Description\n \n\n\n\n\n\n\n\n Hello\n \n\n I want the solution to be as required in the file\n \n\n\n\nالمملكة العربية السعودية\nوزارة التعليم\nالجامعة السعودية اإللكترونية\nKingdom of Saudi Arabia\nMinistry of Education\nSaudi Electronic University\nDepartment of Business Administration\nCollege of Administrative and Financial Sciences\nAssignment- 2\nMarketing Management (MGT 201)\nDue Date: 12th November’ 2022 @ 23:59\nCourse Name: Marketing Management\nStudent’s Name:\nCourse Code: MGT201\nStudent’s ID Number:\nSemester: 1st\nCRN:\nAcademic Year:2022-23\nFor Instructor’s Use only\nInstructor’s Name: XXXXX\nStudents’ Grade: Marks Obtained/Out of 15\nLevel of Marks: High/Middle/Low\nGeneral Instructions – PLEASE READ THEM CAREFULLY\n•\n•\n•\n•\n•\n•\n•\n•\nThe Assignment must be submitted on Blackboard (WORD format only) via allocated folder.\nAssignments submitted through email will not be accepted.\nStudents are advised to make their work clear and well presented, marks may be reduced for\npoor presentation. This includes filling your information on the cover page.\nStudents must mention question number clearly in their answer.\nLate submission will NOT be accepted.\nAvoid plagiarism, the work should be in your own words, copying from students or other\nresources without proper referencing will result in ZERO marks. No exceptions.\nAll answered must be typed using Times New Roman (size 12, double-spaced) font. No\npictures containing text will be accepted and will be considered plagiarism).\nSubmissions without this cover page will NOT be accepted.\nAssignment-2\nLearning Outcomes:\n1.\n2.\nDevelop critical and analytical thinking necessary to overcome challenges and issues of marketing in the\nchanging global environment. (LO-4)\nUse effective and collaborative interpersonal skills to carry out scientific analysis of consumers’ needs and\nwants to formulate a marketing Plan. (LO-5)\nPart-A\nCase Study\nRead the Chapter Case Study entitled Yogurt Lovers say, “It’s All Greek to Me” from Chapter11 “Product, Branding and Packaging decisions” Page: – 381 given in your textbook –\n“Marketing” (8th Edition) by Dhruv. Grewal and Michael. Levy (2022) and answer the\nfollowing Questions:\nAssignment Question(s):\n1. Generally speaking, what type of product is yogurt? Does your answer change for the\ndifferent product categories that ‘Chobani’ has defined for its offerings? (2 Marks)\n2. Is ‘Chobani’s’ introduction of yogurt for children a brand extension or line extension?\nExplain. (2 Marks)\n3. How is ‘Chobani’ positioning its various product categories currently? How is it\ncommunicating its current positioning strategy? (2 Marks)\nPart-B\nCritical Thinking\nAnswer the following questions based on the concepts discussed in Chapter- 13, 15 and 18\n1. Assume you were hired by the local grocery store to help in assessing its service quality based\non the five service dimensions to determine the overall service quality: reliability,\nresponsiveness, assurance, empathy, and tangibles. How would you go about undertaking this\nproject? (Ch-13) (3 Marks)\n2. Price skimming and market penetration pricing are the two important pricing strategies used by\nMarketers. Ahmad wants to launch his new backpack in the local market. Being a marketer which\npricing strategy you will suggest him to use and why? (Ch-15) (3 Marks)\n3. Do you find any difference between advertising and public relations? How can public relations\ncontribute to a firm’s IMC? Explain with the help of a suitable example.(CH-18) (3 Marks)\nNote:\n1. Answer all the questions based on your understanding from the concepts discussed in the\nclass, PPTs and Text book.\n2. Justify your answers with at least two references for each question.\n3. If plagiarism is more than 25\\% you will get 0 marks for the questions concerned.\nAnswers\nPart-A\n1.\n2.\n3.\nPart-B\n1.\n2.\n3.\nBecause learning changes everything.®\nChapter 1\nOverview of Marketing\nCopyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.\nLearning Objectives\nLearning Objective 1.1 Define the role of\nmarketing.\nLearning Objective 1.2 Describe the evolution of\nmarketing over time.\nLearning Objective 1.3 Describe how marketers\ncreate value for a product or service.\n© McGraw Hill LLC\n3\nWater Bottles\n© McGraw Hill LLC\nCD_works27/Shutterstock\n4\nWhat Is Marketing?\nMarketing is the activity, set of institutions, and processes\nfor creating, capturing, communicating, delivering, and\nexchanging offerings that have value for customers, clients,\npartners, and society at large.\n© McGraw Hill LLC\nAlejandro Rivera/Getty Images\n5\nExhibit 1.1 Core Aspects of Marketing\nAccess the text alternative for slide images.\n© McGraw Hill LLC\n6\nMarketing Is about Satisfying Customer\nNeeds and Wants\nHow does Dove offer value?\n• Dove added the Dove\nMen+Care line and expanded\ninto products for babies.\n• In advertising to male\nconsumers, Dove seeks to\nacknowledge and recognize\nmodern men’s caregiving roles,\nso it can link these\ncommunications to its baby care\nproducts too.\n• Dove seeks to acknowledge\nand recognize modern men’s\ncaregiving roles, so it can link\nthese communications to its\nbaby care products.\n© McGraw Hill LLC\nDove seeks to acknowledge and recognize\nmodern men’s caregiving roles, so it can link\nthese communications to its baby care\nproducts.\nSource: Unilever\n7\nExhibit 1.2: Exchange: The Underpinning of\nSeller-Buyer Relationships\n© McGraw Hill LLC\n8\nExhibit 1.3: The Marketing Mix\n© McGraw Hill LLC\nSource: McGraw-Hill Global Education Holdings, LLC\n9\nMarketing Creates Value through Product,\nPrice, Place, and Promotion Decisions\nThe Marketing Mix:\nThe controllable set\nof decisions or\nactivities that the firm\nuses to respond to\nthe wants of its target\nmarkets.\n© McGraw Hill LLC\n• Product.\n• Price.\n• Promotion.\n• Place.\n10\nProduct: Creating Value\nThe fundamental purpose of\nmarketing is to create value\nby developing a variety of\nofferings, including goods,\nservices, and ideas, to\nsatisfy customer needs.\n• Goods.\n• Services.\n• Ideas.\nMarketing creates value by promoting\nideas, such as bicycle safety.\n© McGraw Hill LLC\nSource: Street Smart, a public safety campaign of Metro, the District of Columbia, Maryland, and Virginia.\n11\nPrice: Capturing Value\nPrice is everything a\nbuyer gives up (money,\ntime, energy) in\nexchange for the\nproduct or service.\nIf you don’t mind sitting in a middle seat and\nputting all your baggage under your seat, flying on\nlow-cost carriers like Frontier is a good value.\n© McGraw Hill LLC\nKateryna Kukota/Alamy Stock Photo\n12\nPlace: Delivering the Value Proposition\nPlace represents all the\nmarketing processes\nnecessary to get the product to\nthe right customer when that\ncustomer wants it.\nPlace more commonly deals\nspecifically with retailing and\nmarketing channel\nmanagement, also known as\nsupply chain management.\nHertz creates customer value by using biometrics to\ncreate a function that recognizes loyal customers\nusing facial, iris, or fingerprint scans.\n© McGraw Hill LLC\nJeff Martin/AP Images\n13\nPromotion: Communicating the Value\nProposition\nPromotion is\ncommunication by a\nmarketer that informs,\npersuades, and reminds\npotential buyers about a\nproduct or service to\ninfluence their buying\ndecisions and elicit a\nresponse.\nBabar books wanted to celebrate the 80th anniversary of the series.\nIt initiated a $100,000 campaign, working in collaboration with toy\nstores and bookstores.\n© McGraw Hill LLC\nBananaStock/Alamy Images\n14\nExhibit 1.4: Marketing Can Be Performed by\nIndividuals and by Organizations\n© McGraw Hill LLC\n15\nMarketing Impacts Various Stakeholders\nCustomers.\nSupply Chain Partners.\nEmployees.\nIndustry.\nSociety.\nThe Great American Milk Drive, run in conjunction with\nFeeding America, seeks to ensure that local food banks are\nsufficiently stocked with nutritious, frequently requested items.\n© McGraw Hill LLC\nSource: America’s Milk Companies\n16\nPROGRESS CHECK (1 of 3)\n1. What is the definition of marketing?\n2. Marketing is about satisfying\nblank.\nblank and\n3. What are the four components of the marketing\nmix?\n4. Who can perform marketing?\n© McGraw Hill LLC\n17\nExhibit 1.5 Marketing Evolution:\nProduction, Sales, Marketing and Value\nPhotos (left to right): Ryan McVay/Photodisc/Getty Images; Clement Mok/Photodisc/Getty Images; Lawrence Manning/Corbis/Getty Images; Ryan McVay/Photodisc/Getty Images;\nMark Dierker/McGraw-Hill\nAccess the text alternative for slide images.\n© McGraw Hill LLC\n18\nValue-Based Marketing\nA Lipstick Option for Those Who Dream of a\nHermès Bag\n© McGraw Hill LLC\n© Justin Sullivan/Getty Images\n19\nValue-Based Marketing Era\n© McGraw Hill LLC\n20\nPROGRESS CHECK (2 of 3)\n1. What are the various eras of marketing?\n© McGraw Hill LLC\n21\nHow Does Marketing Create Value and\nHow Do Firms Become More Value Driven?\nBuild relationships with customers.\nGather and analyze information.\nBalance benefits and costs.\nConnect with customers using social and\nmobile media.\nAccess the text alternative for slide images.\n© McGraw Hill LLC\n22\nValue Stems From Four Main Activities\nAdding Value\nUsing Marketing Analytics\nEmbracing Social and Mobile Marketing\nEthical and Societal Dilemma: Engaging in\nConscious Marketing\nAccess the text alternative for slide images.\n© McGraw Hill LLC\n23\nMarketing Analytics\nCompanies collect massive amounts of data about\nhow, when, why, where, and what people buy.