Marketing 1

robinson-patman act

"price discrimination is illegal." this is when a company charges different prices for different reasons (you're wearing a blue coat so you can have a cheaper price). charging different rates for children or senior citizens at the movie theater is legal, because there is a basis for the price difference.

baby boomers

(1946-1964) are most influential and active. the gym curves is marketed towards these people because they enjoy being with people like them. they are the most affluent

generation x

(1965-1976) are less materialistic, environmentally aware, and independent (high divorce rate in this period)

millennials

(1977-2000) are comfortable with technology, "now-oriented," and often have large disposable incomes (not entirely true after economic recession. AKA generation y

generation z

(2000-) is growing up with "digital in their DNA," and rely on sensory information and personalized experiences. they are makers, not sharers

examples of political

-activist groups against walmart are examples of pressure groups that can limit organizations -more specifically, there are MARKETING LAWS. these are laws that have been passed in ordered to protect the consumer

marketing intelligence

-asks, "what public information is available?" -ex. gatorade uses a mission controls center that monitors social media and customer's reactions to ads, endorsements, and different products. This is called BEHAVIORAL TARGETING. It is useful because it monitors actual behavior compared to just an interview -useful for gathering information on competitors

the marketing concept: (part 1)

-begins with the market, OUTWARD FACING, and focuses on what the customer needs or wants --this is accomplished using INTEGRATED MARKETING, or the 4 P's (product, price, place, promotion)

interviews

-can be individual or groups -used mainly for surveys or experiments

customers: (3 things)

-customers can vary from a company purchasing products from suppliers, or INTERMEDIARIES (such as macys or amazon) purchasing from a company -suppliers' customers are the company and their competitors. The companies will then market their products for consumers to purchase. -customers can also be CONSUMERS purchasing from intermediaries

example of natural forces

-during disasters, walmart stocks up on emergency items like flashlights and certain foods. -hurricane harvey in houston is a great current example. the hurricane has resulted in a shortage of raw materials and greatly impacted houston

the marketing concept: (part 2)

-ends with profits made from satisfying customers. --a marketer must now go beyond satisfying customers. A marketer must now delight and surprise customers to be profitable ---Amazon uses extensive data-based research to continue to "obsess over customers" and constantly work to satisfy consumers in innovative ways

examples of demographic

-families are only 25% traditional now. campbells is now focusing on single-member families with "soup at hand" -companies seek LGBT households because of their large purchasing power, shopping rate, and brand loyalty -markets must also appeal to separate age structures

example of economic forces

-in bad economies people purchase concentrated detergents and more tupperware for leftovers to save money

the main part the marketing information system is "developing needed information". This includes ___ ___, ___ ___, and ___ ___.

-internal databases -marketing intelligence -marketing research

what are the 4 P's (The Marketing Mix)

-product -price -place -promotions

marketers create "value" through products

-products can physical objects, people, organizations, places, and information and ideas -ex. in a papa johns ad featuring peyton manning, products include pizza, peyton manning, the nfl, and denver

how to gain primary data:

-research approaches: observations, surveys, experiments -contact methods: email, telephone, face-face, online -sampling plans: thinking about sizes, units, random samples or convenience samples

___ are expected activities (mother, granddaughter, athlete, student) ___ are esteem given to role by society

-roles -statuses

another example of economic forces

-the BUYING BEHAVIOR in our society has gone from overconsumption to value marketing --we also have "TREASURE HUNTER" tradeoffs in our society where people still buy luxuries in bad economies, but just make tradeoffs with other spending. An example would be someone buying $500 shoes, but not traveling to NYC with friends to save money

experimental research

-the best for gathering "casual" information (x causes y)

what do the 4 P's help with

-these are questions that the marketing department, along with other departments (management, finance, supply chain, etc.) ask in order to create marketing strategies --apple is an example that uses all of these in ads and on their website

how does Apple do marketing

-white background, simple music, same hand. -portrays their products as user friendly and easy to use

4 different age structures

1. baby boomers 2. generation x 3. millennials 4. generation z

the selling concept: (3 parts)

