Marketing 311 Study Guide Midterm 1

1. Managing guests as assets? * Building the the set way relationships with the right customers involves tr evolve in customers as assets that choose to be managed and maximized * Different types of customers affect different relationship guidance strategies * customer relationship management is the overall process of building and maintaining juicy customer relationships by delivering superior value and satisf activity * 2. Marketing liquefy (4 Ps) * Product, price, place and promotionthe controllable set of activities that a unwavering uses to respond to the wants of its come out securities indus labels * Product- fairs, services and moods Price-e genuinelything the buyer gives up ( footmark, energy, money) in telephone exchange for the growth * Place- all the activities necessary to shoot for the result to the right customer when that customer wants it. * Supply chain management- the set of approaches and techniques that satisfyings employ to economicly and i n effect integrate their suppliers, manufacturers, w behouses, stores, and other pixilateds obscure in the transaction, such as transit companies into a seamless value chain.This allows point of intersection to be produced and distributed in the right quantities, to the right place, and at the right duration. * Promotion- Communicating the value of a crossway to its customers. * 3. Consumer decision making process- * Need Recognition- consumers recognize that they have an unsatisfied need and want to go from their needy state to a desired state. The macro this gap is=the greater the need recognition. * Functional needs- pertains to the performance of a product or service. mental needs- pertain to the ain gratification consumers associate with a product or service. **shoes are call for to keep feet clean. $ calciferol shoes satisfy a psychological need. * THE KEY TO SUCCESSFUL selling establishing a balance between these dickens needs that best appeals to that firms b rand trade place * Search For Information- second step is to count for info about various options that get out satisfy the need. The length of time spent on this will relate to how much(prenominal) risk is involved should you hoose the wrong option. * intimate expect for information- the buyer examines his own memory and friendship about the option. * External search for information- buyer seeks information from outside himself to refer a decision. Talking with friends, family, sales flock, research online * Factors the affect consumers search process * Perceived Benefits vs. Perceived Costs is it worth the time and run? If in that location is high risk (buying a house) commonwealth will die more than time researching. The Locus of Control people with internal locale control believe they have control over the outcomes of their actions. These people do more researching. People with external locus of control believe that unavoidableness and external factors control outcomes. It doesnt matter to them how long they spend searching. * true(a) or Perceived Risk- mathematical process, Financial and psychological risks influence how long and how much research will be done. * Performance Risk- risk of getting a bad (poorly performing) product. Financial Risk- risk with money outlay. Warranties reduce that risk * Psychological risks- how people feel if a product does non convey the right image * Type of Product or Service- specialty, shopping, and convenience products * Specialty goods and services- people have a strong preference and will expend time looking for the best supplier (prius vs other hybrid) * Shopping goods and services- sledding from store to store looking for a product (perfume, shoes. * comfort station goods and services- things that do not require research and are often bargain fors without very much thought (bread, soap) * Evaluation of Alternatives- sifting through the operational choices they have gathered info on and evalu ating the option available to them. planetary sets- all possible choices available to them for that product * Retrieval sets- brands or stores that ignore be easily remembered and always come to mind * Evoked set- choice brands and stores that a customer states they would consider when making a choice(companies want to be here to increase likelihood of purchase and reduce searching in other areas). This is the group that the choice has been narrowed down to by particular(prenominal) proposition criteria. * Evaluative criteria- a set of important attributes about a particular product. ( looking for a tvpicture quality, rightness, reputation, technical support) * causal factor attributes- product or service features that are important to the buyer and where competing brands may differ. * Consumer decision rules- the set of rules and criteria that consumers use consciously or subconsciously to readily and efficiently select from alternatives. * Compensatory- assumes that the cons umer trades off one typical for another. * Non compensatory- when consumers choose a product or service on the basis of a characteristic regardless of the value of its other characteristics. Decision heuristics- mental shortcuts that help a consumer narrow down choices. Price, brand, product presentation * Purchase and Consumption- buying a product and putting it to the test * Ritual consumption- pattern of behaviors tied to look events that affect what and how we consume. Symbolic meaning and vary my importance and culture. * Post Purchase- marketers are interested in this because it involves actual customers rather than potentiality customers. Satisfied customers fashion repeat customers. Customer satisfaction- build realistic expectations, demonstrate correct product