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32 Cards in this Set
- Front
- Back
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What is marketing? (what isn’t it?) How is marketingimportant to you? |
Marketing is the performance of activities that seek to accomplish an organizations objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to customer or client. Marketing is not just selling and advertising. The aim of marketing is to identify customers' needs and meet those needs so the product sells itself. |
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What are the macro/micro concerns about marketing? Which if any are warranted and why? |
Macro-marketing is a social process that directs an economy's flow of goods and services from producers to consumers in a way that effectively matches supply and demand and accomplishes the objectives of society. The emphasis is on how the whole marketing system works. Discrepancies of quantity and assortment as well as various separations(spatial, time, info, values, and ownership) are the macro/micro concerns. |
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Why is that distinction between marketing and productionimportant? Under what conditions will a productionmentality work, when will it fail? |
Marketing makes sure the right goods and services are produced (marketing concept-satisfying customers at a profit). Production mentality is making whatever products are easy to produce and then try to sell them. Production orientation shoes a lack of central focus in a business. Production mentality in industries with little competition (ex. steel, coal, chemicals) may survive but when competition increases customers look to the company that delivers the most in customer satisfaction. |
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Define customer value and provide and provide a “realworld:example. Why is customer value important tocustomer satisfaction? |
Customer value is the difference between the benefits a customer sees from a market offering and the cost of obtaining those benefits. "Some people think that higher customer value comes from a low price...A good or service that doesn't meet a customers needs results in low customer value, even if the price is low." (Ex. Starbucks offers more than coffee. It has a nice ambiance in its stores, friendly staff, etc so even though the coffee is more expensive, people are willing to pay.) |
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How is customer satisfaction linked to the marketingconcept? Employee satisfaction? To profit? As amanufacturer with little to no competition should youspend to create customer satisfaction? |
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customer satisfaction and marketing concept (part 2) |
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What is the micro-macro dilemma? Examples? Give an example of this dilemma, identify the conflicting stakeholders. Propose how it could be ethically resolved. |
The macro-micro dilemma is when producers and consumers making free choices causes conflicts and difficulties. "What is good for some firms and consumers may not be good for society as a whole. For example, many people in New York City buy bottled water because they like the convenience of easy-to-carry disposable bottles with spill-proof caps. On the other hand, the city already provides free tap water for a fraction of the cost" without the potential pollution implications. "...explains why NYC runs ads encouraging consumers to get your fill of free city water." |
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Why is marketing planning essential? |
"In the planning job, managers set guidelines for the implementing job and specify expected results. They use the expected results in the control job to determine if everything has worked out as planned." |
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How does satisfying a need differ from providing a “benefit”?Explain by using an actual brand example. How does this relate tothe marketing concept (Ch.1)? |
Satisfying a need to helping a customer find a solution to an ongoing problem that occurs. Providing a benefit is like just giving a customer a perk (or a determining dimension) to make your product stand out. You can't compete without first satisfying a customer need which is the aim of the marketing concept. |
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What are the 4 types of market growth strategies? Describeconditions for when each strategy should be used. |
1) marketing penetration: trying to increase sales of a firm's present products in its present markets 2) market development: trying to increase sales by selling present products in new markets 3) product development: offering newer improved products for present markets 4) diversification: moving into totally different lines of business, perhaps entirely unfamiliar products, markets, or even levels in the production-marketing system |
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Rank the 4 P’s in order of importance with #1 being the mostimportant. Explain your rationale and how a brand manager wouldachieve long term success with this strategy. |
1) Product (develop right product for target market) 2) Place (getting right product to target market's location) 3) Promotion (personal selling, mass selling, sales promotion) 4) Price |
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Name a recent product evolution. Why do you feel it is an evolution nota revolution? What is a current example of a potential breakthroughproduct- what makes it breakthrough? What product category might bedisrupted. For that category- how do you react to the breakthrough? |
A recent product evolution are the wireless earbuds by Apple. It is taking a product already on the market and making it more convenient for the consumer by taking away a potentially annoying feature, the cord. A breakthrough product would be the cloud by Box because it allowed consumers to store data in a completely new way without it being tied to one device or needing to use a usb drive. It was superior to older techniques of data storage. |
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What are customer lifetime value and customer equity? Why domarketing strategy planners seek to increase them? Can this produceshort-term benefits for companies? |
"Loyal customers continue to buy brands that satisfy them, often seeking products from that same company. Many firms recognize this and measure customer lifetime value, which is the total stream of purchases that a customer could contribute to a company over the length of a relationship...A good marketing program develops multiple strategies to make it easy for satisfied customers to buy from the company. Customer equity is the expected earnings stream of a firm's current and prospective customers over time." Marketing managers should focus on acquiring new customers, retaining current ones, and enhancing the customer value to get more purchases. There can be short term benefits by focusing on customer equity. |