1. beings with factories, and focuses on existing products (INWARD FACING) -selling and promoting the product accomplishes this 2. ends with profits made through the sales of product 3. you must be familiar with the product/production concepts

types of customers: (4 types)

1. butterflies 2. strangers 3. barnacles 4. true friends

4 microenvironment actors

1. competitors 2. law of color 3. publics 4. customers

superior customer value results in: (6 parts)

1. consumer loyalty 2. customer referrals 3. more customers 4. customer engangement marketing 5. customer equity 6. higher profits

cultural factors include: (3 parts)

1. cultures 2. subcultures 3. social classes

marketing research has a four-step process

1. define the problem and research objectives 2. develop the research plan for collecting information 3. implement the research plan-collecting and analyzing data 4. interpret the report and findings

what makes up the macroenvironment and can affect marketing (6 things)

1. demographic 2. economic 3. natural 4. technological 5. political 6. cultural forces

what goes under self-expression:

1. experiences 2. makers

examples of marketing laws (5 laws)

1. fair packaging and labelling act 2. federal food and drug act 3. truth in advertising 4. sherman antitrust act 5. robinson-patman act

other functions of business besides marketing include:

1. finance 2. accounting 3. management 4. operations 5. purchasing 6. research and development

what goes under achievement:

1. innovators 2. achievers 3. strivers 4. survivors

the main types of contact methods from obtaining primary data include: (4 things)

1. interviews 2. phone 3. mail and email 4. online market research

why study marketing? (3 reasons)

1. marketing affects our daily lives -you market yourself at a career fair while speaking with a recruiter and they market their company to you as well 2. marketing is key to effective business strategies and business models 3. marketing is important to profitability and growth of business -by using the 4 P's, the company is able to BRING VALUE back to the company

psychological factors include (4 things)

1. motivation 2. perception 3. learning 4. beliefs and attitudes

what are the 5 ways of the buyer decision process

1. need recognition 2. information search 3. evaluation of alternatives 4. purchase decision 5. post-purchase behavior

examples of personal factors

1. people change the goods they buy as their age changes 2. occupation can influence what one is inclines to purchase 3. some goods and services are income sensitive; one's economic situation could influence whether or not they will purchase a product 4. individuals' activities, interests, and opinions affect them 5. personality and self-conception

social factors include: (3 things)

1. reference groups 2. families/households 3. role/status

to preform experimental research: (4 steps)

1. select groups of similar demographics and separate into 2. give different treatments 3. control any unrelated factors that could tamper the research (like weather) 4. observe differences in responses between subgroups

Maslow's hierarchy of needs

1. self actualization 2. esteem needs 3. social needs 4. safety needs 5. physiological needs

where your product is tested is important

1. successful test markets are ideally places where the population is similar to the US population as a whole 2. most successful test are: NY, NC, OH and AL. 3. least successful test markets are: NYC, CA, HI, FL and TX.

building and capturing customer value: (2 parts)

1. superior customer value 2. types of customers

customers and the marketing mix: (2 points) (part 1)

1. the 4 P's are all ways in which marketers look to "TOUCH POINT" with the customers; to communicate their product with consumers in any or all of the 4 ways. this happens whenever a customer is reminded of the product. -examples: billboards, logos, signage, commercials, driving by a restaurant -can also be done through other customers-seeing someone eating a bigmac

what goes under ideals:

1. thinkers 2. believers

the societal concept: (2 parts)

1. this concept includes consumer satisfaction, profits, and SOCIETY/ HUMAN WELFARE. 2. marketers must also focus on societal issues when creating a product

customers and the marketing mix: (2 points) (part 2)

2. customer value is shown through customer loyalty and referrals, gaining customers, customer equity, and high profits. -ex. jet blue aims for appealing "TRUE FRIENDS" consumers and creates strong customer value by focusing on making pleasurable flights so consumers will be more inclined to promote their product to others.

example of customer equity:

PSU evaluates this by determining how students value the PSU education by looking at tuition payments, giving back to the alumni association after graduation, buying PSU brand merchandise, etc. all of these values per student are added up for total overall customer equity.

types of publics:

There are financial, media, government, local, general, and internal publics. companies often do not anticipate these.

