marketing 300 test 1

sales analysis

- a common and compelling method of evaluation -comparisons to forecasted sales, average sales in the industry, sales of key competitors, etc.

product (part of marketing mix)

- a product can be a good, a service, or an idea -good: physical entity you can touch -service: involves human (and maybe mechanical) efforts to provide intangible benefits -idea: a concept, a philosophy, an image, or an issue - the product also involves features, packaging, support (like warranty and repair services) and more -marketers make product variable decisions to relate to customers needs and wants - ex: cheerios

why positioning is so important? (perceptual map)

- the so called "best" product, service, or idea doesn't always win -most of the differences among offerings exist in our heads (our perceptions) -positioning is fundamental to: -how we compete -the implicit promises that we make

Why part of our brains (the mesolimbic dopamine system) makes it difficult to keep a consistent customer focus

-"disclosing information about the self is intristically rewarding" - the key lies in two brain regions of our mesolimbic dopamine system -hot spots in the brain show heightened activity in the region of the brain assosciated with pleasure, like food, money or sex. those same regions are triggered when we talk about ourselves

hypothesis

-an informed guess or assumption about a certain problem or a certain set of circumstances -is based on all the insight and knowledge available about the problem or circumstances from previous research studies and other sources -accepted or rejected hypotheses act as conclusions for the research effort

drake university

-commissioned a new recruitment campaign -goal: get the attention of targeted high school seniors looking at colleges -research method: online survey of high school students -questions: would this concept get their attention? would it differentiate drake from other colleges and universities? - what they did wrong: only surveying high school seniors, only ask them a couple of questions, they did not take into account the other stakeholders involved, Did not take probability surveying

What it means to be customer-focused (as opposed to company-focused or product-focused, for example) in marketing

-customers: the purchasers of an organizations products; the focal point of all marketing activities -companies define their product not as what they make or produce, but as what they do to satisfy customers -target market: a specific group of customers on whom an organization focuses its marketing efforts - a marketer may have 1 or more target markets/customers for a given product

conclusive research

-designed to verify insights through objective procedures and to help marketers in making decisions -the marketer has one or more alternatives in mind & needs help in the final stages of decision making -2 types of conclusive research are: descriptive research, experimental research

stars

-dominant share of the market -good prospects for growth -use more cash than they generate to finance growth, add capacity, increase market share

cash cows

-dominant share of the market -low prospects for growth -generate more cash than is required to maintain market share

demographic variable

-gender (although they represent only slightly more than half of the population, women disproportionately influence buying decisions -race & ethnicity -income -product markets segmented by income include sporting goods, housing, furniture, cosmetics, clothing, jewelry, home appliances, automobiles, and electronics -family life cycle (marital status an the presence & age of children)

sales forecasts

-how to make the forecast? "breakdown" approach: begin with a total market forecast, then estimate your percentage or share -"buildup" approach: begin with a segment or territory forecast -what else to take into account? -competitors, their strengths and weaknesses, and their likely actions -costs, such as : -distinctive product features -attractive package design -generous product warranties -extensive advertising -attractive promotional offers -competitive prices -high quality personal service

What a mission statement is, the role it should serve for guiding marketing decisions, and why marketers should state their missions publicly and often

-mission statement: a long term view, or vision, of what the organization wants to become -the goals of any organization should derive from its mission statement -the challenges for mission statements, goals, and objectives is to actually implement them consistently -companies should state their mission publicly and often- so that customers, employees, and other stakeholders know what they may expect -each level of management and each department should have goals that stem from the mission statement and provide direction for the firm's activities

behavior & usage as a segmentation variable

-nike CEO phil knight: "as we though about it, we realized that there are different styles of playing basketball. Not every great player has the style of michael jordan, and if we tried to make air jordan appeal to everyone, it would lose its meaning. We had to slice up basketball itself" -nike invented the flight, a light & flexible shoe for faster play styles, represented by scottie pippen -force, a more solid shoe for aggressive play styles, was represented by charles barkley

