Marketing Exam 1

7C framework 1: core goals

Basis of a marketing strategy -- Main goal of a website: engage its users by encouraging them to spend time viewing and interacting with the content --> more specific goal might be to engage customers in commerce, or to educate the customer about the product

Organic search

When a user enters a keyword search into a search engine like Google, the organic search ensues that determines the ranking that appears on the search engine's page -- The more relevant the key term, the higher the ranking will be on the page of search results -- The process of listing web page results based on the relevancy of key terms

4Ps: promotion

communication by a marketer that informs/persuades/reminds potential buyers about products or services, trying to influence their opinions and elicit a response

Value cocreation

customers act as collaborators with a manufacturer or retailer to create the product or service

locational excellence

especially important for retailers and service providers, it's all about achieving excellence by having a strong physical location and/or internet presence

Consumers as your only revenue

· Customers are your only revenue - producing assets o Everything in a company is a cost, it's only through customers buying product that you generate revenue (goal: enough revenue to cover the cost o Marketing as the sole discipline that brings in revenue o High demand, low supply = you can afford to be rude to the consumers because there's no other game in town o Today, the supply is high, so to succeed, you need to pull consumers away from the competition and convert them to your product

affective component of attitude

A person's feelings or emotions about an object, person, or event.

Lifestyle

A person's pattern of living as expressed in his or her activities, interests, and opinions

Triple bottom line

A way to measure performance according to economic, environmental, and societal criteria

Wheel of Social Media Engagement

Acts as a unifying framework -- Fundamental drivers of social media engagement, represented as five related effects -- Hub: repository of past and current social media engagements, spokes are the five effects that drive social media

Business to business (b2B) buying process step 2: product specification

After the need has been recognized and alternative solutions have been considered, the buyer writes a list of potential specs vendors can use to develop their proposals

4Ps: price

All about capturing value -- Everything has a price, although it might not be a monetary one -- Price is everything the buyer gives up in exchange for the product -- Price has to be determined carefully based on potential buyer's belief about its value - figure out how much customers are willing to pay so they're satisfied with the purchase, while the seller still gets some profit

Universal set

All possible choices for a product category

Evoked set

Alternative brands or stores that the consumer says they would consider when buying something

Default

An element of choice architecture that deals with "no-action" conditions by imposing a choice on a person who fails to make a decision or doesn't actively opt for a different alternative

4E framework: experiencing the product or service

Being able to experience the product/service before buying it expands the market significantly

cognitive component of attitude

Beliefs or knowledge about a specific object of interest.

Business ethics

Branch of ethical study looking at ethical rules and principles within a commercial context, the moral/ethical problems that might arise in a business setting, and social obligations that apply to businesspeople

Marketing social factors

Consumer decision process is influenced from within by psychological factors, and from without by external social environment (family + reference groups + culture) -- Family: consider how families might influence purchase decisions of their members -- Reference group: One or more people an individual uses as a basis for comparison regarding feelings, beliefs, and behaviors (provide info to others through conversation, like blog posts to followers --> consumers can identify with reference groups to create and maintain self-image, and then buy accordingly to maintain that self-image

Factors that affect the marketing environment

Consumers at the core -- Consumers are influenced directly: immediate actions of the focal company, company's competitors, corporate partners of the company, and physical environment -- Consumers are influenced indirectly: impacts of culture, demographics, social + technological + economic + political/legal factors -- Firm needs to consider the entire business process from the consumer's POV

Opt in

Customer privacy issue big in Europe, takes the POV that consumers "own" their personal info, so retailers have to get consumers to explicitly agree to share their info

Key conscious marketing stakeholders

Customers, society, marketplace, and employees

7C framework 5: Communication

Digital communication needs clear, helpful, meaningful content -- Communication vehicles on blogs, etc. determine how effectively the firm can interact with and engage site visitors

Marketing ethics

Ethics issues that are specific to the domain of marketing

Physiological (safety) risk

Fear of actual harm should the product not perform properly

Social risk

Fears that consumers suffer when they worry others might not like what they buy

Determinant attributes

Features of the product or service that are important to the buyer, on which competing brands are seen to differ

Key conscious marketing stakeholders: Employees

Firm has to take care of employees first and foremost

Conscious marketing principle 3: conscious leadership to create a corporate culture

Firm's leaders are dedicated to being conscious at all levels of business through the entire culture of the company

Key conscious marketing stakeholders: customers

Firms have to consider effects on customers, react to trends quickly

Ethics versus social responsibility

Framework for ethical decision-making can help people work towards common ethical goals

Different types of consumer needs: functional, psychological, or both

Functional needs: relate to the performance of a product or service Psychological needs: relate to personal gratification consumers experience with a product or service

7C framework 3: content

Info content is key to being successful with the 4E framework of digital marketing -- Have to constantly monitor the content they share digitally and make sure the info is relevant to the target markets and creates excitement so the users will stay interested in engaging with the website and the company -- Anticipate visitors' questions and attempts to answer them through the content they present --> home page is especially important: first page has to define the firm's purpose clearly, if not, the visitors will exit the site -- Content has to align with the target market and content is NOT directly about the firm's products or services, rather, it's about things that matter to the target market -- Every online channel helps customers interact with the firm

Economic situation

Macroeconomic factor that affects the way consumers buy merchandise and spend money, both in the marketer's home country and abroad -- Inflation: persistent increase in the prices of goods and services -- Foreign currency fluctuations: changes in the value of a country's currency relative to the currency of another country, can influence consumer spending -- Interest rates: The cost of borrowing money, the cost to the consumer/the fee the bank charges you to borrow money -- Shifts in these economic factors make marketing easier for some and harder for others, depending on their situation

Conscious marketing principle 4: making ethics-based decisions

Make decisions for the company that are based on sound marketing ethics

Consumer decision process model step 5: postpurchase

Marketers are interested in postpurchase behavior because it entails actual customers, rather than potential ones -- Ensure postpurchase satisfaction: realistic expectations of the product, correct product use, stand behind the product with guarantees and warranties, encourage customer feedback, thank customers for support

