MKTG 350 Challenge Areas

Competition laws

Sherman anti trust, clayton act, robinson-patman act

sherman antitrust act

Prohibits monopolies and other activities that would restrain trade or
competition and makes fair trade within a free market a national goal

clayton act

Supports the Sherman Act by prohibiting the combination of two or more
competing corporations through pooling ownership of stock and restricting pricing policies
such as price discrimination, exclusive dealing, and tying clauses to different buyers.

robinson-patman act

Outlaws price discrimination toward wholesalers, retailers, or other producers and requires sellers to make ancillary services or allowances available to all buyers on proportionately equal terms.

Federal food and drug act

Created the Food and Drug Administration (FDA);
prohibited the manufacture or sale of adulterated or
fraudulently labeled food and drug products

Federal trade commission act

Established the Federal Trade Commission (FTC) to
regulate unfair competitive practices and practices that
deceive or are unfair to consumers.

Fair packaging and labeling act

Regulates packaging and labeling of consumer goods;
requires manufacturers to state the contents of the
package, who made it, and the amounts contained
within.

Child protection act

Prohibits the sale of harmful toys and components to
children; sets the standard for child-resistant
packaging.

Federal cigarette labeling and advertising act

Requires cigarette packages to display this warning:
“Warning: The Surgeon General Has Determined That
Cigarette Smoking Is Dangerous to Your Health.”

Consumer product safety act

Created the Consumer Product Safety Commission
(CPSC), which has the authority to regulate safety
standards for consumer products.

Children’s Television Act

Limits the number of commercials shown during
children’s programming

Nutrition labeling and education act

Requires food manufacturers to display nutritional
contents on product labels.

Telemarketing sales rule

Regulates fraudulent activities conducted over the
telephone. Violators are subject to fines and actions
enforced by the FTC

Controlling the assault of non solicited p0rn and marketing act (CAN SPAM)

Prohibits misleading commercial e-mail, particularly
misleading “subject” and “from” lines.

Amendment to the telemarketing sales rule

Establishes a National Do Not Call Registry, requiring
telemarketers to abstain from calling consumers who
opt to be placed on the list.

Do not spam law

Created to reduce spam or unwarranted e-mails.

Financial reform law

Created the Consumer Financial Protection Bureau,
whose aim is to enforce appropriate consumer-
oriented regulations on a number of financial firms
such as banks, mortgage businesses, and payday and
student lenders. It also set up the Financial Services
Oversight Council to act as an early warning system.

Economic growth, regulatory relief and consumer protection act

As identity theft is a major concern in the Internet age,
consumers can freeze their credit files for free so
someone else cannot use their information to open
new accounts

Marketing phases

planning, implementation, control

Marketing steps

define mission/objectives, conduct situational analysis, identify and evaluate opportunities using STP, implement the marketing mix (4 p’s), evaluate performance using marketing metrics

Gen alpha

2010-2025

Gen z

1997-2009

Gen y/millenial

1981-1996

Gen x

1965-1980

Baby boomers

1946-1964

Immediate environment factors

company capabilities, competitors, corporate partners, physical environment

macroenvironment

culture, demographics, social trends, tech advances, economic situation, political and legal

Demographics

gen cohorts, income, education, gender, race and ethnicity

Social trends

sustainability, green practices, health and wellness, food usage

Greener practices associated

Green marketing and green washing

Food usage associated

food deserts

Tech advances associated

AI and gen AI, marketing analytics, robotics, IoT, privacy concerns

Economics associated

inflation, foreign exchange, interest rates

5 step marketing research process

define objectives and research needs, design the research, collect data, analyze and interpret data, develop and implement an action plan

Define objectives and research needs

first step: Clearly identify the objective/what the company needs to learn and weigh benefits/costs

Design the research

Decide what data is needed (numbers, opinions (sentiment), type of customers, etc.) and whether to use primary or secondary research.

Collect data

Gather secondary data that already exist and/or primary data specifically collected

Analyze and interpret data

Turn the data into insights that answer the original question.

Develop and implement an action plan

Use findings to make a marketing decision, such as changing price, advertising, product features, or store layout.

Marketing plan components

current situation, opportunities and threats, objectives, strategy, 4ps, action programs, and financial projections

Primary research

Data collected specifically to answer the current research question.

Advantages: More tailored and useful for a specific problem,

Disadvantages: More costly and time-consuming.

Quantitative: Explore thoughts, feelings, and early insights. Observation, in-depth interviews, focus groups

Qualitative: Collect structured data that can be statistically tested. Surveys, scanner/panel research, experiments

Observation: watching consumers’ purchase/consumption behavior in person, by video, or electronically tracking customers’ movements and responses.

