Principles of Marketing FINAL Guiding Questions

Dole Foods conducts a rigorous Procurement Process and requires their suppliers to perform many tasks to qualify as a source for food. Why is that so important for their business and how do they make sure they keep improving as a company?

Dole foods is a produce based company, and so they need to ensure that their suppliers are delivering fresh, well kept fruit to them; Always maintains its high quality product standards Improving as a company: started out with just pineapples, now sell all kinds of fruit and vegetables Uses machinery that peels/cuts and packages fruit and vegetables very quickly Uses canning techniques that allows them to be shipped all over the world

How were DuckDuckGo strategist going to take on the big guys like google and facebook? Why did they pick their strategy?

Duckduckgo emphasizes their privacy policy: they are a search engine that does not track what the user searches. Even though they are competing with much bigger entities, they believe that they will be able to attract the right kind of customer who values privacy

Why is it important to recognize the "family" and current changes if you are in marketing?

Because families themselves are their own consumer segment. The family is the most important consumer buying organization in society. Changes in the general family dynamics will change how you market For example in past years marketers would target moms because traditionally they would be making most household purchases, but now there is a shift away from that because of the growing number of dads taking on household management

Lifestyle might be the most accurate way to study and identify groups. Why is it becoming so very important when you study a consumer behavior market?

Because when analyzing a lifestyle you can see spending patterns It profiles a person's whole pattern of acting and interacting in the world When analyzing consider AOI dimensions, activities, interests, and opinions

"Old Rules" talks about "Brand Essence". What is it and why is it vital for a company to understand it?

Brand essence is the heart and soul of a brand - its fundamental nature or quality It is important for a brand to understand its essence so it knows the customers it is marketing towards

"Social Media has gotten nasty" Give an example, is it good or bad? Why? Should there be restrictions?

Ex. Video of FedEx delivery guy throwing customer's package over their fence instead of ringing the doorbell and resulting in a severely damaged computer monitor goes viral. This could be considered a good use of social media because it can highlight unacceptable business practices but social media being used in this way seems to largely defame business' reputations and can cause relatively small negative events to spiral out of control.

What are the 8 element in a marketing plan?

Executive summary Business goals Target audience groups Online marketing - current standing Online marketing objectives Tactics Related posts Comments COULD ALSO BE Executive summary Current marketing situation Threats and opportunities analysis Objectives and issues Marketing strategy Action programs Budgets controls

The General Electric model is leading edge in working with their B2B clients. What kind of marketing programs do they have and how is it helping them compete?

GE uses digital and social media marketing programs Way to bind the two companies together, share inside information and thinking. Get everyone to buy into the same culture, essence Creates a way to share problems and concerns, and thus customer focus in maintained. Promotes Efficient communication between parties, Win- Win environment. Know latest thinking and directions

BCG Consulting uses a "portfolio analysis" methodology for their customers showing "growth share matrix" How does it work and what can you communicate with it?

It is a framework created by BCG Consulting that evaluates the strategic position of the business brand portfolio and its potential. Classified into 4 categories based on industry attractiveness and competitive position **look at picture***

What is a "value-chain" analysis? Why is it important to always perform one for a company?

It is a process where a firm identifies its primary and support activities that add value to its final product and then analyze these activities to reduce costs or increase differentiation.

Five Force Model by Michael Porter analyzes the broader scope of an industry and its' competitors? Why is this important and vital for a Chief Marketing Strategist to consider?

It is important because it analyzes the competitive rivalry, bargaining power of suppliers, bargaining power of customers, threat of new entrants, and the threat of substitute products or services of a company

Define "Marketing Mix" and why is it important to a strategist to understand?

It is the set of actions or tactics that a company uses to promote its brand or product in the market 4ps: price, product, promotion, place

When might a business desire fewer customers over more customers in developing their marketing plans?

It is very expensive to have quality relationships with lots of people luxury marketing: having a higher value with limited production

How do Business Buyer Behaviors vary in their decision process and decision criteria?

Like consumer buying decisions, business buying decisions are affected by a incredibly complex combination of environmental, interpersonal and individual factors, but with an extra layer of organizational factors thrown into the mix Environmental factors: the economy, supply conditions, technology, regulation, competition and culture/customs Organizational Factors: Objectives, strategies, structure, systems, and procedures Interpersonal factors: influence, expertise, authority, dynamics Individual Factors: Age, job position, motives, personality, preferences, buying style

How does "subculture" play a role in understanding the Consumer? What is a Total Marketing Strategy?

