Marketing Exam

What is a "Positioning Statement" and why is it important?

A statement that summarizes company or brand positioning using: To (target segment and need) our (brand) is (concept) that (point of difference). It differentiates the brand

What is the difference between product idea, product concept and a product image?

an idea for a possible product idea, concept and image (first stage). Product concept: a detailed version of the new product idea stated in a meaningful consumer terms (second stage). Product image: the way consumers perceive the product

Important decisions must be made by a company at each step of the PLC. In the introduction stage, why must a toy maker look at in the current product line when introducing new products?

To ensure that the new product will not cut into the sales of current product offerings

The Marketing Process (1.1) has four steps in creating value. What are they?

Understand customers--create customer value--build strong customer relationships--reap rewards of customer value

What is an influencer marketing

influencer marketing aims to harness the influence of key individuals on the social web to meet a business goal by building mutually beneficial relationships.

What is the purpose and use of a Brand Logo and why are some companies doing "makeovers"?

support the brands positioning and add personality, customers become attached to the logos as symbols; logos now need to work on a phone screen and in a social media setting

How does the corporate B2B buying process differ from the B2C process? What steps are different in each?

• Derived demand--business demand derives from the demand for consumer goods• Inelastic and more fluctuating demand--demand for business products is not much affected by price changes • Far fewer but far larger buyers; far more complex buying decisions, process is longer and more formalized A B2C process only involves recognizing a need, finding the right brand, and post purchase behavior. It is a much simpler decision and evaluation process

What are the many definitions of a "New Product" and why must a branding and marketing program be developed for each?

-Product: anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or a need -not so simple to answer because products include more than tangible objects; they include services, events, persons, places, organizations and ideas, or a mix of all of these things.

Organizational marketing programs are conducted by many companies to enhance their corporate image and their brand. What is "Social Marketing" and how does it help a company?

-Social Marketing: the use of traditional business marketing concepts and tools to encourage behaviors that will create individual and societal well being -Helps a company because it shows consumers that they care about more than just gains or losses. Consumers respect company more and thus have more loyalty for them

How does "Crowd Sourcing" help in new product development?

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Why is the question, "What is a Product?" not so simple to answer?

Because a product is much more than the tangible object that it is; a product encompasses an experience.

How does "Behavioral Segmentation" help improve customer loyalty or "occasion" shopping on holiday's or "Benefits" segment? Why is the question, "What is a Product?" not so simple to answer?

Behavioral segmentation- Dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product Benefit segmentation- Dividing the market into segments according to the different benefits that consumers seek from the product Marketing occasion shopping increases profits in certain parts of the year, such as Starbucks selling Fall-themed beverages. Marketing benefit segments allows a company to target different benefit seeking customers with varying products. (Ex: Fitbit)

Idea Generation is the life-blood of New Product Development and internal sources, external ideas, Crowd-Sourcing are all methods for new products to be introduced. How does Bose get new ideas?

Bose on the other hand is very secretive with their development and doesn't allow the public to know their next move.

Marketers' roles in New Product Development might include testing by the consumer of new products. What advantage does involvement by the marketer have for the Process?

Concept testing allows the company to gauge consumer interest in various products and proceed with the product that is deemed most favorable by consumers

How can a company make a lot of money even in the Maturity stage of a product?

Consistent quality and ensuring that the company stays relevant in the forever changing business environment

International product and service Introduction must consider several critical issues. Name several issues and what the risks when introducing those products in other countries or regions.

First they must choose what products and services to produce and in which countries. They then must decide whether they want to standardize their product. Companies prefer to standardize their products because it gives a consistent brand image throughout the world. But markets and consumers around the world differ widely. So they must respond to these different markets by giving different product offerings. Such as Mcdonalds in France, they adapted to their market for catering to the French way of life and cuisine with encouraged sit down time, table side service, and a refined menu.

A "Value Proposition" is written to communicate Brand image to the "intended" target market. What are the key elements of a value prop?

Importance, distinction, superiority, affordability "Why should I buy your brand?" Key elements of a value prop is to give more value for a lower price

Airbnb has a successful business model that use all four characteristics of service. What do they do to make sure they are in tune with their target market?

In the beginning, Airbnb primarily served budget-minded customers with prices for listings lower than those of comparable hotel rooms. Recently, they've switched to offering unique and authentic experiences to customers who want to see the world from the perspective of the locals. To do this, Airbnb focuses on its hosts. It treats its hosts as active participants in the business and influences them to follow certain guidelines. Because of this, hosts develop a sense of ownership and devotion and they strive to give the guests a great experience.

Why was Alphabet formed by Google to help their new product develop management?

In the technology industry, where revolutionary ideas drive the next big growth areas, you need to be uncomfortable to stay relevant• Alphabet was created so that Google could pursue a number of different ideas and manage them as if they are unrelated

Google Moonshot has a development process that is unique? Describe the process.

Moonshot seeks to make the impossible possible. No idea is a bad idea. The company pursues, or at least considers, a great number of projects with the knowledge that only a few, if that, will ever come to market

How has the "Internet Revolution" effected marketing and what changes have come about?

More emphasis on social media- can make or break a brand and needs to be paid attention to big data, using this info to market to customers and to research

The "New Product Screening" process says one should ask three questions - R, W, W. This stands for - Is it real? Can we win? Is it worth doing? What does this mean?

Real, win, worth doing. Will customers buy it and will it satisfy the market? Does it offer a competitive advantage and will it be a success? Does it benefit growth strategy and does it offer profit potential?

As with the case of Samsung, many companies develop an IOT strategy? What is IOT and what effect will it have on the economy?

Since Samsung is a leader in phones, refrigerators and TV, they are developing IOT tech to pair these in the home. This will have an effect on the economy because if successful, people will want to have all Samsung stuff to use this.

What is a "Supplier Development" program like DOLE practices and why is it important tool to improve your business process.

The stage of the business buying process in which the buyer reviews proposals and selects a supplier or suppliers based on the proposal submissions. Important in showing the customer that you care that they go on to sell your inventory. It's a continued relationship.

Mattel has been extremely successful managing the Product Life Cycle of the Barbie Doll? Describe what they have done and implemented and why is it so important for their survival.

