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test 1
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35
Marketing
Undergraduate 3
03/06/2013

Additional Marketing Flashcards

 


 

Cards

Term
1. Market yourself
­ How do you find the right person to talk to; how do you say the right thing to that person
2. Sell yourself
­ How people see you
­ How well you can speak
3. Know people (networking)
­ You have to go out and find people and get them to use you
4. Maintain contact
Definition
Success (John Camp)
Term
• Creative
• Aggressive
­ When they tell you NO, you have to be willing to try something else
­ Persist in finding a solution
• Enthusiasm
­ Not talking about extremely animated
­ You cannot be a drain on the organization
• Smart
­ Not everyone is book smart
­ Being able to think
• Honesty
­ They have to trust that you aren’t going to take advantage of the company
Definition
Traits that a company looks for:
Term
• Interpersonal Communication Skills
­ #1 trait they look for when hiring
­ How you interact with other people
­ Be able to write and speak well
• Teamwork
­ Somebody who can work with a team despite any differences between members
­ Tip:
o In an interview, look at presenters going for the job as well and support them on their presentation
­ Nod on presentation
­ Jump in and help if they struggle
• Honesty
­ Can you be trusted with confidential information?
• Core competency (what are you good at?)
­ Ability – How good are you?
-likablility
-credibility
Definition
Things companies look for:
Term
• Al Merhabian
­ In order to have an emotional impact on someone
o Ability to look at you and something about you draws them in
• What are those characteristics that make you likeable?
­ Vocal
o 38% of emotional impact you have is your voice
o Tone (most important focus)
­ Killer B’s
→ Boredom
­ Make things sound interesting, even if they are not
→ Bitterness
o Pause
­ Ability to be able to learn when to stop, be quiet, when to be reflective, etc.
­ Visual
o 55% of emotional impact
o Facial Expression
­ Your facial expression says a lot about you and reflects on other’s reactions to you
­ Default look that makes you appealing
→ It is a person’s first glance on your likeability
­ Verbal arrangement of the message
o 7% of emotional impact
Definition
Likability (You must be likeable)
Term
The believability you have when talking to other people.
• Trust / Honesty / Sincerity
­ You have to be trustworthy, if you lose it, it’s impossible to regain
­ If you make a mistake, admit it and show your loyalty
­ Les Miles
o He did not step up and honestly admitted his mistakes
• Knowledge
­ Expert
o Your expertise enforces your credibility
­ Getting information from outside is not taking away from your knowledge, it is enhancing your credibility
• Identification / Association
­ Are you able to identify with that particular target audience?
o Dress code, vocabulary, etc.
• Position / Status / Success
­ Internship
o Internships add to your position / status / success
­ Your credentials add to your credibility
• Charisma (Personal Branding)
­ Your personal brand
­ How you’re seen, perceived
Definition
Credibility
Term
­ Mayor Giuliani (New York)
o Credibility
­ Popularity was at all-time low (adultery, etc.)