Consumer decision process model step 4: Purchase and consumption

Measure conversion rate to see how well the retailer has converted purchase intentions into actual purchases -- Conversion rate: measure that indicates what percentage of visitors or potential customers click, buy, or donate on the site

Privacy concerns

More consumers are feeling a loss of privacy, but at the same time the Internet of Things has increased accessibility to consumer info

Evaluating the economic environment via metrics

More wealthy the inhabitants of a country, the better the opportunity a firm has in that country Trade deficit: results when a country imports more goods than it exports Trade surplus: occurs when a country has a higher level of exports than imports Gross Domestic Product: Market value of goods and services produced by a country in a year, the most widely used standardized measure of output Gross National Income: GDP plus the net income earned from the investments abroad (minus any payments made to non-residents who contribute to the domestic economy) Purchasing Power Parity (PPP): A theory that states that if the exchange rates of two countries are in equilibrium, a product purchased in one will cost the same in the other, expressed in the same currency

Consumer decision process model step 1: Need recognition

Need recognition: the beginning of the consumer decision process, happens when consumers recognize they have an unsatisfied need and want to go from their actual (unsatisfied) state to a different (satisfied) state --> wants: goods or services that are desired, but not necessarily needed

Different types of B2B buying situations

New buy: purchase of a good or service for the first time, likely to be a very involved decision because the buyer/buying organization has no experience with the item -- Hardest to market and sell for because the buying organization has to change its current habits -- Several buying center members likely involved, and the level of involvement will be higher, with people spending more time at each stage of the process Straight rebuy: a buyer has purchased the same thing before, this time they're just buying more of the same thing -- Usually only the buyer is involved (like a habitual purchase in a B2C transaction) modified rebuy: when a buyer has purchased something similar before, but wants to change some specs this time around -- spend less time at each stage of the process Different strategies used for different buying situations

Consumer decision process model step 3: evaluating alternatives

Once the problem has been recognized and possible outcomes explored, sift through available choices and consider alternatives

Social media

Online and mobile tech that creates and distributes content to facilitate interpersonal interaction -- Helps consumers and firms build connections that allow them to share all different forms of information

Conscious marketing principle 2: Considering stakeholders and their interdependence

Potential stakeholders: broad set of people who might be affected by a firm's actions (corporate shareholders, employees, families, supply chain members, etc.) Conscious marketers consider how their actions will affect their range of stakeholders and potential stakeholders -- Want to serve as many stakeholders as possible and avoid damaging anyone, so the focus shouldn't be solely on maximizing profits -> instead, conscious marketing would tell them to focus on the broad implications of their actions -- Achieve the most benefits for the most stakeholders

Impulse products

Products purchased without planning, like fragrences and cosmetics at Macy's or tabloids at QFC

psychological factors

Psychological factors influence how people receive marketers' messages -- Motive: a need or want that is strong enough to cause a person to seek satisfaction

Memories

Psychological factors that affect decision making that consist of info acquired and stored in the brain

Digital marketing

Relates to all online marketing activities - includes all digital assets, channels, and media --> Not just online, but also social media and mobile marketing --> Online marketing activities: web design, blogging, search engine optimization -- Presence of online, social media, and mobile marketing is expanding relative to more traditional integrated marketing channels and communications

Consumer decision process model

Represents the steps consumers go through before, during, and after making a purchase

Business to business (b2B) buying process step 3: RFP process

Request for Proposals: process through which buying organizations invite alternative suppliers to bid on supplying their required components -- RFP could be posted on company website, another B2B portal, or sent to favorite vendors directly

Financial risk

Risk associated with monetary outlay, includes initial cost of the purchase as well as the costs of using the item or service

7C framework 2: Context elements

Second element of website design: traditional contextual elements like design and navigation -- Context elements have to be aligned with the target markets

Information storage stage

Second stage in memory development, refers to how knowledge is integrated and stored with what consumers already know

Consumer decision rules

Set of criteria that consumers use consciously and subconsciously to quickly and efficiently select from among lots of alternatives

Evaluative criteria

Set of important attributes about a particular product

Marketing: social trends

Social trends shape consumer values - more focus on sustainability, health, wellness, better use and distribution of food -- Also of interest: energy trends, green marketing, social concerns

Key conscious marketing stakeholders: environment

Sustainability as a key aspect of marketing

Tech advances in marketing

Tech makes it easier for customers to interact with company, mobile devices offer another channel of access -> makes customers more loyal --> Artificial intelligence (AI): solutions that rely on computer systems to perform tasks that require human intelligence --> Internet of things, aka IoT: when multiple "smart devices" with internet-connected sensors, combine the data they've collected to help consumers and companies consume more effectively

Exchange

The trade of things of value between buyer and seller, so each is better off as a result -- Sellers offer products or services, then communicate and facilitate the delivery of the product to consumers -- Buyers finish the exchange: give the seller info and money

Building B2B Relationships

-a multitude of ways to enhance relationships, and these methods seem to be advancing and evolving by the minute. EX: blogs and social media can build awareness, provide search engine results, educate potential and existing clients about products or services, and warm up a seemingly cold corporate culture. An expert who offers advice and knowledge about products increases brand awareness, and a blog is a great medium for this information. -Web analytics, like traffic on the website and the number of comments, can offer tangible evaluations, but a better measure is how often the blog gets mentioned elsewhere, the media attention it receives, and the interaction, involvement, intimacy, and influence that it promotes. EX: Twitter, the micro-blogging site, is valuable for B2B markets, because they can communicate with other businesses as often as they want. -

Crowdsourcing

Users submit ideas for a new product or service, and/or comment or vote on the ideas submitted by others

How marketing creates value and firms become more value-driven

Value stems from these four key activities: adding value, marketing analytics, ethical and social dilemmas, and social/mobile marketing

undesirable consumer behavior

-although firms want satisfied, loyal customers, sometimes they fail to attain them. -Passive consumers are those who don't repeat purchase or recommend the product to others. More serious and potentially damaging, however, is negative consumer behavior, like negative word of mouth and rumors.

