Principles of Marketing Quiz 1 Study Guide
What is a "Value Delivery Network"?
The network of all parties involved in delivering a service or product, from the company itself to the suppliers, distributors, and even the customers themselves.
Ritz Crackers are an iconic brand. How did they conduct research and what did they learn about the consumer buying habits that helped them launch Ritz chips.
They discovered people don't go into the chip aisle looking for ritz chips so they had to put ritz chips next to the crackers so that people would see it as new. They wanted to keep the same kind of taste so that they keep the same customers but appeal to new customers by making a chip
What is a "Value-Chain" Analysis? Why is it important to always perform one for a company?
Value-Chain: The activities which design, produce, market, deliver, and support the firm's products. The firm's success depends not only on how well each department performs its work but also on how well the various departments coordinate their activities.
How has WOM influence risen over the past several years? What is an "Opinion Leader"?
WOM: Word of Mouth -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.
"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 If they study how they actually evaluate brand alternatives then marketers can take steps to influence buyers decisions.
How does an advertiser create "Behavioral Targeting"?
*Behavioral Targeting*: Using online consumer tracking data to target advertisements and marketing offers to specific consumers, often based on internet searches
How does Chick-Fil-A distinguish themselves from other QSR's?
(QSR: Quick-service restaurant) -Extremely well-defined and unchanging menu (will not add anything without extensive and honest testing for quite some time -Superior customer service, helping above and beyond -Get better before getting bigger
Define "a market" and "marketing management"
*A 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 getting, keeping, and growing customers through creating, delivering, and communicating superior customer value
What are the five steps in the Buyer Decision process?
1. Need recognition: customers recognize a problem or need 2. Information search: stage in which the consumer is aroused to search for more information 3. Evaluation of alternative brands 4. Purchase decision 5. Post purchase behaviour
What are the eight elements in a Marketing plan?
1. Executive summary 2. Current marketing situation 3. Threats and opportunities analysis 4. Objectives and issues 5. Marketing strategy 6. Action programs 7. Budgets 8. Controls
When using mechanical instruments for research, what is biometric measuring and neuro-marketing?
*Biometric measuring*: heart rate, eye movements, and sweat levels help to provide insights into what turns consumers on and off regarding their brands and marketing *Neuro-marketing*: using EEG and MRI technologies to track brain electrical to learn how consumers feel respond
The chapter talks about "Brand Essence". What is it and why is it vital for a company to understand it?
*Brand Essence*: What a brand stands for in the mind of a company's customers and stakeholders. Defines the core competencies, culture, and values of a company This is what sets a company apart from their competitors and is the heart of all the organization's operations.
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 judgement to select population members who are good prospects for accurate information *Quota sample*: the researcher finds and interviews a prescribed number of people in each of several categories
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 leadership*: the firm has the lowest production costs and can therefore ask the lowest prices *Differentiation*: The firm creates a highly differentiated product *Focus strategy*: the firm focuses on a small niche market segment and understands it fully
"Customer Lifetime Value" and "Customer Equity" are two vital concepts each company needs to understand. What implications do they have for building marketing plans and strategy?
*Customer Lifetime Value* is an estimate of how much value a customer has to a company over an unlimited lifespan rather than at the time of a singular purchase. Every time a customer walks out of a store upset they lose a lot more than that purchase, they lose a lifetime of purchases from the customer. This demonstrates the importance of a good first impression and continued customer engagement. *Customer Equity* is the total combined customer lifetime values of all the company's current and potential customers. In other words it is a measure of the future value of the company's customer base. The more loyal the customers, the higher the equity.
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 Environmental sustainability involves developing strategies and practices that create a world economy that the planet can support indefinitely.
Explain the difference between Exploratory, Descriptive and Causal Research.
*Exploratory Research*: gathers preliminary information that will help define problems and suggest hypotheses *Descriptive Research*: Better describes marketing problems, situations, and markets i.e. new products, or changes in demographics and attitudes *Causal Research*: test hypotheses about cause and effect relationships
What is "generational marketing" and what are the good points and bad points of this approach?
