MKTG 300 FINAL

Why would Unilever not want you to connect the dots between their products (i.e., distinct branding)?

- Because Unilever has distinct branding of their different products. For example they own Ben and jerrys and Dove. Dove is a soap and cleaning brand compared to B&J is an ice cream brand. So they would not want their prospective consumers to associate those two products together. - Don't want to interfere with consumers' perspective on individual products

B2B2B2B

- Bodies: Target audience - Beliefs: Perception, Importance - Behaviors: trial, purchase frequency, switching - Bucks: revenue, share

Good Segmentation Variables

- Measurable (ex. How many people need left handed products) - Generates an accessible target audience (Consider those who want privacy) - Generates an substantial target audience (Size) - Tied to core competence

How is segment composition constrained by MO/SOV decisions?

- People outside the category = A/SD - Our customers = R/SD - Competitors customers = A/ES - R/ES = Multibrand users

Main variable

- Primary category benefit, or point-of-parity - The benefit necessary to compete in a category - Category leader dominates on the main variable

attributes of beneficial goals

- Quantifiable (measurable) and time dependant - Ranked in importance (prioritized; single-minded) - Realistic and integrated (consistent)

What are the attributes of beneficial goals

- Quantifiable (measurable) and time dependent - Ranked in importance (prioritized; single-minded) - Realistic and integrated (consistent)

distinction between selling and marketing

- Selling focuses on seller needs - Marketing focuses on buyer needs

If Apple stopped airing commercials tomorrow, what effect would that have on short-run profits? On long run profits?

- There would be a short term gain because in the short term Apple is a very well known brand but in the long term it will be a loss because consumers will no longer be updated on their new and current products. - Will not acquire new customers

Why Segment?

- To understand whose needs within-groups are similar & whose needs within-group are different (heterogeneous population & creates homogeneous-like segments) - Can engage in Mass Marketing (Mass production, distribution, promotion of 1 product - Increase efficiency of marketing efforts & find optimal balance between size and probability of conversion

Retention Pro/Cons

- Very efficient (pro) - Safe base: 20% of brands customers account for 80% of sales (pro) - Risk of neglecting innovation & growth (con) - Limited aim: grow profit at the margin (con)

Acquisition Pros/Cons

- Very expensive (up to 5x as expensive) - con - Risk of neglecting loyal customers - con - Risk of brand dilution if appealing to wrong new customers - con - Fundamental growth - pro

Dynamic variables

- points-of-difference - The benefit(s) that a player offers above and beyond what others offer, in particular, to earn share from leader - Can leverage consumer knowledge or perception of a well-known category - Emphasize differentiating variable to immediately show how its superior to competitors

When pursuing an "image" objective in promotion, we must: A. Already have achieved awareness B. Already have achieved the information objective C. Focus only on pursuing the image-objective, because pursuing multiple objectives will dilute the image of our brand D. A and B E. A, B, and C

A and B

Examples of an acquisition/stimulate demand strategy include: A. A leading car company emphasizing the benefit of "performance" to increase sales B. Arm and Hammer emphasizing multiple uses other than baking (e.g., cleaning) for baking soda C. Orange Juice emphasizing that a "breakfast without orange juice is like a day without sunshine" to increase sales D. A, B, and C E. A and C only

A and C only

Perception and importance plot

A benefit plot that illustrates the relative importance of the key benefits in the market space and how customers perceive each of the brands' performance on those key benefits. It shows customer perceptions of each brand in the market space, designated as our brand and competitors A through C using a scale 1-10(good price, ease of use, customization, availability, and convenience)

What is place utility?

A consumer who buys his coffee from a vending machine is benefited from this utility, when the nearest Starbucks is on Atherton Street (a bit too far)

In the Microfridge case, what was the Marketing Objective of the company?(new company) A. Retention B. Earn share C. Stimulate demand D. Engineering E. Acquisition

Acquisition

What type of strategy is having a target audience that is already in the category but using another brand, product, or service type within it?

Acquisition/Earn Share Strategy

Which of the following changes would cause breakeven volume to decrease? A. An increase in fixed costs B. An increase in unit variable costs C. An increase in unit margins D. A decrease in price None of the above

An increase in unit margins

An example of PULL marketing would be: A. Apple selling iPods directly to music clubs with no intermediaries B. Apple focusing its iPod marketing efforts on its retail partners C. Apple providing promotional materials to retailers D. Apple removing its advertising campaigns from the media due to low scales E. Apple advertising iPods to consumers who then demand ipods from retailers

Apple advertising iPods to consumers who then demand ipods from retailers

What is attitudinal segmentation?