Corporate social responsibility (CSR)

Voluntary actions taken by a company to address the ethical, social, and environmental impacts of business operations and the concerns of stakeholders -- CSR is important in conscious marketing, but isn't the same thing as conscious marketing

noncompensatory decision rule

When consumers choose a product or service based on the subset of its characteristics, regardless of the value of other attributes

Choice architecture

When evaluating alternatives, the design of the environment impacts how people make decisions

Compensatory decision rule

Where the consumer is evaluating alternatives and trades off one characteristic against another so that the good characteristics compensate for the bad ones

4E framework: engage the customer

With engagement comes action, potential for relationship, and maybe even loyalty and commitment -- Social media tools offer a way for customers to actively engage with firms (positively or negatively) -> positively engaged customers are more profitable consumers --> Negative engagement has the potential to be more damaging than positive engagement is beneficial

Professional blogs

Written by experts, reviewing and recommending services -- Consumers trust pro bloggers' reviews, except when they know the reviewer is being compensated for their work

Customer relationship management (CRM)

a business philosophy and set of strategies, programs, and systems focused on identifying and building loyalty amongst the customers the firm values the most

Page view

number of times an internet page gets viewed by any visitor

limited problem solving

occurs during a purchase decision that calls for, at most, a moderate amount of effort and time

negative word of mouth

occurs when consumers spread negative information about a product, service, or store to others

Market share

percentage of a market accounted for by a specific product

Political/legal environment

political parties, government organizations, legislation and laws -- marketers have to understand and comply with any laws that affect them, like fair competition and consumer protection laws -- Laws have also been enacted to protect consumers: marketers can't do false or misleading advertising, manufacturers can't use harmful things in their products, organizations have to stick with fair and reasonable business practices when engaging with consumers

What is the Marketing Mix?

product, price, place, promotion (the four Ps) -- The controllable set of activities that a firm uses to respond to the wants of its target market -- Create product, capture price, communicate promotion, convey/deliver product -- Have to be aware of the effects/consequences of a product

Organizational culture

reflects the set of values, traditions, and customs that guide a firm's employees' behavior -- Culture often comprises a set of unspoken guidelines that employees share through various work situation -- Can influence purchasing decisions -- Generally either autocratic, democratic, consultative, or consensus --> knowing which culture is big at which organization helps the seller decide how to approach that client and who to tell what info to

Consumer decision process model step 2: search for information

search for information about the options that exist to fulfill the need you've identified -- Length and intensity of the search based on the degree of perceived risk associated with the purchase: more risk associated with the purchase means a longer, harder search --> internal search for info: buyer examines their memory and knowledge about the product or service, gathered via past experiences -- External search for knowledge: buyer seeks outside information, beyond their personal knowledge base, to make the decision

Sustainable competitive advantage

something the firm can persistently do better than its competitors

Market growth rate

the annual rate of growth in the specific market in which the product competes

Marketing environment: factors that affect the immediate environment

the capabilities of the company, the company's competitors, corporate partners, and physical environment -- Company capabilities: focus on satisfying the customer needs that match the core competencies of the company -- Competitors: marketers have to understand their firm's competitors, like strengths, weaknesses, and likely reactions to things their own firm does -- Corporate partners, aka parties that work with the focal firm: understand the role these partners play and how they work with the firm to create a single efficient manufacturing system -- Physical environment: Products and services are influenced by how they are used in the environment and how they affect the environment --> Physical environment: The land, water, air, living things --> Energy trends: firms are trying to engage in sustainable practices re: manufacturing products and providing services, as well as the types of products and services they offer --> Green marketing: strategic effort by firms to supply customers with environmentally friendly merchandise --> Have to be aware of the threat of Greenwashing: marketing products or services as environmentally friendly with the goal of gaining public approval and sales rather than actually helping the environment --> Regarding greenwashing: Consumers have to question whether a firm is spending more money and time advertising its green credentials rather than actually working to develop environmentally sound practices

Business to business (b2B) buying process Step 5: Order specification

the firm places its order with its preferred supplier(s), including a detailed description of goods, prices, delivery dates, and maybe penalties for noncompliance -- Supplier then sends acknowledgement to buyer that it has the specs, and fills the order by the due date

Buying Center

the group of people typically responsible for the buying decisions in large organizations -- Initiator: The buying center participant who first suggests buying that particular product or service -- Influencer: The participant whose views influence other members of the buying center in making the final decision -- Decider: The participant who ultimately decides any part of (or the entire) buying decision (what to buy, where, how, etc.) -- Buyer: The participant who handles the paperwork of the actual purchase -- User: the person who consumes or uses the product or service purchased by the buying center -- Gatekeeper: the participant who controls info or access to decision makers and influencers

Derived demand

the linkage between consumers' demand for a company's output and its purchase of necessary inputs to manufacture or assemble that particular output -- Demand for B2B sales is often derived from B2C sales in the same supply chain

Segmentation

the marketplace can be segmented/divided into groups of people who are important to an organization for particular reasons -- You need to know which marketplace segments your product is most relevant to (old ladies, runners, etc) and then build a marketing strategy that targets those groups

Learning

the process of acquiring new and relatively enduring information or behaviors -- Thought process or behavior that comes from experience and takes place throughout the consumer decision process

Business to business (B2B) marketing

the process of buying and selling goods or services to be used in the production of other goods and services, for consumption by the buying organization, or for resale by wholesalers and retailers -- Usually involves manufacturers selling to wholesalers who will eventually sell to retailers -- Can also involve service firms marketing their services to other businesses rather than the ultimate consumer -- Ultimate user of the product being sold is another business -- B2B transactions are usually more complex and involve multiple members on the buying and selling sides -- B2B firms focus on serving specific types of customer markets by creating value for these customers - find it productive to focus their efforts on key industries/market segments

