494 Midterm pt 2

Pyramid of corp. social responsibility

CSR
- Philanthropic - be a good corp. citizen
- Ethical - do what is right and just
- Legal - obey the law
- Economic - be profitable

Sustainability Theory

Argues that companies that practice sustainable strategies will beat the competition

Current issues

- green marketing (lies about sustainable products)
- greenwashing (org spends more money on enviro. friendly ads than making sustainable products)
- cause-related marketing (org aligns with a worthy cause)
- co-opting social justice movements (pride month)

Segments

A group of people with similar characteristics that cause them to have similar needs and wants

Segmentation

The process of breaking a market into groups based on similar wants and needs

Segmentation Bases

- geographic - location
- demographic - age, income, gender, race
- psychographic - lifestyle, beliefs, attitude
-Behavioral - usage, behavior

How to conduct a segmentation study

1. Select a market
2. Choose a base for segmentation
3. Select segmentation variables
4. Profile the segment(s)
5. Select targeted market(s)
6. Design, implement, modify + maintain marketing mix activities

Segment selection criteria

- Substantiality
- Measurability
- Responsiveness
- Accessibility
- Corporate Fit

Targeting Strategies

- undifferentiated (everyone in the market is targeted)
- concentrated (org focuses on one segment)
- multisegment (org targets multiple segments)

Cannibalization

When a company has multiple brands/versions available to customers that end up competing against each other

Positive Cannibalization

Trading UP to a better/more valuable product

Negative Cannibalization

Trading Down to a worse/less valuable product

Cannibalization pros and cons

Pros: Customers may come in for a less valuable product and end up purchasing a more valuable product
Cons: If a less valuable product is more popular, the cheaper brand becomes the face of the company - making them seem less valuable overall

How do you minimalize cannibalization

product differentiation OR shoot for positive cannibalization
- different price points
-

POP/POD Framework

Point of parity - what every brand implements to their product
Point of Differentiation - what makes your product different from competitors

To create successful positioning strategies, make sure they are:

- meaningful/relevant
- unique
- realistic
- actionable
- sustainable
- believable

Positioning Bases

- Attribute
- Price + quality
- Use / application
- User imagery
- Product class
- Competitor
- Emotion

Positioning Statement templates

Among [target market], [X] is the brand of [frame of reference], that [POD] because [reason to believe].

Brand promise

What a company promises it will deliver to consumers

Brand experience

What a consumer actually experiences

Brand perceptions

Gathered from performance evaluations:
dissatisfied - experience does not meet expectations
satisfied - experience meets expectations
delighted - experience exceeds expectations

Brand identity

Often correlated with a brand logo or slogan and helps influence brand perception and brand experience

Brand awareness

a crucial aspect for consumers to begin making purchase choices - first stage in becoming a customer

Brand elements

- Company name
- logo/slogan
- Product audio
- Color
- Graphics
- Shape
- URL
- Character
- Packaging
- Smell / Taste

Brand relevance

When there is only one relevant brand of choice for consumers

Brand preference

A consumers preferred brand of choice
- Functional
- Habitual
- Emotional
- Social
- Self-expressive

Brand loyalty

Consumers will not switch brands even if they can save money with a similar product and consumer has a strong connection to the brand

Types of brand loyalty

Behavioral - customer continuously buys a specific product/service/brand
Normative - from societal norms
Attitudinal/Affective - emotional

Categories + Subcategories

Help consumers + companies understand and convey where their product fits
- allows companies to innovate and create new cats + subcats

Brand value

Initiated by a company but created and validated by consumers,
how much a product/brand is worth from a consumers POV

Types of benefits

Functional - taste, look, feel, etc.
Habitual - you've always used this product/brand
Cost - cheapest, modestly priced, or most expensive
Emotional - makes you feel good
Social - feel that you belong
Self-expressive

Brand storytelling / narrative + purpose

Weaving the narrative of the brand w/ emotions that entice people to care about a brand beyond its products/services

Brand architecture

How companies set-up brans and products within categories and sub-categories

Brand extension

When a brand expands into a new an different product category

Line extension

When a brand expands on a product line by adding a new variation to an existing line

Flanker brand

A smaller brand under a parent company that allows them to target a new market

Market stretching

Going "up marketing" with high prices products or "down marketing" with lower prices products

CRM Funnel

Customer Relationship Management Funnel
New acquisitions
v
Loyal customers
v
depatures

Types of customers

Existing customers
New customers
Internal customers - an employee of the org.

Current customer environment + implications

Consumers have paralleled access between companies, consumers are more demanding than ever
- Product quality
- customer service
- transparent pricing
- access to company management

CLV

Customer Lifetime Value - Key performance indicator
The worth of a customer over their lifetime of doing business with an organization

CAC

Customer Acquisition Cost
Companies need to know how much they should spend on sales + marketing to acquire a new customer

Common customer expectations

For companies to have great, safe, useful, and affordable products
- to be heard
- good customer service
- company should take a stand on social issues
- company should take responsibility for their actions

Sources of customer expectations

- brand reputation
- brand advertisements
- other consumers
- own personal past experiences

Omnichannel implications

On/Offline and potentially in a variety of medium that sell the same products over multiple touch-points (or channels)

Stakeholder Theory

theory that argues that companies are responsible for internal and external stakeholders.

Sustainability theory

companies that practice sustainable business strategies, will more successful in the long run (to the majority of companies)

Cannibalization

when diff brands or lines of the same co compete against each other 

Brand functions

• Brands as self-extension

• Brand promise (Expectations)

• Brands help consumer roles

• Brand community

Forms of brand community

• Pool structure: all members share an identity (ex: catholic person)

• Hub: connect through a central figure (the most risky because if central figure is gone, then they can move onto another brand)

• Web: members of the community form an individual connection (sisters within a sorority)

Types of costs

Financial cost

Time cost

Opportunity cost

Steps in the decision making process

• Awareness

• Research

• Consideration (evaluation of alternatives)

• Decision

• Evaluation 

Motivation and implications of Maslow’s hierarchy

motivation is the result of a person's attempt at fulfilling five basic needs: physiological, safety, social, esteem and self-actualization. Physiological needs are those needs required for human survival such as air, food, water, shelter, clothing and sleep.