Mizzou Marketing 3000 Exam 1
What is the definition of Marketing?
The study of exchange
2 basic requirements for exchanges
2+ parties and Communication
The Marketing Concept
Achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do
When a new product is introduced and it fails because no one wants it, what do we know wasn’t practiced?
The Marketing Concept
What is the first task in the Marketing Concept?
Discovering consumers’ needs using information about those needs
What is the second task in the Marketing Concept?
Satisfying consumer needs
What are the 5 steps in the Marketing Concept’s cycle?
1) Potential consumers: the market. 2) Information about needs. 3) Discover consumer needs. 4) Satisfy consumer needs using the right combo of the Marketing Mix. 5) Create goods, services, and ideas.
Marketing Mix/4 P’s
A blend of Product, Place, Promotion, and Pricing strategies
What is the most important of the 4 P’s?
When does Price matter?
When goods are equal in quantity
What are the 4 benefits of a product?
Functional, Social, Personal, and Experiential
Examples of Functional Benefit
A hammer, car, food, pen, calculator
Examples of Social Benefit
Meeting friends, business partners: cellphones
Examples of Personal Benefit
Feeling good about learning or excelling: gym, hiking, non-profits
Examples of Experiential Benefit
Having fun, joy of learning: Study-abroad, football games
What are the 4 Costs of a product?
Monetary, Temporal, Psychological, and Behavioral
Examples of Monetary Cost
Tuition + book fees, money
Examples of Temporal Cost
Time spent in class/studying
Examples of Psychological Cost
Stress studying for exams, listening to instructors
Examples of Behavioral Cost
Expending energy walking to class/getting sick of lectures
What is the key of Analyzing the Market Environment?
Capturing new trends
What factors discussed in class might affect NFL + Chinese restaurant industries in next 5 years?
Yahoo/Apple TV, concussions
What are the examples from class of Demographic and Technology points in a Marketing Environment Analysis Framework?
Latino and Folger’s Coffee
What does Low Intensity of Current Competitors lead to?
Higher Profitability (Only Boeing and Airbus make civilian airplanes so they are very profitable)
Example from class of few or no substitutes for a product
Examples from class of a product with many substitutes
Soft Drinks, Beer/Wine, New Technology
Examples from class of markets with high barriers to entry
Network Externalities Definition
When new member adds value to a market (software: Microsoft/Amazon)
Example from class of a low supplier power
Computer Industry-Disk Drivers
Example from class of a low buyer power
Medical Services, high number of tire manufacturers=low bargaining power of tire buyers
Sustainable Competitive Advantage Definition
An advantage versus competition that can be maintained consistently over time
What are the 3 keys to McDonald’s sustainable advantage?
Low price, Distribution, and Operational Efficiency (delivery service is best)
Examples of Market Penetration
Lowering prices, increasing distribution, increasing promotion
Example of Market Development
Opening a new McDonald’s in China
Example of Product Development
Example of Diversification
Going into a different market w/ different product
4 Market Leader (40%) Strategies
Expand Market Strategy, Expand Market, Defend Market Share, Expand Market Share
2 Market Challenger (30%) Strategies
Attack leader, Status quo
1 Market Follower (20%) Strategy
1 Market Nicher (10%) Strategy
When should a business practice Market Segmentation?
3 reason why Market Segmentation is important
Because customers in a market have: Differences in buying habits, Differences in way good/service is used, and Different motives for buying. Marketing focuses on and serves/exploits individual differences
2 things that Marketing Segmentation allows managers to do
Visualize prospective customers in designing a marketing mix. Concentrate their resources on only one/few market segments
Example from class of Differentiated Marketing
Example from class of Individualized Marketing
Nike ID website
In Marketing Segmentation, how must customers respond?
React positively to firm’s offering. Move toward the firm’s products and services. Accept the firm’s value proposition
How is Statement of Membership important to Category Membership?
For new products, To show that brand belongs, Needs to be communicated
What is the highest competitive-based position called?
What is the lowest competitive-based position called?
Specific brand name
Example from class of a small brand that finds a niche?
Examples from class of brands that stress one benefit in promotion?
Trader Joe’s-affordable organic food. Febreeze- good smelling air freshener
Where do the most profits come from?
80% of profit comes from the top 20% of customers (represents top 1% of market)
What must you do when expressing a point of interest?
Stick with one benefit to not confuse consumers
Goal Positioning Definition
Matching people w/ certain goals up to a product
5 personalities that fit brands
Sincerity, Excitement, Confidence, Ruggedness, Sophistication
Example from class of Laddering Up
Dove Real Beauty Campaing
Example from class of Laddering Down
Ford F150 (tough/rugged, powerful engine, 6.4 liter diesel)
Syndicated Research Definition
Research collected/sold by 3rd parties
Non-recurring research Definition
Research that companies have to collect themselves
Example from class of databases
Las Vegas casino slot club members, Samsonite product registration cards, Kraft General Foods coupons, American Express cardholder purchases, Registration for sweepstakes
Example from class of Privacy Issues in databases
Up to 2.4 million in US had data stolen from Schnuck’s database in 2012
5 steps in the Marketing Research Process
1) Defining the problem and research objectives. 2) Developing the research plan. 3) Collect the information. 4) Analyze the information. 5) Present the findings
Example from class of Exploratory Research
Hire a focus group
Description from class of Descriptive Research
“How important is a certain service for a product?”
What primary data research approaches are considered the same?
Observational, Focus-group, Survey, and Behavioral
What is the most common form of Primary Date Research?
What is the cost of Surveys?
Surveyors may not tell whole truth
What are 3 types of Experimental primary data research approaches?
Lab Experiment (mock trial), Field Experiment (video taping actual interactions), and Test Market (experimenting in several markets)
Why is Secondary-Data the best?
It is always going to be cheaper and easier/quicker to use,
Which source of date should be used first?
How can Marketing Research be scientific, using multiple methods, and is ethical?
Objective, have valid data,, and should never be used as a trick for selling products to consumers
What is Market Share?
Individual Product Sales/Total Industry Sales. Expressed in dollars or units
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