Marketing Test 1
What are some example questions that typify the differences between quantitative and qualitative research?
"How would you rate your experience on a scale of 1 to 10" "What is something we can improve upon as a company?"
Net Promoter Score
% Promoters - % Detractors Promoters are people who respond with a 9 or 10 and detractors are people who respond with a 0-6 (people between are passively satisfied) to the question "How likely is it that you would recommend this product or service to a friend or colleague?" on a 1-10 scale > 0 good, > 20 favorable, > 50 excellent, > 80 world class
Generation Z
(Born approx 1997-2010): Invest in strong online presence, including social media advertising and influencer partnerships Highlight brand's commitment to sustainability and social responsibility Ensure website and marketers are mobile-friendly Use short-form videos on TikTok and Instagram Incorporate visual storytelling
Growth rate formula
(Ending value - Beginning value)/Beginning value - Also known as simple annual growth rate or arithmetic growth rate - Calculates year-over-year growth of a specific metric - Particularly useful for understanding how business's performance has changed on annual basis Ending value: value of metric at end of year Beginning value: value of metric at beginning of year
segment profitablity
(Segment size x Segment adoption % x Purchase behavior x Profit margin %) - Fixed costs Segment size: Number of people in segment Segment adoption %: % of customers in segment who're likely to purchase product Purchase behavior: Purchase price X # of times customer would purchase product in a year Profit margin %: (Purchase price - variable costs) / Purchase price Fixed costs: Advertising expenditure, rent, utilities, insurance, manager salaries
Baby Boomers
(born approximately 1946-1964): Leverage traditional media, while also using direct mail and email marketing Highlight quality and durability of product Appeal to nostalgia Provide educational content (prefer research) Show community involvement Speak to health and wellness
Generation X
(born approximately 1965-1980): Use variety of channels, including traditional and digital Highlight convenience and time-saving Promote work-life balance Publish long-form content: blogs and in-depth videos Invest in customer loyalty programs to reward brand loyalty
Millennials
(born approximately 1981-1996): Invest in strong online presence, including social media advertising and influencer partnerships Highlight brand's commitment to sustainability and social responsibility Ensure website and marketers are mobile-friendly Use short-form videos on TikTok and Instagram Incorporate visual storytelling
What are the elements of a marketing-research objective
-place the research in the context of broader marketing efforts -include the phrase "we aim to" -identify what's to be measured -specify the target audience
Simple Additive Rule
1. Add all scores together for each product 2. Purchase product that has highest total score
4 Product types
1. Convenience: - Buy frequently (habitual), immediately (impulse), with minimal comparison - Minimal advertising - High substitute acceptance 2. Shopping: - Buy less frequently, do more research, compare options - Moderate to low substitute acceptance - Focus on differentiation and benefits compared to competitors; use ads, personal selling, online reviews 3. Specialty: - Willing to make special purchase effort for unique products - Very low; strong brand preference; won't accept substitution - Promotion Reinforces uniqueness, exclusivity of brand; personalized selling; high quality ads, influencer marketing, exclusive events 4. Unsought: - Consumer Doesn't know about product or like to think about buying it, incl. new-to-world products - Substitute acceptance Variable: life insurance (compare) vs. emergency situation (less compare) - For promotion: Education and awareness building are key; aggressive, targeted advertising
3 components of a product
1. Core Customer Value: Fundamentally, why is the customer buying the product? (Ex: a customer buys a car for convenient transportation) 2. Actual product: Tangible and inherent features and qualities of the product that customers can directly experience and evaluate Elements - Name: Product's name & logo, which contribute to its recognition & perception in market - Features: Specific characteristics, functions, & specifications of product that provide its unique selling points & benefits to customer - Design & appearance: Physical design, shape, color, & overall aesthetic elements that contribute to product's visual appeal & user experience - Packaging: Product's packaging, which includes materials, design, & information provided on packaging - Instructions: Accompanying manuals or docs that helps users understand how to use, assemble, install or maintain product - Performance: How well the product performs its intended functions & meets needs of target audience - Reliability: Consistency & dependability of product's performance over time - Durability: Ability of product to withstand wear over an extended period 3. Associated services: Additional features or services that enhance actual product, addressing overall customer experience—also called augmented product
Changes in product mix
1. Expand product line by adding individual product variations, including flavors, ingredients, colors, sizes, shapes (referred to as product line extension). - Note that some product line extensions can be "vertical," meaning they can be positioned as premium or discount variations on the original product, thus appealing to new target segments 2. Shrink product line by eliminating individual product variations, thus reallocating resources to more profitable products 3. Expand product mix by adding a whole new product category (referred to as category extension) 4. Shrink product mix by eliminating existing product category, thus also reallocating resources to more profitable product lines
Five Methods of segmentation
