Marketing Management midterm 13-1-2017

1- What are the old four Ps and the new four Ps, why convert from old to the new?

Updating the Four Ps

Given the breadth, complexity, and richness of marketing, howeveras exemplified by holistic marketing
clearly these four Ps are not the whole story anymore. If we update them to reflect the holistic marketing
concept, we arrive at a more representative set that encompasses modern marketing realities: people, processes,
programs, and performance,

People: marketers must view consumers as people to understand their lives more broadly and not just as they
shop for and consume products and services.
Processes: reflects all the creativity, discipline, and structure brought to marketing management.
Programs: reflects all the firms consumer-directed activities.

Performance: as in holistic marketing, to capture the range of possible outcome measures that have financial
and nonfinancial implications (profitability as well as brand and customer equity), and implications beyond the
company itself (social responsibility, legal, ethical, and community related).

Finally, these new four Ps actually apply to all disciplines within the company, and by thinking this way,
managers grow more closely aligned with the rest of the company
 2- Type of needs, examples?

We can distinguish five types of needs: SRUDS

1. Stated needs (The customer wants an inexpensive car.)

2. Real needs (The customer wants a car whose operating cost, not initial price is low.)
3. Unstated needs (The customer expects good service from the dealer.)
4. Delight needs (The customer would like the dealer to include an onboard GPS navigation system.)
5. Secret needs (The customer wants friends to see him or her as a savvy consumer.)

3- Type of marketing entities?

What Is Marketed?

GS EE II PPP O

Marketers market 10 main types of entities: goods, services, events, experiences, persons, places,
properties, organizations, information, and ideas

1. GOODS Physical goods constitute the bulk of most countries production and marketing efforts.
Each year, U.S. companies market billions of fresh, canned, bagged, and frozen food products and
millions of cars, refrigerators, televisions, machines, and other mainstays of a modern economy.
2. SERVICES As economies advance, a growing proportion of their activities focus on the production of
services. Services include the work of airlines, hotels, car rental firms, barbers and beauticians,
maintenance and repair people, and accountants, bankers, lawyers, engineers, doctors, software
programmers, and management consultants. Many market offerings mix goods and services, such as a
fast-food meal.
3. EVENTS Marketers promote time-based events, such as major trade shows, artistic performances, and
company anniversaries. Global sporting events such as the Olympics and the World Cup are promoted
aggressively to both companies and fans.
4. EXPERIENCES By (regulating) orchestrating several services and goods, a firm can create, stage, and
market experiences. Walt Disney ,Worlds Magic Kingdom allows customers to visit a fairy kingdom, a
pirate ship, or a haunted house. There is also a market for customized experiences, such as a week at a
baseball camp with retired baseball greats, a four-day rock and roll fantasy camp, or a climb up Mount
Everest
5. PERSONS Artists, musicians, CEOs, physicians, high-profile lawyers and financiers, and other
professionals all get help from celebrity marketers. Some people have done a masterful job of marketing
themselves
 6. PLACES Cities, states, regions, and whole nations compete to attract tourists, residents, factories, and
company headquarters. Place marketers include economic development specialists, real estate agents,
commercial banks, local business associations, and advertising and public relations agencies.
7. PROPERTIES are intangible rights of ownership to either real property (real estate) or financial
property (stocks and bonds). They are bought and sold, and these exchanges require marketing. Real
estate agents work for property owners or sellers, or they buy and sell residential or commercial real
estate. Investment companies and banks market securities to both institutional and individual investors.
8. ORGANIZATIONS work to build a strong, favorable, and unique image in the minds of their target
publics. In the United Kingdom, Tescos Every Little Helps marketing program reflects the food
marketers attention to detail in everything it does, within the store and in the community and
environment. The campaign has vaulted Tesco to the top of the UK supermarket chain industry.
Universities, museums, performing arts organizations, corporations, and nonprofits all use marketing to
boost their public images and compete for audiences and funds.
9. INFORMATION The production, packaging, and distribution of information are major industries.
Information is essentially what books, schools, and universities produce, market, and distribute at a
price to parents, students, and communities.
10. IDEAS Every market offering includes a basic idea. Charles Revson of Revlon once observed: In the
factory we make cosmetics; in the drugstore we sell hope. Products and services are platforms for
delivering some idea or benefit. Social marketers are busy promoting such ideas as Friends Dont Let
Friends Drive Drunk and A Mind Is a Terrible Thing to Waste.

