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MKT 385 Marketing for Entrepreneurs Test 1 Study Guide

by: Tori Block

MKT 385 Marketing for Entrepreneurs Test 1 Study Guide MKT 385

Marketplace > University of Miami > Marketing > MKT 385 > MKT 385 Marketing for Entrepreneurs Test 1 Study Guide
Tori Block
GPA 3.8

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MKT 385 - Marketing for Entrepreneurs
Amy Agramonte-Hernandez
Study Guide
Entrepreneurship, Marketing, target, audience, promotion, Market Segmentation, service, products, Advertising
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This 22 page Study Guide was uploaded by Tori Block on Thursday October 13, 2016. The Study Guide belongs to MKT 385 at University of Miami taught by Amy Agramonte-Hernandez in Summer 2015. Since its upload, it has received 14 views. For similar materials see MKT 385 - Marketing for Entrepreneurs in Marketing at University of Miami.


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Date Created: 10/13/16
Study Guide Test 1 10/14/16 12:07 AM Ted talks: Sir Ken Robinson, Changing Paradigms Divergent thinking- an essential capacity for creativity Main topics: Promotional marketing mix, finding opportunities research and understand your customer, segmenting and targeting, brands, social media, creativity 7 steps in the Marketing process = SEEK then KEEP 1. Identify needs 2. Develop stuff to meet those needs 3. Price the stuff 4. Tell people you have stuff 5. Deliver the stuff 6. Make sure they like it 7. Be awesome so they come back again Entrepreneurs marketing is different Have to introduce the products Have to get the first customer Must build the brand Must establish marketing channels of distribution- online Establish initial price points Persuade to try, not just remind to use Must be creative because money is scarce MARKETING MIX 5 Ps Product Price Promotion Place People Physical Evidence- what happens after; the tangibles that surround service Process- how does it get done, way its created and delivered Productivity- are we getting it done, balancing service output with service quality Market fulfillment vs. creation Not what people want, but what is the void? Market fulfillment- creating something in existing market Marketing creation- new market Social media changes the game • Social platforms, social content (blog, photos), social interactions How do these external factors affect you? Capitalize or hold you back. Five environmental forces: Socially? Want to protect our environment, characteristics of population, culture Economically? Spending trends Technological advancements? Like internet that effect business Competitively- always have competition Regulatory? - FAA, how to regulate it. Restrictions Pain+Cure= marketing success Case study example: PUB, 7 th street Pub, Heredia, Costa Rica Pain- costa Rica needs more good beer Cure- create a pub with craft beer • Product: Pub- food, beer, craft private brand beer • Price- slightly higher then bar next door, better offering • Promotion: Online connections through Facebook, Grand opening, flyers, t-shirts • Place- Swine and Yard bird, vintage mini coup in the bar • People- more upscale mature crowd looking for quality Finding opportunities- be good at scanning the environment, read, listen to others, network, be self- observant, challenge yourself Service/ Product • Costa Rica- had no specialty beers – created a craft beer Example: SUUMO • Problem: hermit crabs weren’t going to have shells and then they branded it, made It look really good Example: Case Study: Pink Weeds What is pink weeds- non-toxic, holistic • Product- what are the trends in the market? o Tennis market, medical marijuana • Price- what’s demographic? – Educated, health conscious, $60k o The can buy it more and afford it • Promotion- given demographic where should it be? o Fitness mag, women blog, social medium campaign • Place- health food, whole foods, GNC, tennis center How is the opportunity? GREAT • Creates value for customers by solving a problem or filling an unmet need for what the customer is willing to pay • Significant profit potential • Good fit with entrepreneur and management team • It can get financing Trends • Social change- health and wellness • Economic change- economic recovery, more purchasing • Technological change- can extract CBD oil • Competitive change- newly open market • Regulatory change: is it legal? What to do? Move states, or change business WHAT IS BRANDING • Name, phrase, design, symbols or combination of these to identify product or service and to differentiate them from competition • Logos, campaigns, what your company says out loud, how you package, endorsements • Products look, advertising Patent- exclusive right grated for an invention Trademark- a distinctive sign that identifies a