\nKroger collects massive amounts of data about how, when, why, where, and what people buy and\nthen analyzes those data to better serve its customers.\n© McGraw Hill LLC\n© Daniel Acker/Bloomberg/Getty Images\n24\nConnecting With Customers Using Social\nand Mobile Marketing\nSocial media ad\nspending is growing,\nincreasing by 32 percent\nin 2018 alone.\n3.26 billion people link\nto some social media\nsites through their\nmobile devices.\nMake travel arrangements online either\nthrough Facebook or hotels’ mobile app and\ncheck-in is a breeze.\n© McGraw Hill LLC\nErik Isakson/Blend Images/Getty Images\n25\nResolving Ethical and Societal Dilemmas\nConscious Marketing\nSocially Responsible\nFirms\nMaking socially\nresponsible activities an\nintegral component of\ncorporate strategies.\nToo Good To Go is a UK-based app that has\npartnered with 1,381 food stores to match\nhungry customers to restaurants and stores\nwith surplus food that would otherwise go to\nwaste.\n© McGraw Hill LLC\nGuillaume Payen/SOPA Images/LightRocket/Getty Images\n26\nPROGRESS CHECK (3 of 3)\n1. Does providing a good value mean selling at a\nlow price?\n2. How are marketers connecting with customers\nthrough social and mobile media?\n© McGraw Hill LLC\n27\nBecause learning changes everything.\n®\nwww.mheducation.com\nCopyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.\nBecause learning changes everything.®\nChapter 2\nDeveloping Marketing\nStrategies and a Marketing\nPlan\nCopyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.\nLearning Objectives\nLearning Objective 2.1 Define a marketing strategy.\nLearning Objective 2.2 Describe the elements of a marketing plan.\nLearning Objective 2.3 Analyze a marketing situation using SWOT\nanalyses.\nLearning Objective 2.4 Describe how a firm chooses which consumer\ngroup(s) to pursue with its marketing efforts.\nLearning Objective 2.5 Outline the implementation of the marketing\nmix as a means to increase customer value.\nLearning Objective 2.6 Summarize portfolio analysis and its use to\nevaluate marketing performance.\nLearning Objective 2.7 Describe how firms grow their business.\n© McGraw Hill LLC\n3\nPepsiCo\nThe development at PepsiCo reflects careful\nanalysis of the market and efforts to ensure that it\ncontinues to attract a wide range of consumers.\n© McGraw Hill LLC\nVStock / Alamy, Shutterstock/VDB Photos\n4\nWhat is a Marketing Strategy?\nA marketing strategy\nidentifies:\n• A firm’s target market.\n• A related marketing\nmix.\n• The bases on which\nthe firm plans to build\na sustainable\ncompetitive\nadvantage.\n© McGraw Hill LLC\nShutterstock / SergZSV.ZP\n5\nExhibit 2.1: Macro Strategies for Developing\nCustomer Value\nAccess the text alternative for slide images.\n© McGraw Hill LLC\n6\nCustomer Excellence\nRetaining loyal\ncustomers.\nProviding outstanding\ncustomer service.\nDisney’s My Magic system enables users to\nswipe their MagicBand wristbands to get on\nrides, make purchases, and open their hotel\nroom door\n© McGraw Hill LLC\nparrysuwanitch/123RF\n7\nOperational Excellence\nEfficient\noperations\nExcellent\nsupply chain\nmanagement\nStrong\nrelationship\nwith\nsuppliers\n© McGraw Hill LLC\n8\nProduct Excellence\nProvide products with high\nperceived value and\neffective branding and\npositioning.\nBloomberg Businessweek’s\ntop global brands:\n• Apple, Google,\nMicrosoft, Coca-Cola,\nAmazon, Samsung,\nToyota, Facebook,\nMercedes, IBM.\n© McGraw Hill LLC\n© Jacek Lasa / Alamy\n9\nLocational Excellence\nEspecially important for retailers and service providers.\nMany say, “The three most important things in retailing are\nlocation, location, location.”\nCompetitive advantage based on location is not easily\nduplicated. Starbucks makes it difficult for competitors to\nenter a market and find good locations.\n© McGraw Hill LLC\n10\nMultiple Sources of Advantage\nA single strategy (low\nprices or excellent service)\nis usually not enough to\nbuild a sustainable\ncompetitive advantage.\nSouthwest Airlines\n• Provides good service\nat a good value (ontime flights that are\nreasonably priced).\n© McGraw Hill LLC\nCarlos E. Santa Maria/Shutterstock\n11\nPROGRESS CHECK (1 of 3)\n1. What are the various components of a marketing\nstrategy?\n2. List the four macro strategies that can help a\nfirm develop a sustainable competitive\nadvantage.\n© McGraw Hill LLC\n12\nExhibit 2.2: The Marketing Plan\nAccess the text alternative for slide images.\n© McGraw Hill LLC\n13\nStep 1: Define the Business Mission\nPepsiCo’s Mission Statement:\n“To provide consumers around the world with delicious,\naffordable, convenient and complementary foods and\nbeverages from wholesome breakfasts to healthy and\nfun daytime snacks and beverages to evening treats.”\nCoke’s Mission Statement:\n“To refresh the world … To inspire moments of optimism\nand happiness … To create value and make a\ndifference.”\n© McGraw Hill LLC\n14\nStep 1: Conduct a Situation Analysis Using\nSWOT Analysis\n© McGraw Hill LLC\nInternal\nStrengths\nInternal\nWeaknesses\nExternal\nOpportunities\nExternal\nThreats\n15\nExhibit 2.3: Examples of Elements in a SWOT\nAnalysis (1 of 2)\nPepsi\nEnvironment\nEvaluation\nPositive\nNegative\nInternal\nStrengths\n• Diverse brand portfolio\n• Strong celebrity endorsers\n• Successful marketing\ncampaigns with music\nindustry\n• Commitment to social and\nenvironmental charitable\ncauses\nWeaknesses\n• Lower brand awareness than\nrival Coca-Cola\n• Less market share than rival\nCoca-Cola\n• Environmentally unfriendly\npackaging\nExternal\nOpportunities\n• Expanding health food market\n• Growth in global market share\n• Acquisition of new brands\nThreats\n• Water scarcity\n• Popularity of reusable water\nbottles\n• Soda taxes\n• Increasing competition in the\nsnack food market\nSources: Bitesh Bhasin, “SWOT Analysis of Pepsi—PepsiCo SWOT Analysis,” Marketing91, April 3, 2019; Hitesh Bhasin, “SWOT of Coca-Cola,” Marketing91, 2018.\n© McGraw Hill LLC\n16\nExhibit 2.3: Examples of Elements in a SWOT\nAnalysis (2 of 2)\nCocaCola\nEnvironment\nEvaluation\nPositive\nNegative\nInternal\nStrengths\n• High market share\n• Strong brand\n• Strong global presence\n• Excellent customer loyalty\n• Supply chain\nWeaknesses\n• Low diversification\n• Few healthy beverages\nExternal\nOpportunities\n• Emerging countries\n• Diversifying products\n• Bottled water\nThreats\n• Water scarcity\n• Potential market\nsaturation\n• Changes to labeling\nregulations\n• Increasing competitors\nSources: Bitesh Bhasin, “SWOT Analysis of Pepsi—PepsiCo SWOT Analysis,” Marketing91, April 3, 2019; Hitesh Bhasin, “SWOT of Coca-Cola,” Marketing91, 2018.\n© McGraw Hill LLC\n17\nStep 3: Identifying and Evaluating\nOpportunities Using STP\nSegmentation\nTargeting\nPositioning\n© McGraw Hill LLC\n18\nExhibit 2.4: Hertz: Market Segmentation\nIllustration\nSegments\nCars\nOffered\n© McGraw Hill LLC\nSegment 1\nSegment 2\nSegment 3\nSegment 4\nSegment 5\nSingle thrill\nseekers and\ngear heads on\nvacation\nBusiness\ncustomers\nand families\nwho prefer a\nluxurious ride\nEnvironmental\nly conscious\ncustomers\nFamilies\nCommercial\ncustomers\nAdrenaline\nCollection\nPrestige\nCollection\nGreen\nTraveler\nCollection\nSUV/Mini\nvan/4×4\nCollection\nCommercial\nVan/Truck\nCollection\nCorvette ZHZ\nInfiniti QX56\nToyota Prius\nToyota RAV4\nFord Cargo\nVan\nChevrolet\nCamaro\nCadillac\nEscalade\nFord Fusion\nFord Explorer\n19\nMarket Positioning\nChoose which segments to\npursue, then how to position\nwithin those segments.\nDefine the marketing mix\nvariables so target customers\nhave a clear, distinctive, and\ndesirable understanding of the\nproduct compared to competition.\nHertz positions itself as a quality\ncar and truck rental company that\nis the first choice for each target\nsegment.\n© McGraw Hill LLC\nShutterstock/MuchMania\n20\nStep 4: Implement Marketing Mix and Allocate\nResources\n© McGraw Hill LLC\nProduct and Value\nCreation\nPrice and Value\nCapture\nPlace and Value\nDelivery\nPromotion and\nValue\nCommunication\n21\nProduct and Value Creation\nSuccessful products and services are those that\ncustomers perceive as valuable enough to purchase.\nDyson creates value with its innovative products (left). It can therefore charge significantly more than\nthe price charged for conventional fans (right).\nAccess the text alternative for slide images.\n© McGraw Hill LLC\n(Left): Source: Dyson, Inc.; (right): Stockbyte/Getty Images\n22\nPrice and Value Capture\nPrice is what the customer is willing to pay for\na product they perceive as good value.\n© McGraw Hill LLC\nShutterstock / RUBEN M RAMOS\n23\nPlace and Value Delivery\nThe product must be\nreadily accessible\nwhen and where the\ncustomer wants it.\n• Dyson provides\nproduct and place\nvalue.\n• Where are Dyson\nfans available?\n© McGraw Hill LLC\nTop: Shutterstock/TotallyMJ , Bottom: Shutterstock/Maxx-Studio\n24\nPromotion and Value Communication\nAdvertising\nOnline\nmarketing\n(including\nsocial\nmedia)\nPersonal\nselling\nIntegrated\nmarketing\ncommunications\n(IMC)\nDirect\nmarketing\nSales\npromotion\nPublic\nrelations\nAccess the text alternative for slide images.\n© McGraw Hill LLC\n25\nStep 5: Evaluate Performance Using\nMarketing Metrics\nA metric is a measuring\nsystem that quantifies a\ntrend, dynamic, or\ncharacteristic.\nMetrics are used to\nexplain why things\nhappened and also\nproject the future.\n© McGraw Hill LLC\nShutterstock / NicoElNino\n26\nEvaluating Performance\nWho is accountable for\nperformance?