Through product line extensions and reinvention, Barbie has always adjusted to current fads and fashions and has been able to appeal to an ever changing target market.

Intuit's "Design for Delight" philosophy has helped their product development in what way? What is Intuit's "Creative Destruction" process?

Uses Customer-Centered new product development, which focuses on ways to solve customer problems and create more customer-satisfying experiences. Intuit conducts extensive research about how the customer uses their products, seeking to understand the problems and needs of customers. Thus, Intuit seeks to understand the customer's wants and needs better than the customers themselves.

Explain the five decisions on has to make about individual product marketing - Product Attribute, Branding, Packaging, Labeling/ logos and Product Support services?

attribute = quality, features, style, and design branding = name, term, sign, symbol, or design or a combo that identifies maker or seller of product or service packaging = activities of designing and producing the container or wrapper of a product labeling/logos = identifies the product/brand, describes several things about the product, promote the brand and engage customers product support services = keeps customers happy after the sale to build relationships

How is a brands' value determined and why is it important? What is brand equity?

brand value = total financial value of a brand brand equity = differential effect that knowing the brand name has on customer response to the product or its marketing

What is the difference between types of Consumer products - Convenience, Shopping, Specialty or Unsought - and their Pricing and Promotion?

convenience = buy frequently, immediately, and with little comparison and buying effort (low price, mass promotion by producer) shopping = in process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style (higher price, advertising and personal selling by both producer and resellers) specialty = unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort (high price, targeted promotion by producer and reseller) unsought = consumer either does not know about or knows about but does not normally consider buying (price varies, aggressive advertising and personal selling by producer and reseller)

What is the difference of the three levels of Products - Core, Actual or Augmented? Give an example by using Apple iPad.

core = "what is the customer really buying?" not just an iPad (self-expression, entertainment, productivity, and connectivity) actual = brand name, features, quality level, packaging, design augmented = delivery and credit, after-sale service, product support, warranty

Describe the four Brand Development Strategies - Line extensions, Brand extensions, multi-brand and new branding - and when you would use each?

line extensions = extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category brand extensions = extending an existing brand name to new product categories multi-brand = market many different brands in a given product category, establishes different features that appeal to different customer segments new branding = power of existing brand name is waning so new brand name is needed, can't offer too many though in danger of spreading resources too thin

Why is "internal marketing" so important in the "services" business?

orienting and motivating customer-contact employees and supporting service employees to work as a team to provide customer satisfaction; everyone in organization must be customer-centered; be authentic

There are many challenging decisions involving brands - positioning, name selection, sponsorship and development. Give examples of each these decisions.

positioning = attributes, benefits, beliefs and values name selection = section and protection sponsorship = manufacturer's brand, private brand, licensing, co-branding development = line extensions, brand extensions, multi brands, new brands

In developing a "Marketing Strategy Statement, what does a developer include in their initial proposal?

the first part describes the target market; the planned value proposition; and the sales, market-share, and profit goals for the first few years. The second part of the marketing strategy statement outlines the product's planned price, distribution, and marketing budget for the first year. the third part of the marketing strategy statement describes the planned long-run sales, profit goals, and marketing mix strategy

Define what is the "Product Mix" or sometimes called "Product Portfolio Mix".

the set of all product lines and items that a particular seller offers for sale

Why would someone want to "Co-Brand" their product and what are the potential problems?

using the established brand names of 2 different companies on the same product combined brands create broader consumer appeal and greater brand equity, takes advantage of complementary strengths cons - complex legal contracts and licenses, coordinate all advertising, promotions, and marketing efforts, requires a lot of trust

How is a brand's value determined and why is it important? What is brand equity?

• Brands represent consumers' perceptions and feelings about a product and its performance• Brand Equity: the differential effect that knowing the brand name has on customer response to the product and its marketing.

How does a company nurture and develop a community of "Early Adopters" for their product?

• By advertising to these during the introduction and growth stages of the life cycle and ensuring that they have services that address any issues with the product early on

Companies and Brand Managers look for competitive advantage through a "differentiation" strategy and careful product positioning. Give an example of how they might implement this type of strategy and development of their product's image/ essence.

• COMPETITIVE ADVANTAGE: advantage over competitors gained by offering greater customer value either by having lower prices or providing more benefits that justify higher prices. Companies all want to be different on the market so that people have a reason to purchase from them. At IHOP you "come hungry leave happy." This positioning emphasizes two things: the food is good and the atmosphere will make you leave feeling happy. It is important to establish what value the customer will be receiving from the brand.

Why would someone want to "Co-Brand" their product and what are the potential problems?

• Co-Branding: joins two or more well known brands in a common products EX: soft drinks and splenda • Advantages: strength of each brand supports the other, opens up new markets, lower marketing communication costs • Disadvantages: loss of control, negative effect if one brand has a problem, overexposure

What is the difference between types of Consumer products - Convenience, Shopping, Specialty or Unsought - and their Pricing and Promotion?

• Convenience: o Frequent purchase, little planning, low involvement o Low price o Mass promotion o Ex: toothpaste • Shopping: o Less frequent purchase, much planning and comparison o Higher priceo Advertising and personal selling by producer and retailer o Ex: major appliances, tvs, clothing • Specialty: o Strong brand preference and loyalty, special purchase effort, little comparison of brands, low price sensitivity. o High Priceo More carefully targeted promotion. o Ex: luxury goods, Rolex • Unsought: o Little product awareness or knowledge. o Price varies. o Aggressive advertising and personal selling. o EX: life insurance

What is the difference of the three levels of Products - Core, Actual or Augmented? Give an example by using Apple iPad.

• Core: what is the buyer really buying Core benefit or services consumers seek. Apple--buying entertainment, self-expression, productivity, and connectivity • Actual: Turns core benefit into an actual, tangible product. Apple iPad--its name, parts, styling, operating system, features, packaging and other attributes • Augmented: built around the core benefit and actual product by offering additional consumer services and benefits. Apple iPad--warranty, quick repair services, web and mobiles sites for problems, apps and accessories, etc.

Four examples of Segmentation are Geographic, Demographic, Psychographic and Behavioral?

