marketing 3000 exam 2 Mizzou - Poor

psychological

MOTIVATION -- a need that is sufficient to trigger the person to satisfy it -- often subconscious and difficult to uncover -- ex: Joel told ppl he bought sports car bc he liked its style, but really it was bc of his insecurity and need to impress PERCEPTION -- process people use to select, organize, and interpret info -- selective attention: ppl screen out most info they are exposed to so ads must strike a strong chord -- selective distortion: the tendency for ppl to interpret info in a way that conforms to prior beliefs -- selective retention: tendency to retain only info that supports existing attitudes and beliefs LEARNING -- changes in behavior arising from experience -- a drive (strong internal stimulus) becomes a motive when it is directed toward a stimulus object -- cues are stimuli that determine when, where, and how a person might respond -- marketers can increase demand for products by associating it with strong drives, using motivating cues and providing a good consumer experience that will reinforce another purchase BELIEFS -- a descriptive thought about something -- ex: I think the newest Tesla is too expensive for me ATTITUDES -- a person's relatively consistent evaluation toward some thing or idea -- ex: "one should always pay more for good furniture" -- promotion can counter some beliefs if they are incorrect, but attitudes are hard to change

social

FAMILY -- most important group influence -- trend: wives having more influence on purchases outside home (e.g. cars) -- trend: husbands having more influence on purchases inside home (e.g. food) -- trend: children having a stronger influence on family buying decisions (e.g. vacations, cars, phones) REFERENCE GROUPS -- groups that serve to influence attitudes and buyer behavior -- ex: business professionals = suits, professors = casual -- opinion leaders are people within a group that exert special influence (ex Warren Buffet and stocks) -- aspirational group influence ex: hope to be like Lebron James so buys his basketball shoes ROLES AND STATUS -- the person's role and status within a group influence buying behavior -- ex: Kate promoted to IT manager, now considers owning the best smartphone is good example his team needs to follow

happiness in the workplace

Google keeps scooters in the hallway, video games in break room, gourmet food in cafe Patagonia has a "let my people go surfing" policy encouraging staff to hit the waves when they want Coors reported a $6.15 return on every $1 spend on their fitness program start believing, rethink work, practice, use failure to succeed, focus on small goals, practice the 20 second rule, seek social support

why international business?

-increase sales -gain new resources and knowledge -reduce risk (economic, taxes, political)

challenges of international marketing

-language -currency (strong $ hurts US currency in other countries, helps us here, differences are similar to tariffs) -culture -geographies -political issues (can also offer opportunities) -legal differences (laws, what's appropriate or not ex: pepsi brings you back to life) -trade policies and tariffs (imposed to protect own country)

product line length

-line stretching --- downmarket, upmarket, two-way -line filling (when you match a competitors offering) -line modernization (updating) -line featuring and line pruning

building a strong brand (4 steps)

1. establish brand identity -- create brand salience 2. design brand meaning -- link desired tangible/intangible brand association with product characteristics -- defining brand performance 3. elicit proper brand imagery -- abstract associations with brand intangibles 4. create active, loyal relationship between brand and customers -- brand resonance, dependence

how firms develop new products

1. idea generation 2. concept testing 3. product development 4. market testing 5. product launch 6. evaluation of results

maslow's hierarchy of needs

1. physiological (innate) 2. safety and security (protection, order, stability) 3. social needs (affection, friendship, belonging) 4. ego needs (prestige, status, self esteem) 5. self actualization (morality, creativity, acceptance)

product development

1. prototype -- model service blue prints 2. alpha testing 3. beta testing -- externally faster

adopter categories

1) Innovators -- usually have $ -- expensive -- 2.5% -- eager to try 2) Early Adopters -- key target -- influential, role models -- 13.5% -- respected -- category contains greatest number of opinion leaders 3) Early Majority -- 34% -- adopt new ideas just prior to the average time -- seldom hold leadership positions 4) Late Majority -- 34% -- skeptical -- adopt new ideas just after the average time -- adopting may be both an economic necessity and a reaction to peer pressures -- innovations approached cautiously 5) Laggards -- 16% -- traditional -- last people to adopt an innovation -- older people -- suspicious of the new