___ determines levels of resources and innovation in an individual

VALS (value-attitudes-lifestyle) surveys

dissociative group

a group that does not want to belong to or identify with -kindle focuses on those who want to dissociate from the apple product trend

aspirational group

a group that one wants to belong to or identify with. about 95% of all ads are aspirational -gopro focuses on people who want to be adventurous

ability ->

achievement

the microenvironment consists of various ___ that can be utilized for marketing

actors. -the company, suppliers, marketing intermediaries, competitors, publics, and customers are the actors that make up the microenvironment

need recognition

ads can help recognize the need and suggest solutions to that need

advantages and disadvantages of interviews

advantages: -flexible and easy to control samples disadvantages: -high cost per respondent because of compensation for participation -subject to interviewer bias, answer changes based on how the question is asked

advantages and disadvantages of the phone

advantages: -gathering information is quick and more flexible than mail surveys (can adjust based on the answer given) disadvantages: -more expensive than mail surveys because the caller needs to be paid -interviewer bias can still exist based on tones in voice -only small amounts of information can be collected compared to main surveys because people can only make one call at a time

advantages and disadvantages of online marketing research

advantages: -least expensive way to gather information -flexible-can change questions even after sending link -time efficient disadvantages: -people ignore it -only get information from people on that website

advantages and disadvantages of mail/email

advantages: -smaller amounts of interviewer bias and inexpensive disadvantages: -not flexible -few or inaccurate responses -only reaches certain demographics who are inclined to check mail

true friends

are both profitable and loyal, and are extremely valued by marketers

barnacles

are not profitable because they don't make purchases ofter; however, when they do they are loyal to one brand

strangers

are not profitable or loyal. they pick any brand, not a specific one

butterflies

are profitable, but are not loyal to one brand. they "float around" from brand to brand. -this is similar to the idea of a social butterfly at a party

reference groups are either ___ or ___

aspirational or dissociative

___ are likes and dislikes

attitudes

types of customers chart. what is inside

barnacles (TL)...true friends (TR) strangers (BL)...butterflies(BR)

___ are descriptive thoughts

beliefs

___ and ___ affect choices

beliefs and attitudes

macroenvironment is much ___ than the microenvironment

broader

truth in advertising

cannot show inaccurate information, although exaggerations are allowed. parodies of products and subjective slogans are allowed, but marketers must be cautious of trademarks (think of the "north face" parody "south butt", or a coffee shop claiming they have the worlds best coffee)

moderate incongruity

challenges or creates uncertainty for consumers. it is the perfect blend for too easy or too difficult to understand an ad or commercial

low resources/innovation example

chevy ads are examples of survivors, because their cars are intended to last many years and endure lots of hardship. the everyday man

another example of intermediaries

coke partnered with wendys and was able to redesign the menu boards to better serve the sustomer and be profitable. they were able to do this because coke has done a lot of research and compiled extensive data regarding consumer behavior

primary data

collects specific information that can be directly applied to marketing information needs, although it is costly

hows instagram used in marketing (part 2)

companies can market themselves. - they may pay celebrities to talk about a product -you can follow companies on instagram --this is their attempt to establish a relationship

in a ___, all departments must think like the consumer and work inter-functionally to create customer value. they need to be outward-facing

company. -ex. jet blue airlines focused on flying "human" again. they wanted to put an emphasis on the human experience and aimed to establish a relationship

suppliers' customers are the company and their ___. The companies will then market their products for consumers to purchase.

competitors

economic forces:

consists of factors that affect consumer purchasing power and spending patterns

marketers study the environment to understand ___ they must work with, to find ___, and to ___ ___

constraints, opportunities, avoid threats

___ are those who buy the final end product

consumers

customers can also be ___ purchasing from intermediaries

consumers

acquire the product in its full form, for ___

consumption

cultural:

cultural forces affect a society's basic values, perceptions, preferences, and behavior

