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93 Cards in this Set

  • Front
  • Back
Branding: Line family branding
within one product line (axe body spray, body wash, etc)
Branding: 3 requirements of a brand strategy
1. Business strategy/plan
2. Deep customer insights
3. Determine the role of branding
Branding: Image vs Identity
Image: what you are perceived to be. Based on impressions & experiences of customers. Judgmental & selective. Influenced by external events. More difficult to manage
Identity: What/who you are. Name, symbol, color, logo. Values, Actions performances behaviors. Can and should be managed
Branding: 5 basic positioning principles
1. Consistent
2. Important
3. Unique
4. Enduring
5. Believable
Branding: 7 steps to brand strategy development
1. Determine exact short & long-term goals for brand
2. conduct stakeholder analysis
3. Develop customer driven segmentation with perspectives on competition & segment economics
4. Develop a brand vision
5. Develop a brand promise
6. Develop positioning, identity, & associated images
7. Develop brand promise & delivery model by using experience mapping
Branding: 4 components of a brand
1. Brand vision – fixed, internal
2. Brand promise – fixed, external
3. Brand delivery – variable, internal
4. Brand positioning – variable, external
Branding: Brand extension
use existing brand to launch a new or improved product. EX: coke zero
Branding: 4 things branding gives us
1. Direction (what should we pursue)
2. Leadership (what do we do when ____)
3. Purpose (why are we making this?)
4. Inspiration (we did it before now lets do this)
Segmentation, Targeting, Positioning Process – 5 steps
1. Strategy/objectives (SWOT analysis)
2. Segmentation methods (divide up market)
3. Evaluate segment attractiveness
4. Select Target Market
5. Identify & Develop Positioning Strategy (value, salient attributes, symbol, competition)
Segmentation/Positioning: 4 ways brands position
1. Value
2. Salient attributes (atmosphere)
3. Symbol
4. Competition
Segmentation Methods: Psychographic
Segment by how consumers see themselves.
-Self values (goals for life)
-Lifestyles
-Self concept/Self image
-VALS framework (used for predicting consumer behavior)
Segmentation: 6 segmentation methods
1. Geographic
2. Demographic
3. Psychographic
4. Geodemographic
5. Benefits
6. Behavioral
Segmentation: 5 points of Segment Attractiveness
1. Identifiable (who is the market?)
2. Substantial (too small = bad. Too big = bad.)
3. Reachable
4. Profitable
5. Responsive
Branding: Primary Packaging
Consumers use it.
Toothpaste. Coke bottle
Branding: Secondary Packaging
Wrapper or exterior carton that contains primary package
Different sizes/labels to promote NEW or “FREE _____ INCLUDED!”
2 things to do when choosing a global Marketing Strategy
We must do 2 things:
-Determine the target markets to pursue
-Develop a marketing mix for global markets
2 types of needs (Need Recognition)
