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33 Cards in this Set
- Front
- Back
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What is marketing? |
the design and delivery of offerings to meet people’s needs, better than competition, at a profit |
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Why is marketing important? |
-the only business activity focused on the customer -only revenue generating activity -primarily responsible for developing intangible assets -art and science |
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What is marketing myopia? |
what is it? The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products. why does it happen? past success, economic benefit of current model, focus on optimization, experience of growth, faith in current model, focus on the product how to avoid it? customer orientation, creative destruction, elevate the role of marketing, producing customers not products |
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What are the different types of marketing orientations? |
-production - cut cost/expand distribution -product - continuous innovation -selling - sales promotion and advertising -marketing - high investments in consumer research -societal marketing - partnerships w/ NGOs and adoption of causes |
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What are the phases of the Marketing Process? |
UNDERSTAND marketplace/customer needs --> DESIGN customer-driven marketing strategy --> CONSTRUCT an integrated marketing program that delivers superior value --> BUILD profitable relationships and create customer delight --> CAPTURE value from customers to create profits/customer equity |
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What are marketing strategies? |
who is the customer? what do they need? what will we offer? why is it better? |
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What are marketing tactics? |
product; price; place; promotion |
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What decisions are involved in marketing management? |
marketing strategy and marketing tactics |
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Levi’s case discussion – why did they fail? What alternatives could they have explored? |
-focused on a market segment for which they had little value to offer; saw opportunity as “volume” over “value” -make a new brand name (Q2 needed an upscale brand) -create a speciality distribution channel -gone after a different segment |
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What are the 4 questions of customer-driven marketing strategy? |
segmentation targeting positioning differentiation |
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What is the difference between marketing strategy and tactics? |
-Strategy: Overarching decisions and vision about the direction of the company. Customer focused not product focused -Tactics: logistics of the product |
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What are key differences in the marketing strategy between Nike and Under Armour? |
segmentation - nike segmented by passion areas; UA segmented by demographic targeting - UA found unmet need positioning/differentiation - meeting same needs in different ways -differences in athlete sponsorship, advertising, pricing, or products not differences in stratgey |
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What are the different types of customer value? |
-functional -monetary -psychological |
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What are the dynamics of customer behavior? |
-customer characteristics -product characteristics -situational characteristics |
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What are the differences in customer characteristics? |
-decision roles = buyer vs. user vs. payer |
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Customer roles (Tropicana) - what did they do wrong? |
-focused on user not the buyer |
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Motivational research? |
-people do not know the reasons behind their purchasing decisions (driven by underlying emotions/attitude) |
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Values (VAL) research? |
-enables companies to measure the type of personal values influencing the choice of different consumer segments - explains rather than predicts behavior |
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What are the 4 preference methods? |
1) Attribute-based model (+) simple to implement (-) higher margin of error b/c of unreliable customer responses 2) Multi-Dimensional Scaling derive attributes that drive decisions by understanding their perceptions of the similarities among brands/companies (+) helps define competitive landscape and market opportunities (-) does not help understand tradeoffs 3) Conjoint Analysis research technique to predict preferences driving a product choice (+) useful for predicting tradeoffs 4) Social Media Listening (+) rapid and dynamic estimates on preferences (-) could suffer from biased samples (not representative of customer population |
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Differences in product characteristics? |
utilitarian - consumed for instrumental/functional reasons hedonic - consumed for pleasure or leisure Low involvement (toilet paper/gum); High involvement utilitarian (microwave, car insurance); High involvement hedonic (shoes, vacation) |
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Impact of product characteristics on consumer behavior? |
-search process (extensive vs. limited) -definition of choice set (extensive vs. limited) -evaluation of alternatives (casual vs. extensive) -triggers for purchase (stock depletion, change in brand or self-image) decision criteria (heuristics vs. decision rules) |
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Differences in situational characteristics? |
-preferences are not fixed - cognitive biases can change people’s choice in predictable and systematic ways -irrational behavior is not random |
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Prospect Theory? |
-reference point -diminishing sensitivity to gains/losses -loss aversion -curve steeper for losses than gains |
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Six situational effects? |
1) framing effects - pricing of economist 2) reference points - ipad 3) context effects - decoy effect, compromise effect, extremeness aversion, 4) anchoring effects - social security example 5) bounded rationality - difficulty of processing, jam example 6) price effects - sobe - pay less, view it less |
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Whatare the different types of market segmentation? Strengths vs. limitations? |
- geographic -psychographic -behavioral -demographic |
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Whatare the keys to effective segmentation? |
understand the job - attributes/benefits that customers are looking for in a specific purchase occasion/need understand other job candidates - what other means do customers have to meet their needs look at the usage - different ways your product (or competitive product) are used or different needs it could serve |
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Howto evaluate a segmentation? |
1) do you know how the product is used by different customers (behavioral)? 2) do you know needs of the customer or benefits they are looking for (behavioral)? 3) do you know how those needs vary by purchase or usage occasions (behavioral)? 4) do you know their general preferences and values (psychographic)? 5) do you know who they are? can you measure the size of the segment? Can you find the segments in the market? (demographic/geographic) |
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Whatfactors to consider when selecting a target segment? |
what is the market size? what needs to be served? who are the main competitors? what product features to offer? what price level to set? where to place/distribute the product? how to advertise the product? what types of partnerships to develop? where to advertise the product? measurable, accessible, substantial, differentiable, actionable, predicts demand/behavior, specific to a decision |
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What isreal-time marketing from the perspective of the Converse VP? |
- reacting to what is going on around you to connect with your audience on a deeper level -listening to the customer -knowing when to stay out of the conversation -recognizing the significance of the event that has occurred |
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Impact of product characteristics on consumer behavior? part 2 |
-price sensitivity - consumers are generally less price sensitive when buying products with hedonic characteristics -emotional relationship- product purchases for hedonic are more likely to generate emotional bond with consumers than those with utilitarian motives -processing (intuitive vs. analysis) - choice for affect-rich products is likely to be made intuitively |
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Elaborate on geographic/demographic segmentation. |
-geographic - where you live -demographic - age, life-stage, income, job, edu (+) data widely available, easy to do, connect segments and media and segments and business value (-) heterogeneity, descriptive but not predictive, easy to replicate by competition, static use when - estimating market size, media investments, distribution strategies, pricing strategies |
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Elaborate on psychographic segmentation. |
-psychographic - social class, lifestyle, personality, values (+) create more relevant messages (-) static, not predicting behavior, limited action, hard to find people use when - designing brand identity, designing advertising messages |
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Elaborate on behavioral segmentation. |
- behavioral - occasions -based, benefit-based, user-based (+) identify opportunities beyond traditional product category, focus on benefits that matter, unique/differentiating for the company (-) increases complexity of analysis use when - defining product attributes |
