Marketing Prelim
Goal, objective, strategy, and tactic
A goal is a broad primary outcome An objective is a measurable outcome A strategy is the broad approach you take to achieve a goal A tactic is a concrete tool you use to pursue an objective. A hotel example Goal: to be the hotel of choice for target markets Objective: increase the market share in the leisure segment by 5% next year Strategy: enhance value through product upgrades and new communications campaign (marketing mix level strategies) Tactics: - rooms renovation focusing on in-room IT amenities - introduce personal technology butlers - public relations outreach to travel media to announce new programs - email announcements to past guests with value-bundle offer.
Lifestyles
A lifestyle reflects an individual's attitudes, way of life, values, and world view.
Vision
A mission statement often informs the vision statement, which describes where the company aspires to be in the future. It determines the company's long-term goal.
Market penetration
A strategy of making more sales to current customers without changing its original product - price decrease - promotion - channel development - acquisition of rivals
Diversification
A strategy of starting up or buying businesses beyond its current products and markets. - enter new industries - move up/down in the supply chain
2 types of customer loyalty
Behavioral loyalty is when a consumer transacts with a brand on an ongoing basis Attitudinal loyalty is when a customer shows a strong preference on a brand. Consumers can be both or one or the other
Causal research
Causal research establishes causality, by testing "if X happens, will Y occur" - sophisticated - costly (Quasi-) experiments - Respondents are randomly assigned to receive different treatments; everything else is controlledvto be constant - Any significant differences?
Learning theories
Classical conditioning\ - Pavlovian's learning theory (1890) - a learning procedure in which a biologically potent stimulus is paired with a previously neutral stimulus; then the neutral stimulus alone can elicit response. Operant conditioning - a learning process through which the strength of a behavior is modified by reinforcement or punishment.
cognitive vs. heuristic
Cognitive decision making is a complex mental process that leads to rational decisions. Heuristic decision making is a quick, effortless decision-making process. - Choice tactics and decision shortcuts - Frequent purchases, cheap products - Influenced by affect/emotion - Whys: cognitive laziness, fast and frugal
Corporate core values
Core values are the most important beliefs of the organization, in which they are emotionally invested.
Post-purchase: customer satisfaction
Customer satisfaction measures the gap between customer expectationsand perceptions. - When perceptions meet or exceed expectations, customers are satisfied - When perceptions fall short of expectations, customers are dissatisfied. Manage customer expectation: - Puffery attracts new customers but jeopardizes brand sustainability - Keep a surprise as a surprise.
Primary research approaches
Exploratory research gathers preliminary information that helps to identify marketing problems and suggests marketing hypotheses; - - Exploratory research can ONLY generate marketing ideas Descriptive research describes market facts that suggests marketing problems, for examples, the demographic and psychographic info of the company's customers Causal research tests marketing hypotheses Experiment is the ONLY way to test cause-and-effect relationships.
Focus group
FG is the most common form of qualitative marketing research. - Dangerous: A lot of marketing strategies are made based on FG conclusions. Some key features of focus group: - FG is a group interview that consists of 6 to 10 respondents and a moderator - Participants are paid a small sum of compensation for attending FG - Participants spend 1-2 hours together to discuss multiple issues - The moderator encourages free and easy discussion, hoping interactions in the group will bring out participants' actual feelings and thoughts.
Truth-in-advertising rules
Federal Trade Commission Act (link): ads must be truthful, not misleading, and, when appropriate, backed by scientific evidence. - Ads cannot mislead consumers acting reasonably under any circumstances - Ads cannot cause or be likely to cause substantial consumer injury - Ads cannot be outweighed by the benefit to consumers.
Competitors
Identifying competitors Current competitors - firms making the same product or class of products Potential competitors - firms making products that supply the same service - firms competing for the same consumer dollars
IBM sold its pc business to Lenovo
In 2003, Lenovowas China-based company trying to enter the global pc market. IBM was a giant IT company with a diverse business portfolio. It had decent market share in the global pc market for decades before it sold this business to Lenovo.
