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212 Cards in this Set
- Front
- Back
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What is marketing?
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-An ongoing process
- That creates, communicates, and delivers customer-valued offerings -with an exchange - To make the customers, organization, partners, and society satisfied |
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What is the marketing process?
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1. Understand (company, customers, competition, context)
2. Plan (objectives, value proposition, target marget, positioning, resource requirements, forecasted financials) 3. Implement (4 Ps/Marketing Mix: Product, Price, Promotion, Placement/Distribution) 4. Follow-Up (performance vs objectives, performance vs resources used, lessons learned, adjustments) [5. repeat] |
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What is value?
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Quality for price... what you get for what you give up compared to competitors
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How does marketing add value to an organization?
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1. By identifying what customers want
2. By determining competitively advantageous positions for offerings in the marketplace 3. By implementing the marketing mix needed to attract customers and communicate values 4. by developing measurements to judge success |
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How does a company identify what customers want?
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By market research and customer visits
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How does a company determine competitively advantageous positions for offerings in the marketplace?
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conjoint analysis, customer and competitor analysis
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How does a company implement the marketing mix needed to attract customers and communicate value?
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Consumer and communication research, product testing, channel audits
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How does a company develop measurements to judge success?
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consumer analysis and financial measurements
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What is a market-oriented approach?
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A market-oriented approach is when marketers make decisions based on what they've learned from customers.
It's a classic and safe approach to marketing. |
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What are the limitations of a marketing-oriented approach?
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1. It can be difficult to use for truly innovative products (i.e. DVDs in a VCR world)
2. Marketing opportunities can be missed during the over-analysis of customer needs. |
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Name and describe the eras of marketing and how it has evolved
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1. Production-Oriented: great and fair-priced products but no one knew about them
2. Sales-Oriented: do whatever it takes to sell the product... doesn't take into account what the customer wants as much 3. Market-Oriented: giving the customer what they want 4. Value-Based: thinking through what the customer values and giving it to them |
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What is a "market--driven" approach?
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- Classic Marketing Approach
-"Gives the customer what they want" -Matches well with markets containing products with high buyer familiarity -it assumes the buyer evaluates choices based on fixed value concepts |
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What is a "market-driving" approach?
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-It's an alternative marketing approach
-"helps customers learn what they want" -Matches well with rapidly evolving markets (like technology) -It assumes buyers can learn and evolve with new value concepts |
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What is Customer Relationship management and why is it important?
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- It's a scale (pyramid) of customer loyalty starting with lifetime value customers on the top, then customer loyalty in the middle, with customer satisfaction on the base.
- When a customer is satisfied they usually come back and build a lasting relationship with the company, driving sales for a long time |
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Name and explain some Pre-Experience ways that marketers can measure customer satisfaction?
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1. Mystery Shops
2. Involve Customers in business decision making 3. Listen to frontline personnel |
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Name and explain some Post-Experience ways that markets can measure customer satisfaction
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1. Satisfaction scales
2. Listening to customer feedback, especially complaints 3. Seeing the intent of the customer to refer the product 4. Evaluating product penetration (sales volume compared to other companies) 5. Judging price sensitivity (whether the price affects the purchase) |
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Define value proposition
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A promise of value to be delivered and a belief from the customer that value will be experienced.
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What is a company's micro-environment?
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Forces close to a company that have ongoing influence on how it serves its customers.
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T/F
In a micro-environment managers have little control. |
False!
In a micro-environment managers have SOME control In a macro-environment mangers have LITTLE control. |
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Name some factors in a micro-environment
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- owners
- employees - suppliers - channel intermediaries - collaborators |
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Name some factors in a macro-environment
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- competition
- technology - resources - legal/political - social cultural - economic - demographic - physical |
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Name an example of a social-cultural environment
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Extreme Commuters, tech fatales, surgery loves, working retired
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Name an example of how technology has changed the environment
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With the creation of tablets, app game creators win, traditional board game creators (hasbro) lose
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Name examples of social/cultural environmental trends
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- individualized products
- 24/7/365 consuming - individual privacy - environmental sensitivity - healthy |
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Name some demographic environmental trends
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- shifting composition of American households
- more women in workforce - US population becoiming more diverse - aging population |
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Describe reasons firms are attached to international markets
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*More Growth = More $$$*
1. Sizable new markets are available (because of a growing middle class) 2. Potential sources of raw material (Earth medals in China for cell phones) 3. Product innovations discovered abroad can be put into the home market (Brazil Disney and fairy wings) 4. Campanies can develop competitive skills abroad before entering the home market 5. Opportunities exist for production and distribution economies of scale (a company that engages in overseas markets are more likely to do well in economies of scale) |
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What are economies of scale
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Being able to run a company more efficiently through saving money on distribution and production
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What are a country's options for expanding into global markets?
