Module 4: Marketing (Lectures 1-3) Flashcards
(155 cards)
1
Q
What is marketing?
A
Marketing is the process of creating value for customers and building strong customer relationships in order to capture value from customers in return.
2
Q
What were the three objects Hopelain showed in the first lecture that were kinda meh? What made the items more appealing?
A
A cup, golf club, and a blue gift box. The items were made more appealing when they were branded: a Starbucks cup, a Callaway golf club, a Tiffany blue box.
3
Q
What are the two things that marketing touch points do?
A
- Shape impressions.
2. Build relationships.
4
Q
What are the five things typically thought of as marketing touch points?
A
- Reputation
- Advertising
- Price
- Community, Other Users, Spokespeople
- Name, Logo and Characters
5
Q
What are the seven things Hopelain lists as other touch points?
A
- Word-of-mouth (WOM), Reviews
- Post Purchase Services
- Purchase Experience
- Product Distribution/Availability
- Product Experience (Quality)
- Pop-up Shops
- Website
6
Q
In reality, marketing is relevant anywhere…
A
customer perceptions are shaped.
7
Q
How did Nike build relationships with its customers through a touch point?
A
Its running app: Nike + Run, a place where customers could track their progress, learn about fitness, and connect with the brand and one another. Also offered NIKEPHOTOiD in partnership with Instagram to enable consumer creation of sneakers inspired by Instagram photos.
8
Q
How many downloads with Nike + Run experience?
A
50 million
9
Q
What is the “network effect”?
A
The app Nike + Run increases in value as more people use it.
10
Q
By creating new opportunities to interact with consumers and building new touch points, Nike stays top-of-mind with ___ consumers.
A
digital-savvy
11
Q
How did Starbucks build relationships with its customers through a touch point? How does it work?
A
Its order app: Starbucks Barista, a Siri-like virtual assistant for remote ordering that works with Alexa.
How It Works: A Starbucks bot sends the order to a nearby store where an employee makes the drink and the user picks it up – no waiting in line to order or pay. Algorithm tracks orders and recommends tailored offers
12
Q
How did Starbucks’ app strengthen its relationship with digital-savvy customers?
A
It created a new way to deliver value to consumers leveraging new technologies
13
Q
How did Nike’s app strengthen its relationship with digital-savvy customers?
A
It created a new opportunity to interact with consumers.
14
Q
How did Amazon build relationships with its customers through a touch point? How does it work and what are the two benefits discussed in lecture?
A
Amazon kiosks at Kohl’s
15
Q
How do Amazon kiosks at Kohl’s work?
A
The kiosks sell Amazon products (e.g., Echo or the Kindle) in 82 Kohl’s stores. These kiosks are run entirely by Amazon. For the Amazon returns process, Kohl’s own employees do the work.
16
Q
How does having Amazon kiosks at Kohl’s help both brands?
A
Having Amazon merchandise helps draw new customers to Kohl’s stores. Being located inside Kohl’s makes it easier for current Amazon customers to bring back unwanted items.
17
Q
Marketing starts with…
A
Knowing the customer.
18
Q
Knowing the customer includes knowing the customer’s…
A
- Wants & Needs
- Hopes & Attitudes
- Expectations
- Perceptions of Alternatives
- Behaviors & Preferences
19
Q
What is a market?
A
A group of end users with a need and desire and the means to fill it
20
Q
What were the 5 examples of Starbucks’ market given in lecture?
A
People who need or want…
- A jolt of caffeine
- To get out and take a break
- A convenient meeting or study place
- A reliably clean bathroom
- A safe pit stop with the kids
21
Q
What is a value proposition?
A
How well a product or service meets customer needs/wants. Understanding market needs helps marketers articulate how their capabilities enable them to offer products or services that address customer needs.
22
Q
What are the three questions that value proposition answers?
A
- Who are we? The capabilities or special expertise we bring to bear
- What do we do? The key aspects of our offering
- Why does it matter? The customer need we address and the end benefit we provide
23
Q
What is customer segmentation?
A
Grouping customers so that marketers can use the same messages and media across large numbers of them without sacrificing relevance or efficiency
24
Q
What is the core idea of customer segmentation?
A
The more you know about the people you’re targeting, the better equipped you are to develop product/services and messaging to resonate more effectively with those key audiences.
25
What are the four bases of segmentation?