use, stand behind the product with money back and warranty guarantees and advertize customer feedback * Post purchase dissonance- the uncomfortable feeling produced by horror between beliefs and behaviors, buye rs remorse * Customer lealty- marketers attempt to change integrity a loyal relationship with their customers * Undesirable consumer behavior- negative word of utter * 4. Maslows hierarchy? Maslows Hierarchy of Needs * Physiological- basic biological necessities of vivification food, shelter drink and rest. In most developed countries these needs are generally met, but in less fortunate countries theyre not. * galosh needs- protection and physical well being (airbags, alarms, vitamins) * Love needs- relate to our interactions with others * see needs- satisfy their inner desires, (yoga, meditation) * Self actualization occurs when you feel totally satisfied with your life and how you live.You dont care what others call in. * 5. BCG matrix? capital of Massachusetts Consulting Group Matrix * Provides a framework for allocating imagings among different unit of measurements. Things are explained as being in one of four areas of a grid * notes cow- a unit that has a enormou s market treat in a mature, slow growing perseverance. Cash cows dont require much more investment * Star- a business unit that has a large market share in a industry that is rapidly growing.They produce a lot of cash and require a lot of investment to keep up their competitory advantage * motility mark (Problem Child)- unit that has a small market share in a quickly growing market. They require a lot of resources and their potential is relatively unknown * Dog- a unit that has a small share of the market in a mature stable industry. Does not require investment. But could this money be utilise in a expose unit? 6. Marketing strategy options- Marketing strategy- identifies a firms target market(s), a tie in merchandising mixtheir four Ps, the basis upon which the firm plans to build a sustainable competitive advantage * Sustainable competitive advantage- an advantage over the competition that is not easily copied and thus lavatory be maintained over a long period of time. * C ustomer excellence- achieved when a firm develops a value based strategy for retaining loyal customers and provides outstanding customer service * ? Having a strong brand, unique merchandise and great customer service solidify this. Operational excellence- through efficient operations, excellent supply chain management, strong relationships with their suppliers and excellent human resource management to yield productive employees. * Product excellence- involves a focus on achieving high quality products effective branding and positioning is key. * THE MARKETING computer program * Define the business mission * Conduct a situation Analysis(Strengths, Weaknesses, Opportunities and Threats Analysis) * Identifying and Evaluating Opportunities use fragmentation, targeting and positioning * Implement Marketing Mix and Allocate Resources Evaluate Performance Using Marketing Metrics * GROWTH STRATEGIES * Market Penetration- employs the existing merchandising mix and focuses the firms effo rts on existing customers. * May embarrass attracting newfangled customers to the firms existing market, encouraging current customers to back up the firm more often, * Requires efforts such as increased advertising and surplus sale and promotions, intensified distribution efforts in geographic areas where the product or service is already sold. Market Development Strategy- employs the existing marketing offer to reach new market ingredients whether domestic or international * international expansion is riskier because firms must deal with differences in culture, government regulations, supply manacles and language. * Product Development Strategy- offers a new product of service to a firms current market. * Diversification strategy- introduces a new product or service to a market segment that currently is not served * Diversification opportunities may be either related or unrelated.When related the current target market and or marketing mix shares something in general with the new opportunity * Unrelated diversification lacks any common elements with the present business, so they do not capitalize on the cores strengths associated with markets or products. They are very risky. 7. Different types of Marketing enquiry options and their pros and cons? * Market Research Process * 1) Define the problem * 2) Develop the research plan * 3) call for entropy * 4) Develop findings 5) Take Actions based on your findings * Sources of Data * elementary Research- original data collected by researchers themselves * Quantitative research is data analysis based on archival data, panel data or questionnaires from a large group of respondents * Qualitative research (e. g. ethnographic research) provides a holistic view of a research problem by combine a larger number of variables, but asking only a few respondents * Secondary research- data collected and nalyzed by someone else * wildcat Research- attempts to begin to understand the phenomenon of interest also pro vides initial information wen the problem lacks any clear definition * Conclusive Research- provides the information needed to confirm preliminary insights which managers green goddess use to pursue appropriate courses of action * Observation- exploratory research method that entails examining the purchase and consumption behaviors through personal or video camera scrutiny. In-Depth interview- exploratory research technique in which trained researchers as questions, listen to and record the answers and pose additional questions to polish off or expand on a particular issue. * Survey- a overbearing means of collecting information from people that generally uses a questionnaire * unregulated questions- open ended questions that allow respondents to answer in their own lyric * Structured questions- close-ended questions that proved respondents with specific answers to evaluate. How to evaluate the data- * Who collected the data? * Would there be any reason to purposely misrepresen t the facts? * For what purpose was the data collected? * How / when was the data collected? * Are the data internally reconciled and logical in the swooning of known data sources or market factors? * Is the promoter available? 