o Sept. 11th, 2001
­ Stepped on world stage and completely changed his own personal view
→ By HOW he said what he said, NOT because of WHAT he said
­ Netflix CEO (Hastings)
o Separate company in two without customers knowing
o Raised prices
o Ended up joining company again
­ J.C. Penney’s CEO
o New CEO is the man who started the Apple store
o Problem:
­ Not modern
­ Everything is discounted
o Review:
­ Start from scratch
­ Not discounted
→ Discounts give the idea of “cheaper”
­ Bring store back to life – renew
o Ron Johnson’s credibility brings attention to consumers
­ Justin Timberlake
o Damaged his credibility in Super Bowl accident
o Improving credibility
­ Callaway’s creative director
­ Callaway looking for a younger market
Definition
examples of credibility
Term
• Production Orientation
­ Produce “stuff”
­ See what they produce and how well they produce it
­ Concern – there might not be a market for your product
• Sales Orientation
­ Whenever a company puts up a skilled sales force to move the products (“sell”)
• Market Orientation *
­ Satisfying a customer’s needs and wants by giving them a product that they desire
­ Got to know who the customer is
­ Understand the customer
• Societal Orientation *
­ A marketing orientation, while keeping our environment and society safe
­ Being environmentally friendly (eco)
o Wal-Mart
­ Wal-Mart changed several guidelines as well as some product lines
o Patagonia
­ Everything is made out of recyclable materials
o Nike
­ Got in trouble for sweatshops, so Nike changed guidelines and helped foreign governments improve labor rules
­ Sustainability
o Making sure that we keep this planet as good and clean and we’re good citizens
Definition
Marketing & Management Philosophies
Term
-customer value
-customer satisfaction
-develop and maintain relationships
Definition
Market Orientation
Term
­ Customer value makes customers happy about a brand and continue being customers
­ CV = Benefits – Costs
o If benefits outweigh the costs, then you have created value
Definition
• Customer Value
Term
­ Keeping the customer happy
­ You cannot satisfy everyone, but work to satisfy the majority
­ Benefits:
o Referrals
o Premium Pricing
­ Charge more because people are willing to pay
o Increase Usage
o Reduce Selling Time
­ Prospect Theory
o Good things can happen, but if something bad happens, that’s the only thing you’ll remember
o Harvard Review says:
­ 63% of customers are more likely to change a purchase behavior based on the indifference of one person
­ Mystery Shopper
o Somebody who is chosen to pose as a regular customer and report back to management explaining their experience
o Management does this in order to discover the prospect theory
­ Employee Satisfaction is good Customer Satisfaction
o Cane’s – employees make customers feel good
­ Service Profit Chain
o Employee Job Satisfaction
o → Customer Value
o → Customer Satisfaction
o → Customer Loyalty
o Profit
Definition
• Customer Satisfaction
Term
o Angry
­ “Good” type of dissatisfied customer
­ Company knows who is disappointed and are able to improve
o Remorseful
­ Customer who doesn’t express his/her dissatisfaction
­ Company will never know about their dissatisfaction so there will be no identification of failure
­ Failure/Recovery
o As long as you know you have failed, you can do something to recover
­ Delta Airlines
→ Spent a lot of money to improve customer satisfaction
→ In order to make up for overbooking a flight, they can offer gift cards to compensate
­ Starbucks
→ Announced they were closing all their shops in order to re-train employees
­ Walk-Ons
→ Failed in Customer Satisfaction but knew the Failure/Recovery
o Some companies are so good at recovery that they fail on purpose
­ Show customers how effective they are
­ Leaves a greater impression on customer
­ Jet Blue
→ Southwest’s competition, Jet Blue, gets an ice storm and because of a lack of planning, the brand is damaged
o Art of the Apology
­ United Airlines
→ United broke a passenger’s guitar and did not help the passenger, so he wrote a song “United Breaks Guitar”, which was a hit
→ United did not apply the art of the apology
Definition
­ Two types of dissatisfied customers:
Term
employee job satisfaction
customer value
customer satisfaction
customer loyalty
profit
Definition
service profit chain
Term
T
Definition
Profit and growth are stimulated primarily by customer loyalty. Loyalty is a direct result of customer satisfaction. Satisfaction is largely influenced by the value of services provided to customers. Value is created by satisfied, loyal, and productive employees. Employee satisfaction, in turn, results primarily from high-quality support services and policies that enable employees to deliver results to customers.
Term
P1 = personality
P2 = performance
Visibility
• Personality
­ Appeal to the Audience
­ Credibility
• Performance
­ Ranking in the industry in which you work
­ Example:
o Patriots los the Super Bowl, which is not a good performance, but their record of 3-2 in Super Bowls is still a good performance
• Visibility
­ How large is your audience?
o How many people saw your commercial?