1. Demographic (age, gender, income, zipcode)
2. Needs (pain points, challenges)
3. Psychographic or attitudinal (personality traits, lifestyle, interests)
4. Behavioral (purchase frequency, repeat purchase habits, channel preferences, average spend/order)
26
What is included in demographic segmentation (4)?
Age, gender, income, zipcode
27
What is included in needs segmentation (2)?
Pain points and challenges
28
What is included in psychographic or attitudinal segmentation (3)?
Personality traits, lifestyle, interests
29
What is included in behavioral segmentation (4)?
Purchase frequency, repeat purchase habits, channel preferences, average spend/order
30
Apply the concept of customer segmentation to Starbucks. What is the demographic, need, psychographic attitudinal element, and behavioral element?
Demographic: People with kids, people who work
Needs: A jolt of caffeine
Psychographic or attitudinal: A break in their day
Behavioral: A jolt of caffeine
31
The Avengers superheroes are similar in many ways. They may be in the same segment if you're offering therapy for superheroes, but not if you were offering tune-ups for equipment. What is the key takeaway?
How marketers group customers for marketing depends on what they are offering.
32
What kind of segmentation is Cambridge Analytica an example of?
Psychographic segmentation and micro-targeting. "We find your voters and move them to action."
33
What is the recent controversy regarding Cambridge Analytica and Facebook?
The Illinois Attorney General's accusations include the misappropriation of data that had a significant influence on the outcome of the 2016 US presidential election.
34
___ ___ underlie marketing.
Customer insights
35
What are the types of information that lead to customer insights (5-7)?
Demographics, psychographics, wants & needs, usage behavior, decision drivers & barriers
36
What are two questions associated with decision drivers and barriers?
1. What is important? (e.g., 24/7 availability)
| 2. What gets in the way? (e.g., price)
37
What are sources of customer insights (6)?
Internal sources
- Employees (sales, customer service)
- Sales data
External sources
- Customer advisory boards
- Third party/syndicated research
- Market research
- Social media
38
Customer insights can be ___.
game-changing
39
How did Dove use customer insights to be successful?
In 2000, Dove was earning just $200 million in revenues. Then, they conducted research, surveying over 3000 women in 10 countries to understand their interests, priorities, and self-image. They found that only 2% of women felt beautiful. In 2004, Dove launched the Real Beauty Campaign. It was provocative by featuring REAL women who were outside the stereotypical norms of beauty.
40
Dove's campaign is a great example of the ___ ___ ___.
Societal marketing concept
41
How is Dove's campaign a great example of societal marketing concept?
Dove incorporated consumers' wants, the company's requirements, and consumers' and society's long-run interests.
42
In 2006, Dove extended the marketing campaign from print to web in the "Evolution of Beauty." How? What was the result?
Leveraged the just-launched YouTube channel by putting out a video -- an instant viral sensation! The campaign won advertising awards and earned exposure for the brand.
43
Tell me about the 2013 Dove's Real Beauty Sketches.
It was initially launched in the United States, Canada, Brazil and Australia. It was expanded and uploaded in 25 languages. It is now the #3 most shared video ever, had 144 million views within the first month of release, and is the #1 most viral ad video ever.
44
___ drives marketing investment.
Strategy
45
Strategy drives ___ ___.
marketing investment
46
What is product/service strategy?
How to grow a product or service through product extensions, innovation and geographic expansion.
47
What are insights?
Answering these questions: What do customers care about? What can we do to address those concerns?
48
What is investment?
Bringing a product to market in ways that are believable and relevant
49
___ → ___ → ___
Strategy → Insights → Investment
50
Dove's "Evolution of Beauty" is more than just an ad campaign. How so?
Dove dabbles in CSR. They invest in programs that bring Dove's commitment to life.
They have partnered with the Boys and Girls Club, Girl Scouts, and Girls Inc. since 2004. These organizations help tween and teenage girls fight online bullying and gain self-esteem and leadership.
The Dove Movement for Self-Esteem started in 2010 to inspire moms and mentors to talk to girls about beauty, confidence and self-esteem. In 2018, the Self-Esteem project expanded beyond structured workshops delivered by adults -- to take education content direct to young people on a scale never seen before.
51
The goal of marketing is to...
create value for business by creating value for customers.
52
How does marketing create value for business?
By creating value for customers.
53
Successful marketers can market effectively by doing these 6 things.
