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This 10 page Class Notes was uploaded by Dixie Olson on Thursday September 17, 2015. The Class Notes belongs to Mktg 360 at Washington State University taught by Mauricio Featherman in Fall. Since its upload, it has received 16 views. For similar materials see /class/205949/mktg-360-washington-state-university in Marketing at Washington State University.
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Date Created: 09/17/15
Overall Any book material from the following 4 chapters may be on the exam except for the glossary words that were removed Start with the chapter summaries then memorize the glossary terms then read the text and slides to gain more depth of understanding and context The exam will mainly focus on material related to lectures Business to Business Marketing a What is it How is it different from other forms of marketing Business to business marking is the quotthe marketing of goodsservices to businesses and organizations that use them lanufacture other goodsservices for resale components or raw materials Resell them distributors or merchant wholesalers Support basic operations consumables BZB marking is different than marketing to consumers BZC or CZC Relationship B2C B2B Vendor tells you what s good to buy We ask you what you need and how we can partner up to mutual benefit Vendors quotWe hope you like our products We will customize our product to fit your needs so we know you will love it Consumers can buy them when the store is open What time of day do you want them delivered In what quantities at what temp Consumers are impulsive and hedonistic Corporate buyers are rational and deliberate We ll sell you what we have We will deliver what you need Target Markets Customers have SSS Purchases are much SBiggerS Live inGeographical Centers More reliance on in person sales reps Much more complex requiring teams of specialists But Centers Other differences I The reason for purchase is different components I The buyer isn t the enduser of the product and they aren t spending their own money I Teams make the purchasing decision engineering legal input Alternatives are formally graded on weighted specifications Evaluation is deliberate and rational no impulse purchasesl Process takes time and is complex I Contractual agreements more risk increased dependency or vulnerability to vendors I Longterm relationships I Purchases can include Bidding price negotiations etc I Purchases can be high risk andor high cost riskbenefit calculations are different I Productsservices are complex I Demand for products is often derived from external demand I Demand is price inelastic firm s still need and buy products to be used in manufacturing even if the price goes up somewhat I Demand for 323 products is joint Joint demand is a kind of demand that occurs when the demand for two or more products or services are interdependent normally because they are used together I After sale vendor and product ratings are formalized Some vendors are short listed some blackballed b The buying situation Buy classes Buy classes are the classification of buying situations based on how much effort it takes to make the decision Straight Rebuy Lowest Effort Routine purchases repeated over time often from same vendor Modified Rehuy Some effort Make some changes to a rebuy NewTask Buy High Effort Complex takes time involves risk c Roles in buying center Buyers do plant visits etc Engineering manufacturing legal all help the buyers review products Engineers look at prototypes Legal looks at risks Ops people look at efficiencies of usage Buyers want to often buy the cheapest and lower quality products cl Steps in buying process 1 Product and supplier selection is based on reliability relationship with vendor quality ability to deliver reciprocity and price 2 How many suppliers should you choose Single sourcing put all your eggs in one basket 3 At what level of capacity sb outsourced 4 In post purchase evaluations using the vendor scorecard vendors may be shortlisted promoted or blacklisted barred etc Target Market Strategies 1 What is segmentation Targeting Positioning Segment profiles Step 1 Segmentation The process of dividing a larger market into smaller pieces based on one or more meaningful shared characteristics Can be done based of demographics generations gender vocations social class zip code amp lifestyles shared activities interests amp opinions Segment Variables for Individuals quotWhat are some dimensions that are useful to differentiate customers EG Income culturereligion age social status eudacation level avocation special interests accessibility need for specific information sex need for customization need for qualityreliability degree of a productservice ingredient use of 8020 rule 80 of demand comes from 20 of customers 3 39 I 39 39 uses 39 39 39 39 39 39 g39 39 factors to develop segments This is much more insightful than just demographics cause while people may look the same they are different EG personality motives lifestyles 39 39 39 39 39 o C quot and 39 C r information Looking for clusters of similar people EG PRIZM amp Claritas Geocoding Web vendors can tailor web advertising