Marketing Prelim 1

A customers future sales potential often reflects its current buying habits.

Every brand shares more of its customers with larger brands, but the degree of sharing with a particular brand varies.

The primary role of a marketing manager is to direct strategy

Descriptive brand beliefs are highly related to purchase frequency.

From surveys, a type of exploratory marketing, you learn that "Y % of people say the think, feel or do x"

Most brands use customer satisfaction and CLV metrics. The least amount of brands use likelihood to recommend to friend

Exploratory and descriptive research evaluate strategy, while predictive and causal research identifies strategy.

Penetration is the most important metric.

Price promotions are skewed towards light buyers, but don't stimulate substantial growth.

Evaluative beliefs are related to purchase frequency, but the effect is smaller than people believe.

To compete effectively, you should try to dislodge company above you rather than establishing an against position.

To be a good criteria for targeting, you should pick a segment with high levels of competition and serviceability.

Brand size explains 90% of variance in how brands share customers. This does not hold for brands with large price diff.

Some people believe marketing is evil because it involves lying, supports materialism and overconsumption.

The implicit systems of mind are non-deliberate, indirect, and uncontrollable.

Marketing is the business function required for getting and keeping profitable customers.

To be most desireable, loyalty programs should market to heavy buyers with low existing loyalty.

Brands with higher value rankings also had higher purchase frequency.

Explicit system of mind is quick to develop and change. It operates on abstract symbols, words, and numbers.

The four types of marketing research are exploratory, descriptive, predictive, and causal.

Big brands attract more light category buyers than small brands.

A customer is considered loyal if brand share of wallet >= 0.5 (50%).

An excpetion to rule of customers representing competitors customers was the no girls chocolate that attracted only men.

Brands differ greatly in average purchase frequency but are similar in penetration.

The 7 ps of marketing are people, physical evidence, process, promotion, product, price, and preparedness

Most customer traits are normally distributed because most traits have multiple independent causes.

The conditions leading to DJ are meaningful brand differentiation is low and no one has more than fair share of heavies

Brand fame is not related to purchase frequency but is related to penetration.

Causal marketing requires the fewest assumptions to predict consequence and exploratory requires the most.

Net promoter classification does not predict SOW (1-10 how likely are you to recommend this product to a friend).

In hotel RevPar is highly correlated with gross operating profits. Occupancy always contributes more than ADR to profits

Competing brands share to the same type of people, but there is variation within that group of people.

Generating brand names has higher reliability than recognizing brand names.

A key finding of the Prego (spaghetti sauce) experiment is that people don't really know what they want.

Customer satisfaction explains 5% of the difference in share of wallet.

The formula for customer lifetime value = avg order value x purchase frequency x avg lifetime of the customer

No matter what, a brand will lose some buyers every year. For this reason, they should focus on improving retention.

A common justification for segmenting is that consumers have the exact same needs and wants from a product category.

Growth and contraction are mostly related to acquistion rather than defection.

The share of wallet is a percent of a consumers purchases that go to a specific category

In the marketing career path, people are most often a director before they are a manager

A line extension is when a company takes a name of one product and puts it on another product. They dilute brand.

Relieability of research refers to the question, "am I measuring what I think I am"?

Group discussions lead to non independent observations with very representative samples.

Observation often leads to unrepresentative samples. From this, you learn that t percent of people say x and do y

Ben & Jerry's and Haagen Daz were a perfect example of the duplication of purchase law.

FSR ratings related to penetration only after controlling for # of units, but the relationship isn't strong.

For all brands in any market, even if volatile, the distribution of light to heavy buyers can be predicted using NBD.

Brand beliefs reflect brand usage as much/more than they cause it.

Customer lifetime value is a VERY useful metric.

The law of contiguity states that concepts that have been activated together DO NOT activate one another.

The correlation between relative desirability and share of wallet is very low.

Loyalty varies highly between small and large brands.

For restaurants, brands that score high on 1 dimension tended to score high on all other dimensions.

The four types of marketing employers are agencies, consulting, in-house, and start-up

A large brand's higher average purchase frequency is due to disproportionately more heavy buyers.

The types of descriptive marketing are surveys, implicit methods, and secondary data.

Useful qualitative research is either surprising or relevant.

Airline market share is almost perfectly predicted by penetration.

The mean absolute deviation is used to measure differences across brands and it is rare that it is high.

People do not think their fav brands are unique Big have more unique associations only because more associations overall

You should focus on increasing brand differentiation through symbols, taglines, and logos instead of distinctiveness.

It is cheaper to get an existing customer to buy more than to get a new customer entirely.

Harley Davidson buyer buy Harley Davidson 60% of the time.

You say the best things about the brands you use the most.

The VALS model separates people's primary motivation into ideals, achievement, and self-expression.

Customer satisfaction is unrelated to brand popularity (% of people who have something positive to say about a brand)

Loyalty programs have absolutely no affect on improving customer loyalty.

Overtime heavier buyers become lighter and lighter buyers buy more.

Smaller brands have higher defection % than large brands, but large brands lose more customers overall.

ALL other rankings were unrelated/negatively related to purchase frequency.

In an experiment, the difference between the two groups is caused by chance.

In mature markets, marketing success comes from doing a better job of appealing to a more niche group of customers.

Big brands get more of small brands customers, and less of other big brands customers.

The banking industry poses a slight reverse of the double jeopardy law.

Craveability was a metric that was correlated to purchase frequency.

We live in a world of mass markets but the most common partitions = price differences across premium/non premium brands.

Customer satisfaction does not predict penetration or purchase frequency but is related to total room revenue.

The law of double jeopardy is stronger for limited service restaurants than full service.

Social and technological change is the only thing that can ALWAYS create a new meaningful segment.

The % of sales coming from top 20% of buyers decreases as the time period gets longer.

A recent study found that the majority (around 80%) of people recognize TV ads they've seen recently.

One of the pros of marketing is that it moved to a declarative model and away from an associative model

Changes in purchase frequency, positive or negative, must occur across the entire spectrum of light to heavy buyers.

Marketing should be about mental and physical availability rather than attracting a "cult following".

The law of primacy: consumers chooseoptions they like best and choose between equally liked options with same probabilit

For segmentation, the groups must be measurable, substantial, accessible, differentiable, but not actionable.

Rank order predictions are more indicative of choice than absolute rating. In other words relative value is what matters

The difference between an experiment and a quasi-experiment is that a quasi-experiment is a none random group assignment