Marketing Final (Conwell Worthington)
What are the steps in the marketing research process?
1. Define the objectives and research the needs 2. Design the research 3. Collect the Data 4. Analyze the data and develop insights 5. Develop and implement an action plan
personal selling process
1. Generate and qualify leads 2. Preapproach 3. Sales presentation and overcoming reservations 4. Closing the sale 5. Follow-up
What is the process for developing new products (idea generation through evaluation of results)? Know all the terms for each slide.
1. Idea Generation - To generate ideas for products, a firm can use its own internal research and development efforts, collaborate with other firms and institutions, license technology, brainstorm, outsource, research competitors' products and services, and/or conduct consumer research. In many cases, these practices for identifying new products ideas cascade into other aspects of the product development process 2. Concept Testing - An idea with potential is developed further into a concept, which in this context refers to a brief written description of the product; its technology, working principles, and forms 3. Product Development - This entails a process of balancing various engineering, manufacturing, marketing, and economic considerations to develop a product's form and features or a service's features. An engineering team develops a product prototype that is based on research findings from the previous concept testing step as well as their own knowledge about materials and technology. 4. Market Testing - The firm has developed its new product or service and tested the prototypes. Now it must test the market for the new product with a trial batch of products. These tests can take two forms: premarket and test marketing. 5. Product Launch - If the market testing returns with positive results, the firms are ready to introduce the product to the entire market. This most critical step in the new product introductions requires tremendous financial resources and extensive coordination of all aspects of the marketing mix. 6. Evaluation of Results - After the product has been launched, marketers must undertake a critical postlaunch review to determine whether the product and its launch were a success or failure and what additional resources or changes to the marketing mix are needed if any.
Why do firms create new products?
1. changing customer needs 2. market saturation 3. managing risk through diversity 4. fashion cycles 5. improving business relationships
What is innovation?
A novel and useful idea that is successfully implemented
What are the different components of IMC?
Advertising, Public Relations, Sales Promotion, Personal Selling, Direct Marketing, Online Marketing, Websites, Blogs, Social Media Advertising - the placement of announcement and persuasive messages in time or space purchased in any of mass media by business firms, nonprofit organizations, government agencies, and individuals who seek to inform and/or persuade members of a particular target market or audience about their products, services, organizations, or ideas Public relations- Organizational function that manages the firm's communications to achieve a variety of objectives, including building and maintaining a positive image, handling or heading off unfavorable stories or events, and maintaining positive relationships with the media sales promotion - Special incentives or excitement-building programs, such as coupons, rebates, contests, free samples, and point-of-purchase displays, that encourage the purchase of a product or services. Personal Selling - The two-way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision. direct marketing - Marketing that communicates directly with target customers to generate a response or transaction online marketing - marketing through wireless handheld devices such as smartphones and tablets. Websites - Firms have increased their emphasis on communicating with customers through their websites. They use their websites to build their brand image and educate customers about their products or services as well as where they can be purchased Blogs - Contains periodic posts on a common web page social media - Online and mobile technologies that distribute content to facilitate interpersonal interactions
Understand the difference between product mix and product lines.
All the products and services offered by a firm is called its product mix Ex: Mercedes Cars The product mix typically consists of various product lines Ex: Mercedes-Benz Cars, Mercedes-AMG Cars, Smart Cars, Mercedes-Benz Vans
What is the AIDA model?
Awareness, Interest, Desire, Action Awareness - Gain brand awareness and attention. Interest - Once the customer is aware that the company or product exists communication must work to increase the consumer's interest level. Desire - Should move the consumer from "I like it" to "I want it" Action - The ultimate goal of any form of marketing is to drive the reciever to action. Offering special deals, messages other stuff help
What is the depth and breadth of the product line and mix?
Breadth - the count of the number of product lines offered by the firm Depth - the number of products within a product line
What is break-even analysis? What is a break-even point? How do you calculate?
Break-even analysis is the technique used to examine the relationships among cost, price, revenue, and profit over different levels of production and sales to determine the break-even point The break-even point is the point at which the number of units sold generates just enough revenue to equal the total costs at this point profits are zero
What are the factors for establishing a relationship with retailers?
