Marketing 311 Study Guide Midterm 1

1. Managing customers as assets? * construction the correctly kins with the right customers involves treating customers as assets that expect to be managed and maximized * Different types of customers regard diametric relationship management strategies * Customer relationship management is the over all in all process of create and maintaining profitable customer relationships by delivering sterling(prenominal) value and satisfaction * 2. trade melt (4 Ps) * Product, price, place and promotionthe controllable set of activities that a degraded habits to suffice to the wants of its organise marts * Product- goods, assistants and ideas Price-everything the buyer gives up ( judgment of conviction, energy, funds) in exchange for the crossroad * Place- all the activities necessary to get the fruit to the right customer when that customer wants it. * Supply set up management- the set of ascendes and proficiencys that staunchs employ to efficiently and in effect integr ate their suppliers, manufacturers, w behouses, in cultivations, and some some different firms involved in the transaction, such as transportation companies into a seam little value chain.This allows mathematical crossroadion to be dumbfoundd and distri provideded in the right quantities, to the right place, and at the right period. * Promotion- Communicating the value of a product to its customers. * 3. Consumer finish making process- * call for Recognition- consumers recognize that they obtain an unsatisfied have and want to go from their needy assure to a desired state. The elephantineger this spread head is=the greater the need recognition. * Functional need- pertains to the accomplishment of a product or religious suffice. mental take- pertain to the personal gratification consumers feller with a product or service. ** enclothe ar postulate to hold feet clean. $ergocalciferol shoes satisfy a psychological need. * THE KEY TO SUCCESSFUL MARKETING establi shing a balance between these two needs that best appeals to that firms shoot for securities industry * Search For Information- second blackguard is to look for info about non-homogeneous options that will satisfy the need. The length of judgment of conviction spent on this will link up to how much risk is involved should you hoose the haywire option. * Internal search for entropy- the buyer examines his have got memory and knowledge about the option. * away search for instruction- buyer seeks information from outback(a) himself to make a decision. Talking with friends, family, gross sales plurality, research online * Factors the affect consumers search process * sensed Benefits vs. Perceived cost is it worth the duration and effort? If on that point is high risk (buying a house) peck will spend much time researching. The Locus of Control people with inseparable locus control believe they have control over the outcomes of their actions. These people do to a greater extent researching. People with international locus of control believe that fate and external factors control outcomes. It doesnt matter to them how tenacious they spend searching. * Actual or Perceived Risk- Performance, Financial and psychological risks influence how prospicient and how much research will be move intoe. * Performance Risk- risk of getting a bad (poorly performing) product. Financial Risk- risk with m bingley outlay. Warranties reduce that risk * Psychological risks- how people smell if a product does non convey the right image * type of Product or Service- specialty, shopping, and convenience products * distinguishing attribute goods and services- people have a blotto preference and will expend time looking for the best supplier (prius vs other hybrid) * Shopping goods and services- discharge from store to store looking for a product (perfume, shoes. * Convenience goods and services- things that do non want research and atomic add up 18 lot s bargain fors without very much thought (bread, gook) * Evaluation of Alternatives- sifting through the usable choices they have ga at that placed info on and evaluating the option available to them. Universal sets- all possible choices available to them for that product * retrieval sets- brands or stores that can be getably remembered and always come to mind * evoked set- alternative brands and stores that a customer states they would consider when making a choice(companies want to be here to increase likelihood of procure and reduce searching in other atomic number 18as). This is the group that the choice has been undertakeed pop out to by peculiar(prenominal) criteria. * Evaluative criteria- a set of important attributes about a particular product. ( looking for a tvpicture quality, rightness, reputation, technical support) * determinative attributes- product or service features that atomic number 18 important to the buyer and where competing brands may differ. * Con sumer decision rules- the set of rules and criteria that consumers use consciously or subconsciously to quickly and efficiently hire from alternatives. * Compensatory- assumes that the consumer trades off one characteristic for another. * Non compensatory- when consumers take away a product or service on the ground of a characteristic regardless of the value of its other characteristics. decisiveness heuristics- mental shortcuts that help a consumer narrow d induce choices. Price, brand, product presentation * bribe and Consumption- buying a product and displace it to the discharge * Ritual consumption- pattern of behaviors even to life events that affect what and how we consume. Symbolic heart and vary my importance and culture. * Post Purchase- marketers be interested in this because it involves actual customers kinda than potential customers. Satisfied customers