Marketing Exam 1
Frameworks for Understanding Decision-Making
Cognitive vs. Emotional 1. Product Type 2. Context 3. Individual Differences
Four Marketing Management Philosophies
- *Production* -- internal capabilities of the firm. (Started before 1900, Industrial Revolution) - *Sales* -- aggressive sale techniques and belief that high sales result in high Profits (Started 1920, More active and aggressive tactics to convince consumers to part with hard-earned money) - *Market* -- Satisfying customer needs and wants while meeting objectives. (Started 1960, Driven by the dynamic of more and more firms competing for sales with the same customer) - *Societal* -- Satisfying customer needs and wants while enhancing individual and societal well-being. (Started 1990, Customers purchase from orgs that make their community better)
Impact of the Internet & Mobile Devices
1. Allows better and faster decision making 2. Improves ability to respond quickly to customer needs and market shifts 3. Makes follow-up studies and tracking research easier 4. Slashes labor- and time-intensive research activities and costs 5. Now can access greater percentage of a population, generally
Socio-Cultural Factors
1. Attitudes, Values, & Lifestyles 2. American Values 3. Growth of Component Lifestyles 4. Changing Role of Families and Working Women 5. Use of Technology as Social Mediator 6. Social Hierarchies & Institutions
Business & Consumer Markets Similarities
1. Basic Purchase Process Phases 2. Frameworks for understanding decision-making 3. Decision-making units
Post-Purchase Experience & Behavior
1. Compare ACTUAL EXPERIENCE with EXPECTATIONS 2. Expectations come from 3. Level of Satisfaction strongly affects repurchase & word-of-mouth
Economic Factors
1. Consumers' Incomes & Rising Debt 2. Purchasing Power 3. Inflation 4. Recession
Build a Customer-Centric Culture
1. Coordination 2. Cooperation 3. Capability 4. Connection
Roles of Marketing Research
1. Descriptive - gathering and presenting factual statements (what) 2. Diagnostic - explaining data (why) 3. Predictive - estimating what could happen (what if?)
Importance of Marketing Intelligence/Research
1. Improve quality of decision making 2. Identify problems & sources of them 3. Focus of growing the customer franchise by reaching new customers and retaining & developing existing customers 4. Understand changes in the marketplace
Promotion - Six M Model
1. Market 2. Mission 3. Message 4. Media 5. Money 6. Measurement
Demographics
1. Population size 2. Age 3. Gender 4. Ethnicity 5. Income 6. Occupation
Types of Research Problems
1. Related to understanding customer markets 2. Related to creating the marketing mix 3. Related to product and brand performance
Texting & Blogging
1. Researchers can text basic questions or assignments 2. Assign respondents to write blog entries when they use a product/service
Reducing Cognitive Dissonance
1. Seeking information that reinforces positive ideas about the purchase 2. Avoiding information that contradicts the purchase decision 3. Revoking the original decision by returning the product
STP - Effective Positioning Statements
1. Target customer(s) 2. Wants of the customer(s) 3. Product type & category, as understood by customer 4. Key benefit to be provided to target customer
Business Products:
1. are used to manufacture other products 2. become part of another product 3. aid the normal operations of an organization 4. are acquired for resale without change in form
Customer Centricity
1. understand the customer 2. build a customer-centric culture 3. serve the customer
Primary Data Pros & Cons
ADVANTAGES: 1. Answers a specific research question 2. Data are current 3. Source of data is known 4. Secrecy can be maintained DISADVANTAGES 1. Expensive 2. Quality declines if interviews are lengthy 3. Reluctance to participate in lengthy interviews
Secondary Data Pros & Cons
ADVANTAGES: 1. Saves time & money if on target 2. Aids in determining direction for primary data collection 3. Pinpoints the kinds of people to approach 4. Serves as a basis of comparison for other data DISADVANTAGES: 1. May not give adequate detailed information 2. May not be on target with the Research problem 3. Quality & accuracy of data may pose a problem
Analyze and Present Findings
Analysis - Use quantitative & qualitative methods to find patterns in the data Presentation - Presentation, Memos, Final Report
Which of the following statements is the best explanation for why B2B firms sometimes choose to retain a focus on their core product while engaging partner firms to jointly provide a total solution (i.e., a product bundled with additional services)?