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Why is it important to understand your company’s strength and weaknesses as a first step to planning? Why is it important to consider both immediate and distant rivals when planning? Provide an example of a company that was either positively or negatively affected by understanding or ignoring distant rivals (note: example should not be Kodak or other lecture examples). |
"The best way for a marketing manager to avoid head-on competition...requires an understanding...of competitors...Identifying a broad set of potential competitors helps marketing managers understand the different ways customers are currently meeting needs and sometimes points to new opportunities." P&G changed its packaging for diapers in Japan to take up less space and avoid having to cooperate with distribution channels because it new that Japanese stores needed to restock a lot and P&G's competitors had better distribution networks. |
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How does monopolistic competition differ from pure competition? Why do marketers avoid pure competition? How do they avoid the perception of the consumer that “all of the brands in the category” are alike |
Pure competition (oligopoly): competitors offer very similar marketing mixes and customers see the alternatives as close substitutes "In other words, competitors have failed to differentiate their offerings...usually compete on low prices, and profit margins shrink...So marketers try to offer a marketing mix better suited to target customers' needs than competitors' offerings." Monopolistic competition: different firms offer marketing mixes that at least some customers see as different |
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Give three examples of a competitive barriers. How do competitive barriers affect strategy selection? What are the three key criteria to be used when determining which market/segment opportunities to pursue? |
Competitive barriers: - Saturation of the market by competitors - expensive start up costs to enter an industry - intense brand loyalty to one or a few brands for a certain industry |
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Provide examples of how the declining U.S. middle class may affect marketing decisions in the US for three different product categories. Give a current examples of a brand that is adjusting their strategy to adapt to this new economic reality. |
A declining middle class will cause marketing managers to reposition their brands or certain products as affordable and make sure that they are satisfying a need in the best way they can to cause the customer to buy the product. A shake up in the marketing mix, including a decrease in price, may be necessary. Southwest brands itself as the most affordable way to fly with "low fares" and flying 2 bags for free. |
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Provide examples of how a population shift (location, ethnic composition, income and age) may change demand for a product. Pick a product or brand and describe how it would be affected by that change. How are different age cohorts affecting U.S culture? Provide at least two current examples. |
More people moving to colder states, like Alaska, new York, Minnesota, etc might cause an increase in demand for room heaters, especially during the winter. Also, a decline in the elementary and middle school age children population could see a decline in ticket sales for Disney World. |
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monopoly |
when one firm completely controls a broad product market |
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pure competition |
identical products, different price |
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competitor analysis |
an organized approach for evaluating the strengths and weaknesses of current or potential competitors' marketing strategies |
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How does a segment differ from a target? What are 4 key features of a goodsegment? Why does “pointless” segmentation occur? Why is it important tosegment? How do you know when to stop? |
A market segment is a homogenous group of customers who will respond to a marketing mix in a similar way. The target market is a particular group of consumers to whom a product or service is aimed. The 4 key features of a good segment are 1) homogenous within 2)heterogenous between 3)substantial 4)operational. It is important to segment because it is the the best way to find opportunities for new products and analyze customer needs. You know when to stop when the segments are not operational. |
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When do you choose a single segment strategy vs. a multiple or a combinedmarket strategy? What are the advantages and disadvantages of each strategy?When is the largest segment not always the best choice to pursue? Describethe relationship between segments and targets? |
Combiners try to increase the size of their target markets by combining 2 or more segments. A combiner makes compromises in developing the marketing mix. A combined target market approach may help achieve some economies of scale. It may also require less investment than developing different marketing mixes for different segments (making it attractive for firms with limited resources). Segmenters aim at one or more homogenous segments and try to develop a different marketing mix for each segment. They want to provide superior value and customer satisfaction to get grater potential profit. Hope to get greater sales by getting much larger share of business in the market they target and build a good customer relationship. |
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What are three potential dimensions on which to segment consumer markets,and examples of each? What is the difference between a qualifying anddetermining dimension? Give an example of how they can change over time. |
The 3 potential target market dimensions are behavioral, urgency to see need met, and geographic location. Behavioral = needs, benefits sought, rate of use, thoughts, etc. demographic = income, gender, ethnicity, occupation, etc geographic = region of the world, region in country, size of city, etc. Qualifying dimensions are those relevant to including a customer type in a product market. Determining dimensions are those that actually effect the customer's purchase of a specific product or brand in a product-market. |
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What is the function of a product space map? T/F the marketer controlsdifferentiation and positioning. How does a production mentality hindermeaningful differentiation? List three conditions where price would not work asa successful point of differentiation. |