*Generational marketing*: an approach which uses generational segmentation as part of their marketing communication. Good: Allows marketers to identify with a specific generation, creating a community and providing value to a certain market. Bad: Generations are made up of a diverse population and it may not be as effective as grouping them by common lifestyle, values, or needs
Many products are considered "Habitual-Buys". Compare that to a "Variety-seeking buying behavior" environment. What are the characteristics of each?
*Habitual behavior*: consumer buying behavior in situations characterized by low consumer involvement and few significant perceived brand differences *Variety seeking buying behavior*: consumer buying behavior in situations characterized by low consumer involvement but significant perceived brand differences
What is "Marketing Analytics" and why is it so important in developing a marketing strategy?
*Marketing Analytics*: the analysis tools, technologies and processes by which marketers dig out meaningful patterns in big data to gain customer insights and gauge marketing performance
CHAPTER FOUR What different groups or ideas are present in a "Marketing Information Systems"?
*Marketing Information Systems* are people and procedures for assessing information needs, developing the needed information and helping decision makers to use the information to *generate and validate customer and market insights* This also creates customer value, engagement, and stronger customer relationships. Begins with marketing managers, internal & external partners Marketeers can obtain the needed information from internal data, marketing intelligence and marketing research
How does "marketing myopia" effect a sellers' ability to deliver value?
*Marketing myopia*: A shortsighted approach to marketing in which a company looks inwardly towards its own needs rather than the customers needs and wants A company cannot deliver value to its customers if it is focused too much on delivering value to itself.
CHAPTER THREE Why is it important to study the Micro and the Macro environment? Use FITBIT as an example.
*Microenvironment*: the actors close to a company that affect its ability to serve customers, ex the company itself and its subdivisions/suppliers *Macroenvironment*: the larger societal forces that affect the microenvironment and consist of multiple factors (economy, nature, technology, politics, culture, and demographics). FitBit relied heavily on a cultural shift toward health & wellness and benefited greatly from technological advances by suppliers for better, cheaper sensor.
What are Observational research, ethnographic research and experimental type research?
*Observational Research*: gathering primary data by observing relevant people, actions, and situations *Ethnographic Research*: involves sending trained observers to watch and interact with consumers in their "natural environments" *Experimental Research*: Gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses
What is the difference between a Product-Oriented and a Marketing Oriented description of a company?
*Product-Oriented Description*: -Literally what the company does. Its product, service, or business. *Marketing Oriented Description*: -Based in satisfying customer's needs. Example Starbucks: We sell coffee and snacks vs. "We sell "The Starbucks Experience" one that enriches people's lives one moment, one human being, one extraordinary cup of coffee at a time."
What is the difference between the five concepts of "Production, Product, Selling, Marketing and Societal Marketing" concept?
*Production*: consumers will favor products that are available and affordable, so managers should focus and production and distribution. *Product*: consumers will favor products that offer the most in quality, performance, and innovative features, so marketing strategy should focus on product improvements. *Selling*: consumers will not buy enough of the firm's product unless it undertakes a large-scale selling and promotion effort. Typically practiced with unsought goods (those that buyers do not normally think of buying, such as life insurance or blood donations. *Marketing*: holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. Under this concept, customer focus and value are the paths to sales and profits. This is the sense-and-respond philosophy. *Societal Marketing*: questions whether the pure marketing concept overlooks possible conflicts between consumer short-run wants and consumer long-run welfare. Holds that marketing strategy should deliver value to customers in a way that maintains or improves and consumer's and society's well-being.
In Probability Sampling, what is the difference between Random, Stratified or Cluster Sampling?
*Random Sampling*: every member of the population has a known and equal chance of selection *Stratified Sampling*: The population is divided into mutually exclusive groups and random samples are drawn from each group *Cluster sampling* the population is divided into mutually exclusive groups and the researcher draws a sample from the groups to interview
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 *Total Marketing Strategy*: 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.
