"Quiz" 1
Provide a definition for "what is Marketing?"
Engaging customers and managing profitable customer relationships
How does "marketing myopia" effect a sellers' ability to deliver value to their customers?
Marketing Myopia: mistake of paying more attention to the specific products a company offers rather than to the benefits & experiences produced by these products. It will make marketers lose sight of underlying customer needs, which diminishes the value of the product to their customers
"emotional branding" to moms had several key attributes identified to make an advertisement successful. What were some examles?
Nirvana Mom: everything is perfect Sacrifice: everything you've done for your kids Commiseration: being a mom is tough, Dad is stupid
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 their products/ads, more towards telecommunications such as online ads and apps, understand different demands from different geographic locations.
Describe elements of Buffalo Wild Wings marketing strategy. What is the key to their success?
"Guest Experience Captains", it is all very catered to the customers; they encourage them to stay as long as they way i.e. for the entire football game. They set up the restaurants to feel like a stadium, 60-70 flat screens, mini-game controllers, and captains go table to table to interact with guests. This encourages customers to stay longer, enjoy their experience, and come back in the future.
What are the eight elements in a marketing plan?
1 - Executive Summary: main goals, and recommendation 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
What are the five steps in the buyer decision process?
1 - Need Recognition: buyer realizes a problem or need 2 - Information Search: buyer is motivated to look for more information 3 - Alternative Evaluation: buyer evaluates alternative brands within their choices 4 - Purchase Decision: buyer decides what brand to buy 5 - Post Purchase Behavior: after the buyer purchases, if they take any further action based on satisfaction or if they will buy it again.
The Marketing Process (1.1) has four steps in creating value. What are they?
1 - understand the market place & customer needs and wants 2 - design a customer value-driven marketing strategy 3 - construct and integrated marketing program that delivers superior value 4 - engages customers, build profitable relationships, and create customer delight In return, capture value from customers
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?
A vast majority of Moms are on social media and go online to other moms or websites for recommendations for brands and such. Moms trust other moms, so if they like your product, using moms can exponentially increase the stores revenue and sales. But they also need to maintain their following and be fairly popular. But if a mom doesn't like a brand, they will share and it could hurt and decrease sales.
Why does "post-purchase dissonance" and "cognitive" dissonance occur to many buyers?
Almost all purchases end in cognitive dissonance (discomfort caused by post purchase conflict). This is because every purchase involves a compromise. Consumers feel happy about acquiring the benefits of the chosen brand but sad about losing the benefits of the unchosen brand. Thus, they might experience post purchase dissonance for every purchase.
Many things effect a "buying decision." "attitudes of others' and unexpected situational factors' occur that might alter your choices. What are they and how can they have you change?
Attitudes of Others: your decisions are shaped by the opinions of people important to you Unexpected Situational Factors: consumers may form purchase intention based on a factor, but unexpected events may change purchase intention. Ex: economy might take a turn for the worse
How does an advertiser create "behavioral targeting"?
Behavioral targeting is based on consumers internet searches. Marketers use the online data to target ads and offers to specific consumers. For example if you have an 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.
Customer relationship management relies on good measurement of "touch points". What is a touchpoint analysis and what does one discover from TPA.
Because it is the big data era, companies use this information to analyze "touch points" which include customer purchases, sales force contacts, service, and support calls, web and social media visits, satisfaction surveys, credit and payment interactions, market research studies - every contact and interaction between a customer and a company.
The chapter talks about "brand essence." What is it and why is it vital for a company to understand it?
Brand Essence: core characteristic which defines a brand, emotional & based on feelings, separates your brand from others, intangible and unique to your brand. Sets the company apart form its competitors, The heart of all organization's operations
Name 3 Marketing Information data bases you access in the Mendoza Business Library workshop.