product of service. Provide protection, sometimes interchangeable with brand but brand can also be activities Red ocean vs. blue ocean: • Red- existing competition • Blue- new market space Voice of the consumer: feedback- social media Is there an opportunity? • How will the enterprise make money • How will the enterprise create value • For whom will the enterprise create value • What is the enterprise’s internal source of sustainable competitive advantage (the first, secret formula, innovative, all products connected How will the enterprise position itself in the marketplace? • High end in style, simplistic, sleek, easy, cool-apple • Starbucks- high end, convenience, tasty MARKET RESEARCH – uncovers marketing opportunities • The process of defining a marketing problem or opportunity, collecting and interpreting information and acting on the information to improve the chances of enterprise success. Two types: 2. Secondary data- existing data already collected Always comes first, cheaper Google, Government websites, Census, Pay statistical sites as well 1. Primary data- new data gathered by you • In depth interviews- personal interviews that lets you know what the customers are thinking o Voice of the consumer • Use: o When easier to reach target customers, special insight, o When Better cost-benefit compared to other methods o When preferable to collect responses without group influence o When probing is part of the info collection process o When a product, service or process is being tested for usability • Focus group- informal interview sessions conducted in a small group (less 10) – vulnerable to people around you • Use for: o Census/ debate is required o Point-counterpoint among target customers can create opportunity or solve problems o Broad, exploratory topics are covered and allow for new ideas Interaction can draw out latent issues Group dynamics aid in discovery process Fuzzy Front end - make a big open statement and find out info you weren’t thinking of • Use unusual methods to get into customer mind o Complete the sentence/ drawing • Seek lead users Observation-Mechanically or in person- watch how people behave • Ex: Toy manufacturer watch children play Ethnographic research: how people use and react to products in their natural environment • Ex: How people surf the web? Surveys- In person/paper • In person- the interviewer can adapt questions based on respondent • Increasingly difficult to collect phone surveys Survey needs: • Need the right customer • Ask the right questions • Have to be understandable • Answer question, truthfully – PEOPLE LIE • Interviewer has to understand the answers Ex: Smoking cessation- asking people questionnaire in program- found that results were inconsistent across the board • Experiment to test brain waves on the frontal lobe- correlate with people successfully able to complete a smoking cessation program Experiments – establish cause and effect relationships • Discover the marketing drivers • Change one variable in the product or service and measure the effect on one or more variables • Hard to have solid metrics because so many variable in buying decisions Conjoint Studies • The idea of the “trade-off” • Uncovers the relative importance customer attaches to different levels of each brand or potential product feature • SUNBEAM • – aircon? Tradeoff for 5k.. not in Miami Research design • Ethnographic research- observing customers in natural spaces • SAMPLING: portion of the target population • Probability vs. non probability • Fieldwork: the process of gathering the data • Then TAKE ACTION Ex. Pepsi expands to china Slogan- Pepsis brings you back to life but in Chinese it translate to Pepsi brings your ancestors back from the grave What do we take away from marketing mistake? Learn what your customers want before spending time and money on a top-secret product or service change Marketing Information system- keep info up to date to know what customers want and what they are using • Crucial for keeping in touch with customer base o Ex. Six pack and diapers in the same aisle Target Marketing- whom are the people buying your product? Purchase Decision Problem (for customer perspective)- finding yoga studio • Problem recognition- I’m stressed, detox, exercise • Information search- what are other options? Who exists? • Alternative evaluation- cross-fit, times, cost, price • Purchase decision- I like yoga near home • Post purchase behavior- don’t like, bad word of mouth, loyal? Awareness vs. consideration Awareness set- brands set you know about We want to strive to be apart of the awareness set Consideration set- brands you will select from when making a purchase decision Psychological Influences Personality/lifestyle • Big 5: Openness, conscientiousness, extraversion, agreeableness, neuroticism Motivation- What