1. Geographic: Advantages: Valuable for large company operating in many countries and regions within a country, enabling consideration of cultural and climate differences § Effective for small firms with limited resources that need to operate in defined area for efficiency purposes Disadvantages: Assumes all consumers in geo area have similar needs, values Doesn't deliver understanding of consumer behavior Best to combine with another segmentation method 2. Demographic: Age, income, education, gender Advantages: Simple to use as governmental stats data (e.g., U.S. Census) readily available Disadvantages: Data readily available to competitors § Like geo, based on assumption that consumers in same demo group have similar needs—doesn't deliver understanding of consumers themselves 3. Psychographic: gathers user data on attributes like personality, values, attitudes, opinions, interests, and lifestyles Draws out motivations behind behavior Tells you why consumers buy Data can be collected through focus groups, interviews, surveys - and social media Advantages: Offers much better insight into consumer as a person, which enables identification of underlying needs and motives Disadvantages: Requires detailed research on consumer, which can be expensive and out of reach of smaller businesses 4. Benefits : Group consumers based on benefits they seek from product Advantages: Good for companies offering products that have unique features, so they can identify which benefits to promote Disadvantages: Increased variety of products to address different benefit preferences increases costs: production, marketing, storage 5. Behavior: Groups consumers based on how they've already interacted with the brand or made a purchasing decision Advantages: Historical behavior tends to be a predictor of future behavior, increasing e
5 segmentation methods
1. Geographic: Continent: North America, Asia, Europe, Africa Within U.S.: Pacific, mountain, central, south, mid-Atlantic, northeast 2. Demographic: Age, income, education, gender 3. Psychographic: Lifestyle, self-concept, self-values 4. Benefits: Convenience, economy, prestige 5. Behavioral: Occasion, loyalty, website usage, cart conversion/abandonment
5 criteria for evaluating the attractiveness of a segment
1. Identifiable: Can we identify who's within segment and measure their characteristics? 2. Substantial: Is the segment large enough in terms of size and buying power to generate sufficient profits? 3. Reachable: Can customers be reached through persuasive communication and product distribution? 4. Responsive: Will customers react positively to the product? 5. Profitable: What level of profitability can we achieve?
5 core aspects of marketing
1. Marketing is about satisfying customer needs & wants 2. Marketing entails an exchange; Exchange = the trade of things of value between the buyer & seller so that each is better off as a result 3. Marketing requires decisions about the 4 Ps 4. Marketing can be performed by individuals & organizations 5. Marketing affects various stakeholders; Stakeholders: for businesses: economy, stakeholders, customers, employees, suppliers, lenders, shareholders, society and state,
Multi-Attribute Utility Rule
1. Multiply each attribute score by the appropriate weighting for each attribute 2. Add all weighted scores together for each product 3. Purchase product that has highest total score
Consumer Decision Process
1. Need recognition - Consumer's exposure to stimulus triggers need recognition -Need recognition results from gap between actual state and desired state - Stimulus for trigger: Internal (physiological, psychological, cognitive, emotional and social, previous unmet expecattions 2. Information search What they search for: - The various solutions (pathway options) available to address your needs - The criteria that you should use to evaluate the solutions - The performance level of each alternative based on each evaluative criterion - Look internally at their memory and at external sources like the internet and reviews 3. Alternative evaluation 4. Purchase & consumption 5. Postpurchase
2 types of consumer needs
1. Physiological need (relates to emotional benefits on consumer benefit ladder) - Related to emotions, feelings, and personal desires - Focus on individual's aspirations, social identity, and self expression - More about how product makes person feel or how it fits their self-image - Satisfaction linked to emotional fulfillment, self-expression, and alignment with personal values 2. Functional need (relates to functional benefits on consumer benefit ladder) - Pertain to basic, utilitarian requirements that a product must fulfill - Address specific problem or task consumer aims to solve or achieve - Often involve features, specifications, performance, and utility of product - Satisfaction derived from product's ability to effectively address functional requirements and perform as expected
Lexicographic Decision Rule
1. Rank the determinant attributes by importance 2. Choose product(s) that perform(s) best on most important attribute 3. If two or more products tie on that attribute, go to the second most important, continuing until one product outperforms the others 4. Purchase that product
Elimination-by-Aspects Decision Rule
1. Rank the determinant attributes by importance and determine cutoffs 2. Evaluate attributes one at a time, starting with most important attribute 3. If product fails to meet a predetermined cutoff for that attribute, eliminate it from consideration 4. Continue process in order of importance under only one product remains
2 perspectives on branding
1. Trademark: A brand is a name, term, design, symbol or any other feature that identifies one seller's goods or service as distinct from those of other sellers. - Traditional view of branding - Brand is controlled by company - No mention of consumer - Brand's purpose is to identify source of product 2. Reputation: A brand is a set of mental associations held by the consumer, which add to the perceived value or meaning of a product or service - View developed in recent decades - Brand is generally out of company's control - Brand's meaning is assigned by consumer - Consumer can be influenced by many sources
Marketing definitions
1. the activity, set of institutions & processes for creating, communicating, delivering & exchanging offerings that have value for customers, clients, partners & society at large. 2. Marketing is the process by which companies create value for customers & build strong customer relationships to capture value from customers in return. 3. Marketing is the performance of activities that seek to accomplish an organization's objectives by anticipating customer or client needs & directing the flow of need-satisfying goods & services from producer to customer or client. 4. Marketing is the process of getting the right product or services to the right people, at the right price, at the right time, using the right channels, & with the right promotion.