Many subcultures make up important market segments, and marketers often design products and marketing programs tailored to certain subcultures and their general needs The three main subcultures mentioned in the book are Hispanic american (family oriented and price sensitive), African american (motivated by quality and selection), and Asian american (well-educated, brand conscious) Total market strategy: Integrating ethnic themes and cross-cultural perspectives within a brand's mainstream marketing, appealing to consumer similarities across subcultural segments rather than differences

How does the corporate B2B buying process differ from the B2C process? What steps are different in each?

Business Buyer markets involve larger purchases and more dollars than B2C markets Far fewer, but larger buyers in the B2B market Many sets of business purchases are made for only one set of consumer purchases (Good Year Tire example) Business markets have an inelastic and more fluctuating demand, especially in the short run B2B buying process involves more decision participants and a more professional purchasing effort, as they face more complex buying decisions than do consumers B2B demand is a derived demand--it is ultimately derived from the demand for consumer goods In the business buying process, the buyer and seller are often more dependant on each other, which is why B2B marketers must work with buyers throughout all stages of the buying process (including post-purchase operations)

What is a buying center? How do businesses use them and why is it important for marketing to understand the dynamics of the process? Who are the participants?

Buying Center: decision making unit of a buying organization that consists of all people and units involved in the business purchase buying decision process Participants include users, influencers, buyers, deciders and gatekeepers (pg 168) IT is important for marketers to understand the B2B buying process in depth and also know the client very well in order to provide a complete solution through solutions selling

The new trend of "customer-generated marketing" has had a big impact on companies marketing plans and messaging. What is it?

-Brand exchanges created by consumers themselves--both invited and uninvited by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers. -On blogs, social media, review websites

The "Bottled Water" industry was created as a "perfect storm" of several societal factors coming together 2002-2005 that lead to great success and growth. What are they?

-Every Arab country in the Middle East had water scarcity crisis -Region needed to double amount of water compared to past -High disposable income, easy market access for suppliers, increasing health awareness contributed to increased demand in bottled water industry

Ordering and wording can skew a questionnaire. How does it do that?

-Questions that are difficult or personal can cause the respondent to become defensive and cause their opinions be skewed by their attitude. Therefore, questions should be placed in logical order so as to not confuse the respondent causing their responses to change. Researchers should also use care in the wording and ordering of questions. They should use simple, direct, and unbiased wording. Questions should be arranged in a logical order. The first question should create interest if possible, and difficult or personal questions should be asked last so that respondents do not become defensive.

Describe elements of Buffalo Wild Wings marketing strategy. What is the key to their success?

-Revolves around the B-Dub experience -Utilize restaurant as a total eating and social experience (watch sports, cheer on teams, meet new friends that are into the same thing) -Designs restaurants to imitate stadium experience. -Appeals to avid sports fans as well as families -never rush guests, ecourage people to stay long periods of time and enjoy the experience

Why was the ALS Ice bucket challenge so successful?

-Was structured as a challenge, encouraged people to share it and make friends participate -Utilized real time marketing using power of social media -Celebrity endorsements -No money required up front

What is a "focus group" and why would you use one?

-a focus group is when a small group of people meet with a trained moderator to talk about a product, service, or organization. It can be very useful in order to gather important information on a product or how people perceive a company's brand or product. It allows the company to hear opinions from possible customers.

In non-probability sampling, what is the difference between convenience, judgement, or quota samples?

-convenience- the researcher selects the easiest population members from which to obtain information -judgment sample- the researcher uses his or her judgment to select population members who are good prospects for accurate information -quota sample- the researcher finds and interviews a prescribed number in each of several categories

Name four steps of Market research. Why is step one most critical?

-defining the problem and research objectives: this is the most important step because it guides the entire research process -Developing the research plan for collecting information -Implementing the research plan- collecting and analyzing the data -Interpreting and reporting the findings

Customer Relationship Management relies on good measurement "touchpoints". What is a touchpoint analysis and what does one discover from a TPA?

CRM: Managing detailed information about individual customers and carefully managing customer touch points to maximize customer loyalty. By using CRM to understand customers better, companies can provide higher levels of customer service and develop deeper customer relationships. They can use CRM to pin- point high-value customers, target them more effectively, cross-sell the company's products, and create offers tailored to specific customer requirements. A touchpoint analysis analyzes each interaction with the customers and clients and the company. Therefore, the company can see where each customer saw their ads or purchased their products and can target these people in order to build customer loyalty. Customer loyalty is the main reason for TPAs as the company wants to build as much customer loyalty as possible.

