Marketing Ch. 2 + 7 + 9

What are metrics?

Numeric measures used to track progress toward objectives.

What is marketing analytics?

Using data and models to measure marketing performance and guide decisions.

What is a marketing dashboard?

A visual display (like charts or KPIs) showing key marketing metrics in real time.

Why are metrics important?

They help marketers make data-driven decisions and improve accountability.

The Marketing Mix (4 P’s)

Product, Price, Place, Promotion

Product

What you offer

ex: Features, design, packaging, services

Price

What customers pay

ex: Discounts, payment terms, price points

Place

How it’s delivered

ex: Stores, websites, distributors

Promotion

How you communicate value

ex: Advertising, PR, social media, personal selling

What is strategic planning?

The process of setting long-term goals and deciding how to achieve them based on the organization’s strengths, customers, and market opportunities.

What are the three types of organizations?

For-profit,

nonprofit, and

government agencies.

What are the three levels within an organization?

Corporate → Strategic Business Unit (SBU) → Functional.

What’s found at the corporate level?

Company-wide direction, mission, core values, and culture.

What’s found at the SBU level?

Separate divisions or brands that each focus on a specific market or product line.

What happens at the functional level?

Departments (marketing, finance, etc.) create specific action plans and carry them out.

What is a mission statement?

A clear, inspiring statement that explains why the organization exists and what it aims to achieve.

Why is a mission statement important?

It guides decisions, sets priorities, and helps unify the organization’s purpose.

What is marketing myopia?

Focusing too much on selling products instead of meeting customer needs.

What are common types of goals/objectives?

Profit,

sales,

market share,

customer satisfaction,

employee engagement, and

social responsibility.

What makes a good objective?

It’s SMART —

Specific,

Measurable,

Achievable,

Relevant, and

Time-bound.

What does SWOT stand for?

Strengths,

Weaknesses,

Opportunities, and

Threats.

What’s the purpose of a SWOT analysis?

To understand where the company stands before setting goals or strategies.

What are the four strategies in the Product-Market Growth Matrix (Diversification Analysis)?

• Market Penetration – Increase sales in current markets with current products.

• Market Development – Enter new markets with existing products.

• Product Development – Introduce new products to current markets.

• Diversification – Launch new products in new markets.

What are the four categories in the BCG Matrix?

Stars,

Cash Cows,

Question Marks, and

Dogs.

What do Stars represent in the BCG Matrix?

High market growth and high market share — invest to maintain leadership.

What are the three main phases of the strategic marketing process?

Planning,

Implementation, and

Evaluation.

Planning Phase Steps

1. SWOT analysis

2. Market-product focus and goal setting

3. Marketing program (4 P’s)

Implementation Phase

• Obtain resources

• Design the organization

• Develop schedules

• Execute the marketing plan

Evaluation Phase

• Compare results to goals

• Identify deviations

• Take corrective actions

What is marketing research?

The process of defining a problem or opportunity, collecting and analyzing information, and recommending actions to improve marketing decisions.

Why is marketing research important?

• Reduces risk in decision-making

• Helps identify market opportunities and threats

• Understands customers’ needs, behaviors, and satisfaction

• Tests new products, pricing, or promotions before launch

The Marketing Research Process

• Define the problem/opportunity

• Develop the research plan

• Collect relevant information

• Develop findings

• Take marketing actions

Define the problem/opportunity

• Identify what you need to know and why.

• Example: “Why are sales declining in Region A?”

Develop the research plan

• Specify data needed, methods, and constraints.

• Choose between primary or secondary data.

Collect relevant information

• Use surveys, interviews, observations, experiments, or databases.

Develop findings

• Analyze data, interpret results, and find key insights.

Take marketing actions

• Recommend and implement decisions, then evaluate the outcomes.

What are “measures of success”?

Criteria or standards used to evaluate research outcomes.
Example: “If 70% of customers prefer Concept A over Concept B, we’ll move forward.”

What are “constraints”?

Limitations or restrictions on the research process — such as time, budget, or data availability.

Tools for Conducting Marketing Research

• Surveys and Questionnaires – Ask customers directly about their opinions or behaviors.

• Focus Groups – Small group discussions guided by a moderator.

• Observation – Watch people in real or online environments.