In-depth interview
In-depth interview is also called as customer case study in marketing. - Narrative interview is unstructured, involving many stories or life histories - Semi-structure interview is well-structured, not asking detailed descriptions.
Continuous variables
Interval: the difference between two values is meaningful Ratio: an interval variable with a clear definition of zero
What factors drive unethical practices in marketing?
Making immediate profits is a core value of the company The legal system in the market is imperfect Asymmetric information exists between customers and the company. - cost - quality - trust - data use - behavior triggers
Competitive positions (Competition tiers)
Market leader is the firm with the largest market shares Market challengers are runner-up firms that are fighting hard to increase their market share Market followers are other runner-up firms that want to hold their share without rocking the boat Market nichers are firms that serve small segments not being pursued by other firms.
Dos and dont's of focus group
Never solely rely on FG; its only use is to generate new ideas for further research Social influence brings a big concern about the reliability of focus group conclusions.
Categorical variables
Nominal: variables with values which have no numerical value Ordinal: variables with natural ordered categories, but distances between categories are unknown
Opportunities and threats
Opportunities are external factors that the company may be able to exploit to its advantage Threats are current or emerging external factors that may challenge the company's performance. Analyze external factors: political economical social technological environmental legal suppliers customers competitors public intermediaries
Basic competitive strategies
Overall cost leadership: achieves the lowest production and distribution costs, allows lowering prices and gaining market share - Ex: Walmart, Dollar Tree, Spirit Airline, Motel 6, H&M, McDonald's, etc. Differentiation: concentrates on creating a highly differentiated product line and marketing program so it comes across as an industry class leader - Ex: Whole Foods, Singapore Airline, Westin, Lululemon, Haidilao, Apple, etc. Focus: focuses its effort on serving few market segments well rather than going after the whole market. - Ex: Wegmans, La Compagnie, Aman, Vera Wang, Suit Supply, Proactive, etc.
Macroenvironment
Political Economic Social Technological Environmental Legal
Population
Population is the set of all people or items with the characteristic one wishes to understand - census or enumeration - complete sample
Hofstede's Cultural Dimensions
Power Distance: is the extent to which the less powerful members in a group accept and expect that power is distributed unequally Individualism vs Collectivism: is the degree to which people in a society are integrated into groups Uncertainty Avoidance: reflects a society's tolerance for ambiguity Masculinity: is the preference in society for achievement, heroism, assertiveness and material rewards for success Longterm: reflects how strongly that people in a society connect the past with the current or future actions Indulgence: is a society's allowance on gratification of basic and natural human desires related to enjoying life and having fun.
Societal Marketing Concept
Premise - Companies should not only to satisfy consumer short-run wants, but also to care about consumer long-run welfare. Result - Marketers deliver value to customers in a way that maintains or improves both the consumer's and society's well-being.
Product Concept
Premise - Consumers favor products that offer the most performance, quality, and features. Result - Marketers focus on making continuous product improvements. - Marketing myopia
The marketing concept
Premise - Consumers should be centered in the exchange process, namely "the customer is the king." Result - Marketers know the needs and wants of the target markets and deliver the desired satisfactions better than competitors. 31The Hotel School | Cornell SC Johnson College of Business
BCG matrix: investment & returns
Question marks require a lot of cash to hold their share Stars require heavy investment to finance rapid growth, and will turn into cash cows Cash cows are established and successful SBUs requiring less investment to maintain market share Dogs generate enough cash to maintain themselves but do not promise to be large sources of cash.
Sample
Sample is a set of selected people or items from the population. - unbiased sample (random) - biased sample (non-random)
Sampling
Sampling frame is a list of all people or items within a population that can be sampled.
Types Biased Perception
Selective distortion: consumers tend to interpret information in ways which reinforce existing attitudes or beliefs. Selective retention: consumers are more likely to remember messages that closely related to their existing interests, values, and beliefs.
Mission
The mission statement is the company's purpose, namely what it wants to accomplish in the larger environment. - Forging a mission starts with answering - What is our business? - Who is the customer? - What do our customers value? - What should our business be?
