Principles of Marketing Quiz 1
Describe the steps in the typical B2B Buying Process. What is an RFP, QA process and VPA (Performance Review)?
Problem recognition (what's the problem?), general need description (write up problem), product specification (cost reduction analysis--how to get cheapest prices), supplier search (best vendors), proposal solicitation (buyer invites suppliers to submit proposals), supplier selection (list all suppliers with service quality, reputation, on-time delivery, ethics, communication, and prices), order-routine (tell supplier quantity, deadlines, return policies, and warranties), performance review (review supplier performance) RFP: request for proposal (proposal solicitation) QA process: Quality assurance process, making sure there are no inventory defects and problems--supplier selection VPA: visual performance review
What is a "Product Positioning" map and what does it tell you about how a company wants to work with their target market?
Product positioning map is a conceptual map that graphs consumer perceptions of brands versus those of competing products on important buying dimensions such as luxury v performance (i.e. ruggedness) It shows how the company wants the public to view them versus how the public actually does
A companies' "Value proposition" is written to communicate Brand image to the "intended" target market. What are the key elements of a value prop?
Importance, distinction, superiority, affordability "Why should I buy your brand?" Key elements of a value prop is to give more value for a lower price "More for more, more for the same, same for less, same for much less"
"Targeting" your audience helps a company in many ways. How is it necessary for a Marketing Strategy to have a statement and focus on a target?
Important to focus on a target so company can market efficiently. They save money by staying on target because they are advertising heavily to the group that will actually buy from them instead of investing heavy sums in a general populace who may never use their product.
Johnson and Johnson Co. are often praised for their handling of the Tylenol in 1982 (page 135 in Old Rules). What lessons can be learned from what they did?
In 1982, J&J recalled all of their Tylenol after some of it had been poisoned. This cost the company a lot of money, but it proved beneficial because their customers trusted that if there were any problem with the product, they would be aided immediately. The key lesson to be learned is to constantly focus on relations and safety of your consumers.
How do Business Buyer Behaviors vary in their decision process and decision criteria?
Influences: environmental (economy, supply conditions, tech); organizational (strategy, structure); interpersonal (influence, expertise, authority); individual (age, personality, preferences)
How should Marketing Departments and Public Relations' handle "crisis" situations?
It is imperative that Public Relations and Marketing work together as they are both the external representation of the company. If their missions do not align, then they are presenting the public with a fractured company image. A company must look as put-together in a crisis as possible to strengthen shareholder confidence
Lifestyle might be the most accurate way to study and identify groups. Why is it becoming so very important when you study a consumer behavior market?
It provides a persons whole pattern of acting and interacting in the world. It shows customers values and how they affect buyer behavior. Marketeers look for lifestyle segments with needs the can be served through special products or marketing approaches.
When might a business desire fewer customers over more customers in developing their marketing plans?
It's expensive to have a relationship with lot's of people. Luxury marketing-> I have a higher value with a limited production -> Deutsche Bank only wanting business customers- because few super customers are easier than many little ones.
What different groups or ideas are present in a "Marketing Information Systems"?
MIS help managers use information to create customer value, engagement and stronger customer relationships. A MIS consists of people and procedures dedicated to assessing customer needs, developing the needed information, and helping decision makers use the information to generate and validate actionable customer and marketing insights. The MIS begins and ends with information users - marketing managers, internal and external partners and others who need marketing info and insights. Marketeers can obtain the needed information from internal data, marketing intelligence, and marketing research.
"Customer Insights" are achieved through market research, touchpoint analysis, primary and secondary collection and competitive intelligence? Define how each are conducted and the value of each method.
Market Research: The systematic design, collection, analysis and reporting of data relevant to a specific marketing situation facing an organization. - Market research gives marketers insights into customer motivations, purchase behavior, and satisfaction. It can help them to assess market potential and market share or measure the effectiveness of pricing, product, distribution, and promotion activities. Touchpoint Analysis: Due to the big data era, companies use this information to analyze "touch points" which include customer purchases, sales force contacts, serve and support calls, web and social media site visits, satisfaction surveys, credit and payment interactions, market research studies — every contact between a customer and a company. -unfortunately this data is usually scattered widely across the organization or buried deep in separate company databases. Primary Data: information collected for a specific purpose at hand -research approaches for gathering primary data include observations, surveys, and experiments Secondary Data: Information that already exists somewhere, having been collected for another purpose -company's internal database provides a good starting point, however companies can also buy secondary data from outside suppliers. In addition, using commercial online databases, marketing researchers can conduct their own searches of secondary data sources. Finally, internet search engines can able be a big help in locating relevant secondary information sources. Competitive Marketing Intelligence: The systematic monitoring, collection, and analysis of publicly available information about consumers, competitors, and developments in the marketing environment. -Marketing intelligence techniques range from observing consumers first hand to quizzing the company's own employees, benchmarking competitors products, online research, and monitoring social media buzz. Good marketing intelligence can help marketers gain insights into how consumers talk about and engage with their brands.
How does the corporate B2B buying process differ from the B2C process? What steps are different in each.
Market Structure and Demand: businesses are more insensitive to price changes; small increase in consumer demand=large increase in business demand; demand derived from consumers-have to sell other businesses to sell their products sometimes (i.e. Gorilla Glass) Nature of the Buying Unit: more decision participants Types of Decisions/Decision Process: businesses spend more money so the process is longer and more complex; B2B more dependency between businesses
What is "Marketing Analytics" and why is it so important in developing a marketing strategy?
Marketing Analytics: the analysis tools, techniques, and processes by which marketers dig out meaningful patterns in big data to gain customer insights and gauge marketing performance. For example, Netflix maintains a bulging customer database and uses sophisticated marketing analytics to gain insights, which it then uses to fuel recommendations to subscribers, decide what programming to offer, and even develop its own exclusive content in the quest to serve its customers better.
McDonald's Test Kitchen at Hamburger U developed many ideas for new products. What went wrong in their introduction with "Arch Deluxe" product line launch and what are the implications to market research?