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1. Indirect Exporting (another company distributes it for you)
2. Direct exporting (distributing the product yourself) 3. Foreign Licensing (grant the rights to a foreign company, ie Tokyo Disney) 4. Joint Venture (ie Euro Disney, successes and failures are shared) 5. Direct Ownershi (MTV directly owns companies but the people there run them) 6. Combination of them |
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How is country market assessment used to evaluate opportunities in another country?
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It's used to assess risks that would bar the company to succeed in a foreign market.
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Name and describe the assessments in a country market assessment.
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1. Economic - How big? How strong? (75c here is nothing, but it's a lot in S. Am... so Nestle candy there costs 5c)
2. Sociocultural - masculinity, individualism, power distance, uncertainty avoidance 3. Technology and Infrastructure - distribution and production channels need to be in place 4. Government - in China you have to be partnered with a Chinese company and share your technology with China |
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What is power distance?
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The measurement that looks at the level of inequality a society is willing to accept
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What are five important cultural dimensions?
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1. Power Distance
2. Uncertainty Avoidance 3. Individualism 4. Masculinity 5. Time Orientation (part of a country market assessment) |
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Distinguish between the most significant US trading partners
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Imports
1. China* 2. Canada* 3. Mexico* 4. Japan* 5. Germany Exports 1. Canada* 2. Mexico* 3. China* 4. Japan* 5. United Kingdom |
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List the 7 steps in the marketing planning process
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1. Define your business (sub)*
2. Make preliminary identification of business opportunities* 3. Complete market analysis 4. Determine objectives 5. Develop business case 6. Finalize marketing mix and implement 7. Follow up *denotes things that already should be done by the time you get involved in the marketing process |
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What is an SBU?
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- A Strategic Business Unit
- the part of the firm that can be managed separately for marketing purposes (ie Levi has different SBUs for their doctor's pants and their jeans) |
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Which key strategic decision areas are critical to the success of an SBU?
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Managers figure out...
- Targeted customers the SBU will serve - the products/services the SBU is able to provide - the SBU's value adding competencies that competitors don't have (have a mission statement) |
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What are the core competencies supporting SBU success?
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1. locational excellence
2. operational excellence 3. product excellence 4. customer excellence |
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What is a mission statement?
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A brief general description defining the basic need the SBU hopes to fill in the marketplace
(Who you are and why you exist) |
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How do you make preliminary identification of business opportunities?
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1. Identify potential segments (customer groups) that can be served
2. Identify how you can serve those targeted customers |
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How do you perform a complete market analysis?
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1. The 3 Cs (customers, company, competitors)
2. CD-STEPP (cultural, demographics, social, technology, environmental, physics and politics/law) 3. Portfolio Analysis (cash cow, watch dog) 4. SWOT (strengths, weaknesses, opportunities, threats) |
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Distinguish among SWOT (use Balance as an example)
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INTERNAL
1. Strengths - understand the college consumer better than anyone else, can deliver content faster than any other show on Trojan Vision 2. Weaknesses - very limited resources, limited professional expertise EXTERNAL 1. Opportunities - the web has more opportunity for success than traditional tv, partnering with a campus organization to show Balance 4. Threats - the health show is preparing to target nutrition as well, less college students are owning tvs? |
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How can you achieve your goals?
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1. select target markets
2. find points of difference 3. develop positioning strategy 4. set product objectives |
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How do you determine objectives?
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Points of Parity vs Points of Difference and then set a goal
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Identify characteristics of a strong objective
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- achievable
- measurable goal - timeline |
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Write an objective for Balance
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Increase viewership for Balance TV show by 10% by May 2013
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When developing a business case what are the six important questions you need to have answers to?
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1. Why now?
2. Do we understand this? 3. Who are the customers? 4. What's the value to the customer? 5. What image are we going to build? How are we going to do it? 6. Crunch the numbers |
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Name and define the two types of business forecasting covered in the class
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1. Qualitative: uses judgmental opinion and insight
2. Quantitative: uses historical data to calculate trends |
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What are some qualitative forecasting techniques?
