midterm Flashcards
Changing ___ had the most dramatic impact on turning around Nutrisystem (Dawn Zier)
culture
Is the company mission statement the fabric and essence of a company? If not, then what is, instead?
No; culture is the fabric of a company!
What does SWOT analysis stand for?
Strength Weaknesses Opportunity Threats
What is SWOT analysis?
competitive marketing analysis
- strengths and weaknesses (internal we can control)
- opportunities and threats (external)
What does the acronym SMART goal stand for?
specific, measurable, attainable, relevant, time-based goal
How do you calculate market cap?
market cap = stock price * number of outstanding shares
Describe Dawn Zier’s management style.
- numerical milestones (SMART goals)
- focus on culture and rewarding achievement (small wins)
- hands on
Marketing is ____; sales is _____;
marketing is strategic; sales is tactical (sales implements and are the ‘do-ers’
What numeric measure is used to rank the Fortune 500?
Revenue. Top co in fortune 500 makes the most revenue.
Would it be a bad idea to enter the weight loss market in southern USA states? Why, or why not?
Could argue both. No definitive way to find out theoretically without testing it.
Bad: high obesity rates mean very few care about fitness
Good: everyone assumes ^, therefore if you can figure a solution out, you have less starting competition (although competitors will copy you eventually)
Name several barriers to entry (competitive forces)
Capital requirement and advertising expenditures, product identities (Apple has a strong coolness factor & brand), distribution channels (Amazon has a lot of infrastructure you can’t just copy tomorrow), cost to switch (I’m not going to switch to a new car a few months after I just bought one)
In 2016, after over 4 years of operating, was 23andme profitable?
No
If you fail your first product launch, can you relaunch?
No! No such thing as a relaunch!
Which federal agency stopped 23andme from doing business?
FTC
Using secondary market research, what info would you pull from public sources if you were launching a new electric vehicle in the USA?
Secondary market research = publicly available info
so for example: % marketshare of hybrids, historical averages of gas prices, states with largest sales of competitors’ electric vehicles
Using primary market research, what additional info would you pull if you were launching a new electric vehicle in the USA?
Primary research = research that you conduct to find specific answers (usually deeper, “why” questions)
examples: interview 30 car consumers, do a correlative analysis of the influence of climate, gas price, etc. on existing non-EV car purchases
Working for generation x,y? (Social Forces)
gen x,y:
- talented, busy (work/fam), expect a lot from you, intimidated and jealous of you
what to do?
be rational, mature, speak up when you need to
Market research
def: the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions
- supports everything as evidence
blockbuster –> netflix (comp forces ex)
FLANK EM, go around
“Hip Pocket” (board work)
hip pocket=you
20s: learn
30s: burn
40s: earn (more responsibility and accountability more $, lay offs)
50s: survive
Is there such a thing as a re-launch?
fuck no, put all your work and resources into the initial launch.
What’s the purpose of marketing?
To discover the needs and wants of customers and to come up with a strategy to satisfy them
Is it critical that a product is profitable in year 1?
No
Which product life cycle stage is iPad in?
decline stage
List all the stages of the product life cycle.
Introduction -> growth -> maturity -> decline
A positioning statement is ____; a tagline is ____.
Fill in “internal/external”.
A positioning statement is internal; a tagline is external.
You work at company ABC. You fill in a market basket – do you include ABC in the basket?
Yes
How do you calculate profits?
Profits = revenue - expenses
What are two ways to increase market share?
Steal marketshare from competitors or acquire non-consumers
What are the 2 most important marketing and sales metrics?
Market share and sales (profits)
objective measures
Are all consumers created equal?
No; everyone has different needs and wants at a given moment.
What kind of company culture does WD-40 have?
Tribal (family) culture, everyday folks,respectful
CEO traits
IQ Emotional intelligence stamina resilience \+garry ridge (WD40) added: visionary exemplar mentor/learner/teacher generosity with success
Market share in carbonated drinks (board work)
-always put yourself in the market basket
mr pibb
what do we take to the bank?
cash$$
What is some post-purchase consumer behavior?
cognitive dissonance- feeling tension and anxiety after purchase
realizing the value of what you purchased (happy or unhappy)
Psychological impacts on consumer behavior
Racial/ethnic subcultures, lifestyle, personality, motivation, geographic, age etc
West Coast
style, innovation, what you drive
Midwest
where you work, hardworking, family
East Coast
where you were educated, bravado, status
South
college sports team, us vs. you, call everyone not from there a yankee
What’s the rule of 72?
