MKT 300 Test 2
how can marketers try to minimize cognitive dissonance?
"try our product for three months. Aren't satisfied? money back guaranteed!"
growth
(if you can make it here) sales rise quickly -Competitors begin to enter -Marketing's job is to strengthen market share, position the product well, build adoption and loyalty -Begin to show profits, although are likely promoting the product heavily -Examples? Smart speakers
differences from marketing to B2B markets vs consumers or households
- a company that markets to another company must be aware of how its product will affect other firms in the marketing channel, such as resellers and other manufacturers -business products can also be technically complex, and the market has sophisticated buyers -buyers have to justify purchases to other members of the organization
the opportunities for US based businesses to expand globally
-96% of the world's population and two thirds of total purchasing power are outside the US- big opportunities to export goods and services -technological and communication advances have made it easier -more alternatives for shipping, delivery, customer service networks
introduction
-First appearance in the marketplace -Sales start at zero and you are losing money- marketing requires investment -Can we get to the next stage? Typically only 15-25% of new products ultimately succeed -Examples? Self-driving cars
legal obligations of a brand owner to protect itself in order to keep other from using its brand for their own purposes
-Marketers must guard against allowing a brand name to become a generic term because such terms cannot be protected as exclusive brand names -Marketers protect their brands through registered trademarks and service marks
decline
-Sales begin to fall, perhaps rapidly -The product is no longer in high demand or seen as distinctive -Can fall victim to newer technologies, social trends, product substitutes, etc -Marketing tends to pull resources away from declining products
maturity
-Sales begin to level off and then decline -Product might be highly profitable (cash cow) -Intense competition for market share -Marketing focuses on promotion, distribution, extensions -Examples? Quaker Oats, Coca-Cola classic
deterministic approaches to cross device targeting
-Uses unique identifier to determine that 2 or more devices are being used by the same person (email, login credential, etc) -Means that a user has entered their information on multiple devices -More relevant to "walled gardens" of companies like facebook or google
general benefits from global expansion
-expand the customer base -reduce risks and dependencies -extend product life cycles -increase profits -decrease (some) costs by scaling operations
benefits of digital marketing
-new opportunities to interact w consumers -target more precisely with greater reach -integrate with other promotion channels (omni-channel marketing) -Co-create content with consumers -Shorten the purchase cycle
risks and challenges to global expansion
-technology to support international expansion -cultural and language differences -international financing, tariffs, embargoes -transportation and logistics -differences in laws and customs -compliance with regulations and trade agreements -navigating economic and political forces -understanding local markets
how do trading companies operate
-they do not manufacture anything -they buy products in one country and take title -they store products, deliver them, and perform activities to help build demand in the targeted foreign country or countries -their customers are typically retailers and shop owners -they usually want "exclusivity" -represent a lower-risk way for companies to get involved in international marketing
two reasons that consumer-generated digital information is increasingly important
1. consumers want to be publishers too 2. consumers tend to trust other consumers over corporations
the five potential steps of the consumer's decision-making process
1. recognizing a problem 2. search for information 3. evaluation of alternatives 4. purchase 5. post purchase evaluation
why do marketers use cross device targeting
6.6 network-connected devices per person today smartphones, tablets, laptops, desktops, game consoles, smart TVs, fitbits, etc
cognitive dissonance
A buyer's doubts shortly after a purchase about whether the decision was the right one a buyer who is experiencing cognitive dissonance may attempt to return the product or seek out positive information (reviews) to justify choosing it
limited decision making
A consumer problem-solving process used when purchasing products occasionally or needing information about an unfamiliar brand in a familiar product category cost: low to moderate search effort: little to moderate time spent: short to medium brand preference: several
embargo
A government's suspension of trade in a particular product or with a given country
product line
A group of closely related product items viewed as a unit because of marketing, technical, or end-use considerations
blacklist
A list of people or products viewed with suspicion or disapproval. some platforms allow for the exclusion of entire categories from ad spends
whitelist
A list of trusted websites you have allowed access to so that searching or surfing the internet is safer. a whitelist will narrow the marketer's ability to reach their audience and possibly make it more expensive- but will ensure no unsavory material is associated with the message
trade character
A representation of a person, animal, or other being that is personified and used to identify a company, brand, or product
straight rebuy purchase
A routine purchase of the same products under approximately the same terms of sale by a business buyer little effort
New Product Development Process
A seven-phase process for introducing products: idea generation, screening, concept testing, business analysis, product development, test-marketing, and commercialization
Asia-Pacific Economic Cooperation (APEC)
An alliance that promotes open trade and economic and technical cooperation among member nations throughout the world represents approximately 39% of the worlds population, 60% of the worlds GDP, and nearly 47% of global trade
Southern Common Market (MERCOSUR)