marketing cost analysis

-often broken down into the costs of specific marketing efforts -take into account types of customers being sought, scale of the business, and potentially many other factors

psychographic variables

-personality attributes -motives -lifestyles -Psychographics is all about stuff in our heads, values, attitudes, lifestyles that we want

price

-price is a critical, comparable part of the mix pricing.... -cab be used as a competitive tool -can position your product with a premium image -must be considered in terms of your own costs of providing the product -is the most flexible, easy to change component of the marketing mix

promotion

-promotion involves communication activities and selling. it can: -increase public awareness of the organization and of new or existing products -help create a direct response such as accessing a website to order a product -inform customers about product features -persuade people to take a particular stance on a political or social issue -remind people and reinforce interest in established products

psychographic segmentation variables

-psychographic variables, such as personality characteristics, motives, & lifestyles, are sometimes used to segment markets -when appealing to a personality characteristic, a marketer almost always selects one that many people view positively- individuals with this characteristic, as well as those who aspire to have it, may be influenced to buy the marketers brand -when motives are used to segment a market, the market is divided according to consumers reasons for making a purchase- examples of motives affecting the types of products purchased and the choice of stores in which they are bought include personal appearance, affiliation, status, safety, health

geographic segmentation variables

-region -ubran, suburban, rural -city size -county size -state size -market density -climate -terrain

question marks

-small share of a growing market -require a large amount of cash to build market share

dogs

-sobordinate share of the market -low prospects for growth

distribution ("place")(marketing mix)

-this means having your product available at the right time and in appropriate locations -minimizing costs (keeping inventory, storing it, moving it) - while also being valuable to our target customers (where and when they want the product -the internet and e-commerce have dramatically changed the distribution (delivery, pickup, speed)

sociocultural forces and trust

-todd caponi firm studied the relationship between average consumer ratings (on a 1-5 scale ) and sales -a perfect average 5 star rating was NOT the best -best range 4.2-4.5 should companies speak out on social issues? -86% if the general population expect CEOS to speak publicly on social issues -68% feel that CEOs should step in when government does not fix societal problems -business is the most trusted institution, also the only institution seen as both ethical & competent

behavioristic variables

-volume usage -end use -benefit expectations -brand loyalty - price sensitivity -behavioral is based upon what people buy and how they use it, purchase behavior and usage.

five steps of the marketing research process

1. locating and defining issues or problems 2. designing the research project 3. collecting data 4. interpreting research findings 5. reporting research findings

the process of selecting a target market

1.identifying the appropriate targeting strategy -undifferentiated -concentrated -differentiated 2.Determine which segmentation variables to use -demographic -geographic -psychographic -behavioral 3. Develop market segment profiles -analyze total addressable market (TAM) -understand similarities and differences within segment 4. Evaluate relevant market segments -sales estimates -costs to serve -competition 5.select specific target markets -do we have the resources? -in line with our mission, vision, purpose? -short vs. Long term?

regulation vs. self regulation

Advantages -establishment & implementation are usually less expensive -guidelines are generally more realistic & operational -effective self regulatory programs reduce the need to expand government bureaucracy Disadvantages -when a trade assosciation creates a set of industry guidelines for its members, nonmember firms do not have to abide by them - many self regulatory programs lack the tools or authority to enforce guidelines -guidelines in self regulatory programs are often less strict than those established by government agencies

qualitative

Data in the form of recorded descriptions rather than numerical measurements.

primary data

Data observed & recorded or collected directly from respondents -collecting primary data is a lengthier, more expensive, and more complex process than collecting secondary data -to gather primary data, researchers use: -sampling procedures -survey methods -observation

quantitative

Data that is in numbers

concentrated target strategy

a company directs its marketing efforts toward a single market segment

differentiated targeting strategy

a company looks to increase its sales in a total market by focusing on more than one segment with different marketing mixes -more potential growth, but also higher costs

oligopoly

a competitive structure in which a few sellers control the supply of a large proportion of a product -usually barriers and some sort make it difficult to enter the market and compete with oligopolies

monopolistic competition

a competitive structure in which a firm has many potential competitors and tries to develop a marketing strategy to differentiate its product

monopoly

a competitive structure in which an organization offers a product that has no close substitutes, making that organization the sole source of supply -because the organization has no competitors, it controls the supply of the product completely and, as a single seller, can erect barriers to potential competitors

random sampling

a form of probability sampling in which all units in a population have an equal chance of appearing in the sample, and the various events that can occur have an equal or known chance of taking place

