MKTG 3310 Wolter Final Exam Auburn

eras of different orientations in the history of American business

simple trade

production

sales

marketing

are all companies now in the marketing era?

no; not all companies participate in mass marketing

two characteristics that define a market

desire

ability

what is marketing?

co-creating value

acquiring cash flow from customers

what is marketing not?

just selling and advertising

marketing concept

satisfying wants and desires of society while also meeting company goals

market orientation

implementing the marketing concept in a company

3 characteristics a firm needs in order to be market oriented

generate information about the market

disseminate that information back out into the firm

incentivize employees to use the information

what is value?

what you get/what you give

customer value - difference seen by the customer from an offering vs. the cost of actually getting the item

what is the unique contribution of marketing to a firm?

managing or acquiring resources from customers

ex: publix returning shopping carts

shareholder orientation

taking care of people who invest in your company

dominant business view in America

What are potential problems with a focus on shareholders?

average stockholding period = 8.3 months

makes it harder to focus on long-term investors bc people are just focusing on quarterly income

What is the macro-micro dilemma?

decisions at the micro view causes problems in the macro view

What is the Milton Friedman view of business role in the world?

business should make a profit without being bad

positive effects on society

What is an argument for why Milton Friedman was correct?

innovation

we should find ways to make things cheaper and overall competitive

3 arguments for business to engage in other causes besides seeking a profit

consumers want it

firms have alliance share of resources to take on those sources

self-interested reasons for firms to do so and can benefit the firm

stakeholder

someone who owns a percentage of the company

stakeholder orientation

a firm's obligation to improve its positive effect on society or reduce its negative effect

"do companies look beyond the consumer?"

value creation

influences potential magnitude of what the company gets back in profit

when a company tries to co-create value

value appropriation

influences the amount of advantage a single company has over others and how long they can keep it

Who are the main appropriators?

firm

society

competitors

marketing strategy

specifies a target market and a marketing mix

target market

fairly homogenous group of customers to whom a company wants to appeal

rifle approach

marketing mix

controllable variables the company puts together to satisfy the target market

shotgun approach

customer lifetime value

total stream of purchases a customer may contribute over their lifetime in the market

What do CLV and customer equity allow a firm to do?

poses the question "is it worth investing in them?" (them = specific target market)

market share

% of the market you share/own

What is the benefit of market share?

bigger market share, more money, better efficiency, more power

marketing myopia

if you define yourself based on your product, your company won't be able to expand

What happens if a firm goes too far and defines itself too broadly?

lose money

segmentation

separating prospective customers into groups based on needs/response to marketing actions

2 things that are stressed in segmentation

meaningful groups

customized marketing mix

what is the long tail?

niche products

a lot of products that sell in small quantities (tail) as compares to a small number of best selling products (head)

What is the long tail enabled by?

breaking free of the constraints of physical space

finding ways to talk to market segments economically

new distribution systems

where does the majority of potential revenue fall, in the head or the tail?

in the tail

generic approaches for segmenting product-markets

single target market

multiple target markets combined

What are the criteria in creating segments?

homogenous within the segment

heterogeneous between the segments

substantial

operational

What do you do if a segment is not profitable?

combine it with another segment

hardest variable to collect

psychographic

easiest variable to collect

geographic

most useful variables

geographic and behavioral

the goal of most marketing research

uncover unique and actionable customer and market insight

3 types of marketing research

exploratory

descriptive

casual

correlation

things tend to happen at the same time

causation

one thing causes another

What data information do companies use first?

secondary

Which data information is typically cheaper?

secondary

Which data information is timelier?

secondary

Which data information provides more accurate data?

primary

Which data information is more time consuming?

primary

contact methods for primary data collection

mail

phone

personal

online

research approaches for primary data collection

observational

survey

panels and experiments

IT and data mining

What is the purchase decision process?

need recognition

information search

alternative evaluation

purchase decision

post-purchase

Maslow's hierarchy

self-actualization

personal needs

social needs

safety needs

physiological needs

What is an attitude?

a person's relatively consistent evaluations, feelings, and tendencies toward an object or idea

