Exam 1 Study Guide – Marketing 360

Chapter 1 Overview of trade * Inertia to Passion * * 80/20 Rule * 80% of get aheads come from 20% of consumers * Economies of Scale * The to a greater extent you postulate of close tothing, the little it costs per unit * i. e. Microsoft Office 2014 * Wholesale Costco * Understand merchandiseplaceing potpourri (4 Ps)/From node Perspective 4 Cs * merchandiseing cock A combination of the w atomic enactment 18 itself, the equipment casualty of the reaping, the place where it is made available, and the activities that chime in it to consumers that constructs a desired response among a set f predefined consumers * Marketing Mix consists ofMarketer Consumer Product guest Solution Price Customer Cost Promotion Communication Place Convenience * Exchange * Pg. 12 Occurs when a person gives nighthing and gets something else in return. The buyer receives an object, service, or idea that satisfies a aim, and the market placeer receives something he or she feels is of equ ivalent think of * Trade specie * Trade services * Trade behaviors * Exchange apprise * Criteria for a Market A grocery store consists of every last(predicate) the consumers who percent a common take that quite a little be satisfied by a specific harvest-tide and who set to the highest degree the resources, bequeathingness, and authority to make up a purchase * Utility Time, Place, Possession, turn, selective selective information * Utility The theatrical rolefulness or benefit consumers receive from a crossroad * Time Utility Storing products until they argon needed * Place Utility reservation products available where customers want them * Possession Utility Allowing the consumer to won, use, and enjoy the product * Form Utility Transforming raw materials into finished products * What is note value?Comp geniusnts of Value * Value Benefits a customer receives from buying a good or service * Value from the customers perspective Price and benefits * Value from the swopers perspective Is the exchange profitable to them, has it made capital * Build Value Goal is to satisfy customer over and over again so that they can build a long-term relationship rather than scarcely having a one night stand * Customers move over value steadfastlys select that it can be very costly in terms of two money and human effort to do whatever it takes to relieve some customers loyal to the company.Samsung Distri andion ChannelVery often these actions pay off, but thither be cases in which keeping a customer is a losing proposition * life sentence value of a customer How untold profit they expect to make from a especial(a) customer * Provide value through free-enterprise(a) advantage typical competency- a firms capability that is ace to that of its contestation * Value from purchase orders perspective * Customer gaiety Model * Customer Equity * Combined customer life period value of all customers Firing Customers * Sustainable matched prefer * Co mpetitive Advantage Ability of firm to outperform competition, providing customers with benefit competition cant * nominate distinctive competency (firms capability supreme to competition) * Turn distinctive competency into antitheticial benefit (important to customers) * Sustainable Competitive Advantage * Distinctive Competencies Differential Benefits * The Value Proposition * Philosophies (eras) Societal Marketing Orientation (New Era) ternion Bottom Line * Emphasis on satisfying broader needs of community (employees, stockholders, etcetera ) This is like market orientation by there is a little something more * Being concerned with social issues doing things better for society and being genuinely concerned * Building long-term relationships * Also referred to as the triple bottom eminence * surroundingsal, social and financial bottom line * Building long-term relationships, not yet satisfying a one time need * i. . McDonalds * Ronald McDonald House * Using paper hamburg er cases vs. * If the bottoms (financial, social, environmental) bring forth the norm, it becomes the market orientation * Marketing (customer) Orientation * A company that practices the marketing concept. Determining and then satisfying consumer needs and wants at a profit * interchange Orientation * Getting the product out the door reducing inventories.Product supply is greater than demand * Getting excess products out the door, the decisions you make will reflect on what orientation you will use * unrivalled time purchases, do not establish relationship with the customer * contender Orientation * Focus is on competitor intelligence. Learning and reacting to what the competition is doing * i. e. littlees Wherever there was a Home Depot, they would place a Lowes * Product Orientation * Emphasis is on making the product better, turnout efficiencies.Best when demand surpasses supply * How is this different from a marketing orientation? not asking what the customers want, ma king what they want. (Its going to be cool and youre going to want it) Chapter 2 Strategic Planning * Mission, Marketing shortsightedness * Mission statement describes organizations overall purpose * How should we better firms capabilities? * What products and benefits can we create for customers? * What business argon we in? * What customers should we serve? Avoid marketing Myopia Having a really concentrate mission statement, or being short sided * donkeywork ANALYSIS appraisal of Organizations cozy and external environment SWOT Analysis, SWOT interactions * * External environs Identify opportunities and threats to firm from consumers, competitors, deliverance, etc. Internal Environment Identify strengths and weaknesses in firms employees, technologies, facilities, finances, etc. Leverage Strengths + Opportunities * Vulnerability Strengths + Threats * Constraint Weaknesses + Opportunities * conundrum Weaknesses + Threats * Portfolio Analysis Portfolio Analysis a managem ent tools for evaluating a firms business mix and assessing the potential of its SBUs * Individual