Exam 1 Study Guide – Marketing 360

Chapter 1 Overview of merchandise * Inertia to Passion * * 80/20 Rule * 80% of boodles come from 20% of consumers * Economies of Scale * The more you understand of activething, the slight(prenominal) it costs per unit * i. e. Microsoft Office 2014 * Wholesale Costco * Understand securities intentnessing amalgamate (4 Ps)/From customer Perspective 4 Cs * foodstuffplaceing go A combination of the crossing itself, the bell of the intersection point, the place where it is made available, and the activities that barge in it to consumers that names a desired response among a set f predefined consumers * Marketing Mix consists ofMarketer Consumer Product client Solution Price Customer Cost Promotion Communication Place Convenience * Exchange * Pg. 12 Occurs when a person gives close tothing and gets something else in return. The buyer receives an object, service, or idea that satisfies a c tout ensemble in all for, and the vendor receives something he or she feels is of equivalent appraise * Trade up-to-dateness * Trade services * Trade behaviors * Exchange pass judgment * Criteria for a Market A merchandise consists of all the consumers who sh atomic physical body 18 a common pauperism that pile be satisfied by a specific harvest and who hasten the resources, pass oningness, and authority to depict a purchase * Utility Time, Place, Possession, crap, info * Utility The givefulness or benefit consumers receive from a growth * Time Utility Storing products until they be needed * Place Utility make 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 assess?Comp peerlessnts of Value * Value Benefits a customer receives from buying a good or service * Value from the customers perspective Price and benefits * Value from the shifters perspective Is the exchange profitable to them, has i t made money * Build Value Goal is to satisfy customer over and over again so that they can build a long-term relationship rather than and now having a one night stand * Customers throw a style value impregnables get by that it can be very costly in terms of twain(prenominal) money and human effort to do whatever it takes to deliver some customers loyal to the company.Samsung Distri neverthelession ChannelVery often these actions pay off, but in that respect argon cases in which keeping a customer is a losing proposition * life story value of a customer How such(prenominal) profit they expect to make from a situation customer * Provide value through warlike advantage characteristic competency- a firms capability that is pukka to that of its contender * Value from high rescripts perspective * Customer rapture Model * Customer Equity * Combined customer life conviction value of all customers Firing Customers * Sustainable combative return * Competitive Advantage A bility of firm to outperform competition, providing customers with benefit competition cant * report distinctive competency (firms capability brilliant to competition) * Turn distinctive competency into unlikeial benefit (important to customers) * Sustainable Competitive Advantage * Distinctive Competencies Differential Benefits * The Value Proposition * Philosophies (eras) Societal Marketing Orientation (New Era) threesome Bottom Line * Emphasis on satisfying broader needs of society (employees, stockholders, and so forth ) This is like merchandise 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 cables length * purlieual, social and financial bottom line * Building long-term relationships, non just satisfying a one time need * i. . McDonalds * Ronald McDonald House * Using paper hamburger cases vs. * If the bottoms (financial, social, environmental) mystify the norm, it becomes the merchandising orientation * Marketing (customer) Orientation * A company that practices the market concept. Determining and then satisfying consumer needs and wants at a profit * merchandising Orientation * Getting the product out the door cut 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 * cardinal time purchases, do not establish relationship with the customer * contest Orientation * Focus is on competitor intelligence. Learning and reacting to what the competition is doing * i. e. low-spiritedes Wherever there was a Home Depot, they would place a Lowes * Product Orientation * Emphasis is on making the product better, takings efficiencies.Best when demand surpasses supply * How is this different from a marketing orientation? non asking what the customers want, making what they wan t. (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 prove firms capabilities? * What products and benefits can we create for customers? * What business ar we in? * What customers should we serve? Avoid marketing Myopia Having a really set apart mission statement, or being short sided * ram ANALYSIS sound judgement of Organizations interior and external environment SWOT Analysis, SWOT interactions * * External environs Identify opportunities and threats to firm from consumers, competitors, prudence, etc. Internal Environment Identify strengths and weaknesses in firms employees, technologies, facilities, finances, etc. Leverage Strengths + Opportunities * Vulnerability Strengths + Threats * Constraint Weaknesses + Opportunities * caper Weaknesses + Threats * Portfolio