POD vs. Reason to Believe
A Point of Difference (POD) is a unique feature or benefit that sets a product, service, or brand apart from its competitors, highlighting why a consumer should choose it. In contrast, a Reason to Believe (RTB) is the evidence or justification that supports the claim made by the POD, providing consumers with credible reasons to trust that the product or service will deliver on its unique promises. While the POD articulates what makes an offering distinct, the RTB offers the proof to substantiate that distinction.
BPS vs. Mission statement
A brand positioning statement defines how a brand wishes to be perceived in the market relative to its competitors, focusing on its unique value and target audience, whereas a mission statement outlines the company's purpose, core values, and overarching goals, focusing on its intentions and guiding principles
Mission Statement
A brief description of what a firm exists to do: "What business are we in?" - Usually developed by senior leadership team and revised by them periodically to reflect evolution of business environment - Intended to have an extended shelf life A good mission is concise, clear, Inspiring, Core Purpose-focused, Timeless, Readily accessible Benefits: - Clarity of purpose - Guidance for decision-making - Motivation and engagement - Cohesion and alignment - Attracting talent Stakeholder trust Common business objective topics: - Productivity - Innovation - Time to market - Employee engagement - Quality and reliability - Sustainability
What is marketing research
A set of techniques and principles for systematically collecting, recodring, andalyzing and interpreting data that can aid decision makers involved in marketing goods, services or ideas.
Marketing Strategy
A strategy is a comprehensive plan designed to achieve specific goals - Involves making choices (requiring trade-offs) among several (typically good) options. - With strategy, you communicate the actions you'll take and investments you'll make (as well as the actions and investments you won't) 3 Key Elements: 1. A firm's target market 2. A related marketing mix 3. Sustainable Competitive Advantage (SCA)
Perceptual Map
A two-dimensional graphic showing the relative locations that products occupy in consumers' minds—as discovered through marketing research - Structured on two axes, each reflecting a determinant attribute Value: - Attributes most important to customers in distinguishing among brands - How customers or potential customers view brand - How they view competitors - Closest competitors To make a perceptual map: 1. Based on customer insights, select two determinant attributes 2. Develop your survey questions: - Scope of questions: your own product, competitors' products, ideal product - Types of approaches: rate brands individually, rate brands against each other 3. Implement your survey 4. Create perceptual map of competing products (or your product, if it exists) 5. Create perception map of consumers' ideal points 6. Combine competing products and ideal points maps: look for ideal points without competing rivals 7. Select your product position
Positioning
Actions that marketers take to influence consumers' perceptions of their product relative to competing products
brand image
Actual associations embedded in memory Tool: Advertising and Promotion: Through targeted advertising campaigns and promotional efforts, brands can shape their public perception and reinforce desired messages about their products or services.
Evaluative Criteria
All features and benefits that a consumer considers as relevant to their decision
What are several technological developments, and how should marketers respond to them?