Any move a B2B firm makes beyond its core capability or technology can have an adverse effect on its ability to reach the markets it is trying to serve, its skills in executing effectively, its ability to create and deliver offerings across all of its markets, its ability to work effectively with its collaborators, and/or its ability to thrive against competition.
Customers moving to higher and lower-priced products Both Threat Neither Opportunity
Both
Peloton has established a rigorous recruiting and training system to ensure that its trainers are not just skilled on the equipment but can also be perceived as great DJs, coaches, and TV hosts so they can reliably create an outstanding customer experience.
Building a Customer-Centric Center
High Involvement
Buyer fully engaged, effortful decision-making, longer time-frame, more risk/consequences, low confidence, high uncertainty, typically higher priced, more choices considered
Low Involvement
Buyer less engaged, low effort, short time-frame, low risk/consequences, high confidence, low uncertainty, typically lower priced, fewer choices considered
One misstep that Peloton now acknowledges is when it tried to measure customer loyalty while it was a running a program that charged customers a $500 cancellation fee to create a high switching cost for customers interested in moving to a different exercise platform
Creating False Loyalty, Rather Than True Loyalty
In order to gain a deeper understanding of their customers, last year Peloton tracked several hundred of the customers' behaviors through observations, diaries, journals, and interviews so that they could group them into distinct categories of goals, activities, and priorities.
Creating the Demand Landscape
Peloton collects and uses detailed information about its individual customers through all of their touch points to guide the development of product offerings, services, programs, and messages.
Customer Relationship Management
Customer Centricity by Other Names
Customer-Focused Market-Oriented Market-Driven
A company that wants to implement a market orientation would need to: A. establish and maintain mutually satisfying relations ships B. do research on its customers, competitors, and markets C. determine how to deliver superior customer value D. do all of the activities listed E. implement actions that provide value to customers
D. do all of the activities listed
Secondary Data
Data previously collected for any purpose other than the one at hand
Which of the following are factors we analyze as part of understanding the marketing environment (the "Context" from the 5 Cs in the Situation Analysis).
Economic factors Social/Cultural factors Technology factors
Based on the articles, A Covid Baby Bust Is Bad for These Businesses and Covid-19 Propelled These Businesses Into the Future. Ready or Not, identify the environmental trends from those below that were discussed in the article. Check off your selections and submit to see your results. Choose all that apply.
Environmental - There is a climate-driven imperative to substitute renewable energy for fossil fuels. Technological - Consumer resistance to buying online has steadily receded and the pandemic further softened it, in part because retailers have gotten better at mimicking the in-person experience.
Marketers only need a thorough understanding of the laws established by the federal government.
False
Which of the following is the first step in a market research process?
Formulate the problem or question
Low-involvement purchases require
In-store promotion, eye-catching package design, and good displays. Coupons, and 2-for-1 offers, auto renewals
Which marketing management philosophy focuses on the question, "What do customers want and need?"
Market
A business is concerned with many day-to-day activities. Some of the most important of these activities are the planning and development of a product, its ability to communicate value, its pricing policy, and the distribution strategy. These activities are all a part of:
Marketing
Peloton equipment and service is famously expensive, but Peloton tries to always ensure that its key customers always receive the greatest amount of total benefits for the least amount of total costs.
Maximizing Customer Perceived Value
Types of Errors
Measurement error - Error when there is a difference between the information desired and the information provided by research Sampling Error - Error when a sample somehow does not represent the target population. Random Error - Error because the selected sample is an imperfect representation of the overall population.
Introducing new, lower-priced products to the market Opportunity Threat Neither Both
Neither
P&G has a lot of brands in the marketplace at different price points Opportunity Both Threat Neither
Neither
After the customer has an opportunity to experience the machine and classes, Peloton sends them a survey that asks, "How likely are you to recommend us to a friend or colleague?" in order to determine whether a customer experience was a success or failure.
Net Promoter Score
A customer is planning to purchase a car after being involved in an accident in which their car was "totaled" (i.e., damaged beyond what the insurance company will agree to repair). Because this all happened so suddenly, they need to make the purchase fairly quickly. Rather than examining all of the possible features of a car and all of the possible car brand options, they are only looking for a used sport-utility vehicle that was made in the last 3 years, has under 40,000 miles, and costs less than $25,000. Marketers refer to this type of decision making as:
Non-compensatory Decision Making
In the Typology of Buyer Benefits, which of following terms represents a focus on building market reputation and brand image?