Attitudes, thoughts, feelings about the present

If a hotel offers cable TV/free toiletries in addition to beds/bathroom in response to increased comp. Between other hotels, these extra customer benefits are: Augmented product Potential product Expected product Generic product

Augmented product

Break Even Analysis

Break even quantity = Fixed costs/ (sales price per unit - Variable cost per unit)

What is intangibility?

Can't be touched. For services, this causes some service providers to come up with jingles. Some people write down their name on a receipt because of this.

When it comes to service delivery what is most important for firms to achieve?

Consistency in the service they provide.

What is the single-minded statement that contains the essence of the value proposition for the target audience called?

Consumer Proposition

According to packaging research discussed in class, if I'm looking for a flattering, filling cookie, which package below is more likely to appeal to me? A. Cookie at the top left corner B. Cookie at bottom right corner

Cookie at bottom right corner

Which of the following is NOT an example of an acquisition activity? A. Broad-scale introductory advertising campaigns B. Social marketing campaigns dedicated to creating initial "buzz" C. Trial coupons and sampling D. Creating a loyalty program to encourage customers repeat their purchase

Creating a loyalty program to encourage customers repeat their purchase

Which of the following is NOT an example of an unethical decision in the Big Picture? A. Inappropriate targeting B. Misleading advertising C. Price fixing D. Earning share E. Stereotype

Earning share

Attributes that can be evaluated only after consumption:

Experience Attributes

According to research discussed in class, price increases are most likely to be tolerated by consumers when the producers' unit variable costs decrease. True False

False

Brand Value is the same as brand equity. True False

False

It is always beneficial to provide service that exceeds expectations. True False

False

Offering consumers more options is always better. True False

False

The STP steps are non-sequential processes that each step does not depend on the preceding one. True or False?

False

The primary objective of most communications campaigns is to immediately change the behaviors of the consumers. True False

False

When making media buying decisions, marketers should prioritize reach over frequency. True False

False

All advertising efforts are focused on changing the behaviors of consumers: True False

False (ads can have multiple objective, this is one)

AMC wants to use a behavioral dimension to segment movie customers. Which of the following is a possible option for AMC?

Frequency of movie rental (Behavioral)

marketing myopia

Generally, the further we move from defining core business in terms of products or production process, the better off we'll be when a company views marketing strictly from the standpoint of selling a specific product rather than from the standpoint of fulfilling customer needs

Which of the following is FALSE regarding goals? A. Goals might lead to unethical or illegal business practices and (overly) focus attention B. Goals are set to ultimately inspire the employees C. Goals serve as a decision aid and help define performance criteria D. "Provide nice quality products" would not be a helpful goal statement E. Goals should be measurable and single-minded

Goals are set to ultimately inspire the employees

What can the gorilla / basketball video teach us about goals (Monkey Business Illusion; Slide 24)?

Having goals can be a good thing to focus on, but many times we are so focused on that one goal that we miss out on other important/relevant information that can help us pursue a new goal that would also work

What are awareness and information?

In order to pursue an "image" objective for an advertisement, these objectives must be achieved in advance.

Logos and jingles help companies offering services overcome which of the following challenges? A. Inability to inventory B. The human element C. Simultaneous production and consumption D. Hard to achieve consistency E. Intangibility

Intangibility

Which of the following would NOT be a true statement about strategic assets? A. It is a resource of the company that is supported by a core competence and critical to differentiating the brand B. Walmart's low cost would be its strategic asset, supported by its skills in logistics C. Core competence generally leads to strategic assets which in turn generate benefits for consumers D. It is a skill that uniquely distinguishes one company from another, such as Mcdonald's skill at creating a fun family dining experience E. It includes tangible and intangible assets, or specialized staff as well

It is a skill that uniquely distinguishes one company from another, such as Mcdonald's skill at creating a fun family dining experience

What is push marketing?

Manufacturer uses its sales force, other means to induce intermediaries to carry, promote, and sell the product to end users when engaging in this market.