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- Surveying buyers' intentions
- composite of sales force estimates - executive expert opinion - industry expert opinion |
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What are some quantitative forecasting techniques?
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- linear trend analysis
- market tests - statistical demand analysis - modeling |
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How do you finalize the marketing mix and implement?
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You do it with the 4 Ps: Product, Price, Placement, Promotion
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How do you follow up with a product?
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- Measure the efficiency and effectiveness
- Take corrective action |
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What is a strategic alliance?
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Any arrangement in which two or more firms combine resources outside of the market in order to accomplish a particular task or set of tasks
(look to another company to fill in the gaps for you) |
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What are some common reasons companies collaborate?
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1. Co-marketing alliances (J-Crew and Ray-Ban)
2. Product development alliances (Toyota + Ford = hybrid truck) 3. Global Distribution alliances |
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Name and describe the ways a strategic alliance can be formed.
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1. Joint venture - occurs when 2+ companies put resources into another company (Dow Chemicals + glass --> Silicon)
2. Equity sharing - occurs when 2+ companies agree to work together & to ensure this they purchase equity in each other 3. Licensing Agreements = one company gives its name, licensing, brand, etc to another company in exchange for a fee (ie Calvin Klein hardly makes any of the products with its name on it) |
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What's the difference between markets and industries?
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Markets are made up of buyers with needs.
Industries are groups of companies trying to attract those customers. |
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What is a competitor?
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A competitor is anyone who competes for customers, resources, revenues, and/or future opportunities with you.
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What are porter's 5 Competitve force?
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1. Threat of Entry
2. Threat of substitute products 3. Bargaining power of buyers 4. bargaining power of suppliers 5. Rivalry among firms |
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Give some examples of Threat of Entry
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(Barriers to entry)
-needing to buy a lot to break into the industry -high amount of product differentiation/product identity -high capital requirements -high switching costs (ie switching from facebook to another social networking site) -low access to distribution channels -competing against companies with a much higher experience curve |
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How do you get over the threat to entry?
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Innovation (Apple broke into the smartphone market with the iPhone)
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T/F
Once you're in a high level barrier company, you want the level to be lowered. |
False!
You want it to stay higher so you have less competition. |
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Explain the bargaining power of buyers
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When buyers don't have to have your product, they have a much higher bargaining power.
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What is the bargaining power of suppliers?
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When the supplier has 1 critical thing you need, they get to set the price/make the rules
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What was Kovacavich's analogy for rivalry among firms?
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Like being in a cage fight (you're in the industry and you can't really leave)
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What are characteristics of a sustainable competitive advantage?
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- based on the organizational assets and/or competencies
- matched with markets that value that advantage - aligned with weak competitor abilities - significant enough to make a difference - sustainable |
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What are the three ways to turn a competitive advantage into a business strategy?
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1. Cost leadership
2. Differentiation 3 Focus |
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What is the advantage of having a business strategy focused on cost leadership?
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- reduces bargaining power of suppliers
- reducers bargaining power of buyers - makes substitues less attractive (good for economies of scale, "no frills" products and services, very powerful but only one company can be the cost leader) |
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What is the competitive advantage of having a business strategy focused on differentiation?
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- reducers bargaining power of suppliers
- makes substitutes less attractive - reduces rivalry (Harley Davidson prides itself on being Harley Davidson) |
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What is the competitive advantage of having a business strategy focused on, well, focus?
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- makes substitutes less attractive
- reduces rivalry (occurs when you apply differentiation and cost leadership on a very small scale... ie Schold Ice Hospital in Canada specializes in Hernias) |
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What is manipulation?
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Providing illegitimate (below-the-line) reasons for customers to buy a product (playing on fears)
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What is influence?
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An honest (above-the-line) reason for why someone should buy your product (ie cheaper price)
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What is deception?
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Alternate forms of manipulation including misrepresenting information, excluding information, and lying
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What is redemptive knowledge?
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Something that customers should already know (coffee is hot) that could possibly mitigate manipulation or deception
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What is redemptive value?
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Something that may be misleading but offers a better benefit
(ie Santa Clause won't come if you don't eat your vegetables) |
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What are the two different consumer decision processes we covered in class?
