marketing 300

1. marketing 300 discussion section get all section slides at: http://mywebspace.wisc.edu/rkamath

2. Announcements?

3. Announcements? • Michael Shermer, author of Mind of the Market • Topic: Irrationality • Place: March 1, 7:30, Union Theater • Tickets: Union Box Office (free!)

4. 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!

5. segments Is this a viable market segment (target market)? women who need new shoes teenagers professional man looking for dress socks diabetics who like sweets middle aged couple looking to buy a house people who like cars young people who look for variety in movie rentals busy mother who wants to improve her health

6. targets and segments What is the difference between a target market and a segment?

7. targets and segments JUNK FOOD MARKET (OVERALL) VARIETY-SEEKERS LATE-NIGHT MUNCHIES SNACKERS QUALITY-SEEKERS HEALTH-CONSCIOUS

8. JUNK FOOD MARKET SEGMENTS VARIETY-SEEKERS LATE-NIGHT MUNCHIES SNACKERS QUALITY-SEEKERS HEALTH-CONSCIOUS

9. JUNK FOOD MARKET SEGMENTS VARIETY-SEEKERS LATE-NIGHT MUNCHIES SNACKERS QUALITY-SEEKERS HEALTH-CONSCIOUS

10. TARGET HEALTH-CONSCIOUS

11. What kind of targeting approach is this? SINGLE TARGET MARKET APPROACH HEALTH-CONSCIOUS

12. What kind of targeting approach is this if you have a single marketing mix? COMBINED TARGET MARKET APPROACH SNACKERS HEALTH-CONSCIOUS

13. What kind of targeting approach is this if you have more than one marketing mix? MULTIPLE TARGET MARKET APPROACH SNACKERS HEALTH-CONSCIOUS

14. Quiz #4 • A requisition • is only used for nonroutine purchases. • is the same as a purchase order. • sets the terms under a negotiated contract. • is a formal contract between a buyer and a seller. • none of the above is true.

15. Quiz #4 • Purchasing managers in business markets (compared to buyers in consumer markets) are generally: • fewer in number. • more technically qualified. • less emotional in their buying motives. • more insistent on dependability and quality. • all of the above.

16. 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) True b) False companies are made of people!

17. 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

18. 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

19. Exam Prep • Don’t write on practice exam, please!

20. exam review 1. Which of these sounds like sales-era marketing? • “We just make stuff; we don’t try to sell it.” • “We make whatever we want, and shove our products down peoples’ throats” • “We do whatever the guys in marketing tell us to” • “We hire hotshot MBAs to find out all the latest trends and then we just copy them.” • “We hang around on Facebook listening in on conversations to figure out how to market to young people”

21. exam review 2. “Price” includes which of the following: • Cost of a product to the company • Markup of a product • Markup and discounts • Markup, discounts, and allowances • Markup, discounts, allowances, and geographic terms

22. exam review 3. Which of the following most describes a “breakthrough opportunity?” • Some guy mixes ingredients in his bathtub and sells it as a Coke knockoff • A greasy sandwich store opens a second location next to a popular bar where college kids get drunk every weekend • A pharmaceutical company spends 12 years and $127 billion coming up with a drug that keeps you from saying dumb stuff • Sven Evans knits handbags and sells them on EBay • Knowing the shape of the economy, a Ford dealership has a sale on all compact cars with broken windshields

23. exam review 4. Phun Pharmaceuticals decides that in addition to selling pills, they want to start selling snowboards. What strategy is this? • Multiple target market • Combined target market • Market development • Diversification • Market Penetration

24. exam review Present products New products Market Penetration Product Development Present markets Market Development Diversification New markets

25. exam review 5. Greasy Black Oil Co. wants to make a pre-packaged oil slick product for thwarting tailgaters. Which should they do first? • Get retailers on board • Figure out the 4 Ps • Start manufacturing the product • Segment the market • Create promotional advertising with snappy catchphrases that people will repeat a lot

26. exam review 6. 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? • Total Quality Management Act • Sherman Act • Magnuson-Moss Act • Terrance-Putnam Act • This is the buyer’s problem. He can sue, but that’s about it.

27. exam review 7. Reference groups would have the most impact on the sales of which category of product? • Shoes • Salad dressing • Hand soap • Coffee • Batteries

28. exam review 8. 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: • Routinized response behavior • Dissonance • Consumer insatiability • Consumer justification • Post-purchase reconsideration

29. exam review 9. 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 solid gold chair for the executive suite • A brand new wi-fi network for the corporate complex • 20 pizzas (extra cheese) delivered to the boss’ office • 5,000 reams of paper • 200 headsets for the new employees they are hiring

30. exam review 10. Which is true about “target marketing”? • Is limited to small sized market • Assumes that all customers are homogeneous • Focuses on reasonably homogeneous market segments • All of the above

31. exam review 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? • Penetration • Product • Promotion • Place • Price

32. exam review 12. Hafasco recently increased its couponing to its present customers. It appears that Hafasco’s is pursuing what kind of opportunity? • Market penetration • Product development • Market development • Mass marketing • Diversification

33. exam review 13. The Sherman Act (1890) focuses on: • Unfair methods of competition • Attempts to monopolize • Deceptive packaging, branding or ads • Product warranties • Clayton Act (1914)

34. exam review 14. Almost 50 percent of the total U.S. income is paid to the ________of U.S. families with the highest incomes. • 20 percent • 30 percent • 50 percent • 80 percent • 95 percent

35. exam review 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: • Selective perception • Learning • Selective retention • Reinforcement • Selective exposure

36. exam review 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: • Routinized response behavior • Intensive problem solving • Limited problem solving • Extensive problem solving

37. exam review 17. Regarding the U.S. population trends in the U.S. consumer market, which of the following is NOT true? • About 13 percent of all Americans move each year. • Some of the areas with the largest populations are losing population. • The overall U.S. population continues to grow rapidly. • The percentage of population in older age groups has increased. • Big targets such as the metro areas are attractive but very competitive.

38. exam review 18. 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? • new task buy • new order buy • depeche mode buy • modified rebuy • modified buy • straight rebuy

39. exam review 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: • An economic influence • Routinized decision-makers • A social class • A lifestyle group • A reference group

40. exam review 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? • $17,000 • $35,000 • $12,000 • $47,000 • $5,000

41. PRO TIP 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!)

42. PRO TIP Please return practice exam when you leave!

43. 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

44. Product Examples • 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)

45. Chapter 1: Intro • Macro-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

46. Chapter 1: Intro • The marketing concept: • Total company effort to achieve customer satisfaction at a profit • The roles/focus of marketing over time • Simple trade era/Sell surplus • Production era/Increase supply • Sales era/Beat competition • Marketing department era/Coordinate and control • Marketing company era/Long-run customer satisfaction

47. Chapter 1: Intro • Customer value = Benefits - Costs (From perspective of the consumer)

48. Chapter 1. • 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.

49. Chapter 2: Strategy Planning • A marketing strategy requires: • Target market • Marketing mix to appeal to target market • Product • Place • Promotion • Price • The marketing plan • contains the strategy along with timing details for implementation

50. Chapter 2: Strategy Planning • Planning an effective strategy and marketing mix involves: • SWOT Analysis • (Strengths, Weaknesses, Opportunities, Threats) • Differentiation • Market Segment