stages in the individual's adoption process

1. Awareness -- consumer first exposed to the product innovation 2. Interest -- consumer is interested in product and searches for additional info 3. Evaluation -- consumer decides whether or not to believe that this product or service will satisfy a need (mental trial) 4. Trial -- consumer uses the product on a limited basis 5. Adoption/Rejection -- if trial is favorable, consumer decides to use the product on a full, rather than a limited basis -- if trail is unfavorable, consumer rejects it

sustainable development challenges

1. INHERIT COMPLEXITY OF THE PROBLEM -- balancing short-term private benefits with a long-term interest --an over-focus in one area may have significant negative impacts on others --solutions require long-running, transformational changes -- is it even possible to have growth while being sustainable? 2. CONFLICTING INTERESTS -- corporate interests (short term vs long term gain, economic vs social) -- national interest (resources, trade, US consumers much more but China has a ton of emissions) -- personal (economic, quality of life) ex: could buy prius for environment but altima is more fun 3. POST-MODERNIZATION EMERGING FACTORS -- have not been helping environment -- global impacts of large scale industrialization and materialism -- population growth, life expectancy -- trade, transportation -- science and technology -- increased corporate incfluence

brand management challenges

1. brand proliferation 2 .media fragmentation/decreased ad efficiency 3. smarter/variety-seeking consumers -- more info available (verify claims brands make) -- successful new product development

factors that speed diffusion of an innovation

1. Large Relative advantage (smart phone) 2. High level of compatibility (GPS, uber, maps) 3. Easily observed (wearables, bird scooters) 4. Less complex 5. Easy to try "triability" (netflix, keurig)

external stimulus

1. comes from having a problem with a product -- ex: broke TV, need a new one 2. comes from marketing mix elements -- ex: creation of a new product (ex: Instatransporter) -- the distribution of an item can serve as a powerful trigger (ex: candy by checkout lane) -- most frequently used is promotion in advertisements

importance of services

1. service industries/products dominate 1st world economics and are growing 2. even for manufacturers, growth through sales of services is an imperative 3. the growth of services and advances in technology have resulted in new marketing methods, processes, and concepts

importance of serivces

1. services account for more than 75% of US economy and is growing in emerging markets as well 2. in all firms, accounting for more of their revenue -- dependent on services 3. where market researching is headed

importance of new product development

1. survivability 2. key to profitability 3. capacity to change lives (affects our society, the way we live)

personal

AGE AND LIFE-CYCLE STAGE -- over lifetime, needs and purchases change -- ex: when become parents with first child, buy larger car OCCUPATION -- ex: Dickies makes rugged work clothes for blue-collar workers (e.g. construction) ECONOMIC SITUATION -- ex: Maxwell House coffee might target lower-income consumers who can't afford Starbucks -- ex: during economic recessions, many firms advertise their products as a "good value" PERSONALITY -- refers to relatively enduring psychological characteristics (e.g. highly-social extrovert) -- marketers often try to match their brand personality to that of their target market's personality -- sometimes can be difficult to identify a segment by personality (e.g. shy introverts)

3 cognitive heuristic tendencies that lead to faulty decision making

AVAILAILITY BIAS -- explanation for so much advertising -- bias reflected in judgments regarding the predicted frequency of an event -- personal experiences, media 1. recency effect (current) 2. vividness ANCHORING AND ADJUSTMENT -- explanation for discounting -- nothing inherently biased, but the dangers lie in the way the original anchor is generated REPRESENTATIVENESS HEURISTIC -- why ads promote minor attributes and stereotypes -- ppl tend to judge the probability of an event by finding a "comparable known" event and assuming that the probabilities will be similar -- assuming that similarity in one aspect leads to similarity in other aspects -- ex: good shower facilities with better hotels (Holiday Inn Express) -- we tend to ignore base rates (the relative frequency with which an event occurs) -- law of small numbers = assumption ppl make that a small sample is representative of a much larger population