What is the advantage of a social media center?

-the advantage of a social media center is being able to respond personally to people's complaints or concerns that they post. This allows companies to reach their customers on a more personal level and be able to see customers reactions and thoughts on their products almost immediately

Michael Porter described three basic forms of competing - Cost, Differentiation and Niche? What are each strategy and what are the advantages and disadvantages of each?

Cost - no frills The most cost efficient way is not always the most quality Differentiation - uniquely desirable products and services I don't really see a downside to differentiation Niche - offering specialized service in a focused market Sometimes a market that is really small has trouble surviving because it doesn't appeal to a large enough group

How should Marketing Departments and Public Relations handle "crisis" situations?

Crisis Situation: when an event occurs that has a significant effect on the company's reputation or brand essence; bad word can spread quickly because of the increased use of social media Marketing departments should have a crisis management plan in place to implement in case of a crisis To ensure a crisis does not arise, a company should monitor their brand closely using every avenue of digital and social media A plan should be in place so the Marketing and PR departments can issue a quick response (speed is key) They should respond to everyone affected directly by the crisis first and then move on to the general public They should be genuine and honest their statements

Outline the factors that Influence Consumer Behavior and give examples.

Cultural, the set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions. Ex Culture, Social class, Subculture Subculture: a group of people with shared value systems based on common life experiences and situations (nationalities, religions) Social, factors that are brought from who a person is surrounded by. Ex: Groups and social network, family, roles and status Personal, factors that are created from the actual physical needs of a person. Ex: Age and lifecycle stage, occupation, lifestyle, personality and self-concept, economic situation Physiological, factors that are created from the consumer's state of mind. Ex: Motivations, perceptions, learning, beliefs, and attitudes

Questionnaires can be misleading when using open-ended or close ended questions . Give an example.

A closed ended question can be answered with a yes or no, open ended needs more information For example: are you going on vacation this summer vs. what are your summer plans Open-ended questions are especially useful in exploratory research, when the re- searcher is trying to find out what people think but is not measuring how many people think in a certain way. Closed-ended questions, on the other hand, provide answers that are easier to interpret and tabulate.

How does a "value proposition" help the working relationship in a marketing exchange?

A company must decide how it will serve target customers-- how it will differentiate and position itself in the marketplace. A brand's value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs.

What is a value delivery network?

A network composed of the company, suppliers, distributors, customers who partner with each other to improve the performance of the entire system in delivering customer value

What is a SWOT analysis and what can it reveal?

A strategic planning technique that helps a person or organization identify strengths, weaknesses, opportunities, and threats related to business competition or project planning

Briefly describe Maslow's Hierarchy of Needs in relation to Consumer Marketing Insight.

A triangle of needs, only when a lower level is fulfilled will a person move towards the next tier Top Self-actualization (self development and realization) Esteem (self esteem, recognition, and status) Social (sense of belonging, love) Safety (security, protection) Base Physiological (hunger, thirst)

"Alternative Buying Evaluation" is an important process brand marketing teams study. Why and what would one learn?

Alternative evaluation: The stage of the buyer decision process in which the consumer uses the information to evaluate brands in the choice set It is very valuable for marketers to learn what traits between brands are the most important to consumers, so that they can understand how to better appeal to consumers over their competition.

Many things affect a "buying decision". "Attitude of others" and "unexpected situational factors" occur that might alter your choices. What are they and how can they have you change?

Attitudes of others: Other people, who are not directly involved in the purchase, may have a large influence on the buyers behavior Unexpected situational factors: Factors that suddenly change a person's values when getting a product. For example, if the economy declines, a person may value affordability more than comfort

Harley Davidson Motorcycles are an "Iconic" Brand. What are the characteristics of their consumer, their behavior and the marketplace? How does Harley "communicate" to target audience?

Currently 2/3 of riders are older caucasian males, but the company is trying to expand to be known and used by anyone who wants a quality motorcycle Their current users are known for their fierce loyalty to the brand The brand is known for promoting the traits of Freedom, independence, power, and authenticity The brand holds events like anniversary celebrations to celebrate returning users and captivate new ones

"Customer Lifetime Value" and "Customer Equity" are two vital concepts each company needs to understand. What implications do they have for building marketing plans and strategy?

Customer Lifetime Value: the value of the entire stream of purchases a customer makes over a lifetime of patronage Customer Equity: the total combined customer lifetime values of all of the company's customers Value of company comes from current and future customers Companies not only want profitable customers but they want to retain them for life See chart on page 22 of Strangers, Barnacles, Butterflies and True Friends

Proctor and Gamble are Strong Advocates of treating their customers like partners. What are they doing to demonstrate that and how do they make sure their clients are successful?

