Module 4: Marketing (Lectures 4-6) Flashcards
(117 cards)
1
Q
What five fundamental questions does marketing strategy answer?
A
- What is our offering? (Product/Service & Competition)
- Who will buy it? (Target & Need)
- Why will they choose it? (Marketing Mix / the 4 P’s)
- What messages should be communicated? (Messaging)
- What does success look like? (Goals, Objectives, Milestones)
2
Q
What is positioning (4 definitions)?
A
- A distinctive description of a product or service relative to competing offerings.
- The elements that make the offering credible, relevant and differentiated in the eyes of its target audience
- The basis for message development
- A way to focus on the organization on the category or alternatives its offering needs to displace to win
3
Q
What are the steps of a positioning framework?
A
Target → Frame of Reference → Key Benefit → Reasons to Believe
4
Q
Positioning answers what four questions?
A
- Who are we talking to? (Target: Which consumers or users can we help most? All? Come?)
- What’s the category or frame of reference? (What types of companies provide the same benefits?)
- What is the key benefit? (How do we help customers? What need do we address?)
- What makes it believable? (What do we have or do that makes our ability to deliver the key benefit credible?)
5
Q
What are table stakes?
A
Must-haves
6
Q
What are differentiators?
A
What is unique about your brand
7
Q
Table stakes and differentiators are most like…
A
order qualifiers and order winners.
8
Q
Under what positioning category are table stakes and differentiators?
A
Reasons to Believe (What makes it believable?)
9
Q
What is the general positioning framework (sentence with positioning components in it)?
A
For TARGET, xyz brand is the CATEGORY/FRAME OF REFERENCE that KEY BENEFIT because it (or course TABLE STAKES, but) is the only one that DIFFERENTIATORS.
10
Q
Why is Snapchat intriguing for advertisers?
A
For advertisers looking to reach tightly knit communities, Snapchat is an exciting new social ad platform that delivers higher engagement and conversion because only Snapchat presents personal, tiny, disappearing messages that mimic real life conversations.
11
Q
Why Kinko’s?
A
For hard-working multi-taskers based in a home office, Kinko’s is your brand office that allows you to copy, print, make signs, ship and do hundreds of other everyday business tasks, because only Kinko’s is open 24/7 and has over 4000 locations nationwide.
12
Q
Value proposition is ___ focused. Positioning is ___ focused.
A
internally, externally
13
Q
Marketing plan ___ marketing strategy.
A
codifies
14
Q
Value proposition is ___ focused.
A
internally
15
Q
Positioning is ___ focused.
A
externally
16
Q
What does the marketing plan focus the organization on?
A
Priorities
17
Q
What are the two big ideas in the marketing plan?
A
The WHAT and the HOW
18
Q
What are the 6-8 things included in the marketing plan?
A
- Executive Summary
- State of Business/SWOT
- Marketing Objectives and Issues
- Marketing Mix
4a. Strategic Initiatives
4b. Action Programs - Marketing Budget & Financial Immplications
- Marketing Milestones
19
Q
What does SWOT stand for?
A
Strengths, Weaknesses, Opportunities, Threats
20
Q
What are the internal components of SWOT?
A
Strengths and Weaknesses
21
Q
What kinds of components are Strength and Weakness in SWOT?
A
Internal - something the organization could address with enough time or money
22
Q
What are the 6 examples given in lecture of potential strengths and weaknesses?
A
- Proprietary technology
- Quality standards/awards
- Brands
- Distribution channels
- Loyalty program
- Scale
23
Q
What are the external components of SWOT?
A
Opportunities and Threats
24
Q
What kinds of components are Opportunities and Threats in SWOT?
A
External - something in the environment that affects all players
25
What are the 6 examples given in lecture of potential opportunities and threats?
1. Changing tastes
2. Changing demographics
3. Industry advances
4. Changes in government policies or regulations
5. Tax code changes
6. New distribution channels
26
Using a SWOT analysis, what are Starbucks' strengths discussed in class (5)?
1. Consistent, high quality, ethically-sourced products
2. Employee retention
3. Excellent customer service
4. Comfortable stores
5. Easy, fast checkout
27
Using a SWOT analysis, what are Starbucks' weaknesses discussed in class (2)?
