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102 Cards in this Set
- Front
- Back
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Secondary data vs. Primary data |
Review secondary data, see what's already been done --internal corporate, government agencies, trade, news Primary --know what you want to know, collect data |
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Purpose of a brand! |
A brand is the name, term, image, symbol, or any other feature associated with company Brands help you be distinguished from ALL other products |
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Disposable income |
Money available after taxes |
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discretionary income |
Money available after taxes and needs |
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gross income |
Total amount of money received during a period of time |
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Net income |
profit |
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Conjoint analysis |
Looks at attributes of product's components Estimates value Used for product development and pricing choices. |
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regression |
How changing a variable will effect outcome |
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Discriminant |
Highly correlated variables to generate perception maps. |
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Cross-tabulation |
Frequency count. Specific attitudes or behaviors occurring more |
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factor analysis |
Groups together highly correlated variables |
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MaxDiff |
Traits that consumers rank from most/least appealing most/least important |
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Marketing's role in firm |
1-Corporate strategy=Corporate what type of business is in..ex) do we do salty snacks and dips? 2-SBU=competition, what strengths do we play to? 3-Marketing strategy=promotion, price, product, place |
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Path to profitability |
Foundation: Marketing environment-customers, company, competitors Creating Value-Marketing Mix. Segmentation & Target. Capture Value-customer acquisition, retention. sales per customer, retention. |
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Marketing Environment dangers & risks |
Social forces: demographics & culture Economic forces: changes in economy affect spending Technological forces: advances in technology could leave a product need as obsolete Competitive forces: rivals, entrants, substitutes, buyers, suppliers regulatory forces: forces in government |
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How to disrupt routine purchases |
Technology (come up with something better) Product sampling (trying the product out) Advertising |
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Ethics triangle |
Triangle that would get someone to do something unethical: -Opportunity=option is available -Motivation=pressure, need -Rationalization=reconciliation, justification |
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Consumer behavior process & problem solving |
Low-involvement: routine, habitual. High-involvement: Expensive, important Process is: 1) Problem recognition-discrepency between current and desired state 2) Information search-search info to solve problem 3) evaluation of alternatives-some eliminated 4) purchase-positive or negative thoughts 5) post-purchase evaluation-how you feel about what was done |
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What marketers control in consumer behavior process |
Can tap into factors affecting situation: Cultural-tap into cultural values Social-Use opinion leaders pyschological-change beliefs about brand performance, change importance of beliefs, add new belief Situational-pay attention to what situations people would use it Individual-appeal to what matters to individual |
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Market penetration |
Increase market share among existing customers |
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Market development |
Attract new customers to existing products |
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Product development Diversification |
Create new products for existing customers New products into new markets |
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Standard vs. glocal vs. Customization/Local |
Standardization: Uses same approach in foreign market as in home market Cost effective, may not meet cultural needs Customization: adapt to meet local standards Costs more Glocalization: Going global but acting local, standard platform with some modifications |
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SWOT |
Strengths- company's core abilities Weakness-product limitations Opportunities-trends/circumstances in ebvironment Threats-negative conditions in external environment |
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Consumer behavior influences |
Stimuli--environment: health, economy, etc. marketing stimuli--varying price, product Black Box: personal motivations, desires, intent |
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Multivariable Attitude Attribute Model |
Summation Take value *rating + others= overall |
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Generational Cohorts |
People born in same period with similiar beliefs Baby Boomers-40s to 60s, retiring, lots of money to spend Gen X-higher buying power, approaching 40s Millennials-growing larger, not big spenders Tweens |
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Franchise |
Instead of building chains, someone franchises |
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Exporting |
Shipping products from distributor to foreign country Message can be changed to fit target market |
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Licensing |
Write a contract to let someone use skills, values, products get a percentage of royalties burden is on licensee May lose control of quality of product |
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Joint Venture |
Combine with a company in foreign market |
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Direct Investment |
Invest into companies outside country Problems could be a lack of cultural understanding |
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Analysis of variance |
Looks for averages and variability around average |
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Selective distribution |
Few intermediaries carry the product |
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exclusive distribution |
Very few intermediaries carry the product |
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intensive distribution |