Business Insights: Essentials (GALE) Mergent Intellect IBISWorld Factiva
What is a buying center? How do businesses 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 individuals and units that play a role in the purchase decision marking process. Important to understand this process because within the process there are various way in which it can take place; it is far from fixed. Additionally, the business marketer must learn who participates in the decision, each participant's relative influence, and what evaluation criteria each decision participant uses. Participants: Users - must use product/service Influencers - provide information for evaluating alternative products Gatekeepters - control the flow of information to others Buyers - contact the selling organization and place the order Deciders - final authority to purchase
How does Chick-Fil-A distinguish themselves from other QSR's?
CFA is very consumer based. They have performed up to standards with customer expectations because they have created a baseline for what their customers should expect. This stresses the importance of finding the needs and wants of customers and delivering these to the people better than their competitors do. They sense and respond to what people are looking for in the food market. "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 consumer might not necessarily know what 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 also saw that the "sea of red" cans 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. they also learned it's nostalgia that was what drove their consumers to buy their product.
Questionnaires can be misleading when using open-ended or closed ended questions. Give an example.
Close ended is like multiple choice or the answer is on the page, open ended is asking them to describe & give their own input. That said, researches should be careful about wording and ordering of the questions. They should use simple, direct, and unbiased 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 don't become defensive
In non-probability sampling, what is the difference between convenience, judgement, 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 judgement to select population members who are good prospects for accurate information. Quota Samples: the researcher finds and interviews a predetermined 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: increasing profits by reducing costs, while charging industry-average prices OR increasing market share by 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, efficient logistics, low-cost base, and a way of sustainable cutting costs below those of competitors. Disadvantages - not unique, and other competitors will copy your cost reduction strategies. Differentiation: making your products or services different from and o=more attractive than those of your competitors. Advantages - good research, development, and innovation, ability to deliver high-quality products or services, effective sales & marketing Disadvantages - attack on several fronts by competitors pursuing focus differentiation strategies in different market segments, cut off many potential customers. 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.
Outline the factors that influence consumer behavior and give examples.
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 Class. Social: groups and social networks; family; roles and status. Personal: age and life stage; occupation; economic situation; lifestyle; personality and self-concept. Psychological: motivation; perception; learning; beliefs and attitudes
"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: the value of the entire stream of purchases a customer makes over a lifetime of patronage. Customer Equity: total combined customer lifetime values of all the company's customers. 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; more loyal the firm's profitable customers, the higher it's customer equity; view customers as assets that need to be managed and maximized.
The new trend of "customer-generated marketing" has had a big impact on companies marketing plans and messaging. What is it?
Customer-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. Consumers are having a bigger impact and control over their experiences. Companies can make their messages more personalized as well, because it is more through the customers.
How should marketing departments and public relations handle a "crisis situation"?
Departments have to be proactive to prevent further damage. Must put out a message and stick to it. Take responsibility and protect the brand. Stick to the mission statement and company values, prevent further damage, and attempt to resolve it as quickly as possible. Do what you can to keep customers happy.
How does the corporate B2B buying process differ from B2C process? What steps are different in each?
Derived Demand: business demand derives from the demand from consumer goods Inelastic and More Fluctuating Demand: demand for business products is not much affected by price and changes Far Fewer but Far Larger Buyers: far more complex buying decisions, the process is longer and more formalized B2B Buy Process: 1 - recognize the problem 2 - develop product specifications to solve the problem 3 - search for and evaluate possible products and suppliers 4 - select product and supplier and order product 5 - evaluate product and supplier performance
As the economy shifts, why is income distribution important to understand income levels?
Different classes are attracted to different things, the economy continues shifting everyday. Rich are richer, middle class is smaller, and poor are still poor, so there is a tier market. Companies need to figure out what tier to market to.
How were DuckDuckGo strategist going to take on the big people like Google and Facebook? Why did they pick their strategy?
DuckDuckGo aimed to provide their users with privacy, something it seems the larger companies couldn't provide. It is geared towards users who don't want their data to be tracked and stored. It appeals to the "privacy-minded" users.