An alliance that promotes the free circulation of goods, services, and production factors, and has a common external tariff and commercial policy among member nations in South America represents 2/3 of south americas population 3rd largest trading bloc
European Union (EU)
An alliance that promotes trade among its member countries in Europe in 2020 the United Kingdom exited the EU (Brexit)
selective distortion
An individual's changing or twisting of information that is inconsistent with personal feelings or beliefs
New-Task purchase
An organization's initial purchase of an item to be used to perform a new job or solve a new problem important, lots of effort
impulse buying
An unplanned buying behavior resulting from a powerful urge to buy something immediately
low involvement decision
Decision where you pay less attention; Peripheral processing; Characteristics: low cost, standardized, not important, low risk; Buying out of routine/habit; (gum)
when a government suspends trade in a particular product or with a given country, it is known as a(n) __
Embargo
The roles of the FDA and FTC in regulating labels and packaging
FDA: the nutrition labeling act of 1990s requires the FDA to review food labeling and packaging for nutrition content, label format, ingredient labeling, food descriptions, and health massages FTC: requires that all of a product's components by made in the United States if the label says "Made in USA"
buyer's remorse
Feeling regret or concern after making a large purchase most likely to arise when a person recently bought an expensive, high involvement product that is found to be lacking some of the desirable features of competing brands
innovators
First adopters of new products
probabilistic approaches to cross device targeting
Hypothesis that a certain individual is probably using specific devices Based upon info like IP addresses, device make and model, cookie data from websites Not as accurate
producer market
Individuals or business organizations that purchase products in order to make a profit by using them in producing other products or in their operations
evaluative criteria
Objective and subjective product characteristics that are important to a buyer
information inputs
Sensations received through sight, taste, hearing, smell, and touch
influencers
Technical personnel who help develop product specifications and evaluate alternatives
Brexit
The British Exit from the European Union BREXIT=BRITISH EXIT
control
The customer's ability to regulate the information they view as well as the rate and exposure to that information ex: consumers use kayak.com to discover the best travel deals
users
The organizational members who frequently initiate the purchase process and/or generate purchase specifications, use the product, and evaluate product performance relative to the specifications
selective exposure
The process by which some inputs are selected to reach awareness and others are not
extended decision making
a consumer problem-solving process employed when purchasing unfamiliar, expensive, or infrequently bought products product cost: high search effort: extensive time spent: lengthy Brand Preference: varies, usually many
consideration set
a group of brands within a product category that a buyer views as alternatives for possible purchase
reference group
a group that a person identified with so strongly that they adopt the values, attitudes, and behavior of members membership, aspiration, dissociative
quota
a limit on the amount of goods an importing country will accept for certain product categories in a specific period of time
brand
a name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from other marketers
individual branding
a policy of naming each product differently
product item
a specific version of a product that can be designated as a distinct offering among an organization's products
import tariff
a tax levied by a nation on goods imported into the country class: "a duty levies by a nation on goods bought outside its borders and brought into the country"
remember Kellogg's Frosted Flakes? Tony the Tiger is legally considered to be:
a trade character
deciders
actually choose the products
you go on kayak.com to search for the best deals on flights for spring break next year. A few hours later, you go back to kayak.com; the site recognizes who you are. This is an example of __
addressability
Adrienne has gone to the store to shop for a new backpack. She looks for the same brand she has always bought in the past but notices that the backpack is now available in a variety of new colors. The backpack has undergone a(n)... modification
aesthetic
phase out
allows a product to decline without a change in marketing strategy
licensing
an option for growing a brand without direct investment of assets in the foreign country the licensor (from domestic country) receives commissions for royalties from the licensee (the owner of a foreign operation)
government market
at the federal, state, county, or local level buy goods and services to support their internal operations and provide products to their constituencies; they advertise their product needs through releasing bids or negotiated contracts
consumer production adoption process
awareness interest evaluation trial adoption
family branding
branding all of a firm's products with the same name or part of the name
routinized response behavior
buying frequently purchased, low-cost items that require very little search-and-decision effort cost: low search effort: little time spent: short brand preference: more than one is acceptable, although one may be preferred
early adopters
careful choosers of new products
functional modifications
changes affecting a product's versatility, effectiveness, convenience, or safety ex: Kraft begins changing the packaging of its snack foods to make them easier for elderly customers to open
quality modifications
changes relating to a product's dependability and durability ex: phones becoming waterproof
aesthetic modifications
changes to the sensory appeal of a product ex: Gap introduces a popular summer T shirt in a new color
gatekeepers
control the flow of information to and among the different roles in the buying center
three components of the total value of a product
core, supplemental benefits, symbolic/ experiential
what is in a line extension?