\nEXHIBIT 2.5 Performance Metrics: Coke vs. Pepsi\n•\nPerformance\nObjectives, Marketing\nAnalytics, and Metrics.\n•\nFinancial Performance\nMetrics.\n•\nPortfolio Analysis.\nAccess the text alternative for slide images.\n© McGraw Hill LLC\nSource: MarketWatch, Inc.\n27\nExhibit 2.6 Boston Consulting Group Matrix\nPhotos (top left): DenPhotos/Shutterstock; (top right): Kicking Studio/Shutterstock; (bottom left): Sushiman/Shutterstock;\n(bottom right): David Caudery/Tap Magazine/Getty Images\nAccess the text alternative for slide images.\n© McGraw Hill LLC\nP&G\nWebsite\n28\nWhich Quadrant?\nWhether a product is\nclassified as a star or\na question mark has\nprofound implications\non how it is treated\nand supported within\nthe firm.\n© McGraw Hill LLC\nTop: Ksander/Shutterstock; Bottom: Denis Rozhnovsky / Alamy Stock Photo\n29\nPROGRESS CHECK (2 of 3)\n1. What are the five steps in creating a marketing\nplan?\n2. What tool helps a marketer conduct a situation\nanalysis?\n3. What is STP?\n4. What do the four quadrants of the portfolio\nanalysis represent?\n© McGraw Hill LLC\n30\nGrowth Strategies\nExhibit 2.7: Markets/Products and Service Strategies\nAccess the text alternative for slide images.\n© McGraw Hill LLC\n31\nMarket Penetration\nCurrent marketing mix,\nCurrent customers\nMarvel used a market\npenetration strategy by\nexpanding the distribution of\nits films:\n• Theaters.\n• Xfinity.\n• DVDs (in a variety of retail\nlocations).\n© McGraw Hill LLC\nShutterstock/Nestor Rizhniak\n32\nMarket Development\nCurrent Products or\nServices.\nNew Markets.\nMarvel pursues such a\nmarket development\nstrategy when it enhances\nthe viewing of its movies by\nexpanding into more global\nmarkets.\n© McGraw Hill LLC\nKlaus Vedfelt/Getty Images\n33\nProduct Development\nNew product or service.\nCurrent target market.\nMarvel launched several\nsuccessful series on Netflix,\nincluding Jessica\nJones, Daredevil, Iron\nFist, and Luke Cage.\n• By developing series designed\nfor this format, Marvel can\nconnect with its customers in a\nnew and important way.\n© McGraw Hill LLC\nLeft: Dragon Images/Shutterstock, Right: Makistock/Shutterstock\n34\nDiversification\nNew product or service.\nNew market segment.\nRelated vs. unrelated\ndiversification.\n•\nMarvel has pursued related\ndiversiﬁcation with its home décor.\n•\nIf Marvel ventured into the child\nday care service industry, it would\nbe an unrelated diversiﬁcation\nbecause it is so diﬀerent from its\ncore business and therefore very\nrisky.\n© McGraw Hill LLC\nPhotos (top): Interior Design/Shutterstock; (bottom): Ariel Skelley/Photodisc/Getty Images\n35\nPROGRESS CHECK (3 of 3)\n1. What are the four growth strategies?\n2. What type of strategy is growing the business\nfrom existing customers?\n3. Which strategy is the riskiest?\n© McGraw Hill LLC\n36\nBecause learning changes everything.\n®\nwww.mheducation.com\nCopyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.\nBecause learning changes everything.®\nChapter 3\nDigital Marketing: Online,\nSocial, and Mobile\nCopyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.\nLearning Objectives\nLearning Objective 3.1 Describe the 4E framework of digital\nmarketing.\nLearning Objective 3.2 Examine the seven critical elements of online\nmarketing.\nLearning Objective 3.3 Understand the drivers of social media\nengagement.\nLearning Objective 3.4 Understand various motivations for using\nmobile applications.\nLearning Objective 3.5 Recognize and understand the components of\na digital marketing strategy.\nLearning Objective 3.6 Understand the central factors in picking an\ninfluencer partner.\n© McGraw Hill LLC\n3\nHilton\n© McGraw Hill LLC\nRegien Paassen/Shutterstock\n4\nExhibit 3.1: The 4E Framework for Digital\nMarketing\nAccess the text alternative for slide images.\n© McGraw Hill LLC\n5\nExcite the Customer\nOffer must be relevant\nto its targeted customer.\nRelevancy can be\nachieved by providing\npersonalized offers.\nﻋﺮﻭﺽ\nﻋﺮﻭﺽ ﻣﺨﺼﺼﻪ ﻟﻠﻌﻤﻴﻞ\nMarketers use many kinds of digital offers to excite customers,\nand to excite them, an offer must be relevant to its targeted\ncustomer. Lush Cosmetics encourages customers to post\npictures of themselves using its products on social media by\npromising that if they use #LushLife, they might find\nthemselves featured on its official page.\nSource: Lush Cosmetics/Instagram\n© McGraw Hill LLC\n6\nEducate the Customer\nGolden opportunity to\neducate about the\nproduct’s value\nproposition and\ncommunicate offered\nbenefits.\nWhen marketing\nideas, the goal is to\nimprove people’s\nwell-being, along with\nselling the underlying\nconcept.\n© McGraw Hill LLC\nTo educate women about how to perform breast self-exams, the #KnowYourLemons\ncampaign posted pictures of a dozen lemons to teach people about 12 shapes and lumps\nthey should be looking for when they themselves for cancer each month.\nSource: Worldwide Breast Cancer\n7\nExperience the Product or Service\nProvide vivid information\nabout a firm’s goods and\nservices. ﺗﻘﺪﻳﻢ ﻣﻌﻠﻮﻣﺎﺕ ﺣﻴﺔ ﻋﻦ ﺳﻠﻊ ﻭﺧﺪﻣﺎﺕ ﺍﻟﺸﺮﻛﺔ\nSimulate real experiences.\nﻣﺤﺎﻛﺎﺓ ﺍﻟﺘﺠﺎﺭﺏ ﺍﻟﺤﻘﻴﻘﻴﺔ\nSephora maintains its own YouTube channel with dedicated videos that\ndemonstrate how to use specific products like bright pink eyeshadow.\n© McGraw Hill LLC\nSource: Sephora USA, Inc.\n8\nEngage the Customer\nAction, loyalty, and\ncommitment.\nPositively engaged\nconsumers lead to more\nprofitability.\nEngagement can also\nbackfire.\nIKEA engages customers with its “Place” app that enables\ncustomers to select an item from its catalog and then, by\nusing the camera within the app, visualize the item in their\nhome or office.\n© McGraw Hill LLC\nSource: IKEA Systems B.V.\n9\nPROGRESS CHECK (1 of 6)\n1. What are the 4 Es?\n2. What social media elements work best for each\nof the 4 Es?\n© McGraw Hill LLC\n10\nEXHIBIT 3.2: The 7C Online Marketing Framework\nAccess the text alternative for slide images.\n© McGraw Hill LLC\n11\n1. Core Goals\nThe basis of any\nmarketing strategy is its\ngoals.\nDetermine specific\ngoals.\nAlign the goals with the\ntarget market and align\nthe 7Cs with the goals.\n© McGraw Hill LLC\nHasbro has embraced online marketing to reflect its core goals. To\nintroduce this new brand called Hanazuki, it developed an entire\nseries that viewers can watch on YouTube. The Hanazuki page is\nfilled with animation, movement, and bright colors, encouraging\nvisitors to take their time exploring the different characters, watching\nvideos, downloading apps, and perhaps shopping too.\nSource: Hasbro, Inc.\n12\n2. Context Elements\nDesign.\nNavigation.\nMust be in alignment\nwith the target market.\nBecause Walmart’s core goal is to encourage purchases, its commerceoriented website features a simple look and feel. Looking closely at the\ndesign and color scheme, notice that Walmart’s home page aligns with its\nadult target market. It is more traditionally focused on selling Hanazuki\nmerchandise than Hasbro, Inc. with little concern for the brand itself.\n© McGraw Hill LLC\nSource: Walmart Stores, Inc.\n13\n3. Content\nMonitor to ensure\nrelevancy.\nDevise appropriate\nkeywords to improve\norganic search.\nImplement SEM and\npaid search.\nﺑﺤﺚ ﻣﺪﻓﻮﻉ ﻟﻤﺤﺮﻛﺎﺕ ﺍﻟﺒﺤﺚ\nThe content of these messages must resonate with its target market, but\nneed\nnot always showcase merchandise or services, as in the Facebook\nﻋﺸﺎﻥ ﺍﻟﺸﺮﻛﺔ ﺗﻄﻠﻊ ﺍﻭﻝ ﻭﺣﺪﺓ ﻟﻤﺎ ﻧﺒﺤﺚ ﻋﻦ ﻣﻨﺘﺞ\npost from the jewelry firm, Alex and Ani. The company is not showcasing its\njewelry per se, but rather providing a motivational quote that resonates with\nyoung females, its primary target market.\n© McGraw Hill LLC\nSource: Alex and Ani, LLC\n14\n4. Community\nAllow customers to\ninteract.\nUse corporate and\nprofessional blogs.\nEngage in\nCrowdsourcing.\n ﻳﺸﺎﺭﻛﻮﻫﻢ ﺍﻻﻗﺘﺮﺍﺣﺎﺕ,ﻳﺴﺄﻟﻮ ﺍﻟﻨﺎﺱ ﺷﻮ ﺑﺪﻫﻢ ﻣﻨﺘﺠﺎﺕ\nBetabrand uses crowdsourcing by having its customers submit clothing\ndesign ideas and feedback on items before they are manufactured.\n© McGraw Hill LLC\nSource: Betabrand\n15\n5. Communication\nClear, helpful, meaningful content enables effective\ncommunication.\nEnables interacting with, engaging, and educating\nsite visitors.\nProvide a mechanism for customers to\ncommunicate with the firm.\n© McGraw Hill LLC\n16\n6. Commerce\nDesktop usage is greater,\nand conversion rates\nhigher, for online\npurchases.\nThe most loyal customers\nuse multiple channels.\nCustomers want a range of\nonline purchase options.\nThrough Sephora’s mobile app, Beauty Insider account holders can check their\nloyalty points, access past purchase behavior, receive personalized\nrecommendations, scan items while in stores, and much more.\n© McGraw Hill LLC\nSource: Sephora USA, Inc.\n17\n7. Connection\nEngage customers and\nprovide a call to action.\nAllow customers to\ninteract with the firm\ncontinuously.\nEnable positive\nengagement.\nA good website or blog engages customers and provides them with a\ncall to action. Warby Parker connects customers with four call-to-action\nbuttons inviting visitors to: get started, order frames to try on at home,\ntake a quiz, and shop online.\n© McGraw Hill LLC\nSource: Warby Parker\n18\nPROGRESS CHECK (2 of 6)\n1. Describe the components of the 7C online\nmarketing framework.\n2. Differentiate between organic and paid search.\n© McGraw Hill LLC\n19\nExhibit 3.3:\nThe Wheel of Social Media Engagement\n© McGraw Hill LLC\n20\nThe Information Effect\nOutcome in which relevant\ninformation is spread by\nfirms or individuals to other\nmembers of the social\nnetwork.