1. New stores risk cannibalizing (taking sales from) existing ones
2. Low European penetration - not taken seriously there
28
Using a SWOT analysis, what are Starbucks' opportunities discussed in class (2)?
1. Rising disposable income in emerging markets
| 2. Growing consumer interest in packaged coffee, tea, and ready-to-drink beverages
29
Using a SWOT analysis, what are Starbucks' threats discussed in class (2)?
1. Coffee price volatility
| 2. Increased commitment of McDonalds and Dunkin' Donuts to coffee category
30
What do financial marketing objectives do?
Describe the effect marketing will have on the bottom line
31
What do non-financial marketing objectives do?
Include perceptual objectives believed to drive longer term value
32
What are three examples of financial marketing objectives?
1. % increase in customer's category spending
2. % increase in market share
3. $ increase in average order size
33
What are four examples of non-financial marketing objectives?
1. Increase customer satisfaction
2. Increase % of customers who see brand as innovative
3. Increase % of hiring offers accepted
4. Increase willingness to recommend
34
What is an example of a financial marketing objective for Starbucks?
Increase global same store sales from 8% to mid-double digits by 2017
35
What is an example of a non-financial marketing objective for Starbucks?
Consistently be in the Top 10 of Fortune's Best Companies to Work for
36
What are strategic initiatives?
The most important things a business needs to do to deliver the marketing objectives, usually 3-5 strategies known as "the big moves." They convey action and state what the team will actually do.
37
Too many initiatives ___ focus.
dilutes
38
List the three examples of strategic initiatives given in lecture.
1. Increase buying rate with heavy users.
2. Engage young people, especially college students.
3. Launch new, premium products and drive trial.
39
Name the financial marketing objective and the potential strategic initiative of Starbucks discussed in class.
Financial Marketing Objective: Increase global same store sales from 8% to mid-double digits by 2017 → Potential Strategic Initiative: Increase the number of transactions per store
40
What are action programs?
Precisely how the strategic initiatives will happen. Also known as "the how" or tactics. This includes specific changes in the four P's, such as pricing changes, advertising plan changes, packaging changes, and product development projects.
41
What was the potential action program discussed in class for Starbucks?
Implement Mobile Order & Pay apps to speed up the line and serve more customers
42
How do business objectives connect to marketing planning?
Business Objective → Marketing Objective → Strategic Initiatives → Potential Action Programs (4 P's)
43
What is "grow store revenue" an example of?
Business Objective
44
What is "increase same store sales" an example of?
Marketing Objective
45
What is "implement mobile and order pay apps to speed up the line and serve more customers" an example of?
Potential Action Program (Service/Product P)
46
What is "drive loyalty program members to stores during low traffic times of day" an example of?
Potential Action Program (Promotion)
47
What is "increase # of transactions per store" an example of?
Strategic Initiatives
48
What is "increase average transaction size" an example of?
Strategic Initiatives
49
What is "offer/promote more impulse purchase items at checkout" an example of?
Potential Action Program (Product)
50
What is "offer a morning bundle of coffee and scone with value pricing" an example of?
Potential Action Program (Packaging - Product P)
51
What does MROI stand for?
Marketing Return on Investment
52
Increasingly, marketing is viewed as an ___, not simple as an ___.
investment, expense
53
What does Marketing Return on Investment measure?
Impact
54
What are the two considerations that go into MROI?
Cost of marketing investment and marketing returns
55
What are examples of marketing returns (flow)?
Improved customer value and engagement → Increased customer attraction and retention → Increase customer lifetime value and customer equity
56
Marketing strategy answers 5 key questions...
what, who, why, which messages, and what does success look like?
57
Positioning informed ___ messaging and communication about...
external, the company and its products and services
58
The 4 P's comprise the ___ ___.
marketing mix
59
The 4 P's are the ___ marketers pull to...
levers, reach their target customer with their intended positioning, move them through the customer decision process and ultimately achieve their objectives.
60
Marketing planning assesses the organization's ___, ___, ___ and ___, and supports the over business through marketing objectives focused on a ___ strategic moves and ___ ___ to achieve them.
strengths, weaknesses, opportunities, threats, few, action programs
61
MROI is used to evaluate not only current marketing performance, but also...
future performance resulting from stronger customer relationships.
