marketing e2

  • Content Covered

    • Textbook & Lecture Chapters: 9, 10, 11, 13, 14

    • Lecture Chapter: 12 (Services Marketing is lecture only, not textbook)

    Specific Questions

    Key Cumulative Concepts (from Exam #1)

    1. What are the 5Cs of marketing?

      1. Company

      2. Customers

      3. Collaborators

      4. Competitors

      5. context

     

    1. What is a SWOT analysis and what types of information fit in each section?

    Situation analysis planning phase

    1. What is the difference between primary and secondary research?

    2. What are the different types of primary and secondary research?

    3. What is an insight and what makes a good insight?

    Chapter 9 (Market Segmentation, Targeting, and Positioning):

    • Market segmentation: group customers based on similar needs and similar marketing responses

    • Market targeting: assess attractiveness of each segment, choose a primary segment

    • Positioning: defining what you want to stand for in the mind of consumers and create action plan across the 4Ps (product, price, place, promotion)

    • STP: segmentation, targeting, positioning

    1. What makes a good segmentation?

      • Allows to understand customers better -> meet needs -> can charge more and drive a profit

      • Provides relevant products for customers. Better experience, better convenience

     

    •  ISASDA

      • Identifiable -> I can actually find this audience irl

      • Substantial -> big enough that it can be profitable

      • Accessible -> I can reach them

      • Stable -> will stay consistent

      • Differentiable -> its distinct

      • Actionable -> can act upon this segment

     

    1. What are the different types of segmentation?

      • Geographic

      • Demographic: age, gender, income, race, religion

      • Psychographic: interests, activities, opinions, values, pain points (organizational markets don’t use psychographic segmentation)

      • Behavioral: purchasing habits, customer loyalty, brand interactions

     

    1. What factors should you consider when choosing a target?

      • Market size: (is it substantial)

      • Expected growth: (is it stable or growing)

      • Competitive position: can you compete for this market?

      • Cost of reaching: can you afford this market

      • Company compatibility: is the company compatible with this segment?

     

    • More simply:

      1. Size of prize

        • Market size, market growth, cost of reaching

      2. Right to win

        • Do I have the competitiveness and compatibility to have a "right to win" in this market?

    1. What’s the difference between positioning and position?

      • Positioning: act of designing the company's offering and image to occupy a distinctive place in the mind of the target market

      • Advantages of positioning:

        • Simplicity: Helps customers to categorize brands and distinguish benefits

        • Alignment: guides the company on how to make decisions

        • Value creation: can charge more for brand name

      • Position: how customer's actually perceive the company. Co-created by company positioning  and the consumer's public reaction

      • Position adjustment: adjust positioning based on reaction

    2. What makes a good positioning statement?

      • Positioning statement: communicates unique value to a particular segment.

        • Answers "why should I buy?"

        • Developed for internal use-- not a slogan

        • Helps to guide marketing

        • Rarely changes

      • 4 main components of a positioning statement

        • For who, when, and where?

        • Relative to whom? (who is your competition)

        • What benefit?

        • Why and how? (reasons to believe)

      • Example: "For [target market], brand X is the only brand among all [competitive set] that [benefit/Unique Selling Proposition] because [reasons to believe]

      • Reasons to believe/feature: tells what the product is/does

      • Benefit/Unique Selling Proposition: how the feature improves qol.

      • RTB vs USP example:

        • RTB: 7.56" dynamic amoled infinity flex display

        • USP: "a movie theater in your pocket."

    3. What tools can aid in creating a differentiated positioning?

      • Perceptual Maps: a positioning tool that visualizes how consumers perceive a brand across key attributes

    4. What is a "Job To Be Done", how do you find it, and how does it drive marketing strategy? (Spotlight Lecture)

      • "Job to be done": a fundamental problem that your target customer needs resolved

      • What job is the consumer hiring me to do?

      • Springboards positioning

      • Helps to define competitive set. milkshakes

    5. The RealReal

      • Benefit: convenience bc realreal handles selling process. For customers, they authenticate secondhand luxury guaranteeing it is real-- removes risk of typiclal secondhand.