4 factors that influence buying behavior:

cultural, social, personal, psychological

subculture

culture of a group of people who share value systems based on common life experiences (male, female, athlete, freshman) -ex. budlight commercial shows men at a wine and cheese party who brought beer to share with each other and watch football as the women gather to talk and drink wine

example of cultural

current cultural trends include: -hypertasking (multi-tasking in overdrive), duty and fun (having fun and responsibly) -mass mingling (digital technologies affect offline interactions) -adventurers -cocooning (people spending more time at home) -LOHAS (general concern for the natural world)

demographic

demographic forces can be collected and measured through census-type data. data such a household structures and age, geographic population shifts, diversity, and education and population are changing.

the main part the marketing information system is ___ ___ ___.

developing needed information

the marketing environment is divided in what and if influenced how

divided by the microenvironment and the macroenvironment. its influenced by the marketing strategy

more customers:

essential for profitability and overall value

___ ___ observes in a natural environment

ethnographic research -marriott realized no one was spending time in the lobbies because it was too fancy and spread out. so they added restaurants, coffee shops, and closer-together furniture

example of experimental research

ex. a grocery store performed an experiment where they changed the sales promotion of canned soup in stores. it was determined that customers were more inclined to buy soup when the sale sign said "12 cans max. per person" than when it only said "SALE." this made people feel like the offer was better, there was scarcity, etc.

it is the uncontrollable ___ ___ that influences marketer's decision making

external forces

___ / ___ are considered the most important social group for consumer buyers

families/households

customer engagement marketing

finding ways for customers for interact with the company- often through games, contests, giveaways and coupons -advertisements alone are not enough anymore

observational

gathering of primary data by observing relevant people, actions, situations

publics

groups that have any interest or impact on an organizations capability to achieve its goals.

examples of how a company can use intermediaries and benefit:

having resellers, physical distribution firms, marketing services agencies, and financial intermediaries

what does "price" mean

how much we should ask customers to pay

what does "place" mean

how the product will get to the customer

what does "promotions" mean

how we will communicate with the customer

what are the 3 topics of the primary motivation chart:

ideals, achievement, self-expression

microenvironment

includes direct factors surrounding the marketing mix such as competitions and supply chains. companies must make adjustments on these factors when a problem arises.

macroenvironment

includes external factors surrounding the marketing mix such as the economy, laws, nature and current trends. companies make adjustments based on these factors as well.

final example of economic forces

income distribution has also changed. the upper class and working class have increased, while the middle class is shrinking. stores like nordstrom now accommodate to the upper class, and kohls appeals to both the working class and upper class. macys is now struggling because of the lack of middle class, who the company primarily markets towards.

online marketing research

information can be gathered through surveys, experiments, and interviews

federal food and drug act

information has to accurate

ideals ->

intellectual

___ promote, sell, and distribute a company's product to end-users (think retailers or ad agencies).

intermediaries. -companies and intermediaries can both benefit by partnering together

the buyer decision process

involves the following steps, the ways marketers can respond to them effectively

motivation

is about the needs that drive people

perception

is the process by which people select, organize, and interpret information

fair packaging and labelling act

labels must include what, who and how much

___ changes behavior based on experience

learning

secondary data

less expensive and relies on existing information (think past research or social media), although it is not often applicable to a specific need.

marketing is more ___ (relationships) than ___ (sales)

long-term & short-term

develop the research plan for collecting information

look at demographic, technological, and cultural forces

the last step of the marketing process is to report your findings to ___ by written reports or presentation

management

information search

marketers can also provide information conveniently to consumers

post-purchase behavior

marketers must also reduce COGNITIVE DISSONANCE, or post purchase doubt. once the product is used, you might regret your purchase or have a positive experience that assures your purchase

purchase decision

marketers must ensure availability to products and create an added value

evaluation of alternatives

marketers must seek out competitive advantages and illustrate consequences to consumers

why is marketing related to the mindset of a hunter

marketing is often thought of as only worrying about hard sales

why is marketing similar to how plants must be nurtured continuously

marketing is truly about cultivating long-term relationships and making customers happy both now and later

example of societal concept:

mcdonalds used to t be a fun place to go with friends and family. recently fast food has had more of a negative opinion because of the high calorie foods. mcdonalds realizes this and has altered its products and ads to fit the consumers desire of healthier choices (coffee, salad, smoothies). they also focused less on food and more on positive relationships