Which of the following examples best illustrates the notion of time utility? A. Doug renting movies from Blockbuster instead of the local video store because of its wider selection of horror movies (Product Utility) B. Wyle E. Coyote buying his coffee from a vending machine because the nearest Starbucks is on Atherton Street. (Place Utility) C. Mufasa ordering pizza from Dominos because he likes the fast delivery time D. Both A and B illustrates time utility E. None of the above illustrates time utility

Mufasa ordering pizza from Dominos because he likes the fast delivery time

Which of the following statements are true? A. The five-box positioning statement is only relevant when the current belief is explicitly negative B. Traditional positioning statements typically specify what consumers currently believe C. Targeting a potentially vulnerable group of consumers is certain to offend people D. Marketing a dangerous product is certain to offend people E. NONE OF THE ABOVE ARE TRUE

NONE OF THE ABOVE ARE TRUE

Stimulate Demand

New Users - Method: bring ppl into the category who weren't previously - Tactics: - Increase awareness of category as a whole - Provide new benefits not previously available - Concerns: Category leader usually gains the most New Volume - Method: convince current users to buy more - Concerns: more efficient than winning over new ppl

Why can't Nike add Nike Chicken to its product line? (Flexibility issue of umbrella branding)

Nike can't add chicken to its brand because it doesn't correlate with the clothing brand. They are in two completely different markets. If nike wanted to start Nike chicken they should make a completely new brand for its chicken.

The benefit provided by channel members (especially the intermediaries) that provides convenient access to products is known as: Time Utility Product Utility Cross Distribution Place Utility

Place Utility

Variables that combine personality, values, attitudes, interest, and lifestyles of consumers for segmentation purposes are referred to as what?

Psychographic variables

Which of the two Marketing Objectives (MO) could be an indicator of long-term viability of a firm?

Retention

Josh is buying new Nike running shoes as he understands the brand is well recognized by other people. He is not 100% sure if the quality is much better than shoes from other brands, but he is willing to pay the higher price for the pair. Which of the brand functions has Nike successfully established here?

Source of differentiation (brand equity)

How is segmentation different from targeting?

Targeting uses selecting, while segmentation uses grouping

What are decreasing UVC, increasing price, & increasing perceived value?

The 3 ways in which a marketer can increase the producer surplus.

For years, the manufacturers of Professor Kang's Unflavored Decaffeinated Soda have sold their product directly to CVS, who sell each six-pack for their cost plus a $1 mark-up that they keep, CVS undergoes a management change, and now demands a $1.25 mark-up per six-pack, but refuses to raise the price consumers pay. Which of the following is a result of the CVS policy change? A. The Unit Margin remains unchanged B. The Unit Margin increases C. Fixed costs increase D. The Breakeven Volume increases E. Unit Variable Costs decrease

The Breakeven Volume increases

To raise awareness, a company decides to run a commercial that describes its products and mentions the product name as much as possible. In fact, many people who watch the commercial are annoyed with how often the product name is mentioned. Based on this commercial, we can most confidently infer: A. The company's source of volume is earn share B. The company's source of volume is stimulate demand C. The company's marketing objective is acquisition D. The company's marketing objective is retention E. The company is attempting to generate head loyalty

The company's marketing objective is acquisition

5 Box Positioning Tool

The distance between current beliefs and desired beliefs dictates how costly it will be (time & money) to convert beliefs

In the bull's-eye model, what type of benefit/variable determines whether or not the product is considered an augmented product? A. A new core benefit B. A new category main variable C. The dynamic variable D. The potential benefit E. The company's cutting edge technology

The dynamic variable

Which of the following is/are true about vertical integration? A. Starbucks' decision to purchase a coffee farm in Costa Rica was their attempts to engage in forward vertical integration B. The key advantage of integration is the increase in power and control it confers to the manufacturer. C. Greater channel depth is always better than having minimal integration. D. A and B E. A, B, and C

The key advantage of integration is the increase in power and control it confers to the manufacturer.

By which of the following is channel breadth determined in general? A. The number of suppliers in a chain B. The degree to which a channel member controls a portion of the channel C. The number of channel members in the chain D. The number of distribution outlets at which the product is available

The number of distribution outlets at which the product is available

When conducting a bodies-to-beliefs-to-behaviors-to-bucks analysis, which quantity will typically be the smallest? A. The total number of potential bodies B. The total number of bodies who change their behavior C. The total number of bodies who change their beliefs D. The quantities in B and C are generally equal E. Impossible to say with certainty - it differs from situation to situation

The total number of bodies who change their behavior

What kind of branding strategy would a pharmaceutical company prefer (p. 36; product risk)?

