
4 basic groups of segmentation variables behavior/usage (Occasions, benefits, user status, usage rate, loyalty status) Dividing a market into segments based on consumer knowledge, attitudes, uses, or responses to a product. special ads for Halloween candy because those are when buyers will purchase demographic (Age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, generation) psychographic (Social class, lifestyle, personality) geographic (Nations, regions, states, counties, cities, neighborhoods, population density (urban, suburban, rural), climate)
Steps in market research process
4: defining the problem and research objectives, developing the research plan, implementing the research plan, and interpreting and reporting the findings.
perceptual map
= positioning map. In planning their differentiation and positioning strategies, marketers often prepare perceptual positioning maps that show consumer perceptions of their brands versus those of competing products on important buying dimensions
micro & macroenvironment
A company's marketing environment consists of the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers. The microenvironment consists of the actors close to the company that affect its ability to engage and serve its customers—the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. The macroenvironment consists of the larger societal forces that affect the microenvironment—demographic, economic, natural, technological, political, and cultural forces.
Brand identity- What constitutes a brand (logo, url, etc)?, product lines, product mix, product depth
A name, term, sign, symbol, or design, or a combination of these, that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors. customers attach meanings to brands product line: A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges product mix: An organization with several product lines has a product mix. A product mix (or product portfolio) consists of all the product lines and items that a particular seller offers for sale. product depth: The number of versions offered of each product in the line length: The number of items within a product line width: The number of different product lines the company carries
Importance of a target market's profile
A target market consists of a set of buyers who share common needs or characteristics that the company decides to serve. broadly (undifferentiated marketing), very narrowly (micromarketing), or somewhere in between (differentiated or concentrated marketing). important for differentiation and positioning.
big data buzzwords
AI: a technique which enables machines to mimic human behavior machine learning: subset of AI techniques which use statistical methods to enable machines to improve with experience deep learning: subset of machine learning which make the computation of multi layer neural network feasible https://blogs.oracle.com/bigdata/difference-ai-machine-learning-deep-learning
Types of products -significance to marketers
Convenience products are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort. Examples include laundry detergent, candy, magazines, and fast food. Convenience products are usually low priced, and marketers place them in many locations to make them readily available when customers need or want them. Shopping products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style. When buying shopping products and services, consumers spend much time and effort in gathering information and making comparisons. Examples include furniture, clothing, major appliances, and hotel services. Shopping product marketers usually distribute their products through fewer outlets but provide deeper sales support to help customers in their comparison efforts. Specialty products are consumer products and services with unique characteristics or brand identifications for which a significant group of buyers is willing to make a special purchase effort. Examples include specific brands of cars, high-priced photography equipment, designer clothes, gourmet foods, and the services of medical or legal specialists. A Lamborghini automobile, for example, is a specialty product because buyers are usually willing to travel great distances to buy one. Buyers normally do not compare specialty products. They invest only the time needed to reach dealers carrying the wanted products. Unsought products are consumer products that the consumer either does not know about or knows about but does not normally consider buying. Most major new innovations are unsought until the consumer becomes aware of them through advertising. Classic examples of known but unsought products and services are life insurance, preplanned funeral services, and blood donations to the Red Cross. By their very nature, unsought products require a lot of advertising, personal selling, and other marketing efforts.
Ethnographic research - how it is used
Ethnographic research involves sending observers to watch and interact with consumers in their "natural environments." observational research can generate fresh customer and market insights that people are unwilling or unable to provide
ESPN?
ESPN's brand portfolio consists of more than 50 business entities, ranging from multiple ESPN cable channels to ESPN Radio, ESPN.com, ESPN The Magazine, and even ESPN Zone sports-themed restaurants. In turn, ESPN is just one unit in the even more complex portfolio of its parent company, The Walt Disney Company. Through skillful portfolio management, however, ESPN has built a cohesive brand, unified powerfully under its mission to serve sports enthusiasts "wherever sports are watched, listened to, discussed, debated, read about, or played" tech savvy, creative, and often irreverent, the well-managed, ever-extending yet carefully integrated brand portfolio continues to build meaningful customer engagement and experiences. If it has to do with your life and sports—large or small—ESPN covers it for you, anywhere you are, 24/7.
Construction of a positioning statement/value proposition (benefits of products from consumers' perspective
Identifying a set of differentiating competitive advantages on which to build a position • To (target segment and need) our (brand) is (concept) that (point of difference). Choosing the right competitive advantages. For consumers who want to purchase a wide range of products online with quick delivery, Amazon provides a one-stop online shopping site. Amazon sets itself apart from other online retailers with its customer obsession, passion for innovation, and commitment to operational excellence.