___ ___ utilize people meters (demographics), checkout scanners, and eye cameras

mechanical observations -ex. by using an eye camera, kelloggs observed that most people tend to look down in grocery stores, so they placed their rice crispy treats below eye level

___ tend to be primary shoppers for households now, so marketers advertise accordingly

men -men are more short-term shoppers, don't plan ahead, will only buy things they need currently

___ ___ forces customers to pay attention, think, and consequently remember

moderate incongruity

behavior targeting

monitors social media and customers reactions to ads, endorsements, and different products

another example of law of color

most accounting firms have used basic color schemes to show maturity and seriousness. however, deloitte now sets themselves apart with a lime to add color

culture

most basic cause of a persons wants or behavior -ex. budweiser commercial shows american culture by saying it is americas favorite lager, having a pet dog, and the competitive nature of the horse

marketing myopia:

narrow-minded thinking (like blinders on a racehorse) -> this is not what we want in marketing

marketers focus on ___ forces by focusing on natural resources needed as inputs or that are affected by marketing activity

natural

social

needs include a sense of belong and love

physiological

needs include basic needs such as hunger and thirst

safety

needs include security and protection

self actualization

needs include self-development and realization

esteem

needs include self-esteem, recognition, and status

the main types of research methods are ___, ___, and ___ (all are primary research)

observational, survey, and experimental

self-expression

one who prefers bright colored, uniquely designed cars like a pink Voles-Wagon buggy

achievement

one who prefers high-end cars that show status such as BMW

example of ideals

one who prefers hybrid cars that can improve the environment

selective attention

only pay attention to things that interest us

high resources/innovation example

opera winfrey is an example of an innovator, because she has enough income and influence to innovate herself, others, and the rest of the world. she is highly successful

exam thought: is it more profitable for a company to think inside-out or outside-in?

outside in

brand personality

people tend to buy products that contribute to and reflect their identities

implement the research plan- collecting and analyzing data

pepsi conducted focus groups with college students to try to gather info

interpret the report and findings

pepsi decided to invest more in colas. tried to adjust their ads to reach their target audience, generation Y. wanted to reach them through touch points, customization, geo-local ideas, and user-generated content

example of law of color

pepsi originally selected a color scheme similar to coke, but was unsuccessful. now they use an opposite color scheme to help them stand out more

define the problem and research objectives

pepsis market share had decrease in 2012. they realized health is becoming so important to customers with the decrease of sugar in their diets

___ ___ include age and age demographic, occupation, economic situation, lifestyle, and personality and self-conception

personal factors

political:

political forces are the laws, regulations, and pressure groups that can influence and limit organizations in a society.

sherman antitrust act

price fixing, and predatory pricing is illegal. "price fixing" is when you fix prices with competition. it is illegal because the prices would be too high for the consumer. "predatory pricing" is when a company consistently lowers prices to drive their competitor out of business.

two types of data to be collected during market research

primary data and secondary data

4 microenvironment actors, "competitors":

provide options for customers. a company must provide better customer satisfaction than competitors

customer referrals:

recommendations or votes of support from the customers of a company

what affects the order of what goes where on the primary motivation chart

resources and innovation

accounting

responsible for MEASURING revenues and costs, and keeping marketing on track with objectives

purchasing

responsible for OBTAINING the supplies and materials needed

operations

responsible for PRODUCING AND DISTRIBUTING the product

research and development

responsible for designing the product

finance

responsible for finding money to CARRY OUT marketing plan

example of competitors:

samsung and apple compete for a COMPETITIVE ADVANTAGE and look for a point of difference, while burger king avoids comparison directly

higher profits

self explanatory

excitement/social ->

self-expression

management

sets the MISSION AND OBJECTIVES for the company

eye tracking discovered what?