Artificial Intelligence (AI) and Machine Learning: Marketers can utilize AI-powered tools for customer segmentation, predictive analytics, chatbots for customer service, and personalized recommendations Big Data and Analytics Marketers should invest in robust data analytics tools to collect, analyze, and interpret data effectively Social Media Platforms and Influencer Marketing: Marketers should actively engage with consumers on social media platforms
When presenting the research
Audience is often senior leaders: -Be prepared with facts and figures -Meet with the boss 1 on 1 before he addresses the board -Be understanding of any emotional attachment to a product or line
Important names, dates, and key developments during the four eras of marketing
Before 1860s: "Simple trade era" - people produced what they consumed or purchased it in local general store 1860s- 1920s: Civil War and 2nd Industrial Revolution - Production-oriented - Primary focus on producing & distributing standardized goods efficiently & at low cost - new national trademark laws 1920s-1950s: WWI and Great Depression to WWII - Sales oriented - Firms stepped up ads as consumers couldn't afford products - Introduction of Radio and TV into advertising 1950s - 1990s: WWII to Rise of new tech enabling customer interaction and tracking - Market-Oriented - Return of consumer demand as soldiers returned home - Firms had more sophisticated manufacturing & research capabilities - Rise of corporate marketing departments, academics - "Marketing concept": focus on consumers' needs before designing, producing 1990s - Present: Rise of new tech enabling customer interaction and tracking to Prevalence of digital marketing - Value-Based Marketing - New digital tech & social media: customer data gathering (& privacy concerns) - Two-way communication - Relational orientation - Personalization, customization, experiences - Influencers, experiences - Broader, societal focus, & brand activism
Brand Equity
Brand equity = Price of branded item - Price of generic alternative Also: Brand equity + Brand awareness + Perceived value
Cumulative Annual Growth Rate
CAGR = [(Ending value / Beginning value) ^ (1 / Number of Years)] - 1 - Helps assess pace at which business is expanding or contracting - Provides a smoothed, annualized growth rate over a specified period Ending value: value of metric at end of period you're measuring Beginning value: value of metric at start of period Number of years: number of years over which growth has occurred
Customer Lifetime Value Formula
CLV = [ (monthly profit) X (customer lifetime in months) ] - (acquisition cost) where customer lifetime in months = 1 / monthly churn rate
Capacity Utilization
Capacity utilization = Units produced/Total capacity possible
Churn Rate
Churn rate is the percentage of customers who stop using a product or service within a specific period.
Quantitative data
Collects numeric data that can be subjected to statistical analysis Uses structured questions or experiments Often occurs after qualitative research to further quantify themes Larger sample size
brand identity
Combination of name, logo, symbols, design, packaging, and image of associations held by consumers
What are the elements of the immediate environment? What are things a marketer would want to explore when analyzing each of these elements?
Company capabilities By focusing on their strength a company can develop and incorporate the skills or products they have mastered into new products as the market changes Competitors Companies can target competitors and show how their products are worse and mock their methods Corporate partners Companies can partner with other companies to make one product if other companies are expert in a particular aspect of the product Physical Environment Products are influenced by the physical environment Concerns about adverse changes to the environment can lead to bad publicity Firms are more frequently engaging in sustainable practices
What are the four types of marketing analytics?
Descriptive, Predictive, Prescriptive, Active
Key social trends
Efficient use & distribution of food -Message around waste reduction, e.g., food kits -Ensure transparency around food supply chain; use it as marketing point -Emphasize how product can make food prep more efficient Promote local sourcing Health & wellness -Emphasize nutritional benefits, e.g., low in sugar, fat, sodium; high in fiber,essential nutrients, probiotics -Encourage consumers to share their successful health journeys -Invest in content marketing to educate audience about the importance of healthy lifestyle Sustainability -If product uses eco-friendly packaging, make it a focal point of marketing -Showcase initiatives to reduce company's carbon footprint -Partner with environmental organizations
Marketing Plan
Elements: - Analysis of current marketing situation - Firm's opportunities and threats - Marketing objectives - Marketing strategy specified in terms of four Ps - Detailed action programs with schedules - Projected income (and other financial) statements
SWOT analysis
Evaluates current state of organization and informs strategic decisions for future; Helps businesses understand their competitive position and improvement areas SWOT = Strengths(internal), weaknesses, opportunities(external), threats Step 1: Internal assessment (Strengths and weaknesses) Identify the organization's internal strengths and weaknesses—typically through brainstorming sessions, surveys, and interviews with key stakeholders - Strengths: Industry growth • Technological advancements • Changing consumer trends • Partnerships and collaborations - Weaknesses: Competition • Economic downturn • Changing technology • Regulatory challenges Step 2: External assessment (Opportunities and threats) Identify external opportunities and threats—typically through market research, competitive analysis, and monitoring industry trends Step 3: SWOT matrix Create a SWOT matrix with four quadrants and populate matrix with identified factors, placing them in the appropriate quadrant Step 4: Analysis and strategy development - Analyze relationships between factors in each quadrant, considering how strengths can be leveraged to exploit opportunities, how strengths can be address to mitigate threats - Use the analysis to develop strategic recommendations, action plans, and marketing strategies