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- Classic Consumer Process
- Updated Consumer Process |
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What are the steps in a classic consumer decision process?
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1. Awareness based on need recognition
2. Information search 3. Evaluation of Alternatives 4. Purchase 5. Post-Purchase (loyalty) |
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What are the steps in an updated consumer decision process?
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1. Initial consideration set based on need
2. Active evaluation where brands are added and subtracted 3. Moment of purchase 4. Post-purcahse experience 5. repeat or loyalty loop |
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What are the 4 broad influences on consumer buyer behavior?
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1. Marketing mix
2. Psychological influences 3. Situational influences 4. Socio-cultural influences |
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Describe marketing mix influences on the four broad influences on consumer buyer behavior.
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Companies's attempt to use the marketing mix to sway consumer decisions
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Name and explain situational influences on the four broad influences on consumer buyer behavior.
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(happens when you buy)
- purchase situation (why shopping) - shopping situation (service, lines, etc) - temporal state (time) - social surroundings (friends, alone, etc) - antecedent state (mood) |
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Name and explain socio-cultural influences on the four broad influences on consumer buyer behavior.
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- Culture (America)
- Sub-culture (young adult, Catholic) - Family (single, daughter) - Reference groups (opinion leaders I follow, i.e. John Stewart or Trojan Vision) - Social class (education, where you live, values) |
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Name and describe the psychological influences on the four broad influences on consumer buyer behavior.
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- motivations (Maslow's hierarchy of needs... ultimately needs drive purchases)
- perceptions (what you sense... do people see an ad? pay attention to it? understand it? remember it?) - beliefs and attitudes (how people feel about a certain stimuli, difficult to change... ie USC doesn't like UCLA... to change add new product characteristics or show relevance) - lifestyles (extrovert vs introvert, social activities) - learning patterns - self-concept (how we see ourselves) |
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What is low learning involvement?
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Something there is a lot of and you doesn't impact you too much... A quick decision
- razors, tissues, toothpaste, bread |
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How are marketing strategies influenced by low learning involvement?
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- high emphasis on price... consistent low price can hold customers
- consumers aren't interested in marketing message... so message needs to be clear and bold - convenience is important for distribution |
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What is a high learning involvement?
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Something there is not a lot of or will greatly impact the buyer... A thought-out decision
- college, car, house, doctor |
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How are marketing strategies influenced by high learning involvement?
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- Lower emphasis on price, higher emphasis on quality
- Buyers are interested in marketing messages, especially ones that give details - Convenience isn't as much of a priority... distribution channels not AS important |
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Contrast functional and phsychological needs?
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Functional = what it does
Psychological = how it makes you feel |
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Name the business market categories
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- Producers (originate products and services to make new products and services... General Mills, wheat --> cereal)
- Resellers (reselling a product in its existing form, stores/retailers) -Governments - Institutions (mostly non-profits like schools and hospitals) |
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Value Chain
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aka Market chain
The series of value-adding activities linked together to produce goods and services to satisfy client needs. |
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How does marketing fit into the value chain?
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The better that businesses can develop partnerships between suppliers and buyers the better both companies will be and they can develop a competitive advantage
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What are the business market demand traits?
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1. Derived Demand
2. Fluctuating Demand 3. Inelastic Demand |
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What is derived demand?
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a demand for a business product that relies on the demand for a consumer product (ie ATMs and Bof A)
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What is fluctuating demand?
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Anticipation of changes in consumer demand creates large changes in industrial demand (mostly for things taht have a long life span)
(Consumers the demand is usually ongoing but with businesses the demand spikes) |
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What is inelastic demand?
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The price increase has minor impact on product's final cost
A part or material doesn't have a substitute (ie a special lens for a projector.. if the projector costs $100 to make, and the price of the lens goes up $70... it'll only end up costing you an additional 15cents, cheap compared to price of the whole product) |
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What is joint demand?
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Demand for one business product is related to demand for another product
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What is an organizational buying center?
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Knowledgeable participants in an organizational buying action that share in the goals and rewards resulting from the decision
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When is an organizational buying center called upon?
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When
-they are the people who are going to be affected -they have a lot of knowledge in the area |
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What is a purchasing department?