1. Functional needs: performance of the product. Rain coat, food
2. Psychological needs: Personal gratification, makes you feel good
3 Types of Buying Situations
1. Straight Re-Buy
2. Modified Re-Buy
3. New Buy
4 B2B Markets
1. Resellers
2. Manufacturers
3. Institutions (schools, museums, religious orgs)
4. Government
4 C’s of Marketing
1. Consumer Wants & Needs (find out those needs & wants, make products to satisfy)
2. Cost to satisfy vs Price (game console + games + controller + TV + your other games you can’t play on it = cost)
3. Convenience to buy (Know how people like to learn about, experience, purchase similar products)
4. Communication vs Promotion (interact with customers. Social media, build a relationship)
4 types of consumer products
1. Specialty (strong preference, search for it. Designer clothes)
2. Convenience (no effort to evaluate. Commodities, little thought. Drinks, bread, soap)
3. Shopping (spend time comparing alternatives. Furniture, clothes, appliances..)
4. Unsought (products you don’t know about. EX: mobile phones in the 80’s)
4 Ways To Count Brand Equity
1. Brand Awareness
2. Perceived Value (relationship between costs & benefits… private labels)
3. Brand Associations
4. Brand Loyalty
Associated Service
nonphysical aspects of product
ex. financing, product warranty, product support, social media
B2B Buying Process:
1. Need Recognition (internal or external)
2. Product Specification (let suppliers know what we need)
3. RFP process (ask for bids)
4. Proposal, analysis, and supplier selection (find best supplier based on price & specs)
5. Order specification (finalize everything, specify everything you need)
6. Vendor/Performance assessment using metrics (evaluate)
B2B v B2C: Complexity of buying process
B2C: simple. Few people involved. Purchase decision based on fulfillment of benefits
B2B: complex. Many people involved
B2B v B2C: Demand of products/services
B2C: customers deem if their needs are not being met
B2B: changes with consumer demand, less price sensitive
B2B v B2C: Geographic concentration
B2C: global client base
B2B: supplier located near buyers
B2B v B2C: Relationship w/ client
B2C: impersonal, electronic comm.
B2B: personal relationships are important and nurtured
B2B v B2C: Size/Number of clients
B2C: many customers who purchase in small amounts
B2B: small number of customers, large orders
B2B v B2C: Supply Chain Complexity
B2C: Complex. Products move thru various channels to get to client
B2B: direct from supplier
B2B: 12 Sections of an RFP
1. Purpose
2. Background info
3. Scope of Work
4. Outcome & performance standards (targets, how will you monitor performance)
5. Deliverables (list of all products, reports, plans to be delivered to org with dates)
6. T&C (length, start, stop, renewals)
7. Payments, incentives, penalties
8. Contractual T&C (boiler plate)
9. Requirements for Proposal Preparation (outline of what/how the proposal should be set up)
10. Evaluation & Award Process (criteria to analyze & determine winner)
11. Process schedule (dates of eval process)
12. Contacts for RFP
B2B: 3 major factors in purchase decision
1. Supplier choice (reliability, brand, etc)
2. Personal & Organizational factors (hard for suppliers to know. Z worked with ADP before.)
3. Post-Purchase Evaluation of Product/Supplier (for Julia, ADP would get bad eval)
B2B: 6 components of The Buying Center
1. Initiator (Julia or Z)
2. Influencer (influences buying decision – pros/cons of product. Julia or Deb)
3. Decider (Z or Marcus)
4. Buyer (Danny)
5. User (Julia)
6. Gatekeeper (controls access to participants. Joann to Marcus)
Behavioral Segmentation
divides customers into groups based on how they use the product or service.
Benefit Segmentation
-Dividing up the market by benefits they get from the product
-Ex: buying Gatorade - running a marathon? Hungover? Good taste?
brand dilution
when brand extensions adversely effects consumer perceptions
ex. Cheetos lip balm
Many firms try to take their brands just one more step, only to find the extension hurts rather than helps the parent brand.
brand equity
set of assets and liabilities linked to brand add or subtract value (brand is a business)
brand extension
use of same brand name in the different product line
use brand name to sell more products by associating the brand with new products
• the firm can spend less on brand awareness
• positive consumer acceptance will spread to the new product and a synergy exists between the two products
• ex. Crest with toothbrushes, floss, mouthwash etc
brand ownership
1. manufacturer brands: owned and managed by manufacturer
ex. Nike, Coca-Cola
2. private-label brands: started & owned by resellers. Manufacturers not identified. Generic/store brand.
