Upload
ashley-hunter
View
216
Download
0
Tags:
Embed Size (px)
Citation preview
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
marketing 300marketing 300discussion section
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
Announcements?
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
Announcements?• Michael Shermer, author
of Mind of the Market• Topic: Irrationality• Place: March 1, 7:30,
Union Theater• Tickets: Union Box Office
(free!)
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
reminder– You can only turn in 1 discussion question after
2nd exam– If you haven’t turned in any yet, you need to do
the next two!
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
segmentsIs this a viable market segment (target market)?a)women who need new shoesb)teenagersc)professional man looking for dress socksd)diabetics who like sweetse)middle aged couple looking to buy a housef)people who like carsg)young people who look for variety in movie rentalsh)busy mother who wants to improve her health
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
targets and segmentsWhat is the difference between a target market and a segment?
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
targets and segments
VARIETY-SEEKERSVARIETY-SEEKERS
SNACKERSSNACKERS QUALITY-SEEKERSQUALITY-SEEKERS
HEALTH-CONSCIOUS
HEALTH-CONSCIOUS
LATE-NIGHT MUNCHIESLATE-NIGHT MUNCHIES
JUNK FOOD MARKET (OVERALL)
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
VARIETY-SEEKERSVARIETY-SEEKERS
SNACKERSSNACKERS QUALITY-SEEKERSQUALITY-SEEKERS
HEALTH-CONSCIOUS
HEALTH-CONSCIOUS
LATE-NIGHT MUNCHIESLATE-NIGHT MUNCHIES
JUNK FOOD MARKET SEGMENTS
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
VARIETY-SEEKERSVARIETY-SEEKERS
SNACKERSSNACKERS QUALITY-SEEKERSQUALITY-SEEKERS
HEALTH-CONSCIOUS
HEALTH-CONSCIOUS
LATE-NIGHT MUNCHIESLATE-NIGHT MUNCHIES
JUNK FOOD MARKET SEGMENTS
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
HEALTH-CONSCIOUS
HEALTH-CONSCIOUS
TARGET
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
HEALTH-CONSCIOUS
HEALTH-CONSCIOUS
What kind of targeting approach is this?
SINGLE TARGET MARKET APPROACH
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
SNACKERSSNACKERS HEALTH-CONSCIOUS
HEALTH-CONSCIOUS
What kind of targeting approach is this if you have a single marketing mix?
COMBINED TARGET MARKET APPROACH
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
SNACKERSSNACKERS HEALTH-CONSCIOUS
HEALTH-CONSCIOUS
What kind of targeting approach is this if you have more than one marketing mix?
MULTIPLE TARGET MARKET APPROACH
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
Quiz #4
• A requisition
a) is only used for nonroutine purchases.b) is the same as a purchase order.c) sets the terms under a negotiated contract.d) is a formal contract between a buyer and a seller.e) none of the above is true.
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
Quiz #4
• Purchasing managers in business markets (compared to buyers in consumer markets) are generally:
a) fewer in number.b) more technically qualified.c) less emotional in their buying motives.d) more insistent on dependability and quality.e) all of the above.
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
Quiz #4
• Organizations always focus on economic factors when they make purchase decisions and are never as emotional as final consumers in their buying behavior.
a) Trueb) False
companies are made of people!
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
exam details• March 1, 5:40pm – see Learn@UW for location• Makeup exam: you should have received an email• Arrive early – no extra time if you’re late!• What should I bring?
– No. 2 pencil– Student ID – required to submit exam– Know your section number
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
Exam Prep
• get all section slides at: http://mywebspace.wisc.edu/rkamath
• read over class notes• do the quizzes on the book website
• do the quizzes on the book website
• do the quizzes on the book website!!!!!!!!
• www.mhhe.com/fourps
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
Exam Prep
• Don’t write on practice exam, please!