­ Example:
o MIA didn’t get such a big visibility because she was just a back-up singer
­ MIA did get some visibility due to her “finger stunt”
• Company Morale
­ Century 21 Super Bowl Ad
o Convinced everyone they are the best, even if not true, it impacted the viewer
Definition
Winning (P1 + P2 * V)
Term
• 75% of customers who have a bad experience are going to tell at least one person
­ Sensationalized – more dramatic than what really happened.
• 7% of customers who receive bad customer service are going to tell the service provider
­ Bad thing since it doesn’t provide company the information needed to improve (recover)
­ Remorseful dissatisfied customer
­ Switching
Definition
Word of Mouth
Term
• Core Service Failure
­ When customers don’t receive service they’re paying for
­ Examples:
o Airline Industry
o Busy nights at restaurants
• Service Encounter Failure
­ Service customer is getting at particular location is not good
­ Service customers want is at least satisfactory
­ Flaws:
o Employee attitude, helpfulness, etc.
­ To Succeed:
o Knowledgeable
­ Customers want to be informed
­ Example:
o Best Buy
­ Employees are trained to know about products
• Price
­ Will affect customer’s decision
­ Pricing is a critical reason why customers switch
o Too expensive
­ Customers might look for better prices
o Too low
­ Customers might be skeptical about product sold
­ “Something has to be wrong with it” mentality
o Deceptive
­ Price that looks to be a good deal but is actually far from fair
­ Example:
→ Generators during Katrina sold for $1,000 when they normally sell for $300
o You want to have a price structure that is ethical
• Inconvenience
­ Convenience
o Location is not all, but part of it
­ It could be comfortability, etc.
o Customers want maximum possible convenience
­ Examples:
o Fat Cow
­ Last 5 stores in same location have gone out of business
­ Parking is a big part in commercial convenience
• Employee failure to respond to service failure
­ Did the employees try to fix the problem after it happened?
• Attraction from Competition
­ Sometimes the competition comes up with something so good there is nothing you can do to keep the customer
­ Could be the look of the building
• Unethical Behavior
­ Example:
o Shortchanging customers over and over
Definition
Reasons Customers Switch
Term
• Level I – Market Analysis
• Level II – Strategy Development
• Level III – Implementation
Definition
Marketing Strategy Framework
Term
­ Company
o How do we do good as a company
­ Customer (Who is the customer?)
o Demographic Profile
o Variations of Age
o Race (and how it’s been missed)
o Income
o Education
o Geographic
o Occupation
­ White collar, blue collar, unemployed, retired, student, etc.
o Religion
­ article on personal branding that you will be tested on – involves a religious statement causing the man to be bashed
o Gender
­ Male/Female
­ NFL (Male Orientation)
→ Targeted women (attractive) to grow market
→ Done it without alienating men
­ Competition
o Who is your competition?
­ Understand them
o LSU
­ Competition is New Orleans Saints
o USPS
­ Lost notion of possible competition
­ FedEx came up with new service, package shipping (jets)
­ UPS came out with truck delivery
­ FedEx came back with trucks and UPS, in turn, included jets
­ Conditions
o External Environment
­ Conditions that are constantly changing and how you respond to the changes
o Social
­ Values of the day
→ Respond to changes of the day
→ Manage a crisis when it happens
­ Lifestyles
→ Adapt to the varying trends in lifestyles/times
→ Components:
­ Activities
­ Interests
­ Opinions
o Technological
­ How can we use it to make work easier?
→ Social Media
→ Analytics
→ Examples:
­ Banks
˖ Check clearing (taking picture of check)
­ Grocery Stores
˖ How do we get you out of here faster?
˖ Check-out lines
o Political/Legal
­ See the changes coming and adapt
­ Respond to rule changes
o Economic
­ How does everything change when the economy changes?
­ Pricing changes
Definition
• Level I – Market Analysis of marketing stategy framework
Term
­ Criteria for Effective Segmentation
o Understand that there’s a segment of the market that you identify with
­ Who will you sell to?
­ Identifiable
→ Identify where customers are
­ Accessible
→ Are those customers reachable?