McDonald's ventured into new product territory by creating the Arch Deluxe in 1996 and marketing it as the "burger with the grown-up taste." McDonald's began its fast-food empire in the 1950s as a family-oriented restaurant. Over time, it has developed an image that has largely been associated with children and food products that are more geared toward younger consumers. This is in large part due to Ronald McDonald, the Hamburglar, Grimace and other corporate mascots. The fast-food giant led an effort to revamp its image and attract a more adult segment of the market. The Arch Deluxe was conceived and branded with a marketing strategy that was rife with images of young people rejecting the burger because of its more "sophisticated" appeal. The problem, however, was that McDonald's had taken itself out of its own element, as consumers didn't go to their restaurants for sophistication and refinement. Consumers go for other reasons, chief among them being convenience. A big part of that convenience is knowing what to expect from the customer experience.
Measurable, Accessible, Substantial, Differentiable and Actionable are the five requirements for a segmentation exercise to be successful. Describe each characteristic features.
Measurable: can measure group's size, purchasing power, and profiles Accessible: Effectively reached and served Substantial: Profitable enough to warrant marketing efforts Differentiable: Distinguishable and responsive to targeted approaches Actionable: effective programs can be designed for each segment
What is a "Value Delivery Network"?
- a network composed of the company, suppliers, distributors, and, ultimately, customers who partner with each other to improve the performance of the entire system in delivering customer value
"Old Rules" talks about "Brand Essence". What is it and why is it vital for a company to understand it?
-*Brand Essence*: what the brand stands for in the minds of a company's stakeholders and stakeholders. It defines the core competencies of a firm along with its culture and values - important because brand essence is what the customers connect to -it is what sets the company a part from its competitors -heart of all organization's operations
The new trend of "customer-generated marketing" has had a big impact on companies marketing plans and messaging. What is it?
-*Consumer-Generated Marketing*: brand exchanges created by consumers themselves-- both invited and uninvited-- by which consumers are playing an increasing role in shaping their own brand experience and those of other consumers
Michael Porter described three basic forms of competing - Cost, Differentiation and Niche? What are each strategy and what are the advantages and disadvantages of each?
-*Cost*:Increasing profits by reducing costs, while charging industry-average prices OR Increasing market share through charging lower prices, while still making a reasonable profit on each sale because you've reduced costs >Advantages:Access to the capital needed to invest in technology that will bring costs down, Very efficient logistics, A low-cost base (labor, materials, facilities), and a way of sustainably cutting costs below those of other competitors. >Disadvantages: not unique to you, and that other competitors copy your cost reduction strategies -*Differentiation*: making your products or services different from and more attractive than those of your competitors >Advantages:Good research, development and innovation, The ability to deliver high-quality products or services, Effective sales and marketing >Disadvantages:attack on several fronts by competitors pursuing Focus Differentiation strategies in different market segments, cut off many potential consumers -*Niche*: concentrate on particular niche markets and, by understanding the dynamics of that market and the unique needs of customers within it, develop uniquely low-cost or well-specified products for the market >Advantages: build strong brand loyalty amongst their customers, market segment less attractive to competitors >Disadvantages: organization is too small to serve a broader market, risk competing against better-resourced broad market companies' offerings
What are the changes seen for marketing because of "Environmentalism, sustainability and social responsibility" as reflected in their branding and product development?
-*Environmentalism*: market greener, more eco-friendly products. -*Sustainability*: Company goes above and beyond government regulations, actually improving the environment -*Social Responsibility*: give back to community/ outreach programs in HQ community
What is "generational marketing" and what are the good points and bad points of this approach?
-*Generational Marketing*:a marketing approach that uses generational segmentation in marketing communication -Good Points: allows marketers to better identify product with generation, provides value specific to generation, creates generational community -Bad Points: need to split generations into more precise age-specific segments, may be less effective than segmenting them by lifestyle, common values, or need
Provide a definition of key terms "a market" and "Marketing Management"
-*Market*: the set of all actual and potential buyers of a product or service -*Marketing management*: the art and science of choosing target markets and building profitable relationships with them >Goal of marketing management is to engage, keep, ad grow target consumers by creating, delivering, and communicating superior customer value
Define "Marketing Mix" and why is it important to a strategist to understand?
-*Marketing Mix*: the set of tactical marketing tools (product, price, place, and promotion) that the firm blends to produce the response it wants in the target market -important to understand because the marketing mix consists of everything the firm can do to engage consumers and deliver customer value -constitutes the company's tactical tool kit for establishing strong positioning in target markets
How does "marketing myopia" effect a sellers' ability to deliver value to their customers?
-*Marketing Myopia*: the mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products -make marketers lose sight of underlying customer needs, which diminishes the value of the product to their customers
BCG Consulting uses a "Portfolio Analysis" Methodology for their customers showing "Growth-Share Matrix? How does it work and what can you communicate with it?
-*Portfolio Analysis*: the process by which management evaluates the products and business that make up the company -company will want to put strong resources into its more profitable businesses and phase down or drop their weaker ones -identify SBUs (strategic business units), assess their attractiveness, and decide how much support each deserves -communicates what shape the company is in, what direction they want o take with SBUs, and that they are devoted to improving their market position in those areas -classifies SBUz according to great-share matrix (star, question mark, cash cow, dog) -*Growth-Share Mix*: a portfolio-planning method that evaluates a company's SBUs in terms of market growth rate and relative market share
What is the difference between a Product-Oriented and a Marketing Oriented description of a company?
-*Product-Oriented*: simply states that the product is-- no emphasis on what the product will do for the customer >Ex: Chipotle- "We sell burritos and other Mexican food" -*Marketing Oriented*: shows what value the customers will receive from choosing their product >Ex: Chipotle- "We give customers 'Food With Integrity,' served with a commitment towards the long-term welfare of customers and the environment (more examples on page 41)
What is the difference between the five concepts of "Production, Product, Selling, Marketing and Societal Marketing" concept?
-*Production Concept*: consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency -*Product Concept*: consumers will favor products that offer the most quality, performance, and features; therefore, the organization should devote its energy to making continuous product improvements -*Selling Concept*: consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort -*Marketing Concept*: a philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do -*Societal Marketing Concept*: a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests
What is "real-time" marketing and give an example of how advertisers are practicing it.