Contact methods - personal interviews, survey, observational, experimental *
Information can be collected by mail, telephone, personal interview, or online. Survey research, the most widely used method for primary data collection, is the approach best suited for gathering descriptive information. A company that wants to know about people's knowledge, attitudes, preferences, or buying behavior can often find out by asking them directly. Gathering a small group of people online with a trained online focus groups - moderator to chat about a product, service, or organization and gain qualitative insights about consumer attitudes and behavior
Definition of market research/exploratory research
Marketing research is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization. A marketing research project might have one of three types of objectives. The objective of exploratory research is to gather preliminary information that will help define the problem and suggest hypotheses.
primary research
Primary data consist of information collected for the specific purpose at hand. Designing a primary data collection plan involves making decisions about:•The research approach•Observation, survey, or experiment•Contact methods•Mail, telephone, personal, or online•The sampling plan•Sampling unit, sample size, and sampling procedure•Research instruments
Qualitative and quantitative - differences
Qualitative - subjective, directional, gains deep insight into consumers' insight - small groups (focus groups, in-depth interviews, triads)• Quantitative - objective, statistical, can project to a larger segment (surveys)
secondary data
Secondary data consist of information that already exists somewhere, having been collected for another purpose. •Common sources of secondary data:•Internal company databases•Commercial online databases•Internet search engines• Nielsen!
how do external factors affect harley davidson business - harley davidson
The brand loyalty that Harley Davidson has cultivated has become its weakness as its core demographic of rider's ages the company struggles to attract the new millennial rider and re-align its brand messaging to match what that segment is looking for. Company intends to introduce new products including electric motorcycles, a new middle-weight platform of motorcycles. There is a difference in motorcycle riding philosophy between the US and Asia. In many Asian countries, a motorcycle is considered a legitimate transportation option. A motorcycle is easier to park in the densely packed cities, can squeeze right through traffic, and is far more affordable than a car. Fuel in many Asian countries is also more expensive,
Concept of value proposition
The full positioning of a brand is called the brand's value proposition—the full mix of benefits on which a brand is differentiated and positioned. It is the answer to the customer's question "Why should I buy your brand?" BMW's "ultimate driving machine" value proposition hinges on performance but also includes luxury and styling, all for a price that is higher than average but seems fair for this mix of benefits.
Criteria to evaluate market segments
To be useful, market segments must be: •Measurable•Accessible•Substantial•Differentiable•Actionable In evaluating different market segments, a firm must look at: •Segment size and growth. First, a company wants to select segments that have the right size and growth characteristics. •Segment structural attractiveness. For example, a segment is less attractive if it already contains many strong and aggressive competitors. SWOT. •Company objectives and resources. Some attractive segments can be dismissed quickly because they do not mesh with the company's long-run objectives. Or the company may lack the skills and resources needed to succeed in an attractive segment.
Elements of a strong mission statement
What is our business?•Who is our customer?•What do consumers value?•What should our business be?• action oriented statement of the organization's purpose—what it wants to accomplish in the larger environment. A clear mission statement acts as an "invisible hand" that guides people in the organization. Mission statements should be market- oriented, not product-oriented The mission should be translated into supporting objectives for each level of management•Marketing strategies and programs must be developed to support these objectives
BCG model - quadrants and dimensions
a company classifies all its SBUs according to the growth-share matrix. On the vertical axis, market growth rate provides a measure of market attractiveness. On the horizontal axis, relative market share serves as a measure of company strength in the market. Stars. Stars are high-growth, high-share businesses or products. They often need heavy investments to finance their rapid growth. Eventually their growth will slow down, and they will turn into cash cows. Cash cows. Cash cows are low-growth, high-share businesses or products. These established and successful SBUs need less investment to hold their market share. Thus, they produce a lot of the cash that the company uses to pay its bills and support other SBUs that need investment. Question marks. Question marks are low-share business units in high-growth markets. They require a lot of cash to hold their share, let alone increase it. Management has to think hard about which question marks it should try to build into stars and which should be phased out. Dogs. Dogs are low-growth, low-share businesses and products. They may generate enough cash to maintain themselves but do not promise to be large sources of cash.
SWOT -difference between strengths/weaknesses and opportunities/threats
a form of marketing analysis Strengths include internal capabilities, resources, and positive situational factors that may help the company serve its customers and achieve its objectives. Weaknesses include internal limitations and negative situational factors that may interfere with the company's performance. Opportunities are favorable factors or trends in the external environment that the company may be able to exploit to its advantage. And threats are unfavorable external factors or trends that may present challenges to performance.