In-depth interview: a trained researcher asks one person detailed follow-up questions,

Focus group interview: a guided discussion with a small group, usually 8–12 people where a moderator uses broad, unstructured questions to learn reactions to products, ads, or ideas.

Secondary research

Information collected before the current research project for another purpose.

Advantages: readily available, saves time, often free or inexpensive.

Disadvantages: may be outdated, biased, not specific enough, or collected using an unsuitable method.

Internal: sales invoices, customer lists, CRM records, previous company reports.

External: U.S. Census, trade associations, books, articles, internet sources.

Syndicated data: data sold by research companies such as Nielsen, IRI, J.D. Power

Scanner v Panel

Scanner data: purchase data collected from UPC barcode scans at checkout. Usually examines sales by store, chain, or region.

Panel data: data collected from the same group of consumers or households over time. Tracks individual/household purchases and may include survey responses.

Surveys

A systematic way of collecting information from people, can be structured/unstructured

Questionnaire: a set of questions designed to meet research objectives.

Unstructured questions: open-ended; respondents answer in their own words.

Structured questions: closed-ended; respondents choose from set answers.

Good questionnaires should:

Use clear, familiar language.

Ask 1 issue at a time→ “Do you like shopping for clothing and food?” (double barrel)

Start broad, then become more specific; demographics usually go last (sequenced)

Avoid misleading, sensitive, double-barreled, and leading questions.

Big data

Extremely large, complex data sets that traditional software cannot easily analyze.

Often considered a type of secondary data (transactions, CRM systems, websites, SM, blogs)

Data warehouse: large storage system (computer files) that holds big data.

Data mining: using statistical tools to find previously unknown patterns and relationships in data.

5 V’s of Big Data

Volume, variety, velocity, veracity, value

Volume

the amount of data collected

Variety

the different forms of data, including numbers, text, images, videos, and SM comments

Velocity

how quickly data are generated, collected, and analyzed AND how promptly marketers need to respond to insights from the data

Veracity

the accuracy, authenticity, and reliability of the data

Value

how useful the data are for decision making

Types of sellers

Manufacturers and service providers: Buy raw materials, parts, supplies, technology, and services to create or support their own offerings

Resellers: Buy products and resell them without significantly changing their form (wholesalers and distributors) earn profit by reselling

Institutions: Orgs like hospitals, schools, and religious organizations that buy goods and services

Often have limited budgets and must make cost-conscious purchases

Government: One of the largest purchasers of goods and services

Buys products and services for public needs, defense, infrastructure, and operations

The U.S. federal government spends trillions annually on procurement

B2B buying process steps

Identify needs, evaluate vendors, purchase products, and assess supplier performance. More formal v B2C, may require bids, contracts, committees, and specifications

Needs recognition

first step of B2B: The organization identifies an unmet need or problem

Product specification

second step of B2B: The organization defines exactly what it needs

Includes product features, quantity, quality, delivery expectations, warranty, maintenance, and service requirements

Request for proposals (RFP)

third step of B2B: A process in which an organization invites vendors to submit bids based on its specifications

Used when the buyer does not already have a preferred supplier

Vendors explain how they will meet the buyer’s needs and provide pricing/terms

Proposal analysis, vendor negotiation, and selection

fourth step of B2B: The buying organization compares proposals and negotiates with potential suppliers

Important criteria can include price, reliability, quality, experience, service, and long-term flexibility

Order specification

fifth step of B2B: The buyer places an order with the chosen vendor

Contract details include quantity, price, delivery schedule, maintenance, service, warranties, and penalties for nonperformance

Vendor performance assessment using metrics

last step of B2B: The buyer evaluates the supplier after purchase to decide whether to continue the relationship

Common metrics: customer service, issue resolution, delivery, and quality

Buying center people

Initiator: Identifies a need and starts the buying process

Influencer: Affects others’ perceptions or decisions

Decider: Has final authority over what to buy, from whom, and under what terms

Buyer: Handles the actual purchasing process and negotiates terms

User: Will use or benefit from the product or service

Gatekeeper: Controls information or access to decision makers

Organizational culture

The values, traditions, customs, and often unspoken guidelines that shape employees’ behavior and decisions. Culture strongly affects how a buying center makes decisions. Salespeople should adapt their approach to the buyer’s culture

Autocratic buying center

One person makes the decision, even if others participate

Democratic buying center

The majority rules after members share input

Consultative buying center

One person makes the final decision but seeks input from others

Consensus buying center

All members must agree before a purchase is made