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A purchasing department buys everyday things the company needs (ie paper, toilet paper, etc)
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Name and explain the roles in a buying center
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1. Gatekeepers = the administrative person who decides who gets to talk to who
2. Influencers = influence the decision of the ultimate decision maker and other members in the buying center 3. buyers =the person who handles the paperwork of the purchase 4. users =the person who consumes the product or service 5. ***decider = the person making the big decisions and the ultimate yes or no67 |
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Name and define the three ways of classifying business buying situations
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1. New task buying - first time or unique purchase situation requiring considerable effort on the decision maker's part
2. Straight rebuy - routine, low-involvement purchases 3. Modified rebuy - same product from new supplier or slightly different product from existing supplier |
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What are the common bases for labeling a business market segment?
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1. Geographic (what they make by where they are, ie Silicon Valley and tech)
2. Demographic 3. Usage Level (how frequently they buy our product) 4. Profitability |
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What is a market segment?
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Consumers who react similarly to a particular marketing mix
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What are the pros of segmenting a market?
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- concentrate marketing resources on potential buyers you have the best chance to win
1. smaller group with more defined needs that we can target 2. use limited resources on the customers where you have the most chance of succeeding with 3. identify common needs of the existing customers and better serve them |
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What are the cons of segmenting a market?
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- Too many small segments will lead to confusion. A segment that is too large will diminish a competitive advantage.
1. run the risk of being all things to all people 2. too many mixed messages and you don't stand for anything |
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Name and explain the five criteria to determine whether a market segment is viable
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1. Differentiation - how is your group similar to others in the group but different from another group of customers
2. Identifiable - you have to be able to find our group, ie grandparents can be hard to find because there is no set age... to get around this cast a broad message 3. Accessible - you have to be able to reach your segment 4. Responsive - they have to respond to your message, McDonalds has problems with adults responding to their ads 5. Significant - enough potential customers to make it viable |
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Define product feature
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Focus is on the product. Features are represented by product characteristics or properties.
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Define product benefits
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Focus ison the customer. Benefits are represented by the "job" being done
(What does it does for the customer/ the job you ned it to do) (what gets customers to buy the product) (you're not selling the drill, you're selling the hole" |
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Give an example of how VISA can be a product feature and product benefit
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Feature (how it performs) - VISA is accepted in thousands of locations
Benefit (the job you need it to do) - VISA makes it easier for you to make purchases |
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What are the common bases for segmenting markets?
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1. Demographic
2. Geographic 3. Psychographic 4. Behavioral 5. Affiliation or Occupation 6. Profitability |
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Define geographic segmentation
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- The market is divided into geographic units based on physical proximity
... can include regions, county size, climate, population density |
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What is an advantage of using geographic segmentation?
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find clear, tangible segments
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Define demographic segmentation
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- Divides market by personal tangible variables such as age, gender, family size, income, occupation, education, religion, nationality, and race
... information is easy to obtain and is often used with other segments |
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What is the advantage of using demographic segmentation?
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Find clear, tangible segments
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What is VALS?
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- Values, Attitudes Lifestyle Study
- a psychological profile tool that separates the popoulation into 8 categories including achievers, actualizers, believers, and strugglers |
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Define the psychographic segmentation
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- Psychographic segmentation relates to how people think, feel, and behave
... psychographic segments include social class, lifestyle, opinions, & personality characteristics |
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What is a limitation of psychographic segmentation?
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It's more difficult to use by itself, but very powerful when used in combination with something else
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Define behavioral segmentation
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- Divides market based on consumer's uses, knowledge or attitudes toward a product. Describes how consumer interact with a product.
... consider are customers ready for the product? how loyal are users? for what occasion is it purchased? from which media do buyers get their media? |
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Give an example of a product that's marketed for behavioral segmentation
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Cross pens - they are fancy pens for personal use, a gift, or a business that buys in bulk to use as institutional gifts
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Define affiliation segmentation
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Affiliation/Occuppation Seg.
- Identifies customer groups based on their profession or organizations to which they belong ... ie USC alumni, marines, teachers, republicans, protestants |
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Drawbacks of affiliations segmentation
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It doesn't apply too often, but it's very useful when it does apply
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What does benefits sought segmenting mean?
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Segment the market based on the types of benefits a group of customers wants
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What is a target market?
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A set of buyers sharing common needs or characteristics that an organization decides to serve
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J2K
1. Segment 2. Target 3. Position |
J2K
1. Segment 2. Target 3. Position |
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How is a segment different from a target or position?
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Segment = breaking up a larger groups into segments of people with similar characteristics
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How is target different from segment or position?