\n© McGraw Hill LLC\nBigTunaOnline/Shutterstock\n21\nThe Connected Effect\nOutcome that satisfies humans’ innate need to connect with\nother people.\n© McGraw Hill LLC\nSource: William Perugini/Shutterstock\n22\nThe Network Effect\nOutcome in which every post is spread instantaneously\nacross social media.\n© McGraw Hill LLC\nSource: Shutterstock/Metamorworks\n23\nThe Dynamic Effect\nInformation is exchanged to network participants through\nback-and-forth communications.\nExamines how people flow in and out of networked\ncommunities as their interests change.\n© McGraw Hill LLC\nRawpixel.com/Shutterstock\n24\nThe Timeliness Effect\nFirms must engage with the customer at the right\nplace and time.\nUsing beacon technology, Coca-Cola is able to engage customers in\na timely manner by offering moviegoers a free Coke at the moment\nthey walk into a movie theater.\n© McGraw Hill LLC\nSource: SeongJoon Cho/Bloomberg/Getty Images\n25\nPROGRESS CHECK (3 of 6)\n1. What are the five drivers of social media\nengagement described in the Wheel of Social\nMedia Engagement?\n© McGraw Hill LLC\n26\nGoing Mobile and Social\nExhibit 3.4: Seven Primary Motivations for Mobile App Usage\nNeed for “Me Time”\nNeed to Socialize\nNeed to Shop\n(showrooming)\nNeed to Accomplish\nNeed to Prepare\nNeed to Discover\nNeed to Self-Express\nWith more than 3 billion downloads, Candy Crush Saga clearly fulfills for\nmany people an important need for unproductive “me time.”\nAccess the text alternative for slide images.\n© McGraw Hill LLC\nSource: Alexat25/Shutterstock\n27\nApp Pricing Models\n© McGraw Hill LLC\n28\nPROGRESS CHECK (4 of 6)\n1. What are the seven types of customer\nmotivations for using mobile apps?\n2. What are the four options for pricing mobile\napps?\n3. What are some of the most popular types of\nmobile applications?\n© McGraw Hill LLC\n29\nHow Do Firms Engage Their Customers?\nExhibit 3.4: Social Media Engagement Process\nﺍﻟﺼﻮﺭﺓ ﻫﻨﺎ ﺍﻓﻀﻞ\nAccess the text alternative for slide images.\n© McGraw Hill LLC\n30\nListen\n———\nListening helps\ndetermine digital\nmarketing objectives and\nstrategies.\nSentimental analysis\nallows marketers to\nanalyze and determine\nconsumers attitudes and\npreferences.\n© McGraw Hill LLC\nOther companies perform their own analyses, effectively leveraging their\nexisting capacities for listening to customers. Zappos is known for its\nremarkable customer service and attracts plenty of buzz about its\nofferings. It takes the information it gathers from listening to customers to\ndesign strategies that emphasize what they like most.\nSource: Zappos.com, Inc.\n31\nAnalyze\n© McGraw Hill LLC\n32\nExhibit 3.5: How to Do a Digital Marketing\nCampaign\nAccess the text alternative for slide images.\n© McGraw Hill LLC\n33\nDo\nDevelop and implement\ncampaigns using social\nmedia.\nEXHIBIT 3.6 Example Facebook Targeting Choices\nEffective implementation\nbased on social and\nmobile media activity.\n© McGraw Hill LLC\nSource: Facebook\n34\nPROGRESS CHECK (5 of 6)\n1. What are the components of a digital marketing\nstrategy?\n© McGraw Hill LLC\n35\nInfluencer Marketing\nA marketing strategy that uses\nopinion leaders, popular on social\nmedia, to drive marketing\nmessages to a targeted audience.\nFirms hire (or encourage) these\nwell-known names to promote\nbrand messages to their networks\nof followers.\nBig-time influencers like\nAriana Grande have millions\nof followers and can\ncommand almost a mil-lion\ndollars for a sponsored post.\n© McGraw Hill LLC\nSource: Lev Radin/Shutterstock\n36\nAssessing the Efficacy of Influencers\nRelevance\nReach\nResponse\nReturn\nInfluencers like Selena Gomez can reach millions of potential\ncustomers for Coca-Cola with an Instagram post like this one, which\ndepicts her drinking a Coke with the lyrics from one of her songs on\nthe bottle.\n© McGraw Hill LLC\nSource: Selena Gomez/Instagram\n37\nExhibit 3.8: Influencer Marketing Chain of\nEvents\nAccess the text alternative for slide images.\n© McGraw Hill LLC\n38\nExhibit 3.9: Types of Influencers\nType of Influencer\nDefinition\nExample\nKey Channels\nAverage Cost per Post\nCelebrity\nLarge following, widely\nrecognized\nSocial media, print,\ntelevision\n$3,000–$500,000\nMicro\nModest following, niche\ninterest\nPosts on social media\nsites, shared promo codes\n$80–$500\nBlog\nWrites for a blog and has\nattracted readers and\nsubscribers with that\ncontent\nReviews on blog, guest\nblog posts\n$400–$5,500\nSocial media\nPopular on social platforms\n(Instagram, YouTube,\nTwitter) among followers in\nspecific target audiences\nKey opinion leader or\nexpert in a specific field\nNespresso relies heavily on\nGeorge Clooney to promote its\nproducts in marketing across\nplatforms, leveraging his cool\nimage to enhance its appeal but\nalso his reputation for\nenvironmental sustainability to\npromote its own efforts along these\nlines\nNUX Active (athletic clothing\nbrand) worked with Sydney\nLoveleigh Nelson, whose health\nand fitness posts have earned her\nabout 21,000 followers\nThe FaceGym spa sponsored a\nblog post by lifestyle blogger\nHannah Bronfman to provide\ninformation about its services and\ntreatments\nLaCroix worked with nutritionist\nJoy Bauer to create a Twitter post\nof a recipe she had created, using\nthe product\nBoxyCharm, a subscription beauty\nbox service, worked with Kandee\nJohnson, a professional makeup\nartist, to make videos that\nexplained each product included in\na box\nPictures posted with the\nproduct, shared hashtags,\nvideos featuring the\nproduct\nSocial media, tutorials,\nreviews, blog posts,\nsponsored print articles,\narticles in academic\njournals\n$100–$500,000\nSpecialized\n$500–$5,000\nSource: Kristen Baker, “What Will Influencer Marketing Look Like in 2020?,” HubSpot, December 2, 2019, https://blog.hubspot.com/marketing/how-to-work-with-influencers\n© McGraw Hill LLC\n39\nEthical Considerations for Influencer Marketing\nFraudulent Influence\n• The incentive to boost follower numbers accordingly has led to\nvarious unethical behaviors.\nDisclosing Advertising\n• Intent if an influencer is being paid to promote a product, that\ninformation should be clear in the post.\nSincerity\n• Effective influence attempts require followers to believe that the\ninfluencer actually likes and appreciates the product.\n© McGraw Hill LLC\n40\nPROGRESS CHECK (6 of 6)\n1. How should firms choose and assess the efficacy\nof influencers?\n© McGraw Hill LLC\n41\nBecause learning changes everything.\n®\nwww.mheducation.com\nCopyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.\nBecause learning changes everything.®\nChapter 5\nAnalyzing the Marketing\nEnvironment\nCopyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.\nLearning Objectives\nLearning Objective 5.1 Outline how customers, the\ncompany, competitors, corporate partners, and the\nphysical environment affect marketing strategy.\nLearning Objective 5.2 Explain why marketers must\nconsider their macroenvironment when they make\ndecisions.\nLearning Objective 5.3 Identify various social trends that\nimpact marketing.\nLearning Objective 5.4 Examine the technological\nadvances that are influencing marketers.\n© McGraw Hill LLC\n3\nExhibit 5.2: Understanding the Marketing\nEnvironment\nAccess the text alternative for slide images.\n© McGraw Hill LLC\n4\nExhibit 5.2: The Immediate Environment\n© McGraw Hill LLC\n5\nCompany Capabilities\nSuccessful marketing\nfirms focus on\nsatisfying customer\nneeds that match their\ncore competencies.\nCorning initially made its name by producing the glass enclosure to encase\nThomas Edison’s lightbulb. But by successfully leveraging its core\ncompetency in glass manufacturing while also recognizing marketplace\ntrends toward mobile devices, Corning shifted its focus.\n© McGraw Hill LLC\nSomchai Som/Shutterstock\n6\nCompetitors\nKnow their strengths,\nweaknesses, and likely\nreactions to firm’s\nmarketing activities.\n© McGraw Hill LLC\n10000 Hours/Getty Images\n7\nCorporate Partners\nParties that work\nwith the focal firm.\nNau works with\nmanufacturers to\ndevelop clothing\nfrom sustainable\nmaterials.\nNau works with its corporate partners to develop socially\nresponsible outdoor (left) and urban (right) apparel.\n© McGraw Hill LLC\n(Left): Philipp Nemenz/Getty Images; (right): PeopleImages/Getty Images\n8\nPhysical Environment\nSustainable development:\nIncludes land, water, air, and\nliving organisms.\nProducts and services are\ninfluenced by how they are\nused in the physical\nenvironment, and in turn they\ncan also influence the physical\nenvironment.\nExamples:\n• Energy Trends.\n• Greener Practices and\nGreen Marketing.\n• Greenwashing.\n© McGraw Hill LLC\nCaia Image / Image Source\n9\n17 Global Goals of Sustainable Development\nEXHIBIT 5.3 Global Goals of Sustainable Development\nFrom the United Nations, “Sustainable Development Goals: 17 Goals to Transform Our World,” Last Modified March 18, 2019. The content of this\npublication has not been approved by the United Nations and does not reflect the views of the United Nations or its officials or Member States.\nhttps://www.un.org/sustainabledevelopment/news/communications-material/.\nAccess the text alternative for slide images.\n© McGraw Hill LLC\n10\nPROGRESS CHECK (1 of 2)\n1. What are the components of the immediate\nenvironment?\n© McGraw Hill LLC\n11\nMacroenvironmental Factors\nEXHIBIT 5.4 The Macroenvironment\n© McGraw Hill LLC\n12\nCulture\nShared meanings, beliefs, morals, values, and customs of a group of\npeople transmitted by words, literature, and institutions.