Key elements of a marketing research report
Executive summary Body of report -Research objectives -Methodology -Detailed findings Conclusions Limitations Appropriate supplemental tables, figures and appendices
Point of Parity (POP)
Features shared with other brands - They represent necessary—but not necessarily sufficient—conditions for brand choice - Easier to achieve than points of difference
Onlyness Test
For Brand Positioning Statement Our (offering) is the only (category) that (benefit)
Value of Branding
For Consumers: - Strong brands can simplify the decision-making process by narrowing down choices, reducing cycle time, cost and effort - Brands can provide signals of quality, reliability and consistency, reducing a variety of risks: Social (people may laugh at your choice), Financial (you didn't get what you paid for), Physical (harmful side effects), Performance (product malfunctions a lot, requiring repairs), Psychological (product doesn't align with your values) - Brands help consumers project desired self image, live personal values, form relationships with other users of brand For Companies: - Strong brands enable firms to differentiate themselves from the competition - Strong brands enable firms to command higher prices compared to generic or lesser-known alternatives - Strong brands serve as a platform for entering new product categories and markets - Brands help firms attract top talent and enhance employee retention
Marketing Mix
Four Ps Product = anything of value to a consumer & that can be offered through a voluntary marketing exchange Price = everything a buyer gives up—money, time, energy—in exchange for product Place = all the activities necessary to get right quantity of right product to right customer when customer wants it. It's known supply chain management, which aims to integrate all players into seamless process. Also known as channel management. It's often overlooked because it happens behind the scenes. Promotion = Activities undertaken to communicate the benefits and value of the product or service to the target market and persuade them to make a purchase
Marketing Mix
From a large array of options, marketers must select the right "mix" that'll best appeal to their target customer segment Promotion: - Communicating value - Business to business (B2B): Accenture & Microsoft - Business to consumer (B2C): Retailers - Consumer to consumer (C2C): Online marketplaces: eBay Product: - Anything offered through voluntary exchange - Creating Value: To create value a product must offer some good, service, idea, etc.. that will benefit the user somehow - Goods are physical objects that can be used to get a result, no one buys a drill just to have a drill, you are buying the ability to create a hole or screw something in with ease - Services are intangible customer benefits that are produced by people or machines and cannot be separated from the producer. Place: - Delivering Value - How the product gets to the customer, like a storefront or kiosk at a mall, placement is key to how many customers interact with the business and eventually purchase Price: - Capturing value - Must be chosen carefully to maximize profits, if it is too high no one will buy, too low you won't make money This is called a mix because good marketing requires the proper use of all of these to create value and target their consumers best
Qualitative data
Gathers non-numeric, descriptive data Uses broad, open-ended questions Data produced are often stories and representative quotes from customers
How would a marketer's tactics in marketing to Gen Z differ from those in marketing to other generational cohorts? In what key ways do generational cohorts differ?
Gen Z is more responsive to short form marketing (tiktok), visual story telling, and companies supporting social justice issues like diversity Other generational cohorts are more susceptible to longer format media.
Bain's Elements of Value model
Hierarchy of 30 elements of value; based on Maslow's Hierarchy of Needs - Elements reside in four levels or elements, each representing different type of value (Functional, Emotional, Life-changing, Social Impact) A brand delivers on an element if at least 40% of respondents rate the brand 8 or higher (on 10-point scale) for that element. - - For consumer products, most brands meet threshold for functional needs of quality & sensory appeal. - Brands that deliver more than four elements of value to consumers experience higher growth: revenue, household penetration, repurchase rate.
Heurisitcs
Humans tend to want to limit cognitive load - Cognitive load = mental effort required to process information, solve problems, or complete tasks - Humans have natural tendency to conserve cognitive resources and minimize mental effort - They are like mental shortcuts our brains use to quickly solve problems or make decisions Common Heuristics: - Familiarity Consumers assume that a familiar brand is trustworthy, reputable, or of higher quality; Marketing Implication: Implement ad campaigns that focus on repetition and consistency to increase familiarity - Affect: Consumers use their immediate emotional responses to make rapid judgments; Marketing Implication: Craft marketing messages that evoke positive emotions; incorporate sensory appeal through packaging, pleasant scents - Anchoring: Consumers rely heavily on first piece of information encountered when making decisions; Marketing Implication: Present higher-price option initially to make subsequent option seem more affordable; present discounts in relation to higher initial price - Scarcity: Consumers place value on a product that is perceived as rare, limited or in high demand; Marketing implication: Create time-limited promotions; display notifications about low stock levels; incorporate countdown timers; offer waitlists - Social proof: Consumers look to others to guide their own purchase decisions; marketing implication: Showcase genuine customer reviews; display ratings and stars next to products; display number of customers who have purchased product
What are different examples of secondary research?
