Marketing Management Flashcards

3764938076	What is Marketing?	Marketing = Exchange * Companies create value * Customers pay money	0
3764910876	Marketing Process		1
3764942270	Ways companies create value	Create - new product development, brand building Enhance - advertising, promotion, market research, warranties Exchange - sales force, distribution, online stores Capture - price, buy-back, lease, royalty, consumer credit	2
3764883580	Marketing Analysis	5 Cs (Creating Value) Customer Needs Company Skills Competition Collaborators Context	3
3764886979	STP	Segmentation Target Positioning	4
3764889100	Marketing Mix	4 Ps (Capturing Value) Product/Service Place/Channels Promotion/Communications Strategy Pricing	5
3764950659	Sales	(Sustaining Value) Customer Acquisition Customer Retention	6
3764894888	Context	Cultural Technological Legal	7
3764896149	Segmentation	Demographic (i.e. age, income, gender, occupation) Geographic (i.e. nation, region, urban, rural) Lifestyle (i.e. hedonistic vs value oriented)	8
3764899788	Customization	Mass Market Market Segments Market Niches Individuals	9
3764904028	Customer Behavior		10
3764916130	Rules of the Game	Customer sets by purchase criteria	11
3764919051	Positioning Statement		12
3764923000	Total Product Concept	Product Definition - Total package of benefits obtained by the customer	13
3764927611	Product Line Planning Decisions	Product Line Breadth - how many different lines Product Line Length - how many items in a line (different price points) Product Line Depth - how many types of a give product	14
3764957583	Formulating Marketing Strategies		15
3764962384	Investment Stance	Market Growth - Vertical Axis Market Share - Horizontal	16
3764965997	Business Plan		17
3780252323	Net Present Value	a technique that generates a decision rule and associated metric for choosing projects based on the total discounted value of their cash flows	18
3764976795	Decision Making Unit	individuals in an organization who participate in making purchase decisions - who is involved? - what role does each play?	19
3764978618	Discounted Cash Flow	the process of valuing an investment by discounting its future cash flows	20
3764977571	Net Present Value	The difference between the discounted cash flows and the investment	21
3764981322	Types of Promotions		22
3764989722	Pricing	3Ps (Product, Place (Channel) and Promotion) determines the target customer's perception of the value = willingness to pay (primary guide to pricing the product	23
3764994614	Skim Pricing	charging a high price for a new product during the introductory stage and lowering the price later	24
3764995471	Penetration Pricing	Pricing strategy that involves the setting of lower, rather than higher prices in order to achieve a large market share	25
3764997756	Price Customization		26
3765001875	Price Leadership	must take into account reaction of competitors. Most acute when:	27
3765009071	Business Purpose	To create satisfied customers	28
3765010440	Customer Focused	An organizational stance in which all aspects of a company's production and delivery of goods or services are directed by the best interests of the customers.	29
3765011120	Marketing Concept	A philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. 1) Choose group of customers 2) Do a better job of satisfying the customer's needs than the competition	30
3765016543	Multiple Customers	Different points in channel (i.e. airbags to Ford, prescription drugs)	31
3765017613	Needs focus	1/4 inch drill or 1/4 inch hole Southwest airlines (Dallas, Houston, San Antonio)	32
3765020801	Market Definition	1) Customers served 2) Needs Met 3) Technologies Used	33
3765022786	Effective Positioning has 4 important characteristics	Desire - built around benefits that target a customer's desire Differentiate - from the product/service of key competitors Deliver - skills, resources and credibility to deliver on the promises Defensible - an aggressive competitor cannot quickly act to neutralize	34
3765034608	Product Life Cycle	introduction, growth, maturity, decline	35
3765043497	Search Engine Marketing	a form of internet marketing that seeks to promote websites by increasing their visibility in search engine results pages. (Google Adwords)	36
3765046827	Google AdWords Metrics	Click-through rate (CTR) Average cost per click (CPC) Average Position (on search page)	37
3765047666	Click-through rate	The number of times Web site visitors click an ad to connect to an advertiser's site	38
3765048957	Google Analytics	Pages per visit & average time on site Percent new visits Bounce rate	39
3765054326	Bounce rate	the percentage of times a visitor leaves the website almost immediately, such as after viewing only one page	40
3765057984	Google AdWords Bidding and Pricing	Advertisers selected maximum CPC Second Price Auction	41
3765056002	Second Price Auction	Auction in which the price the highest bidder pays for an item is based on the bid of the second highest bidder. This type of auction creates the conditions in which it is in the best interest of people to bid the maximum amount they would for an item.	42