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
exam review1. Which of these sounds like sales-era marketing?a) “We just make stuff; we don’t try to sell it.”b) “We make whatever we want, and shove our
products down peoples’ throats”c) “We do whatever the guys in marketing tell us to”d) “We hire hotshot MBAs to find out all the latest
trends and then we just copy them.”e) “We hang around on Facebook listening in on
conversations to figure out how to market to young people”
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
exam review2. “Price” includes which of the following:a) Cost of a product to the companyb) Markup of a productc) Markup and discountsd) Markup, discounts, and allowancese) Markup, discounts, allowances, and geographic
terms
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
exam review3. Which of the following most describes a “breakthrough
opportunity?”a) Some guy mixes ingredients in his bathtub and sells it as a
Coke knockoffb) A greasy sandwich store opens a second location next to a
popular bar where college kids get drunk every weekendc) A pharmaceutical company spends 12 years and $127 billion
coming up with a drug that keeps you from saying dumb stuffd) Sven Evans knits handbags and sells them on EBaye) Knowing the shape of the economy, a Ford dealership has a
sale on all compact cars with broken windshields
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
exam review4. Phun Pharmaceuticals decides that in addition to selling pills,
they want to start selling snowboards. What strategy is this?a) Multiple target marketb) Combined target marketc) Market developmentd) Diversificatione) Market Penetration
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
exam review
Market Penetration
Market Development
Product Development
Diversification
Present products New products
Present markets
New markets
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
exam review5. Greasy Black Oil Co. wants to make a pre-packaged oil slick
product for thwarting tailgaters. Which should they do first?a) Get retailers on boardb) Figure out the 4 Psc) Start manufacturing the productd) Segment the markete) Create promotional advertising with snappy catchphrases
that people will repeat a lot
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
exam review6. Cantco says on their warranty that if their product blows up
within 90 days of purchase you can get a replacement free of cost. Your product blew up on day 88 but the company refuses to send you a new product. They can get in trouble under which act?
a) Total Quality Management Actb) Sherman Actc) Magnuson-Moss Actd) Terrance-Putnam Acte) This is the buyer’s problem. He can sue, but that’s about it.
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
exam review7. Reference groups would have the most impact on the sales
of which category of product?a) Shoesb) Salad dressingc) Hand soapd) Coffeee) Batteries
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
exam review8. Jieun Cha just bought a new Porsche, but as she speeds
home from the dealership, she wonders if maybe she should have just gotten the Ferrari. It had a carbon-fiber brake pedal, after all, and it was only $137,000 more. This is an example of:
a) Routinized response behaviorb) Dissonancec) Consumer insatiabilityd) Consumer justificatione) Post-purchase reconsideration
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
exam review9. Jeremy Jaghoff works for a large, faceless corporation. His
boss tells him that they’re going to need some supplies. Which of the following on the boss’ list is most likely to be a straight rebuy?
a) A solid gold chair for the executive suiteb) A brand new wi-fi network for the corporate complexc) 20 pizzas (extra cheese) delivered to the boss’ officed) 5,000 reams of papere) 200 headsets for the new employees they are hiring
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
10. Which is true about “target marketing”? a) Is limited to small sized marketb) Assumes that all customers are homogeneousc) Focuses on reasonably homogeneous market
segmentsd) All of the above
exam review
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
11. Subway uses many retail channels to reach its target markets while UW Credit Union uses none. Which of the marketing mix variables is being considered here?
a) Penetrationb) Productc) Promotiond) Placee) Price
exam review
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
12. Hafasco recently increased its couponing to its present customers. It appears that Hafasco’s is pursuing what kind of opportunity?
a) Market penetrationb) Product developmentc) Market developmentd) Mass marketinge) Diversification
exam review
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
13. The Sherman Act (1890) focuses on:a) Unfair methods of competitionb) Attempts to monopolizec) Deceptive packaging, branding or adsd) Product warrantiese) Clayton Act (1914)
exam review
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
14. Almost 50 percent of the total U.S. income is paid to the ________of U.S. families with the highest incomes. a) 20 percentb) 30 percentc) 50 percentd) 80 percente) 95 percent
exam review
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
15. On his way to buy a Stihl chainsaw, Leatherface hears from one of his friends that Craftsmans has more price-performance than Stihl. However Leatherface thought that his friend said that Stihl had more price-performance. This illustrates:
a) Selective perceptionb) Learningc) Selective retentiond) Reinforcemente) Selective exposure
exam review
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
16. Loopy went to Copps for grocery shopping. He wanted to buy Salt Mine brand potato chips. However, the store was temporarily out of that product, so he looked over the other familiar products/brands and decided to try a well advertised one. This case illustrates:
a) Routinized response behaviorb) Intensive problem solvingc) Limited problem solvingd) Extensive problem solving
exam review
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
17. Regarding the U.S. population trends in the U.S. consumer market, which of the following is NOT true?
a) About 13 percent of all Americans move each year.b) Some of the areas with the largest populations are losing
population.c) The overall U.S. population continues to grow rapidly.d) The percentage of population in older age groups has
increased.e) Big targets such as the metro areas are attractive but very
competitive.