Internal: -Customer lists (incl. demographics) -Sales information (quantity, frequency) -Return information -Customer service complaints -Feedback from customer meetings -Past research projects External: -Panel data - Scanner data
Panel Data
Involves tracking same set of individuals, households, or entities over a period to collect data on their behaviors, preferences, or attitudes; provides insights into how these factors change over time
sustainable competitive advantage
It's a unique and enduring set of strengths and capabilities that allows a business to consistently outperform its competitors over an extended period - Represents a superior and lasting position within its industry, creating a barrier that makes it difficult for competitors to replicate it or surpass Benefits: - Profitability § Market share - Customer loyalty - Talent attraction and retention - Barriers to entry - Resilience - Access to capital - Partner engagement
What are the advantages of secondary research over primary research?
Its cheaper More accsesible Not time consuming Could have a larger number than you were capable of collecting
In what ways might a country or region differ from another country or region, and what would be the implications for marketers?
Language, food preference, seasonal changes, economic disparities, Urban vs. rural markets, Sports and entertainment culture Marketers would need to adjust the language or slang Marketers would need to price strategically Address challenges like congestion, convenience and access to products, (parking lots vs public transport)
High vs. Low Involvement Decisions
Low-Involvement Decisions: These are consumer choices characterized by minimal research and emotional investment, often involving routine purchases of low-cost items with limited post-purchase evaluation. High-Involvement Decisions: These decisions require extensive research and high emotional investment, typically associated with infrequent, high-cost purchases that significantly impact the consumer's lifestyle, with a thorough post-purchase evaluation. For Marketers: If High Involvement: - provide in-depth product information - educate consumers about your product category - highlight product differences - offer interactive demos and trials - leverage testimonials and case studies - engage customer reviews If low involvement: - use eye catching packaging (e.g., bright colors, attractive graphics, clean layout) - use concise and clear messaging to communicate benefits, features, value - encourage impulse buying by highlighting scarcity and time-limited deals - place product at eye level or in high-traffic areas to increase visibility
Consumer Benefits Ladder
Lowest rung: Key Product Features - Physical characteristics of the product (4k camera in a phone, sunglasses shade eyes from the sun, etc.) Middle Rung: Functional benefits - Customers aren't necessarily interested in the product itself, but in the benefits it provides - Marketers should focus on understanding & fulfilling customer needs rather than just selling products or their features Highest rung: Emotional benefits - The emotions a product induces (happiness, confidence, self-expression, peace of mind, inspiration, etc.)
How should marketers respond to the principles that: every exposure to a brand creates a new "memory node" for a consumer? repeated experiences involving that same node strengthen the node's link to the brand?
Marketers should work to curate every interaction with the brand so that every interaction is positive and create consistency of experience to strengthen nodes
What are key principles that marketing researchers need to keep in mind?
Marketing research should be: Objective—it provides unbiased information that reflects true nature of market or consumer behavior Accurate and consistent—it should correctly reflect the phenomenon being studied Relevant—it should address specific decisions or problems at hand Timely—market conditions, consumer preferences, and competitive landscapes change rapidly Ethical—it should respect privacy laws and the rights of participants Vetted by cost-benefit analysis—marketing research involves costs, including time, money, and resources, so marketers need to conduct a cost-benefit analysis to ensure that the value of insights gained outweighs the costs of obtaining them
Customer Satisfaction
Measures how satisfied customers are with a company's products It's crucial because it directly influences customer loyalty and advocacy How to calculate: - Generally based on survey data and expressed as rating - Satisfaction levels usually reported on a scale 1-5 - Calculate satisfaction as a percent of people that replied 4 or 5 out of the total replies to a survey Things to increase satisfaction and reduce buyer's remorse: - Set realistic expectations about product and delivery cycle time - Demonstrate correct use - Provide satisfaction guarantee - Encourage customer feedback - Provide frequent communication about status of delivery - Offer robust return policies - Send congratulation, thank-you letters - Sew tags into garments
Conversion Rate
Measures the % of visitors who complete a desired action (typically a purchase) out of the total # of visitors Formula: # of conversions/total visitors x 100 Tactics to increase conversion: PHYSICAL STORE - Clear signage and wayfinding - Product aisle locations on website - Greeters who can provide directions ECOMMERCE SITE - Optimized website speed and performance - Clear and compelling product descriptions - User-friendly interface
product line depth
Number of product items in a product line
product mix breadth
Number of product lines offered
Ansoff Growth Matrix
PRIMARY USE: Devise strategies for future growth Market Penetration: Price adjustments, marketing campaigns, loyalty programs, product improvements, cross sell, new uses for product (Least risky) Product Development: R&D investment for new products, acquisition of competitor (Riskier) Market Development: Expansion into new geography region, demographic group, or distribution channels (Riskier) Diversification: Entrance into new demographic segments or regions with new products (Riskiest)
Strategic Marketing Planning Process
Planning Phase: Step 1: Define business mission and objectives Step 2: Conduct a situation analysis (SWOT) Implementation Phase: Step 3: Identify and Evaluate Opportunities (Segmentation, Targeting, Positioning) Step 4: Implement Marketing Mix (4 Ps) Control Phase: Step 5: Evaluate performance using marketing metrics
When collecting data, what are the problems that could occur and thus affect the validity of research results?