3765094752	paid search advertising	two types of search results are listed: 1) search algorithm 2) paid advertising	43
3765100595	PPC pricing	price-per-click pricing with stipulations 1) specific search terms 2) type of device 3) time of day 4) location etc	44
3765110888	traditional advertising	direct mail, signage, TV, etc can create demand by putting the company's message in front of people who have been identified as likely customers but don't realize they want the product	45
3765121933	paid search advertising metrics	visits, visitors, abandonment (creates a shopping cart but does not buy), CPC, cost per order, cost per customer	46
3765142975	customer lifetime value	the value of the entire stream of purchases a customer makes over a lifetime of patronage	47
3765176432	Purchase Funnel	Think - Awareness - web hits Feel - walkarounds Do - test drives	48
3765199320	Social Media	Traditional Social Digital Advertising Media Control High Low High (one way) (two way) Credibility Low High Low Cost/Reach* High Med/Low Med/Low (targeted) *CPM (Cost per 1000 people reached)	49
3765208600	Social Media ROI narrowly focused	1) short term - developing meaningful relationships with customers take time 2) ignores qualitative objectives that have no qualitative analogues with traditional media metrics	50
3765232379	relevant metrics for social media	Think - Brand Awareness Feel - Brand Engagement Do - Word of Mouth	51
3765237510	Permission Marketing	method of marketing that asks consumers to give their permission to voluntarily accept online advertising and e-mail	52
3765243552	seven steps to social media success		53
3765246956	Branded Entertainment	Product placement, Integration of brands or brand messages into entertainment media (mini cooper in Italian Job)	54
3765250543	Hokey Pokey Ice Cream	Phase 1: "Creations on the Wall" - Influencers could enter the recipes for their creation, name their creation, and post recipes on the wall Phase 2: "Share your Brownies" - motivated influencers to tweet about their creation to compete for incentives (T-shirts) and intangible benefits (Brownie Points) 40% increase in sales revenue	55
3765291661	The New York Times Company Background	leading global multimedia news company 106 pulitzer prices (most of any news organization) subscription and revenues declining overall newspaper circulation declining	56
3765299080	digital disruption of newspapers	newspapers - "Bundled" craigslist = classifieds monster.com = jobs major automakers = own websites (advertising)	57
3765305051	newspaper response	early --> rushed to put content on internet (free) online advertising rates much lower limiting circulation to certain days a few specialized papers (WSJ) instituted paywalls	58
3765310071	iPad	"lean back" vs "lean forward" experience 99% consumed news on their device less likely to subscribe to paper	59
3765314443	early NYT paywall	$35/mo abandoned $49.95/yr abandoned	60
3765317884	NYT Leaky Paywall	20 articles per month free front page and section front pages (top news) free all other content behind paywall through Google, add'l 5 articles per month linked from social media, unlimited 3 tiered pricing depending on device $4 average price by month	61
3765330717	NYT success	Growth - product life cycle Considered a success? Two-Sided Market: customer subscriptions & advertising create revenue non-subscribing customers increase audience size which allows NYT to attract advertisers	62
3765350128	Abercrombie & Fitch	2006 - marketing to "cool and popular kids", "cool, good-looking people"... " are we exclusionary? Absolutely!" 2013 went viral on social media	63
3765375007	Jeffries CEO marketing strategy	Marketing Genius All-American look employees "in-store models" XL & XXL sizes for men only	64
3765380975	A&F controversy	lawsuits: improper hiring & dismissal, offensive product lines #FitchTheHomeless - allegedly burned damaged clothing	65
3765400326	Ford	associated with F-150 & Mustang Japanese cars (Toyota & Honda) dominate B segment 2008-2009 economic crisis (Ford had not filed for Bankruptcy) Fiesta a huge success in Europe	66
3765428564	rule of 72	The number of years it takes for a certain amount to double in value is equal to 72 divided by its annual rate of interest.	67
3765430458	Team Detroit	WPP (global communications marketing Company) advertising, marketing and media	68
4051577200	Mission Control	Customer facing, advocate to Agents	69
3765455050	Fiesta Movement	hand over 100 cars to Agents 6-mo all-expenses paid use social media to share their experience	70
3765458845	Agents	"vibrancy scale", social media integration, storytellers	71
3765471036	Missions	Twitter Taxi Mules for a Day	72
3765472951	No celebrity endorsements	credibility/organic/authentic fairness - other agents would feel it was inequitable	73
3765480299	Pillsbury Cookie Challenge	Mature product line Volume flat Household penetration decreasing	74