and pricing according to logon zip code Step 2 Targeting A strategy in which marketers evaluate the attractiveness of each potential segment and decide in which of these groups they will invest resources to try to turn them into customers THERE ARE THREE STEPSI 1Evauate market segments for unmet need amp Sdemand 2 Fully develop segment profile using 39 variables define the typical customer Segment must differ from other segments 3Choose Target Strategy Undifferentiated Appeal to masses fferentiated different strokes for different folks Concentrated go after just one segment Onetoone Marketing Mass customerization offerings are tailored to individuals to nurture longterm relationships i Criteria for successful 39 Accessible Responsive Sustainable Large and profitable enough tojustify its own tailored marketing mix Identifiable and measurable Accessible Reachable with Marketing communication online and in the mail Responsive The segment needs to respond differently than another segment Step 3 Positioning Design a goodservice to meet target market segment s needs Also create a marketing mix specifically for target market that will lead to a differential benefit THERE ARE 4 STEPS ll uz Ll I II Brand personality Definition a distinctive image that captures a product s or service s essence How to determine Ask customers what characteristics are most important cost reliability make a pair Measure your brand and competition on those dimensions Plot and evaluate your brand s location on these 2 dimensions using a perceptual mag Brand perceptual map Definition A vivid way to construct a pictures of where products or brands are quotlocatedquot in consumers mind It allows marketers to identify consumers perceptions of their brand in relation to the competition EG o o Arthilcnwal Digest I l Cosmcpal Peril r Giamou l MKK l C edemayell iLadles Home Journal SM 1 Wm r 39 I O f Harper39s 39 Family Circle 3am 39 I 39 I Redbook E x o I swam Man I s World I Downuale Segment Prafilesy A ClerIPUirn Dime typical Emma m a merit Innovations and Product Lines a Layers of a product core actual augmented Core Productbenefits The core benefits provided to the customer for running shoes are l protection for your feet and 2 stylish foot wear Emobenefits Emotionbased subjectively derived benefits motivation to 1just do it earn personal bests belongingness to a community or reference group other emobefefits You can generate interest and sell your innovative products if you focus here Actual product running shoes Many different actial products in different product categories can provide the same core benefits Augmented Product other supporting features of the product offering e after sales service warranty deliver ampinstalation does a website blog add value Yes facebook fan pages b Classifying a product durable non durable etc How long they last Durable Provide benefit over long term Potential for high enduring involvement in decision Nondurable Provide benefit over short time Typicaly low enduring involvement in decision c Convenience products types How do customers buy them Def Low price purchased often need to be widely available little time spent in decision making Types Staples necessary items lmpulse unnecessary but fun Emergency buy in a situation of dire need Fast moving consumer goods consistently high turnover d Other product categories shopping specialty unsought etc Shopping Products High enduring involvement product categories Specialty Products Not an emergency purchase but product provides a unique benefit to buyer No high enduring involvement no consumer love so typically not a shopping product Unsought Products Consumer has no interest until they need them life insurance ept retirement funds e f 7 Innovation Definition A product perceived to be new or different i Types continuous knockoffs dynamically convergence discontinuous Continuous lnnovation Small modifications to existing products no new learning or behavior mod is needed nntinnnncl z o39 a r I product modest learning and behavior mod is required wii W aka disruptive create major changes in how we societies live major learning and behavior mod is needed car VCR youtube etc Consumer adoption stages amp Categories of adopters Summa Product adoption is the process by which an individual begins to buy and use a new product whereas the diffusion of innovations is how a new product spreads throughout a population The stages in the adoption process are awareness interest trial adoption and confirmation To better understand the diffusion process marketers classify consumers according to their readiness to adopt new products as innovators 25 early adopters 135 early majority 34 this indicated societal acceptance of product late majority 34 Adopt when little no risk when necessary or due to social pressure and laggards 16 1 Relative advantage faster adoption of productservice in comparison to current offerings Differential benefit gives this 2 Compatibility faster does it fit in with target markets lifestyle and related products Compatible technology Piggyback with prior technology Easy to bundle 3 Complexity Ease of Use faster hard to use 4 Trialability faster can you try before