-*Real-Time Marketing*: aligning marketing content with real-world events and trending topics through timely tweets, videos, blog entries, and social media posts -Example: Lego Movie #EverythingIsAwesome at the #Oscars during Academy Awards -Example: Starbucks free "Snow Day" drink to customers effected by Winter Storm Nemo in 2013 -Example: "war rooms" used to create rapid responses during major events like Samsung marketers flooding social media with clever ad campaigns during Apple product reveal
What is a SWOT analysis and what can it reveal?
-*SWOT Analysis*: an overall evaluation of the company's strengths, weaknesses, opportunities, and threats -Internal analysis reveals strengths and weaknesses, while external analysis points to potential opportunities and threats. - Capabilities
What is a "Value-Chain" Analysis? Why is it important to always perform one for a company?
-*Value Chain*- the series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products -important to always perform one because company's value chain is only as strong as its weakest link -interdepartment relations are full of conflicts and misunderstandings -marketers must find a way to get all departments to "think customer" and develop a smoothly functioning value chain
How does a "value proposition" help the working relationship in a marketing exchange?
-*Value Proposition*: Mutual Understanding, Alignment of Goals -Become a Part of the Ecosystem -Differentiate from Competitors as Partner, Co-developer, Ally -Maximizing Use of Products and Services, Development, R&D, Derivatives -Customization of Offerings, Advertising -Extending the Relationship, Being a Part of the Supply Chain (The VALUE CHAIN) -Profitable by Reducing Expenses and Being Focused, Less Negotiations
The term "Value" is relevant to different people but it makes for a challenge for a marketing team. Why is it key to understand the many different types of value in product selection?
-*Value*: Bundle of benefits a customer derives from a purchase that solves a need, want or desire -*Value creation*: adding value for a customer beyond an isolated transaction, working together - WIN - WIN -key to understand because it allows you to incorporate the most value in each product which makes it more desirable to the customer -gives customer most utility if company understand the value their products will offer
Why was the ALS Ice bucket challenge so successful?
-AIDA: attention, interest, decision, action -ALS Ice Bucket Challenge was so successful because it used real-time marketing to get people to upload videos of themselves completing the challenges on their social media platforms while spending $0 on this campaign -they made this into a viral trend that caught everyone's interest (esp. since celebrities participates) and made them want to make a video for themselves -made people feel as if they were making a difference/helping the cause because they had to make the choice to participate -created a community w/participants
The "Bottled Water" industry was created as a "perfect storm" of several societal factors coming together in 2002 - 2005 that lead to great success and growth. What were they?
-European or Premium Product - Evian, Perrier, Poland Springs -Health Conscientiousness -Exercise Craze - Convenience -New Sources -Technology - Bottling, Plastics -Distribution Leverage, Supply Chain, Shipping -Creativity - Derivatives, Product Extensions, Product Lines -Controversies - Recycle, Sodas, Politics -Pricing Strategies -Rapid Growth and Profitability
"Customer Lifetime Value" and "Customer Equity" are two vital concepts each company needs to understand. What implications do they have for building marketing plans and strategy?
-Losing a customer means losing more than a single sale -Companies must aim high in building customer relationships -Customer delight creates an emotional relationship with a brand, which keeps customers coming back -The more loyal the firm's profitable customers, the higher its customer equity -View customers as assets that need to be managed and maximized -Butterflies, True Friends, Strangers, Barnacles (page 22) -*Customer Lifetime Value*: the value of the entire stream of purchases a customer makes over a lifetime of patronage -*Customer Equity*: the total combined customer lifetime values of all of the company's customers
How did the Four P's help Staples develop a new product and organize their stores?
-Placement: their items that have high demand are located by cash registers and by front of store -Product: offer variety of office supplies -Promotion: -Price:
Shinola Bikes is a good example of a company understanding their consumer. What do they do that makes them close to their customer and create a high demand in their target group?
-Shinola stays true to their brand personality/essence (an all-american company that wants to bring back the gritty, authenticity of the American identity) -target group are hipster-chic people who want a high end product that looks old and worn down -provides consumers with an overall experience: buildings look old and industrial, HQ located in Detroit which used to be a booming factory town, provide historical contexts in most of their product identities -Their characteristics are targeted towards building an American community which leads to customer loyalty -they are successful is because they are allowing marketing to lead the way of their growth
Aldi's has a very precise Brand Differentiation for their stores as they try to reach their target market. What is it and how have they implemented it.
-They are a store that is all about cost differentiation (produce inexpensive foods) -They implemented it by not offering as many products and by selling off brand products
Nike's "Risk Everything" campaign was very successful. What was their strategy and formula for success?
-They had boys playing soccer turn into their favorite soccer players around the world for 2014 FIFA World Cup -risk everything is what it takes to carry on nation's hopes. -created #riskeverything -formula was consumer engagement and interaction
Does it make a difference if there has been a "geographic shift" in the country for marketing brand managers to consider in their marketing planning?
-Yes -need to consider where people are relative to there products/ads -move towards telecommunications such as online ads and apps -understand different demand from different geographic locations
Five Force Model by Michael Porter analyzes the broader scope of an industry and its' competitors? Why is this important and vital for a Chief Marketing Strategist to consider?
-dentified five forces that make up the competitive environment, and which can erode your profitability 1)Competitive Rivalry 2)Supplier Power 3)Buyer Power 4)Threat of Substitution 5)Threat of New Entry - the key sources of competitive pressure within an industry -By thinking about how each force affects you, and by identifying its strength and direction, you can quickly assess your position. -You can then look at what strategic changes you need to make to deliver long-term profit.
ESPN is a part of the Disney Portfolio. How does it effect their business and their portfolio?
-effects their business and portfolio in that their brand essence is now tied to Disney's (Disney is known to weigh in on political issues) -ESPN accounts for over half of Disney's total operating income -ESPN is big enough portfolio that is is torn between complying to its own essence or following Disney's suite -Mission: serve sports enthusiast wherever sports are watched, listened to, discussed, debated, read, or played - On one hand, if customers don't have same beliefs as Disney it can lead to disconnect from ESPN portfolio -On the other hand, ESPN portfolio is big enough to stand on its own without disney and should be able to create its own essence.
