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46 Cards in this Set
- Front
- Back
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Definition of marketing |
Understanding wants, needs, and gets of target market and delivering desired benefits better than competition FROM A CUSTOMER’S POINT OF VIEW i. Marketingis an organizational function and a set of processes for creating,communicating, and delivering value to customers and for managing customerrelationships in ways that benefit the organization and its stakeholders(Kotler and Keller 2011) 1.You aredelivering products that are matching the wants and needs of customers bettertheir current gets |
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Customers, Customers, Customers (what does this mean) |
i. Concentrate on the needs of the customer not theneeds of the seller ii.Every aspect of your company, every decision madeshould revolve around the customer iii.You cannot succeed without putting your customersfirst |
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Marketing Management 4-step process; know/understand each step |
Understand customers, competitors, and own company (3C’s) ii. Develop a goal based on this understanding iii. Select the appropriate marketing mediums and mix toaccomplish goal (4 P’s) iv. Measure, evaluate, and possibly reformulate |
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Why is marketing important |
i. Increases customers, cash flows, and market value ofbusiness ii. It is the first line between customers and business iii. Link between marketing capability and firmperformance is stronger than those for R&D and operation capabilities |
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How to adjust your firm to be more market oriented; what should be your firm’s focusand how to adjust the firm to correspond |
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Value proposition |
i. value to target market equals benefits to targetmarket minus the cost to the target market 1. The wholecluster of benefits the company promises to deliver |
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unique selling points |
what makes your product unique and special—offers,customer expectations (branding), customer experience, efficiency/supply chain,networking |
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points-of-difference |
i. attributes or benefits consumers strongly associatewith a brand, positively evaluate, and believe they could not find to the sameextent with a competitive brand 1. Must bedesirable, deliverable, and differentiating |
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points-of-parity |
associations that are not necessarily unique to the brand but may beshared with other brands |
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elevator pitch |
20-30 second speech that will give an overview of whysomeone should hire you, why your option is the best, why your product is thebest |
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Methods to identify market opportunities, market potential, industry opportunities, andown company’s competitive advantages |
1. Competitor intelligence—askcustomers to consider similarities and dissimilarities betweencompetitors—perceived similarities indicate substitutes and more switching,dissimilarities indicate less switching a. Perceptualmapping technique provides—competitive position of business and identifies keycompetitors to benchmark b. Try to capturewhere the open areas are in the perceptual map se we can create something forthat niche market 2. Perceptualmaps—visual representations of consumer perceptions and preferencesa. Customerperceptions of inter-brand differentiation b. Providequantitative portrayals of market situations and the way consumers viewdifferent products, services, and brands along various dimensions c. By overlayingconsumer preferences with brand perceptions, brands can reveal “holes” or“openings” that suggest unmet consumer needs and marketing opportunities |
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Primary vs. secondary research |
i. Primary—you’re conducting the research yourself youare in control 1. What’s: observedbehavior—test markets, clickstream, purchase history, ethnography, web chatrooms 2. Why’s:Cognitions/Emotions: One-on-one interviews, focus groups, customer surveys,experiments, projective techniques, brain scans, conjoint analysis ii. Secondary—you are getting the information fromsomeone else 1. Pros—time wise,a lot of data, data on topics you don’t even think about, easy access, widerange in what you are looking at 2. Cons—biased (couldhave a company sponsor so its biased towards them), not as trustworthy,outdates, not specific enough, not cheap 3. What’s: Observedbehavior—IRI/AC Nielsen Data, Census Data 4. Why’s:Cognitions/Emotions—National surveys, previous surveys |
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Market research pyramid (know the details) |
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Focus Groups |
i. planning, recruiting, moderating, analysis andreporting 1. Pros—cheap,easy, quick, deep dive into customers thoughts 2. Cons—cannot makedefinitive decisions, small sample size, people have different opinions,conformity, moderator biases 3. Insights—exploratory 4. Typically 8-10questions—1 intro, 1 opening, 1 transition question followed by key question, 1ending question a. Introduction—participantsget acquainted and are put at ease b. Opening—beginsthe topic discussion c. Transition—movesthe discussion into the key topics d. Keyquestions—aimed at getting insight into the areas of focus e. Ending—beingsclosure to the discussion |
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i. Questionnaires |