Boston Consulting Group Matrix

a framework that classifies each product or product line within a firm's "product portfolio"

sample

a limited number of units chosen to represent the characteristics of a total population

market

a market is a group of individuals and/ or organizations that have: - a desire or need for products in a product class - the ability, willingness, and authority to purchase such products

develop market segment variables

a market segment profile: - describes similarities among potential customers within a segment -explains differences among people & organizations in different segments -assesses the degree to which products fit potential customers needs -helps a firm make marketing decisions relating to a specific market segment or segments

pure competition

a market structure characterized by an extremely large number of sellers, none strong enough to significantly influence price or supply ( does not exist in real world)

geodemographic segmentation

a method of market segmentation that clusters people in zip code areas & smaller neighborhood units based on lifestyle & demographic information

quota sampling

a nonprobability sampling technique in which researchers divide the population into groups and then arbitrarily choose participants from each group

business cycle

a pattern of economic fluctuations that has 4 stages: prosperity, recession, depression, recovery

nonprobability sampling

a sampling technique in which there is no way to calculate the likelihood that a specific element of the population being studied will be chosen

national advertising review board (NARB)

a self regulatory unit that considers challenges to issues raised by the national advertising division (an arm of the council of better business bureaus) about an advertisement

prosperity

a stage of the business cycle characterized by low unemployment and relatively high total income, which together ensure high buying power (provided the inflation rate stays low)

recession

a stage of the business cycle during which unemployment rises and total buying power declines, stifling both consumer and business spending

recovery

a stage of the business cycle in which the economy moves from depression or recession to prosperity

depression

a stage of the business cycle when unemployment is extremely high, wages are very low, total disposable income is at a minimum, and consumers lack confidence in the economy

better business bureau (BBB)

a system of nongovernmental, independent, local regulatory agencies supported by local businesses that helps settle problems between customers and specific business firms

stratified sampling

a type of probability sampling in which the population is divided into groups with a common attribute and a random sample is chosen within each group

probability sampling

a type of sampling in which every element in the population being studied has a known chance of being selected for study

total available market

all customers who have the means to purchase the product/service

population

all the elements, units, or individuals of interest to researchers for a specific study

diversification

allows firms to make better and wider use of their managerial, technological, and financial resources

federal trade commission

an agency that regulates a variety of business practices and curbs false advertising, misleading pricing, and deceptive packaging and labeling

micromarketing

an approach to market segmentation in which organizations focus precise marketing efforts on very small geographic markets

performance standard

an expected level of performance against which actual performance can be compared - ex: a 20 % reduction in customer complaints, a monthly sales quota of $150,000 or a 10% increase in new customer accounts

undifferentiated targeting strategy

an organization uses a single marketing mix with little or no variation to a wide potential audience

where do you think each of these coca cola products should be classified as a star, cash cow, dog or question mark?

coca-cola: cash cow sprite zero: question mark Hi-C: dog Dasani: star

exploratory research

conducted to gather more information about a problem or make a tentative hypothesis more specific

exploratory research

customer advisory boards: small groups of actual customers who serve as sounding boards for new product ideas & offer insights into their feelings & attitudes toward a firm's products & other elements of its marketing strategy Focus group: a small group of 8 to 12 people who are brought together to participate in an interview that is often conducted informally, without a structured questionnaire, to observe interaction when members are exposed to an idea or a concept. - this less structured format can yield richer information to researchers

secondary data

data compiled both inside and outside the organization for some purpose other than the current investigation