1. Understanding customers deeply
2. Developing a compelling value proposition
3. Segmenting customers without violating their privacy
4. Identifying targets and addressing them through multiple touch points that are relevant as well as efficient
5. Creating favorable customer impressions and emotional connections to their brands and products or services
6. Applying the societal marketing concept to design and invest in programs that deliver winning customer experiences
54
What is conversion?
Moving potential customers from each stage of the decision process to the next
55
Marketers strive to overcome ___ where customers are getting stuck and drive conversion as far as possible.
blockages
56
What are the steps in the marketing funnel/customer decision making process (DMP)?
Awareness → Consideration → Trial → Repeat → Loyalty → Advocacy
57
Is the marketing funnel a linear process?
lol no
58
What is a multi-touchpoint attribution (MTA)?
Determines the value of each customer touch point leading to a conversion:
- Who to give credit for the conversion
- How to allocate future spend to acquire new customers
59
What does multi-touchpoint attribution require?
Knowing the touch points along the customer journey.
60
What is the classic function that comes to mind when most people think of marketing?
Creating awareness
61
What are the three keys to Super Bowl Ad success?
1. Create awareness and brand linkage
2. Message clarity
3. Include a clear and responsive "call-to-action"
62
Which of these is not primarily aimed at generating awareness?
A. Advertising
B. Sponsorship of events or individuals
C. Loyalty programs
C. Loyalty programs
63
How can you figure out awareness of brands?
By asking potential customers...
1. Unaided awareness: Which brands of product/category have you heard of?
2. Aided awareness: Which of these brands have you heard of?
64
What happens in the consideration and trial steps?
These steps aim to motivate consumers to action.
65
What did North Face do for its consideration and trial steps?
In December, North Face piloted used AI online to create more relevant product recommendations to generate higher conversion and bigger orders.
By asking coat shoppers where and when they plan to use the coat, North Face found that
- AI tool-using shopper convert (from browsing to buying) more often
- Shoppers using AI tools place average orders that are 14-18% higher than those who didn't use AI tools while shopping
66
In addition to product recommending AI, which of these other tactics is most clearly aimed at getting consumers to consider/try their brands?
A. Banner ads
B. Coupons, sales, discounts
C. Corporate Social Responsibility Initiatives
A. Banner ads
67
How can you determine the success of your consideration and trial steps?
By asking potential customers...
1. Consideration: Which of the following brands of product/category have you ever considered buying?
2. Trial: Of those considered, which of these brands have you ever used?
68
During the repeat, loyalty and advocacy steps, marketers' goal is to...
motivate customers to buy again... and again... and ideally to tell others about the brand.
69
What are three kinds of tools for creating repeat buyers and fans?
1. Loyalty program benefits
2. Company-sponsored content
3. Consumer-generated content
70
Which of these is NOT a tactic companies use to get consumers to buy or advocate for their brands?
A. Loyalty programs
B. Publishing customer ratings and reviews on their website
C. Magazine advertising
C. Magazine advertising (?)
71
How can you measure loyalty?
By asking...
- Repeat: How many of product brand have you bought in the last year?
- Loyalty: Which brand do you buy most often?
- Advocacy: Would you recommend/have you recommended product brand to a friend? On social media?
72
What are the 4 P's?
Product, Price, Place, Promotion
73
What do the four P's do?
Drive conversion -- they are the components of an integrated marketing plan.
74
What are the four P's also called?
The Marketing Mix
75
There are four key questions to evaluate funnel conversion performance. What are they?
1. List all of the ___ you have seen or heard of. (No names provided.)
2. Which of these ___ have you ever heard of, even if you're not very familiar with them? Please include any you may have typed in the previous question. (List brands.)
3. Which of these ___ have you ever used?
4. Which of these ___ do you currently use?
2 → 3: converting awareness into trial
3 → 4: converting trial into current use
76
What is the conversion from awareness to trial called?
Acquisition conversion
77
What is the conversion from trial to current use called?
Retention conversion
78
How do you calculate acquisition conversion?
Ever Used divided by Aided Awareness
79
How do you calculate retention conversion?
Current Use divided by Ever Used
80
How does the marketing mix come to play in Capsim?
Price
- $35? Higher or lower?
Product
- Variety of sensor types based on speed, reliability, and size.
Promotion
- Advertising
- Events
Place
- Direct sales force
- Other retailers
81
What are the 7 components of Product?
1. Variety
2. Quality
3. Design
4. Features
5. Brand name
6. Packaging
7. Services
82
What are the 5 components of Price?