Product line -examples
a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed. does p&g have X product line. its width if they have a whole width of products
4 basic marketing strategies for growth
after company wide strategy, customer value-driven marketing strategies - market penetration: existing products + market - market development: existing products + new markets - product development: new products + existing markets - diversification: new products + new markets
Product line -examples
apple
stages of adoption process
awareness - Consumer becomes aware of the new product, but lacks information about it interest - Consumer seeks information about new product evaluation -Consumer considers whether trying the new product makes sense trial - Consumer tries new product on a small scale to improve his or her estimate of its value adoption - Consumer decides to make full and regular use of the new product
basic characteristics of generational segments
baby boomers 1: 1946-1954 (33M) baby boomers 2: 1955-1964 (49M) 50% of consumer spending, hold 3/4 of nation's fin assets, wealthiest gen in history, recession hit their savings and retirement gen x: 1965-1979 (55M) most educated to date, skeptical of marketing and less materialistic millennials/gen y: 1980-1995 (83M) ethnically diverse, fluent with tech, personalization and product customization gen z: 1996-2015 (74M)
barbie article - trends in the category trend
becoming aware of their changing micro and marketing environment to adapt and maintain their successful relationships with their target customers microenvironment: specifically now there are millennial parents and get z kids, more racially diverse than ever before macro-environment: demographically, women bodies are on average larger now, and competitor bratz being comparatively more representative culturally/technology/politically there are more girls in stem now and parents are progressive would criticize this is a reactive firm
types of internal data (examples)
collections of consumer and market information obtained from data sources within the company's network. Can be accessed more quickly and less expensive than other information sources. Ages rapidly and may be incomplete. Maintenance and storage of data is expensive - financial, marketing, sales, human resources data
Types of products -significance to marketers
consumer products: a product bought by final customers for personal consumption classified by how consumers buy them (convenience, shopping, specialty, unsought (don't need to understand the term unsought or on test))
The marketing process captures value from customers by
creating profits and customer equity. In the final steps of the marketing process, the company reaps the rewards of its strong customer relationship by capturing value from customers. Delivering superior customer value creates highly satisfied customers who will buy more and buy again. This helps the company capture customer lifetime value and greater share of customer, resulting in increased long-term customer equity for the firm.
"Zappos" - how they deliver superior service -
customer service comes first. company's customer-service reps—what the company calls its Customer Loyalty Team. So the company starts by hiring the right people, training them thoroughly in customer-service basics, and inspiring them to new heights in taking care of customers. 4 weeks of customer loyalty training. family culture. Whereas many Web sites bury contact information several links deep because they don't really want to hear from customers, Zappos.com puts the number at the top of every single Web page and staffs its call center 24/7. answers anything and stays on the line
customer-perceived value
customer's evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.
reference groups
groups with whom buyers identify and whose values or attitudes they adopt: family, role and status. groups and other social networks. reach opinion leadersn contrast, reference groups serve as direct (face-to-face interactions) or indirect points of comparison or reference in forming a person's attitudes or behavior. People often are influenced by reference groups to which they do not belong. For example, an aspirational group is one to which the individual wishes to belong, as when a young basketball player hopes to someday emulate basketball star LeBron James and play in the NBA. arketers of brands subjected to strong group influence must figure out how to reach opinion leaders—people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert social influence on others. Some experts call this group the influentials or leading adopters.
Product positioning/brand differentiation
how to serve its customers, part of step 2 designing customer driven marketing strategy. Positioning is arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. Marketers plan positions that distinguish their products from competing brands and give them the greatest advantage in their target markets. In positioning its brand, a company first identifies possible customer value differences that provide competitive advantages on which to build the position. A company can offer greater customer value by either charging lower prices than competitors or offering more benefits to justify higher prices. But if the company promises greater value, it must then deliver that greater value. Thus, effective positioning begins with differentiation—actually differentiating the company's market offering to create superior customer value.
Big Data - Predictive Analytics - terms/application to marketers
just quantity. data warehouses. huge and complex data sets generated by today's sophisticated information generation, collection, storage, and analysis technologies. High volume or high variety of information that demand cost-effective forms of information processing that enable enhanced insight an decision-making
national brand vs store brand
national are manufactured and name brands. store brands are private label. wegmans' own label.
definition of "product"
need-satisfying market offering. can be physical or service a tool to solve a consumer problem. not limited to physical products (products, services, information, or experiences). what is important is the benefits and experiences produced by these products
Local market - niche market
ok this is stupid you obviously know what this is
Maslow's Hierarchy of Needs
physiological needs (hunger, thirst), safety needs, social needs (sense of belonging, love), esteem needs (self esteem, recognition, status), and self-actualization needs (self development, realization)
4P's of marketing mix
product (customer's solution) price (customer's cost) place (distribution) (convenience) promotion (communication) To deliver on its value proposition, the firm must first create a need-satisfying market offering (product). It must then decide how much it will charge for the offering (price) and how it will make the offering available to target consumers (place). Finally, it must engage target consumers, communicate about the offering, and persuade consumers of the offer's merits (promotion).