­ Distribution
­ Promotions
­ Substantial
→ Is the population big enough?
­ Responsive
→ Will they be responsive?
o Segmentation
­ Identify different groups (segments) within your customer base
­ Targeting
o Mass Marketing
­ One message appeals to everyone
o Multi-Segmentation
­ Multiple segments in a population
­ Wal-Mart (3 segments)
→ Low-income
­ Buy everything from Wal-Mart, don’t mind if it isn’t brand name
→ Low/Middle Income
­ Prefer a brand
→ Everyday Shopping
o Niche
­ Targeting a very specific niche of the population
­ Positioning
o How are you going to position the product as a company?
o Attributes
o Benefits
o Communication of Value
o Mountain Dew
­ Positioned their image from a “country” drink to an extreme lifestyle
­ Changed packaging/campaign
→ No change in ingredients, etc.
o Motel 6
­ Follows Segmentation, Targeting, Positioning
­ Value was greatly increased
o Motorola
­ Phone was old and came out with RAZR
­ Now they are back with a new “RAZR” idea

→ What are the two major things customers want from a restaurant?
• Customer Service
1 – check to come in a timely fashion
2 – want check to be accurate
→ Yamaha Piano
• Customer Service
­ Service after the sale
• Promise Lifetime Warranty
­ How are they going to guarantee a lifetime warranty?
o Crew of 2/3 men from Japan to US to provide services to Yamaha customers
o Tuning, fixing, etc.
Definition
• Level II – Strategy Development of marketing strategy framework
Term
­ Marketing Mix
o When somebody in the business look at 4 factors that make up the marketing mix
o 4 P’s:
­ Product (service)
­ Price
→ Low every day, luxurious, etc.
­ Place (distribution)
→ How do you get it from the manufacturer to the consumer
­ Promotion
o Be able to manage the 4 P’s
o Some say there should be a fifth P (people)
­ Marketing 4 P’s
o Products
­ Categories:
→ Convenience
­ Very simple, everyday products
­ Not a big decision when bought
˖ Water bottle, medicine, etc.
→ Shopping
­ Compare prices to competitors
­ You need these products
˖ Household Products (microwave, toaster), Laptop, TV, etc.
→ Specialty
­ You choose that one distinctive category (niche)
­ Specialty Stores
­ Price is going to be a little bit higher
­ Luxurious products
­ Name brand matters
˖ William Sonoma
˖ Pandora
→ Unsought
­ You thought you would never need it
­ Company that makes it easier to purchase will win the client
­ Marketers need to make the search for that as easy as possible
˖ Insurance, ear-correcting products
o Price
­ Strategy
→ Price Skimming
­ When you set the price as high as you can (in fairness), as long as you can, until the competition catches up with you
→ Penetration Pricing
­ Whenever you lower the price to a substantial amount to be able to get product out there, grab a little market share, get customers to try the product
˖ Too cheap will possibly decrease value (quality perception)
˖ Once they secure enough market share they can increase prices
→ Status Quo
­ Find out what competitors’ prices are and adjust your prices to that
o Place
­ Where are you going to locate your business?
­ How are you going to get that product to the hands of the consumers?
­ Customers decide on a product based on convenience
→ China
­ Gets all products distributed quickly, efficiently and effortless
o Promotion
­ How are you going to communicate with the consumer?
­ Advertising
→ TV
­ TV Spots/Time (2pm-4pm)
­ When is the audience tuning in?
→ Radio
­ Pronounced dead but revived
→ Newspaper
­ Sports Illustrated – big subscriber bas
→ Circulars, Direct Mail, Billboards
­ Most money is spent on direct mail
­ Small businesses use direct mail
­ Billboards
˖ If it’s in right location, with right traffic count and if traffic compromises of your targeted consumers
Definition
• Level III – Implementation of marketing stategy framework
Term
• 4 Phases
­ Introduction
o Introducing product to the consumer
o New, unseen by consumer
­ Growth
o Capture Market share
­ Maturity
o Product becomes well known commodity
­ Decline
­ Extension*
o Not always occurs
o When a product is renewed, innovated, or changed to revive its image
• Both price and promotion are constantly at work during the product life cycle
• Price
­ Is the price going to be high, low, or status quo
o Introduction price
• Promotion
­ What type of advertising will you use?
o TV, buzz marketing, billboards, etc.