\nCountry Culture\n• Subtler aspects can be difficult to navigate.\n• Sometimes best answer is to establish universal appeal within specific\nidentities of country culture.\nRegional Culture\n• For national and global chains, particularly important to cater to\nregional preferences.\n• McDonald’s – slightly different variations of staple menu.\n© McGraw Hill LLC\n13\nDemographics\nCharacteristics of the human\npopulation and segments,\nespecially those used to\nidentify consumer markets.\nProvides an easily\nunderstood snapshot of the\ntypical consumer in a specific\ntarget market.\nMarketers use data about\nconsumers to target offers.\ncensus.gov\n© McGraw Hill LLC\nShutterstock / astel design\n14\nExhibit 5.5: Generational Cohorts\nGenerational\ncohort\nGen α\nGen Z\nGen Y\nGen X\nBaby\nBoomers\nRange of birth years\n2010–\n2025\n1997–\n2009\n1981–\n1996\n1965–\n1980\n1946–\n1964\nAge in 2020\n0–10\n11–23\n24–39\n40–55\n56–74\nMillennials and the Rise of the Experience Economy\nAccess the text alternative for slide images.\n© McGraw Hill LLC\n15\nIncome\nPurchasing power is tied\nto income.\nMarketing opportunities\nexist across the broad\nrange of income\ndistribution.\nSC Johnson targets the bottom of the\nincome pyramid by selling pest control\nproducts in Ghana.\n© McGraw Hill LLC\nNNehring/iStock/Getty Images\n16\nEducation\nEducation is related to income, which determines\nspending power.\n© McGraw Hill LLC\nMonkey Business Images/Shutterstock\n17\nGender\nMale/female roles have\nbeen shifting.\nMarketing has changed\nto reflect these shifts.\n• Firms may need to be\ncareful about gender\nneutrality in\npositioning their\nproducts.\n© McGraw Hill LLC\nGorodenkoff/Shutterstock\n18\nEthnicity\nApproximately 80\\% of\nall population growth in\nthe next 20 years is\nexpected to come from\nminority communities\nBy 2030 the Hispanic\npopulation in the U.S. is\nexpected to reach more\nthan 72 million.\n© McGraw Hill LLC\nImage Source/Getty Images\n19\nSocial Trends\nSustainability\nHealth and Wellness\nEfficient Utilization and\nDistribution of Food\n© McGraw Hill LLC\n20\nSustainability\nUN Sustainable\nDevelopment Goals\nfocus on social issues\nfor basic needs.\nCertifications from\nvarious agencies may\nbe important.\n© McGraw Hill LLC\npixelliebe/Shutterstock\n21\nHealth and Wellness\nChild and adult obesity\nNew markets focused\non healthy living\nMobile apps that\nsupport health and\nwellness\n© McGraw Hill LLC\nShutterstock/Rawpixel.com\n22\nEfficient Utilization and Distribution of Food\nDiet-related Products\nReducing Hunger\nReducing Food Waste\n© McGraw Hill LLC\nSteve Cukrov / Alamy\n23\nTechnological Advances\nTechnology impacts every aspect of marketing:\n• New products and services.\n• New forms of communication.\n• New retail channels.\nGrowing importance of mobile devices\nNew cutting-edge technology:\n• Artificial Intelligence.\n• Robotics.\n• Internet of Things (IoT).\n• Privacy Concerns.\nPepper the robot is used in restaurants, hotels, and coffee shops.\n© McGraw Hill LLC\nDani Metaz/Shutterstock\n24\nEconomic Situation\nAffects the way consumers buy products and services and\nspend money.\nMonitor the economic situation in home country and abroad.\nMajor factors to monitor:\n• Inflation.\n• Foreign currency fluctuations.\n• Interest rates.\nCustomers formed in line to bank counter\nConsumer Confidence Index\n© McGraw Hill LLC\nHiya Images/Corbis/Getty Images\n25\nPolitical/Legal Environment\n1\nComprises political parties,\ngovernment organizations,\nand legislation and laws.\nFirms must understand and\ncomply with\nlegislation regarding:\n• Fair competition.\n• Consumer protection.\n• Industry-specific regulation.\n© McGraw Hill LLC\nolegdudko © 123RF.com\n26\nExhibit 5.6: Consumer Protection Legislation\n(1 of 2)\nYear\nLaw\n1906\nFederal Food and Drug Act\n1914\n1966\n1966\n1967\n1972\n© McGraw Hill LLC\nDescription\nCreated the Food and DrugAdministration (FDA);\nprohibited the manufacture or sale of adulterated or\nfraudulently labeled food and drug products.\nFederal Trade Commission Act Established the Federal Trade Commission (FTC) to\nregulate unfair competitive practices and practices that\ndeceive or are unfair to consumers.\nFair Packaging and Labeling Act Regulates packaging and labeling of consumer goods;\nrequires manufacturers to state the contents of the\npackage, who made it, and the amounts contained\nwithin.\nProhibits the sale of harmful toys and components to\nChild Protection Act\nchildren; sets the standard for child- resistant\npackaging.\nFederal Cigarette Labeling\nRequires cigarette packages to display this warning:\nand Advertising Act\n“Warning:The Surgeon General Has Determined That\nCigarette Smoking Is Dangerous to Your Health.”\nCreated the Consumer Product Safety Commission\nConsumer Product Safety Act\n(CPSC), which has the authority to regulate safety\nstandards for consumer products.\n27\nExhibit 5.6: Consumer Protection Legislation\n(2 of 2)\nYear\nLaw\n1990\nChildren’s Television Act\nDescription\n2003\nLimits the number of commercials shown during\nchildren’s programming.\nNutrition Labeling and Education Requires food manufacturers to display nutritional\nAct\ncontents on product labels.\nRegulates fraudulent activities conducted over the\nTelemarketing Sales Rule\ntelephone. Violators are subject to fines and actions\nenforced by the FTC.\nControlling the Assault of NonProhibits misleading commercial e-mail, particularly\nSolicited Pornography and\nmisleading “subject” and “from” lines.\nMarketing Act of 2003 (CANSPAMAct)\nAmendment to the\nEstablishes a National Do Not Call Registry, requiring\nTelemarketing Sales Rule\ntelemarketers to abstain from calling consumers who\nopt to be placed on the list.\nDo Not Spam Law\nCreated to reduce spam or unwarranted e-mails.\n2010\nFinancial Reform Law\n1990\n1995\n2003\n2003\n© McGraw Hill LLC\nCreated the Consumer Financial Protection Bureau,\nwhose aim is to enforce appropriate consumer-oriented\nregulations on a number of financial firms such as banks,\nmortgage businesses, and payday and student lenders.\nIt also set up the Financial Services Oversight Council to\nact as an early warning system.\n28\nResponding to the Environment\nImplement strategies\nthat respond to multiple\nenvironmental forces.\nMarketers that succeed\nare the ones that\nrespond quickly,\naccurately, and\nsensitively to\nconsumers.\n© McGraw Hill LLC\nt_kimura/Getty Images\n29\nPROGRESS CHECK (2 of 2)\n1. What are the six key macroeconomic factors?\n2. Differentiate between country culture and\nregional culture.\n3. What are some important social trends shaping\nconsumer values and shopping behavior?\n© McGraw Hill LLC\n30\nBecause learning changes everything.\n®\nwww.mheducation.com\nCopyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.\nBecause learning changes everything.®\nChapter 6\nConsumer Behavior\nCopyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.\nLearning Objectives\nLearning Objective 6.1 Articulate the steps in the consumer\nbuying process.\nLearning Objective 6.2 Describe the difference between functional and\npsychological needs.\nLearning Objective 6.3 Describe factors that affect information search.\nLearning Objective 6.4 Discuss postpurchase outcomes.\nLearning Objective 6.5 List the factors that affect the consumer\ndecision process.\nLearning Objective 6.6 Describe how involvement influences the\nconsumer decision process.\n© McGraw Hill LLC\n3\nExhibit 6.1: The Consumer Decision Process\n© McGraw Hill LLC\n4\nNeed Recognition\nWants are goods or services that are not necessarily needed but are\ndesired.\n• Regardless of the level of your hunger, your desire for ice cream will\nnever be satisﬁed by any type of salad.\nTypes of needs\n• Function needs\n• Psychological needs\nWhat needs does a BMW K1600 satisfy?\n© McGraw Hill LLC\nBill Pugliano/Getty Images\n5\nSearch for Information\nInternal and external searches for information\n© McGraw Hill LLC\n© Image Source, all rights reserved.\n6\nFactors Affecting\nConsumers’ Search Processes\nPerceived Benefits\n© McGraw Hill LLC\nPerceived Costs\nShutterstock / bleakstar\n7\nThe Locus of Control\nInternal locus of control =\nmore search activities\nExternal locus of control =\nfate or external factors\n© McGraw Hill LLC\n8\nActual or Perceived Risk\n© McGraw Hill LLC\n9\nEvaluation of Alternatives: Attribute Sets\nUniversal\nRetrieval\nEvoked\n© McGraw Hill LLC\n10\nEvaluation of Alternatives\nWhat are some of the features of a vacation\nthat would in your evaluative criteria?\n© McGraw Hill LLC\nShutterstock / Juancat\n11\nExhibit 6.2: Consumer Decision Rules\nCompensatory Multi-Attribute Model for Buying Cereal\nIf the consumer makes a decision using a compensatory\ndecision rule, which cereal will they choose?\nTaste\nCalories\nNatural/Organic\nClaims\nPrice\nOverall\nScore\nCheerios\n10\n8\n6\n8\n8.2\nPost\n8\n9\n8\n3\n7.1\nKashi\n6\n8\n10\n5\n7.2\nIf the consumer makes a decision based only on Natural or\nOrganic claims, which cereal will they choose?\n© McGraw Hill LLC\n12\nChoice Architecture\nImpulse products\nNudge\nDefaults\n© McGraw Hill LLC\nLeft: stocking © 123RF.com; Right: Iakov Filimonov/Shutterstock; Bottom: Shutterstock/ever\n13\nPurchase and Consumption\n© McGraw Hill LLC\n14\nExhibit 6.3: Components of Post purchase\nOutcomes\n© McGraw Hill LLC\n15\nPost purchase Customer Satisfaction\n• Build realistic expectations, not too high and not too\nlow.