Perception

the process of organizing and interpreting sensory information, enabling us to recognize meaningful objects and events

behavioral component of attitude

the way a person acts with respect to something

Adding value

value-oriented marketers measure the benefits customers perceive against the cost of their offerings -- use available customer data to find opportunities that satisfy their customers' needs better, keep costs down, and develop long-term loyalties

Key strengths of the broad corporate brand

versatility and diversity

Retrieval stage

we access the desired information

customer loyalty

when customers buy a product from the same supplier again and again - sometimes paying even more for it than they would for a competitive product

Key conscious marketing stakeholders: marketplace

when one firm leads the way, others have to follow or risk being left behind

Long Tail selling/marketing

· Long Tail: A few things at the top sell a lot, lots of little things sell a little (43% of sales from bestsellers, 57% of sales from niche products) o You can make a lot of revenue from little niche things o Today, you can reach all the little niche markets (websites help you reach the target demographics that will buy niche products) -- There's money in niche markets

Mendoza marketing model

· Mendoza Marketing Model: wide-angle view of marketing -- The 5 Cs of strategic marketing --> Context --> Customer --> Competitors --> Collaborators --> Company -- STP marketing strategy --> Segment --> Target --> Position -- 4 Ps of the marketing mix --> Product (1 page) --> Price (1 page) --> Place (1 page) --> Promotion (1 page)

relative market share

a measure of a product's strength in a particular market, defined as the sales of the focal product divided by the sales achieved by the largest firm in the industry

Extended problem solving

a purchase decision process during which the consumer devotes considerable time and effort to analyzing alternatives; often occurs when the consumer perceives that the purchase decision entails a lot of risk

habitual decision making

a purchase decision process in which consumers engage with little conscious effort

In-app purchases

a purchase made on a freemium app that enables the user to enhance the app

Marketing plan

a written document, featuring analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives, and strategy -- Objectives and strategy defined in terms of the four Ps -- Report also features action programs for implementing objectives and strategy, as well as projected/pro forma income and possibly other financial statements -- Writing everything down helps everyone involved know what the objectives are and how they'll be met (reference point for evaluating whether or not the firm meets its objectives

conscious marketing

an approach to marketing that acknowledges four key principles: 1. Higher purpose 2. Stakeholders 3. Conscious leadership and culture 4. Ethics

How to ensure your offerings provide value

by making a product that can satisfy virtually every demand a consumer has

Keyword analysis

determine what keywords people use to search for their products and services -- With this, they can refine their sites by choosing keywords to use on the site that are the same ones used by customers -- Keywords should go on site pages, in page titles, and in URLs -- Then the return on investment can be assessed that came with improving the site (calculating incremental profit increase, divided by the investment on the site improvement)

Conversion rate

measure that indicates what percentage of visitors or potential customers click, buy, or donate at the site

Business to business (B2B) buying process step 4: Proposal analysis, vendor negotiation, and selection

-- Buyer organization evaluates the proposals it got in response to the RFP -- Often, the list is narrowed to a few suppliers, and the buyer goes over key terms in regards to each possible supplier

Types of B2B markets

-- Manufacturers and service providers: manufacturers buy raw materials to make and market their own goods/services -- Resellers: marketing intermediaries that resell manufactured products without major alterations --> Involve wholesalers (firm that buys large quantities and then resells the goods to retailers or industrial/business users) and distributors (reseller that resells manufactured products without significantly altering their form, distributors often buy from manufacturers and then sell to other businesses like retailers via B2B transactions) -- Institutions: hospitals, school systems that buy things in bulk -- Government

Factors that affect consumers' search processes when seeking to fulfill a need

-- Perceived benefits versus perceived costs of the search (is it worth the time and effort to look for info on this thing), locus of control (either internal, "I control the outcomes of my actions" or external, "fate controls all outcomes"), and actual or perceived risk (risk can be performance, financial, social, physiological, or psychological, the higher the risk the more engaged the search)

Marketing: Efficient utilization and distribution of food social trend

-- Retailers expanding their efforts to eradicate food deserts where consumers (usually lower socioeconomic status) have limited/no access to affordable healthy/fresh food options

4E framework: how to educate customers

-- clear call to action to draw customers through computers, tablets, etc. --> potential customers arrive at websites: chance to educate the customer and communicate offered benefits --> some info might not be new, but education is more about reminding people about what they already know

Generational cohort

--> Generational cohort: a group of people of the same generation, usually with similar purchase behaviors because they have shared experiences and are in the same stage of life

Introducing a firm to conscious marketing

"For new firms founded on conscious marketing principles, their leaders, who are also their founders, establish the standard from the very start. But even if an existing firm seeks to move toward a conscious approach to marketing, it can adopt decision rules (as we discuss in the next section) and norms that encourage consciousness throughout its entire corporate culture. For example, to ensure that conscious marketing is infused into all levels of the firm, it can be integrated into each stage of the marketing plan"

Maslow's Hierarchy of Needs

(level 1) Physiological Needs, (level 2) Safety and Security, (level 3) Relationships, Love and Affection, (level 4) Self Esteem, (level 5) Self Actualization -- Good marketers add value to their products by pushing people up the needs hierarchy and offering info on as many of the pyramid needs as they can

Steps for making an ethical decision

1. Identify issues 2. Gather info and identify stakeholders -- Gather facts key to the ethical issue -- Identify all issues and groups that have a stake in resolving the issue 3. Brainstorm and evaluate alternatives -- All parties related to the decision should come together and brainstorm courses of action 4. Choose a course of action -- Weigh alternatives and choose a course of action that generates the best solution for stakeholders using ethical practices based on a conscious marketing approach -- Management ranks alternatives in order of preference, establishes advantages and disadvantages of each -- Choosing: ensure you've applied all relevant decision-making criteria and assess your confidence that the decision meets the stated criteria (if not confident, examine other alternatives)