Estimated time in yrs to double your money = 72 / (rate of return in percent)
Example:
7% rate of return (RR) = 10.3yrs to double your money
5% rate of return (RR) = 14.4yrs to double your money
1.5% rate of return (RR) = 48yrs to double your money
ExxonMobil, a gas producing company vs. a gas station.
Which one is a product, which one is a service?
gas station = service
exxonomobil gas = product (tangible good)
Who, in a company, defines the marketing basket?
marketing department with input from sales
Around what % of consumer products are successful in year 1?
3%
How much revenue does a consumer product have to make in year 1 to be considered successful?
50M
Explain how the 80/20 rule applies to the marketing basket
20% of customers usually generate 80% of revenue
What are the components of a positioning statement?
Who (target market),
What (unique value proposition),
Why should people believe you (at least 3 statements here)
You start with 1,000$ principal in year 1. Assuming you have 5% interest (compounded yearly), how much principal do you have AFTER the third year ends? Assume you reinvest your profits.
Year 1: P = $1000
Year 2: P = 1.05$1000 = $1050
Year 3: P = 1.05$1050 = $1102.5
Texas’ persona:
status symbols, feisty, fun, hair
What are some cons of celebrity endorsements?
are newer generations influenced? expensive celebrity is NOT the product could backfire if not done well (ex. pepsi, tiger woods and Buick) done well- Fonz on reverse mortgage
What to do if a product fails?
- if we are in marketing most of the time it is our fault
- very important: R&D, product dev, creates value
- get into field with market research
- launch with everything you’ve got
Five categories and profiles of product adopters
- innovators: higher educated, bran loyalty, like new things, those who camp out at night
- early majority: deliberate, average Joe, very important group to get
- laggards: dont market to this group
Name product types and examples
- high learning: hybrid car
- low learning: razor
- fashion product: fedora
- fad product: pet rock
CEO
high profile, $, work and communicated with wall street, company culture, policy, legal legislation
CMO
5-10 years out (?), dont decide tag lines or commercials etc, do product development, portfolio vision
Marketing VP
product mix, talent observer and identifier, resource allocation
Brand Manager
where do we spend and how do we spend, brand creation, product life cycle management
Creating brand equity
- positive brand awareness
- brands meaning
- elicit proper response
- intense brand loyalty
Good brand name should be…
- suggest product benefits
- memorable + positive
- fit company or product image
- have no legal or regulatory restrictions
- simple and emotional
Apple’s iphone generates 66% of its business. This is good or problematic? Why?
this can be dangerous so Apple should look to diversify
Steve Jobs
- tweaker, ill know it when i see it
- rival Bill Gates
- the face of the company
- partner Wozniak was the creative component that built the computers
10,000 hour rule
- from book “Outliers” by Malcolm Gladwell
- 10k hours of deliberate practice can make you an expert
these three mean the same thing
Customer segmentation
Market segmentation
Consumer markets
Marketing
The activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large
Simple Marketing def
- to discover the needs and wants of prospective customers
2. satisfy them
Want vs. Need
A want is a need that is shaped by a person’s knowledge, culture, and personality
Commercial-centric View
Top to bottom:
- CEO/CMO
- Marketing sales overlapping a little
- Customers
4 P’s
Product
Price
Promotion
Place
Product
Good, service or idea to satisfy the customer’s needs
Price
What is exchanged for the product
Promotion
A means of communication between the seller and buyer
Place
a means for getting the product to the customer
Best Marketer/Sales Person portrayed all time TV?
Don Draper-Mad Men
Target Marketing
one or more specific groups of potential consumers toward which an organization directs its marketing program
Our class culture and style
mix it up, act things out, cover what we want, discuss, question, challenge, get better
What do Visionary Organizations have?
they have:
- core values (stakeholders)
- mission statement or vision
- organizational culture
Southwest Airlines’s value prop?
Value prop is not innovation; it is customer service, gets you to where you need to be
Describe Google
creative, free things, there to have you do your job, they will grind you
Company culture and you
silent killer
or
unrelenting joy
Challenges of market research
- consumers dont really know what they want
- may not be truthful
- may not do what they say they wil do
What are some environmental forces that influence marketing?
Social, economic, technological, competitive, regulatory forces
What are some environmental forces that influence marketing?
Social, economic, technological, competitive, regulatory forces
WD40: stands for what? __________________
In 1993, WD40 was in _______% of U.S. homes?
water displacement (40th try) 80%
How does WD40 keep growing?