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 is a person's pattern of living as expressed in his or her activities, interests and opinions - 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.
Dunkin donuts refreshed their Brand and Marketing Strategy recently. What does the Brand Essence and slogan "Nothing 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.
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
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 has a massive sales force, assigns a full customer development team of specialist and salespeople to each account, and provides clients with any information they need to benefit from the relationship. 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
How is "Social Class" measured in the United States? Is it an important distinction?
- Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors - Measured by occupation, income, education, wealth and other variables
Describe the different segmentation strategies in either the beverage market (Coke v Pepsi) or retail store business (WalMart, Target, Sears, JCPenney), or Autos (figure 7.3) and how they chose to compete? Why does segmenting establish a brand and image with consumers and customers, and what is the advantage or disadvantage?
- Some auto companies segment based on benefit (Luxury and performance). In the beverage market, companies use a loyalty status segmentation strategy to target loyal consumers and to make them into partners in building the brand. Some companies also target teens through universal teen themes, such as Coke's partnership with Spotify. Segmenting establishes an image of the company's personality, such as when a company segments the market based on lifestyle. Companies like Nike that target active consumers associate their brand with a lifestyle. The advantage is effectively targeting a profitable segment and the disadvantage is possibly losing other interested customers in other segments or depending too much on one segment.
The General Electric Model is leading edge in working with their B2B clients. What kind of marketing programs do they have and how is it helping them compete?
- They have a great instagram and pintrest where customers can go look at their products. - They did the 6 second vine video which went viral. - Had B to B blog or GE reports, reached out to other businesses - Promoted innovation with GE Garages - Gets people excited about the future and marks them as the company leading them there
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.
- They have chosen to go after those interested in extreme sports. They also really market to their super customers. - 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
Why was the ALS Ice Bucket challenge so successful?
-Entire marketing campaign was free, relied on social media -They made it an entirely personal experience, inspiring to get each other involved -Celebrities picked it up and it became a viral sensation
"Shinola" Products is a good example of a company understanding their consumer. What do they do that makes them close to their customer and create a high demand in their target group?
-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
Netflix uses analytics to help improve customer satisfaction. What do they do?
-Track and analyze customer satisfaction -Use big data insights to give customers exactly what they want -Use a data in real time -Purchase external customer data from social media platforms -Survey new customers and get recommendations from existing customers
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
The Marketing Process (Four steps to creating value)
1. *Market Segmentation*: divide a market into distinct groups of buyers who have different needs, characteristics or behavior and who might require separate products or programs. 2. *Market Targeting*: Evaluate each market segment's attractiveness and selecting one or more segments to enter. 3. *Positioning*: arrange for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of consumers. 4. *Differentiation*: differentiate the market offering to create superior customer value.
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. Analyze 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 strategies -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.
Name the four steps of Market research. Why is Step One most critical?
1. Defining the problem and research objectives -Need to have very specific goals to cater the research to a specific end 2. Developing the research plan on how the information will be gathered 3. Implementing the research plan means putting it into action 4. Interpreting and reporting the findings
How does a "value proposition" help the working relationship in a marketing exchange?
A value proposition is "the set of benefits or values it promises to deliver to customers to satisfy their needs." Value propositions differentiate one brand from another, driving customers to pick one company over another because they desire something from them.
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
Describe the steps in the typical B2B Buying Process. What is an RFP, QA process and VPA (Performance Review).
An *RFP* is a Request For Proposal which is involved in the proposal solicitation step. A *QA* process is a quality assurance test to make sure the products meet all of the specifications and looks for any mistakes. A *performance review* is when the buyer assessed the supplier and considers the future.
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-i.e. 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 the corporate B2B buying process differ from the B2C process? What steps are different in each.