A product space map helps companies determine opportunities to satisfy unmet needs or see how great their current products satisfy needs in different segments. Product space maps are based on customers' perceptions not actual characteristics of products. False (Positioning is influenced by marketers but is ultimately controlled by consumers.) 1) the consumers don't see the product as the same when it comes to quality or customer satisfaction so price doesn't matter 2) the target market is affluent and does not have a strong concern for price 3) lowering the price makes the consumer feel different about the product quality |
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When might re-positioning be necessary? Why is it so difficult? Give a currentexample of a brand that is in need of repositioning. What is its current target,position and USP what should they be? Assess this statement: “No one elseoffers this in purple- so that is our USP!” |
Sometimes research shows the marketing manager that target customers are not viewing the brand in the desired way - it needs to be repositioned. Changing customer perceptions of a brand is not easy and requires changes to the marketing mix. Blackberry needs to be repositioned because its phones are not seen as hip or as modern as Apple and Samsung. |
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What role do economic needs play in consumer buying decisions? Why is the difference between discretionary and disposable income important to marketers? |
Disposable income is money after taxes. Discretionary income is money after taxes and necessities. Marketers care about discretionary income because that is they money you have to satisfy your wants. Marketers technically only appeal to your wants (preferred ways of satisfying an actual need). |
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Provide an example that demonstrates the difference between a need and want, a drive, a cue and a response. What role does reinforcement play in learning? What is the benefit to investing in reducing purchase dissonance when the sale has already been completed |
A need includes the 4 types of needs (physiological, safety, social, and personal) and are the basic forces that motivate a person to do something. For example, one of the physiological needs is liquid. A want are "needs" that are learned during a person's life. My preference to satisfy my need for liquid with Coca-Cola over water is a want. A drive is a strong stimulus that encourages action to reduce a need. Product purchases results from a drive to satisfy some need. Cues are products, signs, ads, and other stimuli in the environment. For example a billboard is a cue. A response is an effort to satisfy a drive. The specific response chosen depends on the cues and the person's past experience. reinforcement of the learning process occurs when the response is followed by satisfaction. Reinforcement strengthens the relationship between the cue and the response. Repeated reinforcement leads to development of a habit, making the decision routine. It is good to invest and reduce purchase dissonance to increase customer satisfaction and ensure that the customer will buy from you again. This will ensure that the company can depend on the customer lifetime value. |
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Explain why it is difficult to get your target to notice and remember your message. Why won’t simply out shouting your competition be effective? |
Consumers won't buy what they do not notice. Selective exposure = we notice only what we want to notice. Break through the "clutter" without obscuring your message. Sounds, visuals, and humor may get you noticed, but too much may impede brand recall. |
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Why is it important for marketers to understand how social influences, family, class, culture, ethnicity and purchase situation influence their target’s needs and wants. Provide an example of how each can affect a marketing decision. |
Where a person is at in the family life cycle influences needs. For example, a young married couple with no children will not have the need for anything related to taking care of children, like diapers. Social class affects attitudes, values, and buying. Various classes shop at different stores, buy from different brands, etc. People in the Middle class and lower economically will not be buying from Tom Ford. Reference groups help people form attitudes. Culture surrounds the other influences. Ethnic markets are becoming more important. For example, " Asisan Americans have the highest median family income" and their population "has more than tripled since 1980." "Because of this growth and income, companies as varied as kraft, Walmart, and Allstate are targeting these consumers." |
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How does understanding the buying occasion and the amount of effort your target will put into their decision to buy impact marketing strategy? Provide an example of how marketers might adapt the shopping experience to affect the consumers shopping behavior. |
The purchase situation takes into account the purpose, time available, and location where a purchase is made. Understanding the buying occasion and the effort a potential customer will put into a choice will influence how aggressive marketing strategies are. For example, when people shop for gum they are usually focused on just refreshing their breath and will not take time to think about the brand necessarily, so marketing efforts for this product do not need to be as aggressive as purchases for diapers. An example of marketers adapting the shopping experience: Car selling companies may choose to sell cars through an auction instead of letting them sit in a car lot to cause customers to impulse buy by making them feel as though they could lose out on a deal and putting them in a competitive environment. |
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What are the advantages and disadvantages to selective perception (hint; stimulus discrimination, stimulus generalization)? What is the difference between attitude and a belief? “The sky is plaid” is an example of a(n)______________. (p. 122 in book) |
Selective perception: people screen out or modify ideas that conflict with previously learned attitudes and beliefs. Marketers can use selective perception to their advantage. Can use it to reinforce their brand message. For example, Colegate used selective perception to reinforce the importance of flossing by showing "gunk" in the mouth. Can also be negative. For example, Walgreens makes its generic packages of stuff, like sunscreen, to look similar to brand names but by making them cheaper people feel like they are getting the same quality for less. So the name brands lose money to generic brands. Stimulus generalization: tendency for stimuli similar to a conditioned stimulus to evoke similar, unconditioned responses. Stimulus discrimination: one can see that brands are different and don't have the same perceptions. An attitude is a point of view, valance, or a lasting evaluation. A belief is an opinion, may be true or false, a descriptive thought about something. The "sky is plaid" is a belief. |