stocked in majority of outlets |
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Geographic segmentation |
grouped based on differences in geographical regions--population density, size, climate. |
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demographic segmentation |
Differences in age, gender, income level, education, social class, etc. |
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pyschographic segmentation |
based on personality, lifestyle, or motives |
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behavioral segmentation |
based on benefits customers seek : Brand loyal Deal shoppers Price shoppers Convenience shoppers |
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Types of Channel intermediaries |
Direct=NO intermediaries Indirect=through intermediaries, distributors, wholesalers, OEMs Mixed=direct and indirect channel |
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push vs pull strategies |
pull--draws attention from consumers, mainstream advertising push--to channel members, possibly price oriented |
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Breakeven equation |
BEV=Fixed cost/price-unit variable cost |
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Types of promotions |
Value-added promotion: adds value to product like more of the product, or sweepstakes Price-off promotion: coupons or rebates Cause-related promotions: invites consumers to help out a good cause Trade promotions: buying incentives to RETAILERS, might to trade allowances |
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Salesperson performance attributes |
5 Attributes: 1) Reliability- done accurately and dependably 2) Assurance-competence, courtesy, credibility, security 3) tangibles-appearance of physical faculty, equipment, personnel 4) Empathy-listening 5) Responsiveness-help customers promptly |
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4 Methods to set product prices |
1. Golden goose-knows own costs, customer value, no understanding of competitors 2. Cost-plus-knows cost, not much about competitors or customers 3. Value-own cost, competitors, and customers 4-Competitive-knows own costs, competitors, not customers |
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Pricing incentives and fairness of transaction |
Timeliness needs to be right for incentives like coupons --runs value ahead of price |
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Reasons to believe vs need to believe |
Reason to believe: How effective is the demonstration of the product's problem solving benefits in capturing imagination of target market? Need to believe: Which pain point is being addressed? |
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Product development stages/ Post stages |
Life Cycle: Introduction-product is introduced into marketplace Growth stage-emphasize distinctions Maturity stage-maximize profits decline stage-rejuvenaute or die? Stages for New product: 1) Idea generation-consider problems people are trying to solve. 2) Idea screening-Do ideas fit in company goals or do they miss the boat? 3) Concept testing-Test the concept with consumers 4) Marketing strategy-Figure out target market and marketing mix 5) Price projection, try to project sales of product 6) Product development-create a prototype 7) Test marketing-try out in realistic markets 8) Commercialization-spread the word on the goods. |
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Cost plus pricing strategy |
where you calculate the cost and add the profit you want to have |
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Penetration |
Low entry price to capture market quickly Leads to capture of market share |
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Bundling |
Putting a group of costs together in bundle--Wendy's meal |
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Competitive |
Knows competitors and own costs, tries to compete |
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Skimming |
High price set knowing that only few will buy Captures consumer surplus |
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Why Marketers segment |
Way to identify new marketing opportunities Can't target everyone at once |
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Social Media Marketing: CPM, GRP, TRP |
CPM stands for cost per thousand GRP=reach*frequency--TRP is synonym |
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Brand loyalty vs equity |
loyalty-continued use of the product equity-buy the product from THAT company |
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Causes of conflict in a channel |
Conflicts arise when one channel member prevents another from reaching its goals Cause of conflict is distribution of profits |
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Economic demands/supply curve |
Negative relationship between price and quantity demands |
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Objective of an ad: Cognitive, Affective, Behavioral |
Cognitive=build awareness Affective=build liking Behavioral=stimulate action |
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What goes into a good print ad: Recall and objective |
Product-larger, bigger than life shots of product Advertiser obvious-very distinct look and feel benefit obvious- low involvement, love group emotion high involvement features and benefits |
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Points of parity vs. points of difference |
Parity: qualifiers of product Difference: set product apart |
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Bottom Up marketing |
1. Look at a pain-point perceived by consumer and then address with a differentiating tactic--new to the world competitive angle 2. Marshall all resources around it A bottom-up mindset (1) focuses on making the most of what the company has, (2) goes where the money is, that is attacks an existing market where customers are already spending lots of dollars, (3) quickly adjusts the competitive angle in a way that makes competitors irrelevant, and (4) transforms a winning marketing tactic into a long-term successful business strategy. |
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creative, low cost tactics |
Different Solves a problem Sparks a personal connection STRATEGY must be built on differentiating tactic |
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What is creativity? |
Using old things in new places, ways, and combinations |
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Startup Marketing: 5 Best practices |
1. Bottom up mindset 2. Finding good ideas 3. Leveraging leverage 4. Think big/act big 5. Launching tactics |
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Big business NOT shoestring entreprenuers |
Don't try to be a big business. Don't spend crazy amounts--be smart. |
