MKTG 501 Midterm Juliann Allen

value innovation across the circus industry

what does the Strategy Canvas of Cirque du Soleil measure?

marketing

defined by the American Marketing Association as "the activity, set of institutions, & processes for creating, communicating, delivering, & exchanging offerings that have value for customers, clients, partners, & society at large; is about identifying & meeting human & social needs in a way that harmonizes with the goals of the organization

marketing management

the art & science of choosing target markets & getting, keeping, & growing customers through creating, delivering, & communicating superior customer value

product, place, price, & promotion

list the 4 Ps of marketing

goods, services, events, experiences, persons, places, properties, organizations, information, & ideas

list 10 things that could be marketed

perceived value = benefits received / monetary costs + non-monetary costs

what is the formula for perceived value?

functional, emotional, life changing, & social impact

list the 4 categories of elements of value

technology, globalization, physical environment, & social responsibility

list 4 major forces that affect marketing

holistic marketing

a business philosophy that treats your entire organization & all its customer interactions as a single, unified whole

internal, integrated, relationship, & performance marketing

list 4 areas of holistic marketing

the value curve of the wine industry

what does the Strategy Canvas of [yellow tail] measure?

market-value concept

involves every functional area actively focusing on creating value for customers, the company, & collaborators

marketing myopia

means centering on the product itself rather than the need it is designed to fill; In truth, there is no such thing as a growth industry, I believe. There are only companies organized & operated to create & capitalize on growth opportunities

product value

refers to the functional & emotional benefits a user gains from a good or service

market value

the financial price an asset or product can command on the open market based on supply, demand, & perceived worth

functional, geographic, product or brand, market, & matrix organization

5 different organizations of the marketing department

marketing plan

the strategy for implementing the components of marketing: creating, communicating, delivering, & exchanging value

strategy

involves choosing a well-defined market in which the company will compete & determining the values it intends to create in this market; need to know target market & value proposition

tactics

define the key aspects of the offering developed to create value in a given market

company, collaborators, competitors, customers, & context

list the 5Cs in the 5-C framework

optimal value proposition

a clear, concise statement that explains exactly why a target customer should choose your product over competitors

company, collaborator, & customer value

what 3 things make up the optimal value proposition?

product, service, brand, incentives, price, communication, & distribution

list the 7 tactics defining the marketing offering (7 Ts)

mission

seeks to answer the question, what business are we in?; concretely expresses what the organization does

vision

seeks to answer the question, what do we want to become?; future-oriented

mission statements

focus on a limited number of specific goals; stress the company's major policies & values; take a long-term view; are as short, memorable, & meaningful as possible

internal & external environment

what is included in a situation analysis? (check chapter 2 powerpoint for analysis of Frontier Airlines)

current marketing strategy, current marketing performance, organizational resources, & organizational culture

4 factors in the internal environment

economic factors, demographic trends, cultural & social trends, political & legal regulations, technological changes, price & availability of natural resources, competition, suppliers, & customers

9 factors in the external environment

strengths, weaknesses, opportunities, & trends

what does a SWOT analysis stand for?

goals

broad, long-term destinations that align with your overall business vision

objectives

the specific, measurable, & time-bound steps you take to get there

evaluating performance, monitoring the environment, & updating the marketing plan as needed

list 3 ways to identify controls

need recognition, information search, evaluation of alternatives, purchase, & outcomes/post-purchase behavior

list the 5 steps of the customer decision making process

needs

basic human requirements, such as air, food, water, clothing, & shelter; biological & psychological

wants

needs become ________ when directed to specific objects that may satisfy the need

demands

are wants for specific products backed by the ability to pay

physiological needs (food, water, air, shelter, sex), safety & security needs (protection, order, stability), social needs (affection, friendship, belonging), ego needs (prestige, status, self-esteem), & self-actualization (self-fulfillment)

list 5 categories in Maslow's Hierarchy of Needs

elaboration likelihood model

the proposition that attributes can be changed by either one of two different routes to persuasion, & that the cognitive elaboration related to the processing of information received via each route is different; central route & peripheral route

central route

relies on logic, facts, & deep cognitive processing to persuade customers, typically working best for high-involvement products

peripheral route

targets surface-level emotions, aesthetics, & mental shortcuts, making it ideal for quick, low-involvement consumer decisions

age, gender, income, occupation, marital status, & geographic location

list 6 demographic factors

household

the family life cycle details the phases that most families go through, each representing a viable target segment to marketers of many products; moving, marriage, a child's birth or adoption, the death of a close family member, significant changes in one's employment, & caring for older relatives

lifestyles

psychographics involve segmenting consumers according to their lifestyles, which consist of consumers' activities, interests, & opinions

self-perception

consumers often select products that are consistent with their self-images; consumers may select different self-image types to guide them in different situations; consumers can extend their self-images; consumers sometimes wish to change or improve themselves (clothing, cosmetics, & accessories offer consumers a way to alter their appearance)

self-image

how people perceive themselves

perception

the process by which individuals select, organize, & interpret stimuli into a meaningful & coherent picture of the world; about consumers' subjective understandings rather than objective realities