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Target = determining which of the segmented groups to go after
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How is position different from target or segment?
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Position = the marketing mix strategy to hit your target audience
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Aggregation strategy is another name for what?
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Undifferentiated marketing approach
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Sigle-Segment Strategy is another name for what?
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Concentrated marketing approach
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Multiple-segment strategy is another name for what?
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Differentiated marketing approach
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Define an undifferentiated marketing approach
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One that targets everyone
Difficult to find nowadays one size fits all marketing used to be salt but even now they have sea salt, etc |
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Define a concentrated marketing strategy
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A marketing strategy that is very focused on one particular segment.
Often used with limited resources |
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What is a differentiated marketing strategy?
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One that targets specific but varied markets
(ie Nike and golfers, women, swimmers, etc) Often used by bigger companies and marketers have a marketing mix for each segment |
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Name some criteria for selecting a target market
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- size/profit potential
- forecasted growth - match with core competencies of the company - ability to reach the segment - competitive intensity in the segment - customer satisfaction levels with existing choices in the segment - high or low barriers to entry - availability of resources |
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What is the number one factor in selecting what kind of target marketing strategy to employ?
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The availability of resources for marketing
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Define positioning
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Using the marketing mix to influence how your product is perceived in relation to competing products in the mind of the consumer
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Define re-positioning
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Re-thinking the product so it can be re-positioned
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What is the positioning template?
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OUR PRODUCT IS FOR define the customer, WHO describe the customer's need. OUR PRODUCT WILL SERVE THIS NEED BY describe points of parity, UNLIKE COMPETITORS WHO what competitors do. Only our company is able to POINTS OF DIFFERENCE
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Perceptual map is another name for
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A positioning map
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Define positioning
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Using the marketing mix to influence how your product is perceived in relation to competing products in the mind of the consumer
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Define a perceptual map
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- visually plot how various brands stand in relation to one another
- maps can be based on important product attributes (attribute rating method) or on the overall similarity or dissimilarity between products (overall similarity method) |
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Define re-positioning
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Re-thinking the product so it can be re-positioned
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What is the positioning template?
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OUR PRODUCT IS FOR define the customer, WHO describe the customer's need. OUR PRODUCT WILL SERVE THIS NEED BY describe points of parity, UNLIKE COMPETITORS WHO what competitors do. Only our company is able to POINTS OF DIFFERENCE
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Perceptual map is another name for
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A positioning map
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Define a perceptual map
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- visually plot how various brands stand in relation to one another
- maps can be based on important product attributes (attribute rating method) or on the overall similarity or dissimilarity between products (overall similarity method) |
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T/F
In an overall similarity method of perceptual maps, the closer the numbers are, the more similar the products are in the customers' mind. |
True! :)
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When is the attribute rating method for positioning maps used?
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When only 1 or 2 things determine which product a customer chooses (ie pain meds thing)
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How do perceptual maps help managers?
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- test where unmet customer needs potentially exist
- identify where competitors might be vulnerable - gain insights into how an under-perofrming product might be repositioned |
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What is the value of information determined by?
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- the decision maker's ability and willingness to act on the information
- the accuracy of the information - the level of indecisiveness removed - the potential variation in possible outcomes - the level of risk tied to a decision - the competitive edge gained - the cost of the information in time and money |
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What are marketing information systems? (versus market research)
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- People and processes that provide needed information to marketing decision on an ongoing basis
- once designed, automatically provided (data or info that you get or want to know on a regular basis to do your job better) |
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What is market research? (versus marketing information systems)
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Systematic process for uncovering key knowledge needed for a specific marketing management decision.
provided based on special requests (used to fill a specific need) |
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Examples of information gathered from a marketing information system
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- daily sales volumes
- number of product coupons redeemed - sales force performance in a given area - number of renewed magazine subscriptions - consumer price index updates - ratio of sales hits per outbound call |
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What are some considerations in building a marketing information system?
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- types fo decision each manager makes
- types of information required to make those decisions - types fo information mangers already receive - types of special studies periodically requested - types of information each manager would like to have, but can't - freqency/format - data analysis programs |
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What are the basic types of formal basic research?