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Four Step Ideation Process |
1-Select problem area--should be in area that deeply interests you, specific is better than deep 2-Explore specific problem--probing deep ended questions 3-Propose and test alternative product ideas--Use WOW focus group, don't get invested in a pet idea 4-Perfect the top product idea--Pitch to anyone and everyone and see what they suggest for improvement |
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White Hat |
FACTS about product, service, or people that use |
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Red hat |
EMOTIONS--gut reaction to product |
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Yellow Hat |
POSITIVE JUDGEMENT--perceived benefits or positive |
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Black Hat |
Critical judgement--perceived shortcomings or objections |
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Green Hat |
Creativity--ideas for improvement |
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Blue Hat |
Summary--takeaways |
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Qualifiers for Doing Things Right on Your Own |
1. Only if you can do it well 2. Only if you have bandwidth and energy |
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Hate-Swing-Love |
NOT everyone has a Hat-Swing-Love If so, prospect for a love group. Do research to see WHO your product really appeals to. |
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Five Best Practices for leveraging the skills and resources of others |
Unleash the power of horses--product advocates Empower early-adopter customers Land an anchor customer Work with benefactors Build an advisory board |
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Horses |
People w/ influence over market. Ability to introduce, highlight, and promote new opportunities LOVE group. |
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Early Adopters |
Discover the reasons these customers love the company's products. Leverage the info. KNOW your love group to get the fence sitters. Other adopters: Innovators-2.5%, 1st to try new things Early Early majority-people consider buying after proof of success Late majority-skeptical Laggards-resist change |
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Anchor Customers |
Provide instant credibility for startup, attract customers, accelerate development Anchors are those that come again and again Big anchors can be dangerous for startups. Does it foster or flounder? |
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Benefactors |
Think, "WHO benefits when I succeed?" --chain benefactors Who wins when I win? Does it increase a need for certain benefactors? Benefactors can provide something other than funding--hardware, or technology |
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Advisory board |
Leverage experience and connections to create your network board made up of passionate and fun professionals Advantages are they don't have to be paid and can't be sued can offer shares and perks |
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Earning vs. buying success |
Earn media=generates interest, something cool attracts news, people, etc. Buy=paid for advertising |
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Social Media for startups |
Build a look a feel for a website that makes it seem professional Highlight awards, interesting stories, customer experiences Social media: should address hot topic, friendly and natural |
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Connectors, Mavens, salespeople |
Connectors-people with a lot of friends Mavens-people with a lot of knowledge Salespeople-people who know how to persuade |
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Why it pays to have confidence/swagger |
Showing confidence in your product=do things that would go unnoticed or raise eyebrows if big companies did -do crazy things -send out to big names |
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Value of touch points |
Interaction, transaction, engagement Important because every time you touch you influence |
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BE a tradeshow giant. |
Concentrate marketing dollars AT trade shows Generate a big buzz through a creative idea |
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7 Ways to Think and Act BIG |
1. Technology 2. People 3. Ideas 4. The press/publicity 5. Trade shows 6. Niche market domination 7. Swagger |
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Specialist vs. Generalist |
Specialist ALWAYS beats generalist |
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Connector |
People specialists.. make friends and have a lot of aquantinces |
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Mavens |
Information specialist, collects data and knowledge |
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Salespeople |
Natural persuaders |
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Five Rules of Marketing Events |
1. Make sure the product takes center stage 2. Make the event gorgeous, event quality reflects product quality 3. Connect the event with local cause 4. Target event to fit specific audience/marketing objective 5. Send home a personalized souvenir |
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What does it mean to have a love fest |
Customers help launch product with them... Create opportunities for best customers to share the LOVE Get out of the way and let the customers sell. Summits, events, blogs, clubs, community classes. Creates a group of people in love with the product |
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Different Event options |
Activities Exhibitions Happenings Gatherings Tournaments Competitions Matches Races Games |
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Make the demonstration compelling |
Shows functionality in super fun way! Tessla-showed electricity running through his body Active--people participate Can't demonstrate then emphasize ( lights, sirens, flashing, fireworks, etc.) |
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Create a catch phrase/jingle |
Jingles burn in your brain The catch phrase stick |
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Select the channel |
Know where to best sell your products |
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Close the sale |
Learning to sell is a crucial skill Don't give NO a chance List needs and describe how product expresses needs |
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Don't be so focused on the product that you forget to sell it |
Do it yourself OR outsource selling to others |
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3 Big challenges to Selling Along w/ Solutions |
1-Entreprenuers lack credibility -solution 2. Power is with the buyers 3. Ego |