62
What are the two major types of marketing information?
Internal & External
63
What are the 7 kinds of internal marketing information sources?
1. Post Purchase Services
2. Purchase Experience
3. Product Distribution/Availability
4. Product Experience (Quality)
5. Website
6. Community
7. Spokespeople
64
What are the 7 kinds of external marketing information sources?
1. Reputation
2. Word-of-mouth
3. Reviews
4. Social Media
5. Other Users
6. Competitive Offers
7. Positioning
65
A company's business model affects what in regards with marketing information?
What is knows internally about its customers
66
Who knows more about its customers: retailers and other direct sellers or manufacturers and companies selling through others?
Retailers and other direct sellers
67
What are the implications of social media with regards to marketing information?
Social media has greatly increase manufacturers' ability to connect with customers.
68
What are three major sources of marketing information?
1. Internal Data
2. Marketing Intelligence
2a. Competitive Analysis
2b. Social media monitoring
3. Marketing research
3a. Secondary sources
3b. Primary sources
69
What are the two limitations of secondary information sources?
1. Often do not address the questions of greatest interest
| 2. Cannot be sliced and diced like proprietary data can
70
What are the three advantages of secondary sources over primary sources?
1. It is available right now, off-the-shelf.
2. It can be cheaper than conducting original research.
3. It is seen as unbiased.
71
What is marketing research?
The systematic approach to designing, collecting, analyzing, interpreting, and reporting of data relevant to a specific marketing situation facing an organization
72
What are the steps in the marketing research process (4)?
Define the problem and research objectives → Develop plan for collecting information → Collect and analyze data → Interpret and report findings
73
Secondary and primary data fall under which step in the marketing research process?
Develop plan for collecting info
74
Commercial online databases of third party research are relevant to what part of the marketing research process?
Commercial online databases of third party research
75
How can you access Mintel reports on movie-goers?
Access UC Berkeley Business Library → Click Databases A-Z → Choose Market Research → Click Mintel Reports (these cover consumer goods) → Search "segments of moviegoers"
76
What were the five consumer segments of moviegoers that Mintel came up with?
1. Bored Bystanders
2. Sentimental Cinephiles
3. Film Fanatics
4. Eager Agreeables
5. Social Selectives
77
What defines Bored Bystanders (4)?
1. 17%
2. Slightly prefer streaming to theaters
3. Fine going alone
4. Rather see familiar content
78
What defines Sentimental Cinephiles (4)?
1. 22%
2. Much rather see a movie in theaters
3. Happy going alone
4. Crave new content
79
What defines Film Fanatics (4)?
1. 21%
2. Want to see movies wherever and however
3. Happy going alone
4. Enjoy all types of films
80
What defines Eager Agreeables (4)?
1. 20%
2. Much rather see a movie in theaters
3. Want to go with others
4. Fine seeing familiar content
81
What defines Social Selectives (4)?
1. 20%
2. Prefer streaming
3. Will likely only go with others
4. Looking for a reason to go to theaters
82
Marketers use segmentation to do what 2 things?
1. Identify targets.
| 2. Develop offerings, communications, programs, and experiences to appeal to them.
83
Why do marketers give segments names?
Shorthand to express insight into the attitudes and behaviors of each group of consumers
84
What are the two key takeaways from the secondary source lecture?
1. Searching on Google is great, but has limitations!
2. The University has a vast collection of online databases with secondary source information about an enormous number of companies, industries and products and other topics, and research librarians who can help you identify the most relevant information for any task. Use these resources!
85
Interpreting and reporting findings of market research includes what three things?
1. Implications
2. Recommendations
3. Considerations
86
What three components describe the situation of Outward Bound?
1. Quirky, hard-to-define industry
2. Declining sign-ups and increased competition
3. Minimal, anecdotal understanding of customer wants and needs and purchase decision drivers
87
What did Outward Bound not have that made research a little bit difficult?
An internal customer database
88
What 6 things did Outward Bound screen participants on?
1. Demographics
2. Attitudes
3. Decision-making authority
4. Brand awareness
5. Purchase behavior
6. Interest in a program like this
89
How did Outward Bound find participants to screen?
Commercial panel
90
What is the benefit of using a commercial panel?