P&G created CBD (career business development) - function is to integrate the customers and partners into the P&G network. Make sure the suppliers and product channels are successful In CBD you will develop your strategic selling skills by building diverse, collaborative relationships with P&G's multi-functional team members Creates a Win-win situation This model is a costly one, but once integrated it can save money. Reduced mistakes and better service, more efficiency Divestment is a management statement. If you can't add value, spin off. Plus, management focus and investment in growth and adding value to the Brand.

Patagonia uses the slogan "conscious consumption" and "don't buy this jacket" what was their strategy?

Patagonia's purpose was to raise awareness of and participate in the 5R's: reduce, repair, reuse, recycle, reimagine They were promoting the message that everything we but has an environmental cost and that we need to leave our world inhabitable for our kids

What different groups or ideas are present in a "marketing information systems"?

People and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights. -assessing information needs -internal databases -marketing intelligence -marketing research -analyzing and using information

How has the "great recession" affected marketing and what changes have come about?

People are focusing more on getting a good value from their purchase. The example in the book was that Target shifted the focus on their slogan from expect more, to the pay less side

Big Data often scares many customers. Why is that? What can go wrong? What are the positives of having Big data systems available to companies?

People are scared of big data because they do not like companies taking and selling their personal information to other companies. People are afraid of what can go wrong and the possibility of their information being taken advantage of. Companies can take advantage of their personal information in order to target specific people. Companies can be hacked and people's personal information can be stolen in order to commit fraud by using their personal information. However, the positives of companies having this data is being able to provide a better more personal service to tailor to the specific customer, allowing the customer to have a better experience.

ESPN is part of the Disney Portfolio, How does it affect their business and their portfolio?

People associate disney with a family atmosphere, so integrating ESPN into the company makes ESPN meet certain standards. Unfortunately, that means the company and Disney are judged more harshly during scandals like John Skipper resigning due to a cocaine addiction

The "Rate of Product Adoption" varies from person to person. Why is that and where do you usually profile? Name the five stages or types of adopters.

People vary in willingness to try new goods or experiences -stages of the adoption process: Awareness: When a consumer first learns about a product Interest: When a consumer seeks information about this new product Evaluation: When a consumer considers whether or not to try the product Trial: When a consumer tests the product Adoption: When a consumer decides to make full and regular use of a product Types of adopters Innovators first 2.5% Early adopters next 13.5% Early mainstream next 34% Late mainstream next 34% Lagging adopters final 16%

Is perception more important than reality in marketing? What makes a "Complex buying" process different?

Perception is most important for attracting buyers initially, but to get returning consumers, the quality of the good must be high Complex buying behavior: consumer buying behavior in situations characterized by high consumer involvement in a purchase and significant perceived differences between brands The complex buying process is usually for larger more important purchases and involves the buyer becoming much more involved, careful, and well educated in their decision.

Why does "post-purchase dissonance" and "cognitive" dissonance occur to many buyers?

Post purchase behavior: when buyers take action after a purchase due to their level of satisfaction for a product Post-purchase dissonance: after purchase discomfort caused by traits not noticed until a good is being used Cognitive dissonance: buyers discomfort caused by post-purchase conflict, or regretting not buying another good instead Dissonance occurs because of the consumer's expectations, and perceived performance

What is the difference between a product-oriented and a marketing oriented description of a company?

Market oriented: a company that organizes its activities, products and services around the wants and needs of its customers Product orientation: a company who focuses on its product and the skills knowledge and systems that support it

Provide a definition of key terms "a market" and "marketing management"

Market: the set of all actual and potential buyers of a product or service Marketing Management: art and science of choosing target markets and building profitable relationships with them

Business to Business Social Media and Buying Process is rapidly changing. How is it being affected by the Internet and thee Connected-world?