Channel Structure- If it is vertically integrated or not Customer Expectations- Manufacturers need to know where their target market customers expect to find their products and those of their competitors. (Apple doesn't sell in TJ Maxx) Channel Characteristics-The larger and more sophisticated the channel member, the less likely that it will use supply chain intermediaries. Distribution intensity- The number of supply chain members to use at each level of the supply chain
What is a competitor orientation? What is competitive parity?
Competitor Orientation is when a firms strategizes according to the premise that they should measure themselves primarily against their competition Some firms focus on competitive parity which means they set prices that are similar to those of their major competitors.
What are some ethical challenges in personal selling?
Corporate policy and sales personal ethics
data mining
Data sets are analyzed with a varieties of statistical tools known as data mining tools, to uncover previously unknown patterns or relationships among variables stored in the big data databases
Big Data
Data sets that are too large and complex o analyze with conventional data management software
What are the benefits of multi-channel shopping for customers?
Deeper and Broader Selection Personalization Expanded Market Presence Integrated Customer Relationship Management Brand Image Pricing Supply Chain
What is elastic demand?
Demand is elastic when a change in price causes a large change in demand
What is the diffusion of innovation? Understand each stage of the diffusion of innovation curve.
Diffusion of innovation is the theory that helps marketers understand the rate at which consumers are likely to adopt a new product or service The stages are innovators, early adopters, early majority, late majority, laggards. 1. Innovators are those buyers who want to be the first on the block to have the new product or service. These buyers enjoy taking risks and are regarded as highly knowledgeable 2. Early adopters are those who don't like to take as much risk as innovators do but instead wait and purchase the product after careful review 3. The early majority are those who represent about 34% of the population. This population is crucial because few new products and services can be profitable until this large group buys them. IF this group never becomes large enough, the product or service typically fails. 4. The late Majority is the next group of buyers to enter a new product market. The product has achieved its full market potential. 5. Laggards make up 16% and are likely to avoid change and rely on traditional products until the products are no longer available.
What are fixed costs, variable costs, and total costs?
Fixed - Costs that remain essentially at the same level, regardless of any changes in the volume of production Variable - Those costs. Primarily labor and materials, that vary with production volume. Total cost is simply the sum of variable and fixed costs.
Understand all of the different types of retailers
Food Retailers, General Merchandise Retailers, Service Retailers
What are the steps in planning an advertising campaign?
Identify Target Audience, Set Advertising Objectives, Determine Advertising Budget, Convey the Message, Evaluate and Select Media, Create Advertisements, Asses Impact using Marketing Metrics Identify Target Audience Conduct research to identify their target audience, then use the information they gain to set the ton for the advertising program and help them select the mediat they will use to deliver the message to that audience. Set Advertising Objectives Advertising Plan - a subsection of the firm's overall marketing plan that explicitly analyzes the marketing and advertising situation, identifies the objectives of the advertising campaign, clarifies a specific strategy for accomplishing those objectives, and indicates how the firm can determine whether the campaign was successful. Determine the Advertising Budget Determine the nature of the market and the product influence the size of the advertising budgets. Convey the Message Determine what they want to convey about the product or service. The message provides the target audience with reasons to respond in a desired way. Evaluate and Select Media The content of an advertisement is tied closely to the characteristics of the media that firms select to carry the message, and vice versa. Create Advertisements After the advertiser has decided ont he message,type of ad, and appeal, its attention shifts to the actual creation of the advertisement. In this step, the message and appeal are translated creatively into words, pictures, colors, and/or music.
What is the difference between an informational appeal and an emotional appeal?
Informational Appeal help consumers make purchase decisions by offering factual information that encourages consumers to evaluate the brand favorably on the basis of the key benefits it provides Emotional Appeal aims to satisfy consumers' emotional desires rather than their utilitarian needs.
What is informative advertising?
Informative Advertising - Communication used to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase. Such advertising helps determine some important early stages of a product's life cycle, particularly when consumers have little information about the specific product or type of product.
What is IMC?
Integrated marketing communications represents the promotion dimension of the six Ps. It encompasses a variety of communication disciplines-advertising, personal selling sales promotion, public relations, direct marketing, and online marketing including social media
Understand the different types of distribution intensity (intensive, selective, and exclusive)
Intensitve - Place products in as many outlets as possible. Selective - Few selected retail customers in a territory to sell products. Helps seller maintain an image/ Exclusive - Strategy in which only selected retailers can sell a manufacturer's brand. Helps seller maintain an image relating to their target market.
Why is it important for companies/brands to innovate?