    6. Vocabulary

      • 80/20 rule: 80% of a firm's sales are obtained from 20 percent of its customers

      • Customer Lifetime Value: represents financial worth of a customer over course of relationship

      • Personas: character descriptions of a typical customer

      • Product differentiation: marketing strategy that involves using marketing mixx actions to help consumers differentiate benefits of product

      • Usage rate: frequency of patronage

     

    Chapter 10 (Developing New Products and Services):

    1. What are the six different types of new products and services?

      1. New to the world (VR, Uber)

      2. New category (Mcdonalds -> Mccafe')

      3. Product line extension (new coke flavors)

      4. Product improvement (iPhone 4 -> iPhone 5)

      5. Product repositioning (Old Spice. Rebrand same product)

      6. Cost reductions (change product to make cheaper)

     

    1. Why do new products fail?

      • 95% of  new products fail

    2. What factors can help you predict the success of new products?

      1. Relative advantage: degree to which consumers perceive the product's advantages compared to others

      2. Compatibility: fits into culture, lifestyle, and brand

      3. Complexity: the easier to use = more likely to catch on

      4. Trialability: how easy is it for people to try it?

      5. Observability: how easy is it to see the benefit of the product

    3. What are the classifications of products and services?

      1.  

    4. What are the steps within the stage gate process?

      1. Develop and scope: generate & refine new ideas

      2. Business Case: validate new product concept through market research. Build forecasts

      3. Develop: develop product design and commercialization process

      4. Test and validate: test in market and design marketing plan

      5. Launch: launch in market begin lifestyle management process

    5. What does it mean to “fail forward”?

      • Failure = learning = getting closer to success

    6. What are the three layers of a product and what are examples of each? (Spotlight Lecture)

      1. Core layer: the basic features

        • Solves the problem / provides the basic benefit

        • Jeans, flight, sandwich

        • First thing to attract a customer

        • Signals the quality

      2. Augmented layer: add-ons that add value

        • Customer service, packaging, promotion, warranties, financing support

        • Reduces risk of purchase and creates loyalty

      3. Symbolic layer: the meaning and significance of the product

        • How it makes you feel

        • Creates a relationship

    Chapter 11 (Managing Successful Products, Services, and Brands):

    1. What are the stages of the product life cycle?

    We are in step 3: designing marketing plan(4Ps)

     

    1. Introduction

      • Least profit

    2. Growth

      • Most profit

      • Prices starting to drop as you compete, but sales grow

    3. Maturity

      • Profit starts to flatten and decline

      • People are aware. It is not about getting people to try your product, it is about trying to maintain customer loyalty

    4. Decline

      • Profit drops off

      • Sales fall off as customers turn to new

    • Red line represents profit

     

    • Fashion has a cyclical product life cycle

    1. What are the marketing objectives in each stage of the product life cycle?

    2. What characteristics would qualify a product for each stage in the product life cycle?

    3. What is brand equity, how do you create it, and how do you value it?

      • Brand equity: the increased subjective, intangible value of a product perceived by customers based on the brand.

    4. What are the three types of brand architecture structures and what are their pros and cons?

      1. Masterbrand branch architecture: Google - Maps, Drive, Photos

        • Pros: very efficient. marketing masterbrand automatically markets all sub brands. Works best when all brands align well

      1. Endorsed brand architecture: Courtyard by Marriott, Residence Inn by Marriott, Fairfield by Marriott

        • Pros: has its own brand, but parent brand adds credibility

      2. Individual brand architecture: P&G owns Crest, Old Spice, Tide.

        • Pros: tons of room to grow-- cannot be limited by the parent brand

        • Cons: very inefficient and most expensive. Marketing P&G doesn't help any of its brands

    5. What is the difference between the field of brand management and the job of a brand manager?

      • Brand management: a function of marketing that uses techniques to increase the perceived value of a product line or brand over time

      • Brand manager: oversees every aspect of the brand. Focuses on driving incremental sales via brand building tools. Overseeing supply chain, R&D, sales, market research, finance, creative agencies to create brand equity