Analysis Portfolio Analysis a management tools for evaluating a firms business mix and assessing the potential of its SBUs * Individual units at heart a company Nike Swimming within Nike * SBUs (Strategic Business Units) Individual units within a firm, each having its consume mission, objectives, resources, managers and competitors * BCG intercellular substance Star, Dog, Question Mark, Cash moo-cow * Boston Consulting Group (BCG) Growth Matrix Analyzes the potential of products to generate gold for a firm. Tells managers which products they should grow * i. . Different Products Owned by Larger tauten * Strategies for Each Portfolio * Business Portfolio Stars * High industry growth * High call forthual intercourse market cover * Consider potential to stay angiotensin converting enzyme * Requires much investment * Generates relatively high revenues * Cash Cows * Low industry growth * High relative market sh be * 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 * Requires less investment * Generates relatively high revenues Helps you support separate businesses and launch other(a) 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 hunt down it over to get more money? * Spending more money with less or a market share in coincidence to other products * Dogs * Low industry growth * Low relative market share * Generates little profits * Fish or cut dupe * Either get rid of it or reinvent it determine a new use for it.Find a way that it has never been employ forwards * **Exam Question** Selling cutting off 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 accent with New Markets on the bottom left and Existing Markets on the top left) PRODUCT EMPHASIS Existing Products New ProductsMarket insight StrategySeek to increase sales of alive products to alert markets Product Development StrategyCreate growth by alloting new products in existing markets Market Development StrategyIntroduce existing products to new markets Diversification StrategyEmpha size both new products and new markets to achieve growth * Strategic Alternatives Market discernment Market Development Product Development Diversification * Market Penetration Growth strategies designed to increase sales of existing products to current customers, nonusers, and users of agonistical brands in served markets * Market Development Introduce existing products to new markets (geographic area, or it may retrieve reaching new customer segments within an existing geographic area ) * Product Development Strategies Create growth by selling new products in existing markets.May involve extending the firms product line by developing new variations of the item, or it may mean altering or improving the product to provide enhanced surgery * Diversification Strategies Emphasize both new products and new markets to achieve growth. Chapter 3 Marketing Environment * Economic Environment * Marketers must understand prudence and business cycle * Level of Economic Environment LDC, Developing coarse, substantial 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 nurture * In most cases, its economic base is agri shade * Africa and South Asia * amount living is low and so are literacy levels * Developing Country When an economy shifts its emphasis from agriculture to industry, standards of living, educatio n, and the use of technology rise * The future market for consumer goods like skin care products and mobile phones * Developed Country * Boasts educate marketing systems, strong private enterprise, and bountiful market potential for umpteen goods and services * Economically advanced and they offer a wide rand of opportunities for transnational marketers * Competitive Environment Marketers must know what competitors are doing (Competitive Intelligence) * Micro vs. macro controversy * Macro Overall industry, big picture Monopoly one seller controls market, some companies sued for owning a monopoly * Oligopoly beautiful 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 polished share of market, i. e. soaps * Perfect Competition Many small firms all offering similar products, no influence (rare) * Micro environmental competition Competition for $s with products in the homogeneous class, what product alternatives will consumers ingest * Competes on 3 levels * For discretionary income how are people spending disposable income * Product competition different products meeting the same need, i. e. ravel * rat 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? * reason the impact of technology on all aspects of the business * Distribution * Inventory Control * Communication, etc. * Political/Legal Environment/ national Legislation ( stand fors) * Legislation that influences business. excite sure people compete fairly. Sherman Antitrust Act (1890) intended to appropriate mo nopolies by prohibiting price kettle of fish or predatory pricing * upright piano price mending 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 infraction 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 ball-shaped markets, marketers need to understand an d 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 reservoir to judge other people * Ethnography investigateer lives with people they are studying * Demographics * Statistics that streak observable aspects of a population * Population size * Age * Gender * Ethnic Group * Income * Education * Occupation * Family anatomical structure * Social Norms * Specific rules dictating what is right or wrong, acceptable or impossible * What ways to dress, how to speak, what to eat and how to behave * Cultural Values * Deeply held beliefs nearly right and wrong ways to live, that it imparts to its outgrowths * Talking about sex in public * Product Standardization vs. Localization Advocates of standardization palisade that the knowledge base has become so small that basic needs and wants are the same everywhere * A focus on t he similarities among cultures is certainly appeal * Realize large economies of scale because it could spread the costs of product breeding 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 gists 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 roll of tobacco 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 chore? ii. Selling the wine for too much money symptom problem is the sheathcast of cap What is the true issue? b. Identify your population of interest iii. visualis e 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 study will be pull ined and what type of study will be done d. Must determine if we are makeing autochthonic or secondary selective information v. ancient We collect entropy ourselves 1. Finding exactly what you want vi. Secondary roughone else collects the information . Quality may be cheaper, but not as fine 3. Often outdated e. Determining Specific Information Needs vii. Primary information selective information specifically collected and organized for a grouchy marketing information need. Original viii. Secondary information entropy 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 (8-1 0) 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 drinking chocolate beed 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 info use a scale 6. Think frequencies f. Identifying numbers (how many people mountain pass by the mall on campus) 7. Helps tell 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 usage j. Dependent variable measureable outcome 9. Experiments lab 10. Field Studies real world 11. Causal Research Example k. I work for N estle and I take that chocolate country of origin has an impact on rapture with the chocolate iv. Dependent = satisfaction v. breakaway = country of origin vi. Independent variable with 5 choices (USA, Mexico, potbellyada, 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. Personal 14. Stores call researchers to watch people xvi i. Mechanical 15.Device that tracks behaviors (black strip that measures how many cars pass a street) * Different Research workplace Designs * A plan that specifies what information marketers will collect and what type of study they will do * cross-section(a) design A type of descriptive technique that involves the systematic appeal of quantitative information * Longitudinal Design A technique that tracks the responses of the same standard 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 detailed Often outdated * Qualitative You cannot congeal a number on it i. e. are you happy? Yes or no * Quantitative You can put a value/scale number on it * Validity and reliableness * Validity The extent to which research actually measures what it was intended to measure * dependability The extent to which research measur ement 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 out * 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 information 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 servicing them actually costs the firm too much 4. Market field goal Analysis Develop focused promotion strategies based on the records of which customers have bought certain products * Data Collection in Other Countries and Cultures Market conditions and consumer preferences falsify 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 pound language barriers, researchers use the process of back-translation the process of translating material to a extraneous language and then back to the original language Additional Topics * theft 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 first appearance 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 commercial message * Hulls drive theory * As humans, we are outfit to know what we need which drives us * Homeostasis - equilibrium * i. e. shivering when youre bleak Study in 70s (rise of mini theories) claim there are many contributors to consumers * Darwins biological determinism * What instigates 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 clear a new product and it isnt good It can motivate people to move away from the brand as a firm * Negative- having to sell wh ats in inventory * Traditional vs. non-traditional media types * Traditional vs.Nontraditional * imperceptible messaging * Self-help cassette tapes * Lose weight label people got the stop smoking message * Stop smoking people got the lose weight message * Placebo * All of the Knuffs Knuggets * Syphilis study KNUGGET * Testing the spread of syphilis 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 grimness is necessary, but not sufficient for establishing external validity *KNUGGET * We have to have internal validity, otherwise its garb age * 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