1. List price
2. Discounts
3. Allowances
4. Payment period
5. Credit terms
83
What are the 7 components of Place?
1. Channels
2. Coverage
3. Assortments
4. Locations
5. Inventory
6. Transportation
7. Logistics
84
What are the 4 components of Promotion?
1. Advertising
2. Personal selling
3. Sales promotions
4. Public relations
85
The Apple Watch experienced ___ orders on Day 1 and ___ order in the first week!
1 million, 2.3 million
86
Apple Watch overtook the ___ category.
1 million
87
The customer decision process describes...
the customer's path to purchase.
88
The customer's path to purchase starts out ___ at the beginning than it is at the end -- that's why it's called a ___.
wider, funnel
89
Different marketing tools and touch points are effective at...
different funnel stages to drive customer conversion.
90
Marketers use data about the marketing funnel to understand where customers are ___ ___ in the ___ ___ ___ ___.
getting stuck, customer decision making process
91
Acquisition conversion measures...
how well the brand converts awareness into trial.
92
Retention conversion measures...
the brand's effectiveness at converting trial into repeat usage.
93
What is the key takeaway about the 4 P's?
The 4 P's are the tools marketers use to drive conversion across the funnel. They are the components of an integrating marketing plan and comprise the marketing mix.
94
What are the two customer relationship goals?
1. Increase the brand's share of customer spending in the category.
2. Increase the total combined customer lifestyle values of current and potential customers.
95
What are some examples of shares of customer spending?
For restaurants and grocery stores, it's the share of stomach. For car companies, it's the share of garage. For car services, it's the share of miles and local trips.
96
What are the three components of customer lifetime values?
1. Average spend on your brand
2. Average customer lifespan with your brand
3. Unit of time
97
What are the four customer relationship groups?
Butterflies, True Friends, Strangers, and Barnacles
98
What defines Butterflies?
High potential profitability + Low loyalty
Have a few brands they choose from based on something other than price
99
What defines True Friends?
High potential profitability + High loyalty
Prefer one brand for category purchases or services and generally pay full price
100
What defines Strangers?
Low profitability + Low loyalty
Have no preferred brand and choose strictly on price
101
What defines Barnacles?
High loyalty + High profitability
Have a preferred brand and only buy when there is a deal or special offer
102
How should marketers cater to butterflies?
Invest to get fair share -- stay in the rotation
103
How should marketers cater to true friends?
Invest to turn customers into advocates for the brand
104
How should marketers cater to strangers?
TRICK QUESTION! They shouldn't. Avoid investing, make money on every transaction
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How should marketers cater to barnacles?
Invest only to move them up!
106
What is customer lifetime value?
The dollar value of a customer relationship
107
What does customer lifetime value do?
Encourages firms to shift their focus from quarterly profits to the long-term health of their customer relationships
108
How do you calculate customer lifetime value?
Average spend on brand * Average customer lifespan with brand * Unit of time (weeks, months, years, etc.)
109
A more sophisticated calculation of customer lifetime value considers what 2 things?
1. % of customers who repurchase
| 2. Discount rate for determining the present value for future cash flows
110
Walk through the strategic planning process.
Define the organization mission → Set organization objections and goals → Design the organization business portfolio → Plan marketing and other strategies
111
Defining the organization answers what two questions?
1. Why do we exist?
| 2. How do we make our customers' lives better?
112
Setting organization objectives and goals answers what two questions?
1. What do we do?
| 2. How will we measure success?
113
Designing the organization business portfolio answers what two questions?
1. What businesses are we in?
| 2. Where do we place our bets?
114
Planning marketing and other strategies answers what two questions?
1. Which customers will we serve and how?
| 2. What will be our marketing mix?
115
Organization mission is becoming increasingly important. What is important to remember about TOMS and Zappos?
Both sell shoes and have clear, very different missions. Neither mission is better. The point is to have one and make sure your people know it!
116
What does SMART stand for?
Specific, Measurable, Aggressive, Realistic, Time-bound
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When coming up with organization objectives and goals, we should keep ___ in mind.
SMART
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What should we keep in mind when we set organization objectives and goals?
The end! Ask yourself, "What are we trying to achieve?"
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What is better when setting company objectives: fewer or more?
Fewer
Steve Jobs once said, "People think focus means saying yes to the thing you've got to focus on. But that's not what it means at all. It means saying no to the 100 other good ideas that there are. You have to pick carefully. I'm actually as proud of many of the things we haven't done as the things we have done."