Online purchasing (e-procurement) has grown rapidly, as it shaves transaction costs and results in more efficient purchasing for both buyers and suppliers E-procurement also reduces the time between order and delivery and frees people from a lot of paperwork B2B marketers are now using a wide range of digital and social marketing, such as on websites, blogs, mobile apps, e-newsletters, and proprietary online networks Digital and social media has become the new space for engaging business customers, as it can create greater customer engagement and interaction

What are observational research, ethnographic research and experimental type research?

observational research: involves gathering primary data by observing relevant people, actions and situations ethnographic research- involves sending observers to watch and interact with consumers in their "natural environments" experimental type research: involves selecting matched groups of subjects, giving them different treatments, controlling unrelated factors, and checking for differences in group responses

Does it make a difference if there has been a "geographic shift" in the country for marketing brand managers to consider in their marketing planning?

these are periods of great migratory movement, Definitely, more and more people moving to "micropolitan areas" (small cities located beyond congested metropolitan areas) meaning a shift in where people work More people telecommuting... working from home, in a remote office, work on the phone Resulted in a booming small home/office market Means that marketers now have to target the telecommuting sector to a higher degree in order to turn profits

Why is it important to study the Micro and Macro Environment? Use FITBIT as an example

The microenvironment are the people close to the company that affect its ability to serve its customers (suppliers, competitors, etc) Macroenvironment: larger societal factors that affect the microenvironment (demographic, economic, natural, technological, political, cultural) Important to study because marketers can adapt their strategies to meet new marketplace challenges and opportunities Fitbit heavily involved in both environments Used micro when dealing with tough competition from the likes of Apple and other smart watch producers...allows for innovation and differentiation Macro was involved when marketing their product to corporate America and taking advantage of a health and fitness craze as well as high social media popularity

Nike's "Risk Everything" campaign was very successful. What was their strategy and formula for success?

The risk everything campaign was created in order to make the consumer feel as though their everyday athletics are just as important as those of professional athletes and can be even equated to life and death circumstances

Why is it important to understand whether a customer's state of desire for an offering is either in "needs, wants or demands state"?

Whether an item is a want or a need affects its demand. Need: a state of felt deprivation Want: needs that are shaped by one's society and individual personality Demand: wants that are backed by buying power

How has WOM (word of mouth) influence risen over the past several years? What is an "Opinion Leader"?

Word of Mouth influence has become significantly more important because of the creation of online reviews. Word of mouth influence: The impact of personal words and recommendations of trusted friends, associates, and other consumers on buying behavior Opinion leader: A person within a reference group who, because of special skill, knowledge, personality, or other characteristics, exerts social influence on others

GoldieBlox faces many challenges with consumer perception of what toys should be sold to whom. Will they have any effect in STEM education for females if they are successful?

Yes, because studies have shown the toys given to children in developmental stages of life influence how they act as an adult.

Facebook founder Mark Zuckerberg often gives away many of his software products that work with his software. What is the strategy behind that and what does he hope to get out of it?

Zuckerberg is giving away software products to help get customers for facebook and to get real advertising opinions

Before one can develop a good marketing strategy, it is important to perform a "situational analysis". What are the key components of the sa?

-strengths, weaknesses, opportunities and threats

Explain the difference between Exploratory, Descriptive and Causal Research.

-exploratory- the objective is to gather preliminary information that will help define the problem and suggest hypotheses -descriptive-the objective is to describe things, such as the market potential for a product or the demographics and attitudes of consumers who buy the product -casual-the objective is to test hypotheses about cause and effect relationships

How does Chick-Fil-A distinguish themselves from other QSR's?

-focus on customers is key, ned to provide the best possible experience to its customers -has a limited menu, original breaded chicken sandwich -customer service must go above and beyond -customer experience-enhancing strategy: give them something to do...eat more chicken. -very family-oriented, and follows religion

What is "Generational marketing" and what are the good points and bad points of this approach?

-generational marketing is creating separate products and marketing programs for each generation Good: undeniable differences between our generations, businesses should take advantage of this when creating campaign strategies Bad: risk turning off an entire generation each time you craft a product or message that appeals affectively to another

"Customer Insights" are achieved through market research, touchpoint analysis, primary and secondary collection and competitive intelligence? Define how each are conducted and the value of each method.

-market research-researchers define the problem and objectives of the research and define a plan that will gather the exact information needed to efficiently gather the data and present it to management. The value that this method gives is the information from their customers about what they plan on doing that could determine whether their idea will fail or succeed -touchpoint analysis-analyzing each interaction with customers and clients. Like website interaction, promotions, call centers, surveys, feedback, ads, commercials. The companies look at how they are reaching their customers and what is the most effective so that they can continue to target that area or put more resources towards it. It helps the company continue to reach more and more customers effectively -primary collection-primary data is normally collected through surveys, observations, and experiments. This allows companies to specifically target certain groups and allows the company to gather as much data as needed, while the secondary data is usually not enough -secondary collection- secondary collection is information that already exists somewhere, having been collected for another purpose. Companies can buy this information from outside suppliers. The value of this is that secondary data can usually be obtained faster and at a lower cost than primary data, allowing companies to gather information faster while spending less money -competitive intelligence-is the systematic monitoring, collection and analysis of publicly available information. It can be done by observing customers firsthand, quizzing the company's own employees, benchmarking competitors' products, online research and monitoring social media buzz. Good competitive marketing intelligence can help marketers gain insights into how consumers talk about and engage with their brands.