buying it 5 Observability faster will referents observe you using the product Will yours core status points 6 Perceived Risk so give 3 back guaranteesl possibility of losses Product lines product line limited line strategy full line strategy extension Product Line 9 Downward Line Stretch Adding a less expensive option less expensive 53 product lines 9Contracting Removing options 9Upward Line Stretch Adding a more expensive option More expensive SS and higher quality 9 Filling or quotfilling outquot Adding options Can be wide many options or narrow 1 or a few options Limited Line Strategy fewer variations Full Line Strategy more Strategies Branding Extensions is when a company leverages their brand name into a W w adding a new product line Quality dimensions Consumers perception of how well a product performs and its ability of a product to satisfy a E In an often underwhelming world Consumer s search for quality and authenticity is important Don t memorize list use to communicate quality to target market EG Degree of pleasure durable reliable precision versatile satisfies needs easy of use product safety ease of purchase easy to upgrade after sales servicessupport ease of maintenance performs as advertising promised it would Aesthetic Pleasue Product life cycle stages issues Introduction Stage No profits because the company is recovering RampD costs 40 fail at this is made ot an existing 7 stage Revenues are low due to marketing costs Market Development Growth Stage Profits increase and peak Sales and profits increase and peak and the length of product line develop product 39 39 Spend on advertising to go for market 39 pray for little I from d p p l t d I 39 Product quot 39 I Maturity Stage Sales peak Try to increase brand loyalty and reposition as necessary At the beginning of this stage try and market 39 39 quot 39 Market Penetration Decline Stage Market shrinks sales fall Demand for any stale branded product also shrink with inc in competitors Reduce production Market development amp penetration Branding strategies individual vs family national etc Defin n Name term symbol or any unique element of product that a identifies one s product 39 and product and b Sets it apart from the competition Should Be easy to spell say read 8L remember Fit target market products benefits customer culture or legal requirements A good brand The brand excels at delivering the benefits customers trulv desire The brand stays relevant changes with timesnews The pricing strategy is based n consumers perception of value The brand is properly positioned for the target market The band meaning is consistent The brand portfolio line ampmix and hierarchy make sense The brand makes use of and quot a full repertoire of marketing activitie to buy eguiy The brands managers 39 what the brand means to consumers this changes The brand is given proper promo amppricing support and that support is sustained over the long run The company monitors sources of brand equity Branding Strategies lndividual Vs Family can a good brand name transfer to other related products Ifso may want to build on that National or manufacturer brandnormal case like ford and Ben amp Jerry s PrivateLabel Brands owned by retail storesafewaycostco Generic Products no brand Product is a commodity A strategy in which products are not branded and are solids at the lowest possible price Licensing produce product pay to borrow brand name Cobranding or ingredient branding An agreement between two brands to work together in marketing a new product MARKETING 360 Exam1 STUDY GUIDE Introduction to Marketing Chapter 1 What is marketing AMA definition and more importantly the meaning eds J 39 I 39 g a l 39 vice to meet that need and making people aware of the branded productservice in the place and manner where they can they can easily consume it at a price that is acceptable Also Wthat consumers have a compelling reason to buy that has a differential benefit then positioning it at an acceptable location and price Terms Bene t Exchange Demand Market Marketplace Stakeholders Customer Needs Wants UtilityValue Value Proposition Bene t The outcome which a consumer seeks and which motivates their buying behavior Exchange Process where a transfer of value is made between buyer and seller Demand Consumer s desire for products coupled with the resources to obtain them Market The total amount of consumer who share a common need that can be satis ed by a product and have the disposable income to make the purchase Marketplace The location where the buying selling exchange can take place Stakeholders Buyers sellers investors in a company Customer Someone who purchases stuff Needs Human internal biological and psychological drives cause a person to recognize that a gap exists between consumers actual and desired state Wants Desire for a speci c prodiuct to satisfy the need Utilitv Refers to the sum of the bene ts a product or service offers More than just a product Value A description of the bene ts a customer will receive from buying the product or service Can be different for eve one Value Proposition Communicating the value to a consumer so that they believe it when they have consumed the product 1 xr C