Noneconomic, tangible benefits
Non-probability Samples
Nonprobability Sample - Any sample in which little or no attempt is made to get a representative cross-section of the population. Convenience Sample - A form of nonprobability sample using respondents who are convenient or readily accessible to the researcher.
Some customer segments are interested in spending more money on new products in the personal care category
Opportunity
While Peloton has the expertise and materials to create a new (expensive) machine, it has decided to branch into more categories of non-machine-based exercise (e.g., Yoga) based on its understanding of its customers.
Plan Brand Extensions Based on Customer Needs, Not Component Similarities
Probability Samples
Probability Sample - A sample in which every element in the population has a known statistical likelihood of being selected. Random Sample - A probability sample arranged so that every element of the population has an equal chance of being selected.
Sampling Procedure
Sample - A subset from a large population Population - The population from which a sample will be drawn
With all of the information about its customer that Peloton collects, they are able to examine their customer base in great detail and perform profitability analyses to target fewer, but more lucrative, customers over time.
Selective Relationship
Company website: "We are a consciously clean skincare + wellness brand whose mission is to disrupt the global beauty industry. Our intention is to increase accessibility, transparency, and sustainability in all aspects of what we create. From the fair sourcing of our shea butter, to the creation of our homemade products, down to the responsible representation of people working with us at every end."
Societal
Mission statement: "Our vision: 100% slave-free chocolate. Not just our chocolate, but all chocolate worldwide. How we are going to achieve that? It won't be easy. And it's pretty complex. But we will accomplish it with the help of Tony's roadmap. Our roadmap has 3 pillars and shows us the way to 100% slave-free chocolate: raise awareness, lead by example, inspire others to act."
Societal
Survey Research
The most popular technique for gathering primary data in which a researcher interacts with people to obtain facts, opinions, and attitudes.
Scanner-Based Research
a system for gathering information from a single group of respondents by continuously monitoring the advertising, promotion, and pricing they are exposed to and the things they buy
Which of the following is NOT one of the correct forces?
company strengths and weaknesses
All of the following factors directly influence consumers' level of involvement in the purchase process EXCEPT:
consumer's age
Compensatory
customer considers (or attempts to consider) all of the attributes that are relevant, making trade-offs between & among attributes
Non-Compensatory
customer considers some, but not all, of a product's attributes, and ignores potential trade-offs between attributes
A firm that wants to develop a deeper understanding of its customers may optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups. This is _____:
customer relationship management
5 Cs
customer, company, context, collaborators, competitors
Optimizing
customers are motivated to purchase the best alternative they can
Satisficing
customers settle for an alternative that is "good enough" or passes some acceptable threshold
Robina is shopping for a new television for her living room. As she is going through the purchase process, she continues to consult with her spouse, since this is a major purchase for the family, and even her teenage daughter is providing input to ensure that the new television will have all of the apps and capabilities she likes. Since multiple people are affecting the purchase process, we would refer to the set of them (Robina, her spouse, and her daughter) as a:
decision-making unit
High-involvement purchases require
extensive and informative promotion to target market reduce perceived risk through return policies or guarantees
We have described the primary goal of marketing as driving revenue growth for the organization. The Marketing Strategy Framework from the HBP reading identifies 3 customer outcomes as the "purpose of marketing." Which of the following is not included as one of those outcomes?
firing customers
Primary Data
information collected for the for the first time. Can be used for solving the particular problem under investigation
Earl is starting a new bank. Before the opening day, Earl had a meeting with all employees. He discussed their mission, defined objectives for the bank for the coming years, and shared who their target market is. He talked about their product offerings and where their future branches would be located. Earl is sharing the bank's:
marketing plan
The steps of the consumer decision-making process, in order, are:
need recognition, information search, evaluation of alternatives, purchase, post-purchase behavior
Through marketing research, the Atlanta Falcons learned it has younger fans and is not attracting older fans. The organization conducted marketing research to determine if a radio advertising and engagement campaign they were considering that would be targeted to the older fans would be successful. In its second use of research, the Atlanta Falcons employed _____ marketing research.
predictive
Which of the following is a key difference between B2B and B2C markets?