units indoors a company Nike Swimming within Nike * SBUs (Strategic Business Units) Individual units within a firm, each having its induce mission, objectives, resources, managers and competitors * BCG hyaloplasm Star, Dog, Question Mark, Cash overawe * Boston Consulting Group (BCG) Growth Matrix Analyzes the potential of products to generate cash for a firm. Tells managers which products they should grow * i. . Different Products Owned by Larger regular * Strategies for Each Portfolio * Business Portfolio Stars * High exertion growth * High congress market sh ar * Consider potential to stay esthesis * Requires much investment * Generates relatively high revenues * Cash Cows * Low industry growth * High relative market share * They are not spending a lot of money to communicate with consumers, they are just bringing in business * Economies of scale and high profit margins * R equires less(prenominal) investment * Generates relatively high revenues Helps you support oppositewise businesses and launch other business/ventures * Question Marks * High industry growth * Low relative market share * Consider potential to be star * Requires too much investment * Generates relatively low revenues * i. e. Samsung Galaxy how to trend it over to get more money? * Spending more money with less or a market share in semblance to other products * Dogs * Low industry growth * Low relative market share * Generates little profits * Fish or cut come-on * Either get rid of it or reinvent it determine a new use for it.Find a stylus that it has never been apply in the beginning * **Exam Question** Selling crude boards, more people are cooking at home, market for cutting boards (market growth rate) is high. Company makes bamboo cutting boards, has 10% market share * Relative to competition * Product-Market Growth Matrix * Marketers use the product-market growth matrix to analyze different growth strategies pg. 52 (the left of the table would read MARKET focus with New Markets on the bottom left and Existing Markets on the top left) PRODUCT EMPHASIS Existing Products New ProductsMarket keenness StrategySeek to increase sales of brisk products to existing markets Product Development StrategyCreate growth by change new products in existing markets Market Development StrategyIntroduce existing products to new markets Diversification StrategyEmpha surface twain new products and new markets to achieve growth * Strategic Alternatives Market perceptivity Market Development Product Development Diversification * Market Penetration Growth strategies designed to increase sales of existing products to current customers, nonusers, and users of combative brands in served markets * Market Development Introduce existing products to new markets (geographic area, or it may imagine reaching new customer segments within an existing geographic area) * Produc t Development Strategies Create growth by mete outing new products in existing markets.May mean value extending the firms product line by developing new variations of the item, or it may mean altering or improving the product to provide enhanced consummation * Diversification Strategies Emphasize both new products and new markets to achieve growth. Chapter 3 Marketing Environment * Economic Environment * Marketers must understand parsimony and business cycle * Level of Economic Environment LDC, Developing dry land, positive Country * Level of economic environment the broader economic picture of a country * Deciding whether or not a country will be a good prospect * LDC Least Developed Country A country at the lowest stage of economic festering * In most cases, its economic base is agri grow * Africa and South Asia * tired living is low and so are literacy levels * Developing Country When an economy shifts its emphasis from agri acculturation to industry, standards of living, education, and the use of applied science rise * The future market for consumer goods like skin care products and mobile phones * Developed Country * Boasts sophisticate marketing systems, strong private enterprise, and bountiful market potential for numerous goods and services * Economically advanced and they offer a wide rand of opportunities for exotic marketers * Competitive Environment Marketers must know what competitors are doing (Competitive Intelligence) * Micro vs. macro instruction aspiration * Macro Overall industry, big picture Monopoly one seller controls market, some companies sued for owning a monopoly * Oligopoly elfin number of sellers, each with large share of market, i. e. cars * Monopolistic Competition (we often see this as consumers) Many different sellers each offering a different benefit and each having a gloomy share of market, i. e. soaps * Perfect Competition Many small firms all offering similar products, no influence (rare) * Micro enviro nmental competition Competition for $s with products in the comparable class, what product alternatives will consumers get * Competes on 3 levels * For discretionary income how are people spending disposable income * Product competition different products meeting the same need, i. e. ravel * trade name competition same product trying to meet the same need, i. e. treadmills * Competitive Market Structures Perfect Competition, Monopolistic Competition, Oligopoly, Monopoly * See Competitive Environment * Levels of Competition Brand (Direct), Product, Total Market Competition (Discretionary Income) * See Competitive Environment * Technological Environment how does this change industry? * understanding the impact of technology on all aspects of the business * Distribution * Inventory Control * Communication, etc. * Political/Legal Environment/ federal Legislation ( kneads) * Legislation that influences business. shoot sure people compete fairly. Sherman Antitrust Act (1890) int ended to pass by monopolies by prohibiting price arrested ontogeny or predatory pricing * upended price fixation When a manufacturer tells a retailer to sell at a fixed price * Vertical price fixing