breadth
number of product lines offered by firm
TO INCREASE: capture new markets, increase sales
DECREASES FROM: slow/decreasing sales, eliminating outdated products
Components of Complexity of Products
Center: Core customer value
3/5 = Actual product (brand name, quality, packaging)
2/5 = Associated services (financing, warranty, support, social media)
Consumer Behavior
A sub-discipline of the broader field of marketing that focuses on understanding how consumers acquire, use, and dispose of goods, services, and experiences
Consumer Decision Process - Information Search – 3 main components
1. Perceived cost v benefit (time to research car vs candy bar)
2. locus of control
3. risk
Consumer Decision Process - Information Search – 5 risks
*risks that shape search, determine how you search for info
1. Performance risk
2. Safety risk
3. Psychological risk (how will I feel if the product does not convey the right image?)
4. Social risk
5. Monetary/financial risk
Consumer Decision Process: 5 Steps
1. Need recognition
2. Information Search
3. Evaluation of Alternatives
4. Purchase
5. Post-Purchase
Consumer Decision Process: Eval of Alternatives -- 3 components of decision heuristics
1. Price
2. Brand
3. Product presentation
Consumer Decision Process: Eval of Alternatives – 3 consideration sets
-once search is over, we create a “consideration set” from which we make our final decision
-Universal set: all possible choices, clothes can be bough from wal-mart to Armani
-Retrieval set: set of brands that come to mind when thinking about buying something (ex “pop” = coke, pepsi)
-Evoked set: set of brands that pop into mind that you most likely will use (ex “lunch on campus” = burrito king, jimmy johns)
Consumer Decision Process: Eval of Alternatives – 4 Evaluation Criteria
1. Determinant attributes (product/service features that are important, how brands are different)
2. Compensatory Decision Rule (trade offs & %... EX: McDonalds cheap negates Bks quality)
3. Non-Compensatory Decision Rule (1 or 2 overriding factors. EX: regardless of how awesome iPhone is I don’t have $$$ to buy one)
4. Decision Heuristics (some people don’t have rules, just feelings. Price, brand, product presentation
data mining
using statistical analysis to find relationships among variables/data. EX walgreens card/coupons
Data warehousing
collecting tons of info on clients
depth
number of products within a category
TO INCREASE: boost sales, fight off competitors
TO DECREASE: realign resources, eliminate low profit margin products
*Adding competing products in the same category can increase overall sales & profits
Segmentation Strategies (4)
1. Mass Marketing or undifferentiated (everyone is a potential client. Similarities of everyone. EX snickers – we all get hungry)
2. Differentiated (different offering for each target market – less risk)
2. Concentrated (focuses on ONE target markt. EX strawberry fields)
3. Micromarketing or one-to-one (products tailored to individual customers. EX nike)
Segmentation Strategy: Differentiated Targeting Strategy
-Different offering for each market target
-Lowers risk because we can now target each group and not worry about not fitting anyone/everyone
Factors Shaping Consumer Behavior – 5 types of situations
Social, Marketing, Situational, Psychological, Shopping
Factors Shaping Consumer Behavior – Psychological (5)
1. Motives (psych 101, why people buy. Maslow’s hierarchy of needs)
2. Attitudes (feeling towards something)
3. Perceptions (how we select/organize info)
4. Learning (experiences teach customers)
5. Lifestyle (how consumers spend time/money)
Factors Shaping Consumer Behavior – Shopping Sitch (5)
-Store atmosphere (unique layout, music, etc)
-Salespeople (well trained staff vs bad staff)
-Crowding (too much merch can drive people away
-In-store demo
-Promotions (5 for $5 etc)
-Packaging (looks good, people like it)
Factors Shaping Consumer Behavior – Situational (2)
Purchase Situation (buying gifts for friend vs girlfriend)
Temporal state (customer’s state of mind)
Factors Shaping Consumer Behavior – Social (3)
Family
Reference Groups
Culture
Global Entry Strategies: 5, organized from most risk & control to least
1. Direct Investment
2. Joint Venture
3. Strategic Alliance: Two different countries working together (Ex: Study abroad programs)
4. Franchising
5. Exporting
Global Entry Strategy: Direct Investment
Put all of your own money into it - 100% ownership
+ get all of profit
+ dont have to worry about intellectual property
- 100% of the risk
Global Entry Strategy: Exporting
Make product in home country and ship it abroad
+ limits risk
+ giving to other markets
- limited ROI
- hard to earn economies of scale in new markets
Global Entry Strategy: Franchising
Agreement between franchiser & franchisee
+Lowers financial risk
+Get to have management knowledge/marketing/brand
- Less control, franchise agreement needs to be clear
- Split profits
- May break away from main company
Global Entry Strategy: Joint Venture
2 companies pool resources together (Ex: Sony Ericson mobile phones)
