Untitled Quiz

Course Review Topics

• Introduction
• Marketing strategy
• Segmentation, targeting, and positioning
• Marketing research (2 lectures)
• Branding
• Products and Services
• New Product Development
• Study of concepts, large frameworks
• Early electric vehicle (EV) ads focused on education the public about the benefits of EVs - what type of advertising objective were the firms using?
• A) Reminder advertising
• B) Informative advertising
• C) Persuasive advertising
• D) Comparative advertising
• Promotion
• Advertising
• Public Relations
• Pricing (2 lectures)
• Digital marketing
• Channels
• Sustainable marketing

Consumer Rights

• Consumerism - organized movement to improve buyer rights and power.
• Traditional consumer rights:
• Right not to buy a product offered for sale
• Right to expect the product to be safe
• Right to expect the product to perform as described
• Additional consumer rights:
• Right to be well informed about product
• Protection from questionable products and services
• Right to influence products/services for quality of life
• Right to consume now while preserving world for future generations

Sampling Methods

• Probability sampling: uses random selection for fairness to improve generalizability
• Non-probability sampling: allows researchers to handpick participants based on their judgment
• Convenience sampling: quicker and easier

Pillars for a Sustainable Future (Triple Bottom Line)

• Fostering long-term economic growth without compromising social/environmental factors
• Protecting and conserving natural resources
• Ensuring community well-being

Consumer Actions to Reduce Climate Impact

• Buying more sustainable products or products with reduced climate impact
• Making more considered purchases to reduce overall consumption
• Eating different foods or traveling less
• Supporting candidates and policies with environmental concerns
• Using renewable electricity
• Purchasing electric vehicles
• Reducing online purchases to reduce carbon-related transport

Consumer Willingness to Pay More for Sustainable Products

• Consumers willing to pay more for locally-sourced, sustainable, or eco-friendly products
• Local farmers' markets
• Recycled/sustainable materials
• Eco-friendly disposal methods
• Ethically-produced products
• Willingness to pay more for lower supply-chain/carbon footprints or products from transparent, fair-trade sources

Sustainability Efforts in Business

• Industry experts evaluating sustainability effectiveness at communicating to stakeholders
• Evaluations are not highly effective
• Defining company mission in broad social terms instead of narrow product terms
• Make marketing decisions that have interest in consumers, the business, and society as a whole
• Create and deliver products with both immediate customer satisfaction and long-term benefits

Challenges Faced by Businesses Embracing Sustainability

• Sustainable products are often more expensive
• Consumers may not deem sustainable products desirable
• Skepticism about the quality of sustainability products
• Lack of ready market for sustainable solutions that solve consumer problems
• Many consumers are skeptical about sustainability claims made by businesses
• Benefits of a sustainable product may be intangible, or felt only in the long term • Highlight immediate product appeals • Create an emotional connection or emotional reward • Make the global, societal benefit personal(e.g. safe for pets).

Unilever's Sustainable Marketing

• Challenges:
• Bombarding consumers with advertising
• Promoting overconsumption
• Cultural pollution
• Solution strategies:
• Promoting mindful consumption.
• Focus on quality over quantity.
• Effective value propositions to customers.
• Better targeting.

Delivering Value Through Distribution

• Value delivery network: A network (composed of company, suppliers, distributors, and customers) to improve the system for delivering value
• Benefits of Channels
• Conflicts and strategies

Channels

• Types of channels
• Direct: Producers → Consumers
• Indirect: Producers → Wholesalers → Retailers → Consumers
• Channel length = number of intermediary levels
• Role of intermediaries: transform product assortments by producers into assortments made available to customers

Information Needs

• Trying before buying
• Advice and demonstrations
• Price and product comparison
• Customization
• Convenience
• Variety/assortment
• Immediacy of availability

Conflicts and Strategies

• Vertical conflict: Conflict between different levels in distribution channels
• Producer and distributor incentives at odds
• Horizontal conflict: Conflict between two players at the same level in a distribution channel
• Two retailers' incentives at odds

Marketing Strategies for Services

• Interactive marketing: Service quality depends on buyer-seller interaction during service encounters
• Service differentiation: Creates competitive advantage, e.g. offer, delivery, image, service quality, customer retention measured by service quality, work place culture, and employee morale

Internal Marketing

• Service firm motivates customer-contact and support service people to work as a team to provide customer satisfaction, e.g. centering the customer, hiring right people, and team effort
• Service recovery paradox: Customer satisfaction with the company improves after a service failure, e.g., a service failure is resolved effectively
• Exceeds expectations. Unlikely repeated failures.
• Example: Southwest Airlines

New Product Failure

• Insignificant “point of difference”: Example: Clairol’s Look of Buttermilk, Touch of Yogurt - Does consumer care? Is product different? What is look of buttermilk?
• Incomplete market/product definition. Example: Google Glasses - What consumer problems solve?
• Insufficient market attractiveness. Example: Air freshener
• Poor timing: Example: Nescafé Hot When You Want coffee cans - did it fit to the market? Did it have proper season?
• Flawed research: Example: Tropicana orange juice - did the research accurately capture the market?
• The trade-offs innovations demand, e.g. the gains and losses when introducing a new product

Product Life Cycle

• Product development: Find and develop a new idea
• Introduction: Product enters the market
• Profit is negligible due to high costs.
• Growth: Fast rate of market acceptance. Profits rise.
• Aggressive promotion strategy needed.
• Maturity: Profits level off due to increased competition.
• Decline: Sales fall

New Technology Adoption Timeline

• Innovators
• Early adopters
• Early majority
• Late majority
• Laggards

Segmentation and Targeting

• Geographic, Demographic, Psychographic, Behavioral
• Describe and differentiate segments of customers who are likely to respond in a relatively similar way to marketing efforts
• Benefits-based segmentation- Understand consumer preferences regarding the importance of product benefits, e.g. What do consumers want in a skin cream?
• Targeting: Strategy of evaluating segments and choosing to enter one or more; e.g., size, expected to grow, long-term potential

Brand Management

• Brand acquisition: Effective brand expansion; e.g., brand messaging across entire marketing mix
• Brand Architecture
• Branded House, House of Brands, Endorsed Brand, Sub-Brands
• Brand Extensions: Extending brand to different categories
• New product lines, e.g., different product categories of existing products, new versions, etc..
• Line extensions: Introducing a new product with the same brand name or branding for a similar customer group.
• Keep meaning relevant to avoid confusion amongst customers and to capture more of the market.

Marketing Research Stages

• Step 1: Define the problem
• Step 2: Develop research plan for data collection and analysis
• Step 3: Collect and analyze data (primary and secondary)
• Step 4: Interpret findings and make recommendations

Types of Marketing Research

• Exploratory: Identify hunches or insight; pilot study
• Descriptive: Describe composition and characteristics of relevant populations; e.g., surveys
• Casual: Identifying cause and effect between variables; e.g., experiment

Data Collection Approaches

• Qualitative:
• Focus groups: In-depth discussions, e.g., exploring perceptions/feelings
• In-depth interviews: One-on-one interactions
• Projective techniques: Metaphorical terms, e.g., sentence completion, role playing
• Observation: e.g., ethnographic research, mystery shoppers
• Quantitative:
• Surveys/cross-sectional studies, experiments

Marketing Information System

• Assess market information needs
• What information do we need?
• Develop market information:
• Internal databases, market intelligence, marketing research
• Analyze and use information