causes people to act Learning- Behavior learning- developing automatic responses based on exposure • Brand loyalty- habits formed from learning • Ex. Discovered by using TIDE my clothes are cleaner, loyal user Perception- making sense of the world around you? Attitudes: are these learned? How do they relate to behavior? • Attitude change strategies Involvement • High level – a car, long time buying/researching • Limited- lunch or dinner • Routine- toothpaste, toilet paper Sociocultural influences • Demographics- describe a population • Culture/ Subculture: U.S. vs. Miami- Florida is southern, sunshine o Miami- Hispanic, bad drivers, transian • Cultural Rituals: holidays, celebrations, daily routines o July 4 , new years • Social Class • Reference group • Personal influences: buzz marketing, viral marketing (ice bucket challenge) Situation influences Marketing Mix influences • Product, price, place, promotion, and people Business customer • Users- target audience • Influencers- people within company that want to promote • Buyers • Deciders • Gatekeepers Business- • Understand the biz custo’s needs, get on the right bidder’s list, find the right people in the buying center, provide unique value to the biz customer Competition • Who are the direct competitors • What is the sales volume of each direct competitor • What market share does each comp. Hold • What are the key strengths and weaknesses of the competitors • How are the competitors positioned in the market- checking out adverts/promotion materials, etc. can determine this Understanding consumers & behaviors Decision Making Process • Need recognition • Information search • Evaluate • Purchase • Post purchase use and evaluation Decision making: benefits • Functional- what it does – Starbucks- awake, warm • Emotional- how you feel- festive, happy Decision making: evaluation • What’s important to you about an airline? • Customer service, pricing, flight times Decision making: purchase and post purchase • Customer satisfaction • Cognitive dissonance- makes you feel good about buying something that’s regrettable ex. Happening online- following up Two varieties: • Habitual • Variety Seeking o Hair care? Brand loyalty: Drivers • Attitudes, brand attitudes and beliefs Key psychological processes: beliefs lead to attitudes • What do you believe about McDonalds Salient beliefs lead to brand attitudes (most important) • The few beliefs that are critical determinants of attitude Yes MA’AM- multi attribute attitude models Provide framework and research procedures to collecting information from consumers to assess their salient beliefs and attitudes about competitive brands • 1. Evaluative criteria- what characteristics/attributes consumers use to compare competitors • 2. Importance weights- how important each of the characteristics are that consumers use in evaluating brands • 3. Consideration set- the group of brands consumers are actually considering • 4. Beliefs- consumers knowledge and feelings about various brands Info processing and perceptual defense Cognitive consistency: maintain a system of beliefs and attitudes over time Advertising clutter: too much stuff being thrown at consumers Selective attention- ignore most ads Cognitive responses- thoughts that occur at the exact moment when beliefs and attitudes are being challenged by a message Elaboration likelihood modeling: ELM Psychology-gathers concepts of involvement, info processing, cognitive responses and in attitude formation in an integrated framework, which can be applied to advertising situations. Persuasive of message can affect a persons attitude and we must consider their motivation and ability to elaborate on the message during processing We’re social beings We need to treat advertising as conveying a message with an inanimate object- emotion/feeling more than attitudes Consuming in the real world: Culture- total life ways of a people Culture- brand promotion= culture business Values- express in words what’s important to a culture Rituals- often repeated formalized behaviors involving symbols Culture value- affects attitude- affects consumer behavior Advertising is used to affect attitudes and to try align with culture values or criticize competitor for being out of line with cultural values Stratification- persons standing in a social system produced by systematic inequalities in measures as wealth, income, education, power and status Taste- generalized set to consumer preferences Cultural capital- the value the cultures place on certain consumption practices and objects Ex: Kylie puts lip stick on insta then its sold out, has a lot of culture capital What holds weight and where? • Advertisers try to figure out which ones are valued more and why and how to make their product sought after because it has higher cultural capital and