4- Good mission statement?

An organization develop a mission statement to share with managers, employees, and

customers.
A clear, thoughtful mission statement provides employees with shared sense of purpose,
direction, and opportunity.

Good mission statements have five major characteristics.

1. They focus on a limited number of goals. The statement We want to produce the highest quality
products, offer the most service, achieve the widest distribution, and sell at the lowest prices claims too much.
2. They stress the companys major policies and values. They narrow the range of individual
discretion so employees act consistently on important issues.
3. They define the major competitive spheres within which the company will operate. Table
2.2 summarizes some key competitive dimensions for mission statements.
4. They take a long-term view. Management should change the mission only when it ceases to be
relevant.
5. They are as short, memorable, and meaningful as possible. Marketing consultant Guy
Kawasaki advocates developing three- to four-word corporate mantras rather than mission statements, like
Enriching Womens Lives for Mary Kay
 5- Steps of marketing research?
Marketing research: as the systematic design, collection, analysis, and
reporting of data and findings relevant to a specific marketing situation facing the
company.

Step 1: Define the Problem and Research Objectives

Define the problem

Specify decision alternatives

State research objectives
Step 2: Develop the Research Plan
Data sources
Research approach
Research instruments
Sampling plan
Contact methods
Step 3: Collect the Information
Data-collection phase is generally the most expensive
And the most prone to error.
Problems collecting survey data include:
Respondents not at home/not contactable
Respondents refuse to cooperate
Respondents give biased or dishonest answers
Interviewers are biased or dishonest Copyright
Step 4: Analyze the Information
Extract the findings by:
Tabulating the data
Working out averages and measures for spotting patterns
Applying statistical techniques and decision models
Testing different hypotheses and theories
Applying sensitivity analysis to test strength of conclusions Copyright
Step 5: Present the Findings
Researcher presents findings relevant to the major marketing decisions facing management.
Researchers are often asked to add their opinion and recommendations, to act as consultants.
Step 6: Make the Decision
Many organizations use a marketing decision support system (MDSS) to help marketing
managers make better decisions.
 6- Define focus group?

A focus group is a gathering of 6 to 10 people carefully selected by researchers based on certain

demographic, psychographic, or other considerations and brought together to discuss various topics of
interest at length. Participants are normally paid a small sum for attending. A professional
research moderator provides questions and probes based on the marketing managers discussion guide or
agenda.

In focus groups, moderators try to discern consumers real motivations and why they say and do certain
things. They typically record the sessions, and marketing managers often remain behind two-way mirrors in the
next room. To allow for more in-depth discussion with participants, focus groups are trending smaller in size.

Focus-group research is a useful exploratory step, but researchers must avoid generalizing from
focus-group participants to the whole market, because the sample size is too small and the sample is
not drawn randomly

7- Criteria of good market segment?

Market segments must rate favorably on five key criteria:

Measurable. The size, purchasing power, and characteristics of the segments can be measured.
Substantial. The segments are large and profitable enough to serve. A segment should be the largest possible
homogeneous group worth going after with a tailored marketing program. It would not pay, for example, for an
automobile manufacturer to develop cars for people who are less than four feet tall.
Accessible. The segments can be effectively reached and served.
Differentiable. The segments are conceptually distinguishable and respond differently to different
marketing mix elements and programs. If married and unmarried women respond similarly to a sale on
perfume, they do not constitute separate segments.
Actionable. Effective programs can be formulated for attracting and serving the segments

8- Define customer loyalty?

a deeply held commitment to rebuy or repatronize a preferred product or service in the future despite
situational influences and marketing efforts having the potential to cause switching behavior.

Marketers usually envision four groups based on brand loyalty status:

1. Hard-core loyalsConsumers who buy only one brand all the time
2. Split loyalsConsumers who are loyal to two or three brands
3. Shifting loyalsConsumers who shift loyalty from one brand to another
4. SwitchersConsumers who show no loyalty to any brand
 9- How can you Monitor customer satisfaction?

in general, satisfaction is a persons feelings of pleasure or disappointment that result from comparing a
products perceived performance (or outcome) to expectations.

1. Companies can monitor the customer loss rate and contact

customers who have stopped buying and learn why this
happened.

2. Companies can hire mystery shoppers to pose as potential

buyers and report on strong and weak points experienced in
buying the companys and competitors products.