+ splitting the risk
+ gain local insights
- giving away too much info
- could be creating a competitor
Globalization: 3 ways you have to adjust
1. Global pricing strategies: complicated, different roles in different countries.
2. Global distribution strategies: More costs with more middlemen. Must deal with different transport. Loss of quality control
3. Global communication strategies: languages, cultures, norms, dialects
Globalization: 4 key players
-GATT (general agreement on tariffs & trade)
-----> agreement, goal is to lower trade barriers, increase flow of goods
-WTO (world trade org)
------> sets the rules of global trade, trade agreements
-IMF (international monetary fund)
------> promotes international monetary cooperation & expanding trade
-World Bank Group
------> fights poverty, gives loans
Globalization: 4 main areas to assess global markets
1. Economic analysis using metrics (how the country stands economically, better economics = ^ chance of success)
2. Infrastructure & Technology
3. Sociocultural analysis
4. Government actions
Globalization: 4 ways it came about
1. Reduction of trade barriers
2. Easier to transport b/w countries
3. Standardization of laws (allow less restrictions)
4. Globally integrated processes (working together)
Globalization: Area 1 – Economic Analysis using Metrics
-Market size & population
-Growth rate (potential for the market)
-Real income (what can people afford?)
-GDP (market value of goods & services produced in a year)
-GNI (GDP plus net income earned from investments abroad)
-Purchasing Power Parity (differences caused by exchange rates)
-Human Development Index (measure of quality of life… life expectancy, education, incomes)
Globalization: Area 2 – Infrastructure & Tech
Ability to conduct business in a certain country is largely determined by that country’s infrastructure.
-Transportation
-Channels
-Communication
-Commerce
Globalization: Area 3 – Sociocultural Analysis
-Power distance
-Uncertainty avoidance (how the people take & deal with risks)
-Individualism
-Masculinity
-Time orientation (short-term? Long-term?)
Globalization: Area 4 – Government Actions
-Tariff (taxes for coming in)
-Quota (only a certain number can come in)
-Boycott
-Exchange control (how do countries control exchange rates?)
-Trade agreements (EU, NAFTA, CAFTA.. countries that partner together)
Globalization: Choosing Global Marketing Strategy
1. CULTURAL/Religious Differences (mcdonalds – people eat later)
2. SUBCULTURES within a country
3. View of product and consumer role: (levi’s here vs Europe)
4. How to adapt to the different markets? Different positioning: Levi’s cost $200 in Germany!
5. Needs of target market
6. Difference in technical standards (returns/exchanges, etc)
7. How to adapt to the language? (Nova in English vs Spanish)
8. Level of economic development
9. Literacy Levels
Globalization: Porter’s National Diamond Framework
COMPETITIVE ADVANTAGE OF NATIONS
1. Factor conditions (resources some countries have more than others)
2. Related & supporting industries (does one industry support another industry?)
3. Strategy, structure & rivalry in domestic market (how do companies fight each other in local markets? McDonalds fights Wendys, BK, so it is easy to fight MarkBurger)
4. Demand Conditions in domestic market (what do domestic customers want? Satisfy them first)
Goals of Qualitative Research: Explanation/Understanding
How does the product, service, experience "Fit in" to consumer's lifestyles ?
-How does consumptions intersect with cultural categories such as gender, race, family, globalization?
