marketing 300 midterm

What is marketing

social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and values with other

Exchange

the core of marketing: act of obtaining a desired object from someone by offering something in return

What is marketed

goods, services, events, experinces, people, places, properties, organizations, information, ideas

customer centricity

understanding consumers needs even better than consumers themselves do and make decisions around that

customer journey

all experiences of a customer

peak end rule

we judge our experience almost entirely on they were on the peak and how they ended

3 basic steps of customer journey

1. pre purchase

2. purchase

3. after purchase

marketing environment

influences outside of marketing that impact marketing abilities to build and maintain successful relationships with clients

3 levels of marketing environment

1. micro

2. meso

3. macro

micro environment

internal forces that influence success of marketing

Meso environment

external forces closely related to organizations that influence ability to serve customers

Macro environment

external influences such as "trends"

Consumer Behavior

obtaining, consuming, disposing

consumer vs customer

customer buys, consumer uses

consumer buying roles

initiator, influencer, decider, buyer, payer, user, gatekeeper

Consumer Characteristics

cultural, social, personal

social factors

reference groups, associative groups, dissociation groups, opinion leaders

personal factors

family life cycle, personality

Masked Man Fallacy

tricks people into thinking 2 things are different because they only recognize 1

confirmation bias

ignore information they don't believe in or contradict their previous knowledge

Decoy Effect

decoy placed to make more value for the target profit

Validity of sales

historical representation and data sets example for future

loss aversion

the tendency to care more about avoiding losses than about achieving equal-size gains

Sterotyping

generalizing a set of characteristics to all members of a group

optimism bias

people tend to think things will go their way even if statically things wont go their way

bias blind spot

you believe you are less bias then other people because we can understand how we make our own decisions

sunk cost fallacy

continuing to invest in something simply because they've already invested in it

Anchoring

use an initial reference point to make judgements or estimates

placebo effect

experimental results caused by expectations alone

less is better

people will choose the less value option when looking at it by itself but when comparing products will choose better one

ostrich effect

ignore bad news or problems in hope they will not affect you

projection bias

you think how you feels now is how you feel later and make decisions based off that

nudging

any aspect of the choice architecture that alters people's behavior in a predictable way without forbidding any options or significantly changing their economic incentives

Consumer decison process

1. problem recognition

2. information search

3. evaluation of alternative

4. purchase decision

5. post purchase behavior

Job to be done framework

consumers often buy things because they find themselves with a problem they would like to solve

Marketing Research Process

1. Defining the problem and research objectives

2. Developing the research plan

3. collecting the information

4. analyxing the information and makinf the decision

source: primary data

data freshly collected for a specific purpose or project

source: secondary data

data that were collected for another purpose and already exist somehwere. previous research project results

internal secondary data

informations sources that exist within the company

external secondary data

information that can be collected or bought

qualitative research

relying on small samples, using open and probing questions that set out to uncover underlying motives and feelings, focus on meaning

Quantitative research

relying on predetermined standarized questions from many respondents, focus on statistics

in depth interviews and focus groups

detect underlying feelings and motives of consumers

sampling methods

simple random samples, quota sample, convenience sample, snowball sample

STP Process

1. Segmentation

2. Targeting

3. Positioning

segmentation

split up total market into smaller segments

targeting

select which segment you want to target

Positioning

position my brand so it appeals the choosen segment

segment variables

behavioral, psychological, profile

profile segmentation

demographic and geographic

psychological segmentation

lifestyle, personality, motives

behavioral segmentation

product usage, media usage

DAMP targeting

Distinct, accessible, measurable, profitable

persona

a fictiuonal character created to represented a user type that might use a site, brand, or product

unique selling position

pick one single attribute and aim to be number 1

three levels of proposition

core, embodied, augmented

core proposition

the job to be done

Embodied Proposition

physical attributes that combine to deliver core value Ex; design, quality

Augmented proposition

embodied product plus all other factors that are necessary ex: customer service, warranty

offers based on durability

durable goods, servies, non durable goods

offered based on behavior

conveniences products, shopping products, specialty products, unsought products

product life cycle

1. development

2. introduction

3. growth

4. maturity

5. decline

introduction of product

goal: market establishment (persuade early adapted to try product)

growth of product

goal: market penetration (persuade mass market to prefer brand)

Maturity of product

goal: defense of brand position (maximize profit well holding market share)

decline of product

goal: preparation for removal (milk brand)

3 ways to develop new propositions

1. buy finished products

2. develop products through collaboration with supplier/competitors

3. develop new products internally

3 reason products fail

1. no market

2. there is a market need but product fails customer requirements

3. market need, meets customer requirements, not marketed to target market

development process of new products

1. idea generation

2. screening

3. business plans

4. product development

5. test marketing

6. commercialization

process of diffusion

the rate at which a market adopts an innovation

1st category in process of diffusion

innovation (2.5%)

2nd Category in process of diffusion

early adapters (13.5%)

3rd category in process of diffusion

early majority (34%)

4th category in process of diffusion

late majority (34%)

5th category in process of diffusion

laggards (16%)

distinctive characteristics of services

1. intangibility

2. variability

3. inseparability

4. perishability

intangibility

services cannot be seen, tasted, felt, heard, or smelled before purchase

Inseperability

services are consumed at the point which they are produced

Variability

services vary greatly depending on who provides them

Perishability

services are manufactured and consumed simultaneously, cannot be stored

easy to evaluate before purchase

clothing, jewelry

require consumption or use to evaluate

vacations, haircuts

difficult to evaluate even after use

medical diagnosis

7p's of marketing (last 3 only correspond to service )

product(service), price, place, promotion, people, process, physical evidence

Gap 1 in managing service quality

managers does not always correctly perceive what customers want

Gap 2 in managing service quality

managers can perceive what customers want but not at a uniform performance standard

Gap 3 in managing service quality

employess poorly trained, or do not meet standard

Gap 4 in managing service quality

consumer expectations are affected by advertisements or statements

Gap 5 in managing service quality

consumer can misperceive the service quality

What is a brand

name, symbol, word that identifies and distinguished a proposition or company from it competitors

manufacture brands

sold by manufactures under own brand name

distributor brand

private or store brands

generic brands

sold without any promotional materials or any means of identifying the company

non-comercial brand

idea(ideolgies), person (opra), place(NYC)

good brand names

easily recalled, spelled and spoken

brand portfolio

house of brands (P&G), Hybrid(Kellogs), Branded house(FedEx)

cobranding

when established brands from different companies join forces to market the same product

ingredient branding

a type of branding in which branded materials become "component parts" of other branded products

brand extension

new product in new category under established brand (ex: harley davidson perfume

brand line extension

Using an established product's brand name to launch a new, slightly different item in the same product category. (ex: coke different flavors)