Definition
Product Life Cycles
Term
-packaging
- warranty
-service after sale
-Brand
Definition
What are the components of a product?
Term
­ Important for the consumer’s perception of product
­ Functions:
o Contain/Protect
­ Make sure product will be protected from factory to consumer
o Theft
­ Customers steal products
o Recyclable
o Promotion
Definition
• Packaging
Term
→ Two Purposes:
˖ Informative
• Instruction
­ How to use the product
­ Clean/clear
­ Bilingual
­ Can generate enormous revenue depending on product
­ Monopoly
→ During Depression, it was a hit due to easy instructions
• Construction
­ Quality is seen in construction
• Nutrition
­ Nutritional value
­ FDA required
­ Campbell’s Soup
→ Progresso has gained competitive advantage over Campbell’s because they lowered sodium
• Reduce Cognitive Dissonance
­ Self-doubt on purchase
­ Some shoppers feel regret after buying a product
­ To alleviate cognitive dissonance, label provides comfort
˖ Persuasive
• Persuade customer to purchase good or service you have
Definition
­ Label
Term
­ Size
→ Red Bull can size was the first of its kind
→ Monster came out with bigger than big size
­ Color
→ Color serves as a source identifier
→ Red shoe with red sole became a huge hit
→ Coca Cola – red / Pepsi – blue
→ UPS – brown / FedEx – orange
­ Smell
→ Car industry – ‘New car smell’
­ Sound
→ Harley
˖ Targeting a new segment of the market
˖ New bikes will not have the “roar”
→ Sun Chips
˖ Package was so loud that the bag was too noisy for the customers
→ Audio-Logos
˖ Whenever you can think of those notes that define a product
˖ Monday Night Football, McDonalds
­ Taste
­ Coca-Cola – Dasani
o Coca-Cola took too long coming up with the Dasani packaging and los market advantage
o Label – tried to make bottle look like its own thing separate from the Coke bottle and shade it with blue
­ Marlboro Light
o People choose Marlboro Light over other cigarettes because they like the packaging
­ Mints
o Mints were always packaged into a roll until Altoids came up with the tin can packaging, making it look “better”
Definition
packaging size, color, smell, sound etc examples
Term
­ Significant part of a product
­ Adds value to the product
­ Types
o Implied
­ When you buy a product, the product is supposed to be good
o Written
­ If anything breaks within time limit, you get product fixed or get a new one
­ Chrysler
o Customers hate Chrysler because it is unreliable
­ K-Car – sold the car with a 10-year/10,000 mile warranty
Definition
• Warranty
Term
­ Customers want their products to be repaired if something happens to them
Definition
• Service After Sale
Term
• 3 Objectives:
­ Identification
o A way to be able to be identified by brand characteristics
o McDonald’s golden arches
o Nike’s swoosh
­ Repeat Sales
o Consumers like a product and become loyal to a brand because they are comfortable with it
o Try to get customers to buy again
o Toms Shoes
o Nike
­ Introduce New Products
o Reaching a point where consumers get so comfortable with brand that they are willing to try brand’s new products
o Nike
­ After creating their brand with tennis shoes, Nike is doing golf clubs
o Toms Shoes
­ After making a great impact in shoes, Toms introduced sunglasses
→ Focus groups – research method companies use this to learn about their products from outside perspective
Definition
• Brand
Term
• Position
­ Communicate to customers the message that they really want to convey
• Affiliation
­ Critical part of branding
­ Who uses the same product you use?