Market Research Process -- 3 things NOT to do in research
1. Ask irrelevant questions
2. Ask questions that have no answer
3. Ask questions about things you already know
Market Research Process -- 5 Steps
1: Define objectives & research needs
2: Design the research (what type of data do we need & how to get it?)
3: Data collection
4: Analyze data & develop insights (give the #s meaning)
5: Action plan & implementation
Market Research Process -- Two types of research
1. Exploratory
2. Conclusive
Market Research Process – Q’s to ask when Designing Research
1. Primary or secondary?
2. Qualitative, quantitative, or mixed? (most large research projects use BOTH)
3. Syndicated or custom?
4. Which will work with what we want to know?
5. Want to know how people feel about our products
Marketing Research
Set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can aid decision makers involved in marketing goods, services, or ideas
-reduces uncertainty
-link firms and environment
-respond quickly to competitors moves
-discover new products, services, ideas
-find out what customers want
-decide if a project would hit/miss
Marketing Research Process -- 3 questions to ask before you start marketing research
- Will the research be useful? (Have a goal with your research)
-Is management supportive of the research and will they abide by what it recommends? (Will the boss follow through?)
-How large/small will the research be? (depends on topic, amt of data needed, work..)
Marketing Research Process -- 4 types of conclusive research
1. experiments
2. survey
3. scanner
4. panel
Marketing Research Process -- 4 types of exploratory research
1. Observation
2. In-Depth Intervies
3. Focus Groups
4. Social Media
Marketing Research Process -- Conclusive Research Definition
provides the information needed to confirm preliminary insights and which managers can use to pursue appropriate courses of action. Quantitative methods
Marketing Research Process -- Data-Collection: 4 types of Qualitative Research
1. Focus Groups
2. In-Depth Interviews
3. Observations
4. Shopping with Consumers (SWC)
Marketing Research Process -- Data-Collection: Exploratory vs Conclusive Research
Exploratory: informal, qualitative
Conclusive: formal, qualitative
Marketing Research Process -- Data-Collection: Types of Secondary Data
1. Inexpensive External Secondary Data (free or cheap like census, internet)
2. Syndicated External Secondary Data (Research purchased from firm)
3. Scanner data (quantitative research of purchases)
4. Panel Data (info collected from a group of consumers over time)
5. Data warehousing & Data Mining (loyalty cards)
Marketing Research Process -- Exploratory Research
Attempts to begin to understand phenomenon of interest, gets initial early info so we can formulate the research objectives, more informal, qualitative. What IS the problem??
Marketing Research Process – 5 Action Plan Components
1. Executive Summary (MOST IMPORTANT)
2. Body (why we did this, how, why it’s good)
3. Conclusions (big ideas that came out of research & what needs to be done)
4. Limitations (was research optimal?)
5. Supplements (tables, figures, graphs)
Marketing Research Process – 6 Action Plan Qualities
1. Short
2. Interesting
3. Methodical (cover ALL main issues)
4. Precise & error-free
5. Appropriate for the audience
6. SOLID RECOMMENDATIONS
Modified Re-Buy
-- buyer has purchased a similar product in the past but has decided to change some specifications, such as the desired price, quality level, etc
-- Preferred supplier - 80% chance you will be used again
-- The pre-existing supplier has the inside track, so must work lots harder to wow them
-- Create opportunities for “Out Suppliers”
-- New products have come to the market so they re-evaluate (iphone vs blackberry)
New Buy
-- a customer purchases a good or service for the first time
-- the buying decision is likely to be quite involved because the buyer or the buying organization does not have any experience with the item.
-- You have to go through the entire B2B buying process
-- Sales people are very important, tell them exactly what they need to know
Role of the Marketer
Convert wants into needs. Ramp up consumer desire.
Straight Re-Buy
-Products you buy all the time, you don't think about it
• Buying additional units or products that have been previously purchased
• Most B2B purchases fall into this category
• “Out suppliers” can cut in with free samples