market drivers

Customer group or resellers, end users, end use, activity, others

cultural

CULTURES -- the set of basic values and behaviors shared by members of society -- the most basic cause of a person's wants and behaviors while growing up -- trend: in the US, culture shift toward greater health SUBCULTURES -- smaller groups within a culture that have shared value systems -- trend: IS Latino market is the fastest growing subsegment of the US population and so it influences brands bought -- ex: US age 65+ wanting to look younger SOCIAL CLASS -- society's ordered divisions whose members share values and behaviors (upper, middle, working and lower class) -- determined by many factors including income, education and wealth with OCCUPATION being the most important determinant

technology drivers

Materials, Processes, People, Facilities, Other

acquired needs

Needs that are learned in response to one's culture or environment (such as the need for esteem, prestige, affection, or power) also known as psychogenic or secondary needs

line extensions

Occurs when a company extends existing brand names to new forms, colors, sizes, ingredients, or flavors of an existing product category low cost, low risk way to introduce new products ex: coca cola with vanilla flavored

a trio of needs

POWER -- individual's desire to control environment -- ex: gun, thermostat, security, land, fence AFFILIATION -- need for friendship, acceptance, and belonging -- ex: alcohol, orgs, family, social media, certain brands, membership ACHIEVEMENT -- need for personal accomplishment -- closely related to egoistic and self-actualization needs -- ex: sports, running shoes, higher education, expensive items

the king of branding

Proctor and Gamble

branding

a name/symbol that identifies a distinct product provides a valuable service to consumers because it gives us a means for associating a particular product with a specific level of quality types: -- manufacturers' brand (green giant, Del Monte, coca cola, kodak, ford, kraft) -- private brand (owned by reseller, Kroger, Great Value at Walmart, Sam's Choice, Equate, 20% of sales in the US) -- generic brand (green beans, low priced) -- license brands -- co-brand product

ethnocentric

a person who assumes that their home country is superior to the rest of the world associated with national arrogance or feelings of national superiority can mean that opportunities outside of the home country are routinely ignored leads to a standardized or extension approach - the belief that products can be sold everywhere without adaptation known as international companies

country of origin (consumer behavior issues)

a type of correlation if something is produced in a certain country it must be good (or bad) ex: germany makes good automobiles, beer, chocolate, cucuclocks the good -- swiss watches knives and chocolate -- japanese electronics -- brazilian soccor -- russian vodka and hockey the bad -- finnish/english food, chinese toys

correlation inferences (consumer behavior issues)

a type of heuristics associations (positive or negative) between two attributes because we know one thing, we know another -- POSITIVE: the better the look of a car, the better its performance -- NEGATIVE: the higher the cost of a car (negative), the better the performance (positive) -- ex: ice cream study -----> label included fat content even though law didn't require; richest and best tasting got higher ratings by telling them the fat content

the silk road

ancient trade route, international trade, 100 years

consumer input

as much as 85% of new business to business product ideas come from customers lead users modify existing products according to their own specific needs -- ex: NASCAR drivers and teams

service

any act of performance that one arty can offer another that is essentially intangible; its production may or may not be tied to a physical product ex: cleaning, movie, hotels, flights, etc

compensatory decision method

attributes of alternatives -- price, size, etc

sustainable development

balancing economical, social, and environmental needs (based on personal preference usually) social fairness between groups "worrying about environment is a luxury" trend: consumers are now making more choices based on company over brands now

psychological bond between customer and brand

behavioral loyalty attitudinal attachment sense of community active engagement

brand equity

brands represent consumers' perceptions and feelings about a product the differential effect that knowing the brand name has on customer response to the product or service a measure of a brand's equity is the extent to which cusomters are willing to pay more for the brand high brand equity provides a company with many competitive advantages

licensing

can generate revenue flow with little new investment can be good choice for company that possesses advanced technology, strong brand image, or valuable intellectual property 1. contract manufacturing 2. franchising ADVANTAGES -- enables companies to circumvent tariffs, quotas, or similar export barriers -- granted considerable autonomy and are free to adapt the licensed goods to local tastes DISADVANTAGES -- offer limited market control -- cooperative vs strategic alliances -- strategic alliances 3 characteristics > participants remain independent subsequent to the formation of the alliance > may help to create a STRONG COMPETITOR > participants share benefits of alliance as well as control over performance > participants make ongoing contributions in technology, products, and other key strategic areas >>> example is a Joint Venture