• Geographic: take region of the world/country and assume they will be attracted to a product for the sole reason of geography o Target offers smaller stores for urban neighborhoods • Demographic: age, life-cycle state, gender, income, occupation, education, religion, ethnicity, generation o McDonald's assigns brand managers to segments of different demographic groups (young adults, latinos, etc. • Psychographic: lifestyle, personalityo psychologically, some people want to be part of a group; shape brand to appeal to this group o Anthropologie sells a lifestyle brand to which young women customers aspire • Behavioral: occasions, benefits, user status, usage rate, loyalty statuso Starbucks pumpkin spice lattes during autumn; fitbit makes products to fit benefit preference of different segments

McDonald's does segment and target marketing by dividing their customers into what kind of groupings and segments. Would you do it their way?

• Groupings and segments: different kinds of demographic groups (young adults, african american moms, young latino's, etc. (Happy Meals, southwest Chicken salad ect.) • Segment managers look for what compels his or her segment. Pass this information to creative team, who work this all together. • I think this could be problematic because it is difficult to shape a brand to be compelling to each segment

Understanding Technological changes is vital for Marketers. Why and give an example?

• Improved technology allows for better, more precise marketing• EX: salesforce - Created CRM technology to better target consumers based on data

What are some of the reasons that carrying a weak product in decline can hurt the company and be very costly?

• In addition to declining profits, there are hidden costs: takes up too much of management's time, requires frequent price and inventory adjustments, requires advertising and salesforce attention that might be better used on healthy products, failing products can harm company reputation and keeping weak products delays the search for replacements

Why is "internal marketing" so important in the "services" business?

• Internal Marketing: means that the service form must orient and motivate its customer-contact employees to work as a team and provide customer satisfaction• Must hire the right people and carefully orient and inspire them to offer unparalleled service; make the employees believe in the brand so they can authentically deliver the brand's promise to customers

What does it mean to "Commercialize" a product? What role does marketing play in the process?

• Introducing a new product into the market; comes with high costs • Marketing plays an influential role, deciding advertising, timing of introduction and where to launch the product

Dole Foods conducts a rigorous Procurement Process and requires their suppliers to perform many tasks to qualify as a source for food. Why is that so important for their business and how do they insure they keep improving as a company?

• Maintains product quality--quality assurance; upholds brand image of quality• Make suppliers meet rigorous standards and always have at least three at a time in case there are any issues in the supply chain

What is "Market Segmentation" and why is it an important first step?

• Marketers realize that they cannot connect to all customers, at least not in the same way. Break customers up into "segments" • Market Segmentation: Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes

Measurable, Accessible, Substantial, Differentiable and Actionable are the five requirements for a segmentation exercise to be successful. Describe each characteristic's feature.

• Measurable- the size, purchasing power and profiles of the segments can be measured • Accessible- the market segments can be effectively reached and served • Substantial- Market segments are large or profitable enough to serve • Differentiable- The segments are conceptually distinguishable and respond differently to different marketing mix elements and programs Actionable- marketing strategies on the segment have the potential to be effective

Because of change in technology and access, how has "micromarketing" and "local marketing" become possible and more common? Is "Individual" or "hypertargeting" possible and good?

• Micromarketing: practice of tailoring products and marketing programs to suit the tastes of specific individuals and local customer segments; drives up marketing costs by reducing economies of scale; logistical problems • Technology allows firms to track locations and searches of individuals and suit offerings to their wants and needs • Individual marketing: tailoring products and marketing programs to the needs and preferences of individual customers o Detailed databases, robotic production and flexible manufacturing, and interactive technologies make this easier; possible but potentially expensive

Niche or concentrated marketing has great advantages. What is the good and bad consequences of picking it as your product strategy?

• Niche/concentrated marketing: firm goes after a large share of one or a few smaller segments or niches • Allows firm to achieve strong market position because of its greater knowledge of consumer needs in the niche it serves. More effective and efficient. Good for small companies • Increases risk. Companies that rely on one or a few segments for all business will suffer greatly if segment turns sour

There are many challenging decisions involving brands - positioning, name selection, sponsorship and development. Give examples of each these decisions.

• Positioning: Position brands clearly in target customers' minds. EX: Walmart positions on benefits (save money) • Name Selection: good name adds greatly to product's success. EX: o suggest benefits (Snapchat), o easy to remember (iPad), o distinctive (Panera), o Extendable (amazon goes from book seller to general retailer) o Translate easily to foreign languages (Microsoft's Bing) • Sponsorship: Four options: o National Brands/Manufacturer brands: Samsung sells output under brand name o Private Brands/Store Brands: Kirkland o Licensed Brands: Kodak sells its brand to camera manufacturers o Co-Brand: two established brand names of different companies are used on the same product: Benjamin Moore paint colors and Pottery Barn join forces • Development: line extensions, brand extensions, multibrands, new brands

What is the PLC - Product Life Cycle and why is it important to understand?

• Product Life Cycle: the course that a product's sales and profits take over its lifetime; five distinct stages - Product development--company finds and develops a new product idea--sales are zero - Introduction--period of slow sales growth as the product is introduced into the market. Profits are non-existent - Growth--a period of rapid market acceptance and increasing profits - Maturity is a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers; profits level off or decline because of increased marketing outlays to defend the product against competitors - Decline--the period when sales fall off and profits drop

Define what is the "Product Mix" or sometimes called "Product Portfolio Mix".

• Product Mix: consists of all the product lines and items that a particular seller offers for sale. EX: GE manufactures light bulbs, medical equipment, jet engines, etc.

Explain the five decisions on has to make about individual product marketing - Product Attribute, Branding, Packaging, Labeling/ logos and Product Support services?

• Product attribute: Defining benefits it will offer on basis of quality, features and style/design • Branding: name, term, sign, symbol, or design that identifies maker or seller of product or service. Brand name becomes the basis on which a whole story can be built about a product's special qualities • Packaging: involves designing and producing the container or wrapper for a product. Important marketing tool; attracts buyers, communicates brand positioning, closes sales, etc. • Labeling/Logos: identifies product or brand, describes several things about product, promotes brand and engages customers. • Product Support Services: customer service; offer usually comes with support services which may be minor or major part of total offering.