• Experiments – Test cause-and-effect (e.g., A/B testing ads or prices).

• Analytics and Dashboards – Track digital or market data in real time.

• Purchased Data – Use syndicated data from firms like Nielsen or Experian.

Secondary Data vs. Primary Data

Type	Description	Advantages	Disadvantages
Secondary Data	Already collected for another purpose	Quick, inexpensive	May be outdated, not specific
Primary Data	Collected specifically for the current project	Relevant, up-to-date	Costly, time-consuming

Quantitative vs. Qualitative Data

Type	Description	Example

Quantitative

Numerical data used to measure things

“60% of customers prefer product A”

Qualitative

Non-numerical insights about feelings or motivations

Interview comments, focus group feedback

Research Methodologies

Method	Description	Example

Communication (Survey)

Ask people directly via interviews, phone, online forms

Customer satisfaction survey

Observation

Watch people’s behavior

Tracking shopper movement in a store

Experiment

Manipulate one factor to see cause and effect

Test two ad designs to see which performs better

Purchased Data

Buy external reports or databases

Nielsen TV ratings, social media trend data

Types of Research Designs

Exploratory = explore the problem
Descriptive = describe what’s happening
Causal = test what causes what

Validity, Reliability, and Representativeness

Concept	Meaning	Why It Matters

Validity

The research measures what it’s supposed to measure

Ensures accuracy of results

Reliability

Consistency of results when repeated

Results should be stable over time

Representativeness

How well the sample reflects the overall population

Ensures findings can be generalized

What is a product?

Anything offered to satisfy a need or want — includes goods, services, and ideas.

What is a good?

A tangible item you can touch and own (e.g., a phone, clothing, food).

What is a service?

An intangible activity or benefit (e.g., haircut, banking, education).

What are the 3 layers of Product?

• Core Product

• Actual Product

• Augmented Product

Core Product

The main benefit or solution the customer values.

• Example: A customer buys running shoes for “comfort and performance.”

Actual Product

The tangible, physical product — features, design, brand name, packaging.

• Example: Nike Air Zoom sneakers.

Augmented Product

Additional value — warranties, customer service, delivery, installation.

• Example: Free returns or loyalty rewards.

Consumer Products

Purchased by the final consumer for personal use

• ex: Shampoo, laptop, snacks

Business Products

Used in producing other goods/services or for resale

• ex: Machinery, office supplies, software for company use

Types of Consumer Products

• Convenience

• Shopping

• Specialty

• Unsought

Convenience

Purchased frequently and quickly, with little effort

Shopping

Compared on price, quality, style

Specialty

Unique items with brand loyalty; customers make special efforts to buy

Unsought

Products consumers don’t think about until needed

Product Line

A group of related products under one brand

Product Mix

All product lines offered by a company

Item modification

Change product features (e.g., new flavor, design update)

Line extension

Add new variations within a product line (e.g., new shoe style)

Product mix expansion or contraction

Add or drop entire lines to fit market demand

Line Depth

Number of items within a single product line.

• Example: Different models of iPhones (iPhone 14, 15, 15 Pro).

Mix Width (Breadth)

Number of product lines offered by a company.

• Example: Apple’s phones, laptops, tablets, and watches.

Why Firms Create New Products

• To meet changing customer needs

• To stay competitive

• To take advantage of new technology

• To increase profits or expand markets

• To replace outdated or low-selling products

New Product Development (NPD) Process

1. new-product strategy development

define the role of new product in overall objectives

2. Idea generation

brainstorm ideas from customers, employees, and competitors, R&D

3. Screening and Evaluation

Eliminate poor ideas early.

Business analysis

Assess market potential, costs, profits, and risks.

Product development

Create and test prototypes.

Marketing Testing

create and test prototypes

Commercialization

launch product full-scale to the market

Why New Products Fail

• Poor product quality or design

• Weak market demand

• Bad timing or high competition

• Inadequate marketing support

• Price too high or value unclear

• Poor understanding of customer needs

Continuous Innovation

Small improvements, no new learning required

Dynamically Continuous Innovation

Moderate change, some learning required

Discontinuous Innovation

Major change; new consumption patterns

Open Innovation

When firms use external as well as internal ideas and resources to develop new products.