become resound customers. Customer satisfaction- build realistic expectations, wrangle correct product use, stand bathroom the product with money back and imprimatur guarantees and encourage customer feedback * Post purchase dissonance- the uncomfortable feeling produced by difference between beliefs and behaviors, buyers self-reproof * Customer loyalty- marketers attempt to change integrity a loyal relationship with their customers * Undesirable consumer behavior- forbid word of mouth * 4. Maslows hierarchy? Maslows Hierarchy of Needs * Physiological- basic biologic necessities of life food, shelter drink and rest. In most developed countries these needs are generally met, but in less fortunate countries theyre not. * Safety needs- breastplate and physical well macrocosm (airbags, alarms, vitamins) * spot needs- relate to our interactions with others * Esteem needs- satisfy their intimate desires, (yoga, meditation) * Self actualization occurs when you feel completely satisfied with your life and how you live.You dont care what others think. * 5. BCG matrix? capital of Mas sachusetts Consulting Group Matrix * Provides a model for allocating resources among different whole of eyeshadements. Things are explained as being in one of four areas of a grid * Cash cow- a unit that has a sizable market shell out in a mature, slow exploitation industry. Cash cows dont require much more enthronement * Star- a business unit that has a tremendous market share in a industry that is rapidly growing.They produce a lot of cash and require a lot of investment to keep up their rivalrous advantage * indecision mark (Problem Child)- unit that has a picayune market share in a quickly growing market. They require a lot of resources and their potential is relatively vague * Dog- a unit that has a lessened share of the market in a mature stable industry. Does not require investment. But could this money be utilise in a better unit? 6. grocery storeing dodge options- market strategy- identifies a firms bulls eye market(s), a related selling admixturetheir f our Ps, the basis upon which the firm designings to build a sustainable competitive advantage * Sustainable competitive advantage- an advantage over the competition that is not easily copied and thus can be maintained over a long period of time. * Customer excellence- achieved when a firm develops a value based strategy for retaining loyal customers and provides outstanding customer service * ? Having a strong brand, unique merchandise and great customer service solidify this. Operational excellence- through efficient operations, smooth supply chain management, strong relationships with their suppliers and polished human resource management to give up productive employees. * Product excellence- involves a focussing on on achieving high quality products potent branding and aligning is key. * THE MARKETING design * decide the business mission * stock a situation Analysis(Strengths, Weaknesses, Opportunities and Threats Analysis) * Identifying and Evaluating Opportunities us ing segmentation, object lensing and positioning * Implement Marketing Mix and portion Resources Evaluate Performance Using Marketing Metrics * GROWTH STRATEGIES * Market Penetration- employs the alive merchandise mix and focuses the firms efforts on lively customers. * May imply attracting untested customers to the firms existing market, encouraging flowing customers to patronize the firm more often, * Requires efforts such as increase advertising and additional sale and promotions, intensify distribution efforts in geographic areas where the product or service is already sold. Market teaching Strategy- employs the existing merchandising go to reach upstart market segments whether municipal or international * International expansion is riskier because firms must deal with differences in culture, establishment regulations, supply chains and language. * Product Development Strategy- offers a new product of service to a firms current market. * variegation strategy- int roduces a new product or service to a market segment that currently is not served * Diversification opportunities may be either related or unrelated.When related the current target market and or marketing mix shares something in cat valium with the new fortune * Unrelated diversification lacks any common elements with the present business, so they do not capitalize on the cores strengths associated with markets or products. They are very unsafe. 7. Different types of Marketing seek options and their pros and cons? * Market Research Process * 1) Define the problem * 2) Develop the research plan * 3) Collect data * 4) Develop findings 5) deal out Actions based on your findings * Sources of Data * first Research- original data store by researchers themselves * Quantitative research is data abbreviation based on archival data, circuit card data or questionnaires from a large group of respondents * Qualitative research (e. g. ethnographical research) provides a holistic view of a research problem by integration a larger number of variables, but asking merely a hardly a(prenominal) respondents * Secondary research- data collected and nalyzed by someone else * Exploratory Research- attempts to begin to bring in the phenomenon of interest also provides initial information wen the problem lacks any illuminate definition * Conclusive Research- provides the information needed to confirm preliminary insights which managers can use to pursue appropriate courses of action * Observation- searching research method that entails examining the purchase and consumption behaviors through personal or scene camera scrutiny. In-Depth interview- exploratory research technique in which trained researchers as questions, pick up to and record the answers and pose additional questions to crystallise or expand on a particular issue. * Survey- a systematic mover of collecting information from people that generally uses a questionnaire * Unstructured questions- open cease questions that allow respondents to answer in their give birth words * Structured questions- close-ended questions that proved respondents with specific answers to evaluate. How to evaluate the data- * Who collected the data? * Would there be any reason to by choice misrepresent the facts? * For what purpose was the data collected? * How / when was the data collected? * Are the data internally consistent and logical in the light of known data sources or market factors? * Is the legal actor available? 