What is a "Product Positioning" map and what does it tell you about how a company wants to work with their target market?

• Product position: the way a product is defined by consumers on important attributes • Maps show the consumer perceptions of brands versus those of competing brands on important buying decisions

Organizational marketing programs are conducted by many companies to enhance their corporate image and their brand. What is "Social Marketing" and how does it help a company?

• Social Marketing: marketing of social ideas; consists of using traditional business marketing concepts and tools to encourage behaviors that will create individual and societal well-being• Improves brand image and favorability to consumers

Style, fashion, fad... how does time differ for each?

• Style--a basic and distinctive mode of expression. EX: home styles such as colonial, ranch, etc. lasts for decades or generations passing in and out of vogue • Fashion--currently accepted or popular style in a given field. ES: formal business attire of corporate dress in 80s and 90s gave way to the business casual look of the 00s and 10s. tend to grow slowly remain popular for a while and then decline slowly • Fads--temporary periods of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity. EX: Pet Rocks; Fads last the shortest

"Targeting" your audience helps a company in many ways. How is it necessary for a Marketing Strategy to have a statement and focus on a target?

• Target market: set of buyers who share common needs or characteristics that a company decides to serve • Target Marketing: identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each • So that they can focus on where they will make their money. Cannot appeal to all consumers in the same way; pick their battles

What decisions must be made in the Growth Stage of the PLC to extend the life of a product?

• The company should consider modifying the:• market (increase consumption by finding new users and new market segments) • product offering (changing characteristics such as quality, features, style, etc. to retain current users or attract new users) • marketing mix(improving sales by changing one or more marketing mix elements, such as offering new or improved service, cut prices, etc.)

Big data is used effectively by Target to analyze their customers' needs and preferences. What mistake did they make in divulging their findings to a young shopper's family? What does this say about research?

• They offered coupons for pregnancy items to a young girl... turned out she was pregnant• There should be checks in the research system, however, this shows that the research was highly accurate. Knew the girl was pregnant before her family

What is "Marketing Analytics" and why is it so important in developing a marketing strategy?

• Tools, technologies and processes by which marketers dig out meaningful patterns in big data • Used to gain customer insights and gauge marketing performance...important in developing market strategy bc you use big data and the analytics in finding a target market/seeing which areas of your company need to improve

Customer Relationship Management relies on good measurement of "Touchpoints". What is a Touchpoint Analysis and what does one discover from a TPA?

• Touchpoints: customer purchases, service and support calls, web and social media visits, satisfaction surveys, credit and payment interactions• Integrate customer information from all sources, analyze it, create a 360-degree view of customer in order to build stronger customer relationships

What is the difference in a "House of Brands" and a "Branded House" in Portfolio Management? Use P&G, General Mills, Disney as examples of each type.

House of Brands- a company that owns many different brands that are not connected and unrelated- P&GBranded House- company that may have different subsets, but its clear they're all under the same family (Disney)

How does the IBM Sales Model for Business to Business relationship selling work? What are the Pros and cons of this business model? What is "Solutions Selling"?

IBM partners with a smaller set of big buyers to solve they complex analytics problems. They found that customers need total solutions to increasing data issues. Pro - loyal and happy buyers. Con - not a large market Solutions selling is buying a packaged solution from a single seller, avoiding all separate decisions involved in a complex buying situation. Complex, difficult to implement and expensive

Name 3 Marketing Information Data Bases you accessed in the Mendoza Business Library workshop.

Mergent Intellect, IBISworld, Statista

What is NIKE' formula for success and what can be learned from studying the use of Marketing tools and strategy to differentiate themselves in the shoe industry?

NIKE works to sell a feeling, not shoes, All of their ads work to invoke emotion and inspire others, shift away from product focus and spend more time on attitude focus- people have an emotional bond with the brand- also get athletes to wear products, people want to be like them (Michael Jordan)

Why is it important to understand whether a customer's state of desire for an offering is either in "needs, wants or demands" state?

Needs = states of felt deprivation Wants = form human needs and take as they are shaped by culture and individual personality Demands = human wants that are backed by buying power. • Important in order to create value for customers through market offering. Need to know what you are satisfying: need or want/demand

Vision vs Mission

Vision: - Long term - Hope to become - Not specific Mission - What we do - Tangable

How has WOM influence risen over the past several years? What is an "Opinion Leader"?

Word of mouth influence has increased recently due to the emergence of online social communities.• Opinion Leader- people within reference group who, because of special skills, knowledge, personality or other exert social influence over others

5 C's of Marketing

customer, competitors, collaborators, Climate, company

8 biggest consumer trends

omni-channel, smarter services(recommendation engines), immersive experiences (VR), see it/like it/buy it, subscription models, autonomous delivery (robots, drones), Supply Chain Transparency (NFT), Conscious Consumption (packaging, sustainability)

Why has the Amazon Business model been so successful?

they appeal directly to customers - unique home pages and suggested products, creating an online store of discovery- people feel they can find new things- convenience and efficency- high CUSTOMER VALUE

ECO-Dot by Amazon is a new platform for marketing into many homes. What are the Pros and Cons of this type of marketing and the effect it might have on the Family?

to some it seems creepy to advertise it as a toy for a child, since they wouldn't know the difference or know its preferences would be used for marketing -pro is that it can be customized for your needs and makes purchasing/managing the home very easy -con is that it may be seen as a ploy to get the kids hooked on technology early on and viewed poorly by the parents-effects are that it could lead to neglect from the parent

What is the advantage of a Social Media Center?

• Allows a company to respond quickly to any social media concerns or issues; live monitoring of the firm's social media activity, gives the company easier access to customer opinions

Before one can develop a good Marketing Strategy, it is important to perform a "Situational Analysis. What are the key components when studying the Internal and External business environment?

• An SA describes the current business environment in which the company operates• Industry analysis, macro-level external environment, competitive environment/SWOT/Porter's/other models, internal environment, business objectives, leadership, vision, value proposition, social responsibility, market, financial health

Many things effect a "Buying Decision". "Attitude of Others" and "Unexpected Situational factors" occur that might alter your choices. What are they and how can they have you change?