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 has grown rapidly in recent years; shaves transaction costs and increases efficiency Reverse Auctions: put purchasing request online - suppliers bid Trading Exchanges: companies work collectively to facilitate the trading process Company Buying Sites: post buying needs and invites to bids, negotiates terms, and places orders. B-To-B Digital and Social Media Marketing: uses these to engage business, customers, and manage customer relationships anywhere, anything. Target individuals in businesses who affect buying decisions Media Marketing: uses these to engage business, customers, and manage customer relationships
ESPN is a part of the Disney portfolio. How does it affect their business and their portfolio?
ESPN brand essence is also tied to Disney's. ESPN accounts for over half of Disney's total operating income. ESPN is a big enough portfolio that it is torn between complying to its own essence or following Disney's. Mission: serve sports enthusiasts wherever sports are watched, listened, discussed, debated, read, or played. If customers don't have some beliefs as Disney it can lead to disconnect from the ESPN portfolio. But ESPN's portfolio is big enough to stand on its own without Disney and should be able to create its own essense.
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
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. Causal 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 are highly influential among each other. The family is the most important consumer buying organization in society and it has been researched extensively. The "modern family" composition and roles are changing as well. It is important to cater to the different familial roles.
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 of Competitive Environment: competitive rivalry supplier power buyer power threat of substitution threat of new entry Key sources of competitive pressure within an industry. By thinking about how each force affects you, and 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
What is a "Focus Group" and why would you use one?
Focus Groups are small groups of people who meet with a trained moderator to talk about a product, service, or organization. Participants are normally paid a small sum for attending and the deeper feelings and thoughts. Researchers and marketers watch the group discussion from behind a one-way mirror and video record sessions for alter 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.
What it "generational marketing" and what are the good points and bad points of this approach?
Generational Marketing: marketing approach that uses generational segmentation in marketing communication Good Points - allows marketers to better identify a product with a generation, provides value specific to generation, and 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
Four examples of segmentation are geographic, demographic, psychographic and behavioral. Describe the different types of and give examples of each.
Geographic: taking a region of the world/country and assuming they will be attracted to a product for the sole reason of geography. EX: target offers smaller stores for urban neighborhoods Demographic: age, life-cycle state, gender, income, occupation, education, religion, ethnicity, generation. EX: McDonald's assigns brand managers to segments of different demographic groups Psychographic: lifestyle, personality EX: psychologically, some people want to be part of a group; shape brand to appeal to this group - Anthropologie sells a lifestyle brand to which young women customers aspire Behavioral: occasions, benefits, user status, usage rate, loyalty status. EX: Starbucks pumpkin spice lattes in the fall; FitBit making products to benefit preference of different segements
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?
GoldieBlox attempts to encourage female interest in STEM education by combining research showing stellar verbal skills among girls and their tendency to learn better by interacting with stories with toy construction sets. If successful, they could increase female interest in STEM education by tweaking and reframing gender stereotypes.
Many products considered "habitual-buys". Compare that to a "variety seeking buying behavior" environment. What are the characteristics?
Habitual-Buys: low consumer consumer involvement and few significant perceived brand differences, usually with low cost, frequently purchased products, ex: table salt Variety-Seeking Buys: low consumer involvement but significant perceived brand differences, consumer might switch brands a lot, ex: cookies BUT they switch brands NOT because of dissatisfaction but for variety sake.
How do business buyer behaviors vary in their decision process and decision criteria?
Heavily influence by factors in economic environment - primary demand, economic outlook, cost of money; supply of key materials; technological, political, & competitive developments in environment; culture and custom
How does IBM sales model for Business to Business relationship selling work? What are the pros and cons of this business model? What is "solutions selling"?
IBM partners with a smaller set of big buyers to solve their complex analytic problems. They found that customers need total solutions to increase data issues. Pro - loyal and happy buyers Con - not a large market Solutions Selling: is buying a packaged solution from a single seller, avoiding all separate decisions involved in a complex buying situation. Complex, difficult to implement and expensive
Why was the ALS ice bucket challenge so successful?
In part, it was the real time marketing and good timing along with their story. They spent nothing on their campaign, but it became a viral trend that got everyone's interest. It got people involved and made them feel like they were making a difference since they had to make the choice to participate, and even created a type of community within the participants. It was also when social media was starting to get big and Facebook was very popular. It spread rapidly.