exam review
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
exam review18. Frederick Krueger is a demoralized employee who works on the 5th
floor of an anonymous office building in an industrial park. His office’s printer ran out of toner again and Fred has decided that instead of buying the same toner that he always buys from a company-approved vendor, he is going to buy some knock-off toner from a sketchy vendor in South America. What kind of organizational buying is this?
a) new task buyb) new order buyc) depeche mode buyd) modified rebuye) modified buyf) straight rebuy
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
19. Ray was interested in a new guitar. Ray discussed the various type of with some knowledgeable friends and relied on their advice. Ray’s friends were acting as:
a) An economic influenceb) Routinized decision-makersc) A social classd) A lifestyle groupe) A reference group
exam review
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
20. As the owner of a Starbucks, Laurie had an annual income of $65,000 last year. She pays $30,000 per year in taxes and another $18,000 per year in grocery bills, house mortgage, and car payment. Last year she spend an additional $5,000 on a one-month visit to Zimbabwe. What was Laurie’s discretionary income last year?
a) $17,000b) $35,000c) $12,000d) $47,000e) $5,000
exam review
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
If you’re stuck on an application test question think about these things:
- How does this apply to the 4 P’s?- Who is involved? Who benefits? What are their
motivations?- There is no universal “best” strategy, distribution
method, promotion, etc… - (It’s all situational!)
PRO TIP
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
Please return practice exam when you leave!
PRO TIP
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
Segments
• Homogeneous within – as similar as possible with regards to their response to marketing mix variables and segmenting dimensions• Heterogeneous between – consumers in different segments should be as different as possible• Substantial – Large enough group of people to be profitable• Operational – Dimensions should be useful for identifying customers and adjusting marketing mix variables
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
• Broad Product Category– Electronics
• Generic market– Devices that help you capture an image
• Product Market– Digital Camera
• Multiple Target Market– One camera targeted at different market segments (different
marketing mixes)• Combined Target Market
– One camera targeted at different market segments (same marketing mixes)
Product Examples
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
Chapter 1: IntroMacro-marketing:
Study of marketing from the national (societal) perspective. Emphasis on how the whole marketing system works.
Micro-marketing:Study of marketing from an individual firm’s
perspective; 4 P’s.Macro-Micro dilemma:
What is good for an individual firm is not always good for society
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
Chapter 1: IntroThe marketing concept:
Total company effort to achieve customer satisfaction at a profit
The roles/focus of marketing over time Simple trade era/Sell surplusProduction era/Increase supplySales era/Beat competitionMarketing department era/Coordinate and
controlMarketing company era/Long-run customer
satisfaction
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
Chapter 1: IntroCustomer value = Benefits - Costs (From perspective
of the consumer)
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
• Micro and macro views of marketing– Micro view: a set of activities performed by organizations
• The American Red Cross seeks more volunteers. • “Pepsi sells in Japan.”
– Macro view: a social process• Internet changed the way of firm’s communication with
consumers. • Korea and the U.S. agree on a new trade agreement. • “Russia decided to focus more on consumer goods than
before.”– Micro-macro dilemma
• E.g.) What is good for some producers or consumers may not be good for environments.
Chapter 1.
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
Chapter 2: Strategy Planning• A marketing strategy requires:
1) Target market2) Marketing mix to appeal to target market
a. Productb. Placec. Promotiond. Price
• The marketing plan • contains the strategy along with timing details
for implementation
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
Chapter 2: Strategy Planning• Planning an effective strategy and marketing mix involves:
• SWOT Analysis •(Strengths, Weaknesses, Opportunities, Threats)
• Differentiation• Market Segment
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
Chapter 3: Evaluating Opportunities
When looking for opportunities, consider:1. External Environment
- economic, technical, political, legal, social, cultural
2. Competitors: compares your strengths and weaknesses to those of major competitors:
Target market Product, Place, Promotion, Price Competitive barriers Likely responses to your actions
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
Chapter 3: Evaluating Opportunities
3. Internal Environment- marketing plan must align with the firm’s
overall objectives
Evaluate all three together to find the best opportunities!
