Marketing Test 2

SWOT

Strengths- internal capabilities that help us reach objectives

Weaknesses- internal limitations that inererfere w/company ability to reach objectives

opportunities- external factors that you can use to your own advantage

Threats- current and emerging external factors that may challenge company performance

Difference between strengths/weaknesses and oppourtunities/threats

Strengths and Weaknesses- 4 P’s (product, price, place, promotion) and relate to the brand and internal

Opportunities and Threats- PEST, related to the product category or industry and external

Communication and coordination device

external and internal members of marketing activities have the same goal

Criterion for decision making

objectives help in the evaluation of creative

Evaluation tool

determine if advertising was successful or not

Vanity Metrics

registered users, downloads, and raw page views.

Things that are easily manipulated and do not correlate to numbers that really matter: active users, engagement

Key performance indicator (KPI)

Indicates progress to intended result

ex: Restaurant KPI is the return rate

ex: clothing- fitting room conversion- how many people try on clothes

Top of Funnel (TOFU)

Goal is to generate interest/awareness, initiate customer journey

ex: social media and influencer marketing

Middle of Funnel (MOFU)

Nurture and guide to be a qualified customer

ex: online classes, white papers and research reports

Bottom of Funnel (BOFU)

convert potential customers to actual customers

ex: coupons and discount codes

SMART Objectives

Specific- should state exactly what should be achieved

Measurable- capable of being measured

Achievable- should be realistic given the circumstances

Relevant- should be relevant for those responsible for them

Time-bound- time frame in mind

EX; The marketing objective is to increase the customer retention for ABC by 30% within the third quarter of this year

STP

Segmentation- Dividing a market into smaller segments with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes.

Targeting- The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter

Positioning- Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

Need for segmentation and targeting: Market Differences

-different needs and wants

-different characteristics

Need for segmentation and targeting: Limited resources

-marketing budget

-time/distribution/media

-human resource

Needs of segmentation and targeting: Marketing efficency

-intense competition

-minimum input, maximum output

Type of Marketing segmentation: geographical

divides the market in to different geographical units such as nations, regions, states, counties, or cities

A company needs to pay attention to geographical differences in needs and wants

Types of Marketing segmentation: Demographic Segmentation

Divide the market into groups based on variables such as age, gender, family size, income, occupation, etc

Types of marketing segmentation: psychographic segmentation

involves dividing your market into segments based upon different personality traits, values, attitudes, interests, and lifestyles of consumers

Types of marketing segmentation: Behavioral segmentation

divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product

Targeting

The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter

6 types of targeting

1) size of opportunity

2) segment size

3) level of competition

4) segment growth

5) match with corporate objectives

6) corporate resources

Target market vs Target audience

Target market- market segment that a company chooses to focus its marketing resource

Target audience- selected group within the target market that is primary focus of a specific marketing campaign

Buyer persona

A detailed and semi-functional representation of an ideal customer

Importance of positioning

needs for differentiation

-how do different brands of water stick out

Triad of Brand Distinction

Brand is the only, the first, or the best

My brand is (only, first, best) in (place), for a (group), or with a (feature)

Systematic weighted sum method (6+4)

1) identify consideration set- know who you are competing with (Hilton v Mariott)

2) Draw Salient attitudes- price, location, service, customer reviews

3) measure importance of each attribute

4) evaluate each brand with each attribute- are you satisfied with the price of hilton

5) analyze data

6) strategic applications

• improve evaluations for our weaknesses

• attack a weak point of the competitor

• modify the consumers perceptions of the importance of a salient attitude

• suggest a new salient attribute

Source based positioning (9)

• philosophy- “we love to see you smile” -McDonalds

• Product attribute- “chocolate that melts in your mouth, not your hand” -m&m

• Benefit- “For life, -Volvo”

• Value- “15 minutes can save you 15% or more….”

• Brand personality- “Just do it”

• User image/life-style- “Silly rabbit, trix are for kids”

• Time, place, Occassion- redbull gives you wings

• competition- “the most trusted name in news” -CNN

• product class- “Brush like a dentist” -Oral B

Product

Includes services, events, locations, persons, places, organizations, ideas

consumer vs industrial products

consumer- bought by final customer for personal consumption- Lipton, Dove, Mayo- different uses for each person

industrial- bought for further processing or conducting a business- machines/parts

Brand

name, term, sign, symbol, design that identifies the product/service of one seller/group of sellers that differentiates them from competitors

Brand equity

differential effect that knowing the brand name has on customer response to the product or its marketing

• loyalty

• awareness

• quality perception

• image association

Brand heiarchy (3)

Corporate brand- Nintendo

Individual brand- nintendo switch

modifier (pet name)- nintendo switch lite

brand extension

when a company uses one of its established brand names on a new product or new product category

• instead od saying “Coca-Cola water” its “Dasani”

Advantages of using existing brand name (8- know roughly)

Facilitate new product acceptance

Reduce risk perceived by customers

Reduce costs of introductory and follow-up marketing programs

Avoid cost of developing a new brand

Allow for packaging and labeling efficiencies

(If successful) Enhance the parent brand image

Bring new customers into brand franchise and increase market coverage

Revitalize the brand

Disadvantages of using existing brand names

Can confuse or frustrate consumers
Can encounter retailer resistance
Can fail and hurt parent brand image
Can succeed but cannibalize sales of parent brand
Can succeed but diminish identification with any one category
Can succeed but hurt the image of parent brand

Can dilute brand meaning
Can forgo the chance to develop a new brand

Customer experience (CX)

is a totality of cognitive, affective, sensory, and behavioral consumer responses during all stages of the consumption process including pre-purchase, consumption, and post-purchase stages

customer success

a business method ensuring customers achieve success: their desired outcomes while using your product or service.

customer support

reactive, short-term focus, resolves product issues, not a revenue center

Service marketing: Intangibility

Cannot be seen, heard, tasted, or smelled before purchase

Service marketing: Inseparability

services cannot be separated from their providers

ex: going to the hair salon for a haircut

service marketing: perishability

service cannot be stored for later sale or use

Service marketing: variability

quality of service depends on who provides them and when, where, how

Internet of Things (IOT)

interconnection via the internet of computing devices embedded in everyday objects, enabling them to send and receive data

Rigid Planning

Traditional approach

Steps: 1) idea generation, 2) idea screening, 3) concept development and testing 4) test market, 5) commercialization

Agile Adaptation

Lean approach

When test market vs when firms may not test market in product development

When firms test market- new product, large investment, uncertainty or marketing program

When firms may not test market- simple line extension, copy of competitor product, low costs, management confidence

Product Life cycle (PLC)

5 stages/know graph

The process a product goes through from when it is first introduced into the market until it declines or is removed from the market

Characteristics, Marketing Objects, and strategies depending on each PLC

MVP

Minimum Value Product- product with just enough factors to gather validated learning about the product and its continued development

Ex: A startup wants to create a language learning app. Instead of building a full-fledged app with multiple languages, interactive games, speech recognition, and progress tracking, their MVP could be a basic web platform that offers simple vocabulary flashcards for just one language, like Spanish

Pivoting

Strategic shift in business model, target, audience, or marketing channels

• if sales do better in Japan than the US, then shift to Japan

Tool-to-Network Shift

Business evolves from useful tool to a valuable network

instagram- originally for photo filters, and now social media

A/B Testing

method used to compare two versions of a webpage, email, ad, or marketing asset to determine which one performs better

Experience design

create a frictionless experience for the customer anytime they interact w/ use a brand

• change in a ketchup bottle