Social media engagement process: doing

1. Identify strategy and goals: what do you want to promote/achieve? 2. Identify target audience -- Find an audience big enough that you can reach everyone who might want to adopt your product, but not so big that you end up trying to appeal to someone way outside your target market -- Multiple target markets: do an analysis for each different audience, because messages and channels will likely be different for each group 3. Develop budget 4. Campaign: experiment and engage -- Develop copy and images: clear call to action, eye-catching graphics, appeal to the right customers -- With social media, images and messages have to be updated constantly 5. Monitor and change -- Review the success of the campaign and tweak as needed -- analyze digital marketing analytics and website traffic, then change to increase online presence and improve digital conversion rate

Different types of buying centers

Autocratic: one person makes the decision alone, though there might be multiple participants Democratic: majority rules Consultative: one person makes the decision after soliciting input from others Consensus: all members of the team have to agree before supporting a decision

Criteria to assess global markets

4 sets of criteria to assess a country's market: -- Economic analysis -- Tech and infrastructure analysis -- Governmental actions and inactions -- Sociocultural analysis

impulse buying

A buying decision made by customers on the spot when they see the merchandise -- Recognizing need and jumping directly to purchasing without spending any time searching for additional info or evaluating alternatives

Opt out

A customer privacy issue big in the U.S. where some brand takes the POV that personal info is in the public domain, so retailers can use it however they want (forces consumers to explicitly tell retailers not to use their personal info)

Marketing strategy

A firm's target marketing mix (the four Ps of product, price, place, promotion) , and method of obtaining a sustainable competitive advantage

market penetration strategy

A growth strategy that employs the existing marketing mix and focuses on the firm's efforts towards existing customers -- could attract new customers to current target market, or encourage current target market to patronize the firm more often or buy more on each visit --> marketing penetration strategy generally needs more marketing efforts, like more advertising or additional sales and promotions, or more intense distribution efforts in certain areas where the stuff is already sold

Web portals for B2B RFPs

An internet site whose purpose is to be a major starting point for users when they connect to the web

Freemium apps

Apps that are free to download, but include in-app purchases that enable the user to enhance the app

psychological risks

Associated with the way people will feel if the product or service doesn't convey the right image

Retrieval set

Brands or stores the consumer can readily bring to mind for a certain prouct

Conscious marketing principle 1: Greater purpose of marketing

Business is about more than just making profits, so the actions taken by the company should focus on this purpose first and profit second -- The resulting engagement improves inputs and the outcomes of marketing actions

Business to business (b2B) buying process step 6: vendor performance assessment

Buyer assesses the vendor's performance so they can decide about future purchases (analysis is more formal and objective than in a B2C transaction)

Business to business (b2B) buying process step 1: need recognition

Buying organization recognized that it had an unfulfilled need

How marketing affects various stakeholders

Can affect lots of supply chain partners and/or society at large -- partners in the supply chain who could be affected; wholesalers, retailers, intermediaries like transportation or wharehousing companies -- All these entities are involved in marketing to each other -- Marketing can also benefit an entire industry or society

Multi-attribute model

Compensatory model of customer decision making

White papers

In a B2B context, white papers are a promotional technique used by B2B sellers to provide information about a product or service in an educational context, thereby not appearing like a promotion or propaganda. -- Goal: provide important info that a potential B2B buyer can understand and will help the company address its issue with new solutions -- Explain the solution in nontechnical language so the firm's executives can understand and appreciate the option before considering a purchase

Responding to the environment

In a constantly changing market, the marketers who succeed are the ones who respond quickly, accurately, and sensitively to their consumers

Planning phase for introducing conscious marketing

Introduce conscious marketing at the start of the planning process by including statements in the mission statement of the firm

Business to business (b2B) buying process

Like the B2C buying process, it starts with need recognition, but the information search and alternative evaluation steps are more formal for B2B -> needs specified in writing, ask potential suppliers to submit formal proposals, while B2C buying decisions are made more informally

Social media engagement process: listening

Listen to what customers say before engaging in conversation -- If the conversation is negative, firms should respond immediately, maybe via a social media platform, so the firm can communicate with the customers to resolve the issue --> for a positive conversation, listening will help the firm understand how to keep the good going and figure out where to promote their stuff

Marketing environment: factors that affect the larger environment (macroenvironment)

Macro-environmental factors: aspects of the external environment that affect a company's business -- Culture: the shared meanings, beliefs, morals, values, customs of a group, transmitted by words, literature, institutions, and passed down from one generation to another as it's learned over time -- Marketers have to make their products/services identifiable by and relevant to particular groups of people - have to account for the culture of the country and region --> Country culture: visible and invisible aspects of the culture of the country, sometimes the best way to market to country culture is to establish a universal appeal within the specific identity of the country culture --> Regional culture: culture of the region of the country in which people live -- Demographics: Info about the characteristics of human populations and segments, particularly those used to identify consumer markets (like by age, gender, income, education, etc). - offer a simple snapshot of the typical consumer in a specific target market --> Income: income distribution in the U.S. is more polarized: highest income groups are growing, lowest income groups are shrinking, but the range in income creates marketing opportunities at both ends of the spectrum --> Education: higher education means better jobs and higher earnings --> gender: gender roles today are more blurred, shifts in status/attitude/behaviors affect how marketers need to design and promote their products (more gender neutral, transcending gender boundaries, more customer interaction) --> Ethnicity: U.S. is getting more diverse, and foreign-born citizens tend to concentrate in a handful of certain cities -- Social: -- Technology -- Economic -- Political/legal

Choice architecture: nudge

Part of the environment that alters behavior in a predictible way without forbidding other options or changing money incentives

Performance risk

Perceived danger inherent in a poorly performing product or service

Keywords

Phrases that describe the contents of a web page

information encoding stage

The first stage in memory development where consumers transform info they get about products into storable info

Marketing: health and wellness social trend

The idea that few human bodies look perfect, so marketers are focusing on embracing real beauty (CVS campaign)

Business to consumer marketing (B2C)

The process by which businesses sell to consumers

Globalization

The process by which goods, services, capital, people, information, and ideas flow across national borders -- Global markets as a result of several fundamental changes, like reducing/eliminating trade barriers, decreasing concerns of distance and time, and standardized laws across borders