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
• Target marketers aim at specific targets (p67)– Single target market approach• Segmenting the market and picking one of the homogeneous
segments as the firm’s target market– Multiple target market approach• Segmenting the market and choosing two or more segments,
then treating each as a separate target market needing a different marketing mix
– Combined target market approach• Combining two or more submarkets into one larger target
market as a basis for one strategy
Chapter 4.
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
Chapter 4: Segmentation and Positioning
Market – potential customers with similar needsGeneric – broadly similar needs, diverse ways of
satisfying needsProduct – very similar needs, close substitutes
Segmentation 1) Name broad product market 2) Segment to select target market and marketing
mixShould be homogeneous within, heterogeneous
between, substantial, operational
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
Chapter 4: Segmentation and Positioning
Market approachesSingle targetMultiple targetCombined target
Qualifying dimension – includes a customer type in product-market
Determining dimension – affect customer’s purchase of specific product in product-market
Positioning – how customers think about proposed or present brands in the market
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
Chapter 5: Consumer Buying Behavior
Consumer Behavior – why do they buy what they buy?Economic Needs - Psychological NeedsSocial Influence-Purchase Situation
Psychological Influences within and individualNeeds, Wants, Drives
The PSSP Hierarchy of NeedsPersonal needs, Social needs, Safety needs, Physiological needs
Perception Determines what Consumers See & FeelSelective Exposure, Selective Perception, Selective Retention
Learning Determines what Response is LikelyThe Learning Process: Drive - - Cues - - Response
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
Chapter 5: Consumer Buying Behavior
Attitudes relate to buying - understanding attitudes & beliefs helps you target them!
The Consumer Decision ProcessConsumer Problem Solving:
Info Search - - Identify alternatives - - Set criteria - - Evaluate alternatives
Problem Solving ContinuumRoutinized response behavior - - Limited problem
solving - - Extensive problem solving
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
Chapter 6: Business Buying Behavior
Not all consumers are final consumers. The buying process is very different for these consumers (examples: B2B, middlemen, gov’t, nonprofits…)
Orgs typically focus on economic factors, not emotion
Many people with varying roles are involved in the purchasing decision. Know their roles and manners of influence
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
• Note the definitions of the following– Extensive problem solving
• When consumers put much effort into deciding how to satisfy a need
– Limited problem solving• When consumers put some effort
– Routinized response behavior• When he/she regularly selects a particular way of satisfying
a need when it occurs; mostly for purchases where he/she has much experience in how to meet a need
– Low-involvement purchases• For purchases that have little importance or relevance for
the customer
Chapter 5.
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
• Organizational Buying Behavior– New-task buying / A straight rebuy / Modified rebuy
• A straight rebuy is MOT likely to occur forA.A new computer networkB.A pension plan to meet the new legal issue C. Cartridge for the copy machineD.Screen component for a new mobile phone productE. Buying decision from a new vendor
Chapter 5.
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
Chapter 6: Business Buying Behavior
Three types of buying processes: New-task Buying:
Due to new customer need so lots of info needed, many people involved
Straight RebuyRoutine repurchase so no new info required, little time and usually smaller
Modified Rebuy In between purchase with only moderate review
of buying decision
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
Chapter 6: Business Buying Behavior
Few large manufacturers: produce 60%+ of value add; do most buying; centralized locations; clear, defined industries
Services larger in number, spread out, smaller, less formal…
Retailers/wholesalers are purchasing agents for target consumers
Government market often largest of all markets (30% of GDP in US); more set policies in gov’t buying process – e.g. competitive bid systems, approved supplier lists, etc.
get all section slides at: http://mywebspace.wisc.edu/rkamathget all section slides at: http://mywebspace.wisc.edu/rkamath
GOOD LUCK ON THE EXAM!!