The "rate of product adaption" varies from person to person. Why is that and where does one usually profile? Name the five stages or types of adopters
Innovators Early Adopters Early Mainstream Late Mainstream Lagging Adopters 5 Stages of Product Adoption: 1 - Awareness 2 - Interest 3 - Evaluation 4 - Trial 5 - Adoption Want to target innovators and early adopters because they influence the later adopters
International Marketing manners are important to practice and to understand. Why?
International business requires knowledge of customers and culture in order to form strong relationships
Understanding technological changes is vital for marketers. Why and give an example.
It creates market opportunities, the new technology also has allowed for more targeted marking as well. Example: instagram ads, facebook ads, amazon fresh
Marketing teams often add someone with psychology expertise in order to understand the consumer. Why is that role important what do they study?
It helps provide insight into the psychology and figuring out how and why people purchase their products. They study factors such as motivation, perception, learning, beliefs, and attitudes.
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 person's 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 that can be served through special products or marketing approaches. People buy the values and lifestyles those products represent.
When might a business desire fewer customer over more customers in developing their marketing plan?
It's expensive to have a relationship with lots of people. Luxury Marketing: I have a higher value with a limited production Deutsche Bank only wants business customers because few super customers are easier that many little ones. Its just a few huge accounts rather than many small accounts, more money, less people to manage.
Why is it important to understand whether a customer's state of desire for an offering is either in "needs, wants, or demands" state?
It's important to understand the difference between the three: Needs: states of felt deprivation, basic part of the human makeup Wants: form human needs take as they are shaped by culture & individual personality Demands: human wants that are backed by buying power Understanding the customer's needs, wants, and demands better enables the company to best serve them and build a relationship with them
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 beings 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. Develop customer insights, make marketing decisions, and manage customer relationships.
Before one can develop a good marketing strategy it is important to perform a "situational analysis." What are the key components in a SA?
Macro Level External Market: political, legal, socio-cultural, technological, economic Internal Environmental Assessment: corporate culture, firm organization, HR policies, and capabilities Analyze Competitive Strategy: position in industry, strengths, weaknesses, threats, power SWOT Analysis: a convenient way to summarize key findings into a matrix of strengths, weaknesses, opportunities, and threats
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 compnay?
Maintains product quality - quality assurance; upholds brand image of high quality. Make suppliers meet rigorous standards and always have a least three at a time in case there are any issues in the supply chain.
How does B2B sales handle segmentation?
Many of the same factors as B2C like: operating characteristics, purchasing approaches, situational factors, and personal characteristics.
"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. 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, service 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. 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 data from outside provides a good starting point, however companies can also buy secondary data from outside suppliers. Internet search engines can 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. 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 their brands.
Provide a definition of key terms: "market" and "marketing management"
Market: 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: engage, keep, and grow target consumers by creating, delivering, and communicating superior customer value.
What is "market segmentation" and why is it an important first step?
Marketers realize that they cannot connect or appeal to all customers, at least not in the same way. Break customers up into "segments." Market Segmentation: dividing a market into a distinct group of buyers who have different needs, characteristics, or behaviors and who might requites separate marketing strategies or mixes
"alternative buying evaluation" is an important process brand marketing teams must study. Why and what would one learn?
Marketers should study buyers to find out how they actually evaluate brand alternatives; if they know what processes go on, they can take steps to influence the buyer's decision.
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. Ex: Netflix maintains a bulging customer database and uses sophisticated marketing analytics to gain insights, which it then uses to fuel recommendations to subscribers, decides what programming to offer, and even develop its own exclusive content in the quest to serve its customers better.
In customer-engagement marketing, why is there a shift of "marketing by intrusion" to "marketing by attraction."
Marketing 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, experiences, and community. Greater consumer power means that companies can no longer rely on marketing by intrusion. They must practice instead marking by attraction. Hence, most marketers now combine their mass media marketing efforts with a rich mis of online, mobile, and social media marketing that promotes brand-consumer engagement, brand conversations, and brand advocacy among customers.