Postpurchase cognitive dissonance

The psychologically uncomfortable state produced by an inconsistency between beliefs and behaviors that in turn evokes a motivation to reduce the dissonance; buyers' remorse. -- Common for expensive, infrequent purchases

Conscious marketing in the control phase

evaluate managers on their actions from a conscious marketing POV -- systems in place to check whether each conscious marketing issue raised in the planning stage has been successfully addressed -- Systems also have to react to changes

Social media engagement process

Three steps: 1. Listen to what customers have to say 2. Analyze the info available through various touchpoints 3. Implement or do social media tactics to excite customers

Wheel of Social Media Engagement: Dynamic Effect

Twofold impact of the dynamic effect: 1) Describes the way in which info is exchanged to network participants via back-and-forth communications in an active and effective manner -- Back and forth promotes engagement, which makes consumers more likely to buy 2) Expands the impact of the network effect by examining how people flow in and out of network communities as their interests change

Conscious marketing in the implementation phase

have to consider potential markets and how to deliver on the 4 Ps

Attitude

enduring positive or negative evaluation of an object or event -- Three components: cognitive, affective, and behavioral -- Attitudes are pervasive and slow to change, but marketers see them as things to be influenced and tweaked by persuasive communications and experiences

Key conscious marketing stakeholders: society

engaging with community because they recognize the importance of community stakeholders and goodwill -- Society says: companies have to act responsibly

Situational factors

factors affecting the consumer decision process; those that are specific to the situation that may override, or at least influence, psychological and social issues -- Purchase situation (predispositions to purchase things can change in certain situations), sensory situation (store environment/five senses of visual, auditory, smell, touch, and taste can influence the consumer decision process) -- Temporal state (state of mind) can alter preconcieved notions and opinions (a bad attitude changes consumer behavior, for example) -> because retailers can't predict what happens outside the store, they make the in-store experience as nice as possible

Spotting potential marketing opportunities

find changes in what customers want, demand, or expect, and adapt the product/service accordingly

Operational excellence

involves a firm's focus on efficient operations, excellent supply chain management, and strong relationships with suppliers

Customer excellence

involves a focus on retaining loyal customers and excellent customer service

Factors influencing the consumer decision process

marketing mix, psychological factors (internal to the customer), social factors, situational factors

4E Framework for the objectives of digital marketing

1. Excite customers with relevant offers 2. educate customers about the offering 3. Help customers experience the products, directly or indirectly 4. Give customers an opportunity to engage with the digital marketing activities of the company

Phases of the marketing plan/strategy

1. Planning phase: execs and managers define the mission and vision of the business 2. Planning Phase continued: Evaluate the situation by assessing how various players affect the firm's potential for success (inside and outside the company) 3. Implementation phase: marketing managers identify and evaluate various opportunities via STP: segmentation, targeting, and positioning 4. Implementation phase continued: implement the marketing mix using the four Ps 5. Control phase: managers evaluate the performance of the marketing strategy and take any necessary corrective actions NOTE: not always necessary to go through the entire process for every evaluation

Values-based marketing

1. add value: benefits to the consumer 2. Use info: analytics 3. Use social media and media marketing 4. Do conscious marketing: focus on corporate social responsibility

Paid apps

Apps that charge the customer an upfront price to download the app, but offer full functionality once downloaded

Paid apps with in-app purchases

Apps that require the consumer to pay initially to download the app, then offer the ability to buy additional functionality

Social media engagement process: Analysis

Assess what customers are saying about the firm and its competitors -- Three main categories of analysis used to understand data collected from social media: 1. Determine the amount of traffic using their sites, etc. via hits or page views 2. Learning who the visitors are, what they're doing, and what engages/excites them: bounce rate, click paths, conversion rate 3. Analyze data that comes from other sites - how did people find our site?

Wheel of Social Media Engagement: Timeliness Effect

Concerned with the firm being able to engage with the customer at the right place and time - 24/7 from any location -- To be effective, firms have to respond quickly, or timeliness benefit diminishes -> responding quickly can positively impact customers' buying intentions (those who get faster responses say they would buy more) -- Timely interactions with firms often occur when customers engage with them at the point of purchase -- Beacon Technology: tech that allows companies tp detect where customers are (those who have enabled the feature) at any time via their phones -- Intimate connections can form between a firm and their customers - firms invest time and money to create engagement, and also capture engagement data -- Understanding how to engage effectively with consumers is key

Personal blog

Created by and for individuals, with minimal marketing implications

4 Ps: product

Creating value by developing a bunch of offerings (goods, services, etc.) to satisfy customer needs -- Each product creates value in specific ways -- Goods: items that can be physically touched, their value stems from what they can provide and how they're marketed in terms of convenience, status, performance, etc. -- Services: intangible customer benefits produced by people or machines, can't be separated from the producer - all about the experience the customer gains -- Most market offerings combine goods and services -- Ideas: intellectual concepts, like thoughts or opinions - if you agree with/adopt the ideas, you've purchased the idea that's being marketed

Showrooming

Customers visit a store to touch, feel, and try on or discuss a product's features with a sales associate, then purchase it online from another retailer at a lower price

7C framework 6: Commerce

Desktop usage is greater, and conversion rates are higher, for online purchases -- Most loyal customers are the ones using multiple channels -> firms have to offer a range of options consistently and constantly so consumers can choose --> close alignment across channels creates a seamless experience

7C framework 4: community

Firms can use websites and blogs to allow their customers to interact, socialize, share info, and create a sense of community -- comments, reviews, responses, etc. -- thought-sharing sites as effective ways to create community

Multiple sources of advantage

Firms require multiple approaches to build a "wall" around their position that stands as high as possible

Market development strategy

Growth strategy that uses the existing market offering to reach new segments of the market, be they domestic or international