B2B: Business to Business B2C: Business to Customer The business buying process involves more buying decisions, larger sums of money, more complex economic and technical considerations, and many interactions at many different levels. The B2B decision process is different in that a problem has to be recognized, a product must be specified for fixing the problem, suppliers must be contacted, the product is reviewed, and finally the supplier is assessed for future purchases . A B2C process only involves recognizing a need, finding the right brand, and postpurchase behavior. It is a much simpler decision and evaluation process
Describe elements of Buffalo Wild Wings marketing strategy. What is the key to their success?
BWW focuses on the "B-Dub experience" -Sports centered experience which tries to get big groups to come on a regular basis -They diversify their seating to cater to both families and sports fans
ESPN is a part of the Disney Portfolio. How does it effect their business and their portfolio?
Being a part of Disney means ESPN has access to an unprecedented number of resources. But the relationship is mutually beneficial, with ESPN being responsible for more than half of Disney's yearly revenue. They must still abide by Disney's rules, however. In recent years this has meant a stronger push for streaming, even removing some things from cable in favor of placement on a mobile or digital outlet.
Ordering and wording can skew a questionnaire. How does it do that?
Biased wording can deter or skew a participants answer. In general, the first question should pique interest and the later questions should be more personal and in-depth.
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?
Boston Consulting Group *Portfolio Analysis*: the processes by which management evaluates the products ad businesses that make up the company. *Growth-Share Matrix*: a portfolio planning method that evaluates a company's strategic business units in terms of market growth rate and relative market share. *Stars*: Stars are high-growth, high-share businesses or products. They often need heavy investments to finance their rapid growth, but will eventually slow down and become cash cows. *Cash Cows*: Cash cows are low-growth, high-share businesses or products. These established and successful SBUs need less investment to hold their market share. Thus, they produce a lot of the cash that the company uses to pay its bills and support other SBUs that need investment. *Question Marks*: Question Marks are low share businesses units in high growth markets. They require a lot of cash t hold their share, let alone increase it. Management has to think hard about which question marks it should try to build into stars and which should be phased out. *Dogs*: Dogs are low-growth, low-share businesses and products. They may generate enough cash to maintain themselves but do not promise to be large sources of cash.
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 soup learned that a uniform label was boring and overwhelming, and used biometric data to change their marketing techniques. They had empirical data that proved the "sea of red" cans actually deterred customers and thus encouraged customers to add new trendy ingredients.
The term "value" is relevant to different people but it makes for a challenge to a marketing team. Why is it key to understand the many different types of values in product selection?
Companies must generate value *to* customers as well as generate value *from* customers. Delivering superior customer value creates highly satisfied customers who will buy more and buy again.
In customer-engagement marketing, why is there a shift of "marketing by intrusion" to "marketing by attraction"
Companies should strive to engage customers rather than interrupt them through a combination of online, mobile, and social media marketing that promotes brand-consumer engagement, brand conversations, and brand advocacy among customers.
Outline the factors that Influence Consumer Behavior and give examples
Consumer Behavior is the buying behavior of final consumers individuals and households that buy goods and services for personal consumption. *Cultural Factors* culture: the set of basic values, perceptions, wants and behaviors learned 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* -groups and social networks, family, *Personal* -age/life-cycle stage, occupation, economic situation, lifestyle *Psychological* -motivation, perception, beliefs & attitudes
The new trend of "customer-generated marketing" has had a big impact on companies marketing plans and messaging. What is it?
Consumer-generated marketing is a process by which consumers themselves shape their own brand experiences. This can occur through consumer-to-consumer exchanges through digital forums or social media. Companies themselves also invite consumers to play an active role in shaping products and brands through surveys and contents.
What is Marketing?
Creating customer value and engagement OR Satisfying needs and wants through an exchange process OR the management process responsible for identifying, anticipating and satisfying customer requirements profitably
"Customer Insights" are achieved through market research, touchpoint analysis, primary and secondary collection and competitive intelligence? Define how each are conducted and the value of each method.