Dole Foods conducts a rigorous Procurement Process and requires their suppliers to perform many tasks to qualify as a source for food. Why is that so important for their business and how do they make sure they keep improving as a company?
-important because they import their products from international suppliers, so they are not guaranteed their standard of quality if they didn't have these quality checks -keep improving their company by integrating product checks, keeping their level of standard, and educating suppliers on these processes?
Why is it important to understand whether a customer's state of desire for an offering is either in "needs, wants or demands" state?
-important to understand b/c people at all levels of the company (including top management) stay close to the customer -understanding the customer's needs, wants, and demands better enables the company to best service them and build a relationship w/them
What is the "Starbucks Experience" and how has it helped their company to grow?
-it is an uplifting experience that enriches people's lives one moment, one human being, one extraordinary cup of coffee at a time -it is a third place; one away from home and away from work -caused customers to flock to Starbucks, and company met this demand by opening up more stores -success drew in competition, so Starbucks compensated by opening up stores at a breakneck pace -lost sight of their core mission and values -renewed mission and experimented with new store formats -*objective isn't just growth or sales or profit: it's engaging customers in a meaningful way and creating value for them*
As the economy shift, why is income distribution important to understand as income levels?
-over last several years, rich have gotten richer, middle class has shrunk, and poor have remained poor -creates a tier market -need to figure out what tier to market (Nordstrom's targets top tier, Dollar Store targets bottom tier)
Netflix uses analytics to help improve customer satisfaction. What do they do?
-they tack and analyze heaps of customer data in excruciating detail -use big data insights to give customers exactly what they want by using this knowledge to fuel recommendations to subscribers -use real-time data (like ratings, searches, and plays) on member viewing behavior and sentiments -purchases customer data from Nielson, Facebook, Twitter, etc, -survey new customer on movie/tv preferences -ask existing customers to rate whatever they watch
What are the 8 elements in a Marketing plan?
1) Executive Summary > main goals and recommendations of the plan for management review 2) Current Marketing Situation 3)Threats and Opportunities Analysis 4) Objectives and Issues 5)Marketing strategy 6) Action Programs 7) Budgets 8) Controls
Before one can develop a good Marketing Strategy, it is important to perform a "Situational Analysis. What are the key components in a SA?
1) Macro-level external environment >Political, Legal, Socio-cultural, Technological, Economic 2) Internal Environmental Assessment >Corporate Culture, Firm Organization, HR Policies and Capabilities 3) Analyze Competitive Strategy >Position in Industry, Strengths, Weaknesses, Threats, Power 4)SWOT Analysis >A convenient way to summarize key findings into a matrix of strengths, weaknesses, opportunities, and threats
The Marketing Process (1.1) has four steps in creating value. What are they?
1) Understand the marketplace and customer needs and wants 2) Design a customer-value driven market strategy 3) Construct an integrated marketing program that delivers superior value 4) Engage customers, build profitable relationships, and create customer delight *STEPS RESULT IN CAPTURED VALUE FROM CUSTOMERS TO CREATE PROFITS AND CUSTOMER EQUITY*
Why is it important to study the Micro and the Macro environment? Use FITBIT as an example.
Microenvironment: Acts close to the company that affect its ability to engage and serve customers (suppliers, the company, marketing intermediaries, competitors, publics, customers) -government publics: possible HIPPA violation -Local publics: communities using Fitbit as workplace incentive Competition: Apple and Google Macroenvironment: Societal changes (economy, nature, technology, politics, culture, demographics) -Tech: people know how to use it -Economic value: people are looking for things with high economic value today
Because of change in technology and access, how has "micromarketing" and "local marketing" become possible and more common? Is "Individual" or "hypertargeting" possible and good.
Micromarketing: tailoring products and marketing programs to the needs and wants of the specific individuals (mix of local and individual marketing) Technology such as Facebook ads targets individuals specifically based on previous searches There is a privacy issue associated with individual marketing, but it does put exactly what the customer wants in front of their faces
What are the five steps in the Buyer Decision process?
1. need recognition 2. information search 3. evaluation of alternatives 4. purchase decision 5. post purchase behavior
Mountain Dew has chosen to focus on a specific segment of the market with their ads and promotions. What segment have they chosen and how have they implemented it.
Mountain Dew focuses on targeting younger, caffeine-reliant dare-devils. They have implemented it through using social media sites and encouraging customers to use their product to "live life to the fullest" and "enjoy every moment." They are an international brand that emphasizes behavioral segmentation as many of their customers are EXTREMELY loyal
What are Observational research, ethnographic research and experimental type research?
Observational Research: gathering primary data by observing relevant people, cations and situations Ethnographic Research: a form of observational research that involves sending trained observers to watch and interact with consumers in their "natural environments" Experimental Research: Gathering primary data by selecting mashed groups of subjects, giving them different treatments, controlling related factor and checking for differences in group responses.
How has WOM influence risen over the past several years? What is an "Opinion Leader"?
Online social networks and blogging have influenced word of mouth influence. An opinion leader is a person within a reference group who, because of special skills, knowledge, personality or other characteristics, exerts social influence on others.
Proctor and Gamble are Strong Advocates of treating their Customers like Partners. What are they doing to demonstrate that and how do they make sure their Clients are successful?
P&G's CBD structure makes sure that everyone is taken care of. The article says they are treating customers as "strategic partners," which in effect is true, but more so this program lets them treat customers as family. Rather than focus solely on the sales of P&G products, P&G CBD team makes sure that the stores are selling as many products as they can-even if those are competitors' products. They are focusing on "mutually beneficial relationships" so they can both improve their sales and respective customer relations.
"Social Media has gotten nasty". Give an example. Is this good or bad? Why? Should there be restrictions?
People often turn to social media to direct their complaints about a particular brand or incident. This includes making mean tweets, posting youtube videos and blogging about bad experiences. This hurts companies business because a bad review often weighs more strongly with a customer/deters more business than a good review.
Sara Lee used Market Research to help them develop a new kind of bread to replace their leading white bread product. What did they learn from marketing research and how change their product?
People were still interested in the taste and texture of white bread, however, also wanted the health benefits of the wheat bread.