3765483074	Pillsbury Options	increase frequency increase penetration combination	75
3765487357	Kisses campaign	US commercial for Canadian market Appealed to taste not convenience (perceptual map)	76
3765517214	Position	Convenience Segment: non-Users	77
3765519162	Market Research	Scratch baking dominant Kids Frequency of RBG similar to US (appeal to penetration)	78
3765530545	Rained out TV add	Convenience Increase Penetration (Frequency maxed ~USA) Segment: non-Users	79
4051569120	How does a company enhance value for its customers by offering warranties?	Product value is enhanced by reducing the perceived risk for the customer. Warranties provide assurance (i.e., the company will take back the product if it does not work as expected), so consumers feel more confident in buying the product.	80
4051571917	Clarify the distinction between "stars" and "question marks" in a company's portfolio of brands.	Stars are products that enjoy high market share and high market growth, whereas question marks are products that have high market growth but low market share.	81
4051574122	Why should New York Times design its digital news with a "leaky" paywall?	New York Times newspaper operates in a two-sided market, where it get revenues from two sources: customers' subscriptions and other companies' advertising. By designing a leaky paywall, it attracts non-subscribing customers who contribute to the audience size (more eyeballs), allowing NYT to attract advertisers.	82
4051574860	In the Fiesta Movement campaign, give two main reasons why Ford company should not select some top-performing agents for TV talk-shows by Jon Stewart or Oprah?	If they selected TV talk shows to publicize agents' work, first, the campaign becomes less organic/authentic. Second, other agents (not featured) feel inequitable, which could hurt the success of the campaign.	83
4051627980	Positioning	Differentiation: Create differences on key benefits between your brand and competitors It's about designing products Positioning: Implant this differentiation in the minds of customers It's about influencing consumers (via advertising, packaging, etc.) Mapping: Visualize market structures using customer data It's about conducting market research and analytics	84
4051629326	perceptual maps	A systematic approach to incorporate the "voice of the customer" in product design process Forces you to think about: (i) competitive landscape (ii) benefits (i.e. factors) versus features (i.e. attributes) (iii) white space of possibilities Understand market structure proximity implies competition Identify opportunity gaps White spaces Be careful of demand voids	85
4051594196	Building a perceptual map	Survey customers on Perceptual Attributes (not engineering) 1) Attribute ratings - your brand or product concept - competing brands 2) Overall preference Consider 15-20 attributes, 5-10 brands	86
4051652546	Factor Analysis	Combines several attributes to create composite factors - 15-20 attributes 2-3 factors Number of factors to retain? Scree plot E-G-O rule (eigenvalue greater than one) Factor names? Use Rotated Component Matrix in SPSS Most important activity	87
4051655396	Preference Regression	Which factors are important? Overall preference = b0 + b1F1 + b2F2 Ideal Vector angle = Arc Tan (b2/b1) when F1 is more important than F2 F1 = X-axis F2 = Y-axis	88
4051588987	construction of the ideal vector	Run Multiple Regression with Stepwise (or backward) variable selection - DV = Overall Preference, IVs = all factor scores - Determine important factors (t-values) - Determine factor names via Rotated Component Matrix Compute angle of the ideal vector	89
4051675338	Interpretation	isopreference curve - perpendicular to ideal vector - to the left, less preferred Closest competitors = closest geographically	90
4051714619	brand extension	extending an existing brand name to new product categories	91
4051716945	sub-branding (line extension)	creating a secondary brand within a main brand that can help differentiate a product line to a desired target group (i.e. Toyota vs Lexus vs Scion) -- Clean Edge (by Paramount)	92
4051719834	corporate branding	Making the promise of quality products, service, and delivery to customers. The intent is to attract new customers and create loyalty in past customers. -- Paramount Clean Edge	93
4051711854	umbrella branding (House of Brands)	same product under different names for example different types of proctor and gamble shampoos - mitigate risk	94
4051766111	Methods for determining advertising budget		95
4051667548	Percentage of Sales Method (Method 1)	setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price rear view mirror	96
4051742283	Competitive Parity (Method 2)	managers establish budget amounts by matching the competition's percentage-of-sales expenditures side view mirror	97
4051743772	Inverse Allocation (Method 3)	Ratio of share of voice to market share - mature brands ~ =1.0 +/- 0.2 - small brands ~ >2-3	98