Diversification strategy

Growth strategy where a firm introduces a new product or service to a market segment it doesn't currently serve (diversification opportunities can be related or unrelated) -- Related diversification: growth strategy where the current target market and/or marketing mix shares something in common with the new opportunity -- Unrelated diversification: growth strategy where new business doesn't have any common elements with the present business

Developing a marketing plan, Step 2: do a situation analysis

Use a SWOT analysis (strengths, weaknesses, opportunities and threats) to assess the environment: assess internal environment's strengths and weaknesses, and then look at the external environment in terms of opportunities and threats --> Strengths: positive internal attributes of the firm --> Weaknesses: negative attributes of the firm --> opportunities: positive aspects of the external environment --> Threats: negative aspects of the company's external environment -- Also, assess the opportunities and shaky parts of the marketplace due to changes in cultural, demographic, social, technological, economic, and political forces (CDSTEP)

Product excellence

focus on achieving high-quality products (high perceived value and effective branding and positioning) -- Effective branding and positioning is key -- A way of achieving a sustainable competitive advantage -- Investing in the brand itself, positioning the brand with a clear, distinctive image, and constantly reinforcing that image via merchandise, services, and promotions

blogs (weblogs)

online diaries with periodic posts that let people share thoughts, opinions and feelings -- Corporate blogs as a new form of marketing communications -- Corporate blogs: created by companies themselves, key to digital marketing --> educate customers when discussing products, create excitement when promoting special offers, engaging two-way dialogue

Bounce rate

percentage of times a visitor leaves the website almost immediately, like after viewing just one page

Seven primary needs met by apps

"me time," socialize, shop, accomplish, prepare, discover, self-express -- Apps can meet several needs at once

Developing a marketing plan, Step 5: evaluate performance via marketing metrics

-- Evaluating results of strategy and implementation program using metrics: measuring systems that quantify trends, dynamics, or characteristics -- metrics help explain what's happened and also predict what comes next -- Usually managers start by reviewing the implementation programs, analysis could show their strategy and mission statement need work -- Holding people accountable for performance: at each organizational level, the business unit and its manager should be held accountable only for the revenue, expenses, and profits they can control --> Expenses that affect several levels of the organization shouldn't arbitrarily be foisted on lower levels -->> use performance evals to pinpoint problem areas and examine why performance levels are above or below expected/planned levels --> hold managers accountable only in cases of inadequate sales jobs or setting inappropriate forecasts - hard when fault is difficult to assign

4E framework: how to excite customers

-- Offer has to be relevant to its targeted customers: personalize offers based on insights and info from customer relationship management and loyalty programs, and/or online analytic tools like Google analytics

Paid search

A method used by firms to appear higher up in the search results of a search engine -- Position on the search page is based on a fee charged by the search engine -- Often, an additional fee is charged every time a user clicks on the search result

hit

A request for a file made by web browsers and search engines. Hits are commonly misinterpreted as a metric for website success, however the number of hits typically is much larger than the number of people visiting a website.

Wheel of Social Media Engagement: Connected Effect

An outcome of social media that satisfies humans' innate need to connect with other people -- Two-way connection via social media: people learn what their friends are into, and they also broadcast their opinions to their friends -- Increased connectivity allows consumers to seek social media approval for themselves, and provide social approval to others

Search engine marketing

An activity used in online searches to increase the visibility of a firm by using paid searches to appear higher up in the search results -- Because consumers often rely on just the first few entries in a list of search results, the search engine marketing is becoming an important part of digital marketing strategy - it's a chance for firms to improve their position on the search engine page

Marketing

An organizational function/set of processes to create, capture, communicate, and convey/deliver value to customers -- also used for managing customer relationships in ways that benefit the organization and its stakeholders -- All about satisfying customer needs and wants

Wheel of Social Media Engagement: Network Effect

Connected effect enhances human interaction on a one-to-one basis and enables the impact of the interaction to expand exponentially -- Network effect as the outcome of social media engagement: every time a firm or person posts info, it is transferred to the poster's connections across social media, which allows the info to spread spontaneously -- Credibility and influence of the original poster and the network partners that choose to share the post determine the ultimate influence of the post -- Marketing POV: people who discuss products are more likely to buy them -- Using influencers as brand ambassadors -> a firm can use the power of digital marketing to exponentially spread its message

7C framework for online marketing

Framework encompasses 7 critical elements that marketers have to consider carefully when devising an online marketing strategy, websites, blogs, etc. to target and appeal to both potential and existing customers -- Core goals, context elements (design and navigation), content, community, communication, commerce, connection

Ad-supported apps

Free to download, but place ads on the screen when using the program to generate revenue

7C framework 7: connection

Good digital marketing engages customers and offers them a call to action -- Online marketing is all about getting customers to interact and engage with the firm continuously and positively

Product development strategy

Growth strategy that offers new products or services to the firm's current target market

Developing a marketing plan, Step 5: evaluate performance via marketing metrics -- how do you choose a metric to evaluate performance?

Lots of factors contribute to overall performance, so it's hard to find a single metric to evaluate performance --> common approach: compare firm's performance over time to itself or competing firms, using financial metrics like sales, profits, and revenues (consider absolute level of sales and profits, as well as relative levels of each) --> another possible metric: look at firm's products or services as a portfolio, depending on relative performance the profits from some products or services can be used to fuel the growth of others

Marketing analytics

Relying on data analytics to define and refine approaches to customers and markets -- Growth of big data and associated challenges, so you have to consider the implications for lots of organizations and firms, as well as for the customers

Click path

Shows how users proceed through information on a website, like how grocery stores try to track the way shoppers move through aisles

Microblog

Smaller than a traditional blog - short sentences, videos, and images (Twitter)

Sentiment analysis

Technique that allows marketers to analyze data from social media sites to collect consumer comments about companies and their products -- Assess how favorable or unfavorable the sentiments are -- analyze data from various sources to collect consumer comments and then analyze the comments to get insights into what consumers really think