In customer-engagement marketing, why is there a shift of "marketing by intrusion" to "marketing by attraction"

-marketing by attraction is creating market offerings and messages that engage consumers rather than interrupt them -utilize social media to great extent -

When using mechanical instruments for research what is biometric measuring and neuromarketing?

-neuromarketing- is when researchers use EEG and MRI technologies to track brain electrical activity to learn how consumers feel and respond -biometric- uses heart rates respiration rates, sweat levels, and facial and eye movements

In probability sampling, what is the difference between random, stratified or cluster sampling?

-random sampling-every member of the population has a known and equal chance of selection -stratified random sample- the population is divided into mutually exclusive groups (such as age groups), and random samples are drawn from each group -cluster sampling- the population is divided into mutually exclusive groups (such as blocks), and the researcher draws a sample of the groups to interview

The Marketing Process have four steps in creating value. What are they?

1. Understand the marketplace and customer needs and wants. 2. Design a customer value-driven marketing strategy 3. Construct an integrated marketing program that delivers superior value 4. Engage customers, build profitable relationships, and engage customer delight

Johnson and Johnson Co. are often praised for their handling of the Tylenol in 1982. What lessons can be learned from what they did?

Chicago Tylenol Murders in 1982--People tampering with/poisoning tylenol capsules the company took an active role with the media in issuing mass warning communications and immediately called for a massive recall of the more than 31 million bottles of Tylenol in circulation McNeill and Johnson & Johnson offered replacement capsules to those who turned in pills already purchased and a reward for anyone with information leading to the apprehension of the individual or people involved in these random murders Johnson & Johnson developed new product protection methods and ironclad pledges to do better in protecting their consumers in the future. Working with FDA officials, they introduced a new tamper-proof packaging, which included foil seals and other features that made it obvious to a consumer if foul play had transpired. They also introduced a new version of their pills — called the "caplet" — a tablet coated with slick, easy-to-swallow gelatin but far harder to tamper with than the older capsules which could be easily opened J&J took full responsibility for their actions, did a total recall of all its tylenol bottles, worked to ensure whoever had committed this crime was caught, and put in numerous measures to ensure this would never happen again--this allowed their sales to increase back to normal within 2 years

What are the changes seen for marketing because of "Environmentalism, sustainability and social responsibility" as reflected in their branding and product development?

Companies are responding to consumer demands by producing more environmentally responsible products... better pollution controls, biodegradable packaging, recycling Companies learning that what's good for the planet and customer well being can be good business More efficient operations and less wasteful products are good for environment and save money Ex: Patagonia donates 1% of revenues to environmental causes Before, it used to be hard on costs but now it has become more cost-efficient

Many products are considered "Habitual- Buys". Compare that to a "Variety-seeking buying behavior" environment. What are the characteristics of each?

Habitual buying behavior occurs under conditions of low involvement and little significant brand difference. In situations characterized by low involvement but significant perceived brand differences, consumers engage in variety-seeking buying behavior.

How does the IBM Sales Model for Business to Business relationship selling work? What are the Pros and cons of this business model? What is "Solutions Selling"?

IBM's B2B emphasis is less on selling to customers and more on partnering with them to help solve their complex information and analytics problems They deliver insights and solutions to customer's data and information technology problems Pros: IBM's position involves "Boots on the Ground"--developing close day in, day out relationships with their customers Pros: They are knowledgeable and spend an extensive amount of time getting to know clients and their decision makers and understanding their clients problems and thinking about how IBM can solve their problems (see vodafone example--pg. 163) Pros: Starts with a customer focused mission and translates to IBM individuals working closely to clients to find and provide complete solutions Cons: Honestly can't think of many...maybe it's too time consuming? Solutions Selling: Buying a packaged solution to a problem from a single seller, thus avoiding the separate decisions involved in a complex buying situation

What is "marketing analytics" and why is it so important in developing a marketing strategy?

Marketing analytics is the analysis tools, technologies, and processes by which marketers dig out meaningful patterns in big data to gain customer insights. It is important because companies use this to mine through the big data that they collect from various sources and use it to gain insightful information about their customers and their habits.

