MKTG 371 Sharma Exam 1

marketing

creating and serving needs, profitably

core components of marketing strategy

three C’s, STP, four P’s

three c’s

customer, company, competition (market analysis)

STP

segmentation, targeting, positioning (intended strategy)

four P’s

product, price, promotion, place (action plan)

SWOT

strengths, weaknesses, opportunities, threats

internal to company

strengths and weaknesses

• distribution networks, tech, labor, partnerships, brand, supply chain, marketing team

external to company

opportunities and threats

• competition, customer, context

segmentation

divide a heterogeneous market into more homogenous describable segments

targeting

evaluate the attractiveness of segments and select a target segment

positioning

select and communicate the core value and distinctiveness of your offering

criteria for choosing a good target segment

measurable, substantial, accessible, differentiable, actionable

how to identify most attractive customers in market for firm

segment market into meaningfully different groups and select targets of focus

knowledge of ____ is the core competence of marketing - a necessity for any company to fulfill its revenue and profit potential

customers and relationships with them

purpose of business

to create and keep a customer

what is the key to achieving organizational goals?

determining the needs and wants of target markets and deliver the desired satisfaction more effectively and efficiently than competitors

• customer orientation —> firm value

3 ways customers derive value

economic value, functional value, psychological value

economic value

bang for the buck

functional value

good performance value

psychological value

emotional, social, personal value

WISE framework

watch, internal, social, external

watch

awareness, interest, evaluation, choice, consumption, post consumption

internal influences

motives, perceptions, attitudes, emotions, biases

external influences

marketing mix, physical environment, influences, context effects, trends

social influences

social comparison, social norms, likability, authority, word of mouth, core social motives (belonging, control, enhancement, trust)

consumer behavior

totality of consumers decisions with respect to acquisition, consumption, and disposition of goods, services, time, and ideas by humans

consumer insights

understanding the journey consumers have with their expenditures (time, money, effort)

black box model

stimuli —> black box —> response

• stimuli: marketing, environment

  • response: choice, purchase timing, amount

stages of the buying process

need awareness, interest, evaluation of alternatives, choice/purchase, consumption, post-consumption

analytical tools

primary and/or secondary data analysis

six step market research process

define problems and research objectives, develop research plan, design research instruments, collect information, analyze and assess information, formulate decision

secondary data

pros: lower cost, available immediately, no expertise to collect

con: hidden assumptions/agenda, may answer slightly different question, no competitive advantage

primary data

specifically collected to answer your research questions

• three types:

  • exploratory

  • descriptive

  • experiments

exploratory

explore broad, early stage objectives and questions

descriptive

investigate more precise, better defined objectives

experiments

establish cause and effect relationships

exploratory research

• involves: small samples, less structured data collection procedures

• generates: initial insights or understanding

• best for preliminary research because: samples too small to generalize, participants not randomly selected, responses from group members not independent.

• should not be used to recommend final course of action

ex) focus groups, projective techniques, and observational research

laddering

brand and category attributes —> lower order benefits —> higher order benefits

descriptive research

• involves: observational research, surveys, larger samples

• generates: answers that can be used to formally evaluate research hypotheses

  • best for: more specific research questions, questions that require quantifiable answers

ex) observational, surveys

observational research

• can be exploratory or descriptive

• generates: information about how consumers actually behave

  • cons: not good for feelings, attitudes, motives or private behavior

surveys

• provides quantitative, descriptive data

• samples are representative of target market

  • sample size varies based on desired degree of accuracy

problems with wording questions

leading, ambiguous, unanswerable, two questions in one, non-exhaustive, nonmutually exclusive answers

experiments

• involve: larger samples than exploratory (if done well) with tight controls

• generate: insights into the impact of specific marketing activities

• best for establishing causality

• may provide “process” evidence

• conditions necessary to build causality

  • temporal antecedence, covariation, absence of rival explanations

temporal antecedence

cause must precede the effect (A before B)

covariation

change in cause must produce change in effect (A—> B)

absence of rival explanations

no plausible explanation for B except A

4 judgement and decision making frameworks

• cognitive vs. emotional

• high involvement vs. low involvement

• optimizing vs satisficing

• compensatory vs non compensatory