\n• Demonstrate correct product use—improper usage\ncan cause dissatisfaction.\n• Stand behind the product or service by providing\nmoney-back guarantees and warranties.\n• Encourage customer feedback, which cuts down on\nnegative word of mouth and helps marketers adjust\ntheir offerings.\n• Periodically make contact with customers and thank\nthem for their support.\n© McGraw Hill LLC\n16\nPost purchase Cognitive Dissonance\nMore likely for products that are:\n• Expensive.\n• Infrequently purchased.\n• Do not work as intended.\n• Associated with high levels\nof risk.\nFirms attempt to reduce\ndissonance by reinforcing the\ndecision:\n• Return policies.\n• Thank-you letters.\n• Congratulations letters.\n• Tags on garments.\n© McGraw Hill LLC\nShutterstock/Atstock Productions\n17\nPost purchase Customer Loyalty\nMarketers attempt to\nsolidify a loyal\nrelationship.\nFirms use analytics\nsoftware and customer\nrelationship\nmanagement (CRM)\nprograms to acquire and\nretain loyal customers.\nMarketers, such as Amazon, owners of Whole Foods, collect customer\ninformation for their CRM programs from their loyalty cards.\n© McGraw Hill LLC\nSmith Collection/Gado/Getty Images\n18\nPost purchase\nUndesirable Consumer Behavior\nNegative word of mouth\n•\nPersonal blogs, Twitter,\ncorporate websites.\nCompanies use listening\nsoftware to identify negative\nword of mouth.\nIf a customer believes a\ncomplaint will result in\npositive action, negative\nword of mouth is less likely.\n© McGraw Hill LLC\nWhirlpool posts good as well as bad comments on Twitter. It\nbelieves that posting negative comments opens up\ndiscussions and emphasizes the proactive measures the\ncompany is taking to remedy service or product failures.\nSource: Whirlpool\n19\nPROGRESS CHECK (1 of 3)\n1. Name the five stages in the consumer decision process.\n2. What is the difference between a need and a want?\n3. Distinguish between functional and psychological needs.\n4. What are the various types of perceived risk?\n5. What are the differences between compensatory and\nnoncompensatory decision rules?\n6. How do firms enhance post purchase satisfaction and\nreduce cognitive dissonance?\n© McGraw Hill LLC\n20\nFactors Influencing the\nConsumer Decision Process\nEXHIBIT 6.4 Factors Affecting the Consumer Decision Process\nAccess the text alternative for slide images.\n© McGraw Hill LLC\n21\nPsychological Factors: Motives\nEXHIBIT 6.5 Maslow’s Hierarchy of Needs\n© McGraw Hill LLC\n22\nPsychological Factors: Attitude\nCognitive.\nAffective.\nBehavioral.\n© McGraw Hill LLC\nPixel-Shot/Shutterstock\n23\nPsychological Factors: Perception\nSelection.\nOrganization.\nInterpretation.\nHow has society’s perception of people with\ntattoos changed in recent years?\n© McGraw Hill LLC\nA. and I. Kruk/Shutterstock\n24\nPsychological Factors:\nLearning and Memory\n© McGraw Hill LLC\n25\nPsychological Factors: Lifestyle\nLifestyle involves\ndecisions in spending\ntime and money.\nActual vs. Perceived\nLifestyle\n© McGraw Hill LLC\nShutterstock/STUDIO DREAM\n26\nSocial Factors: Family\nFirms must consider how\nfamilies make purchase\ndecisions and understand\nhow various family\nmembers might influence\nthese decisions.\nWhen families make\npurchase decisions, they\noften consider the needs\nof all the family members.\n© McGraw Hill LLC\nPeter Muller\n27\nSocial Factors: Reference Groups\n© McGraw Hill LLC\n28\nSocial Factors: Culture\nThe shared meanings,\nbeliefs, morals, values, and\ncustoms of a group of people.\nLike reference groups,\ncultures influence consumer\nbehavior.\nA cultural group might be as\nsmall as a reference group at\nschool or as large as a\ncountry or religion.\n© McGraw Hill LLC\nJacob Lund/Shutterstock\n29\nSituational Factors\nPurchase Situation.\nSensory Situation.\nTemporal State.\n© McGraw Hill LLC\n\n© Fancy / Alamy\n30\nSensory Situation\nVisual.\nAuditory.\nOlfactory.\nTactile.\nTaste.\n© McGraw Hill LLC\n© Niall McDiarmid / Alamy\n31\nPurchase Situation\nSituational factors may influence your purchase\ndecisions.\nIf you are buying jewelry for yourself, you might browse the clearance counter at Kay Jewelers (left). But\nif you are buying a gift for your best friend’s birthday, you may go to Tiffany & Co (right).\n© McGraw Hill LLC\n© Niall McDiarmid / Alamy\n32\nTemporal State\nA purchase situation may have different appeal\nlevels depending on time of day and the type of\nperson a consumer is.\nMood swings can alter consumer behavior.\n© McGraw Hill LLC\noatawa/Shutterstock\n33\nPROGRESS CHECK (2 of 3)\n1. What are some examples of specific needs\nsuggested by Maslow’s hierarchy of needs?\n2. Which social factors likely have the most\ninfluence on (a) the purchase of a new outfit for a\njob interview and (b) the choice of a college to\nattend?\n3. What situational factors do firms use to influence\nconsumer purchase behavior?\n© McGraw Hill LLC\n34\nInvolvement and Consumer Buying Decisions\nExhibit 6.6: Elaboration Likelihood Model\nAccess the text alternative for slide images.\n© McGraw Hill LLC\n35\nInvolvement and Consumer Buying Decisions\nTypes of Buying Decisions\nExtended Problem Solving\nLimited Problem Solving\n• Impulse Buying.\n• Habitual Decision\nMaking.\n© McGraw Hill LLC\nJeff Greenough/Blend Images/Getty Images\n36\nPROGRESS CHECK (3 of 3)\n1. How do low- versus high-involvement consumers\nprocess the information in an advertisement?\n2. What is the difference between extended versus\nlimited problem solving?\n© McGraw Hill LLC\n37\nBecause learning changes everything.\n®\nwww.mheducation.com\nCopyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.\nBecause learning changes everything.®\nChapter 7\nBusiness-to-Business\nMarketing\nCopyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.\nLearning Objectives\nLearning Objective 7.1 Describe the ways in which\nbusiness-to-business (B2B) firms segment their\nmarkets.\nLearning Objective 7.2 List the steps in the B2B buying\nprocess.\nLearning Objective 7.3 Identify the roles within the buying\ncenter.\nLearning Objective 7.4 Describe the different types of\norganizational cultures.\nLearning Objective 7.5 Detail different buying situations.\n© McGraw Hill LLC\n3\nExhibit 7.1: B2B Markets\n© McGraw Hill LLC\n4\nManufacturers and Service Providers\nBuy raw materials, components, or parts.\nManufacture their own goods and ancillary services.\nGerman-based Volkswagen Group, the largest auto\nmanufacturer in Europe, owns and distributes numerous brands.\n© McGraw Hill LLC\nrvlsoft/Shutterstock & Alexander Kirch/Shutterstock\n5\nResellers\nResellers are marketing\nintermediaries that resell\nmanufactured products\nwithout significantly\naltering their form.\n• Wholesalers\n• Distributors\n• Retailers\n© McGraw Hill LLC\nSyda Productions/Shutterstock\n6\nInstitutions\nHospitals, educational\ninstitutions, and\nreligious organizations\nExamples of purchases\nby institutions:\n•\n•\n•\n•\n•\n•\nTextbooks.\nCapital construction.\nEquipment.\nSupplies.\nFood.\nJanitorial services.\n© McGraw Hill LLC\nWitthaya Prasongsin/Moment/Getty Images\n7\nGovernment\nIn most countries,\ngovernment is one the\nlargest purchasers of goods\nand services.\nLocal, state, and federal\ngovernments.\nThe U.S. government\nspends approximately $4\ntrillion annually; Department\nof Defense works with\ncybersecurity firms.\n© McGraw Hill LLC\nWright Studio/Shutterstock\n8\nPROGRESS CHECK (1 of 4)\n1. What are the various B2B markets?\n© McGraw Hill LLC\n9\nThe B2B Buying Process\nEXHIBIT 7.2 Business-to-Business Buying Process\nAccess the text alternative for slide images.\n© McGraw Hill LLC\n10\nStage 1: Need Recognition\nThe B2B process begins\nwith need recognition.\nCan be generated\ninternally or externally.\n© McGraw Hill LLC\nstockbroker/123RF\n11\nStage 2: Product Specification\nAfter recognizing the\nneed and considering\nalternative solutions,\ncreate a list of potential\nspecifications.\nUsed by\nsuppliers/vendors to\ndevelop proposals.\n© McGraw Hill LLC\nGetty Images/Hero Images\n12\nStage 3: RFP Process\nRequest for Proposal\nVendors or suppliers are invited to bid on supplying\nrequired components and services.\nPurchasing company may simply post its RFP\nneeds on its website, work through various B2B web\nportals, or inform their preferred vendors directly.\nContracts Opportunities\n© McGraw Hill LLC\n13\nStep 4: Proposal Analysis, Vendor\nNegotiation, and Selection\nThe buying organization\nevaluates all the\nproposals received in\nresponse to an RFP.\nOften several vendors\nare negotiating against\neach other.\nConsiderations other\nthan price play a role in\nfinal selection.\n© McGraw Hill LLC\nShironosov/Getty Images\n14\nStep 5: Order Specification\nFirm places the order\nwith its preferred\nsupplier (or suppliers).\nThe exact details of the\npurchase are specified,\nincluding penalties for\nnoncompliance.\nAll terms are detailed\nincluding payment.\n© McGraw Hill LLC\nShutterstock / Bacho\n15\nStage 6: Vendor Performance Assessment\nUsing Metrics\nEXHIBIT 7.3: Evaluating a Vendor’s Performance\n(1)\nKey Issues\n(2)\nImportance\nScore\n(3)\nVendor’s\nPerformance\n(4)\nImportance ×\nPerformance\n(2) × (3)\nCustomer Service\n0.40\n5\n2.0\nIssue Resolution\n0.20\n4\n0.8\nDelivery\n0.10\n5\n0.5\nQuality\n0.30\n3\n0.9\nTotal\n1.0\n© McGraw Hill LLC\n4.2\n16\nPROGRESS CHECK (2 of 4)\n1. Identify the stages in the B2B buying process.\n2. How do you perform a vendor analysis?