    Chapter 12 (Services Marketing): LECTURE ONLY

    1. What’s the role of services in the U.S. economy?

      • Services make up more than 45% of US GDP

      • Service sector rapidly growing

    2. What types of products and services are easier or more difficult to evaluate and why?

      • Easy to evaluate: physical products. Jeans, houses

      • Hard to evaluate: service products. Medical diagnosis, legal services

      • Some involve both physical and service aspects: restaurant

    3. What makes services marketing so challenging (4 I’s of Services)?

      1. Intangible

      2. Inconsistent

        • Relies on people to deliver the benefit

      3. Inseparable

        • U cannot separate it from the people

      4. Inventory

        • Cannot keep inventory

     

    • Services: you have low control of quality, less stable pricing, harder to advertise, rarely any intermediaries so it is difficult to scale

    1. What are the 7 Ps of marketing?

      1. Price

      2. Product

      3. Place

      4. Promotion

      5. PEOPLE

      6. PHYSICAL ENVIRONMENT

        • Includes website

      7. PROCESS

        1. Map out every touchpoint with consumers

        2. Process to keep high utilization

    Chapter 13 (Building the Price Foundation):

    1. What is price and what are its different names?

      1. Identify pricing objectives and constraints

      2. Estimate demand & revenue

      3. Determine cost, volume, and profit

      4. Select an approximate price level

      5. Set the price

      6. Make special adjustments

    2. What is the difference between price and value?

      1. Value = perceived benefits / price

    3. What is price elasticity of demand and how is it calculated?

      • Price sensitivity is high if:

        • Low differentiation between alternatives

        • Not a critical choice

        • Easy to compare prices, and is not used as a quality cue

        • Customer is selective and has options; b2b is more selective

     

     

     

    Elastic demand for luxuries

    Inelastic demand for necessities

     

    Marketing can make demand more inelastic

    Increased competition can makedemand more elastic

     

    1. What are the different pricing objectives and how do you calculate them?

      1. Profit

      2. Sales revenue

      3. Market share

      4. Unit volume

      5. Survival

      6. Social responsibility

    2. How do you calculate unit and dollar market share?

      • market share (Units) : ur # of units / total # of units

      •  Market share (sales $): ur sales rev / total sales rev

    3. How do you define cost and what are the components of total cost?

      •  

    4. What is a break-even analysis and how do you calculate a break-even point?

      • Bep  units=fixed costs / (price-variable cost)

    Chapter 14 (Arriving at the Final Price):

    1. What are the common approaches for selecting an approximate price?

      1. Competition-oriented approaches

      2. Cost-oriented approaches

        • Standard markup

      3. Profit-oriented approach

        • Target profit

      4. Demand-oriented approaches

        • Skimming, penetration, prestige, price lining, odd-even, target, bundle, yield management

     

    1. What are the specific strategies under each approach?

      • Demand

        • Skimming: price super high at first. Squeeze most out of those who are willing to pay.

          • Ex: apple, tesla

        • Penetration: introduce at a low price to get highest volume even if they lose money

          • Hook people then worry about pricing later

          • Netflix

        • Prestige: introduces and keeps high price to cue high quality

          • Rolex, LV, hermes

          • Decrease in price can actually decrease demand

     

    1. What is customized and dynamic pricing and what are the pros and cons?

      • Price customization:

      • Dynamic pricing: real time price customization

        • Uber, amazon,

      • Main factors

        • Tastes

        • Nature of use

        • Intensity of use

        • competition

     

    1. What are the different types of special adjustments to price?

      • Quantity discounts

      • Seasonal discounts

      • Cash discounts (b2b): discount for paying on time

      • Promotional allowances

     

     

     

     

    • Brand equity:  the added value of a product given by the brand name

    • Brand licensing: a contractual agreement. Licensor allows brand name / trademark to be used for another's product

    • Brand purpose: why a brand exists, its role in consumers' lives, the solution it provides to consumers, and the brands role in making society better off

    • Market modification: strategies to find new customers or increase current customer purchasing

    • Mixed branding: a branding strategy where a firm markets products under its own name and that of a reseller to access a new segment

    • Multibranding: gives each product a distinct name when each brand is intended for a different marketing segment

    • Multiproduct branding: uses one name for all its products

    • Private branding: selling product under the name of the retailer

    • Trial: initial purchase by a consumer