consumer behavior issues (heuristic issues)

correlation inferences country of origin effects heuristics and biases representativeness availability bias anchor and adjustment

buyer's characteristics

cultural, social, personal, psychological

model of buying behavior

decisions based on buyers characteristics marketing stimuli --> other stimuli --> buyer's characteristics --> buyer's decision process --> buyer's decisions

consumer behavior

describes how consumers (people who potentially may buy something) make purchase decisions draws heavily on psychology and sociology -- also on economics and anthropology

demand conditions

determines the rate and nature of improvement and innovation by the firm sin the nation 1. market size 2. demanding customers >> when at a high level, makes a national market more attractive 3. market sophistication

trading down

downmarket adding a lower-priced item to a line of prestige products to encourage purchases from people who cannot afford the higher-priced product, but want the status ex: natty light

concept testing

earlier in process not spending as much in this stage concept is a brief written description of the product customers reactions determine whether or not if goes forward trigger the marketing research process

advantage of global branding

economy of scale greater brand awareness

two way product line stretch

ex: Marriott Hotels

postpurchase evaluation (customer satisfaction)

expectancy gap theory -- level of satisfaction = actual performance - expectations (positive gap = good) don't over hype but don't lower expectations too much ex: movie sequels not as good because they rose our expectations

anchor and adjustment (consumer behavior issues)

first information becomes basis (anchor) from which we adjust based on new info -- often we don't adjust enough most common example in marketing -- using retail/sticker price as an anchor for determining what is a good value -- sales -- informercial prices

contents of a new product strategy

focus -- a clear technology dimension and a clear market dimension that match and have good potential goals/objectives -- what the project(s) will accomplish guidelines -- rules, requirements, time/quality/cost

global marketing

focuses its resources and competencies on global market opportunities and threats in a comprehensive manner describes a company's effort in applying/adopting marketing strategy/tactics to create an integrated global marketing strategy global perspective on all aspects of the marketing mix 4 Ps

the importance of going global

for US companies, 70% of total world market for goods and services is outside the country 90% for Japanese companies 94% for Germany companies

a higher level of involvement outside the home country may involve...

foreign direct investment can also be used to establish company operations outside the home country through... 1. greenfield investment (constructing new operational facilities in foreign country) 2. acquisition of equity stake in foreign business 3. taking ownership of existing business entity ADVANTAGES: -- may provide instant market access -- offers greater control than other market entry methods DISADVANTAGES -- requires most commitment in terms of managerial effort and investment -- may breed resentment in target market

service design and standards gap

gap between management perception and service-quality specifications gap between understanding and design

communications gap

gap between service delivery and external communications over promising; ex: EverRy college video can usually be closed at any time

performance gap

gap between service-quality specifications and service delivery usually most difficult gap to close

listening gap

gaps between consumer expectations and management perception caused by inadequate marketing research

Who has the roles and responsibilities of a change toward more sustainable consumption?

government, individuals, business, manufacturers, etc

what are the different reasons why people buy things?

hedonism, construct identity, communication

extensive decision making

high involvement time and effort spent information search and alternative evaluation high-priced ex. automobile purchase, house, school, travel, medical

internal stimulus

hunger or thirst

the future of marketing

implications -- consumers will spend more on services, less on things (providing personal, experiential and social benefits) -- offerings and communication focused on substantive relationships superficiality in marketing/consumer behavior will never disappear altogether

joint venture

in which partners (parents) share equity investment in an independent entity (child) offer two or more companies the opportunity to share risk and combine complementary strengths ADVANTAGES -- can limit financial risk -- learn about new market environment -- allow partners to achieve synergy by combining different value chain strengths -- may be only way to enter country or region DISADVANTAGES -- partners must share rewards as well as risks -- potential for conflict between partners

introduction

innovation/new product offered -- new product class -- sales/profits are low -- marketing effort > stimulate demand for product type (primary demand) > target "innovators" can be really short or long PIONEER = 1st to come out with new innovation ex: foldable phones, google glass ex: Miller Lite marked the beginning of the light beer product category