can be sold at a higher price • IPhone vs. blackberry Family: determining decision makers is an exercise in futility- kids influence a lot of purchase decisions Intergenerational affect- if parents use certain brands likely you will too ex. Cars Life stage variables- tells the advertiser where the family is in terms of its needs and obligations- single? Married? Kids? U Celebrity: help consumers with identity- socialization agents- roles that were filled by communities and families Race and ethnicity: race doesn’t matter, were all the same Gender: social expression of sexual biology/sexual choice • History of ads portraying women as lesser and not as intelligent Community- people belonging to a group Brand community- ex. Harley Davidson Social revolutions- certain looks, dressing a certain way Ads transmit meanings- things always stand for the other values, vivid and to products advantage ex. Coke- happiness • Start work in an ad agency and the first thing they teach you is diff between product and brand- product brown fizzy water, brand coke Shannon McKee- in class guest speaker Cereal Entrepreneur • Norwegian cruise line, access cruise consultant, instashield, banana coast tour, access cruise expedition leaders • Advice: don’t reinvent the wheel, promote yourself, ask for what you want, you’re your number 1 sales person, opportunistic thinking Segmenting, targeting, positioning Target segment: the subgroup of the larger market Positioning: designing & representing one’s product or service so that it will occupy a distinct and valued place in the target customer’s mind. Positioning strategy: yellow people example from Folgers • Must be dynamic and change over time Segmenting By: 1. usage and commitment • Heavy users • Non-user • Brand loyal users • Switchers ad variety users • Emergent consumers- new drivers 2. Demographics • Age, gender, race marital status, income, education, occupation • WOOPIES- well off older people- they have money, family travel, college graduates 3. Geography 4. Psychographics and lifestyle • Example: Pillsbury segments audiences by how the treat the process of eating and cooking o Chase &grabbits o Functional feeders o Down-home stokers 5. Benefits- Based on what you need, what product will provide 6. Business buyers: institutional buyers who purchase items to be used in other products and services or to be resold to other businesses or households Which segments to target? • What does the competitive field look like? o Airlines- price? Timeliness? Which are they competing on? o Market Niche better? § Serving a smaller market at a premium • Formulating a positioning strategy o For a positioning strategy to be effective and remain effective over time, the organization must be committed to creating value for the customer. Positioning Strategy • Deliver on Promise - Nordstrom • Be consistent - Restaurants • Make it different, simply – online Ally Bank o Great ex – southwest airlines Positioning Themes • Benefit- what the consumer gets out of it • User- targeting demographic • Competitive- how are you different Repositioning • When the markets shift, brands must adapt o Competitors can up the ante o Customers can change preferences • Also pertains to long-established brands that need to become relevant again Value Proposition- statement of functional, emotional and self-expressive benefits delivered by the brand that provide value to customers in the target segment Aggregate similarities – people with common needs, similar interest • Customers are diff because they have different needs and behave in different ways • Ex: panther coffee- strong, roast own beans 1. What is purchased? Coffee- baked goods, alcohol 2. Who is purchasing? Decidedly hipster, coffee connoisseurs 3. Where is it purchased? Wyndwood, Miami beach, coco grove 4. How is the product/ service purchased: at the service counter, square 5. How much is purchased? 1 cup at a time 6. When it purchased? All day long 7. Why is the product/ service purchased? Culture experience, quality, uniqueness, coffee connoisseurs Different types of marketing Targeting approach: -Mass marketing- one product, one marketing mix, undifferentiated mkting • Do not distinguish between any segments, market as whole -Differentiated marketing- different segments n marketing mix: diff tactics to diff consumer groups -Niche marketing, one segment • Concentrated marketing- 1 segment tailed to one market -Micro marketing- one to one Positioning- the place service will lay in their mind- • Value proposition or marketing promise 2 approaches: • Head to head in direct competition with other products/ services – bmw / Cadillac • Differentiation strategy- smart car, tesla Perceptual Mapping- Purchase criteria deemed important by customers • Customer ratings of existing brands • What an ideal brand