prices are more often negotiated in B2B markets than in B2C markets
Consumer Behavior
processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and product use
Advantages of Internet Surveys
rapid development, real-time reporting, reduced costs, personalized questions and data, improved respondent participation, contact with the hard-to-reach
The most effective type of value proposition in business markets, generally, is known as ___________, which focuses on a small number of benefits that motivate the customer and that are superior compared with the next-best alternative provided by a competitor.
resonation focus
The most popular method for gathering primary data is _____, in which a researcher interacts with people to obtain facts, opinions, and attitudes.
survey research
Action Plan
the four Ps of the marketing mix
Business Marketing
the marketing of goods and services to individuals and organizations for purposes other than personal consumption
B2C
the process in which businesses sell to consumers
B2B
the process of selling merchandise or services from one business to another
_____ specifies the research questions to be answered, how and when the data will be gathered, and how the data will be analyzed.
the research design
Aspiration Decision
what the firm hopes to achieve in the market Three steps: 1. Segmenting the market to identify possible groups to serve 2. selecting or targeting a specific group or groups to address 3. determining the desired positioning in the mind of the selected customers
4 Ps
Product, Price, Place, Promotion Product + Promotion + Place = Value Creating Price = Value Creating
Company website: "Our materials make more possible. When you commit to market-leading innovations, amazing things happen. That's how we've continually enabled new possibilities."
Product-oriented
What satisfies needs?
Products - anything that can be offered to a market for attention, acquisition, use or consumption and that might satisfy a need or want Services - activities or benefits offered for sale that are essentially intangible and does not result in the ownership of anything Experiences - events or occurrences that leave an impression on someone and often consists of multiple products and/or services
___________ is research that generates information that is not amenable to numerical measurement or statistical analysis.
Qualitative data research
Primary Data (Non-Experimental Research)
Qualitative or quantitative research that aims to answer questions about market size, customer preference, & trade-off behavior without introducing any manipulation of the environment. 1. Qualitative data can help understand a phenomenon more deeply and should not be extrapolated 2. Quantitative data research collects numeric data used for measurement & statistical analysis
Company website: "Our support teams and account managers are some of the longest tenured and best trained you'll find anywhere. You'll routinely see the same faces each time you need assistance. With more than 50 offices around the country and 5 on-shore customer care centers, we are focused on being responsive. We think that building lasting relationships is more important than pushing products and we want to know what's important to you so we can deliver that - quickly and reliably - 24 x 7."
Sales-oriented
InfoScan
Sales-tracking service for the consumer packaged-goods industry
CGM/Social Media in Marketing Research
Refined technologies allow companies to mine data available in blogs, Facebook & Twitter posts, among others. Companies can identify the most influential social media users and learn exactly what they are saying and to whom they are saying it.
BehaviorScan
Research program that tracks the purchases of 3,000 households through store scanners in each research market
Primary Data (Experimental Research)
Research that manipulates the environment and then measures the effects, seeking to understand casual relationships. 1. Different treatments are applied to different groups 2. A/B testing 3. Laboratory settings offer lower costs, quicker results, confidentiality, and internal validity 4. Field settings offer external validity, but can be more expensive and can actually impact the market
Conjoint Analysis
Research tool that estimates how subjects set priorities or make trade-offs among attributes of a product or service
Due to Peloton's deep understanding of their customers' needs to enjoy and feel motivated to engage in their workouts, Peloton highlights the unique personalities of their elite trainers as an important point of differentiation from other exercise platforms.
Resonance-Focus Model
Which 3 components below are included in the Marketing Strategy Framework from the HBP reading (and is a primary focus of this lesson)? STP PAB A&A 5 Cs 4 Ps
STP 5 Cs 4 Ps
Company profile: "Our products are sold in more than 35 markets around the world and our global independent sales force exceeds 2 million. You've got dreams. Whether it's earning a little extra cash or making a full-time commitment, and a sales consultant opportunity offers the freedom, flexibility and, of course, the fun that you've been looking for."
Sales-oriented
Competitors are starting to introduce lower-priced options into the market
Threat
Shrinking middle class
Threat
Peloton recognizes that an important intersection between its brand and its customers is the purchase/registration process (either online or by phone).
Touch Point
Marketers CANNOT control the external environment in which their organizations operate.
True