Overview of values mission and vision
These concepts are always ignored by small businesses, because - They sound insubstantial and impractical - Without considering corporate values, the mission and vision look like useless slogans. However, companies with clearly communicated, widely understood, and collectively shared values, mission, and vision have been shown to perform much better.
How to develop an appropriate research plan?
Understand the research problem and objectives Select research approaches by considering costs - Decide the research type based on research objectives - Decide the research methods based on costs and funding
When does a need rise?
consumers experience the deprivation of a need internally external stimuli trigger the awareness of a need.
A mission statement should
not be myopic in product terms be meaningful and specific be motivating emphasize the company's strengths contain specific workable guidelines cannot be stated as making profits.
Suppliers impact
product costs product quality product accessibility brand reputation
Unethical marketing practices
unethical targeting undisclosed product information puffery and deceptive advertising unethical appeal in promotion destructive competition (predatory pricing) channel disturbance research manipulation
iClicker: ______ refers to the set of actual and potential buyers of a product or service.
"The Market"
Influencing factors of motivation
- Culture - Subculture - Reference Group
Legal vs. ethical
- Legal regulations are based strictly on what is written in law - - ethical standards are based on human principles of right and wrong.
How do consumers search information?
- Search internally by recalling past personal experiences. If the product, brand, or service is frequently purchased, internal search may be enough to make the decision. - Search externally by collecting information from outside sources.
Brand personality
- Sincerity - Excitement - Competent - Sophistication - Rugged
Why self-reported responses are not enough?
- Social bias or inaccurate memory - Subconscious mind
Suppose we want to know the average height of Cornell male undergraduate students, plus or minus 1 cm. We would like to be 95% confident about our result. From a previous study, we know that the standard deviation of heights in the population is 7.2 cm. In this situation, how many students we need to survey? A. 49 B. 50 C. 199 D. 200
- Standard Deviation is given use formula: z^2*σ^2/E^2 - Z=1.96, σ=7.2, and E=1 - z^2*σ^2/E^2 - 1.96^2*7.2^2/1^2=199.15=200
Strengths and weaknesses
- Strengths are the internal capabilities that may help a company reach its objective. - Weaknesses are the internal limitations that may interfere with a company's ability to achieve its objective. Analyze company's internal environment: core competitive forces branding operations financial performance human resources company-supplier relationship
72% students in the pilot study said they are satisfied with Cornell Dining. How many students should be surveyed to estimate the real proportion of Cornell students satisfying with Cornell Ding, with a 8% wide 95% confidence interval? A. 122 B. 341 C. 484 D. 838 E. None above
- To estimate a proportion with historical data, use formula z^2p(1-p)/E^2 - Z=1.96, p=0.72, E=0.08/2=0.04 - z^2p(1-p)/E^2= 1.96^2*0.72*0.28/0.04^2= 484.04≈485
How many students should be surveyed to estimate the proportion of Cornell students who have taken marketing courses, with a 6% wide 90% confidence interval? A. 115 B. 188 C. 457 D. 752
- To estimate a proportion without historical data, use formula z^2/4E^2 - Z=1.645 and E=0.06/2=0.03 - z^2/4E^2= 1.645^2/4×0.03^2= 751.67≈752
Tips for questionnaire design
1. Be specific: every question should focus on a topic and measure what you want it to measure 2. Questions should be brief 3. Avoid jargon: use vocabulary respondents understand 4. Make questions applicable to the respondent 5. Avoid examples that can introduce bias or "loaded questions" 6. Make sure the respondent can answer the question 7. Avoid ambiguous words, such as sometimes, frequently, and usually 8. Avoid double-barreled questions 9. Avoid using strong, negative words: people in general hate "forbid" and "lose" 10. Scales used in the questionnaire should be mutually exclusive and collectively exhaustive 11. Balance the use of open-ended vs. closed-ended questions; don't make respondents work too hard 12. Pay attention to the order of questions and options
How consumers process information?
1. Consumers are exposed to tons of external marketing information; 2. Consumers select, organize, and interpret the information 3. Consumers gain knowledge about a concept (product, brand, etc.) using information as cues and restore it as memory 4.Consumers form beliefs and attitudes on the concept.