Measurable, accessible, substantial, differentiable, and actionable are the five requirements for a segmentation exercise to be successful. Describe each characteristic features.
Measurable: the size, purchasing power, and profiles of the segments can be measured. Accessible: the market segments can be effectively reached and served Substantial: market segments are large or profitable enough to serve Differentiable: the segments are conceptually distinguishable and respond differently to different marketing mix elements and programs. Actionable: marketing strategies on the segment have the potential to be effective
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, & consumers). Gov't Publics - possible HIPPA violation Local - communities use FitBit as workplace incentive. Competition - Apple, Google Macroenvironment: societal changes - economy, nature, technology, politics, culture, and demographics. Tech - people know how to use it & originally innovative. Economic Value - people are looking for things with high economic value, today these are expensive, but less so than apple watches
Is perception more important than reality in marketing? What makes a "complex buying" process different?
Perception IS more important than reality in marketing. Consumer use complex buying behavior when they are highly involved in a purchase and perceive significant differences among brands. Consumers may be highly involved when the product is expensive, risky, purchased infrequently, and highly self-expressive
How has the "Great Recession" affected marketing and what changes have come about?
More sensible consumer spending; "value" has become a watchword. People are maybe more cautious and thoughtful about their purchases
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.
Mt. Dew focuses on targeting younger, caffeine-reliant dare-devils. They have implemented it through using social media sites and encouraging customer 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 is the "Starbucks experience" and how has it helped their company to grow?
Objective: engaging customers in a meaningful way and creating value for them. It's an uplifting experience that enriches people's lives one moment, one human being, one extraordinary cup of coffee at a time. It provides a third place, one away from home and work. Customers flocked to Starbucks, and met this demand by opening up more stores. The success drew in competition, so they started rapidly growing in the number of stores. They then lost sight of their core mission and values which led them to renew their mission and experimenting with new store formats. They have seasonal drinks that people love and have created quite a large, loyal customer base.
What are the 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 factors, and checking for differences in group responses.
"Social Media Has Gotten Nasty" Give an example, 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. People typically go online first when looking for recommendations and reviews especially now. Tweets to viral - Southwest dragging their customer off the plane.
BCG consulting uses a "portfolio analysis" methodology for their customers showing "growth share matrix." How does it work and what can you communicate it with?
Portfolio Analysis: the process by which management evaluates the products and business that make up the company Will want to put strong resources into its more profitable businesses and phase down or drop their weaker ones. Identify SBUs, assess their attractiveness, and decide how much support each deserves. Communicates what shape the company is in, what direction they want to take with SBUs according to growth-share matrix. Growth-Share Matrix: a portfolio-planning method that evaluates a company's SBUs in terms of market growth rate and relative market share. - Star: high market growth rate & high relative market share - Cash Cow: Low market growth rate & high relative market share - Question Mark: high market growth rate & low relative market share - Dog: low market growth rate & low relative market share
Describe the steps in the typical B2B buying process. What is a RFP, QA process and VPA (performance review).
Problem Recognition: someone in the company recognizes a problem or need that can be met by acquiring a specific product or service General Need Description: describes the characteristics and quantity of the needed item Product Specifications: determines the best product characteristics (based on cost/durability/quality). Supplier Search: involves compiling a list of qualified suppliers to find the best vendors. RFP - Request for Proposal/ Proposal Solicitation: is the process of requesting proposals from qualified suppliers a QA process is a quality assurance test to make sure the products meet all of the specifications and looks for any mistakes Supplier Selection: is when the buying center creates a list of desired supplier attributes and negotiates with preferred suppliers for favorable terms and conditions Order Routine Specification: the buyer writes the final order with chosen suppliers, listing the technical specifications, quantity needed, expected time of delivery, return policies, and warranties. Performance Review: may lead buyer to continue, modify, or drop the arrangement ( a performance review is when the buyer assessed the supplier and considers the future)
What is the difference between a Product-Oriented and a Marketing Oriented description of a company?