• Attitude of others: your decisions are shaped by the opinions of people important to you• Unexpected situational factors: Consumer may form purchase intention based on a factor, but unexpected events may change purchase intention. EX: economy might make a turn for the worse

Big Data often scares many consumers. Why is that? What can go wrong? What are the positives of having Big data systems available to companies?

• Big data can pose a threat to the privacy of consumers; gathered information can fall into the wrong hands or an be used in the wrong way• Positives: its a great source of data, gives a holistic view of consumer base

What is "real-time" marketing and give an example of how advertisers are practicing it.

• Marketing during major media events such as Super Bowl, Grammys and Academy Awards• EX: Lights go out during superbowl -- Oreos tweets "you can still dunk in the dark"• EX: Lebron leg cramps, Gatorade says "our athletes don't get cramps" roasting Powerade

Define "Marketing Mix" and why is it important to a strategist to understand?

• Marketing mix: set of tactical marketing tools - product price, place, promotion - A strategist can blend these tools to produce the response they want in the target market

When using mechanical instruments for research, what is biometric measuring and neuro-marketing?

• Neuro: use technology to track brain electrical activity--how consumers feel • Biometric: track heart and respiration rates, sweat levels, and facial and eye movement

"Emotional Branding" to Moms had several key attributes identified to make an advertisement successful. What were some examples?

• Nirvana mom--everything is perfect • Sacrifice-- everything you've done for your kid • Commiseration-- being a mom is tough The Dad as stupid

Benefits of Customer Journey mapping

- clear picture of customer interaction - clarifies what customers think - confirms the journey of the customer -highlights the gaps between desired customer experience and actual experience - connects with customers on an emotional level

How does Chick-Fil-A distinguish themselves from other brands?

....

What is the "Starbucks Experience" and why does it work??

.....

What are the eight elements in a Marketing plan?

1) Executive summary 2) Current marketing situation 3) Threats and opportunities analysis 4) Objectives and issues 5) Marketing strategy 6) Action programs 7) Budgets 8) Controls

5 categories of influencers

1. Advocate - support for a brand remaining formally unaffiliated 2. Ambassador - allied with a brand - actions endorsed by company 3. Citizen - the Everyman influencer 4. Professional occupational - definition of their job function is to influence others through authoritative or instructive statements. 5. Celebrity

Name the four steps of Market research. Why is Step 1 most critical?

1. Define the problem and research objectives-- guides entire process 2. Develop the research plan for collecting information 3. Implement the research plan and collect/ analyze data 4. Interpret and report findings

TESLA is a good example of how Competition is not a zero sum game. Why do they need to develop an infrastructure and network with their competitors in order to be successful in the electric car market?

Electric cars are a very small share of the car market - use unusual marketing to get news outlets to report on them, loyal customers rave about products so don't need to spend much if any on social media advertising Testla must build a network with competitors in order to be successful in the car marketet because doing so will lead to increased acceptance of electric cars and a greater chance of favorable government regulations. As more car company's decide to enter the electric vehicle space, more consumers will consider Tesla's market offerings. If a multitude of companies lobbying government for favorable EV regulations is better than just one company, Tesla, trying to game the political system.

What are the five steps in the Buyer Decision process?

1. Need recognition 2. Information search 3. Evaluation of alternatives 4. Purchase decision 5. Post-purchase behavior

Amazon continues to grow their services base even though their shipping is barely breaking even. How do they make money and how is this helped by their business model as a "disruptor"?

Amazon web services actually makes most of the profits for amazonit can be called a disruptor because amazon created a new market for web services that other companies can purchase AMAZON Video: •Amazon web services generates majority of operating income •PROCESSCING AND STORAGE FACILITIES •Center of commerce •Advertising profits

Is "Behavioral and Social Targeting" an acceptable why to market to the individual In a b2C strategy? What is god about it and what is controversial?

Behavioral targeting is a marketing method that uses web user information to strengthen advertising campaigns.Social media targeting is the ability to display adverts and posts to specific audiences chosen by the advertiser or poster.Is good because people can get specific ads for products they want- controversial because its using personal data

Managing Customer Relationships and Capturing Customer Value

Butterflies= high profitability, short term loyalty Strangers = low profitability, short-term loyalty True Friends = long term, high profitbility Barancles = long term, low profitability

Questionnaires can be misleading when using open-ended or closed ended questions. Give an example.

Close ended - include all possible answers (Ex: multiple choice)Open ended - allow respondents to answer in their own words (reveal more than close ended)- need to use simple, direct, and unbiased wording

Does it make a difference if there has been a "geographic shift" in the country for marketing brand managers to consider in their marketing planning?

In the past two decades, the US population has shifted toward Sunbelt states; the West and South have grown while the Midwest and NorthEast have lost population. Americans also continue to move from rural to metropolitan areas, More Americans continue to move to suburbs and "micropolitan" areas.• Changes in where people live changes where/how they work. It does make a difference when considering a marketing plan

What makes "Cause-related" marketing programs effective and successful in trying to create partnership and new donors? Give some examples.

It can show customers that your brand cares more about selling x, it cares about the world's wellbeing, and many people want to support company's that are using their resources for good.Examples- -TOMS gives a pair of shoes to people in need - IKEA explaining climate change in store - Aerie raising awareness for eating disorders

Airbnb has introduced a Disruptive Business Model into the Hotel industry. What has been the keys to their success and how have they customized their experience to the customer?

Make it all about the customer and really choosing your own experience- can feel like a really person in the place instead of a tourist- can make your own meals and feel like a localcan decide between house, apartment, or room

Proctor and Gamble are Strong Advocates of treating their Customers like Partners. What are they doing to demonstrate that and how do they make sure their Clients are successful?

P&G's CBD structure makes sure that everyone is taken care of. The article says they are treating customers as "strategic partners," which in effect is true, but more so this program lets them treat customers as family. Rather than focus solely on the sales of P&G products, P&G CBD team makes sure that the stores are selling as many products as they can-even if those are competitors' products. They are focusing on "mutually beneficial relationships" so they can both improve their sales and respective customer relations.