would offer • Visual awakening Positioning- positioning involved real and perceived differences NEW DEVELOPMENTS & BRANDING New products, three types: • Continuous innovation - Not going to disrupt things as they are o New products that will have little disruptive influence on existing consumption patterns- involve minor product modifications- flavor package • Dynamically continuous innovation- Will have some disruptive effect but still do alter existing buying patterns completely o Ex. Coffee machine • Discontinuous innovation- Involve major technological breakthroughs that create fundamental changes in consumer consumption behaviors. Can create new markets o Automobile, for example, new ritual like computer New services • Harder to create and deliver • The include labor intensive, interactive services and the actual providers • They require physical presence of the customer which demands local decentralized production of the service • Do not usually have a tangible product to carry a brand name Major service innovations: Major service innovation are entirely new concepts for markets -these new services create new markets • New processes to deliver existing services, new value • Example: FedEx overnight delivery, CNN- first 24 hour news service Service line extensions: • Adding pet health insurance to existing insurance biz • Adding new elements to the core service or improving existing supplementary services o Ex. Valet service at hospital Basic service improvement: continuous innovations- modest changes, most common • Ex. Healthier options on menu What makes it successful? • Superior advantage- better then others • Compatibility- aligns with values • Simplicity • Observability- the service’s innovative characteristics can be easily observed and or easily communicated • Trailability- can be purchased on a trial basis or samples • Low perceived risk- warranties and guarantees – as seen on TV • Intellectual property protection- patent, trademark How do we get there: The 5-stage launch 1. Idea generation- • Most difficult stage, lead users- a small group of potential product/ service users who desire new products or services before the general market recognizes this need. 2. Screening and evaluating- kill bad ideas 3. Business analysis- • Finalized concept undergoes detailed product, marketing and financial scrutiny, costs to develop forecast demand, determine profitability. 4. Development- • Words, ideas, concepts come to life and turned into a prototype 5. Market testing – • Take product to market on a limited basis in a well-defined market also simulated market testing Launch! Adoption and diffusion of new products and services • Adoption: awareness, interest, evaluation, trial, adoption/rejection Five type of adopters: iPhone • Innovators • Early adopters • Early majority • Late majority laggards Managing products over life cycles • Introduction • Growth • Maturity • Decline New approaches • Entrepreneurial • Iterative/spiral approach o Incorporate the concepts of speed, agility, parallelism, adaptability, flexibility, and scalability The brand BRANDING- name, sign, symbol, design or combo of these elements to differentiate them from those of the competition • It is your promise to the customer • Importantly: a brand is a blend of what you say it is and how well you deliver; from the customer’s perspective. Characteristics of a good brand: • Effectively communicates value • Relevant to customer • Resonate with the customer • Reinforces the company’s intended positions in marketplace • Is consistent and unifying • Serves as umbrella for current/future brands in the company’s portfolio • Allows for the building of strong brand equity • Enable you to command premium pricing • Is easily understood by your customer and you employees • Can be sustained over time Branding process: 5 steps 1. Conduct Brand analysis • Examine customers, competitors and venture- looking for right fit in terms of core strengths, customer needs and competitive opportunity 2. Determine brand positioning • The place the product/service will occupy in the hearts and minds of the customers in relation to competitors 3. Select a brand name and identity - Logos, color, language • Good brand name • Be distinctive and convey positive meaning • Enough “flex” so as not to constrain the growth and expansion of the venture 4. Select a branding strategy • Corporate branding o Branded house- a single brand covering all products and services § Ex. VIRGIN- airlines, railroad, cola, music o Maximizes brand clarity and provides visibility o Default brand architecture option • Individual product/ service branding o House of brands- involves creating and managing an independent set of stand alone brands to max impact on market o Ex. P&G- tide, downy, pampers • Hybrid branding o Sub branding- the