Product Oriented: what the product is, not about what it will do for the customer. Chipotle: we sell burritos and other Mexican food Marketing Oriented: shows what value the customers will receive from choosing their product. Chipotle: we give customers 'Food with Integrity' served with a commitment towards the long-term welfare of customers and the environment
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: 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: 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. Ex: Lego Movie #EverythingIsAwesome; #oscars during Academy Awards; #ALSIceBucketChallenge
When using mechanical instruments for research, what is biometric measuring and neuromarketing?
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 level, and facial & eye movements), can provide companies with insight into what turns consumer on and off regarding their brand and marketing.
What is a SWOT analysis and what can it reveal?
SWOT Analysis: an overall evaluation of a company's strengths, weaknesses, opportunities, and threats. The internal analysis reveals the company's strengths and weaknesses while external analysis points to potential opportunities and threats - capabilities
Define "marketing mix" and why is it important to a strategist to understand?
Set of tactical marketing tools - 4Ps - Product - Price - Place - 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. It also constitutes the company's tactical tool kit for establishing strong positioning in target markets.
"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 (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; provides consumers with a complete 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; successful because they are allowing marketing to lead the way of their growth; high prices but high quality products
In probability samples. what is the difference between random, stratified, or cluster sampling?
Simple Random Sample: every member of the population has has a known and equal chance of selection Stratified Random Sample: the population is divided into mutually exclusive groups (ie age) and random samples are drawn from each group. Cluster (area) Sample: the population is divided into mutually exclusive groups (like blocks) and the researcher draws a sample of the groups to interview.
How is "Social Class" measured in the United States? Is it an important distinction?
Social class is determined by a combination of occupation, income, education, wealth, and even more 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.
Ordering and wording can skew a questionnaire. How does it do that?
Some questions might lead to the respondents responding a particular way. The order needs to be in such a way that open ended questions come last so they will be open and honest. The close ended questions should be easy and come first. It is all mental, but important because of how the respondents will interact and respond to the questionnaire
Name the four steps of market research. Why is step 1 most critical?
Step 1: defining the problem and research objectives probably the most difficult but also most important because it guides the entire research process. It is frustrating and costly to each the end of an expensive research project to learn you identified the wrong problem Step 2: developing the research plan and collecting the information Step 3: implementing the research plan - collecting and analyzing the data Step 4: interpreting and reporting the findings.
Three types of buying situations are straight rebuy, modified rebuy, and new task rebuy. What difference in approach, costs, and structure does each have?
Straight Rebuy: buyers reorder something without any modifications; handled on a routine basis; to keep customer "in" suppliers try to maintain customer engagement and product/service quality Modified Rebuy: buyer wants to modify product specifications, prices, terms, or suppliers; "in" suppliers become nervous and feel pressured to put best foot forward to protect an account New Account: company buying product or service for the first time, The greater the cost or risk, the larger the number of decision participants and greater the company's efforts to collect information. Marketer's greatest opportunity and challenge
How does "subculture" play a role in understanding the consumer? What is total marketing strategy?
Subculture: a group of people with shared value systems based on common life experiences and situation. Many brands now target specific subcultures with marketing programs tailored to their specific needs and preferences. Total Marketing Strategy: integrating ethic themes and cross culture perspectives within a brand's mainstream marketing, appealing to consumer similarities across subcultural segments rather than differences.
What is a "supplier development" program like Cargill and McDonald's practices and why is it an important tool to improve your business process.
Systematic Development of Networks for Supplier: partners to ensure an appropriate and dependable supply of products and materials for use in making products or reselling them to others. Important in preventing low inventory and such
"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?
Target Market: set of buyers who share common needs to characteristics that a company decides to serve Target Marketing: identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each. This way, they can focus on where they will make their money. they can't appeal to all their customers the same way, pice their battles
What is the advantage of a Social Media center?
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 will to a product, the company will continue their marketing platform in a similar way. On the contrary, is the opposite of this. Often when people are outraged with a product or service, they will turn to social media. Angry posts, videos, and pictures regarding a company company can be put on the internet in a matter of seconds and get a lot of attention fairly quickly. This can be detrimental to a company. By having these command centers, companies and 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. It also allows the companies to get ahead and actually get some positive endorsement when they turn to social media to try and fix a situation with an unhappy customer.