What are the three levels of value

Personal value (income, career), Business Value (Revenue), Technical Value (systems, people, processes)

What is the difference between a Product-Oriented and a Marketing Oriented description of a company?

Product oriented descriptions say what a company does or creates, while marketing oriented descriptions are defined in terms of satisfying basic customer needs.

Marketing Mix

Product, Price, Place, Promotion

In Probability Sampling, what is the difference between Random, Stratified or Cluster Sampling?

SRS: every member of pop. has equal chance of selection • Stratified: pop. divided into mutually exclusive groups (like age), srs of each group • Cluster: population divided in groups (blocks) and takes a sample of groups and interview

4 steps in designing a customer-driven marketing strategy

Segmentation, targeting, differentiation, position

What different groups or ideas are present in a "Marketing Information Systems"?

Takes information from the marketing environment and then develops a marketing information system in which it can be passed on to marketing managers and other information users in order to make decisions Internal Databases Marketing Intelligence Marketing research Assessing information needs/Analyze and use the information from internal databases, marketing intelligence, and market research to pass on to marketing managers

PESTEL Analysis

The examination of political, economic, social, technological, environmental, and legal factors and their implications for an organization.

What is Marketing

The process by which companies engage customers, build strong customer relationships, and create customer value in order to capture value from customers in return

How has "Artificial Intelligence" changes to B2B marketing environment for the better? What new capabilities will AI provide to B2B players?

allows technology to be more integrated part of the process- can help market better to potential customers AI provides marketing solutions -- IBM Watson

What is an influencer?

an influencer has the ability to change behaviors or impact purchase decisions in a given context. On the social web, influencers have earned an engaged audience by producing content on specific topics.

ESPN, Marvel comics, Star Wars are a part of the Disney Portfolio. How does it affect their business and their portfolio?

• Business Portfolio- collection of businesses and products that make up the company• ESPN Brand portfolio generates 10.6B revenue; sports advertising. ESPN must change their brands so that they align with the overarching Disney brand• ESPN has hit hard times because of: future of sports coverage, competition (politics and other networks), rising costs of sports rights, drop in viewership• Owning many companies is good news/bad news. Leveraged/dragged down; one bad company can hurt the parent.

What is a Buying Center? How do business use them and why is it important for marketing to understand the dynamics of the Process? Who are the participants?

• Buying Center: All of the individuals and units that play a role in the purchase decision making process• It is important to understand this process because within the process there are various ways in which this process can take place; it is far from fixed. Additionally, the business marketer must learn who participates in the decision, each participant's relative influence, and what evaluation criteria each decision participant uses • Participants: Users-must use product/service Influencers-provide information for evaluating alternative products Gatekeepers- control the flow of information to others Buyers- contact the selling organization and place the order Deciders- final authority to purchase

How does "marketing myopia" effect a sellers' ability to deliver value to their customers?

• Companies focus on specific product they offer rather than the benefits and experiences produced by these products.• Limits the seller's ability to create a brand experience; cannot adapt to changing environments

What are the changes seen for marketing because of "Environmentalism, sustainability and social responsibility" as reflected in their branding and product development?

• Companies have realized that whats good for customer well-being and the planet can also be good for business• More efficient operations, less wasteful products are good for all so companies are trending toward this

Lifestyle might be the most accurate way to study and identify groups. Why is it becoming so very important when you study a consumer behavior market?

• Consumers don't just buy products, they buy the values and lifestyles those products represent. Certain lifestyle segments have needs that can be served through special products

In Non-Probability sampling, what is the difference between Convenience, Judgment or quota samples?

• Convenience: selects easiest pop. • Judgement: researcher chooses pop. members who are good prospects for accurate information • Quota: researcher finds and interview number of people in each of several categories

The chapter talks about "Brand Essence". What is it and why is it vital for a company to understand it? How is brand essence best communicated?

• Core essence: nucleus of the brand; who are you • Architecture: specific benefits the brand delivers; what do people buy • Positioning and Value Proposition: what motivates consumers with in competitive space; why do people buy your brand • Reputation: brands perceived ability to deliver value proposition; what do people say about your brand

Outline the factors that Influence Consumer Behavior and give examples.

• Cultural: children learn basic values, perceptions, wants and behaviors from family and other important institutions. EX: americans grow up exposed to freedom, hard work, etc. Programs attempt to cater to these • Social: small groups, social networks, family, social roles and status • Personal: occupation, age and status, economic situation, lifestyle, personality and self concept • Psychological: motivation, perception, learning and beliefs and attitudes

"Customer Insights" are achieved through market research, touchpoint analysis, primary and secondary collection and competitive intelligence? Define how each are conducted and the value of each method.

• Customer Insights: fresh marketing information-based understandings of customers and the marketplace that become the basis for creating customer value, engagement and relationships. Secondary data already exists, found in company's internal databases or bought from an external research firm. Cheaper and more accessible than primary data. Primary data is found through observational, experimental, or survey research. Can be found online, in focus groups, on the phone, mail, etc. Touchpoint analysis examines every contact between a customer and a company (purchases, support calls, site visits, etc.) Competitive intelligence- the systematic monitoring, collection, and analysis of publicly available information, aboue the consumers, competitors, and give it the greatest possible competitive advantage

"Customer Lifetime Value" and "Customer Equity" are two vital concepts each company needs to understand. What implications do they have for building marketing plans and strategy?

• Customer Lifetime Value: value of the entire stream of purchases a customer makes over a lifetime of patronages... • Losing the customer means losing a lot more than one purchase, NEED TO MAKE LIFETIME CUSTOMERS• Customer Equity: total combined customer lifetime values of all company's customers• Increase brand loyalty, increase CLV, increase CE

Social Media has gotten nasty". Give an example. Why? Should there be restrictions?

• Customer receives a damaged computer from FedEx, posts video of delivery man throwing the monitor• Good and bad; provides accountability to the firm, but can go to far and be somewhat unfair for them YELP EXAMPLE TOO

How does a "value proposition" help the working relationship in a marketing exchange?