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1. Direct observation (inexpensive)
2. Experimentation (change one variable, used to explain why something is happening) 3. Analysis of Purchase Data (looks for patterns that influence how the merchandise stores) 4. Survey Reserach 5. Focus Groups (target audience) 6. Individual interviews (used to addres sensitive topics that are better addressed one on one than in a focus group) |
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Direct Observation is (a) exploratory (b) casual (c) descripitve
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Direct Observation is (a) EXPLORATORY
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Experimentation is (a) exploratory (b) casual (c) descriptive
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Experimentation is (b) CASUAL
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Analysis of Purchase Data is (a) exploratory (b) casual (c) descriptive
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Analysis of Purchase Data is (c) DESCRIPTIVE
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Survey Reserach is (a) exploratory (b) casual (c) descriptive
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Survey Research is (c) DESCRIPTIVE
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Focus Groups are (a) exploratory (b) casual (c) descriptive
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Focus Groups are (a) EXPLORATORY
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Individual Interviews are (a) exploratory (b) casual (c) descriptive
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Individual Interviews are (a) EXPLORATORY
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What are the steps in the marketing research process
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1. Define the problem or research objectives
2. Design the research plan 3. collect data 4. analyze the data 5. develop findings and recommendations 6. conduct follow-up |
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Why follow the marketing research process?
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You're using the study to move something forward and you should follow the steps because you have limited time and resources so you need a specific goal as to why you're doing it
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What the pros and cons of finding information using secondary data?
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Pros: Inexpensive, quick to obtain
Cons: May not fully meet your needs |
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What are the pros and cons of finding information using primary data?
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Pros: potentially spot market insights
Cons: requires time, most likely expensive |
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What is primary data?
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Data found by the company
-ie focus groups, surveys, interviews, observation |
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What is secondary data?
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Data already collected and analyzed from an outside source
- ie magazines, journals, newspapers, websites, financial reports by other companies |
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Distinguish between probability and non-probability samples
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Probability (random sampling) - used to infer information about the whole population [circle with all the xs]
Non-probability - info about particular target groups but can't infer about the whole population [circle with concentrates xs] |
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Define concept tests and give an example
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Presents product idea and then, through a survey or interview, gauges level of interest
- How important is room size to you (1) Very important (2) mediumply important (3) in the middle (4) not as important (5) not important at all |
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Why is concept testing important for marketers?
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they can market/advertise based on the qualities that customer find most important
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What is conjoint analysis?
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- assumes that a product can be broken down into individual attributes
- applies to a variety of analytical prodcueres developed to estimate individual preferences from overall product judgments - to work, repsondents are asked to provide preference judgments for different product attributes, and then mathematical analysis is used to "tease out " the indivual's underlying value system HOW MUCH VALUE CUSTOMERS ASSIGN TO PRODUCT ATTRIBUTES |
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How can conjoint analysis help marketers?
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- can determine the importance of different product attributes - what product attributes should your product have?
- can aide in the selection of target markets - which market segment(s) is likely to find your offering appealing - can estimate the relative value of a product in the marketplace - which products in the makret are goign to be most successful? |
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What are some market research challenges?
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1. Question is beyond the respondent's base of knowledge
2. Question is too sensitive of a topic 3. Respondents may not even be aware of their true reason for behaving a certain way |
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What are some reasons TO use a focus group to gain insights?
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Want to know
- how consumers feel - why certain opinions are held - plan and design of further research -plan and design of marketing mix elements |
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What are some reasons a focus group IS NOT used to gain insights?
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- to project information onto a population
- to gain accurate infromation about individuals (they're often unreliable) |
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What are common criticisms of focus groups?
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- particpiants will remain guarded when disucssing sensitive topics beofre others
- groups can yield false positives ... proposals may make sense and generate positive reaction, but not work in the market - organizing and conducting focus groups require time and money |
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What are some creative ways to make focus groups work for you?
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- journaling
- inteerpreting vague images - loooking at pictures and telling a story - fill in cartoon balloons - complete the sentence |
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Marketing
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Marketing is an ongoing process that includes the activities for creating, communicating, and delivering customer-valued offerings so that exchanges are created and the objectives of customers, the organization, partners and society are satisfied.
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Value
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Value is the consumer's assessment of a product's utility based on what is given up for what is received in comparison to competitive choices.