Macro, Micro, weakness: 1. The United State 1973's oil crisis 2. Undiversified operation model 3. Sluggish aviation market demands in 1970s 4. Emerge and growth of new airlines 5. Weak financial situations of PAN AM 6. Terrorist attacks 7. The Gulf War 8. Lawsuits and regulation fines 9. Air disasters and jeopardized brand reputation 10. Negative changes in the corporate's general strategies 11. Radioactive pollution from the Ukraine Chernobyl disaster in 1986
1. Macro 2. Weakness 3. Macro 4. Micro 5. Weakness 6. Macro 7. Macro 8. Micro 9. Weakness 10. Weakness 11. Macro
Match with BCG Matrix Dell in the global VR device market DJI in the global recreational drone market Nike in the U.S. footwear market Sears in the U.S. retail market
1. Question Mark 2. Star 3. Cash Cow 4. Dog
Which of the following U.S. generations is the most educated to date? A. Lost Generation B. Baby boomers C. Generation X D. Millennials E. Generation Z
???
iClicker: ________ are a type of SBU that often require heavy investments to finance their rapid growth. A.Cash cows B.Question marks C.Stars D.Dogs E.Bears
???
Marketplace
A marketplace is the place buying and selling behaviors occur. It can be either physical or intangible (online). Multi-sided marketplace: an intermediary economic platform having multiple distinct user groups that provide each other with network benefits.13The Hotel School | Cornell SC Johnson College of Business
Market development
A strategy of identifying and developing new markets for its current products. New customer segments - geography: foreign nations, new regions - demographics: age, gender, SES - psychographics: attitude, preference - behaviors: behavioral loyalty, user status
Product development
A strategy of offering remarkablymodified or new products to current markets. modify product features enter new product categories - same customer base - expertise extension
iClicjer: To be the No. 1 leisure airline is the _____ of Southwest Airlines. A.goal B.objective C.strategy D.tactic
A. Goal
Variety-seeking buying behaviors and habitual buying behaviors are consequences of heuristic decision making. A. TRUE B. FALE
A. TRUE
iClicker: The environmental policy is both a political and a natural macroenvironment factor. A. TRUE B. FALSE
A. TRUE
iClicker: New technologies often bring exciting market opportunities to companies. A. TRUE B. FALSE
A. True
A consumer organization in Ohio has challenged the marketing decision of a local firm alleging it to be against the larger social interest. In this instance, the firm is challenged by a _____ public.
A. consumer B. general C. government D. citizen-action E. local
iClicker: The following mission statements of small companies may be imperfect, but which one looks the best? A.We empower students to achieve their dreams in higher education. B.We are an online library selling over a million e-books. C.We sell jumbo, juicy, delicious burgers. D.We are a modern low-cost airline. E.We make cute porcelain figurines.
A.We empower students to achieve their dreams in higher education.
Primary Associates
Advantages: - Specific to the immediate data needs and research topics - more controls - confidential - unique Disadvantages: - time consuming - costly - limited sample size - require more sophisticated training and experience
Secondary Data: Advantages and Disadvantages
Advantages: - time efficient - inexpensive - possible new findings Disadvantages: - rarely consistent with data needs - data quality concerns - measurement inaccuracy - outdated bias - available competitors
Values (B-needs)
Are long-term and core, which companies with the societal marketing concept focus on
Which generations is still the wealthiest generation in U.S. history? A. Lost Generation B. Baby boomers C. Generation X D.Millennials E.Generation Z
B. Baby boomers
Cornell is about to initiate a project to discover students' opinions on Cornell Dining that were overlooked in the past. Cornell should first set the expected error margin and confidence interval, and then use the formula z^2/4E^2 to calculate the sample size in this project. A. TRUE B. FALSE
B. FALSE
iClicker: Strengths are the sum of the internal and external factors that the company may be able to exploit to its advantage. A. True B. False
B. False
Which of the following statements was not a threat for PAN AM? A. New airlines quickly thrived and took away PAN AM's market share B. PAN AM had a very bad financial situation with extremely high debts C. Both the Ukraine Chernobyl disaster and the Gulf War deterred Americans' desire to fly internationally D. PAN AM was suited and fined for its air disasters
B. PAN AM had a very bad financial situation with extremely high debts
iClicker: The pharmaceuticals division of Omni Healthcare holds low market share in a high-growth market. According to the BCG matrix, the pharmaceuticals division of Omni can be classified as a _______ A.star B.question mark C.cash cow D.dog