4051749741	Objective and Tasks (Method 4)	firms make objectives and defines tasks to get those objectives which will estimate cost	99
4051751537	Optimal Budgeting (Method 5)	used in class	100
4051766112	STP	3 segments - Emotional/Involved - Aesthetic - Uninvolved Position - Niche ($12.99) - Mainstream ($11.19)	101
4051854251	Sales Sources	1) market expansion (non-users) - Category growth 2) cannibalization 3) competitors - brand switching	102
4051843024	Cannibalization	Paramount Pro, Avail Not a problem as long as higher margin	103
4051845807	Budget	Steering Committee looking to curb excessive spending - Budget reallocation required	104
4057463592	Pricing Decision	Traditional Approach - "Cost Plus" - Price = Variable costs + O/H + Desirable Margin Modern approach (Four Cs) - Customer Value - Costs - Context - Competition	105
4057493140	Strategic Pricing Gap	difference between value (willingness) to pay and cost	106
4057496089	Two ways to get Willingness to Pay	Consumer Surveys Conjoint Analysis	107
4057500174	Profit Equation		108
4057506783	Optimal Price	price that maximizes total revenue; abbreviated as P* Optimal price is the special price that maximizes profit not sales, not cash flow, not ROI Optimal price depends on price elasticity What is price elasticity? More latitude to increase price when elasticity is small	109
4057510839	Can monopolists charge the highest possible price?	No; they would do better by balancing the trade-off between margin and volume	110
4057622033	Variable & Fixed Costs		111
4057492869	Strategic Pricing Gap	difference between willingness to pay and price	112
4066253028	Reference Price	To increase demand, you do not have to decrease the actual price (and thereby hurt profit) Instead change the reference price, pref ---- Create value by stating the "list" prices ---- Order of presentation (Anchor at Higher Price) ---- Extremeness aversion (S, M, L, XL)	113
4066244700	Prospect Theory	Losses Loom Larger than Gain Causes Risk-seeking Behavior	114
4066212393	Conjoint Analysis	You can determine how much an attribute contributes to a consumer's utility - Relative importance of attributes - Worth of a part of an attribute	115
4066219405	Collect preference data	Several approaches - Rankings - Ratings - Paired comparisons - Choice-based	116
4066222073	Analyze the data (hdtv.xls)	Several approaches - Linear Regression (OLS) - Monotone regression - Linear programming - Maximum likelihood - Bayesian methods	117
4066226634	Willingness to Pay	Price savings $2500-2000 = $500 Price part-worth 4.75 $500 / 4.75 utils 1 util = $105.26 $500/4.75	118
4066273642	Consumer Promotions	Price promotions coupons, rebates Non-price promotions gifts, in-pack, warranties Spectrum: - cents-off - samples - Coupons - refunds/rebates - contests/sweepstakes - bonus packs - event sponsorship	119
4066277174	Trade Promotions	To wholesalers To retailers To salesforce All of the above can have price or non-price types Examples: - trade allowances - POP displays - contests/sweepstakes - training programs - trade shows - co-operative advertising	120
4066287103	When to use which promotion		121
4066291161	Principle of Synergy	Catalytic Effect: - Should you spend dollars on an ineffective medium? - Yes, provided it exhibits synergy with other effective media e.g., Billboards, In-transit signage, OOH	122
4066304888	a channel	Main Functions - Financing --- Convert Goods to Cash to Goods - Servicing --- Wholesaler: Lot Size --- Retailer: Product Assortment	123
3765357348	Two-sided market	Network markets comprised of two distinct categories of participant, both of which that are needed to deliver value for the network to work (e.g., video game console owners and developers of video games, credit card companies)	124
4066315881	Platform Marketing	Mall iPhone	125
4066322486	Types of Analytics	Descriptive Predictive Prescriptive	126
4066328203	Predictive Analysis	A systematic approach to evaluate the effectiveness of managers' actions on market outcomes Actions? - Elements of marketing mix ---- Advertising, Promotion, Price, Distribution, etc. - Outcomes? ---- Elements of market consequences Awareness, Sales, Market shares, Earnings, Stock returns, etc.	127
4066332921	Ad Elasticity	Awareness = past + effort +/- chance	128
4066335705	Lambda	carryover effect / Loyalty (1 - lambda) forgetting rate / churn	129
4066343347	Optimal Spend	X* = optimal spend, m = margin (assume 8000), rho = discount rate (assume 12% annum = 0.12/52 per week), and effectiveness beta and carryover lambda as estimated via regression analysis.	130
4066350970	Swim Lane Marketing	Backward-looking approach that treats advertising touch points as if each works in isolation	131
4066359188	Optimizing Advertising		132
4066365238	Samsung M-Net	Overinvestment in N. America & Russia Underinvestment in Europe & China Overinvestment in Mobile Phones, Vacuums, & ACs	133
4066373469	Overcoming Resistance to change	Avoid Robot Reallocation Personally meet with managers Set lower targets for managers who will be losing funds and vice versa	134