\n© McGraw Hill LLC\n17\nThe Buying Center\nExhibit 7.4: Buying Center Roles\n© McGraw Hill LLC\n18\nExample of Buying Center Roles for a Hospital\nInitiator: Doctor\nInfluencer: Medical device supplier, pharmacy\nDecider: Hospital\nBuyer: Materials manager\nUser: Patient\nGatekeeper: Insurance company\n© McGraw Hill LLC\n19\nOrganizational Culture\nEXHIBIT 7.5 Organizational Buying Culture\n© McGraw Hill LLC\n20\nBuilding B2B Relationships\nThere are a multitude of ways to enhance B2B\nrelationships, including the following examples:\n• Blogs and social media (LinkedIn, Twitter, Snapchat)\ncan:\n• Build awareness.\n• Provide search engine results.\n• Educate clients about products and services.\n• “Warm up” a seemingly cold corporate culture.\n• White papers prepared by B2B marketers provide\ninformation while not appearing as promotion.\n© McGraw Hill LLC\n21\nPROGRESS CHECK (3 of 4)\n1. What are the six buying roles?\n2. What are the types of cultures that exist in\nbuying centers?\n© McGraw Hill LLC\n22\nBuying Situations\nEXHIBIT 7.6 Buying Situations\n© McGraw Hill LLC\n23\nNew Buy\nMost likely when purchasing for the first time.\nUsually quite involved.\nThe buying center will probably use all six steps in\nthe buying process and involve many people in\nthe buying decision.\n© McGraw Hill LLC\n24\nModified Rebuy\nPurchasing a similar\nproduct but changing\nspecifications such as\nprice, quality level,\ncustomer service level,\noptions, etc.\nCurrent vendors have\nan advantage.\n© McGraw Hill LLC\nShutterstock/BabLab\n25\nStraight Rebuys\nBuying additional units of products that have been\npreviously purchased.\nMost B2B purchases fall into this category.\nUsually, the buyer is the only member of the buying\ncenter involved.\n© McGraw Hill LLC\n26\nIdentify the Type of Buying Situation\nThe manager for a Kroger supermarket considers reordering items for his store. He will negotiate price\nconcession and quality improvements. The manager\nis engaging in a(n)\nblank situation.\nDenise is sharing with coworkers, “This customer just\nmade another big order, and they just keep on\ncoming. Denise is likely selling to a customer in what\nkind of buying situation?\nBenjamin, the new sales manager for Burns &\nCompany, was alarmed that the representatives used\npaper to track customer information. He made a\ndecision to upgrade to a CRM system. For Benjamin,\nthis represented a(n)\nblank situation.\n© McGraw Hill LLC\n27\nPROGRESS CHECK (4 of 4)\n1. How do new buy, straight rebuy, and modified\nrebuy differ?\n© McGraw Hill LLC\n28\nBecause learning changes everything.\n®\nwww.mheducation.com\nCopyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.\nBecause learning changes everything.®\nChapter 8\nGlobal Marketing\nCopyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.\nLearning Objectives\nLearning Objective 8.1 Describe the components of a\ncountry market assessment.\nLearning Objective 8.2 Understand the marketing\nopportunities in BRIC countries.\nLearning Objective 8.3 Identify the various market entry\nstrategies.\nLearning Objective 8.4 Highlight the similarities and\ndifferences between a domestic marketing strategy\nand a global marketing strategy.\n© McGraw Hill LLC\n3\nGlobalization\nThe processes by\nwhich goods,\nservices, capital,\npeople, information,\nand ideas flow\nacross national\nborders.\n© McGraw Hill LLC\ndeepblue4you/Getty Images\n4\nAssessing Global Markets\nEXHIBIT 8.1 Components of a Country Market Assessment\nAccess the text alternative for slide images.\n© McGraw Hill LLC\n5\nEvaluating the General Economic Environment\nUsing Economic Metrics\n© McGraw Hill LLC\nTrade deficit or\nsurplus\nGross domestic\nproduct (GDP)\nGross national\nincome (GNI)\nPurchasing\npower parity\n(PPP)\n6\nEvaluating Market Size\nand Population Growth Rate\nPopulation growth dispersal: strong demand\nin BRIC (Brazil, Russia, India, China) nations\nDistribution of the population within a\nparticular region: rural vs. urban\n© McGraw Hill LLC\nShutterstock / Pablo Scapinachis\n7\nExhibit 8.2 Big Mac Index\nSource: The Economist, “The Big Mac Index,” July 13, 2017,\nwww.economist.com/content/big-mac-index.\nAccess the text alternative for slide images.\n© McGraw Hill LLC\nMcGraw-Hill Global Education Holdings, LLC\n8\nEvaluating Real Income\nFirms can make\nadjustments to an existing\nproduct or change the price\nto meet the unique needs of\na particular country market.\nFor the Chinese market,\nHaier sells washing\nmachines that can wash\nboth clothes and vegetables.\n© McGraw Hill LLC\nShutterstock/Africa Studio\n9\nAnalyzing Infrastructure and\nTechnological Capabilities\nMarketers are especially concerned with four\nkey elements of a country’s infrastructure:\n• Transportation.\n• Distribution Channels.\n• Communications.\n• Commerce.\n© McGraw Hill LLC\n10\nAnalyzing Governmental Actions\n© McGraw Hill LLC\n11\nTariffs and Quotas\nTariffs\nQuotas\n• Tax on Imported\ngood.\n• Minimum or\nmaximum limit.\n• Artificially raises\nprices.\n• Reduces availability\nof imported goods.\n• Lowers demand.\nBoth benefit domestically made products because\nthey reduce foreign competition.\n© McGraw Hill LLC\n12\nExchange Control\nRegulation of a country’s currency\nexchange rate: the measure of how much\none currency is worth in relation to\nanother.\nIn recent years, the value of the U.S.\ndollar has changed significantly\ncompared with other important world\ncurrencies.\nPrices are nearly always lower in the\ncountry of origin because there are no\ncustoms or import duties to pay, and\ninternational transportation expenses are\nless than domestic ones.\n© McGraw Hill LLC\n© Sean Pavone / Alamy Stock Photo\n13\nTrade Agreements\nA trade agreement is an intergovernmental\nagreement designed to manage and promote trade\nactivities for a specific region, and a trading bloc\nconsists of those countries that have signed a\nparticular trade agreement.\n• There have been recent challenges to longestablished regional trade agreements (RTAs),\n• Yet RTAs account for more than half of\ninternational trade.\n© McGraw Hill LLC\nSource: Information about EU members is from http://europa.eu/about-eu/countries/./index_en.htm\n14\nAnalyzing Sociocultural Factors\nUnderstanding another culture is crucial to the\nsuccess of a global marketing initiative.\nExists on two levels:\n• Visible artifacts.\n• Underlying values.\nParticipants in a parade during the 23rd International\nMariachi & Charros festival in Guadalajara Mexico\n© McGraw Hill LLC\nKobby Dagan/Shutterstock\n15\nEthical & Societal Dilemma 8.2: Dolce &\nGabbana Faces Public Scrutiny in China\nDolce & Gabbana learned a tough lesson about the\nimportance of embracing and promoting a local\naudience’s culture in a positive way.\nAn international fashion crisis ensued when designer Dolce & Gabbana released videos\nsatirizing the Chinese dialect and dining customs. Alibaba and JD.com, China’s two largest ecommerce sites, retaliated by removing Dolce & Gabbana products from their online stores.\n© McGraw Hill LLC\nDavydenko Yuliia/Shutterstock\n16\nGeert Hofstede’s Cultural Dimensions\nIndividualism\nMasculinity\nUncertainty\navoidance\nPower\ndistance\n© McGraw Hill LLC\nTime\norientation\nCulture\nIndulgence\n17\nExhibit 8.3: Country Clusters\nPower Distance and Individualism\nAccess the text alternative for slide images.\n© McGraw Hill LLC\nSource: Geert Hofstede, Gert Jan Hofstede, and Michael Minkov, Cultures and Organizations, Software of the Mind, Third Revised Edition, McGraw-Hill 2010, ISBN: 0-07166418-1. © Geert Hofstede B.V. quoted with permission.\n18\nThe Appeal of the BRIC Countries\nGreat potential for growth in the global community:\n• Brazil.\n• Russia.\n• India.\n• China.\n© McGraw Hill LLC\n19\nPROGRESS CHECK (1 of 3)\n1. What metrics can help analyze the economic\nenvironment of a country?\n2. What types of governmental actions should we\nbe concerned about as we evaluate a country?\n3. What are some important cultural dimensions?\n4. Why are each of the BRIC countries viewed as\npotential candidates for global expansion?\n© McGraw Hill LLC\n20\nExhibit 8.4: Global Entry Strategies\nAccess the text alternative for slide images.\n© McGraw Hill LLC\n21\nExporting\nExporting means producing\ngoods in one country and\nselling them in another.\nThis entry strategy requires\nthe least ﬁnancial risk but\nalso allows for only a limited\nreturn to the exporting ﬁrm.\nRolex exports its watches to countries all over the\nworld from its factory in Switzerland.\n© McGraw Hill LLC\nJeafish Ping/Shutterstock\n22\nFranchising\nA franchising contract allows the\nfranchisee to operate a\nbusiness—a retail product or\nservice firm or a B2B provider—\nusing the name and business\nformat developed and supported\nby the franchisor.\nMany of the best-known retailers\nin the United States are also\nsuccessful global franchisors,\nincluding McDonald’s, Pizza Hut,\nStarbucks, Domino’s Pizza, KFC,\nand Holiday Inn.\n© McGraw Hill LLC\nElizabeth Cummings/Ecummings00/123RF\n23\nStrategic Alliance\nCollaborative\nrelationships between\nindependent ﬁrms.\nThe partnering ﬁrms do\nnot create an equity\npartnership.\n© McGraw Hill LLC\nXinhua/Alamy Stock Photo\n24\nJoint Venture\nA joint venture is formed\nwhen a ﬁrm entering a\nmarket pools its resources\nwith those of a local ﬁrm.\nOwnership, control, and\nprofits are shared.\nThe local partner offers\nthe foreign entrant greater\nunderstanding of the\nmarket and access to\nresources such as\nvendors and real estate.