distinctive characteristics of services

intangibility -- not inventoriable, fluctuations in demand are more difficult to manage -- can't be readily displayed or communicated to customers -- some services are difficult for consumers to conceptualize or fully understand -- more variance in outcomes based on the differences in how consumers experience a service heterogeneity -- inconsistent, people, responses -- hard to control quality -- ex: NBA inseparability -- of production and consumption -- one consumers actions can affect others -- offers opportunities for customization -- ex: Hotel, classrooms perishability -- one time use -- need a recover strategy -- need flexible pricing

information search

internal sources -- stored in memory, most reliable, experiences (move from external to internal) -- ex: buying gum external sources -- group -- marketing -- public -- experiential/trial (most powerful marketing source) the longer the time and greater the effort spent searching for information, the greater the cost of the search -- can lower the information search costs by providing point of purchase information

sales and profit life cycles

introduction, growth, maturity, decline (for an industry/product category)

brand extensions

involve the use of a successful brand name to launch new or modified products in a new category gives a new product instant recognition and faster acceptance saves the high advertising costs usually required to build a new brand name involves some risk, may cause confusion or the image of the main brand examples: >>Virgin Records --> Virgin Atlantic >>Nike --> apparel, golf, basketball, etc >>aw & Order --> Law & Order Special Victim Unit >>Clorox Bleach --> Clorox toilet bowl cleaner, green works, etc.

5 attributes that underlay performance

primary ingredients and supplementary features product reliability, durability, and serviceability service effectiveness, efficiency, and empathy style and design price

what makes a strong brand

keys to enduring brand leadership 1. vision of the mass market -- constant monitoring, MR of changing tastes -- ex: Pampers disposable diapers 2. managerial persistence -- committing effort over long time periods 3. financial commitment -- strong brands require high marketing costs -- ex: Anheuser Busch 4. relentless innovation and creating new versions -- products must be updated constantly -- Gillette - 20 new products -- P & G Look at Crest, Tide, etc. 5. asset leverage -- using strong position in one category to establish leadership in another, related category -- ex: Coca-Cola is super branded

name selection criteria

legal and not in use convey benefits, qualities, messages, personalities easily translated, spoken, distinctive, extendable, remembered

improving service quality

listening reliability basic service service design recovery (servers calling in sick; have backup plan) surprising customers fair play teamwork employee research servant leadership (manager stepping in to help)

gaps that cause unsuccessful service delivery

listening gap service design and standards gap performance gap communications gap gap between perceived service and expected service

firm strategy, structure, and rivalry

local conditions affect firm strategy low rivalry made an industry attractive, but in the log run more local rivalry is better = innovation and improvements high local rivalry results in less global rivalry local rivalry forces firms to move beyond basic advantages that the home country may enjoy, such as low factor costs

routine decision making

low involvement (almost subconscious) few if any alternatives considered lower priced ex: most supermarket items

multi-branding

marketing of more than two competing and almost identical products, that belongs to a single organization and is filled under different and unrelated brands offers a way to establish different features and appeal to different buying motives allows a company to lock up more reseller shelf space drawback = each brand might obtain only a small market share, and non may be very profitable examples >>Unilever's personal care brands (Dove, Axe, Suave, etc) >>P&Gs laundry detergent brands (Tide, Cheer, Era, Dreft, etc)

materialism

marketing promotes materialism --> over consumption --> global warming effects of over consumption -- pollution, carbon emission, global warming, extreme weather, loss of life, environmental harm a value that guides conduct especially consumer behavior often has a negative connotation; western world criticized for this marketing DOES NOT CREATE NEEDS; but it PROMOTES materialism

money does not buy happiness

materialism negatively associated with -- self esteem and well being -- quality of life -- satisfaction with life in general actually attaining one's materialistic aspirations does not increase well-being -- extrinsic nature may be explanation -- relying on extrinsic goals

limited decision making

medium involvement several alternatives considered moderately priced ex. small household appliances or clothing

promotion (advertising)