1. Pros—cheap, easy(to answer and distribute), wasy to quantify (detailed analysis), descriptivetechnique—in for the what’s not deep diving for the why’s 2. Cons—structured,quality of survey respondents are not very good, response rate (not very goodso not generalizable to everyone)3. Want simple tothe point questions, don’t make them too boring, questions should not be biased 4. Questiontypes—dichotomous (everything is not always black and white so not the best),multiple choice (easy for the analyst), likert scale (most popular one, veryimportant to have odd number), semantic differential (same as likert withoutlisting the points), unstructured (deep diving, specific, problem: cannotquantify it, random answers, hard to analyze) 5. Generalizabilityis better in questionnaires than in focus groups—but still not very good |
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Experiments |
i. manipulate variables to test causations—direct evidenceof aàb or not 1. Pros—testing,multiple variables, improve control, causality, pretty cheap and easy, gets youinto the why’s 2. Cons—(could beexpensive), make sure there aren’t outside variables effecting the test, hardto control customers (honesty), quality of research it could be over simplistic |
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Conjoint analysis |
1. Customers chooseamong products with different benefits and prices 2. Understand howmuch customers are willing to pay for certain attributes 3. Focus on themost important attributes4. In perceptualmapping—there is causality and gives you the curves that aren’t verysimplistic—gets you deeper into the why’s |
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Technological devices |
i. trackers, GPS, GIS systems, MRIs 1. Great forcompanies—can get detailed information out to customers in certain areas |
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a. Methods andrationale for developing, analyzing, measuring, and employing big data for marketingefforts |
i. Don’t build a database when: the product is aonce-in-a-lifetime purchase, customers do not show loyalty, the unit sale isvery small, the cost of gathering information is too high |
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i. CRM—collecting data on potential customers to driveup the customers lifetime value |
1. A database withinformation on customers and potential customers aggregated across thebusiness: customer contacts, demographics, customer preferences, segmentation,transactions/past purchases, descriptive information, response to marketingstimuli 2. You must set agoal for the CRM system and integrate the goal across the entire business. Then you obtain consumer emails andpreferences. Then purchase furtherconsumer demographic, socioeconomic, and geographic data 3. Methods toincrease CRM database a. Registrationduring purchase—always want to give the ma reason to buy so you should allowcustomers to sign in as guest b. Webpagepromotion c. Incentivizeconsumers—coupons, deals, sales d. Social mediasharing buttons e. In-storepromotions—Big Texan restaurant 4. Steps to gettingquality intelligence in your CRM database—train sales force to scan for newdevelopments, motivate channel members to share intelligence, hire externalexperts to collect intelligence, network externally, utilize a customeradvisory panel, utilize government data sources, purchase information |
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Maximizing customer lifetime value |
i. customer profitability, customer equity, lifetime value—calculationhow much that customer is worth to your company throughout their entire life |
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Different levels of rationality of consumers |
i. Don’t necessarily think in well-reasoned or rational,linear way ii. Can’t always explain their true thinking and behavior iii. Are often influenced by culture and context iv. Often misremember v. Think visually, holistically, metaphorically,relationally (vs. verbally) vi. Get exactly what marketing managers intend vii. Important to understand WHY viii. Data quantitydoes not = quality |
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a. What influencesconsumer behavior |
i. A consumer’s behavior is influenced by cultural,social, and personal factors—of these cultural factors exert the broadest anddeepest influence |
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1. Cultural factors |
a. Subcultures:religions, racial groups, geographic regions |
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Hofstede’s 4+1 Factors |
individualism/collectivism, femininity/masculinity, power distance, uncertainty avoidance, long-term orientation |
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Social factors |
1. family referencegroups, social roles, social-economic class |
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Personal factors |
1. age, life cyclestage, occupation, wealth, personality, values, lifestyle, self-concept a. Our taste infood, clothes, furniture, and recreation is often related to our age b. Consumption isalso shaped by the family life cycle and the number, age, and gender of peoplein the household at any point in time c. Psychologicallife-cycle stages matter—adults experience certain “passages” or“transformations” as they go through life—their behavior changes with the times d. Marketers shouldconsider critical life evens or transitions—marriage, childbirth, illness,relocation, divorce, first job, career change, retirement, death of a lovedone—as giving rise to new needs |
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Consumer decision making processes |
1. Problemrecognition 2. Informationsearch 3. Evaluation ofalternatives 4. Product choice5. Outcomes |
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Two factors can intervene between the purchaseintention and the purchase decision |