B. Question Mark
education is measured with three options (bachelor, master, doctor) and height is measured in numbers. What are the variable types of education and height? A.Ordinal; interval B.Ordinal; ratio C.Nominal; interval D.Nominal; ratio
B.Ordinal; ratio
BCG matrix vs. product lifecycle
BCG Matrix: Perfect Bell Graph Product Lifecycle: Curves up then goes down
Generations
Baby Boomers Gen X Millennials GenZ
How can companies grow profits
By increasing market share By adding new business units. Ansoff Matrix: Left-Right: Existing New Bottom-Top: New Existing Bottom Left: Market Development Top Left: Market Penetration Bottom Right: Diversification Top Right: Product development
Which of the following choice decisions is most likely to be a heuristic decision? A. Car choice B. Washer and dryer choice C. Bakery choice D. Furniture choice E. Pet choice
C. Bakery choice
iClicker: CTB is a reseller of Purity Ice Cream. This information indicates that CTB is a ______ of Purity Ice Cream
C. marketing intermediary
iClicker: As a top PC manufacturer with large market share for decades, Dell produces and delivers PCs of competitive quality at lower costs. Dell utilizes a(n) ________ strategy effectively. A. differentiation B. focus C. overall cost leadership D. customer intimacy E. product leadership
C. overall cost leadership
iClicker: Samsung Electronics actively generate new ideas, relentlessly pursue new solutions, and quickly work to get new products to TV market. Which value discipline has Samsung been following to be the leader TV Manufacturer? A. operational excellence B. customer intimacy C. product leadership D. product activation
C. product leadership
iClicker: Consumer Action, a consumer organization, pushed Chase to enhance its fraud-protection. This information indicates Consumer Action is a ______ of Chase. A. customer B. marketing intermediary C. public D. competitor
C. public
iClicker: From 1996 to 2003, IBM's pc business showed the tendency of turning from a _______ business into a _______ business. A.cash cow, question mark B.cash cow, dog C.star, question mark D.star, dog
C.star, question mark
Marketing Process and Values
Companies create value for customers and build strong customer relationships in order to capture value from customers in return.
Selective attention
Consumers are screening out more information than ever - Add blocker is incredibly popular - TV advertising means nothing in the age of the smartphone
Importance of core values
Corporate values are important to business success because they drive the company mission and vision form the company cultures align the organization are at the center of the brand promise motivate and guide employees lead to employees and customers loyalty. Values also lead branding ex.: Coke: More conservative Pepsi: More innovative
4Cs Consumer Centric
Customer Cost Communication Convenience Create products and services on the basis of customers' needs and wants Consider customers' coststo satisfy their needs and wants Provide products and services in ways convenient to customers Communicate with the customers.
What brand personality Toyota presents?
D. Esteem
iClicker: American Express will do almost anything for their customers to build long-term customer loyalty and to capture customer lifetime value, although it charges merchant higher fees than Visa and MasterCard. Which of the following competitive strategies is being pursued by AMEX? A. overall cost leadership B. focus C. product leadership D. customer intimacy
D. customer intimacy
iClicker: After the acquisition, Lenovo's pc business quickly turned from a question mark business into a _______ business; but in recent, it turned into a _______ business. A.cash cow; dog B.star; dog C.cash cow; question mark D.star; cash cow
D. star; cash cow
iClicker: Phone XS is an example of customer _____
Demand
iClicker: Amor, a successful brand of women's clothing, recently introduced a line of fitness equipment. This is an example of ________. A.market penetration B.market development C.product development D.diversification
Diversification
BCG matrix: growth & share
Down to up: Market Growth Left to right: Relative Market Share Bottom Left: Dogs Top Left: Question Marks Bottom Right: Stars Top Right: Cash Cows
D-needs
Dynamic and contextual, which companies with the marketing concept focus on
Which is NOT part of the company environment that influences marketing decisions? A. strategy B. finance & accounting C. information & engineering D. manufacturing & operations E.retailers
E. retailers
Consumers' black box
External Stimuli --> Black Box --> Buyer Responses
Personality and international tourism
Extraverted tourists show higher intentions of traveling abroad to exotic regions. Neurotic tourists perceive higher risks for traveling internationally.
