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144 Cards in this Set
- Front
- Back
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why do we study marketing?
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-it affects our everyday life
-key to effective business strategies and business model |
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The Marketing Concept
Figure 1.3 |
the starting point: market
focus: customer needs means: integrated marketing ends: profits through customer satisfaction |
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What is marketing?
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Marketing: The Process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return"
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Creating "Value"
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Marketers create value through "products" such as:
-physical objects -people -organizations -places -information -ideas |
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What are "customers?'
(figure 1.2) |
suppliers --> company/competitors --> marketing intermediaries --> final user
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Marketing and Sales Concepts Contrasted
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the selling concept:
factory --> existing product --> selling and promotion --> profits through sales volume |
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What is marketing myopia?
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a disconnect between product line
ex. when BIC tried to make parfum. |
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What is the selling concept?
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fastory -> existing products -> selling and promoting -> profits through sales volume
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What is the marketing concept?
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market -> customer needs -> integrated marketing -> integrated marketing -> profits through customer satisfaction
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what is the point of the selling concept?
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to sell as much as you can
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what is the point of the marketing concept?
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understanding customer needs
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what is the simple model of marketing process?
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understand the marketplace and customer needs and wants -> design a customer driven marketing strategy -> construct a marketing program that delivers superior value -> hold relationships and create customer design ->
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what are the 4 P's?
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product, price, place, promotion
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how do marketers implement marketing strategies?
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product, price, place, promotion
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what is the main focus of the 4 p's?
(the middle puzzle) |
customer
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superior customer value results in:
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-customer loyalty and retention
-customer referrals -more customers -customer equity -higher profits |
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studying the environment allows marketers to:
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-understand the constraints they operate under
-learn opportunities -reveals threats to avoid or combat |
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it is important to study the environment because marketers -
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see what people care about; need to understand motivation and needs
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who is an example of studying the environment to market themselves?
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Madonna: could have been a 1 hit wonder but understood the idea of trends and rides those trends and reflected that; understands changes and who her customers are; longevity
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does the marketing environment change?
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constantly changing
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actors in the micro-environment are:
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the company
suppliers marketing intermediaries customers competitors publics |
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The Company - all departments must:
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- "think customer"
- cooperate inter-functionally to provide superior customer value and satisfaction |
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MATCH GAME:
finance |
finds the money to carry out the marketing plan
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MATCH GAME:
Accounting |
Measures revenues and costs, and keeps marketing on track with objectives
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MATCH GAME:
Management |
sets the mission and objectives
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MATCH GAME:
Operations |
Produces and distributes the product
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MATCH GAME:
Purchasing |
Obtains supplies and materials
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MATCH GAME:
R&D |
Designs the Product
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What are suppliers?
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suppliers provide resources needed for production and innovation
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What are intermediaries?
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intermediaries help the company promote, sell, and distribute the products to end-users
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who partners with intermediaries?
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marketing services agencies, physical distribution forms, resellers, and financial intermediaries
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an example of an intermediary
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coke - keeps data on the best way to display their menu boards, use images, colors, how many items etc also info on how early they decide what they want to order
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who buys our products?
(5 basic types of buyers) |
- consumer
- business - reseller - government and non-profit - international markets |
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who might the customer choose instead?
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-deals
-emphasis -competitive advantage -provide reasonable substitutes to customers |
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what advantage does burger king have?
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deals
emphasis on burger - bigger/flame broiled |
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what color should a brand use compared to their major competitor?
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a different color
ex. pepsi became more blue dominant |
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why would an accounting firm use a similar color for their business as other accounting firms?
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need to use a professional color
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what is publics?
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any group that has an interest in or impact on an organization's ability to achieve its objectives
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what are types of publics?
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-financial
-media -government -citizen-action -local -general -internal |
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According to Walmart, what items sells seven times more than the avg day just before a hurricane?
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Strawberry Pop-tarts
they dont spoil comfort food dont need power to eat it strawberry is popular has real fruit in it tastes good whole family can eat it preserved until you eat them |
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what are forces in the macro-environment?
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-demographic
-economic -natural -technological -polotical -cultural |
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how is assimilation used in ads?
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different ads for different people
ex. one levis commerical used a boy and a girl and another was aimed for gay people |
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demographic forces
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marketers track measurable, census-type data on consumers
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examples of demographic data to collect
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household structures
age geographic population shifts educational characteristics population diversity occupations |
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what is an example of how a business can develop based on knowing household structures?