It is important to innovate in order to establish a commanding, early market share of new products or services.
What are the different types of competition?
Monopoly - One firm provides the product or service in a particular industry which results in less price competition Oligopoly - Only a few firms dominate and there is a high start-up cost. monopolistic competition - Occurs when there are many firms competing for customers in a given market but their products are differentiated. Strict price in this,. pure competition - A large number of sellers offer standardized products or commodities that consumers perceive as substitutable, such as grains, gold, meat, spices, or minerals. In such markets, price usually is set according to the laws of supply and demand.
What are pioneers (new to the world products)?
New product introductions that establish a completely new market or radically change both the rules of the competition and consumer preference in a market; also called breakthroughs
Know methods to set a budget
Objective-and-task method - determines the budget required to undertake specific tasks to accomplish communication objectives. To use this method, marketers first establish a set of communication objectives, then determine which media best reach the target market and how much it will cost to run the number and types of communications necessary to achieve the objectives Rule of Thumb Methods Competitive Parity - The communication budget is set so that the firm's share of communication expenses equals its share of the market Percentage-of-sales - the communication budget is a fixed percetnage of forecasted sales Available budget - Marketers forecast their sales and expenses, exluding communication, during the budgeting period. The difference between the forecast sales and expenses plus desired profit is reserved for the communication budget. That is, the communication budget is the money available after operating costs and profits have been budgeted.
Qualitative research: understand observation, in-depth interviews, focus groups, and social media
Observation - Examining purchase and consumption behaviors through personal or video camera scrutiny or by tracking customers' movements electronically as they move through a store In-depth interviews - Trained researchers ask questions and listen to and record the answers and then pose additional questions to clarify or expand on a particular issue Focus Groups - Small groups of people come together for an intensive discussion about a particular topic. Social Media -
Retail Strategy using two additional P's
Presentation and Personel
What does price mean?
Price is the cost of something
What is a pull versus a push strategy?
Pull strategy - goal is to get consumers to pull the product into the marketing channel by demanding it Push strategy - designed to increase demand by focusing on wholesalers, retailers, or sailespeople. These campaigns attempt to motivate the seller to highlight the product, rather than the products of competitors, and thereby push the product to consumers.
Understand the difference between qualitative and quantitative research.
Qualitative research helps the researcher more clearly formulate the research objectives Quantitative data is data that is structured to be statistically tested and provides information needed to confirm insights and hypotheses generated via qualitative research or secondary data
What factors affect product diffusion?
Relative Advantage - If a product is perceived to be better than substitutes Compatibility - International cultural differences Observability - When products are easily observed their benefits or uses are easily communicated to others, which enhances the diffusion process. Complexity and Trialability - Products that are relatively less complex are also relatively easy to try. These products generally diffuse more quickly and lead to greater and faster adoption than will those that are not so easy to try.
Why is it important for a manufacturer to choose the right retail partners?
Retail partners create value by pulling together all the actions necessary for the greatest possible customer convenience and satisfaction.
What is sales promotion? What are some of the different types of sales promotion? When would a firm engage in sales promotion? Understand that sales promotion can be applied in the B2B or B2C.
Sale Promotions are special incentives or excitement-building programs that encourage consumers to purchase a particular product or service, typically used in conjunction with other advertising or personal selling programs. Types include coupons, deals, premiums, contests, sweepstakes, samples, loyalty programs, etc. A firm would engage in a sales promotion to either get short term or long term sales
What's the difference between primary and secondary data?
Secondary data is data that is collected prior to the start of the focal research projectCould come from free or very inexpensive external sources such as census data, information from trade associations, and reports published in magazines Primary data are those collected to address the specific research needs. Either Qualititaive or quantitative data
What are types of products: specialty, shopping, convenience?
Specialty products - those for which customers express such a strong preference that they will expend considerable effort to search for the best suppliers. Shopping products - those which consumers will spend a fair amount of time comparing alternatives, such as furniture, apparel, fragrances, appliances, and travel. Convenience products - products or services for which the consumer is not willing to expend any effort to evaluate prior to purchase. They have frequently purchased commodity items, usually bought with very little thought, such as common beverages, bread, or soap.
Quantitative research: understand surveys, experiments, scanner, and panel research.