What is marketing?

Marketing is the process by which companies engage customers, build strong customer relationships, create customer value in order to capture value from customers in return.

How does marketing myopia affect a seller's ability to deliver value to their customers?

Marketing myopia: the mistake of sellers paying more attention to the specific products they they offer rather than to thee benefits and experience of the products. People lose sight of underlying customer needs, product is only a tool to solve a customer problem. -Hurts seller's ability to deliver value, they should focus on creating brand experiences for their customers.

What are the five steps in the Buyer Decision process?

Need Recognition Information search Evaluation of alternatives Purchase decision Post purchase behavior

Netflix uses analytics to help improve customer satisfaction. What do they do?

Netflix uses the mined data in order to better recommend shows from their vast library. This allows the consumer to not have to scroll through the thousands of shows and movies that Netflix and can just watch the recommended shows. This helps save the consumer a lot of time and gives them shows that they would like.

Describe the steps in the typical B2B buying process. What is an RFP, QA process and VPA (performance review)?

Problem Recognition: can result from internal or external stimuli. Company recognizes a problem or need that can be met by acquiring a product or service Next, the buyer prepares a general need description, which outlines the characteristics and quantity of the needed item Product Specification: Buying organization decides on and specifies the best technical product characteristics for the needed item Supplier Search: stage of the business buying process in which the buyer tries to find the best vendors Proposal Situation: The stage of the business buying process in which the buyer invites qualified suppliers to submit proposals. The buyer issues a Request for Proposal, or RFP Supplier Selection: the stage of the business buying process in which buyer reviews proposals and selects a supplier or suppliers Order-Routine Specification: The stage of the business buying process in which the buyer writes the final order with the chosen supplier(s), listing technical specifications, quantity needed , expected time of delivery, return policies and warranties Performance Review: the stage of the business buying process in which the buyer assesses the performance of the supplier and decides to continue, modify, or drop the arrangement QA=quality assurance i think

What are the 4 P's of marketing?

Product, Price, Place, Promotion

what is the difference between the five concepts of "production, product, selling, marketing, and societal marketing" concept?

Production concept: the idea that consumers will favor products that are available and highly affordable, therefore, the organization should focus on improving production and distribution efficiency. Product concept: the idea that consumers will favor products that offer the most quality, performance and features; therefore, the organization should devote its energy to making continuous product improvements. Selling concept: the idea that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort Marketing concept: a philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. Societal Marketing Concept: a company's marketing decisions should consider consumer's wants , the company's requirements, consumer's long term interests, and society's long term interests

What is "real-time" marketing and give an example of how advertisers are practicing it.

Real Time Marketing: marketing that links into current events that are relevant to an audience in order to engage them with a brand ... "in the moment" Ex: Oreo Super Bowl tweet: You can still dunk in the dark"

Big data is used effectively by Target to analyze their customers' needs and preferences. What mistake did they make in divulging their findings to a young shopper's family? What does this say about research?

Remember they accidentally sent pregnancy ads to a 15 year old and her dad was pissed even though she actually was pregnant Because of her shopping patterns, Target started suggesting baby/pregnancy products.

What is the "Starbucks Experience" and how has it helped their company to grow?

Starbucks is a unique coffee shop, not only are their customers receiving their coffee, but they also gain the atmosphere and the experience of starbucks It is a social setting, free wifi, name on the cup, starbucks has worked to make their customers feel as though they cannot find this experience anywhere else

Dunkin donuts refreshed their Brand and Marketing Strategy recently. What does the Brand Essence and slogan "Nothing too fancy - just meeting the everyday, all-day needs of the Dunkin tribe" say about the company.

The company has a very established target market. Not trying to go after Starbucks customers. Instead it avoids fancy names (stuffed melt instead of Panini) in order to offer coffee at a reasonable price to working-class customers. It also establishes consistency of its offerings.

As the economy shifts, why is income distribution important to understand as income levels?

Rich have grown richer, middle class has shrunk, poor have gotten poorer Has created a tiered market, companies like Nordstrom aggressively target the affluent, Five Below targets the lower tier

Ritz Crackers are an iconic brand. How did they conduct research and what did they learn about the consumer buying habits that helped them launch Ritz chips?

Ritz conducted trials with consumers and asked them a multitude of questions about their preconceived notions and thoughts on the products they were creating The producers realized that people consider crackers more of a winter snack, and chips more of a summertime snack. Therefore the creation of this new product would not necessarily take away large sales from their crackers. The producers also realized that they should place their Ritz chips next to other Ritz products so that the higher price of Ritz chips would not be as noticeable than if they were placed next to other chips

Sara Lee used Market Research to help them develop a new kind of bread to replace their leading white bread product. What did they learn from marketing research and how change their product?