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in china, friday's has seating for 7 because each night it includes the parents, 1 child, and both sets of grandparents
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Describe the Baby Boomers
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- born between 1946 and 1964
- likely to postpone retirement and stay active - the most affluent group |
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Describe Generation X
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- born between 1965 and 1976
- less materialistic - spend time "cutting and pasting" lives - care about the environment |
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Describe Generation Y
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-born bw 1977 and 1994
-"echo boom" -large disposable income -comfortable with technology -"now-oriented" |
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what are the marketing rules of Baby Boomers
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- interested in staying active
- the idea of staying young/ telling people they are young ex. curves - they respond better to traditional ads - the idea of life is now |
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what are the marketing rules of Generation X
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- go green
- caring - credibility |
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what are the marketing rules of Generation Y
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-multitasking
-tend to be now focused marketers realize they need to reach this generation in multi ways -celebrities |
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what are economic forces?
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consists of factors that affect consumer purchasing power and spending patters
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specific ex of economic forces
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tide focuses on saving the planet while saving money
glad ware becomes more popular since more people eat at home |
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economic forces:
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income distribution:
-upper class -middle class -working class -underclass Changes in Income: -"squeezed consumers" - what to spend money on -value marketing/"treasure hunter" tradeoffs --> massclusivity - people are willing to make trade offs |
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what are natural forces?
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natural resources that are needed as inputs by marketers or that are affected by marketing activies
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what are factors of natural forces?
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shortage of materials
increased pollution increased government intervention environmentally sustainable strategies |
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what are technological forces?
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technology changes rapidly, creating new markets and opportunities for some, while making other products obsolete
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what are political forces?
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includes effects of laws, regulations, and pressure groups
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what are marketing laws?
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most laws that affect marketing have been passed in order to protect the consumer
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why have most laws that affect marketing been passed?
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to protect the consumer
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commercial libel
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has to do with the products
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price discrimination
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selling an item at different prices to different people
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price fixing
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the maintaining of prices at a certain level by agreement between competing sellers
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price gouging
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pricing above the market price when no alternative retailer is available
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can you lie in advertising?
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you must tell the truth in all advertising except exaggerations are allowed
ex. "America's favorite____" -- ok to say |
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what are cultural forces?
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the forces that affect a society's basic values, perceptions, preferences, and behavior
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hypertasking
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multi-tasking in over-drive
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duty and fun
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having fun but responsibly
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adventurers
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doing things that other wouldn't do
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do-it-yourselfers
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home is a haven and projects are victories
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cocooning/nesting
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home-place they spend a lot of time
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going green
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general concern for natural world
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renewed spirituality
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less materialism, greater "meaning of life"
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internal databases
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what info do we already have?
ex. pizza hut, grocery store loyalty cards - keeps track of what each customer buys --> creates internal database |
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marketing research
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very specific to a situation
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marketing intelligence
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public info - what info is available?
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Marketing Research Process
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definding the problem and research objectives
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coach
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1. research objectives: why?
2. developed research plans (demographic and cultural forces) |
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primary data
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- collect specific info
- directly applicable - costly |
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secondary data
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-rely on existing info
-often not as applicable -less expensive |
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exploratory research
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gathers preliminary info that will help define the problem and suggest hypotheses
ex. coach observed women on the subway |
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descriptive research
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describes things (e.g. market protential for a product, demographics, attitudes)
ex. coach designed color choices, sizes, and attitudes |
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causal research
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tests hypotheses about cause and effect relationships
coach did NOT do this |
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research approaches
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observation, survey, experiment
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contact methods
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mail/email
telephone face-to-face online web/chat |
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sampling plan
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sampling unit
sample size sampling procedure - random - convienence - judgement |
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observational research
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the gathering of primary data by observing relevant people, actions and situations
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ethnographic research
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observation in a "natural environment"
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mechanical observation
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- people meters
- checkout scanners - eye cameras |
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people meters
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records your family's television behavior (determines which show is most popular)
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checkout scanners
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records data on what you buy
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effect of environmental design
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mariott - bright colors, beautiful spaces but people never sat. the seating was intimidating --> pushed seating closer together, friendlier staff etc
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survey research
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- most widely used method for primary data collection
- best for gathering exploratory/descriptive/causal info -can gather info about people's knowledge, attitudes, preferences, or buying behavior |
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contact methods
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most used for surveys, some experiments
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pros of contact methods
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-gathers info fast
-greater flexibility than mail surveys - can change line of survey, voice can be biased |
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cons of phone method
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-higher cost than mail
-interviewer effects exist -quantity of data that can be collected is smaller than in mail surveys |
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contact methods: mail/email
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mostly used for surveys using questionnaire
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pro of mail/email
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cheaper
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con of mail/email
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greater weeding out process make a mistake - thats it, response rates
not as immediate as phone - can be ignored |
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online marketing research
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can do surveys, experiments, and personal (individual and group) interviews
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pro of online marketing research
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- the least expensive way to gather info
- flexible -saves time on data processing |
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con of online marketing research
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not everyone uses internet much (ex. older people, anonymous
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experimental research
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best for gathering causal
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process of experimental research
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-select matched groups of subjects
-give different treatments -control for unrelated factors -check differences in responses bw groups |
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example of experimental research
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put campbell's soup out for 79 cents and then put a sign limit 12 - more people bought it then
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test markets "Best"
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1. albany
2.rochester 3.greensboro 4.birmingham 5.syracuse |
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test markets "worst"
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new york
san francisco honolulu mcallen ocala |
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interpreting and reporting findings
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what does the data mean?