Potential problems -Difficulty in finding the right people to survey -What people say they'll do isn't always what they'll end up doing -A researcher's own biases could influence how responses are documented or interpreted -Some respondents don't interpret our questions like we intended -It's challenging to know how much data is required
Brand "sets"
Product category: a group of similar products that share related characteristics, e.g., passenger vehicles, chocolate chip cookies, resort hotels Universal Set:All brands in the produt category Evoked set: known brands Consideration set: acceptable brands Purchased set: brand purchased from
Product line
Product line = Groups of associated items, such as those that consumers use together or think of as part of a group of similar products
What kind of questions can market researchers ask?
Qualitative (Unstructured)-Open-ended questions, allowing respondent to answer in own words, but more taxing and may reduce response rate Quantitative (Structured)-Closed-ended questions for which discrete set of response alternatives is provided for respondents to evaluate
Common metrics for marketing performance
Revenue, Customer satisfaction, Customer acquisition costs
Value of BCG, Ansoff, and SWOT
SWOT: Identify opportunities to vet through Step 3: Segmentation, Targeting, and Positioning Ansoff: Assess level of risk associated with new opportunities and choose ones that align best with overall goals, resources, and risk tolerance BCG: Allocate limited marketing resources among existing products and the new opportunities identified through SWOT
What is the typical flow of a marketing research project?
Secondary Internal Secondary External Free Secondary External Paid Primary Qualitative Primary Quantitative Primary Qualitative
How is secondary research different from primary research?
Secondary data: - Data that already exists, having been produced for some other purpose and by someone else Primary data: - Data collected by firm for first time to address specific needs identified by firm
Situational Factors
Situational factors influencing purchase = external circumstances or conditions that can influence how consumer evaluates and selects product Key situational factors: - Physical environment: store atmosphere (layout, lighting, temperature, music, scents), crowding - Location and distance: proximity and convenience, parking - Consumer's state of mind: fatigue, sickness, mood (Culinary Institute of America's "HALT")
What are the elements of the macroenvironment?
Six key macroeconomic factors - culture, demographics, social issues, technological advances, economic situation, and political/regulatory environment (CDSTEP)
BCG Portfolio Analysis or Matrix
Steps: 1. Identify products or business units to be evaluated 2. Collect relevant data for each product or business unit, including relative market share, market growth rate, and profit margin 3. Plot products on matrix 4. Analyze and interpret 5. Develop strategies Strategies for each quadrant: - Stars: Stars generate substantial revenue and have potential to become future cash cows if growth continues § They require significant investment to maintain growth - Cash Cows: Cash cows are mature and generate consistent, high profit margins; Growth limited, but steady stream of cash can be reinvested elsewhere Question Marks: Question marks have potential to become stars if they gain market share, but they also require substantial investment; Considered risky, and may or may not become profitable Dogs: Dogs generate low profits and may even result in losses; May require a decision to divest or minimize investment
What are some examples of unethical practices in marketing research?
Sugging means "selling under the guise of research." Marketer falsely pretends to be a researcher conducting a survey, when in reality they're simply trying to sell the product in question. Recording without consent or a warning
What are the strengths and risks of each type of quantitative research method?
Surveys - Risks: May suffer from response biases; lacks depth of understanding the "why" behind responses Strengths: Can reach a wide audience quickly and at a relatively low cost Experiments - Risks: Laboratory settings may not reflect real-world conditions Strengths: Control over variables allows for clear causal inferences Neuromarketing - Risks: Accuracy, Ethical concerns, cost Strengths: Offers a scientific basis for marketing strategies and investments
product mix
The complete set of all products offered by a firm
Determinant attributes
The most important evaluative criteria related to the actual choice made
What are the "triple constraints in project management," and how do these constraints relate to marketing research?
Triple constraints in PM Speed: fast - fast market research will help you change the marketing mix sooner and begin making profits Quality: high quality - high quality MR will provide better insight into the consumers Cost: cheap (You can choose only 2)
4 Targeting Strategies
Undifferentiated: Zero segments: Everyone could be potential user, and benefits are similar for everyone—less $ than diff Differentiated: Two or more segments: Develop different mktg mix for each of many customer groups—lowers risk through diversification Niche: One segment: Focus all energy on on single, primary target market Micro-marketing: Thousands of segments: Leverage technology to deliver individualized messages and products to broad base of customers
Customer Value Equation
Value = Benefits - Costs Customers generally attempt to maximize value: they want the greatest benefit from the lowest possible cost Marketers can increase value by increasing benefits offered, lowering costs, or both
What are the implications for marketers of the 5 Vs of big data?