• Customer satisfaction comes from how well a company delivers on its basic value prop and helps customers solve their buying problems, its the set of benefits or values it promises to deliver to consumers to satisfy their needsdifferentiating it from other brands; what makes their experience better / diff (cheap v. lux)

The new trend of "customer-generated marketing" has had a big impact on companies marketing plans and messaging. What is it?

• Customers play role in shaping their own brand experience and those of others. • Uninvited consumer to consumer exchanges in blogs, social media, etc.• Invited input, collect ideas from customers

Why does "post-purchase dissonance" and "cognitive" dissonance occur to many buyers?

• Dissonance: purchase expectation does not match purchase reality • Cognitive dissonance: discomfort caused by postpurchase conflict • So many consumers experience dissonance because every purchase involves compromise

Business to Business Social Media and Buying Process is rapidly changing. How is it being altered by the Internet and the Connected-world?

• E-procurement: online purchasing has grown rapidly in recent years; shaves transaction costs and increases efficiency Reverse auctions: put purchasing request online--suppliers bidTrading exchanges: companies work collectively to facilitate the trading process Company buying sites: post buying needs and invites bids, negotiates terms, and places ordersB-to-B digital and social media marketing: uses these to engage business customers and manage customer relationships anywhere, anytime Targets individuals in businesses who affect buying decisions

Explain the difference between Exploratory, Descriptive and Casual Research.

• Exploratory: gather preliminary information that will help define problem and suggest hypotheses • Descriptive: Marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of the consumer • Causal: test hypotheses about cause-and-effect relationships (ex:would tuition decrease lead to enrollment bump to cover it)

Why is it important to recognize the "Family" and current changes if you are in marketing?

• Family is the most important consumer buying organization in society. • The "modern family" composition and roles are changing. It is important to cater to the different familial roles

When might a business desire fewer customers over more customers in developing their marketing plans?

• Fewer loyal customers provide greater customer equity than a lot of unloyal customers, smaller high value customer base• Satisfy the 20% who spends 80%• Lexus wants lifetime Lexus drivers because they will spend a ton if they are loyal for life (Luxury Product)

What is "generational marketing" and what are the good points and bad points of this approach?

• Generational marketing is creating separate products and/or marketing programs for each generation • Bad: can put off one generation; defining people by birth date may be less effective segmentation than lifestyle, stage, values; • Good: Each generation spans decades and many socio-economic levels--you can capture a ton of value from one generation

MOM as Brand Ambassador's programs have been very successful. What is the good news and bad news for a company to use this approach in their marketing? Use McDonalds, Disney or Walmart Moms Ambassador approach.

• Good news: these brands get mostly good reviews from sources that people trust• Bad news: some people may not believe the reviews are credible since the moms are receiving benefits. Potential for a bad review that could do more damage than all the good reviews Disney moms are social media presences who talk about their experience in the parks and with the company on social media. They are paid by Disney, but no minimum post requirement is present

In customer-engagement marketing, why is there a shift of "marketing by intrusion" to "marketing by attraction".

• Greater consumer empowerment -- attract customers rather than interrupt them- Shift has been made due to social media, no longer viable to simply run a bunch of annoying and interrupting ads on tv or videos. now it's more of attracting people to your brand through engagement online, wanting active participation. feelings and messages that engage rather than interrupt consumers.

What is a "Focus Group" and why would you use one?

• Group interviewing of people with a trained moderator directing discussion. • Hopefully you bring out deeper feelings and thoughts Hear consumer ideas and opinions, observe facial expressions, body movements, group interplay, and conversational flows.

Many products are considered "Habitual-Buys". Compare that to a "Variety-seeking buying behavior" environment. What are the characteristics of each?

• Habitual: low consumer involvement and little significant brand difference. Table salt • Variety-seeking: low consumer involvement but significant perceived brand differences. Buying cookies--choose brand without much evaluation and then evaluate during consumption. Next time they may switch to another brand out of boredom. Consumers that exhibit this often do a lot of brand switching rather than those who buy the same brand out of habit.

How do Business Buyer Behaviors vary in their decision process and decision criteria?

• Heavily influenced by factors in economic environment--primary demand, economic outlook, cost of money • Supply of key materials • technological, political and competitive developments in environment • Culture and custom

As the economy shift, why is income distribution important to understand as income levels?

• Increased income distribution has led to a tiered market• Must pursue the correct target market income level. EX: Nordstrom--affluent; Dollar General--those with modest means

Five Force Model by Michael Porter analyzes the broader scope of an industry and its' competitors? Why is this important and vital for a Chief Marketing Strategist to consider?

• Industry competitors (middle), buyers, substitutes, supplier, potential entrants• Shows the give and take by the various forces affecting an industry

The "Rate of Product Adoption" varies from person to person. Why is that and where does one usually profile? Name the five stages or types of adopters.

• Innovators • Early adopters • Early mainstream • Late mainstream • Lagging adopters Want to target innovators and early adopters because they influence the later adopters

Provide a definition of key terms "a market" and "Marketing Management".

• Market: set of actual and potential buyers of a product or service, sharing a particular want or need• Marketing Management: design strategies that will engage and target customers and build profitable relationships with them

How does an advertiser create "Behavioral Targeting"?

• Marketers mine consumer browsing information and target ads and offers to specific consumers

"Alternative Buying Evaluation" is an important process brand marketing teams must study. Why and what would one learn?

• Marketers should study buyers to find out how they actually evaluate brand alternatives; if they know what processes go on, they can take steps to influence the buyer's decision

What is Observational research, ethnographic research and experimental type research?

• Observational: gathering primary data by observing relevant people, actions and situations. EX: Trader Joe's evaluates potential store location by checking traffic patterns, competitor locations, etc. • Ethnographic: sending trained observers to watch and interact with consumers in their "natural environment". EX: Coors researchers my go to bars • Experimental: selecting matched groups of subjects, giving them different treatments, controlling related factors and checking for differences in responses. Best suited for gathering casual information

The term "Value" is relevant to different people but it makes for a challenge for a marketing team. Why is it key to understand the many different types of value in product selection?

• People find "value" in different things. • Changing economic environment → customers look for value for money → company's cater to this; Target "Expect More, Pay Less"• The key is to understand what value consumers look for and offer a value proposition that caters to it

Ordering and wording can skew a questionnaire. How does it do that?