Niche or concentrated marketing has great advantages. What is the good and bads consequences of picking it as your product strategy.
A firm goes after a large share of one or a few smaller segments or niches. Sells a specific product (i.e. socks) Pros: can market more effectively by fine tuning products and more efficiently because it has higher research on those they serve; lets smaller companies focus their resources, highly profitable Cons: low profit margins if their segment turns sour; higher risks with lower diversification
What is a "Positioning Statement" and why is it important?
A statement that summarizes company or brand positioning using: To (target segment and need) our (brand) is (concept) that (point of difference). It differentiates the brand To busy multitasks who need help remembering things, Evernote is a digital content management application that makes it easy to capture and remember moments and ideas from your everyday life using your computer, phone, tablet, and the web
Why does "post-purchase dissonance" and "cognitive" dissonance occur to many buyers?
After purchase the consumer will be either satisfied or unsatisfied with their purchase. Post purchase behavior is the stage of the buyer decision process in which consumers take further action after purchase based on their satisfaction or dissatisfaction. Almost all purchases however end in cognitive dissonance, or discomfort caused by post purchase conflict. This is because every purchase involves compromise Consumers feel happy about acquiring the benefits of the chosen brand but sad about losing the benefits of the unchosen brand. Therefore, they experience post purchase dissonance for every purchase.
Facebook founder Mark Zuckerberg often givens away many of his software products that work with his software. What is the strategy behind that and what does he hope to get out of it?
Although one may think that it was unwise of Facebook to give away technology for free, this actually goes along with their mission statement of wanting to create a more intimate and friendly environment that feels connected and welcoming to all. In fact, Facebook believes that in order for a product to reach its highest potential, many people need to weigh in on their opinions. In fact, they believe that "the best way to advance the technology is to work on it as a community." Finally, because Facebook is such a successful site, it gains most if not all of its significant profit through advertisements that pay Facebook to be displayed. Also, Facebook knows that because of the vast number of users their site has, it would be nearly impossible for a new startup to completely surpass or dominate them.
Many things effect a "Buying Decision". "Attitude of Others" and "Unexpected Situational factors" occur that might alter your choices. What are they and how can they have you change?
Attitude of others is the idea that if someone important tells you to buy car A, then the likelihood of you buying car B are significantly reduced Unexpected situational factors are things that occur that were not expected-economic decline, job loss, competitor drops prices, friend reports being disappointed with a car. Therefore, preferences and purchase intentions do not always result in purchase choice.
How does B2B Sales handle segmentation?
B2B sales focuses on what the other businesses needs to improve operations. For example, Starbucks is in the office place so they need coffees and teas that are easily accessible in the office rather than having to run to Starbucks to buy one-break rooms are perfect to target.
How does an advertiser create "Behavioral Targeting"?
Behavioral targeting is based on a consumers internet searches. Marketers use the online data to target ads and offers to specific consumers. For example if you have a iPad in your amazon cart and don't buy it, there is a good chance you will later see ads for an iPad on other sites that you visit.
What is a Buying Center? How do business use them and why is it important for marketing to understand the dynamics of the Process? Who are the participants?
Buying Center: All of the people involved in the buying decision Businesses must understand stimuli in the market (economic, tech, political, cultural, competition) and interpersonal and individual influences to decide the product or service, supplier, quantity ordered, delivery terms and times, service terms, and payment Players: 1) Initiators - perceive a problem or opportunity requiring a new product of service 2) Users -must use or work with the product or service 3) Influencers -provide information for evaluating alternative products or suppliers 4) Gatekeepers - control the flow of information to others 5) Buyers - actually contact the selling organization and place the order 6) Deciders - final authority to purchase 7) Controllers - determine the budget
How does Chick-Fil-A distinguish themselves from other QSR's (Quick Service Resturants)?
CFA has performed up to standards with customer expectations because they have created a baseline for what their customers should expect: traditions, great food, and great people. CFA executes the marketing concept. This concept stresses the importance of finding the needs and wants of customers and delivering these to the people better than their competitors do. With their dedication to community and tradition, CFA senses and responds to what the people truly are looking for in the food market. CFA's central goal is to put the customer first, it's why they have relatively slow growth: "focus on getting better before getting bigger"
Campbell soup uses Big Data and analytics insights to do a "Deeper Dive" and read the consumer minds. What did they learn and how did it help their business?
Campbell's deeper dive research used biometrics to measure the emotional and hormonal response of customers to Campbell's products; they also went inside the homes of customers to see habits in the home. The strength to this method is to see what the customer might not necessarily know that they are feeling-what drives them to the product and what drives them away. Here, they could see that the emotion wasn't present in the store. They saw that the "see of red" cans actually deterred people from buying. It also encouraged them to add more "trendy" ingredients to their soup (broths, ginger). Traditional methods show trends, biometrics show emotions, and in-home research shows the desire for ease and ingredient necessities.
Questionnaires can be misleading when using open-ended or closed ended questions. Give an example.
Close ended: multiple choice or something with an answer already on the page Open ended: "describe...." customer has to give their own input Researchers should care about the wording and ordering of the questions. They should use simple, direct and biased wording. Questions should be arranged in logical order. The first question should create interest if possible and difficult or personal questions should be asked last so that respondents do not become defensive.
Companies and Brand Managers look for competitive advantage through a "differentiation" strategy and careful product positioning. Give an example of how they might implement this type of strategy and development of their product's image/ essence.
Companies all want to be different on the market so that people have a reason to purchase from them. At IHOP you "come hungry leave happy." This positioning emphasizes two things: the food is good and the atmosphere will make you leave feeling happy. It is important to establish what value the customer will be receiving from the brand.
In Non-Probability sampling, what is the difference between Convenience, Judgment or quota samples?
Convenience Sample: the researcher selects the easiest population members from which to obtain information Judgement Sample: the researcher uses his or her judgment to select population members who are good prospects for accurate information Quota Samples: The researcher finds and interviews a prescribed number of people in each of several categories.
Outline the factors that Influence Consumer Behavior and give examples.