could be any of new flavors, new colors, different ingredients, different sizes, new packaging, functional improvements
third party cookies
created by a domain other than the one the user is visiting generally used for marketing and advertising purposes as they: -monitor the user's navigation between different sites -direct retargeting ads, according to past behavior -deliver ads to various websites in an optimized way -third party cookies are already planned for phase out in some browsers, including google chrome
first party cookies
created by the same website the user is visiting they collect data such as language and payment method preferences form information like username and password products stored In cart
what are cookies
data collected by a website and sent to the browser, with each user's browsing history and interactions
joint ventures
deeper partnerships between a domestic firm and a foreign firm or government Popular in industries that require large investments (oil and gas, auto production) Also used when governments restrict foreign ownership
what is cross device targeting
delivering advertising to consumers across their multiple platforms and devices
framing the alternatives
describing the alternatives and their attributes in a certain manner
Recently the culverhouse college of business was mentioned in a US news and world report article as among the best in the country. This is an example of:
earned media
United States-Mexico-Canada Agreement (USMCA)
eliminated virtually all tariffs, made it easier fo US businesses to invest in Mexico and Canada, provided protection for intellectual property, required equal treatment of US firms in both countries replaced NAFTA in 2020
product deletion
eliminating a product from the product mix when it no longer satisfies a sufficient number of customers when a dying product loses favor with customers, the negative feelings may transfer to some of the companies other products
possible influences on the business buying decision process
environmental (competitive factors, economic factors, political factors, legal and regulatory changes, and sociocultural issued) organizational (objectives, purchasing policies, resources, buying center structure) Interpersonal (cooperation, conflict, power relationships) individual (age, education level, personality, tenure, position in organization)
when Norma is considering several features for a new vehicle (such as safety, fuel efficiency, and space), these features are known as:
evaluative criteria
run out
exploits any strengths left in the product
supplemental benefits
extra attributes, perks (park of what makes it different)
franchising
form of licensing that applies to an entire business model the franchisor grants a franchisee the right to market its product, using its name, logo, methods of operation, advertising, products, etc
core product
fundamentally utility (what it does)
high involvement decision
greater attention, deeper processing, develops strong attitudes and purchase intentions extensive effort in the decision making process for more expensive, important purchasing decisions (cars)
contract manufacturing
having a foreign firm produce some specific volume of your product, according to your specifications Most contract manufacturing carries the domestic firm's name Sometimes can involve "private label" (bearing the store's brand or name) or "white label" manufacturing
depth of product mix
how many individual product items to offer within each line
social proof example: O-power company's marketing strategy
how would you market energy conservation? Most of your neighbors are saving energy every day!!
how do competitors "jam"
increasing their own ads and promos lowering prices offering special incentives copying the product in the testing stage and rising to introduce a similar product
situational influences are..
influences that result form circumstances, time, and location that affect the consumer buying decision process can influence the buyer during any stage of the decision making process and may cause the individual to shorten, lengthen, or terminate the process
categories of product adopters
innovators, early adopters, early majority, late majority, laggards
information search
internal search (memories) or external search (internet, family)
four stages of a products life cycle
introduction growth maturity decline
what is the Foreign Corrupt Policies Act
it makes it illegal for US firms to attempt to make large payments or bribes to influence policy decisions of foreign government
Milo is a product manager at Hershey. He learned that one of his competitors, the Mars candy company, is engaging in test marketing a new candy bar. He decided to increase promotional activity, including coupons with significant price reductions, in the test markets in order to ____ the test program
jam
institutional markets
made up of organizations with charitable, educational, community, or other nonbusiness goals (churches, hospitals, fraternities, sororities, charities, private colleges)
customization
marketing mixes according to cultural, regional, and national differences
an effective test market...
must have a good sample of the average consumer in the target market
product line extension
new products, same category. Typically similar to existing products and under same brand
modified rebuy purchase
new task purchase is changed after a few weeks or a straight rebuy purchase is modified
psychological influences
operate on buyer's internally, but are strongly affected by external social forces themselves
six categories of psychological influences
perception motivation learning attitudes personality and self-concept lifestyles
situational influences
physical surroundings social surroundings Time purchase reason buyer's mood and condition
five categories of situation influences
physical surroundings social surroundings time perspective reason for purchase buyer's momentary mood and condition
four categories of business markets
producer reseller government institutional
apple markets phones, iPads, watches, MacBooks, and other product lines. Taken together, these lines represent Apple's ..