Value Chain A series of activates involved in designing producing marketing delivery and supporting any product Each link in the chain has the potential to either add or remove value from the product the consumer eventually buys 1 Names of segments Inbound logistics Bringing in materials to make the product Operations Converting the materials into the filial product Outbound logistics Shipping out the nal product Marketing Promoting and selling the final product Service Meeting the customer s needs by providing any additional support required HOW they add value By gaining a competitive advantage if one or lnore segments is the strongest D Marketing Orientations Product Selling Consumer or Market New Era Product Old school you buy what we make Selling We will sell you what you think you need Consumer Using focus group split of market into many submarkets New Era We don t sell products we sell solutions and bene ts Key differences between Sales and Market Orientation Selling We want our sales representatives and our dealers to have all the tools they need for moving the output of our plants to the consumer Market Orientation The marketing concept introduces the marketer at the beginning rather than at the end of the production cycle and integrates marketing into each phase of the business 111 Strategy Chapter 2 Businessplanning The ongoing process of making decisions that guide a business in the short and the long term B Marketing Plan what is it The market plan describes the internalexternal marketing environment outlines the marketing objectives and strategy and identi es who will be responsible forcariying out each part What goes into it 1 Strategic level and tactical level management together perform a SWOT analysis and portfolio analysis at SBU level for each product line in each market 2 Set Marketing Objectives for each product line sales qty revenue goal market share etc 3Develop the marketing plan developing marketing strategies tactical level mgmt Iclude designing the marketing metrics used to measure performance to plan IQI S key performance indicators 4 Implement and Coontrol the marketing plan Operational C Marketing Mix Four P s Product Price Place Promotion Product Strategies Choices about product attributes packaging branding support width of product lines Spe d a lot of time on packaging Pricing Strategies Price to distributors MSRP and EDLP to consumers for each SKU price lining Promotion Strategies Developing the product s message to consumers Place Strategies Distribution plan sell product to wholesalers only directly to consumers Costco vs outiques Online D Three Levels of a Marketing Plan Strategic Functional Operational Strategic Planning What to do in the next 5 yrs managerial decision process that matches the firm s resources assets and workforce talents to market opportunities with an eye toward the future Tactical Planning 12 yrs Each functional area in a firm figures out how their dept will implement the strategic lan Operational Planning What to do now to implement the higher level plans The action plan used to implement the tactical plan includes metrics to monitor performance E Five Steps in a Strategic Plan Know strategies and details of each step 1 Mission statement defines the company s purpose and speci es what the rm hopes to achieve over the next 5 years Environmental Analysis SWOT Analysis situational analysis SrengthsWeaknessesOpp0rtunitiesThreats Set Objectives Need to be specific measurable and sustainable 4 EstablishEvaluate Portfolio SBU s BCG Market Share Matrix Each SBU strategic business unit is a separate pro t center within the larger corporation BCG growth market share matrix focuses on determining the potential of a firm s existing successful SBUs to generate cash that the firm can then use to invest in other businesses 5 Develop Growth Strategies Market Penetration Try to sell more of your current product line to your current target markets Blarket development Try to sell your current product line to a new geographic market or new market se ment Find new customers with unmet needs pretty risk Product development Try to extendreenergize the product line and bring new products to the current mar et Diversi cation Strategy Develop new products for new markets Be able to map the growth strategies to the product portfolio V Marketing Research A MIS Marketing Information System Know system components and functions Computer hardware networks and data to provide interactive reports alerts amp dashboards that marketers use to make business decisions what are the different types of data Internal company reports on the results of sales and marketing activities Data Marketing intelligence information about everyday happenings in the market environment Market Research Refers to the process of collecting analyzing and interpreting data about customers competitors and the business environment to improve marketing effectiveness Acguired Database Information that is available in the form of external databases B MDSS Marketing Decision Support Systems Know components fu nctions MDSS includes analysis and interactive software that allows marketing managers even those who are not computer