iClicker: Compared to the traditional 4P marketing mix model, 7P and 4C are better because they are customer-centered models. A. True B. False
False
iClicker: McDonald's views marketing as the process of finding and retaining profitable customers by providing them with the quality food they want. McDonald's practices societal marketing.
False
Which of the following option is not an example of a market?
Farmers Market
marketing intermediaries
Firms that help the company to promote, sell, and distribute its goods to final buyers resellers physical distribution firms marketing services agencies financial intermediaries
Trendy Business Models
Freemium: the basic version is free but the premium version is charged. Popular in: gaming, dating, and music Peer-to-peer (P2P): platform whereby two individuals interact directly with each other without intermediation by a third-party. Popular in: Sharing economies food delivery
Abraham Maslow
Humanistic psychologist: "Every person has a strong desire to realize their full potential, to reach a level of self-actualization" - The tenth most cited psychologist in the 20th century - Best known for his "hierarchy of needs theory" (1943)
How to decide if a market is new?
If new buyers are large in size and different enough from current buyers in terms of their geo-demographics, psychographics, or behaviors, they form a new market. Simply, only a small overlap.
Unexpected needs trigger impulse purchase
Impulse purchase is an unplanned decision to buy a product or service, made just before a purchase.
Purchase intention and actual choice
Just because consumers having strong intention to purchase with a brand does not necessarily lead to an actual final transaction
Laddering
Laddering is a type of probing. It is based around the idea that values determine the benefits that we seek, which in turn determines which features we seek when buying products. Features: facts of a product/service Benefits: the direct result of a feature Values: the drives for a customer to making the buying decision.
iClicker: Madeline always feels like she is never included in group activities or social events. She has become depressed and lonely. According to Maslow, which category of needs has not been fulfilled? A.Esteem B.Love/belonging C.Self-actualization D.Physiological E.Safety
Love/Belonging
Microenvironment
Microenvironment consists of all actors close to the company and specifically affects a company, including specific suppliers marketing intermediaries publics customers competitors
Needs, Wants, Demands
Needs: state of felt deprivation Wants: the form of human needs take as they are shaped by culture and personality Demands: human wants that are backed by buying power
Important Notes on Pyramid: Is it strictly fixed?
No! Needs are organized in a hierarchy of prepotency in which more basic needs must be more or less met prior to higher needs. - the order of needs may be flexible based on external circumstances or individual differences; - the human brain is a complex system and has parallel processes running at the same time, thus different levels of needs can occur simultaneously - most behavior is multi-motivated, that is, simultaneously determined by more than one basic need.
How to eliminate the social influence in FG?
Nominal group is a refined version of focus group. It fosters equal participations thus provides more ideas. How to conduct a nominal group? 1. silently generate ideas on paper 2. share ideas one by one 3. discuss in group without criticism 4. vote and rank.
Information load: the more, the better?
Not Necessarily Consumers need certain amount of information to seek and compare values in prospective products. Consumers have limited cognitive processing capacity. Too much information leads to an information overload. Consequently, a reduction in decision quality will occur.
Porter's five force analysis
Not used to analyze microenvironment! but whole industry Threat of new entry Supplier Power Threat of substitution Buyer Power Center: Competition rivalry
Alternatives
Observation Neuro marketing
Personality
Openness: how open a person is to new ideas and experiences Conscientiousness: how goal-directed, persistent, and organized a person is Extraversion: how much a person is energized by the outside world Agreeableness: how much a person prioritize others' interests Neuroticism: how sensitive a person is to stress and negative emotions.
Relationship Between Organizational and Core Values
Organizational values consist of peripheral values and core values: Core values are the innermost core of the brand and guide the company's effort Core values are then translated into customer utility or added values for various target groups Customers then bring economic values back to the company.