Customer insights are fresh marketing information-based understandings of customers and the marketplace that become the basis for creating customer value, engagement, and relationships. This is formed by: *Market Research*: the systematic design, collection, analysis, and reporting data relevant to a specific marketing situation facing an organization *Touchpoint analysis*: used to analyze customer purchases, sales force contacts, serve and support calls, web and social media site visits, satisfaction surveys, credit and payment interactions, market research studies-- all the contacts between a customer and a company *Competitive Marketing Intelligence*: the systematic monitoring, collection, and analysis of publicly available information about consumers, competitors, and developments in the marketing environment *Primary Data*: information collected for a specific purpose *Secondary Data*: Information that already exists somewhere, collected for a different purpose
How were DuckDuckGo strategist going to take on the big guys like Google and Facebook? Why did they pick their strategy?
DuckDuckGo isn't out to "slay the giant," it knows it can't compete with the Googles and Bings of the world. DuckDuckGo uses a niche marketing strategy, meaning they focus on a specific customer market. It has a unique "niche brand personality and user community."
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.
Facebook founder Mark Zuckerberg often gives 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?
Facebook highly values diverse opinions. By giving away software for free a number of people can weigh in, allowing their products to reach their highest potential. Facebook also makes a majority of its income through advertisements, and are not very threatened within their niche so they would be difficult to be overtaken.
Why is it important to recognize the "Family" and current changes if you are in marketing?
Family members strongly influence buying behavior, eaach member of a family buys different things and must therefore be marketed to differently.
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
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?
Five forces make up the competitive environment which can erode profitability 1. Competitive rivalry 2. Supplier Power 3. Buyer power 4. Threat of substitution 5. Threat of new entry By considering how each force affects a business and identifying its strength and directions a company can analyze its own position within an industry
What is a "Focus Group" and why would you use one?
Focus groups are small groups of people who meet with a trained monitor to talk about a product, service or organization. Researchers and marketers watch and study the group in order to hear about thoughts/consumer ideas/opinions and interpret physical and conversational responses to certain products, analyzing surface and deeper level thoughts and feelings.
Four examples of Segmentation are Geographic, Demographic, Psychographic and Behavioral?
Geographic segmentation - dividing a market into different geographical units Demographic segmentation - dividing the market based on age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality. Psychographic segmentation - dividing a market based on social class, lifestyle and personality characteristics Behavioral segmentation - dividing a market based on consumer knowledge, attitudes, uses or responses to a product.
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?
Geographic shifts such as a migration lead to new opportunities in marketing niche products and services but it is necessary to consider where people are relative to their products/ads and understand the different demands
"Emotional Branding" to Moms had several key attributes identified to make an advertisement successful. What were some examples?
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. emotional branding of safety was an example as well as the brand of saving money
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?
In *straight rebuy*, the buyer reorders without modification and the suppliers try to engage them to keep their order to gain their business. In a *modified rebuy*, the buyer reorders with specification modifications and the supplier tries to make a better product, price, or term offer. The *new task buy* situation involves buying for the first time where the buyer makes many decisions and the marketer provides lots of help and information.
As the economy shift, why is income distribution important to understand as income levels?
It is important to know which income level a company wants to market to, and this may change as the market shifts.
When might a business desire fewer customers over more customers in developing their marketing plans?
It is important to recognize a target market, and maintain a conservative amount of growth. Ex: Chick-Fil-A, "Getting Better before Getting Bigger" Company focuses on steady growth rather than trying to expand to a massive number of customers before it is ready to do so. Having a lot of customers is expensive, and it is better to have stronger relationships than to have a lot of relationships.
How does "Behavioral segmentation" help improve customer loyalty or "occasion" shopping on holiday's or "Benefits" segment?