Offers marketers access to large numbers of potential research participants
91
What are the 4 ways to find participants to screen for primary research?
1. Internal customer database
2. Commercial panel
3. Social media
4. Friends and family
92
What are the 2 types of research techniques?
Quantitative and Qualitative
93
What are quantitative research techniques good for?
Answering the "what"
94
What are qualitative research techniques good for?
Answering the "why"
95
What are two quantitative research techniques?
1. Surveys
| 2. Behavioral tracking
96
What are four qualitative research techniques?
1. In-depth interviews
2. Online focus groups
3. Ethnography
4. Online bulletin boards and communities
97
What are four research instruments?
1. Questionnaire
2. Mechanical instrument (people meter, checkout scanners)
3. Discussion guide
4. Participant pre-work
98
What is participant pre-work?
The participant is tasked with doing something before coming in to the discussion or interview, like walking into a store or visiting a website.
99
What were the three components of Outward Bound's data collection and analyzation process?
Customer Profiling (online survey of 1600 parents of 14-22 year olds - quantitative research) → Decision Drivers (online focus groups of 34 participants in customer profiling survey - qualitative research) → Marketing and Messaging Implications (profiles of Outward Bound-interest parents and teens to inform marketing messaging)
100
What were the 3 biggest priorities for parents thinking about Outward Bound?
That their children...
1. Have fun
2. Build confidence
3. Learn independence
101
Outward Bound was the second most heard-of brand. What does this say about where the marketing problem is or where it isn't?
The marketing problem is further down the funnel. There is something stopping consumers from considering and selecting Outward Bound.
102
Compared to all other parents, parents who bought an Outdoor Wilderness experience for their 14-22 year olds were... (5)
1. More likely to be under 44 years old
2. More likely to have kids 12-24 years old
3. Want their children to have fun, build confidence, and learn independence
4. More engaged in road or mountain biking, camping, hiking and backpacking
5. More likely to be involved in sports like running, tennis, sailing and team sports
103
Why are outdoor wilderness buyer profile psychographics important to Outward Bound?
Helpful for knowing how/where to market to potential buyers
104
Why are outdoor wilderness participant profiles important to Outward Bound?
Helpful for determining messaging that is relevant to potential participants
105
Who tends to go on wilderness explorations like Outward Bound? (6)
1. Younger, mostly under 18
2. More likely to be boys
3. 74% go with a friend
4. 71% stay within 300 miles of home
5. 39% go to a wilderness setting
6. 69% stayed 1-2 weeks
106
Even though the data said otherwise, Outward Bound wanted to stay true to one thing. What was that?
The majority of wilderness exploring participants want to go with a friend. Outward Bound does not want to encourage people taking their friends, because they believe that that detracts from the experience they provide.
107
Quotes from parents are helpful in...
prioritizing investment touch points.
108
Websites are...
touch points.
109
What is the recommended positioning for Outward Bound?
Outward Bound is the leading provider of fun, confidence-building outdoor experiences for teens that lay the foundation for a lifetime of success. Of course, we have a track record of success and safety, but only Outward Bound has over 50 years of wilderness education and the most experience instructors.
110
How can Outward Bound practice market penetration?
Optimize messaging and targeting to drive consideration of core offering. High consideration would have a substantial impact on enrollment.
111
How can Outward Bound practice product development?
Create new sports/athletics offerings to cross sell to current outdoor/wilderness buyers. High overlap with Outdoor/Wilderness.
112
How can Outward Bound practice market development?
Market current Outward Bound programs to Sports/Athletics Buyers. We offer what they are looking for (confidence, independence, skills).
113
How can Outward Bound practice diversification?
Target 19-24 year olds and create offering applying wilderness principles for credit in an international setting. There's a large, growing high value segment here!
114
What should Outward Bound's product/market priority be?
Market Penetration
115
To be effective, primary research must be designed to answer management's questions ___.
objectively
116
Market research (primary or secondary) doesn't tell executives what to do. So what does it do?
It simply helps them make more informed decisions.
117
Primary customer research is helpful for gaining insight into the ___ ___, developing and refining the ___, ___ it, and knowing how and where to ___ it. It also informs the ___ ___ used to reach prospective customers.
target audience, offering, positioning, communicate, marketing tactics