Sara lee learned the important qualities and characteristics that people like in their white bread and the packaging that it comes in. Therefore, Sara Lee used this information to build the perfect ratio between ingredients in order to create their leading white bread product. They learned that consumers like soft and smooth white bread.

Shinola Bikes is a good example of a company understanding their consumer. What do they do that makes them close to their customer and create a high demand in their target group?

Shinola understands that consumers of luxury goods will pay more for the intangible parts of their products. People appreciate that Shinola is based in Detroit, a city suffering from the loss of jobs caused by the fall of the american auto industry. This appreciation makes people want to buy Shinola because of the idea that buying Shinola is helping the people of Detroit.

The three types of buying situations are straight rebuy, modified rebuy, and new task buy. What difference in approach, costs, and structure does each have?

Straight Rebuy: A business buying situation in which the buyer routinely re-orders something without modifications To keep businesses "in" suppliers try to maintain customer engagement & product/service quality "Out" suppliers try to find new ways to add value or exploit dissatisfaction so the business will consider them Buyer makes fewest purchasing decisions in a straight rebuy Modified Rebuy: A business buying situation in which the buyer wants to modify product specifications, prices, terms or suppliers "In" suppliers will feel pressured and have to put their best foot forward on an account "Out" suppliers may see a modified rebuy situation as a opportunity to make a better offer and gain new business New Task Buy: a business buying situation in which a buyer purchases a product or service for the first time Marketer tries to reach as many key buying influences as possible while also providing help and information Buyer makes most decisions in a new task buy

What is a "supplier development" program like cargill and mcdonalds practices and why is it an important tool to improve your business process?

Supplier Development Program: the process of working with certain suppliers on a one-to-one basis to improve their performance and expand capabilities for the benefit of the buying organization If your suppliers are more efficient and capable, it benefits the buying organization as well; maybe the buying organization now only needs one supplier; possibility of cutting costs and/or delivery time

Understanding technological changes is vital for maketers. Why and give an example

Technological environment is the most dramatic force changing our world the tech environment changes very rapidly, new tech replaces old tech Companies that do not keep up will soon find their products outdated, will miss new products and opportunities Ex: many companies are now using RFID (radio freq ident.) to track products and consumers at various points in distribution channel, such as Disney's magicband

Marketing teams often add someone with Psychology expertise in order to understand the consumer. Why is that role important and what do they study?

That role is important because they study the motives behind why a person buys something. When a person's motives are better understood, marketers can then make their advertisements more appealing

How does an advertiser create "behavioral targeting"?

The advertisers mine the data about what sites you visit or products purchase and use that to target what products and services you might buy. Therefore, the advertiser targets your consumer behavior in order to predict your next purchases.

International Marketing Manners are important to practice and to understand. Why?

There are many things that marketers can and should learn from International business practices. Every Country has its own culture, and that they are all different. Every country has differences in thought, values and customs. All major positions in a company or organization, but marketers especially need to understand the needs, customs and cultures of international firms they decide to do business with. As the book says, marketers "must dig deeply to make certain they adapt to these differences" (171). Marketers must be careful with how they market their products in overseas economies and cultures in order to avoid offending the people of these cultures or making an embarrassing mistake. Understanding the culture of the market you are in is crucial to marketers, and they should make it a priority to understand the cultures they are marketing in; not only to avoid making silly and offensive mistakes, but also to create more effective marketing plans and campaigns.

How is "Social Class" measured in the United States? Is it an important distinction?

There are seven american social classes: upper upper class, lower upper class, upper middle class, middle class, working class, upper lower class, lower class. Lines between classes are much less rigid in the US. Overall distinction is important, but similar classes tend to have similar buying habits

The term "value" is relevant to different people but it makes for a challenge for a marketing team. Why is it key to understand the many different types of value in product selection?

This allows companies to acquire a greater share of the customer, or the portion of the customer's purchasing that a company gets in its product categories firms can offer greater variety to current customers can create programs to cross-sell or up-sell more products

MOM as Brand Ambassador programs have been very successful. What is the good news and bad news for a company to use this approach in their marketing?

This allows them to get a better sense of the needs of their consumers, and give back to them. It also makes the brand appear more caring for their customers However this also shows a brands disinterest in dads, and can be seen by some as reinforcement for a negative stereotype