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CRM
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Customer Relationship Management is a business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm's most valued customers
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Exchange
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Exchange is the trade of things of value between the buyer adn the seller so that each is better off as a result
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Marketing Mix (four Ps)
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The marketing mix is product, price, place, and promotion - the controllable set of activites that a firm used to respond to the wants of its target markets
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B2B
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Business-to-Business marketing is the process of selling merchandise or services form one business to another
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B2C
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Business-to-Consumers marketing is the process in which businesses sell to consumers
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Value Proposition
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Value Proposition is the unique value that a product or service provides to its customers and how it is better than and different from those of competitors.
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Generation X
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Gen X is the generational cohort of people born between 1965 and 1976. They are the first generation of latchkey children, 50 percent have divorced parents, have considerable spending power (married and houses later), demand convenience, less likely to believe ad claims
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Generation Y
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- Millennials
- Gen Y is the generational cohort of people born between 1977 and 1995; biggest cohort since the original postwar baby boom |
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Millenials
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the consumer born between 1977 and 2000 and the children of the Baby Boomers
- emphasis on balancing work and life, polarized income levels, blurred gender roles, more education, more diverse, trends for health and wellness green consumption privacy and thrift, technology in communication |
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WTO
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The World Trade Organization replaced GATT in 1994. It differes from GATT in that it is an established institution based in Geneva, Switzerland, instead of simplay an agreement; represents the only international organization that deals with the global rules of trade among nations
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GATT
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The General Agreement of Tariffs and Trade was an organization established to lower trade barriers, such as high tariffs on imported good and restrictions on the number of types of imported products that inhibited the free flow of goods across borders.
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Dumping
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Dumping is the practice of selling a good in a foreign market at a price that is lower than its domestic price or below its cost
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Tariff
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A tariff is a tax levied on a good imported into a country; also called a duty.
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Ethical Climate
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The ethical climate is the set of vaues within a marketing firm, or in the marketing divison of any firm, that guide decision making and behavior
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CSR
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Corporate Social Reponsibility refers to the voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of it stakeholders
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Need recognition
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Need recognition is the beginning of the consumer decision process. It occurs when consumers recognize they have an unsatisfied need and want to go from their actual, needy state to a different, desired state.
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Functional needs
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Functional needs pertain to performance of a product or service
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Psychological needs
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Psychological needs pertain to the personal gratification consumers associate with a product or service
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Wants
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Wants are good or services that are not necessarily needed but are desired.
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Data warehouses
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Data warehouses are large computer files that store millions and even billions of pieces of individual data
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Data mining
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Data mining is the use of a variety of statistical analysis tools to uncover previously unknown patterns in the data stored in databases or relationships among variables
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Panel data
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Panel data is the information collected from a group on consumers
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Scanner data
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Scanner data is a type of syndicated external secondary data used in quantitative reserach that is obtained from scanner readings of UPC codes at check-out counters
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Syndicated data
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Syndicated data is data available for a fee from commercial reserach firms such as Information Resources INc. (IRI), National PUrchase Diary Panel, and ACNielsen
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Extra Secondary Data
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Extra Secondary data is data collected from sources outside the firm
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Points-of-parity
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Points of parity are where you overlap with the competition. It also establishes the category you are in.
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Points-of-difference
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Points of difference are what you have that the competition doesn't
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Value proposition
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The value proposition is the unique value that a product or srvice provides to its customers and how it is better than and different from those of competitors
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Distributor
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A distributor is a type of reseller or marketing intermediary that resells manufactured products without signifcantly altering their form. Distributors often buy from manufacturers and sell to other businesses like retailers in B2B transcations.
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Wholesaler
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A wholesaler is a firm that engages in buying, taking title to, often storing, and physically handling goods in large quantities, then reselling the goods (usually in smaller quantities) to retailers or industrial or business users
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Reseller
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A reseller is a marketing intermediary that resells manufactured products without signifantly altering their form.
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RFP
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A request for proposal is a process through which buying organizations invite alternative suppliers to bid on supllying their required omponents
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Decision heuristics
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Decision heuristics are mental shortcuts that help consumers narrow down choices; examples include prince, brand, and product presentation.
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Noncompensatory decision rule
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A noncompensatory decision rule is when consumers choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes
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Multi-attribute model
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A multi-attribute model is a compensatory model of customer decision making based on the notion that customers see a product as a collection of attributes or characteristics.The model uses a weighted average score based ont eh importance of various attributes and performance on this issues.
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Compensatory decision rule
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A compensatory decision rule is the set of criteria that ocnsumers use consciously or subconsciously to quickly and efficiently select from among alternatives
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