- more than 65% or 75 %(article says 65, slides say 75) revenue is outside U.S.
- 80/20, those who use many cans a year
What’s nordstrom’s value prop?
customer service
Is this a SMART goal? If not, why not?
“Be number 1 in total sales”
No: not measurable.
Positioning statement
- is a concise description of your Target Market as well as a compelling picture of how you want that market to perceive your brand
- everything has to align with this
- cornerstone of great marketing
- guidepost for marketing decisions
“Is this a SMART goal? If not, why not?”
By Q4 2017, obtain market leadership position among all San Diego based craft breweries with the Sculpin family brand. Current position is #3 (15%), preceded by Stone IPA (#1 @ 18%) and Ale Smith IPA (#2 @ 16%)
Yes
WD 40- 80/20 rule
we use 40 cents of it a year but their 80/20 customer is the bike shop, car dealership and industrial factories
How does WD40 keep growing?
- more than 65% revenue is outside U.S.
2. 80/20, those who use many cans a year
How is WD40 marketed?
- do you need me? know me? can you buy me?
- position themselves as a multi use product
- buy anywhere
WD 40 stock price
- up 200%
- doubled business in the last ten years
- 2012:$25 , 2016:$123
Determining market opportunities, product positioning, product attributes, customer targets, pricing strategy, post-launch “dip stick”, life-cycle management is up to…
market researchers
Amazon CEO
Jeff Bezos
Walmart CEO
Doug McMillon
Exxon Mobil CEO
Darren Woods
Google CEO
Sundar Pichai
How many fortune 500 companies in San Diego?
2
How many fortune 500 companies in the Bay area?
31 or 32 idk
UCSD tag line
break things better
Vans positioning (4 pillars)
- art
- music
- action sports, skateboaring
- street culture
Vans
the art of creative expression
almost 50% of U.S. GNP is…
services: (tax prep, financial services, medical, educational, consulting, counseling)
Business products
products organizations buy that assist in providing others products for resale
B2B
new products
Most American families buy the same 150 items over and over (supermarkets carry 30,000 SKUs)
why do products fail?
no differentiation, not satisfying needs, bad timing, poor execution of marketing mix: brand name, 4Ps etc
“if your body is moving”
gatorade
Nutri system stock
tripled with Zier
How did nutrisystem boost sales?
- making products available a retail outlets (walmart, amazon)
- people snack
- dieters with special needs,veg and diabetes
- delivery program
compound interest
- not a get rich quick scheme
- businesses with above average dividend yields and long histories of success
Warren buffets portfolio
wells fargo, heinz, coca cola, ibm, amex
Life Expectancy greaseboard session:
where is the highest and lowest life expectancy in the US? Why?
Highest: Colorado, California
Lowest: West Virginia (high smoking), South/North Dakota (native Americans), Mississippi (poor, bad diet)
Life Expectancy greaseboard session:
How long will it take to change the unhealthiness of lowest life expectancy states?
a) years
b) decades
c) generations
generations… very long time
Life Expectancy greaseboard session:
As a marketer, where would you enter the market? Red states or blue states?
What types of product/service categories would provide value?
Blue states; go where people have money and have an interest in life expectancy
Nursing homes, fitness coaches, etc.
Byetta market basket:
What’s byetta?
diabetes drug
Do you have to measure marketshare in dollars revenue only?
False. Can measure it in terms of units of product sold, for example.
or # of prescriptions
Customer deciles in marketing and sales in the diabetes market. What is their range? What does the number mean?
Deciles range from 1 (worst) to 10 (best). Someone in 10 bucket means that this person generates a lot of revenue/prescriptions/whatever.
Know how to draw the decile matrix.
10, 9, …., 1
Management case study:
sales rep wants to move from Fargo to Minneapolis – she has 3yrs sales experience and a great track record. She comes and says there’s an opening in Minneapolis…. wants to move and continue sales there even though it’s new territory… asks you for approval.
Choices:
1) do nothing
2) say yes
3) say no
say yes b/c she’s proven to be valuable. If she were a 3 month rep then say no.
Management case study:
Toronto, Canada
Sent sales trainer to conference. Trainer went to dinner with thought leader Dr J one time and charged his own dinner and Dr J dinner to company card. But we later found out that Dr J wasn’t at the conference.
Sales trainer admitted he took his wife out to dinner and paid using company credit card, apologized for mistake.
Choices:
1) do nothing
2) stern warning
3) fire him
Fire him