selective attention

people are more likely to notice stimuli that relate to a current need; people are more likely to notice stimuli they anticipate; people are more likely to notice stimuli whose deviations are large in relationship to the normal size of the stimuli

selective distortion

the tendency to interpret information to fit our perceptions

sights

_______ in a retail outlet or designs of websites affect which brands we choose & use

ambient scents

________ in retail environments enhance the shopping experience & reduce the perceived amount of time looking at merchandise, waiting in line & waiting for help

touch

the choice between shopping online & shopping in the store is often made around the ability to _______ products in the store; often leads to more purchases;

interpersonal touch

the effect of __________ depends on one's personal preference for touch

music

shopping to ______ primes the release of dopamine, which creates a sense of pleasure for shoppers & puts people in a generous mood

salty, sweet, sour, bitter, & umami (the full-bodied taste of chicken soup, cured meat, fish stock, seaweed or cooked tomato)

list the 5 tastes known to the human palate

differential threshold

the minimal difference that can be detected between two similar stimuli

just noticeable difference

what is the differential threshold also referred to as?

perceived risk

the uncertainty that consumers face when they cannot foresee the consequences of their purchase decisions

seek additional information, remain brand loyal, & buy the most expensive item

list 3 ways to reduce perceived risk

emotions

mental stated that arise spontaneously rather than form conscious effort & reflect people's positive or negative reactions to internal & external stimuli

memory

the brain's ability to record, store, & retrieve information & events

episodic, semantic, & procedural memory

list 3 long-term memory models

associative network memory model (set of nodes & links)

memory model that is associated with brands

memory retrieval

memory model explaining that marketers want brands to be accessible in consumers' minds

cultural value

an expression of a collective principle, standard, or priority of a community

achievement & success, time & activity, efficiency & practicality, progress, materialism, individualism & conformity, freedom of choice, & youthfulness

list 8 American core values

reference groups

serve as sources of comparison, influence, & norms for people's opinions, values, & behaviors

families

most important reference groups

word of mouth (WOM)

oral or written communication in which satisfied customers tell others how much they like a business, product, service, or event

business markets

consist of all the organizations that acquire goods & services used in the production of products or services that are sold, rented, or supplied to others

fewer but larger buyers, close supplier-customer relationships, professional purchasing, multiple buying influences, derived demand, geographically concentrated buyers, & direct purchasing

list 7 things that business markets have

problem recognition, need description, product specification, supplier search, proposal solicitation, supplier selection, contract negotiation, & performance review

list the 8 steps in the buying process

transitioning from products to solutions (systems buying/selling), enhancing services, building business-to-business brands, overcoming price pressures, & managing communication

list 5 ways to develop an effective business marketing program

define the problem, develop the research plan, collect the information, analyze the information, & make the decision

list the 5 steps in the marketing research process (look at last slide in chapter 5 powerpoint for example problem)

primary & secondary data

list the 2 types of data sources

observational research/ethnographic research, focus group research, survey research, & behavioral research

list 4 research approaches

internal data, social listening, web analytics, commercial data, public data, & academic data

list 6 ways to get marketing information

questionnaires, qualitative measures, & measurement devices

list 3 research instruments

sampling plan, contact methods, & data mining

list 3 ways to collect information

to identify prospects, to decide which customers should receive a particular offer, to deepen customer loyalty, to reactivate customer purchases, & to avoid serious customer mistakes

list 5 reasons for data mining

targeting

the process of identifying customers for whom the company will optimize its offering

mass marketing/undifferentiated, multi-segment, & mass customization

list 3 ways of identifying target customers

target compatibility

a reflection of the company's ability to outdo the competition in fulfilling the needs of target customers (i.e., create superior customer value)

business infrastructure, access to scarce resources, skilled employees, technological expertise, strong brands, collaborator networks, & core competencies

list 7 different target compatibilities

target attractiveness

reflects the ability of a market segment to create superior value for the company

customer revenues & costs of serving target customers

list 2 kinds of monetary values

social, scale, & information value

list 3 kinds of strategic values

personas

detailed profiles of one or more hypothetical target customers

enterprise rentals & allegiant airlines

list 2 companies with single-segment targeting

Hallmark & Nike

list 2 companies with muli-segment targeting

demographic segmentation

age, stage in lifecycle, gender, income, ethnicity & culture

yelp

list a company with geographic segmentation

behavioral segmentation

user status, usage rate, buyer-readiness stage, loyalty status, & occasions

psychographic segmentation

a market research method that groups customers by their intrinsic, psychological traits such as values, beliefs, lifestyles, & motivations

segmenting business markets

demographic factors/operating variables, purchasing approaches, situational factors, & personal characteristics

demographic, geographic, behavioral, & psychographic factors

list the 4 ways to define a customer profile

customer value proposition

based on the difference between benefits the customer gets & the costs he or she assumes for different choices

functional, psychological, & monetary values

list the 3 different types of customer value propositions

positioning

the act of designing a company's offering & image to occupy a distinctive place in the minds of the target market

points of difference

desirable to consumer, deliverable by the company, & differentiating from competitors