Surveys - a systematic means of collecting information from people using a questionnaire. Structures (Open Ended) v Unstructured questions (closed ended) Experiments - A type of quantitative research that systematically manipulates one or more variables to determine which variables have a causal effect on other variables. Panel and Scanner - More hands-on research where people test products and such
What is external vs. internal secondary data? What is syndicated data?
Syndicated data is secondary data that is free or inexpensive that marketers can purchase through research firms
What are the advantages and disadvantages of primary versus secondary data?
The advantages of secondary data is that it is cheap and not time consuming, however it doesn't really help your marketing research because it doesn't answer the objectives, methods may be not appropriate data may be biased, info may not be timely and methods for collecting data may not be appropriate. The advantages of primary data is that is addresses the specific research needs and behavioral insights generally not available from secondary research. However it is expensive and time consuming, requires more sophisticated training experience.
How does personal selling add value for a company?
The benefits for salespeople mean that they are expensive for firms. Experts estimate that the average cost of a single B2B sales call is over $300. So why include them in the marketing channel at all? In response to this question, some firms have turned to the internet and technology to lower the costs of personal selling.
What is the product life cycle? Understand each stage.
The product life cycle defines the stages that products move through as they enter, get established in, and ultimately leave the marketplace. 1. Introduction State - Innovators Start Buying the product 2. Growth Stage - Product gains acceptance, demand, and sales increase. And competitors emerge in the product category 3. Maturity Stage - Sales reach their peak, so firms try to rejuvenate their products by adding enw features or repositioning them 4. Decline Stage - Stage of the product life cycle when sales decline and th eproduct eventually exits the market
What is price elasticity of demand?
The responsiveness of demand to a change in price
How does the brand add value for the customer and the company?
Through perceived value it garners a certain status among its users
Why/when do we conduct marketing research?
We conduct market research to aid decision-makers who are involved in marketing goods and services We conduct market research when marketing managers attempt to develop their strategies, so marketing research can provide them with valuable information that will help them make segmentation, positioning, product, price, place, and promotion ideas.
Datawarehouse
Where big data sets are stored
customer orientation
a company objective based on the premise that the firm should measure itself primarily according to whether it meets its customers' needs
What is profit orientation?
a company objective that can be implemented by focusing on target profit pricing, maximizing profits, or target return pricing
What is a demand curve?
a curve that shows the relationship between the price of a product and the quantity of the product demanded
What is the lagged effect?
a delayed response to a marketing communication campaign
What is brand loyalty?
a favorable attitude toward and consistent purchase of a single brand over time
service retailer
a retailer whose product line is actually a service; examples include hotels, airlines, banks, colleges, and many others
What is public relations?
a strategic communication process that builds mutually beneficial relationships between organizations and their publics
What is inelastic demand?
an increase or decrease in price will not significantly affect demand for the product
What makes a brand?
brand name, URLs, logos and symbols, characters, slogans, jingles/sounds
What benefits do stores provide for customers?
browsing, touching and feeling, personal service, cash and credit, entertainment and social interaction, instant gratification, risk reduction
persuasive advertising
communication used to motivate consumers to take action
reminder advertising
communication used to remind consumers of a product or to prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle
What are the 5C's of Pricing?
competition, costs, company objectives, customers, channel members
What is brand extension?
extending an existing brand name to new product categories example: Colgate and Crest sell toothbrushes and other products even thought their original product line was just toothpaste
What factors impact price elasticity?
income effect, substitution effect, cross-price elasticity
What is brand dilution?
occurs when a brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold. Ferrari might be at risk of this because it has gone far past clothing to offer brand licenses for sunglasses, perfume and cologne, etc.
General Merchandise Retailers
offer a variety of product lines, stocked in considerable depth
What is PSA?
public service announcement Focus on public welfare; generally they are sponsored by nonprofit institutions, civic groups, religious organizations, trade associations, or political groups. Inform, persuade, or remind customers.
Managing the Sales Force
sales force structure recruiting and selecting salespeople sales training motivating and compensating salespeople evaluating salespeople
Food Retailers
supermarket, supercenter, convenience, warehouse club
What is brand equity?
the added value a brand name gives to a product beyond the functional benefits provided
What is sales orientation?
the belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits
What is co-branding?
the practice of marketing two or more brands together, on the same package or promotion ex: Taco Bell KFC's
What is personal selling?
the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person's or group's purchase decision. Personal selling can take place in various situations: face-to face, via videoconferencing, on the telephone, or over the Internet.