most frequently used marketing stimulus used to trigger "problem/need recognition" with consumers

postpurchase behavior

most important stage bc it feeds into next purchase decision postpurchase doubt is common bc each of the alternatives considered has both advantages and disadvantages = COGNITIVE DISSONANCE and can lead to either a return or negative evaluation of a brand doubt typically increases with... -- the importance of the purchase -- the degree of similarity between the item selected and items rejected marketers can help reduce doubt by... -- reassuring buyers through ads and personal communications -- providing quality post-sale services

maturity

most industries are in this stage sales plateau/product is familiar -- competition intense (highest) -- new product class competitors marketing effort -- differentiation continues (SUPERFICIAL) -- promotion increases while price declines (stabilizes) -- target "early majority" and "late majority" -- try to remove risk/skepticism or new uses or new segments ex: automobiles, phones, flat screen TVs

consumer buying process (aka buyers decision process)

need recognition information search evaluation of alternatives purchase decision post-purchase behavior

how do the authors view image base advertising

negatively, blame for over consumption

what is a new product?

new to the world products -- red bull, in-line skates, Kevlar, word software new category entries -- Hewlett-Packard PCs, Hallmark gift items, discover card additions to product lines -- line extensions and flankers product improvements -- Gogurt, Windows 7, 2010 ford taurus repositionings -- Arm & Hammer baking soda

people problems

non cooperation anger being too loud obnoxious annoying behavior unjustified complaining insensitivity to others

decline

sales/profits decline competition -- increases outside product class -- decreases within product class marketing effort -- find new users -- target "laggards" (slow to accept change) -- LOW budget/costs ex: landline phones, cigarettes, cable TV, newspaper, taxis

non compensatory decision method

not considering all attributes

product decisions & new product development

of the 4Ps, product decisions are most critical in determining marketing success if a product cannot provide a distinctive BENEFIT to the consumer, it will not survive the ability of a firm to efficiently and effectively develop new products if often critical to survival successful new products are generally more profitable than successful existing products because they generally avoid intense price competition companies that depend solely on profits of existing products are threatened by changing consumer tastes or new products from competitors important from a societal perspective high risk/high reward needs to fulfill an unfulfilled need

offerings

one may thing of all ____ as having tangible and intangible components

polycentric

opposite view of ethnocentrism belief that each country in which you do business is unique allows each subsidiary to develop its own unique marketing strategies in order to succeed leads to a localized or adaptation view that assumes products MUST be adapted to succeed known as multinational companies

evaluation of alternatives: attribute sets

outside to inside: universal set (every possibility) retrieval set (set I am aware of) evoked set (what you compare) choice

service quality Ps

people -- training and monitoring is paramount -- people involved in the service may affect how the service is perceived by the customer -- ex: Chic-fil-a vs McDonalds process -- the systems, procedures, and methods by which activities are performed for service deliver -- give customers cues by which to judge service quality -- process differentiation maybe standardized (easy) vs customized (more difficult) psychical evidence -- servicescapes -- the service environment in which the service is delivered including all tangible elements involved in the service delivery -- ex: mizzou's campus are all interrelated -- a higher-level of employee will result in better service and higher prices -- need to marry customer and employee interests when possible >> ex: Southwest Airlines

innate needs

physiological needs for food, water, air, clothing, shelter, and sex also known as biogenic or primary needs others: money, human contact, sleep

market testing

premarket tests -- customers exposed -- customers surveyed -- firm makes decision test marketing -- mini product launch -- more expensive than premarket tests -- market demand is estimated ex: clear Pepsi = failure

buyer's decisions

product choice brand choice dealer choice purchase timing purchase amount

alternative evaluations

product/service features or attributes importance weights -- take importance weight x alternative to choose which to buy -- cruise line example decision method -- compensatory vs non compensatory

ways for marketers to increase demand for their offerings

provide a good consumer experience to reinforce future purchase use motivating cues associate offering with strong drives

need recognition

recognition that there is a need or want that requires satisfaction -- stimulus triggers recognition (internal or external)