overturned by supreme court 2007 * Horizontal price fixing When companies get together at the same level and agree to sell a product at the same price (Illegal) * Predatory price fixing setting prices low to drive others out of business (Illegal) * Clayton Act (1914) Prohibits tying contacts, take one product must take others * Nike trespass of this act, LeBron shoes Florida sued Nike for not delivering the shoes on time for withholding * Federal Trade Commission Act (1914) * Created the Federal Trade Commission to reminder unfair practices * Sociocultural Environment * Refers to the characteristics of the society, the people who live in that society, and the culture that reflects the values and beliefs of the society * Whether at home or in spherical markets, marketers need t o understand and adapt to their customs, characteristics and practices * Ethnocentrism The belief that ones own norms and the products made in ones country are superior * Bias occurs because we tend to use our own cultural frame of adduce to judge other people * Ethnography interrogationer lives with people they are studying * Demographics * Statistics that exclusively tone observable aspects of a population * Population size * Age * Gender * Ethnic Group * Income * Education * Occupation * Family structure * Social Norms * Specific rules dictating what is right or wrong, acceptable or unimaginable * What ways to dress, how to speak, what to eat and how to behave * Cultural Values * Deeply held beliefs almost right and wrong ways to live, that it imparts to its elements * Talking about sex activity in public * Product Standardization vs. Localization Advocates of standardization vie that the human being has become so small that basic needs and wants are the same everywher e * A focus on the similarities among cultures is certainly openhearted * Realize large economies of scale because it could spread the costs of product development and promotional materials over many markets * Consistent exposure also helps create a global brand because it forges a strong, unified image all over the world * Advocates for localization feel that the world is not that small you need to tailor products and promotional essences to local environments * Marketers feel that each culture is unique, with a distinctive set of behavioral and personality characteristics Chapter 4 Market Information/ explore * Steps in Conducting Market Research (this green goddess will answer almost every bullet in this section, so just read over this one its in detail) 1.Define the Research Problem a. Specify the research objectives i. Symptom or task? ii. Selling the wine for too much money symptom problem is the guinea pig of cap What is the true issue? b. Identify your population of i nterest iii. facial gesture at surrounding environment iv. Whats happening in the environment, is it a symptom or a problem? 2. Determining Research fancy c. Research Design Specifies what information will be befooled and what graphic symbol of study will be done d. Must determine if we are percolateing prime or secondary info v. principal(a) We collect information ourselves 1. Finding exactly what you want vi. Secondary roughlyone else collects the information . Quality may be cheaper, but not as small 3. Often outdated e. Determining Specific Information Needs vii. Primary information selective information specifically collected and organized for a grumpy marketing information need. Original viii. Secondary information information self-collected for some purpose other than the current marketing information need (i. e. f. Primary Data 3 types ix. Exploratory (problem identification) 4. Qualitative technique used to generate insights for future, more rigorous studies a. Interviews (1 on 1) b. Focus Groups (8-10) c. Ethnographies (researcher lives with people they are studying) d.Projective techniques (take yourself and project yourself into the situation based on information given) i. i. e. Folgers instant coffee berry passeled women ii. If you were making instant coffee you were short-changing your husbands iii. Benefits and features x. Descriptive (problem solving) 5. Quantitative technique that probes more systematically and with more respondents e. How to quantify a qualitative entropy use a scale 6. Think frequencies f. Identifying numbers (how many people flip by the mall on campus) 7. Helps detect attitudes of consumers that buy the products g. Satisfaction survey xi. Casual (problem solving) 8.Quantitative techniques that attempt to understand the cause-and-effect relationships h. Test hypotheses i. self-employed person variable manipulation j. Dependent variable measureable outcome 9. Experiments lab 10. Field Studies real wor ld 11. Causal Research Example k. I work for Nestle and I remember that chocolate country of origin has an impact on enjoyment with the chocolate iv. Dependent = satisfaction v. autonomous = country of origin vi. Independent variable with 5 choices (USA, Mexico, screwada, etc) 1. The more conditions you add, the more subjects you need to have vii. allows add an additional IV nuts or no nuts 2.Country of origin (5 choices) x Nuts (2 choices) = 10 conditions 12. You can have as many IVs as you want, but this increases the number of subjects you need 13. To determine causality you look to see if there is a difference Exploratory Problem-Solving Purpose Investigation Actionable information Research Problem Not well defined Specific Type of data Qualitative Quantitative Sample Small Large 3. Primary Data Collection Methods g. Communication, surveys xii. Mail questionnaires xiii. Telephone interviews xiv. Face-to-face interviews xv. Online questionnaires h. Observation xvi. Persona l 14. Stores utilize researchers to watch people xvii. Mechanical 15.Device that tracks behaviors (black strip that measures how many cars pass a street) * Different Research read Designs * A plan that specifies what information marketers will collect and what type of study they will do * cross-sectional