Organizational and Core values
Organizational values: or corporate values, are the beliefs, rules, or religions of the company Core values "soul of the brand" - # of core values for a company: 3-5 - They drive the formation of the company's mission and vision - They are beacons in brand management.
How values mission and vision fit into the strategic planning process
Part of marketing strategy and tactics
Deficiency Needs (Maslow) from bottom to top
Physiological Needs: the physical requirements for human survival Ex: air, water, food, sleep, clothing, shelter, sex, etc. Safety Needs: the need for security and protection Ex: stability, employment, health, financial savings, insurances, etc. Love and Belongingness Needs: the need for interpersonal relationships Ex: intimacy,friendship,trust, acceptance, receiving and giving affection and love, etc. Esteem Needs: the need for respect or reputationEx: freedom, achievement, status, social power, etc. D-needs = basic needs + psychological needs
Production Concept
Premise: -Consumers favor products that are available and affordable. Result: - Marketers focus on improving production and distribution efficiency. - Marketing myopia (short-sighted approach that focuses on the fulfillment of the company's immediate needs)
7ps and when they're used
Product Price Place Promotion People Process Physical Evidence
4ps
Product, Price, Place, Promotion
Publics
Publics include any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives, including financial media government citizen-action internal general local
Reference group
Reference group is the basis of reference in making comparisons. It is the group to which an individual relates or aspires to relate himself or herself psychologicall
Two types of data
Secondary data is information that already exists somewhere, having been collected for another purpose. - Ex: databases, census, internet, library, industry reports, etc. Primary data is information collected for the specific purpose at hand - Ex: interviews, surveys, experiments, etc.
Growth needs (Aka; B-needs or being needs)
Self-actualization Needs, at the top layer of the pyramid,is a desire to become everything one is capable of becoming. To realize personal potential: writers, artists, musicians, athletes To seek personal growth: monks and sisters, PhD To have peak experiences: inventors, extreme sport athletes, world travelers
Kahneman suggested two different ways the brain forms thoughts
System 1: Fast, automatic, frequent, emotional, stereotypic, unconscious. System 2: Slow, effortful, infrequent, logical, calculating, conscious.
Marketing environment
The marketing environment is the set of actors and forces outside marketing that affect marketing management, by influencing feasibility market size market structure Macro Micro Internal
Selling vs. marketing concept
The selling concept takes an inside-out perspective. In contrast, the marketing concept takes an outside-in perspective. Selling Concept: - Start Point: factory -Ends: Profit through sales volume Market Concept: - Start Point: Market - End Point: Profits through customer satisfaction
Evaluation of alternatives
The traditional thought: consumers make decisions rationally, therefore - they do extensive research and comparisons among different products - they calculate the utility of each option - their decision is not influenced by emotions.
Maslow's Hierarchy of Needs
Top to Bottom: Self-Actualization Esteem Love/Belonging Safety Physiological
In some occasions, a government agency such as FAA can play the role of a microenvironment actor and a macroenvironment actor simultaneously. A. TURE B. FALSE
True
iClicker: True or False: Engaging customers and managing profitable customer relationships is the simplest definition of marketing.
True
Values 2 types
Values for customers, or values that customers are pursuing for, are fulfillments of their various needs, wants, and demands Values companies get from customers: -direct revenue -brand equity -customer population
How consumers perceive the information?
What is perception? Perception is the organization, identification, and interpretation of sensory information in order to represent and understand the presented information, or the environment. 2 perception processes: Processing the sensory input Connecting this input with expectation and knowledge.
Are needs and values closely linked?
Yes
Should the sample size be rounded up?
Yes always!
What could a company's values suggest?
business models that companies are following.
Sample size when you know the population
z^2*σ^2/E^2
When you know population proportion
z^2p(1-p)/E^2 or z^2/4E^2 α: confidence level (90% ~ Z=1.645, 95% ~ Z=1.96, 99% ~ Z=2.58) σ: standard deviation OR p: proportion E: error margins (half of confidence interval: in % or other specific unit)