Cultural Factors -culture: the set of basic values, perceptions, wants and behaviors leaned by a member of society from fame and other important institutions -subculture: many brands now target specific subcultures such as hispanics, african americans, and asian americans with marketing programs tailored to their specific needs and preferences -Social Class Social -groups and social networks -family -roles and status Personal -age and life-cycle stage -occupation -economic situation -lifestyle -personality and self-concept Psychological -motivation -perception -learning -beliefs and attitudes
What is "Market Segmentation" and why is it an important first step?
Dividing a market into distinct groups of buyers who have different, needs, characteristics, or behaviors and who might require separate marketing strategies or mixes. Important to identify which group of individuals you are going to market to.
How were DuckDuckGo strategist going to take on the big guys like Google and Facebook? Why did they pick their strategy?
DuckDuckGo's philosophy is not to directly compete with the large search engines, but rather provide a service that large firms do not: privacy. For users who do not wish to be tracked by Uncle Sam and have their data saved to a database, DuckDuckGo is the answer for them. Because of this privacy, DuckDuckGo appeals to the "privacy-minded users" (53).
Customer Relationship Management relies on good measurement of "Touchpoints". What is a Touchpoint Analysis and what does one discover from a TPA?
Due to the big data era, companies use this information to analyze "touch points" which include customer purchases, sales force contacts, serve and support calls, web and social media site visits, satisfaction surveys, credit and payment interactions, market research studies — every contact between a customer and a company.
Dunkin donuts refreshed their Brand and Marketing Strategy recently. What does the Brand Essence and slogan "Noting too fancy - just meeting the everyday, all-day needs of the Dunkin tribe" say about the company.
Dunkin is not trying to outperform Starbucks or attract their customers. They still want to appeal to the average Joe (customers who "see through the hype" of Starbucks) but they also want to provide them with more options to eat through out the day. They aren't adding an environment, it is still grab&go, but they are making sure customers can get what they want from friendly people.
Business to Business Social Media and Buying Process is rapidly changing. How is it being effected by the Internet and the Connected-world?
E-procurement: online purchasing , businesses can connect with buyers and maintain relationships. They can hold reverse auctions where buyers put purchasing requests online and suppliers bid for the businesses; trading exchanges are where companies work collectively to facilitate the trading process; extranet links=buy inventory online B2B eprocurement shaves transaction costs and reduces time between purchase and delivery Social media marketing
Explain the difference between Exploratory, Descriptive and Casual Research.
Exploratory research: Marketing research to gather preliminary information that will help define problems and suggest hypotheses. Descriptive Research: Marketing research to better describe marketing problems, situations or markets such as the market potential for a product or the demographics and attitudes of consumers Casual Research: Marketing research to test hypotheses about cause and effect relationships.
Why is it important to recognize the "Family" and current changes if you are in marketing?
Family members can sternly influence beer behavior. The family is the most important consumer buying organization in society and it has been researched extensively.
The "Rate of Product Adoption" varies from person to person. Why is that and where do you usually profile? Name the five stages or types of adopters.
Five Types of Adopters: Innovators (venturesome, first 2.5%), Early Adopter (adopt early and carefully, 13.5%), Early Mainstream (deliberate, 34%), Late Mainstream (skeptical-wait for others to try, 34%), Lagging Adopters (tradition-bound, 16%) Five Stages of Product Adoption: Awareness, Interest (seeks interest), Evaluation, Trial, Adoption (purchase and continued use)-AIETA (All Irish enjoy tailgating afternoons). Five characteristics that influence: Relative advantage to other products, compatibility with customer, complexity of use, divisibility (can I try it first?), communicability of results among buyers-RCCDC=Really Cate? Call dat cutie *costs, risk, and social approval are important too
What is a "Focus Group" and why would you use one?
Focus groups are small routs of people who meet with a trained moderator to tap about a product, service or organization. Participants normally are paid a small sum for attending and the moderator encourages free and easy discussion hoping that the group interactions will bring out deeper feelings and thoughts. Researchers and marketers watch the group discussion from behind a one-way mirror and video record sessions for later study. This type of study has become one of the main research tools for gaining fresh insights into consumer thoughts and feelings. Researchers not only hear about thoughts /consumer ideas/opinions, but they can also observe facial expressions, body movements, group interplay and conversational flows.
Four examples of Segmentation are Geographic, Demographic, Psychographic and Behavioral? Describe the different types and give examples of each.
Geographic: where do they live? (cities, rural areas) International or US customers? For example, in Orlando you're going to find more swimsuits in the Macy's than you would in Minnesota Demographic: gender (females have "softer" marketing style); age/life-cycle stage (don't make age assumptions, but rather address what life-cycle they might be at: starting a new family can occur at 25 or 35). Women's antiperspirant has more of a "soft on your skin-no harsh chemicals); whereas, a man's would say "for the tough work you need to do" Psychographic: Lifestyle. Are they looking for healthy foods? Bohemian feel? What's their personality? Panera emphasizes their "clean-eating" for the growing organics trend Behavioral: Divides people based on their reactions to the product. How loyal are they? How loyal may they become? I am not a loyal P&G user, but if I have a kid and start to use diapers, then P&G targeting me telling me to buy their product could make me a loyal customer in the years to come; benefits of the device: fitbit has many different tracking options
In customer-engagement marketing, why is there a shift of "marketing by intrusion" to "marketing by attraction".
Greater consumer power means that companies can no longer rely on marketing by intrusion. They must practice instead marketing by attraction. Hence, most marketers now combine their mass media marketing efforts with a rich mix of online, mobile, and social media marketing that promotes brand-consumer engagement, brand conversations, and brand advocacy among customers -*Marketing by Attraction*: creating market offerings and messages that engage consumers rather than interrupt them -*Customer-Engagement Marketing*: making the brand a meaningful part of consumers' conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences, and community
Many products are considered "Habitual- Buys". Compare that to a "Variety-seeking buying behavior" environment. What are the characteristics of each?