• Personal questions first can cause respondents to become defensive• Wording can bias the response

Describe the steps in the typical B2B Buying Process. What is an RFP, QA process and VPA (Performance Review)

• Problem recognition- Someone in the company recognizes a problem or need that can be met by acquiring a specific product or service. • General need description- Describes the characteristics and quantity of the needed item• Product specifications- Determines the best product characteristics (based on cost/durability/quality) • Supplier search- involves compiling a list of qualified suppliers to find the best vendors • (RFP- request for proposal) Proposal solicitation- is the process of requesting proposals from qualified suppliers A QA process is a quality assurance test to make sure the products meet all of the specifications and looks for any mistakes. • Supplier selection- is when the buying center creates a list of desired supplier attributes and negotiates with preferred suppliers for favorable terms and conditions • Order routine specification- The buyer writes the final order with the chosen suppliers, listing the technical specifications, quantity needed, expected time of delivery, return policies, and warranties • Performance review: May lead buyer to continue, modify or drop the arrangement (A performance review is when the buyer assessed the supplier and considers the future)

What is the difference between the five concepts of "Production, Product, Selling, Marketing and Societal Marketing" concept?

• Production: consumers care about available and affordable products → focus on improving production and distribution Product: consumers care about product quality → focus on improving product continuously Selling: Consumers will not buy products unless firm undertakes large scale promotion and selling efforts → focus on promotion and selling• Marketing: achieving goals depends on knowing needs and wants of market and delivering satisfaction better than competitors → focus on marketing• Societal Marketing: Marketing decisions should consider wants, company requirements, consumer long-run interest, society's interest →focus on consumer and societal interests longterm

BCG Consulting uses a "Portfolio Analysis" Methodology for their customers showing "Growth-Share Matrix? How does it work and what can you communicate with it?

• Relative market share vs. marketing growth rate• Question mark: High growth, low share• Dog: low growth, low share• Cash Cow: low growth, high share• Star: High growth, high share• Communicates the position of each of a company's SBU's (strategic business units), helping decide where to further invest funds

How is "Social Class" measured in the United States? Is it an important distinction?

• Social Class: relatively permanent and ordered divisions whose members share values interests and behaviors. • Measured as a combination of income, occupation, education, and wealth• Important distinction because a single factor does not determine it

The three types of buying situations are straight rebuy, modified rebuy and new task buy. What difference in approach, costs and structure does each have?

• Straight rebuy- buyers reorder something without any modifications; handled on a routine basis; to keep customers "in" suppliers try to maintain customer engagement and product/service quality • Modified rebuy- buyer wants to modify product specifications, prices, terms or suppliers; "in" suppliers become nervous and feel pressured to put best foot forward to protect an account • New task- company buying product or service for the first time. The greater the cost or risk, the large the number of decision participants and greater the company's efforts to collect information. Marketer's greatest opportunity and challenge

What is a SWOT analysis and what can it reveal?

• Strengths, Weaknesses, Opportunities, Threats• Gives a good idea of the competitive landscape of the company

How does "subculture" play a role in understanding the Consumer? What is a Total Marketing Strategy?

• Subculture: nationalities, racial groups, geographic regions. These subcultures make up important market segments; marketers often design programs tailored to their needs • Total Marketing Strategy: practice of integrating ethnic themes and cross-cultural perspectives within their mainstream marketing. EX: cheerios commercials feature interracial families. Appeals to consumer similarities across segments rather than differences

"Shinola" Products is a good example of a company understanding their consumer. What do they do that makes them close to their customer and create a high demand in their target group?

• The company developed a brand without knowing what their product would be. The brand is one that attempts to elicit a response by harkening back to real, authentic america. They effectively target its audience through durable products, American manufacturing, lifetime guarantees, and industrial feeling retail stores • Consequently, customers like their brand so they also like their products. High demand → can sell bikes for several thousand dollars

Why is it important to study the Micro and the Macro environment?

• The interplay of these factors is essential to understanding a company's success or potential therefore• Macro: important to know they were at the right place at the right time; target market and sentiment; threats and obstacles• Micro: who sees value--needs or wants; product positioning

Ritz Crackers are an iconic brand. How did they conduct research and what did they learn about the consumer buying habits that helped them launch Ritz chips.

• They learned that consumers have distinct opinions about the taste of their product and the texture of chips as well as the bag type. They made a chip that retained well-liked qualities of ritz and those of chips Ritz conducted trials with consumers and asked them a multitude of questions about their preconceived notions and thoughts on the products they were creatingThe producers realized that people consider crackers more of a winter snack, and chips more of a summertime snack. Therefore the creation of this new product would not necessarily take away large sales from their crackers. The producers also realized that they should place their Ritz chips next to other Ritz products so that the higher price of Ritz chips would not be as noticeable than if they were placed next to other chips

Netflix uses analytics to help improve customer satisfaction. What do they do?

• They monitor what consumers watch and use big data insights to give customers what they want to watch through recommendations, deciding what programming to offer and what content to develop

What is a "Value Delivery Network"?

• Value Delivery Network: composed of the company, suppliers, distributors, and consumers who partner with each other to improve the performance of the entire system in delivering customer value

What is a "Value-Chain" Analysis? Why is it important to perform one for a company?

• Value chain: series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products • To understand how the company creates value for its consumers

Is perception more important than reality in marketing? What makes a "Complex buying" process different?

• Yes, it is what people perceive, it determines how they make buying decisions • A complex buying process is different in that these consumers are highly involved in a purchase and perceive significant differences among brands. Marketers have to differentiate their brand's features and inform the buyer. consumers may be highly involved when the product is expensive, risky, purchased infrequently, and highly self-expressive.

Marketing teams often add someone with Psychology Expertise in order to understand the consumer. Why is that role important and what do they study?

•Consumers often don't know or can't describe why they act as they do. Psychologists are hired to carry out motivation research that probe subconscious motivation underlying behaviors and emotions towards brands. • A person's buying choices are futher influenced by four major psychological factors: motivation, perception, learning and beliefs and attitudes