solutions to customer failures

redesign processes and redefine customer roles to simplify service encounters incorporate the right technology to aid employees and customers create high-performance customers by enhancing their role, clarity, motivation, and ability -- ex: southwest airlines help video for overhead bags encourage customer citizenship where customers help customers -- ex: no phones in movie theatre

factor conditions

refers to a country's endowment with resources human, physical, knowledge, capital, infrastructure

determinants of service quality

reliability responsiveness assurance (guarantee) empathy tangibles

simplifiers

reusable, water bottle, etc life simpler, economic, enviornmental

types of decision making

routine, limited, extensive (level of involvement buyer has) generally associated with price levels involvement increases when there is a perceived risk (social or physical)

growth

sales/profits grows -- competition expands (e.g. bud light, coors light) -- marketing effort > DIFFERENTIATE product > stimulate demand for brand (secondary demand) > target "early adopters" (imitators) --- has major influence on others ex: other competitors introduce product offerings and product/service fees and decrease while sales grow ex: bird scooters, wireless headphones, streaming, Alexa, social media, vaping

brand free zones

schools, institutions, polling place, religious places, hospitals

heuristics and biases (consumer behavior issues)

shortcut in decision making our use of heuristics is pervasive; memories have limited capacity and there is a ton of info used to ease cognitive effort ex: instead of comparing Mp3 players on all features (attributes), one might use a hierarchical rule --> consider all under $100, buy if available or else one with most memory bias = heuristics that result in faulty decisions non compensatory method

evaluation of alternatives (including establishing criteria)

should yield a set of the most preferred alternatives, called the evoked set or consideration set can be single or multiple criteria while comparing attributes -- multiple criteria typically are not equally weighted in a decision consumers' evaluations often incorrect due to inexperience or bias comparing alternatives partial process -- evaluating the top 3 attributes for each, or eliminating some if they don't rate use HIERARCHIAL HEURISTICS -- where we use one attribute to exclude alternatives, then make a comparison of remaining

external markets for virtue

some customer segments may reward corporate social responsibility initiatives while others don't -- benefit segmentation: CSR most important vs Price most important favorable response to CSR (profitability) -- dependent on fit between consumer values, firm values, and specific issue initiative -- must be seen as authentic

representativeness heuristic (consumer behavior issues)

stereotyping bias in which prior probabilities are ignored ex: ad shows mom fixing Ovaltine for kids who say "more Ovaltine please"; bias occurs if viewers believe "mothers care about the health of their kids, so Ovaltine must be healthy" ex: male nurse of MLB player ex: cleaning products starting to change from stereotypical women cleaning

definitions of happiness

subjective well being = satisfaction with life + positive mood - negative mood PERMA MODEL -- postive emotion, engagement, relationships, meaning, accomplishment (comes last)

success and happiness

success does not actually lead to happiness when we succeed in reaching a goal, we simply set higher goals happiness DOES LEAD TO: -- greater intelligence, creativity, productivity, energy those who are happiest have: -- better secure jobs, superior productivity, less burnout, less turnover, greater sales, faster and more accurate medical diagnosis the external world really doesn't affect our happiness much (only 10% of our happiness is predicted by the external world) 90% is based on how our brain interprets that world and how we choose to respond to it

identification of alternatives (info search) influenced by...

the ability to recall past experiences the consumer's confidence in recalled info the cost of collecting more info

coordination of marketing activities

the degree to which global, marketing-mix activities are planned and executed interdependently

global market penetration

the extent to which a company has operations in major world markets

integration of competitive moves

the extent to which a firm's competitive marketing tactics in different parts of the world are interdependent

concentration of marketing activities

the extent to which activities related to the marketing are performed in one or only a few country locations

standardized versus adaption

the extent to which each marketing mix element can be standardized (used the same way) or must be adapted (used in different ways) in different country markets

international marketing

the marketing of products outside one's domestic market

the competitive advantage of nations

the presence or absence of particular attributes in individual countries influences industry development 1. factor conditions 2. demand conditions 3. related and supporting industries 4. firm strategy, structure, and rivalry

regiocentric

the region becomes the relevant geographic unit management's goal is to develop a regional integrated strategy (e.g. NAFTA or the EU) may be viewed as a variant of the multinational view (polycentric) ex: Ripley is a Santiago, Chilean based retailer that has stores in Columbia and Peru -- South America is their relevant geographic unit

availability bias (consumer behavior issues)

the tendency to use information that is most readily available ex: consumers considering FAST FOOD or beer alternatives that have been recently advertised ex: a consumer considers purchasing a home security system after a coworkers house was broken into recent and vivid = extra effect killed by lightening > stingray overestimating odds