They would want to use distinct branding so they can have maximum flexibility when creating new drugs, Umbrella branding, because the focused product is drugs, and the market category will always be drugs. ***I think its distinct because of the product risk*** Like the Nike example, they wouldn't enter a different market like chicken

What is familiarity?

This causes us to like candidates when their photos are blended with our own.

What is product placement?

This is a way to respond with consumers zipping & zapping through the advertisements. (EX. In the movie "Transformer" we saw this 47 times).

What is short and direct channel length?

This is channel length for companies like Dell.

Soft drink manufacturers appear to be advertising nothing more than their brand name even though it's clear they already have great brand recognition. What objective is pursued here? A. Information B. Behavioral C. Basic Awareness D. Top-of-Mind Awareness E. Image

Top-of-Mind Awareness

A coupon that says "save up to $50 + free delivery on your first order" exemplifies:

Trial pricing - acquisition

FIJI Water markets that its state-of-the-art bottling facility was designed to protect the purity of water at every step of the production process. This marketing tactic emphasizes a credence attribute. True False

True

_____ are relatively more efficient than ______ but offer less flexibility. A. Hybrid brands, umbrella brands B. Collective brands, distinct brands C. Umbrella brands, distinct brands D. Brands, logos E. Distinct brands, umbrella brands

Umbrella brands, distinct brands

Psychographics is used for all of the following EXCEPT

Understanding how consumers compare themselves to other consumers

When is it beneficial to segment the market?

When the incremental value from customizing is greater than the cost of developing separate offerings for each segment

What is loss leader pricing?

When you offer a good at or below cost to entice customers to come in and buy other, high-margin goods.

Main and dynamic benefit plot

a benefit plot that illustrates the basis of competition in a particular market space by showing target customers' perceptions of the different brands' performance of the main and dynamic variable

Umbrella branding

a family of products that all deliver the same higher-order benefit - Each product may deliver a unique functional benefit - The most efficient branding strategy - Brand logo always shown on products, explicit Ex: Toyota with its different models

What is a brand?

a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller and to differentiate them from those of competitors

Core Competence

a skill that leads to a sustainable competitive advantage and requires significant resource investmen

Low share of wallet

barnacles often don't care about brand and just go where there are coupons/deals

core business

central focus of a company's activity

Current beliefs

determine/constrain what we need to say to the target audience Should be congruent in the end

Distinct branding

firms offer several products with distinct meanings, brand names, and logos, each brand delivers different benefit, targeted to different audiences - The most flexible strategy - Main logo (hidden), independent logo (explicit) - More flexible, can enter different markets but less efficient than umbrella branding - Each brand is its own fundamental entity with different separate strategic analysis

Hand Loyalty

habitual repurchase, low interest in product information, and low brand commitment

Happy hours help companies offering services overcome which of the following challenges?

inability to inventory

What is Augmented Product?

layer in the bull's eye model of the product that emphasizes the dynamic variable

What is acquisition bias?

many companies devote a majority of their promotional budget to acquiring new customers - But most of its revenue and profit comes from current customers - By over-investing in acquisition efforts, companies often end up replacing profitable (existing) customers with less profitable (new) customers

Consumer proposition

move from current beliefs to desired beliefs

What are search attributes?

of the three attributes that can be emphasized for a product, this can be evaluated prior to consumption. An example of this attribute would be price.

Hybrid branding

often not the result of a coherent, intentional strategy, but rather tactical decisions that over time results in an incoherent product portfolio - Can be efficient and flexible, but can sometimes lean towards one more than the other

Unit Margin/Contribution

price - unit variable cost

Head Loyalty

rational attachment to a brand

A firm has decided to target current customers who are users of multiple brands. This approach reflects which of the following? ` A. acquisition/earn share B. acquisition/stimulate demand C. retention/earn share D. retention/stimulate demand

retention/earn share

Targeting

selecting which segments to pursue and market specifically towards them

Low size of wallet

strictly stick to a brand, but only use coupons.,

Who are barnacles?

the ones with whom we've established a long-term relationship, but generally brings low profitability

Heart loyalty

thought of as emotional attachment