Habitual Buyer Behavior: consumer buying behavior in situations characterized by low consumer involvement and few significant perceived brand differences example: table salt marketers often use sales promotions to promote buying Variety-seeking buying behavior: consumer buying behavior in situations characterized by low consumer involvement but significant perceived brand differences cosumers often do a lot of brand switching example: a consumer might buy a brand of cookies with evaluting and then evaluate after consumption; they might pick another brand out of boredom the nect time to try something different the market leader will try to encourage habitual buying behavior by dominating shelf space; challenging firms will try to market with lower prices, special deals, and coupons
MOM as Brand Ambassador's programs have been very successful. What is the good news and bad news for a company to use this approach in their marketing?
Having moms as social media ambassadors is supper effective because like the text book said, "women account for 85% of customer purchases" and are "20% more likely than the general population to use social media." This way, a vast majority of moms are on social media and therefore, have many followers/friends that are also on the same social media site and will be interested in what their followers are posting about. Therefore, by having the market in which many stores will be targeting as brand ambassadors can exponentially increase the stores revenue and sales. This is a great marketing strategy as long as the brand ambassador can maintain their following numbers and have a decent amount of clout amount their peers. Nonetheless, if a mom does not like a brand, they will share this with their friends and therefore it will in turn decrease sales
How is "Social Class" measured in the United States? Is it an important distinction?
Social class is not determined by a single factor such as income, but is measured as a combination of occupation, income, education, wealth and other variables. Marketers are interested in social class because people within a given social class tend to exhibit similar buying behavior. Social classes show distinct product and brand preferences in areas such as clothing, home furnishings, travel and leisure activity, financial services and automobiles.
The three types of buying situations are straight rebuy, modified rebuy and new task buy. What difference in approach, costs and structure does each have?
Straight rebuy: buyer reorders something without modifications-Maintain old customer relationships through quality and ease Modified rebuy: buyer wants to modify product specifications, prices, terms, or suppliers-supplier become nervous to put best foot forward whereas receiving B just wants high quality New Task Buy: B buying a product or service for the first time; marketer wants to reach these groups, but it also is risky to spend money trying to get them and not get sales
Big data is used effectively by Target to analyze their customers' needs and preferences. What mistake did they make in divulging their findings to a young shopper's family? What does this say about research?
Target made some of its customers very uneasy whit it used their buying histories to figure out that they had a baby on the way, including eerily accurate estimates of child gender and due date
Understanding Technological changes is vital for Marketers. Why and give an example?
Technology, such as a bracelet with a chip that can pay for purchases, can offer advantages to both buyers and sellers, however, they can be scary, however, with GPS and bluetooth, these technological changes are already happening. Companies are already installing item-level RFID systems in their stores and Burberry uses chips imbedded in items and linked to smartphones to provide personalized, interactive experiences for customers in its stores and at runway shows. The technological environment changes rapidly, creating new markets and opportunities, however, new technology replaces old technology which hurts certain markets such as digital downloads and streaming hurting the DVD and book businesses. The government works to make sure these new products are safe and these regulations have resulted in much higher research costs and longer times between new product ideas and their introduction.
What is the advantage of a Social Media Center?
The advantages of these command centers are that they can provide information with what the consumers are saying about the specific company's products and thus be able to gage how to change their product, marketing strategy or advertising. If a consumer responds well to a product, the company will be sure to continue their marketing platform in a similar way. On the contrary, and probably more common and possibly even more beneficial would be the converse of this situation. Often when people are outraged with a product or service, they will turn to social media. Angry posts, videos and pictures regarding a company can be put on the internet in a matter of seconds and quickly these can be viewed by thousands of people. This can be detrimental to a company. By having these command centers, the producer can sift through these potential threats towards their business and address the situation in ways in which they feel fit. The customer is always right and thus we must please them to continue getting their business. We must make sure to address a situation if we feel as if it is severe and do whatever means necessary and ethical to make sure this customer is happy.
Name the four steps of Market research. Why is Step One most critical?
The four steps of market research: 1) Defining the problem and research objectives. The first step is probably the most difficult but also the most important one because it guides the entire research process. It is frustrating and costly to reach the end of an expensive respect project only to lean that you've missed the wrong problem. 2) Developing the research plan and collecting the information 3) Implementing the research plan— collecting and analyzing the data 4) Interpreting and reporting the findings
Pearson also says "Brand Essence" is everything. Why such a strong emphasis on this concept?
The position of the company is extremely important to connect with your customers. It tells the customer how to think, feel, and act about the product. Without a brand essence you cannot have brand loyalty and your product simply becomes a need. You want it to be both a need and a want. How should the public perceive your brand?
In "Old Rules of Marketing" Pearson describes the marketing mistake of "New Coke" introduction. What went wrong with that program?
The producers of Coke decided to completely change the recipe for Coke without offering the old Coke on the shelves. They based their prediction of sales off of a few samplers. However, they also got rid of the glass Coke bottles and it completely ruined the experience for the people. They should have offered both products and analyzed the sales.
GoldieBlox faces many challenges with consumer perception of what toys should be sold to whom. Will they have any effect in STEM education for females if they are successful?
The specific factor of cultural norms has made marketing very difficult for GB. They must straddle the edge of destroying stereotypes while still attracting young girls and mothers who genuinely do like princesses and dolls. Even the creator notes, "There's nothing wrong with being a princess. We just think girls can build their own castles too." In some ways, yes. These toys are going to encourage girls to be like the models "Ruby Rails" rather than the stereotypical Barbie doll. I remember as a child getting the opportunity to play with my brother's toys, but maybe I would be more interested in STEM if I had a chance like this too. In some ways, however, no. This is not only about toys it is about encouraging teachers to encourage kids. The article mentions that the creator had one teacher who believed in her. The power of one made her an incredible entrepreneur. A switch of culture, maybe fostered by these toys, will be a surefire way of involving more women in STEM.
What is a "Supplier Development" program like Cargill and McDonald's practices and why is it important tool to improve your business process.
The stage of the business buying process in which the buyer reviews proposals and selects a supplier or suppliers based on the proposal submissions Cargill provides their customers with research on the trends in the market to assist them with selling. Important in showing the customer that you care that they go on to sell your inventory. Its a continued relationship.
Describe elements of Buffalo Wild Wings marketing strategy. What is the key to their success?