If an office-equipment manufacturer wanted to focus on buyers with certain occupations and education levels, then which type of segmentation variable would they be using?

demographics

perceptual map

displays, in two or more dimensions, the position of products or brands in the consumer's mind

FDA

enforces regulations and prohibiting the sale and distribution of adulterated, misbranded, or hazardous food and drug products

total budget competitors

firms that compete for the limited financial resources of the same customers

product competitors

firms that compete in the same product class but market products with different features, benefits, and prices

brand competitors

firms that market products with similar features and benefits to the same customers at similar prices

generic competitors

firms that provide very different products that solve the problem or satisfy the same basic customer need

income

for an individual, the amount of money received through wages, rents, investments, pensions, and subsidy payments for a given period - disposable income: after tax income -discretionary income: disposable income available for spending and saving after an individual has purchased basic necessities

3 elements that are necessary to establish cause & effect relationships

in order to establish causation, you need all of these 3 elements: -a statistical relationship -time order -rule out other factors

product development

is a strategy of increasing sales by improving present products or developing new products for current markets

market penetration

is a strategy of increasing sales in current markets with current products

market development

is a strategy of increasing sales of current products in new markets

when the nba invested money and years of negotiations to bring televised basketball games to china, it used this strategy:

market development

why companies should define themselves by the benefits they offer rather than by the products they sell

marketing creates value -value: a customer's subjective assessment of benefits costs in determining the worth of a product -customer benefits: anything a buyer receives in an exchange -customer costs: anything a buyer must give up toterm-6 obtain the benefits the product provides -monetary; nonmonetary (time, effort, risk, etc.)

regulatory agencies

monitor many marketing activities and usually have the pwoer to enforce specific laws as well as some discretion in establishing rules and regulations

• The practical reality of why most mission statements sound the same

most common words in mission statements: -service (in 76% of corporate mission statements) -customers -quality -value -employees -growth -environment

for hot diggity, which one part of the marketing mix is most flexible (easiest & quickest to change)?

price

consumer product safety act

protects the public from unreasonable risk of injury from any consumer product not covered by other regulatory agencies

one of these is not part of the marketing mix

purchasing

Reliability vs. Validity

reliability: a condition that exists when a research technique produces almost identical results in repeated trials - a reliable technique is not necessarily valid validity :a condition that exists when a research method measures what it is supposed to measure

buying power

resources- such as money, goods, and serviecs- that can be traded in an exchange -the major financial sources of buying power are income, credit, and wealth

which of the following is NOT one of the strategic steps in marketing performance evaluation?

setting the timetable for implementation

marketers use perceptual mapping in order to evaluate how consumers evaluate their product or brand, compared to

specific competitors

What a "stakeholder" is for a typical company

stakeholders are all of the constituents who have a "stake," or claim, in some aspect of a company's products, operations, markets, industry and outcomes

first mover advantage

the ability of a company to achieve long term competitive advantages by being the first to offer an innovative product in the marketplace Advantages -helps a company build a reputation as a pioneer and market leader -the market is free of competition -helps establish customer brand loyalty where switching to another may be costly or difficult -the firm can protect its trade secrets and technology through patents Risks - high cost outlays assosciated with creating a new product -early sales growth may not match predictions if the firm overestimates demand or fails to target marketing efforts correctly -the product could fail due to market uncertainty or the product might not meet customers expectations or needs

late mover advantage

the ability of later market entrants to achieve long term competitive advantages by not being the first to offer a product in a marketplace Advantages -benefit from the first mover's mistakes and improve on the product design and marketing strategy -lower initial investment costs because the first mover has already developed a distribution infrastructure and educated buyers -more data and certainty about product success Disadvantages -first mover may have patents and other protections on its technology and trade secrets -customers who have already purchased the first mover's product may believe switching will be expensive or time consuming, making it difficult to gain market share -timing of entry into the market is crucial and can determine the advantage that is possible

market density

the number of potential customers within a unit of land area

environmental analysis

the process of accessing and interpreting the information gathered through environmental scanning

sampling

the process of selecting representative units from a total population