Why does a firm need a new products strategy?

to chart the group's/team's direction to set the group's goals and objectives to tell the group how it will play the game

international culture and Geert Hofstede's cultural typology

understanding the differences between national cultures is a key to successful international marketing cultures of different nations can be compared in terms of 5 dimensions 1. Power Distance Index -- expresses the degree to which the less powerful members of society accept and expect that power is distributed equally -- people in societies exhibiting a large degree of PDI accept a hierarchical order 2. Individualism vs Collectivism -- individualism = loosely-knit social framework, care for just family -- collectivism = tightly-knit social framework, care for all 3. Masculinity vs Femininity -- masculinity = achievement, heroism, assertiveness, material rewards, competitive -- femininity = cooperation, modesty, caring for weak, quality of life, consensus oriented 4. Uncertainty Avoidance Index -- expresses the degree to which the members of a society feel uncomfortable with uncertainty and ambiguity -- issue here is how a society deals with the fact that the future is unknown 5. Long Term (pragmatic) Orientation vs Short Term (normative) Orientation -- low score = prefer to maintain traditions and norms, view change with suspicion -- high score = encourage thrift and efforts in modern education as way to prepare future 6. Indulgence vs Restraint -- indulgence = allows free gratification of basic and natural human drives related to enjoying life and having fun -- restraint = suppresses gratification of needs and regulates it by means of strict social

trading up

upmarket adding a higher-priced product to a line to attract a higher-income market and improve the sales of existing lower-priced products

geocentric

views the entire world as a potential market and strives to develop integrated global strategies serves world markets from a single country or sources globally for the purposes of focusing on select country markets serve global markets and utilize global supply chains have a blurring of national identity -- stateless seeks to build a global strategy that is responsive to local needs and wants known as global or transnational companies "think globally, act locally" **companies that seek international growth evolve from an ethnocentric, polycentric, of regiocentric orientation into a geocentric orientation ver time

7 lessons on best service

virgin airline video 1. be visible 2. express passion & commitment 3. employees = greatest asset 4. hire people with virgin attitude (positive, friendly) 5. empower employees 6. engage in social media with a genuine voice 7. have fun

product characteristics

warranty packaging -- functional use -- attention getting -- providing information ex: BANANA

global world

we are affected by events all over the world directly and indirectly ex: foldable 5G phones, ppl in countries fleeing from politics to another, EU regulations on FB, google, privacy terms

happiness advantage

we can raise our level of happiness permanently if we are more purposeful about he way we pursue meaningful goals and opportunities that are all around us created by practicing... -- meditation >> lower stress, improve immune -- the power of now >> avoid anxiety -- acts of kindness >> inc mental health, dec stress -- infuse positivity into surroundings >> boost positive mood and working memory, creating broader capacity to think -- less cell phone use >> correlation between amount of time spent viewing device screens and unhappiness in social relationships and life in general -- exercising >> less depression, increases motivation, reduces stress and anxiety and helps us achieve "flow" -- spend money but not on stuff >> experiences shared with others, positive emotions

related and supporting industries

when local supporting industries are competitive, firms enjoy more cost effective and innovative inputs

decisions being made when purchasing a product

whether to buy as well as where and how to buy specific features (options) -- ex: car, phone, house, insurance where/when to make purchase -- ex: gas, perishable items, sales how to take possession method of payment

marketing and sustainability

within current "pro-growth" economic paradigm -- target and grow "green segments" -- "products made in Missouri" -- buying local

stores and their parent country

zara = spain H & M = sweden BMW = germany Nokia = finland Gucci = italian Louis Vuitton = france Nestle = switzerland panasonic = japan samsung = south korea