corporate brand is the primary reference with augmented part o Ex. Microsoft- Microsoft office • Private branding o You produce brands for someone else • Mixed branding- sell under two brands- Michelin tire sold also as Sears tire 5. Construct a brand communication strategy- how you will create a consistent unified message Brand equity- value added by the brand to the product • Ex. Coca cola coke or Amy coke • They added value a given brand name provides a product beyond the functional benefits Creating brand equity • Develop positive brand awareness • Establish the brand’s meaning in the minds of the consumers • Elicit the proper customer response to the brand • Create a customer brand resonance Value brand equity • Be authentic • Be unique- distinct or extinct • Get a good support system Integrated Marketing – Promotions Integrated marketing- consumer preferences and new technology are reshaping communication environment Promotion- communication process in marketing that is used to create a favorable predisposition toward a brand of product or service Promotional mix- the communication tools used to carry out the promotion • Advertising: Broad reach, high cost • Public Relations: Credibility, hard to get • Sales Promotions: Stimulates sales short run, can cheapen product • Personal selling: Persuasive, inconsistent and expensive per exposure • Direct Marketing: Precise targeting, customer may not buy unless already know company Integrated marketing communication – IMC – attempts to coordinate promotional efforts so that messages are synergistic Advertisement- specific message to persuade an audience Advertising campaign – series of coordinated advertisements that communicate a reasonably cohesive and integrated theme When is it integrated? When advertisers combine advertising campaigns with other promotional tools like contests, website, events- to build and maintain brand awareness Mass mediated communication- though medium like magazine, production of content, accommodation and negotiation, reception Audience- group of individual who receive/ interpret ads • Categories: o Household consumers o Business organizations o Trade channel o Professional trade journals o Government officials Target audience- the ones you want to listen Global promotion- messages worldwide – minor changes ex. Coke International promotion- diff messages in different countries Regional promotion- statewide ads – retail chain in certain areas ex. Publix Local promotion- The rat happy hour Brand management – most valuable asset, name can be worth more then sales, must always maintain brand standards and reinforce them with customers Promotions support brand development through • Information and persuasion, intro of new brands, building brand loyalty, creating image and meaning, maintaining brand loyalty Promotions effects on profits- contributing to economies of scale, create inelasticity of demand Promotion objectives: • Primary demand stimulation o Creating demand for an entire product category- totally new product • Direct response marketing- asks consumers to act immediately o Call now • Delayed response- attempts to develop awareness and preference for brand over time to get customer to remember o Ex. Macys weekly sales ad- not right now, but on the weekend • Corporate advertising – favorable attitude toward company as whole Promotions can increase GDP, stimulate competition, stabilize business cycle, reduce prices while creating economies of scale, add value to consumption experience like social meaning! Promotion is great. • OBJECTS take on meaning from culture, society and consumers. o Meaning becomes part of the brand as the products physical features, image of brand contributes to consumers perception of the value of the brand, the more value consumers see in a brand the more they are willing to pay The promotional mix • Promotion: Marketing initiation communications o Done to influence and affect behavior of audience § Create brand awareness § Build favorable attitude § Get people to buy • TV ads, radio, magazine, internet, consumer generated media (YouTube, intagram), corporate – build awareness, direct mail – realtors, outdoor- concise message PR is a type of communication designed to create a positive image about a company, its products and services or people via the use of non-paid forms of communications. Sales promotion- short term inducement of value offered to arouse customers interest in buying product or service – coupons, rebates Direct marketing- measureable response in the form of an order, request for further information, or visit a store/ restaurant Social media- leverage to create positive word of mouth, way to measure, listen to customers, build trust 10/14/16 12:07 AM 10/14/16 12:07 AM


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