­ Use a product you wouldn’t mind being seen using
­ Affiliations you have matter in your brand
• Personality
­ An icon that represents the values that the company portrays
­ Tom Bodett and Motel 6
o A faceless voive that you trust just by listening to it
• Motel 6 & Econo Lodge
­ Motel 6 was a leader in the business, but didn’t enforce strategy
­ Econo Lodge was a simple, economical place for business people to stay during business trips
­ Focus Group
o A group of people (6-8) to get a feel of what people are thinking
o Motel 6 was becoming unsafe and used for “short” periods
o Found out that many wealthy people also stayed in motel
o Customers were careful with their money
Definition
Re-branding Strategies
Term
• How you as a consumer go about making a purchase
• Persuasion
­ The conscious attempt to modify or influence the decision of a consumer and move them to a predetermined goal
­ “If you don’t want to be converted, don’t go to the revival”
o If you don’t want a new car, don’t go to the dealership
o Think about how other companies want you to “go to the revival”
­ Scale
o Lost (-4) ------ Loyal (+4)
o Try to figure out using experience or research to find out where they fall in the continuum
­ Time – How much time do you have available (is it a quick sell?)
­ Appeals:
→ Logical (numbers, statistics, proof, information)
→ Emotions
→ Credibility (are you believable?)
­ In your attempt to persuade, as hard as you push, you’ve got to make sure that you don’t ever offend the person
o Harley Davidson
­ Offended
Definition
Consumer Decision Making Process
Term
-Need Recognition
- Information search
-Evaluate alternatives
-Purchase
-Post Purchase Behavior
Definition
5 steps of consumer decision making processes
Term
o Marketer’s job is to make a consumer aware there’s a need that is unmet
o Consumers recognize that there’s something missing and want to fill that need
o Maslow***
Definition
­ Need Recognition
Term
o Consumers want information on the products they’re going to buy
o Level of involvement changes on the level of risk
o Types:
­ Internal
→ Consumer has experience on products
­ External
→ Consumer has no experience with that product
o 3 ways to gather external information:
­ Personal
→ A decision needs to be made, level of involvement is moderate to extensive
→ Family/Friends
˖ Reviews from people close to you
→ Opinion Leaders
˖ Person who shares your taste and you admire their living
→ Celebrity Endorsers
˖ Boost sales
˖ Change perception of product
˖ Uggs – Tom Brady
­ Uggs for men
˖ Ray Ban – Tom Cruise in Top Gun
→ Word of Mouth
˖ Sneezing (Hollywood Term)
­ Idea of sneezing that when you sneeze, everybody around catches it
→ Buzz Marketing
˖ Concept some companies use when launching a new product
˖ Companies give new products to a predetermined group of opinion leaders for the purpose of the opinion leaders using the product and hopefully spreading good word of mouth
˖ Ethical Concern
­ Share “true” feelings about product
˖ Vespa
­ Converted mopeds into a popular product
­ Commercial
→ The biased source
→ Internet, TV, Radio, Magazines, Newspapers
­ Public
→ The unbiased source
→ Consumer Reports (reviews)
­ How do you separate from the Clutter? (“Junk”)
→ Unique Selling Proposition
˖ Believable, desirable, advertising appeal that is going to separate you from competition
˖ Volvo – Safety
­ Sell the idea that they are the safest car on the road
˖ Toothpaste – Rembrandt
­ Whitening toothpaste
­ Evoked Set
→ The final set of considerations before making a decision
Definition
­ Information Search
Term
o Making a decision means nothing if you don’t act on it
Definition
­ Purchase
Term
o What happens after the sale
o If you are unhappy after the sale
­ You tell everyone not to use it
­ You never buy it again
o You never use it
­ You bought it on impulse
­ You won’t buy it again
­ Won’t become a repeat customer
o Cognitive Dissonance
­ You return the product
­ Ways to reduce cognitive dissonance:
→ Seek approval from someone else
→ Think about the attributes that make the product good
Definition
­ Post Purchase Behavior
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