experts to access MS data and conduct their own analyses often over the company intranet and difference from MIS MlS what were our sales last month Grouped and sorted and subtotal Regular reportsare printed uploaded or emailed 011 a regular schedule Report formats are standardized and routinized Often are exception MIBE reports to filter data MDSS Aka adhoc reports which are interactive and allow the analyst to de nerefine parameters le to predict consumer behavior Models to analyze whatif we spend promo on Interactive analysis session Can use data mining C Seven Steps in Marketing Research Know actions at each step 1 De ne Research Problem Identify key research questions customer target market set question in context Determine Research Design Primary v Secondary and the three types of primary research Be able to describe each research methodology type ex focus group ethnography survey etc Primagy Fresh dataset Secondagy analyze archieved data from either internal or external source Exploratog Research A research technique that marketers use for future and more rigourus study Customer interviews a oneone way discussion between consumer and researcher Focus Groups A group of similar consumers in the same target market are paid to meet to discuss product vendor or service Centered around the 4 Ps and consumer perceptions Projective Techniques a test that marketers use to explore people s underlying feelings about a product Ethnographies a detailed report based on observation of peopletarget market in their own home or community and how they use the product product category in question Descriptive Research a type of research that probes systematically into a problem and basis it s conclusions on large numbers of observations Coss Sectional A type of descriptive research technique that is used to gether primary data Involves the collection of quantitative data at one point in time Longitudinal A research technique that tracks the response of the same sample of respondents over time Casual Research A research technique that manipulates factors to understand if the factor effects a dependent variable 3 Choose Method for Collecting Data Reliability and Validity Exploratog Methods Focus groups lt200 Descriptive Survey mail telephone on line ZOO10000 Observations Direct Measures such as watching consumers in stores Unobtrusive Measures such as examination of Web server logs Casual Manipulate one of the 4ps and check differences in sales or attiude Reliability The extent to which research measurements are free of errors and are understood by their research respondence Validity The extent to which research methods actual measure what they were intended to measure 4 Design Sample Probability and Nonprobability sampling generalizability offindings Probabilitv Sampling is a more scienti c and rigourous approach and every member of the population has a chance in being included Nonprohablility Sampling is where the researcher uses their personaljudgement when selecting respondence 5 Collect Data Careful training is essential hire pros Online Use survey monkey International research poses variety of problems 6 Analyze and Interpret Data Statistics 7 Prepare Report Includes an executive summary description of the methodresults limitations conclusions and recommendations for action Better informed now management can take some action VI Consumer Behavior A Steps in CDM Consumer DecisionMaking 1 Problem Recognition The process occurs whenever the consumer identi es a gap between their current and desired state This starts the consumer the decision making process 2 Info rmation Search Is the process where consumer searches for appropriate information to make a reasonable decision Evaluate Alternatives Is the step in the consumer decision making process after information search has been completed in the consideration set is decided At this step the consumer compares the different products Product Choice not tested 5 Post Purchase Behavior not tested B Internal Influences on CDM 1 Perception Is the process by which people select organize and interpret info from the outside world Motivation Is an internal state that drives us to satisfy needs by activating goal oriented behavior Learning Is a relatively permanate change in behavior caused by new information and experience Attitudes Is a learned predisposition to respond favorably or unfavorany to stimuli based on the enduring evaluations of things Personality not tested 6 Lifestyle Is the pattern of living that determines how people choose to spend their time money and energy and that reflects their values tastes and preferences Social Influences on CDM 1 Culture Is the values beliefs customs and tastes valued by a group of people Sub cultures not tested Social Class not tested Group Membership not tested Opinion Leaders not tested Gender Roles not tested D Other influences 1 lnvolvement not tested 2 Perceived RlSk Is the assessment of the potential danger the consumer would be exposed to it 3 Big 5 Personality Traits 1 Neuroticism Worry 3 Extroversion Talkative SAgreeableness pleasant 2 Openness Adventurous 4 Conscientiousness disciplin mweww
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