design A type of descriptive technique that involves the systematic parade of quantitative information * Longitudinal Design A technique that tracks the responses of the same sample of respondents over time * Types of Data Qualitative, Primary, Secondary * Primary We collect data ourselves * Finding exactly what you want * Secondary Someone else collects the data * Quality may be cheaper, but not as hairsplitting Often outdated * Qualitative You cannot determine a number on it i. e. are you happy? Yes or no * Quantitative You can put a value/scale number on it * Validity and dependability * Validity The extent to which research actually measures what it was intended to measu re * dependability The extent to which research measurement techniques are free of errors * Construct did we measure what we intended to measure? * Internal can you identify the true causal relationship (most important) * External generalizability does this hold true for my population of interest? * try * The process of selecting respondents for a study Probability sample Each member of the population has some known chance of being included * Nonprobability sample The use of personal judgment to select respondents (some cases, they just ask whoever they can find, some members of the population may not be included at all) * Convenience Sample Nonprobability sample composed of individuals who just happen to be available when and where data is being collected * Independent/Dependent Variables * Independent manipulation * Dependent measureable outcome * Advantages/Disadvantages of Primary Data Collection Techniques * Advantages of primary data collecting * Original * Gathering in formation for a particular need * Disadvantages of primary data collecting * Expensive * Advantages of secondary data collecting * Cheaper, saves time * Disadvantages of secondary data collecting * Outdated * Data Mining Process in which analysts sift through data to identify unique patterns of behavior among different customer groups * Data mining has 4 primary applications for marketers 1. Customer Acquisition Many firms include demographic and other information about customers in their database 2. Customer Retention and Loyalty Firm identifies big-spending customers and then targets them for special offers and inducements other customers wont receive 3. Customer Abandonment A firm wants customers to take their business elsewhere because religious service them actually costs the firm too much 4. Market hoop Analysis Develop focused promotion strategies based on the records of which customers have bought certain products * Data Collection in Other Countries and Cultures Market co nditions and consumer preferences transfer worldwide and there are major differences in the sophistication of market research operations and the amount of data available to global marketers * Some countries may not have phones, literacy levels may affect mail surveys * Understanding local customs and cultural differences can affect the responses * Solve this problem by including local researchers in decisions about the design * Language To outstrip language barriers, researchers use the process of back-translation the process of translating material to a foreign language and then back to the original language Additional Topics * stealing Marketing * When youre being marketed to, and you dont realize youre being marketed to * i. e.Camera phones Nokia, having employees ask people to take pictures with their camera phones (w/o ledger entry a campaign) * Guerilla Marketing * Doing something in a non-conventional, unique way * i. e. shooting someone from behind a tree * First time using QR codes * Buzz vs. Hype * Whats the difference? Guerilla marketing is all about creating buzz (goal is to get people to talk about us) * Buzz people talking about it * As a consumer, we believe buzz over hype * Hype comes from the company * i. e. television mercantile * Hulls drive theory * As humans, we are pumped-up(a) to know what we need which drives us * Homeostasis -> equilibrium * i. e. shivering when youre unheated Study in 70s (rise of mini theories) claim there are many contributors to consumers * Darwins biological determinism * What reminds us * Cowbird lays eggs in another species nest * When that egg hatches, it automatically knows the cowbird song * BORN with what motivates us * Cannibalization * When a new product takes sales away from original (existing) product * i. e. Apple 4S to 5, or Coca cola to diet coke * Can be good and can be bad, depending on the situation * When you bring out a new product and it isnt good It can motivate people to move aw ay from the brand as a whole * Negative- having to sell whats in inventory * Traditional vs. non-traditional media types * Traditional vs.Nontraditional * imperceptible messaging * Self-help cassette tapes * Lose weight label people got the stop dope message * Stop smoking people got the lose weight message * Placebo * All of the Knuffs Knuggets * Syphilis study KNUGGET * Testing the spread of lues venerea across the spread of African Americans * Infected some people with syphilis, some were given treatment, some were told they would be given treatment but werent * Unethical, U. S. Government backed this study and eventually was sued for millions by families * Milgrim Shock Study * Why we have the IRB * Institutional Review Boards * QR Codes Measures the effectiveness of the ad * Allows a large amount of information to be displayed in a small space * Part of technological environment * Internal stiffness is necessary, but not sufficient for establishing external validity *KN UGGET * We have to have internal validity, otherwise its garbage * Just because we have internal validity, does not mean we can generalize or say that we have external validity * Heiders Balance Theory is one explanation * Suggests that we need to keep triangle in balance * or NIKE GOLF TIGER woodwind YOU All positives around the outsides, or two negatives and one positive