How stable is an attitude?

stable until something happens (major life event or pivotal point)

Customer Value Hierarchy

Core Benefit

Basic Product

Expected Product

Augmented Product

Potential Product

What happens over time to augmented features?

differentiation arises and competition increases

What happens over time as products gain more expected and augmented features?

as come companies raise their prices for augmented product, others offer a stripped-down version for less - catering to clients who just want the basic product

durable good

tangible

survives many uses

requires more personal selling and guarantees

non-durable good

tangible

consumed within a few uses

purchased frequently

available in many locations

charge small markup

heavy advertising

service good

intangible

require quality control, supplier credibility, and adaptability

convenience good

purchased frequently & with minimal effort

impulse buys

shopping good

consumer compares suitability, quality, price and style

similar in quality but different in price

specialty good

unique characteristics or brand identification for which buyers are willing to make a special purchasing effort

buyers reach out first

unsought good

those that customers dont think about buying

product

anything that can be offered to a market to satisfy a want or need

product line

group of related products

sold to the same customer groups, marketed through same outlets, and fall into same price range

product mix

set of all products and items a particular seller offers for sale

product mix length

total number of items in the mix

product mix width

how many different product lines a seller produces

product mix depth

how many variants are offered in each product line

In what ways can a product line be stretched?

down-market

up-market

two-way

What is a brand?

a name, term, symbol, design or combination of these items that are intended to identify and differentiate a seller or seller's product info from competitors

consumer-based brand equity

power of a brand

differential effect of brand knowledge on consumer responses to marketing

Brand Resonance Pyramid

Brand Salience

Brand Performance

Brand Imagery

Brand Judgements

Brand Feelings

Brand Resonance

What does Chevrolet, Levis, and and Coca-Cola tell us about creating a powerful brand?

changing a brand isnt bad, but it must be consistent and not all over the place

What does the Pepsi Taste Challenge tell us about the power of branding?

branding can re-wire peoples brains in response to the product

corporate branding

umbrella branding

put your brand on everything

separate branding

developing separate brand meaning and identities for each one

reducing the risk of corporate brands

very expensive

sub-branding

cross between corporate and separate branding

associations from corporate will spill over onto the others while separating the brands

positive outcomes of brand extensions

improve the odds of a new products success

empowers and strengthens brand

negative outcomes of brand extensions

brand dilution

What determines if a brand extension works?

fit (product and brand have to make sense)

strength of brand (stronger brand, more likely to be extended)

amount of successful extensions (the more success you have, people get used to the brand being extended and give it the benefit of the doubt)

parts of the communication process

sender

encoding

message

media

decoding

receiver

response

feedback

noise

How does the communication process translate into marketing promotions?

For the message to be effective, the senders encoding process must mesh with the receiver's decoding process.

The more the sender's field of experience overlaps with that of the receiver, the more effective the message is likely to be.

What must marketers understand to communicate with customers?

identify a target audience

determine the communication objectives

design a message

choose the media outlet to send the message

select the message source

collect feedback

5 main categories of promotion

advertising

salespromotion

personal selling

public relations

direct and digital marketing

What is IMC?

Integrated Marketing Communications

carefully integrating and coordinating the company's many communication channels to deliver a clear, consistent, and compelling message, about the organization and its products

2 things that ICM helps a firm to obtain

clarity

synergy

What does advertising spending fluctuate with?

overall economic growth

What does advertising spending fluctuation tell us about a firm's actions on spending?

as the economy moves, it changes how companies advertise

if the economy dips, companies withdraw ads

What are the different types of advertising appeals?

rational

moral

emotional

sex

What happens if fear, humor, and sex appeals do not have a link with why someone buys a product?

it won't encourage purchase within a short time frame afterward

Can appeals such as fear, humor, or sex go too far?

no, just avoid corniness

reach

number of different people exposed to an ad

frequency

average number of times a person is exposed to an ad

What is CPM?

cost per 1000 impressions

How do you calculate CPM?

cost of ad/audience size x 1000

Is the Super Bowl considered a good buy?

yes, for large companies who can afford it