It markets to loyal customers, engaging them fully and making them partners in building the brand and telling the brand's story. Marketing occasion shopping increases profits in certain parts of the year, such as Starbucks selling Fall-themed beverages. Marketing benefit segments allows a company to target different benefit seeking customers with varying products. (Ex: Fitbit) 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
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?
MOM: Marketing Operating Model
Why is it important to understand whether a customer's state of desire for an offering is either in "needs, wants, or demands" state?
Needs are basic human necessities while wants are desires based on culture and individual preference. "Humans need food, but they may want a Big Mac." When a want is backed by buying power it becomes a demand.
Questionnaires can be misleading when using open-ended or closed ended questions. Give an example.
Open-ended questions allow customers to provide their own input. Close-ended make them select from a list that it is provided.
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?
People worry about privacy, assuming that marketers have huge banks of personal data. They are also worried about the misuse of this data, using it to track and influence our decisions. Big Data is, however, beneficial to companies by allowing them to more accurately direct their advertising and promotion.
What is "real-time" marketing and give an example of how advertisers are practicing it.
Real-time marketing is a process which allows marketers to engage customers inn the moment by linking brands
CHAPTER 2: What is the "Starbucks Experience" and how has it helped their company to grow?
STARBUCKS MISSION STATEMENT With our partners, our coffee and our customers at our core, we live these values: Creating a culture of warmth and belonging, where everyone is welcome. Acting with courage, challenging the status quo and finding new ways to grow our company and each other. Being present, connecting with transparency, dignity and respect. Delivering our very best in all we do, holding ourselves accountable for results. We are performance driven, through the lens of humanity. The Starbucks Experience is built around creating "an uplifting experience that enriches people's lives one moment, one human being, one extraordinary cup of coffee at a time." This idea is central to their brand and has allowed them to be more than just a coffee-shop, they are a home away from home.
What is a SWOT analysis and what can it reveal?
SWOT Analysis: Evaluates a company's overall Strengths, Weaknesses, Opportunities, and Threats Strengths: Internal capabilities that may help a company reach its objectives Weaknesses: Internal limitations that may interfere with a company's ability to achieve its objectives Opportunities: External factors that the company may be able to exploit its advantage Threats: Current and emerging external factors that may challenge the company's performance.
What is the advantage of a Social Media Center?
Social Media Centers provide information about what consumers are saying about a company and its products and thus allows them to gauge how they may want to change their product, marketing strategy, and advertising.
"Social Media has gotten nasty". Give an example. Why? Should there be restrictions?
Social media has been helpful in interacting with customers but this can also be dangerous. Bad reviews can effect a company's brand and influence other customer's opinions ex: Yelp
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 it too clear that they were tracking and analyzing data by using buying histories to find out when/if a customer had a baby on the way. This spooked many customers off, and made it clear that research can sometimes go too far.
Understanding Technological changes is vital for Marketers. Why and give an example?
Technological environment consists of forces that create new technologies, creating new product and market opportunities. It can provide great opportunities but also comes with certain dangers. Ex: cyber security
Define "Marketing Mix" and why is it important to a strategist to understand?
The Four P's Product, price, place, and promotion Product: the goods and services combination that the company offers to the target market Price: The amount of money customers must pay to obtain the product. Should be in line with the customer's perception of the product, but high enough to turn a profit. Place: Company activities that make the product available to customers Promotion: activities which communicate the merits of the product and persuade target customers to buy it The factors a company can control in order to increase its revenue or *The set of tactical marketing tools that the firm blends to produce the response it wants in the target market.*
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?
They performed market research and learned that people are not willing to sacrifice the taste, texture, and look of white bread despite the health benefits of wheat bread, so they added wheat while keeping the same characteristics. -This gained new, health-seeking customers without losing old ones
Patagonia used the slogan "Conscious Consumption" and "Don't Buy this Jacket? What was their strategy?
They want people to reuse and recycle their jackets because it is better for the environment but it is also good for their business. It makes people trust them more and shows off their brand as environmentally conscious.
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
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?
Yes they will 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
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.