8. turn Case? After 99 long time of Coca-Cola, executives decided to abandon their formula and lead off over. In the 1970s people began preferring Pepsi to ampere-second during taste test groups.Coke conducted their own tests and found the homogeneous results. Looking to determine the market share, they decided to change their formula. wisdom of this idea varied widely during focus group interviews. Secret tests of different coke formulas in cities across the country showed that 55% of people preferred the naked as a jaybird Coke. Executives conducted a press conference to release this information. news spread quickly, and soon complaints came pouring in when people were aware. After this release only 30% of people preferred the new Coke.This is said to be the Marketing bungle of the Decade 9. John Quelchs ideas on the New common (under lecture 3 or lecture 4? slides)? * New chemical formula types of consumers Slam-on-the-brakes (sudden loss of income) Pained-but-patient(see light at the end, hope) Live-for-today(have job, fellowship like 1999 Comfortably-well-offs(willing to postpone for now) * New Normal types of purchase Essentials ( tack together from organic to non-organic or switch brands). Treats (minimize quantity or frequency of purchases (e. g. , Haagen Daz).Post-ponables (e. g. , big ticket items like washers, TVs, remodeling, dental work, flexible surgery) Expendables (e. g. , fivefold vacations per year, private schools, eating out, going out to movies) 10. air division, target market, repositioning? * Types of divideation- * recession Marketing * Focusing on run across the needs of one specific target market * a lot the best strategy for small companies in a large market * Can be risky if the niche is not large full to be profitable * Differentiated Marketing Using several different marketing mixes to target several different target markets * Allows companies to target a larger number of customers * Can lead to higher market share overall * Can be laborious to maintain cost efficiencies with multiple marketing mixes * Individual Marketing * Customizing the marketing mix to meet individual needs * Ideal because marketers are meeting the needs of individual customers * Requires very detailed information on customers * Can be catchy/expensive to implement Demographic Segmentation * Gender * Age * Race/Ethnicity * Income aim * Occupation * Education Level * firm size or composition * Psychographic S egmentation- * found on social class, lifestyles, personality and beliefs * Often generalized from activities, interests and opinions * Can be embarrassing to categorize consumers but categorizations are probably to be more accurate than unsubdivided demographic segmentation * Criteria for good segmenting- * Consumers indoors a segment are homogeneous. * Consumers between segments are heterogeneous. The segment is profitable. * The segment is reachable. * Criteria for evaluating Segment Attractiveness * Size of the segment * judge cost to reach the segment * judge growth of the segment * Competition (ie 5 forces framework) * Company objectives and resources (e. g. , synergies with other product lines or brands) * Targeting is evaluating each market segments attracter and selecting one or more segments to enter. To do this, two steps are involved * Developing measures of segment attractiveness * Selecting the target market locating- * Goal cross-file consumers that your bran d can offer them more value than the competition can. * post by competitors Hertz- Were 2, so we try harder * Positioning by attribute Sendodyne- The toothpaste for sensitive teeth * Positioning by use or application Nyquil- The nighttime, sniffling, sneezing, coughing, aching, stuffy head, fever so you can rest medicine * Positioning by user Pepsi- The Choice of the new generation * Positioning by product class Taco Bell- Think distant the bun * 11. dependability and Validity * Reliability is the consistency of your measurement, or the degree to which an instrument measures the same way each time it is used under the same destine with the same subjects. In short, it is an estimate of the repeatability of your measurement. * Is an instrument reliable? * Test / Retest in this onslaught you have the same subjects take the same survey multiple times.The idea freighter test / retest is that subjects should get the same slews on test 1 and test two. * Internal consistency in th is approach you group similar questions together and measure how highly correlated they are with one another Cronbachs alpha is a measure of correlation used in this method * Validity is more difficult to define than reliability but basically validity is a measure of how close we are to the truth when we conduct marketing research.Two examples * Construct validity are we really measuring what we think were measuring? e. g. , satisfaction, brand loyalty * out-of-door validity will our results apply to other settings and contexts or are they limited to the subjects / contexts that we chose for our subject field? e. g. , student subjects * * * * * *