1. Attitudes ofothers—this depends on two things—the intensity of the other person’s negativeattitude toward our preferred alternative and our motivation to comply with theother person’s wishes 2. Unanticipatedsituational factors |
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Decision heuristics |
1. Availability—consumersbase their predictions on the quickness and ease with which a particularexample of an outcome comes to mind—if an example comes to mind too easily,consumers might overestimate the likelihood of its happening 2. Therepresentativeness heuristic—consumers base their predictions on howrepresentative or similar the outcome is to other examples 3. Anchoring andadjustment heuristic—consumers arrive at an initial judgment and then adjust itbased on additional information |
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Hierarchy effects model |
1. Know a.Unaware of product b. Awareness c. Knowledge 2. Feel a.Liking b.Preferencec.Conviction 3. Do a. Purchase |
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i. Compensatory/Non-Compensatory models of choice |
1. Non-Compensatory—eliminatealternatives if they have a bad attribute from the choice set2. Compensatory—alternativeswith bad attributes can be overcome by good attributes |
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Alternative-based processing patterns |
i. consumers who search in this pattern will have agreater propensity to buy |
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a. The buyingcenter consists of all those individuals and groups who participate in thepurchasing decision-making process, who share some common goals and the risksarising from the decisions. The buying center includes all members of theorganization who play any of the following seven roles in the purchase decisionprocess. |
i. Initiators are users or others in the organizationwho request that something be purchased. ii. Users are those who will use the product or service.In many cases, the users initiate the buying proposal and help define theproduct requirements. iii. Influencers are people who influence the buyingdecision, often by helping define specifications and providing information forevaluating alternatives. iv. Deciders are people who decide on productrequirements or on suppliers. v. Approvers are people who authorize the proposedactions of deciders or buyers. vi. Buyers are people who have formal authority to selectthe supplier and arrange the purchase terms. Buyers may help shape productspecifications, but they play their major role in selecting vendors andnegotiating. vii. Gatekeepers are people who have the power to preventsellers or information from reaching members of the buying center. |
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Rationale forsegmentation |
i.More individualization—more likely to buy 1. Consumers differin needs and wants 2. Fewproducts/services can expect to appeal to all customers 3. Moreindividualization—less waste in resources |
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Benefits of segmentation to the firm |
1. sustainableprofit growth a. Identificationof valuable customers b. More targetedpromotions and marketing communications c. Higher customerlifetime value |
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Benefits of segmentation to the customer |
1. customer loyaltyand retention a. Customizedproducts and services b. Personalizedexperience c. Increased customersatisfaction |
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Know behavioral segmentation roles |
i. Decision roles—initiator, influencer, decider, buyer,user 1. Initiator—createsthe idea—want to target towards them 2. Influencing—whois influencing the decision—show a bunch of kids just playing with the toys 3. Decider—decideswhich product 4. Buyer 5. User6. Sometimes allfive are the same, others are all different |
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behavioral segmentation usage |
i. heavy, medium, low, non-users 1. Heavy users—wantto know more about them because they buy most of your product—you can findsimilarities between them and potential customers—see what products they likeand tailor them more |
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Loyalty status |
i. hard-core, split loyals, shifting loyals, switchers 1. Loyalty—youdon’t have to market as hard to your loyal customers—can focus more on thepeople who aren’t as loyal—need to maximize their customer lifetime value 2. Splitloyals—torn between two companies3. Shiftloyals—shift to different companies—want to find why they are switching ii. Price segmentation—want your customers to pay themaximum price they are willing to pay for that product |
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branding |
i. A brand is a name or symbol used to identify thesource of a product 1. Kind of a valueproposition |
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the benefits of a strong brand |
1. High brandawareness 2. Brand loyalty 3. Price premiums 4. Emotionalconnections 5. Product lineextensions |
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A brand’s role |
1. Identify themaker 2. Signify quality 3. Serve as acompetitive advantage 4. Secure pricepremium 5. Offer legalprotection |
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different elements of branding |
1. Brand names 2. Slogans 3. Characters 4. Symbols 5. Logos 6. URLs 7. Personalities 8. Colors 9. Font |
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Downfalls of brand-related efforts |
i. Hard to value ii. Value doesn’t always mean consumer purchases |
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i. Brand element choice criteria |
1. Memorable 2. Meaningful 3. Likeable 4. Transferable 5. Adaptable 6. Protectable |