Brand identity- What constitutes a brand (logo, url, etc)?, product lines, product mix, product depth
product mix: width (the number of diff product lines the company carries) and depth (the number of versions offered of each product in the line like SKU)
Jet blue capturing value
related to customer relationships section, Firms may choose to build relationships at different levels•Loyalty and retention programs to build relationships include•Frequency marketing programs•Club marketing programs JetBlue Airways offers its TrueBlue members frequent-flyer points they can use on any seat on any JetBlue flight with no blackout dates. built a reputation for creating first-rate, customer-satisfying experiences. Its slogan—"YOU ABOVE ALL"—tells the JetBlue faithful that they are at the very heart of the company's strategy and culture. JetBlue is on a heartfelt mission to bring humanity back to air travel. truly delights customers padded leather seats with more room free snacks entertainment system in flight browsing people they hire emo\ody the culture. For example, customer Ann recounted how, when her JetBlue flight was delayed by a snowstorm, the airline eased the long wait by providing pizza and even a live band.
factors that influence adoption/diffusion process
relative advantage (Is the innovation superior to existing products?), compatibility (Does the innovation fit the values and experience of the target market?), complexity (Is the innovation difficult to understand or use?), divisibility (Can the innovation be used on a limited basis?), communicability (Can results be easily observed or described to others?)
Difference between primary and secondary
secondary: Less expensive to obtain than primary data•Can be collected faster than primary data Also, secondary sources can sometimes provide data an individual company cannot collect on its own—information that either is not directly available or would be too expensive to collect. Researchers can rarely obtain all the data they need from secondary sources. Even when data can be found, the information might not be very usable. The researcher must evaluate secondary information carefully to make certain it is relevant (fits the research project's needs), accurate (reliably collected and reported), current (up-to-date enough for current decisions), and impartial (objectively collected and reported). primary is more specific and in-depth
brand personality
set of traits people attribute to a product as if it were a person, set of human characteristics attributed to brand The idea is that brands also have personalities, and consumers are likely to choose brands with personalities that match their own. A brand personality is the specific mix of human traits that may be attributed to a particular brand. One researcher identified five brand personality traits: sincerity (down-to-earth, honest, wholesome, and cheerful), excitement (daring, spirited, imaginative, and up-to-date), competence (reliable, intelligent, and successful), sophistication (glamorous, upper class, charming), and ruggedness (outdoorsy and tough).
Quota sample, stratified sample, convenient *
stratified: stratified sampling is a method of sampling from a population which can be partitioned into subpopulations. random (probability sampling, ensures representation) Divides the population into strata (groups) and then randomly samples within each strata quota:A sampling method of gathering representative data from a group. As opposed to random sampling, quota sampling requires that representative individuals are chosen out of a specific subgroup. For example, a researcher might ask for a sample of 100 females, or 100 individuals between the ages of 20-30. (convenient, non-probability, quicker cheaper) - Uses quotas - Represents certain characteristics in proportion to the related population - Selects a set number of the most accessible elements who possess characteristics of intrest convenience: - Samples selected based on what is most convenient to the researcher - Inexpensive, quick and can yield interesting results
Zappos
superior customer service because of the focus on the internal market aka employees. wanting people committed to the brand
competitive intelligence
systematic monitoring, collection, and analysis of publicly available information about consumers, competitors, and developments in the marketplace. •Techniques include:•Observing consumers •Benchmarking competitors' products•Monitoring Internet buzz•Actively monitoring competitors' activities•Companies also take steps to protect their own information
service-profit chain
the chain that links service firm profits with employee and customer satisfaction. The five links • Internal service quality • Satisfied and productive service employees • Greater service value • Satisfied and loyal customers • Healthy service profits and growth
Business portfolios - SBUs
the collection of businesses and products that make up the company Analyze its currentbusiness portfolio or strategic business units (SBUs) and decide which SBUs should receive more, less, or no investment•Develop strategies for growth and downsizing that will shape the future business portfolio the company must analyze its current business portfolio and determine which businesses should receive more, less, or no investment (Purpose of portfolio analysis•To direct resources toward more profitable businesses while phasing out or dropping weaker ones•Basis of evaluation•Attractiveness of SBU's market or industry•Strength of SBU's position within that market or industry). Second, it must shape the future portfolio by developing strategies for growth and downsizing.
value proposition
value = benefits at a price customers are willing to pay value proposition = the set of benefits a company promises (to deliver to consumers to satisfy their needs)
target market
who to serve 1. market segmentation: dividing the market into segments of customers 2. selecting one or more of the segments to cultivate