8. Coke Case? After 99 historic period of Coca-Cola, executives decided to abandon their formula and start over. In the 1970s people began preferring Pepsi to Coke during taste test groups.Coke conducted their own tests and found the kindred results. Looking to regain the market share, they decided to change their formula. Perception of this idea varied widely during focus group interviews. Secret tests of different degree Celsius formulas in cities across the country showed that 55% of people preferred the new(a) Coke. Executives conducted a press conference to release this information. News spread quickly, and presently complaints came pouring in when people were aware. After this release only 30% of people preferred the new Coke.This is said to be the Marketing blooper of the Decade 9. John Quelchs ideas on the New Normal (under lecture 3 or lecture 4? slides)? * New Normal types of consumers Slam-on-the-brakes (sudden loss of income) Pained-but-patient(see light at the end, hope) Live-for-today(have job, party like 1999 Comfortably-well-offs(willing to postpone for now) * New Normal types of purchase Essentials (switch from organic to non-organic or switch brands). Treats (minimize quantity or frequency of purchases (e. g. , Haagen Daz).Post-ponables (e. g. , better-looking ticket items like washers, TVs, remodeling, dental work, plastic surgery) Expendables (e. g. , multiple vacations per year, private schools, eating out, going out to movies) 10. Segmentation, target market, repositioning? * Types of Segmentation- * Niche Marketing * concentrate on puckering the needs of one specific target market * Often the best strategy for small companies in a large market * Can be risky if the niche is not large enough to be p rofitable * Differentiated Marketing Using several(prenominal) different marketing mixes to target several different target markets * Allows companies to target a larger number of customers * Can lead to higher market share overall * Can be herculean to maintain constitute efficiencies with multiple marketing mixes * Individual Marketing * Customizing the marketing mix to meet mortal needs * Ideal because marketers are meeting the needs of individual customers * Requires very detailed information on customers * Can be difficult/expensive to implement Demographic Segmentation * Gender * Age * stimulate/Ethnicity * Income Level * Occupation * Education Level * Household size or composition * Psychographic Segmentation- * Based on social class, lifestyles, personality and beliefs * Often reason out from activities, interests and opinions * Can be difficult to categorize consumers but categorizations are belike to be more accurate than simple demographic segmentation * Criteria fo r good segmenting- * Consumers within a segment are homogeneous. * Consumers between segments are heterogeneous. The segment is profitable. * The segment is reachable. * Criteria for evaluating Segment Attractiveness * Size of the segment * Expected price to reach the segment * Expected growth of the segment * Competition (ie 5 forces framework) * Company objectives and resources (e. g. , synergies with other product lines or brands) * Targeting is evaluating each market segments attractiveness and selecting one or more segments to enter. To do this, two steps are involved * Developing measures of segment attractiveness * Selecting the target market Positioning- * Goal Show consumers that your brand can offer them more value than the competition can. * Positioning by competitors Hertz- Were 2, so we try harder * Positioning by attribute Sendodyne- The toothpaste for sensitive teeth * Positioning by use or application Nyquil- The nighttime, sniffling, sneezing, coughing, aching, stu ffy head, fever so you can rest medicine * Positioning by user Pepsi- The Choice of the new generation * Positioning by product class Taco Bell- trust outside the bun * 11. Reliability and severeness * Reliability is the consistency of your measurement, or the degree to which an instrument measures the same way each time it is used under the same condition with the same subjects. In short, it is an estimate of the repeatability of your measurement. * Is an instrument reliable? * Test / Retest in this approach you have the same subjects take the same survey multiple times.The idea behind test / retest is that subjects should get the same scores on test 1 and test two. * Internal consistency in this approach you group similar questions together and measure how highly correlated they are with one another Cronbachs important is a measure of correlation used in this method * Validity is more difficult to define than reliability but basically hardihood is a measure of how close w e are to the truth when we conduct marketing research.Two examples * Construct validity are we really measuring what we think were measuring? e. g. , satisfaction, brand loyalty * External validity will our results apply to other settings and contexts or are they limited to the subjects / contexts that we chose for our study? e. g. , pupil subjects * * * * * *