marketing and its strategy
What is the marketing concept?
The process of creating, maintaining, and improving mutually valuable customers relationships
What are the steps of the market research process?
Step 1: Problem Definition
Step 2: Develop the research plan/ approach
Step 3: Data Analysis: Interpretation and Context
Step 4: Make a decision
Step 5: Present Findings
Name 2 ways to increase adoption from consumers
Reciprocity - when the company gives a consumer something with no strings attached the consumer then feels some pressure/ obligation to purchase something from the company
Scarcity - the company frames the product as being limited therefore the consumer buys it NOW rather than later
What are the bases of segmentation?
Demographic- age, gender, income, occupation, education, religion, etc
Psychographic - lifestyle, personality
Behavioral - occasions
Geographic- region, city size
what is a brand?
A promise from the company to its customers to deliver value consistently over time
What marketing growth strategy would you engage in if you have a new product and a new market?
Diversification
Market penetration - existing market, existing products
Market development- new markets, existing products
Product development- existing markets, new products
Secondary research
Despite her dislike of sugary meals, mom is buying the newest sugar cereal that her son has been begging for the past week. Identify the roles of the consumer buying process in this scenario.
Influencer - the son
Initiator- mom
Decider- mom
User- son
Buyer - mom
In the middle to appeal to all segments.
Homogenous preference: segments are all in one spot - shows a market where all the consumers have roughly the same preference. the market shows no natural segment.
Diffused preference: segments all over the place - consumer preference may be scattered throughout the space, indicating that customers vary greatly in their preferences
what are 3 characteristics of a brand?
name, characters, logos
what is the name of the strategic business unit from the Boston Consulting Group Approach allows firms to invest in other products?
Cash cows due to low market growth rate, high market share - >produces cash
stars- high market growth rate, high market share -> profit potential; may need heavy investment to grow
question marks- high market growth rate, low market share ->requires cash to hold the market share
dogs- low market growth rate, low market share -> low profit potential
What is the difference between primary data and secondary data?
100 Bonus Point Opportunity! - Name an example of primary research
Primary data you (the firm) are collecting the data yourself and secondary data you (the firm) are getting the research from a 3rd party
BONUS ANSWERS
Primary : experimental, ethnographic, word association, story completion, associations in pictures
What are the 2 theories of attitude behavior relationship that assess how much consumers plan to actually purchase a product?
Theory of Reasoned Action - the role of purchase intentions and social factors
Theory of Planned Behavior - perceived behavioral control
Segments will be targeted if they are...?
Substantial
Accessible
Measurable
what brand strategy is a company engaging in if they have an existing brand name and a new product category?
Brand extension: existing brand name, new product category
line extension- existing brand name, existing product category
cobranding- new brand name, existing product category
new brands- new brand name, new product category
Market penetration: existing markets, existing products
changed the physical appearances/ diversified Barbie, added young boys to target audiences, created the "Imagine the Possibilities" advertisement
What do managers need to know about from market research?
Name at least 3 items
Markets- are they growing? what's the competition? what are the opportunities and threats?
Segmentation, Targeting, Position - segments? benefits? position of competition?
Products- new uses? how have they been evaluated in the past? conjoint analysis
Price- elasticity
Place- size of the distribution channel? market share?
Promotion- trust, word-of-mouth, advertising recall (aided and unaided)
Customer Lifetime Value - net profit of a customer relationship
List the stages of the adoption process and explain the stages
Awareness: consumer is aware of the product
Interest: consumer seeks information about new product
Evaluation: consumer considers trying new product
Trial: consumer tries new product on small scale
Adoption: consumer decides to make regular use of product
When FedEx developed popularity it emphasized their ability as a reliable shipping company to get consumers their package the next day when needed with its slogan "when it absolutely, positively has to get there overnight. What is this an example in relation to its positioning strategy?
200 BONUS POINTS OPPORTUNITY!: how has the original position strategy with this slogan now changed
The slogan provided a POD (point of differentiation) by promoting what differentiates FedEx from other shipping brands
BONUS ANSWER: The slogan is now a POP (point of parity) as it is common for all shipping companies to be able to reliably get consumers their packages overnight delivered
Describe how Google is a branded house
Google produces many different products in one overall sector (technology) and under one umbrella name
ex; Google Calendar, Gmail, Youtube
Branded house- brands that have sub-brands, but are all marketed and operated under the umbrella of the parent brand
House of brands- a parent brand will maintain focus on a single well-known consistent brand but have sub-brands that have their own distinguishing factors
What is the marketing mix?
List the elements and explain what they mean
The 4 P's
Product: firm's offering, what creates value for customers
Price: represents the sacrifice customers must make in order to buy, use or consume the product/service
Place- distribution channel
promotion- communicate value to customers
How did Coke fail in market research in relation to the launch of New Coke?
Coke focused only on tasting profiles and not on how consumers would feel about the change in Coke which is a staple product in the lives of many
Provide an example of the buying decision process that include the stages of buying decision process
Example should include
Problem recognition
Information search
Evaluation of alternatives
Purchase decision
Post-purchase behavior
What are the 2 long-term segment attractiveness and describe them
Intense segment rivalry- less attractive if numerous strong/aggressive players present
threat of potential entrants- you want entry barriers to be high, and you want exit barriers to be low
A luxurious club owner struck a conversation with a local college student that led to the owner inviting the student to the club. Not knowing that the man owned the club, the student tells the man that he would prefer to go somewhere else as the club is "too boujee and uptight" and "not in the tax bracket" of a current college student. The club owner walks away from the conversation realizing that he is missing out on an entire target market and has recently had an interest in expanding his business and brand with potentially opening a new sports bar with a new theme. what brand strategy is the owner engaging in? Be specific
The club owner is engaging in line extension and particularly downward stretching.
Because he is continuing to use his existing brand name in an existing product category. In particular he is downward stretching because the owner is trying to compete with low end competitors and attract lower end customers different than what he gets at the upscale club.