They have "guest experience captains" that not only understand that they are in the business of selling wings, but also are "in the business of fueling the sports fan experience." They have many marketing strategies such as: making the restaurant feel like a miniature stadium, having 60-70 flat screens, having the infamous blazing wings challenge, having mini game controllers and even having guest experience captains that will go from table to table and have convos with guests. They want their customers to stay longer at their restaurant because this will make them enjoy their time more and want to come back in the future.
Patagonia used the slogan "Conscious Consumption" and "Don't Buy this Jacket? What was their strategy?
They know that by making their products, they are in fact hurting the environment, which in essence is taking away from what their products and brand are all about (enjoying nature in all of its beauty). Patagonia encourages sustainability and thus wants one to reuse and recycle jackets rather than just buying more and more of them. This way the environment is protected and more people can enjoy it.
Marketing teams often add someone with Psychology Expertise in order to understand the consumer. Why is that role important and what do they study?
This is important because it drives how people purchase their products. They study factors such as motivation, perception, learning and beliefs and attitudes.
Big Data often scares many consumers. Why is that? What can go wrong? What are the positives of having Big data systems available to companies?
Two major public policy and ethics issues in marketing research are intrusions on consumer privacy and the misuse of research findings. People worry that marketers are building huge databases full of personal information about customers. Or they fear the researchers might use sophisticated techniques to probe our deepest feelings, track our internet and mobile device usage, or peek over our shoulders as we shop and then use this knowledge to manipulate our buying. The positives for companies is that they can use these results as claims in the advertising and promotion.
What is an undifferentiated and differentiated marketing strategy?
Undifferentiated: mass marketing--go after whole market Differentiated: segmented marketing--picking a very specific group
Is perception more important than reality in marketing? What makes a "Complex buying" process different?
Yes. Consumers undertake complex buying behavior when they are highly involved in a purchase and perceive significance differences among brands. consumers may be highly involved when the product is expensive, risky, purchased infrequently, and highly self-expressive.
International Marketing Manners are important to practice and to understand. Why?
You do not want to lose a business deal over being rude to a customer, even if you don't think it's rude. For example, don't take your coat off in a business meeting with Russians, don't give the Chinese clocks as a gift, and don't call a Frenchman by his first name
"Alternative Buying Evaluation" is an important process brand marketing teams must study. Why and what would one learn?
alternative evaluation: the stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set how consumers go about evaluating purchase alternatives depends on the individual consumer and the specific buying situation marketers should study buyers to find out how they actually evaluate brand alternatives; if marketers know what evaluative processes go on, they can take steps to influence the buyer's decision
How does "Behavioral segmentation" help improve customer loyalty or "occasion" shopping on holiday's or "Benefits" segments?
behavioral segmentation is a marketing strategy based on actual consumer buying behavior. It divides the market into groups of customers according to their knowledge of, attitude towards, use of or response to a product.
"Emotional Branding" to Moms had several key attributes identified to make an advertisement successful. What were some examples?
emotional branding of safety was an example as well as the brand of saving money
How does "subculture" play a role in understanding the Consumer? What is a Total Marketing Strategy?
subculture: many brands now target specific subcultures such as hispanics, african americans, and asian americans with marketing programs tailored to their specific needs and preferences. A group of people with shared value systems based on common life experiences and situations Total Marketing Strategy: Integrating ethnic themes and cross-cultural perspectives within a brand's mainstream marketing, appealing to consumer similarities across subcultural segments rather than differences.
Provide a definition for "What is Marketing?"
the process by which companies engage customers, build stronger relationships, and create customer value in order to capture value from customers in return
Briefly describe Maslow's Hierarchy of Needs in relation to Consumer Marketing Insight.
Ranking of how people prioritize their personal needs. All the way from the needs of food and water, to the top of the pyramid (least important need) of self development and realization. Basically people will not care about the higher tiers if the basic needs are not met so we must focus on the first needs before we can tackle the next need.
How does the IBM Sales Model for Business to Business relationship selling work? What are the Pros and cons of this business model? What is "Solutions Selling"?
Rather than selling small-ticket purchases to masses of individual consumers, IBM sells complex big-ticket purchases to a smaller set of much bigger buyers, with each purchase involving perhaps dozes of decision makers. Their emphasis is less on selling to customers and more on partnering with them to help solve their complex information and analytics problems. They deliver insights and solutions to customers' data and information technology problems. Not only do they sell computer hardware, but they also do data analytics, cloud computing, cyber-security, social networking, and mobile technology solutions. They continue to transform.
When using mechanical instruments for research, what is biometric measuring and neuro-marketing?
Researchers apply neuromarketing using EEG and MRI technologies to track brain electoral activity to learn how consumers feel and respond. Neuromarketing measures, often combined with biometric measures (such as heart rates, respiration rates, sweat levels, and facial and eye movements), can provide companies with insights into what turns consumers on and off regarding their brands and marketing.
Ordering and wording can skew a questionnaire. How does it do that?
Researchers should care about the wording and ordering of the questions. They should use simple, direct and biased wording. Questions should be arranged in logical order. The first question should create interest if possible and difficult or personal questions should be asked last so that respondents do not become defensive.
Ritz Crackers are an iconic brand. How did they conduct research and what did they learn about the consumer buying habits that helped them launch Ritz chips.
Ritz crackers makes most of their sales during the winter because of holiday parties. They did research and found that chips are sold more in the summer so they decided to launch Ritz toasted chips. They decided to make their chip resemble a cracker and chose big, bold print on the packaging. They also strategically chose to place the product in the cracker aisle as opposed to the chip aisle because it is difficult to enter the large chip market when you do not already have a presence. They also did this because crackers are typically more expensive than chips and their expensive product would not sell well in the chip aisle.
In Probability Sampling, what is the difference between Random, Stratified or Cluster Sampling?
Simple random sample: Every member of the population has a known and equal chance of selection Stratified random sample: the population is divided into mutually exclusive groupie (such as age groups) and random samples are drawn from each group Cluster (area) sample: the population is divided into mutually exclusive groups (such as blocks) and the researcher draws a sample of the groups to interview
How has the "Great Recession" effected marketing and what changes have come about?
Since the GR, people have become more sensible and "value" has become a big watch word. Buying less looking for more value. "value marketing" Luxury items do not sell as much