Volume: Data overload from various sources. Invest in scalable storage and data management systems. Variety: Data comes in structured, unstructured, and semi-structured formats. Use advanced tools for processing diverse data types. Velocity: Data generated at high speeds, requiring real-time processing. Implement technologies for real-time analysis. Veracity: Accuracy and reliability of data vary, leading to potential errors. Ensure veracity through rigorous validation and cleaning processes. Value: Extracting meaningful insights from abundant data is challenging. Employ sophisticated tools and expertise for actionable strategies.
When designing marketing research, what are the questions to be addressed
What information do we want to collect? What are the best methods to collect that information? Who should the participants be? How do we get them to engage? How many do we need?
Willingness to search (%)
Willingness to search (%) = (Number of customers willing to delay purchases, change stores, or reduce purchase quantities to avoid switching brands / Number of customers who desired the product and were willing to pay for it) X 100
What are some examples of recent economic and legislative changes impacting marketers?
With rising interest rates, people marketing houses are having a hard time selling and need to find new ways to market Covid 19 has made online marketing much more effective
Segmentation
an approach for dividing a potential market into distinct and separate clusters of customers with shared characteristics, needs, values - It's built on market research, which generates customer insights Why is it Important? - based on view that customers in different segments have differing characteristics, needs, values - As a result, they behave differently when making a purchase decision, so marketing mix should be developed with their preferences in mind Its ultimate aim is to identify group(s) of customers that'll generate the most profit for your company
Brand Elements
trademarkable devices that identify and differentiate the brand (help make-up brand identity) - Brand name: Spoken component of branding, often capturing product's central theme or key associations in compact, economical fashion; Most difficult element for marketers to change because associations anchor to the name Considerations for naming: Shorter names are easier to encode, Easy-to-pronounce names enable word of mouth - Brandmark (Logo, symbol mark): Visual element of branding, Indicates origin, ownership or association, Range from corporate names written in distinctive form to abstract designs that may be completely unrelated to the word mark, corporate name or corporate activities, Can be easily adapted over time to achieve more contemporary look - Characters: Humans more likely to form relationship when brand has a character; Characters take on human or real-life characteristics, enhancing likability; Because often colorful & rich in imagery, can be attention getting & useful for brand awareness; May be transferred relatively easily across product categories; drawbacks: must be updated to avoid becoming irrelevant and dated - Slogans: A short, simple, catchy phrase — typically eight words or less — that: showcases a benefit of your product, conveys an emotion, gives a promise for your commitment, is funny, creates a memorable way to remember your brand name; They promote brand recall, helping a brand stand out in marketplace - Jingles: Musical messages written about the brand; Extended musical slogans, so they're brand elements; Not as transferable as other elements; Communicate brand benefits but convey meaning in a non-direct and abstract fashion - Packaging - Sounds - Scents - Colors: can convey meaning - Iconic imagery - Typeface: SERIF FONT Denoted by small feet at bottom of individual characters
Point of Difference (POD)
unique attributes or benefits of a product, service, or brand that set it apart from its competitors in the eyes of the target market. - A strong POD is crucial for a brand to differentiate itself in a crowded market, highlighting why consumers should choose it over other options - This differentiation can be based on various factors such as quality, features, price, customer service, or innovation. - Identifying and communicating a compelling POD is essential for effective positioning and can significantly influence consumer preference and loyalty. - PODs must be relevant to your target consumer — "we're the only bank to paint our parking lots green" — as they must influence the consumer to select your brand
associative network memory model
views memory as a network of nodes & connecting links Nodes = stored information or concepts Links = strength of association between nodes Marketers look to create strong, positive nodes about their brands, and make links to positive associations about the brand
Brand Positioning Statement
what marketers want consumers to perceive about their products 4 elements: Target market :To whom do we want to sell our product? What are they seeking, or what do they need? Product category: What type of product is it? Who are our competitors? - Category determines POPs (absolute minimal requirements to compete in category) - Product category identifies industry in which your brand competes Point of difference: How are we different from our competitors? - Attributes or benefits that consumers strongly associate with brand, positively evaluate, and believe that they could not find to same extent with competitive brand Reasons to believe: What specific proof do we have? - Compelling proof (evidence) that the brand can deliver promised benefits § Usually consists of features and attributes inside a product, but can also be external proof