120
What does the BCG Growth-Share Matrix do?
Informs marketing and other investment priorities on future growth potential and relative market share.
121
What are the four types of customers according to the BCG Growth-Share Matrix?
Stars, Question Marks, Cash Cows, Dogs
122
What defines Stars?
High Market Growth Rate + High Market Share
123
What defines Cash Cows?
High Market Share + Low Market Growth Rate
124
What defines Dogs?
Low Market Growth Rate + Low Market Share
125
What defines Question Marks?
Low Market Share + High Market Growth Rate
126
How should marketers cater to stars?
Aggressive marketing investment to build sustainable advantage
127
How should marketers cater to question marks?
Focused marketing investment to increase share and become a STAR
128
How should marketers cater to cash cows?
Marketing investment focused on maintaining relevance
129
How should marketers cater to dogs?
TRICK QUESTION! There should be minimal or no marketing investment.
130
What does the Product/Market Expansion Matrix do?
Helps categorize growth opportunities and inform marketing investments, and helps sequence the pursuit of opportunity
131
What defines market penetration?
Current Markets/Customers + Current Products
132
What defines market development?
New Markets/Customers + Current Products
133
What defines product development?
Current Markets/Customers + New Products
134
What defines diversification?
New Markets/Customers + New Products
135
How do marketers perform market penetration?
Grow by selling current products to more people like current customers
136
How do marketers perform market development?
Grow by selling current products to a different type of customer
137
How do marketers perform product development?
Grow by developing and selling new products to more people like current customers
138
How do marketers perform diversification?
Grow by developing and selling new products to a different type of customer
139
What is the pursuit of opportunity as defined by the Product/Market Expansion Matrix?
Market penetration → Product development or market development → Diversification
140
Explain the pursuit of opportunity as defined by the Product/Market Expansion Matrix for Amazon.
Market Penetration: Continuously refining the user experience to acquire more customers like its current ones → Product Development: Continuously introducing new products like Kindle, Alexa, Echo and Dash to sell more to current customers | Market Development: Expanding geographic footprint beyond the 6 countries (US, Mexico, UK, Canada, Germany, and Japan) that represent 95% of revenue; investing heavily in India and China → Diversification: Creating completely new businesses like Amazon Web Services
141
Explain the pursuit of opportunity as defined by the Product/Market Expansion Matrix for Starbucks.
Market Penetration: Continuously refining the customer experience to attract more customers to its core offering → Product Development: Roastery, seasonal favorites, new flavors and menu items to cross-sell to current customers and grow share of wallet | Market Development: Opening Roastery & Tasting Rooms in New York, Shanghai, Tokyo, Milan, and Chicago → Diversification: ?
142
Marketing relies on ___ departments to deliver the customer experience and to shape customers' impression of the brand.
other
143
Marketing relies on other departments to deliver the ___ ___ and to ___ ___ ___ of the brand.
customer experience, shape customers' impression
144
```
Which of these departments delivers Starbucks cafe customer experience?
A. Retail Store Operations
B. HR
C. Finance
D. Supply Chain
```
TRICK QUESTION: They all do!
145
Retail operations affect ___ ___.
brand impressions
146
___ ___ affect brand impressions.
Retail operations
147
How do retail operations affect brand impressions (7)?
1. Store hours
2. Merchandise presentation
3. Service
4. Product quality
5. Bathrooms
6. Store environment
6. Wait times
148
___ affects brand impressions.
HR (???)
149
Given customers' differing levels of predict loyalty, potential profitability, and expected lifetime value, marketers...
invest differently in building relationships with them.
150
Marketing plays a key role in the strategic planning process, serving as...
the voice of the customer for the rest of the organization.
151
Organization objectives and goals should be ___ and ___.
focused, SMART
152
The BCG Portfolio Growth-Share Matrix helps do what do things?
1. Analyze an organization's businesses
| 2. Informed its marketing and other investment priorities
153
The Product/Market Expansion matrix accomplishes what two things?
1. Articulates the main pathways to growth
| 2. Underlies marketing's priorities
154
To accomplish its priorities, marketing needs help to do what?
Build favorable customer perceptions and experiences at key customer touch points.
155
What does building favorable customer perceptions and experiences at key touch points include (2)?
1. Collaboration across departments
| 2. CEO and other senior executive advocacy