3. In addition to tracking customer value expectations and

satisfaction, companies need to monitor their competitors
performance in these areas as well

4. Periodic surveys can track customer satisfaction directly and

ask additional questions to measure repurchase intention and
the respondents likelihood or willingness to recommend the
company and brand to other

10-Customer value analysis steps?

Very often, managers conduct a to reveal the companys strengths and weaknesses relative to those of various
competitors. The steps in this analysis are:
1. Identify the major attributes and benefits customers value. Customers are asked what attributes,
benefits, and performance levels they look for in choosing a product and vendors. Attributes and
benefits should be defined broadly to encompass all the inputs to customers decisions.
2. Assess the quantitative importance of the different attributes and benefits. Customers are
asked to rate the importance of different attributes and benefits. If their ratings diverge too much, the marketer
should cluster them into different segments.
3. Assess the companys and competitors performances on the different customer values against their
rated importance. Customers describe where they see the companys and competitors performances on each
attribute and benefit.
4. (Examine ratings of specific segments.) Examine how customers in a specific segment rate the
companys performance against a specific major competitor on an individual attribute or benefit basis. If
the companys offer exceeds the competitors offer on all important attributes and benefits, the company can
charge a higher price (thereby earning higher profits), or it can charge the same price and gain more market
share.
5. Monitor customer values over time. The company must periodically redo its studies of customer values and
competitors standings as the economy, technology, and features change.
 11. What is customer perceived value?

Customer-perceived value (CPV) is the difference between the prospective customers

evaluation of all the benefits and all the costs of an offering and the perceived
alternatives.

The marketer can increase the value of the customer offering by raising economic,
functional, or emotional benefits and/or reducing one or more costs.
The customer choosing between two value offerings, V1 and V2 will favor V1 if the ratio
V1:V2 is
larger than one, favor V2 if the ratio is smaller than one, and be indifferent if the ratio
equals one.

12. Difference of pod, pop, examples?

POINTS-OF-DIFFERENCE: Points-of-difference (PODs) are attributes or benefits that consumers strongly

associate with a brand, positively evaluate, and believe they could not find to the same extent with a
competitive brand. Associations that make up points-of-difference may be based on virtually any type of
attribute or benefit.

Strong brands may have multiple points-of difference. Some examples are Apple (design, ease-of-use, and
irreverent attitude), Nike (performance, innovative technology, and winning),

Creating strong, favorable, and unique associations is a real challenge, but an essential one for competitive
brand positioning.

Three criteria determine whether a brand association can truly function as a point-of-difference:

Desirability, deliverability, and differentiability.

Desirable to consumer. Consumers must see the brand association as personally relevant to them.

Deliverable by the company. The company must have the internal resources and commitment to feasibly and
profitably create and maintain the brand association in the minds of consumer

Differentiating from competitors. Finally, consumers must see the brand association as distinctive and superior
to relevant competitors

Any attribute or benefit associated with a product or service can function as a point-of-difference for a brand as
long as it is sufficiently desirable, deliverable, and differentiating.

POINTS-OF-PARITY: Points-of-parity (POPs), on the other hand, are attribute or benefit associations that are
not necessarily unique to the brand but may in fact be shared with other brands. These types of associations
come in two basic forms: category and competitive.

Category points-of-parity are attributes or benefits that consumers view as essential to a legitimate and
credible offering within a certain product or service category. In other words, they represent necessarybut not
sufficientconditions for brand choice.

Competitive point-of-parity may be required to either:

(1) negate competitors perceived points-of-difference

(2) Or negate a perceived vulnerability of the brand as a result of its own points-of-difference.

One good way to uncover key competitive points-of-parity is to role-play competitors positioning and infer
their intended points-of-difference. Competitors PODs will, in turn, suggest the brands POPs.

Examples:
*Miller Lite: The initial advertising strategy for Miller Lite beer had two goals ensuring parity with key
competitors in the regular, full-strength beer category by stating that it tastes great,

While at the same time creating a point-of-difference: It contained one-third fewer calories and was thus
less filling.

*Visa versus American Express:

Visa has established a strong point-of-difference versus American Express on the basis of acceptability.
Visas POD in the credit card category is that it is the most widely available card,
American Express, on the other hand, has built the equity of its brand by highlighting the prestige associated
with the use of its card