product mix width
three major types of product modifications that managers consider
quality, functional, aesthetic
business (organizational) buying decision process
recognize problem, develop product specifications to solve problem, search for and evaluate possible products and suppliers, select product and supplier and order product, evaluate product and supplier performance
selective retention
remembering information inputs that support personal feelings and beliefs and forgetting inputs that do not
A Business Market (or business-to-business or B2B market) buys for one of three purposes:
resale (pass along with markup) direct use in producing other products (use it to make other things) use in general daily operations (we use it ourselves)
reseller market
resellers are intermediaries (wholesalers and retailers) that buy finished goods and resell them for a profit
social influences
roles family reference groups digital opinion leaders social classes culture and subcultures
benefits of test marketing
seeing how consumers react to the new product and whether it will be profitable during large scale production and distribution
buyers
select suppliers and negotiate terms of purchase and may also be involved in developing specifications ("initiators")
selective nature of perception may result in what two conditions
selective distortion selective retention
the three major categories of influence on the consumer's decision-making process
situational influences psychological influences social influences
later majority
skeptics who adopt new products when they feel it is necessary
you are a marketer for wine and sell it to Publix. Publix takes it, does not change it, and puts it on the shelves. This is an example of __
straight resale
you are a marketer for wine and sell it to publix. Without changing it, they put it on the shelves. This is__
straight resale
why test marketing can be difficult
test marketing is expensive and competitors may try to interfere (jam) many companies use alternative methods, such as simulated test marketing not all products that are test marketed are launched
brand name
that part of a brand that can be spoken, including letters, words, and numbers
connectivity
the ability of consumers to be connected with marketers along with other consumers ex: Mary Kay offers users the opportunity to sign up for myMK, a system that connects customers with beauty consultants and allows them to develop their own personalized space
interactivity
the ability of customers to express their needs and wants directly to the firm in response to its marketing communications ex: Texas Instruments interacts with its customers by answering concerns and posting updates
accessibility
the ability of marketers to obtain digital info -ex: google can use web searcher done through its search engine to learn about customer interests
addressability
the ability of the marketer to identify customers before they make a purchase ex: amazon installs cookies on a users computer that allow the company to identify the user when the user returns to the website
evoked set
the brands that first come to mind in response to some prompt soap: dove
ideal customer profile
the characteristics of a firm's best customers or the perfect customer set properties of marketing efforts characteristics tailored to a company: business, shipping, product characteristics defined at the organizational (rather than household or consumer) level
globalization or standardization
the development of marketing strategies that threat the entire world (or its major regions) as a single entity- with standardized products, prices, distribution channels, and promotion campaigns for all markets
social proof
the idea that people copy the actions of others inane attempt to emulate behavior in certain situations
laggards
the last adopters, who distrust new products
width of product mix
the number of product lines a company offers
buying center
the people within an organization who make business purchase decisions
perception
the process of selecting, organizing, and interpreting information inputs to produce meaning
product mix
the total group of products that an organization makes available to customers
programmatic ad buying
the use of software to purchase digital advertising, as opposed to the traditional process that involves RFPs, human negotiations and manual insertion orders uses machines and algorithms to purchase display space
early majority
those adopting new products just before the average person
what is a trademark and who issues them
trademark: owner claims exclusive legal protections over brand name US patent and Trademark office
what are trading companies
trading companies link buyer and sellers in different countries
T/F dreaming can make a characteristic seem more important to a consumer and facilitate its recall from memory
true
immediate drop
used when losses are too great to prolong a products life
five primary roles of people within a given buying center
users influencers buyers deciders gatekeepers
digital marketing
using all digital media, including the internet and mobile and interactive channels to develop communication and exchanges with customers
brand extension
using an existing brand to brand a new product in a different product category
what are cross functional "venture teams"
venture team: used entirely to create new products that may be aimed at new markets, combination of product and brand managers, is responsible for all aspects of developing a product
Symbolic or Experiential Benefits
what it means to the buyer
problem recognition
when a buyer becomes aware of a difference between a desired state and an actual condition the speed of consumer problem recognition can be fast or slow sometimes a person has a problem or need but is unaware of it
when is social proof most powerful
when we perceive multiple others that are similar to us