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 buying more and more of them. This way the environment is protected and more people can enjoy it. Saying don't buy it is like reverse psychology and more people bought it.
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 learned that consumers have distinct opinions about the taste of their product and the texture of chips as ell as the bag type. They made a chip that retained the well-liked qualities of Ritz and those of chips. They studied not only their own customers but also the consumers of chips
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 did they change their product?
They learned that people still liked the texture and taste of white bread, but were switching to whole wheat/grain bread for health benefits. Because of this, they developed a product that had the taste and texture of white bread, but had whole grains in it so they could get the best of both worlds
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?
They told her family she was pregnant and even the near due date based off of the history of purchases she had. Her parents didn't even know, and accused Target of stuff. This shows that the research can be accurate and useful, but not in all situations. They maybe had the right idea, but need to gear it differently so something like this doesn't happen. They also don't always know enough about the customer to divulge that kind of information.
Netflix uses analytics to help improve customer satisfaction. What do they do?
They track 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 (ratings, searches, and plays) on member viewing behaving and sentiments; purchases customer data from Nielson, Facebook, Twitter, etc; survey new customers on movie & TV preferences; ask existing customer to rate whatever they watch
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?
This follows their mission statement of wanting to create a more intimate and friendly society that feel connected and welcoming to all. Facebook believes that in order for a product to reach its highest potential, many people need to weigh in on their opinions. "The best way to advance the technology is to work on it as a community." Also because it is so successful, it gains most if not all of its significant profit through advertisements that pay Facebook to be displayed. They want to create a connected society and they aren't in it to compete, they don't aim to profit off of their technological advancements, they want to help the world grow and be more connected.
Proctor and Gamble are strong advocates of treating their customers like partner. What are they doing to demonstrate that and how do they make sure their clients are successful?
This program lets P&G treat their customer not only as their partners, but as their family. Rather than focus solely on the sales of P&G products, their CBD team makes sure that the stores are focusing on "mutually beneficial relationships" so they can both improve their sales and respective customer relations. P&G can only be as successful as their customers and rely on them for that.
What was the psychology that Patagonia used in their campaign of "Don't Buy This Jacket"? Do you think it was effective?
This proved that Patagonia genuinely cares about the environment and kind of tricked customers, by telling them to not buy their product. It's a little backward, but it's appealing and can be confusing at first. Ultimately, it makes the customer want to contribute to the brand and help them with their mission of environmental awareness and being more ecofriendly.
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 researchers might use sophisticated techniques to probe our deepest feelings, track our internet and mobile device usages, 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.
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 compare?
Users of social media to create connections with business associates. Share research, information, plans, etc. with other scientists. Use social media to tell compelling stories that bring the brand to different industry-specific websites that provide info and customer service. They also use social media platforms to engage customers and shape brand content. - GE blog called GE reports which features their research on sci-fi topics such as moon power.
How does a "value proposition" help the working relationship in a marketing exchange?
Value Proposition: mutual understanding, alignment goals. Become a part of the ecosystem; differentiate from competitors as parter, 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 (value chain); profitable by reducing expenses and being focused, less negotiations.
What is a "Value-Chain" analysis? Why is it important to perform one for a company?
Value-Chain: 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 a company's value chain is only as strong as its weakest link. Interdepartmental 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.
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 production 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). Important to understand because it allows you to incorporate the most value in each product which makes it more desirable to the customer. Gives the customer most utility if company understands the value their products will offer.
How was WOM influence risen over the past several years? What is an "opinion leader"?
Word of mouth influence has risen because of the increase of social networks and blogs. People are either sponsored by products or answer questions and vouch for specific brands that have worked for them. An opinion leader is a person within a reference group who, because of personal skills, knowledge, personality, or other characteristics, exerts social influence on others
What is a "Value Delivery Network?"
a network composed of the company, suppliers, distributers, and, ultimately, customers who partner with each other to improve the performance of the entire system in delivering customer value.