- transform into usable knowledge report to management -presentations -written reports |
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VALS survey
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The purpose of the VALS™ survey is to identify the VALS type of the person taking the survey. That's it. To find out about a person's product ownership, media preferences, hobbies, additional demographics, or attitudes (for example, about global warming)
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which subculture is most likely to agree that "shopping is a family affair?"
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hispanics
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consumer behavior
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buying behavior of individuals and households who buy goods and services for personal consumption
(business to consumer) |
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factors that influence consumer behavior
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cultural, social, personal, psychological, and buyer
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cultural factors
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- culture: is the most basic cause of a person's wants and behavior - different variances
ex. Budweiser - dog is a man's best friend - subculture: the culture of a group of people who share value systems based on common life experiences ex. Budlight male vs. female -social classes: society's relatively permanent and ordered divisions who memebers share similiar values, interests, and behaviors |
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ethnic subcultures examples
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hispanics: shopping is a fmaily affair, brand names sell well
- home depots stuggle to attract hispanics (paint color names are unfamiliar to them) african americans - enjoy shopping more than other groups; the most fashion conscious asian americans - the most brand conscious; tech-savy |
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social factors
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reference groups: include on person belongs to, wants to identify with (aspirational- "just do it") or does not want to be identified with (dissociative- one that mocks another)
family/household: the most important "the most important group for most consumer buying roles and status: -role: expected activities -status: esteem given role by society |
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personal factors
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-age and life-cycle stage: people change the foods they buy over their lifetime
-occupation: influences the purchase of goods -economic situation: some goods and services are especially income-sensitive -lifestyle: pattern of acting and interacting in the world - attitudes, behaviors, lifecycles -personality and self-concept: people's possessions contribute to and reflect their identities |
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VALS framework
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innovators: mastered all of it
ideals (ex. smart water - pure) achievements - goal oriented (ex. bling h2o) self-expression - artsy (dasani - cant live without it) |
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why is vals framework important?
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markets have to understand who their talking to
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bling h20
dasani - cant live with it smart water - pure based on vals |
achievement
self-expression ideals |
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based on vals
green cars hot pink car bmw |
ideal
achievement self-expression |
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psychological factors
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-motivation
-perception -learning -beliefs and attitudes |
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selective retention:
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remembering issues relating to their issues
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selective distortion
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interpret info the way they believe
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moderate incongruity
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make it surprising, unexpected
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Maslow's Hierarchy of Needs
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self-actualization: self development and realization
esteem needs: self-esteem, recognition, status social needs: sense of belonging, love safety needs: security, protection physiological needs: hunger, thirst |
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cognitive dissonance:
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uncertain about what they bought, need to find ways to affirm that tension; buyers regret, remorse
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what is marketing?
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creating value for customers
capturing value back through profit relationships - long-term |
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4 p's
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product, price, place, promotion
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which p is this?
what do potentional customers need and want? |
product
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which p is this?
how much should we ask customers to pay? |
price
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which p is this?
how will we get it to the customers? |
place
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which p is this?
how will we communicate with the customers? |
promotion
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Marketing concept
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long term, focused on customer needs
outward facing integrated marketing - take 4 p's and make consistent repeat purchase/loyalty |
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selling concept
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not a lot of demand
ex. blood donating inward |
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Hersey's offers delicious chocolate at an afforable price, but contributes to obesity. there is an absense of____
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societal marketing concept
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customer evangelists
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When customers are truly thrilled about their experience with your product or service, they can become outspoken "evangelists" for your company. This group of satisfied believers can be converted into a potent marketing force to grow your universe of customers
ex. blackberry lover tells everyone |
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natural environment is micro or macro?
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macro
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example of duty and fun
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shopping at target - buy trendy things without exceeding their budget
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internal databases
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info you already have
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primary data
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info you collect, can be costly
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secondary data
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existing info
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what type of research is the campbells experiment of selling it for 79 cents and then with the 12 limit
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causal
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an example of descriptive research
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focus groups
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ethnographic research
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observational, naturalistic concept
ex. mariott seating problem |