shoppers look at shape, color and the area around an object

factors of natural forces:

shortages of raw material (think natural disasters), increased pollution and government involvement, and increased environmentally sustainable strategies

social classes

society's relatively permanent and ordered divisions whose members share similar values, interests and behaviors. -often equated with income

law of color

states that a brand should select a color that is OPPOSITE of its major competitors. people don't always remember names, but they usually remember colors

which factor would be ones religion, gender, or ethnic background

subculture

___ provide resources needed for production and innovation (think supply chain)

suppliers

customers can vary from a company purchasing products from ___, or ___ (such as macys or amazon) purchasing from a company

suppliers & intermediaries

___ can gather information about people's knowledge, attitudes, preferences, or buying behavior

survey -most widely used method for primary data collection -this is best for gathering "descriptive" information -surveys are rigid and cannot be modified during the process

technological:

technological forces are factors that create new technology, products, and marketing opportunities. this can make other products obsolete. -ex. how we read on devices now and not with paper -ex. googles self driving cars

customer evangelists:

tell everyone about a product or service simply because of how much they love it, with no real direct return for themselves

customer equity

the "customer lifetime value." this is equal to the total revenue a customer generates- the customer acquisition cost- the customer retention cost

another example of competitors

the #1 in a market place often advertises its own products: #2 and #3 will compare themselves to #1 and show why they're better

the marketing environment (textbook definition)

the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with customers

consumer behavior

the buying behavior of individuals and households who buy goods and services for personal consumption

consumer loyalty:

the consistent purchase from loyal brand consumers -loyalty is a step further than retention- it is about attitude and how the customer feels

what is marketing (book definition)

the process by which companies create VALUE for customers and build strong relationships in order to capture VALUE from customers in return

what is marketing***

the process by which companies/brands create value for customers and build strong customer relationships in order to capture value from customers in return

marketing information system

the system is utilized by marketers and other information users, and is affected by the marketing environment. -marketers assess information needs, develop needed information and then analyze and use this information for marketing. you must know the marketing environment in order to do these things (target market, marketing channels, competitors, publics, and macro-environmental forces)

marketing research

the systematic design, collection, analysis and reporting of data relative to a SPECIFIC MARKETING SITUATION facing an organization -also known as consumer insight

example of consumer generated marketing:

the video of jet blue customers, they sing about how much they love the airline. this is known as CONSUMER GENERATED MARKETING because consumers are marketing on your behalf due to how loyal you are

businesses:

those who buy raw materials to make an item

consumers:

those who buy the final product

customers (4 microenvironment actors)

those who buy the product. there are consumers, businesses, resellers, government and non-profit, and international market customers

resellers:

those who sell the products to consumers

example of publics:

tide worked with the local public during Hurricane Katrina to appeal to the general and media public. THON reaches out to the public for donations from alumni, students, and businesses

many brands have created more product lines and innovated specifically to black people because they are ___ ___ and ___

trend setters and innovators

hows instagram used in marketing (part 1)

used by the everyday public, as well as large and small celebrities. -selling a product or creating an image/brand for themselves

mail/email

used for surveys with questionnaires

phone

used mainly for surveys and some experiments

VALS

value-attitudes-lifestyle surveys

selective distortion

we distort into to fit into our own worldview

selective retention

we only remember the things we agree with

to gain secondary data, marketers look at ___ in order to get information

websites

what does "product" mean

what potential customers need or want

competitive advantage or point of difference

when companies demonstrate why a customer should choose their company. this can be implicit or explicit

internal databases

when you purchase something from a store, your purchase goes into a large database in order to make predictions of shopping patterns for your zip code or demographic. -asks: what information do we already have? -a con of this is that trends change year to year, or even month to month

types of customers chart. what is on the x axis and y axis

x axis- profitability y axis- loyalty