\n© McGraw Hill LLC\nAtstock Productions/Shutterstock\n25\nDirect Investment\nDirect investment requires a\nﬁrm to maintain 100 percent\nownership of its plants,\noperation facilities, and oﬃces\nin a foreign country, often\nthrough the formation of wholly\nowned subsidiaries.\nRequires the highest level of\ninvestment and exposes the\nﬁrm to signiﬁcant risks,\nincluding the loss of its\noperating and/or initial\ninvestments.\n© McGraw Hill LLC\nChina-based Lenovo purchased U.S.-based IBM’s PC division\nand Motorola’s handset business unit and has parallel\nheadquarters in both Beijing and North Carolina.\nSource: Lenovo\n26\nPROGRESS CHECK (2 of 3)\n1. Which global entry strategy has the least risk\nand why?\n2. Which global entry strategy has the most risk\nand why?\n© McGraw Hill LLC\n27\nChoosing a Global Marketing Strategy:\nSegmentation, Targeting, and Positioning (STP)\nAccess the text alternative for slide images.\n© McGraw Hill LLC\n28\nThe Global Marketing Mix:\nGlobal Product or Service Strategies\nReturn to the parent-slide glossary term.\nAccess the text alternative for slide images.\n© McGraw Hill LLC\n29\nThe Global Marketing Mix:\nGlobal Pricing Strategies\n© McGraw Hill LLC\n30\nThe Global Marketing Mix:\nGlobal Distribution Strategies\nGlobal distribution\nnetworks form complex\nvalue chains.\nIn developing countries\nconsumers may shop at\nsmall, family-owned\nstores.\nSuppliers must be\ncreative in delivering to\nthese outlets.\n© McGraw Hill LLC\nVirojt Changyencham/Moment/Getty Images\n31\nThe Global Marketing Mix:\nGlobal Communication Strategies\nLiteracy levels vary by country.\nDifferences in language and customs affect\ncommunication.\nCultural and religious differences also matter.\n© McGraw Hill LLC\nShutterstock / Pyty\n32\nPROGRESS CHECK (3 of 3)\n1. What are the components of a global marketing\nstrategy?\n2. What are the three global product strategies?\n© McGraw Hill LLC\n33\nBecause learning changes everything.\n®\nwww.mheducation.com\nCopyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.\nBecause learning changes everything.®\nChapter 9\nSegmentation, Targeting,\nand Positioning\nCopyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.\nLearning Objectives\nLearning Objective 9.1 Outline the different methods of\nsegmenting a market.\nLearning Objective 9.2 Describe how firms determine\nwhether a segment is attractive and therefore worth\npursuing.\nLearning Objective 9.3 Articulate the difference among\ntargeting strategies: undifferentiated, differentiated,\nconcentrated, or micromarketing.\nLearning Objective 9.4 Determine the value proposition.\nLearning Objective 9.5 Define positioning and describe\nhow firms do it.\n© McGraw Hill LLC\n3\nThe Segmentation, Targeting, and\nPositioning Process\nEXHIBIT 9.1 The Segmentation, Targeting, and Positioning (STP) Process\nAccess the text alternative for slide images.\n© McGraw Hill LLC\nMcGraw-Hill Global Education Holdings, LLC\n4\nStep 1: Establish the Overall Strategy\nor Objectives\nDerived from mission\nand objectives\nConsistent with\nSWOT\nFood marketers, for instance,\ndivide the traditional pasta sauce\nlandscape into with or without\nmeat. This segmentation method is\nbased on what consumers derive\nfrom the products.\n© McGraw Hill LLC\nShutterstock/svario photo\n5\nStep 2: Use Segmentation Methods\nEXHIBIT 9.2 Methods for Describing Market Segments\nSegmentation Method\nSample Segments\nGeographic\nContinent: North America, Asia,\nEurope, Africa\nWithin the United States: Pacific,\nmountain, central, south, midAtlantic, northeast\nDemographic\nAge, gender, income, education\nPsychographic\nLifestyle, self-concept, self-values\nBenefit\nConvenience, economy, prestige\nBehavioral\nOccasion, loyalty\n© McGraw Hill LLC\nMcGraw-Hill Global Education Holdings, LLC\n6\nGeographic Segmentation\nMarket could be grouped by:\nCountry.\nRegion.\n• Northeast, Southeast.\nAreas within region.\n• State, city,\nneighborhoods, zip\ncodes.\nMost useful for companies whose\nproducts satisfy needs that vary\nby region.\n© McGraw Hill LLC\nShutterstock/tovovan\n7\nDemographic Segmentation\nMost common\nsegmentation strategy.\nEasy to identify.\nEasy to measure (age,\ngender, income,\neducation).\n© McGraw Hill LLC\nShutterstock / astel design\n8\nAdding Value 9.1 Dealing with Modern Life by\nPlaying: LEGO Promises\nLEGO is targeting its\nbricks and building sets\nas the perfect respite for\nthis demographic\nsegment, frazzled adults\nwho just want a break\nfrom modern life.\nThe casual adult builder\nis the new demographic\nsegment for LEGO.\n© McGraw Hill LLC\nLEGO’s latest market segment: frazzled adults seeking\nto reduce stress with easy-to-build projects like this\n25th anniversary set depicting the Central Perk coffee\nshop from the TV sitcom Friends.\nEkaterina Minaeva/Alamy Stock Photo\n9\nPsychographic Segmentation\nHow consumers\ndescribe themselves\nin terms of:\n• Self values.\n• Lifestyle.\n• Self-concept.\n© McGraw Hill LLC\nShutterstock / Zoriana Zaitseva\n10\nBenefit Segmentation\nDividing the market into\nsegments whose needs\nand wants are best\nsatisfied by the product’s\nbenefits can be a very\npowerful tool.\nHow does the movie\nindustry use a benefit\nsegmentation strategy?\n© McGraw Hill LLC\nLI CHAOSHU/Shutterstock\n11\nBehavioral Segmentation\nOccasion segmentation:\n• Based on when a product or\nservice is purchased or\nconsumed.\n• Clothing, snack foods.\nLoyalty segmentation:\n• Loyal customers are the\nmost profitable in the long\nterm.\n• Hotels, airlines,\nrestaurants (Starbucks).\n© McGraw Hill LLC\nShutterstock / JHershPhoto\n12\nUsing Multiple Segmentation Methods :\nExhibit 9.4 Examples of Tapestry\nTapestry ™ uses a combination of geographic, demographic,\nand lifestyle characteristics to classify consumers.\nA table divided into four columns\nsummarizes the examples of the\nTapestry Segmentation System. The\ncolumn headers for columns 2 to 4 are\nmarked as: Segment 01-Top Rung;\nSegemnet-18, Cozy and comfortable;\nand Segment-52, Inner city tenants.\n© McGraw Hill LLC\nMcGraw-Hill Global Education Holdings, LLC\n13\nPROGRESS CHECK (1 of 2)\n1. What are the various segmentation methods?\n© McGraw Hill LLC\n14\nStep 3: Evaluate Segment Attractiveness\nEXHIBIT 9.5 Evaluate Segment Attractiveness\n© McGraw Hill LLC\n15\nIdentifiable\nWho is in their market?\nAre the segments\ndistinct from one\nanother?\nDoes each segment\nrequire a unique\nmarketing mix?\n© McGraw Hill LLC\nestherpoon/Shutterstock.com\n16\nSubstantial\nHow large is the market\nsegment in terms of size\nand buying power?\nIf a market segment is too\nsmall, it won’t generate\nsufficient profits.\nIf its buying power is\ninsignificant, despite its size,\nthe marketing mix cannot be\nsupported.\n© McGraw Hill LLC\nPhotodisc/Getty Images\n17\nReachable\nCan the market be reached through persuasive\ncommunication and product distribution?\nThe consumer must:\n• Know the product exists.\n• Understand what it can do.\n• Recognize how to buy.\n© McGraw Hill LLC\nShutterstock/faithie\n18\nResponsive\nCustomers must react similarly and positively to the\nfirm’s offering.\nIf a firm cannot provide products and services to\nthe segment, it shouldn’t be targeted.\nIf you are looking for a luxury sedan, General Motors hopes you\nwill choose a Cadillac.\n© McGraw Hill LLC\nDarren Brode/Shutterstock\n19\nProfitable\nAssess potential profitability of each segment, both\ncurrent and future.\nKey factors:\n• Current market growth rate.\n• Future growth rate.\n• Market competitiveness.\n• Market access costs.\n© McGraw Hill LLC\nShutterstock/jeff Metzger\n20\nHow to Determine the Profitability of a Segment\nSegment = Children under 15\n• Segment size = 60\nmillion ( \nPurchase answer to see full\nattachment
APA paper format
The American Psychological Association (APA) format is a widely used style for writing academic papers in the social sciences. The APA format provides specific guidelines for formatting papers, including margins, font size and type, spacing, and the use of headings. These guidelines ensure that papers written in the APA format are visually consistent and easy to read.
In the APA format, papers are typically double-spaced and written in 12-point Times New Roman font. The margins should be 1 inch on all sides, and the text should be left-aligned. Headings are used to organize the paper into sections, with different levels of headings used to indicate the hierarchy of information.
In-text citations are an essential aspect of the APA format, and they must be included whenever information from an outside source is used in the paper. The reference page is also an important component of an APA paper, as it lists all of the sources used in the paper. The reference page should be formatted according to the APA guidelines, including the use of a hanging indent for each reference and the use of italics for book titles.
It is important to note that the APA format is not just a matter of style, but it is also a way of communicating research findings and ideas. The use of the APA format helps to ensure that the information presented in a paper is clear, concise, and easy to understand.
In conclusion, the APA format is a widely used style for writing academic papers in the social sciences. It provides specific guidelines for formatting papers, including margins, font size and type, spacing, and the use of headings. By following the APA format, students can ensure that their papers are visually consistent, easy to read, and meet academic standards.
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