Wheel of Social Media Engagement: Information Effect

The outcome of digital marketing where relevant info is spread by firms or individuals to other members of their social network -- Info is the key to turning the wheel -- Relevance of the info, and therefore its impact, depends on its context and the receiver

Consumer to consumer marketing (C2C)

The process by which consumers sell to other consumers

Business-to-business marketing (B2B)

The process of buying and selling goods or services to be used in the production of other goods and services, for consumption by the buying organization, or for resale by wholesalers and consumers

Value

The relationship of benefits to costs - all about what you get for what you give

Boston Consulting Group Matrix

a framework that classifies each product or product line within a firm's "product portfolio" -- Great for conceptualizing, hard to implement in practice (hard to measure relative market share and industry growth) -- Other measures could easily substitute to represent competitive position of the product and market's attractiveness --> Also run into the issue of self-fulfilling prophecies by putting products in certain quadrants (location in quadrant impacts how it's treated and supported in the firm)

relational orientation

a method of building a relationship with customers based on the idea that buyers and sellers should develop a long-term relationship

Mutualism

relationship between the consumer and the company where each helps the other thrive -- Feedback is critical · Mutualism: consumers and companies enable each other's success, so ethical marketers do not manipulate their consumers, it's a symbiotic relationship o Convincing and persuading rather than manipulating o Helps companies stay ethical o Marketers have to know what the consumers want before the consumers do o All about building a relationship with consumers and each keeping the other happy o The end does not justify the means - lying is never okay, so you have to figure out what resonates with your target audience and use that to get them to do what you want rather than controlling by lying

The four overarching strategies that focus on aspects of the marketing mix to create and deliver value/develop sustainable competitive advantages

-- Customer excellence: focus on retaining loyal customers and excellent customer service -- Operational excellence: achieved via efficient operations and great supply chain and human resource management -- Product excellence: having products with high perceived value and effective branding/positioning -- Locational excellence: good physical location and internet presence

Developing a marketing plan, Step 4: implementing marketing mix and allocating resources

-- Implement the actual marketing mix of product, price, place, and promotion for each product and service, based on what they think their target markets will value --> Simultaneously, decide how to allocate resources to products and services -- all about creating value, so firms try to develop products and services that customers see as valuable enough to buy -- Pricing as the only activity that actually brings in money and influences revenue -- Firm has to make the product or service accessible when and where the customer wants -- Integrated marketing communications (IMC): promotion dimension of the four Ps, covers lots of communication disciplines: general ads, personal selling, sales promotion, public relations, direct marketing, electronic media, all combined to provide clarity, consistency, and maximum communicative impact

Marketing timeline

-- Production-oriented era: all about product innovation rather than satisfying customer needs, retail stores as places to hold merchandise until consumers wanted it -- Sales-oriented era: manufacturers have the capacity to produce more than customers want or need, so to combat overproduction firms become more sales-oriented - lots of selling and advertising -- Market-oriented era: customer is king, consumers have choices and can make purchasing decisions based on things like quality, convenience, price, etc. --> Manufacturers and retailers focus on what consumers want and need before they start designing/making/selling new products - this is when firms discovered marketing -- Values-based marketing: most successful firms today do this, transcend a product/selling focus in an attempt to discover and satisfy their customers' needs and wants - focusing on giving the customers greater value than their competitors

Ways of retaining loyal customers

-- Sometimes the methods used to maintain a sustainable competitive advantage help attract and maintain loyal customers --> strong brand, unique merchandise, superior customer service are all things that help solidify a loyal customer base (loyal customers are a sustainable competitive advantage in and of themselves) -- Loyal customers are reluctant to patronize competing firms -- Viewing customers in a lifetime value POV rather than a transaction-by-transaction basis is key -- Another way of achieving customer loyalty is through creating an emotional attachment via loyalty programs (they're part of the overall customer relationship management programs) -- Customer service is also a way of building a competitive advantage (consistency in this area is hard) - firms that offer good customer service have to instill its importance in employees over a long period to make it part of company culture --> once a reputation of good service is built, the advantage can be sustained for a long time because competitors are hard-pressed to develop a similar reputation

Developing a marketing plan, Step 1: Defining the business mission and objectives

Mission statement: broad description of the firm's objectives and the scope of the activities it plans to engage in -- Answers two key questions: "what type of business are we?" and "what do we need to do to accomplish our goals and objectives?"

Evaluating performance via marketing metrics: portfolio analysis

Portfolio analysis: evaluating the firm's "portfolio" of various products and businesses, then allocating resources based on what's expected to be most profitable for the firm in the future -- Portfolio analysis usually performed at the strategic business unit (SBU) or product line level of the firm -- Strategic business unit (SBU): a division of the firm itself that can be managed and operated independent-ish from the other divisions, might have a different mission or objectives -- product line: group of associated items, like those that consumers use together or think of as part of a group of similar products

4Ps: Place

Represents all the activities necessary to get the product to the right consumer when the consumer wants it -- Deals with marketing channel management: aka supply chain management, all about a set of approaches and techniques that firms use to efficiently and effectively integrate their suppliers -- A set of approaches and techniques firms use to integrate their suppliers, manufacturers, warehouses, stores, and transportation efficiently and seamlessly into a value chain where the merchandise is produced and distributed in the right amounts, to the right places, at the right time, minimizing systemwide costs and satisfying service levels required by customers

Developing a marketing plan, Step 3: identify and evaluate opportunities via STP (segmentation, targeting, positioning)

Segmentation, targeting, and positioning is a trio of processes used to identify and evaluate opportunities for increasing sales and profits -- Market segmentation: dividing the market into groups of customers with different needs, wants, and characteristics who might appreciate products geared especially towards them -- Target marketing, aka targeting: evaluating each market segment's attractiveness and decide which to pursue as a market -- Market positioning: once a firm has decided which market segment(s) to pursue, it determines how it wants to be positioned in those segments by defining the marketing mix variables so target customers have a clear, distinctive, and desirable understanding of what the product does or represents when compared to its competitors --> Once target segments have been identified, the firm has to evaluate each of its strategic opportunities