A Journal for Chapter Review

CHAPTER REVIEW

Chapter Review-Journal

Chapter 2

There are three phases of the purchase process, naming awareness, consideration, and decision. In the first phase, the buyer is trying to consider his need for the product and his decision for purchase. The second stage is about the evaluation for making the final decision. The final stage is about making the right choice after reviewing the options, investing time in research, and gaining confidence.

Marketers use visual stimuli to make the product more engaging to the consumers. It is known that 93% of the communication is done via non-verbal means. The visuals help the buyer make sense of the message and decode text easily. Colors help in enhancing emotions and stirring the imagination. For example, certain logos specifically use certain colors to instill cravings, such as the pairing of yellow and red in Mcdonald’s, where red depicts desire, authority, and affection.

Operant conditioning commonly refers to behavioral psychology where marketers could gain profits by giving such voluntary, favorable and positive stimulus to the consumers who worked in the past. It is done to encourage customers to buy their product and try afterward, free trials. People cannot know the product well through advertising unless they have used it. The free trials could cost initially, but results could be maximized if the customers become lifelong brand loyal and lucrative profits through word-of-mouth.

Chapter 3

Mass marketing is about selling a product to all types of consumers, while one-to-one marketing sells a single product to one type of customer. In one-to-one marketing, the companies make sure that the maximum number of customers buy the maximum number of products. For example, a tissue paper brand would want to mass market its product to all consumer types. In contrast, a soap for dry skin would want those consumers to buy it who have dry skin only’ however, the single type of consumer would buy the same product for a long time in maximum amounts.

The marketers segment a market based on certain parameters, such as behavioral, demographic, psychographic, and geographic. Creating value for them is inherent in the capacity of the marketer to identify their needs based on these factors since gathering information about the consumers becomes convenient. The qualitative and quantitative information is better analyzed so that sales of the product are maximized, and brand loyalty is sustained.

The reasons for the failure of segmentation schemes could entail defining the segmentation too largely, non-alignment of business goals and the market segments, inefficient global management of the segments, and inappropriate use of segmentation for unclear strategic direction. Improper implementation with lack of accurate preparation concerning correctly defined target market causes problems and ends up in massive fails.

Chapter 6

A product is an article that is manufactured to sell to the target consumers. The differences between product and service are tangibility of product. In contrast, the service lacks it, needs fulfillment via product. In contrast, service helps in relationship building. Quality evaluation of service is harder than that of a product, with innumerable variations in the product lines and types while less differentiation in service and the returnability of a product. In contrast, a service cannot be returned.

Core values are the basic or fundamental characteristics of a product that the customers want, and value-added values are the additional benefits they would gain from the same product. The core value would be providing rooms, food, and necessities in-room service in terms of hotel services. The value-added service can include offering a postal card for a touristic experience and facilitation.

Deepening product ix depth could be less efficient since offering more product lines in an existing product would incur more costs. Sometimes, it might not be as essential as it may seem to add new varieties since adding costs to a company’s production would not be fruitful in the long run if the new varieties do not prove successful.

Chapter 7

A product is an article made by the company for which the company earns money. A brand is created by consumer expectations, fulfillment of those anticipations, perceptions, and image related to the company’s product. It could be defined under one umbrella, which is counted as a collection of long-lasting impressions.

Brand associations are created when they are positive in terms of permanence, marketability, and the ability to create desire among customers. Brand associations are formed with the help of advertisements, delivering high-quality products, publicity through word-of-mouth, pricing strategies that are suitable to the consumer, and customer contact and service.

Line extension occurs when the company decides to introduce new items in the same product category, such as different colors, sizes, flavors or forms, etc. Product category extension is when the company uses the same name to enter a completely different product category, such as a restaurant offering fast food starts selling desserts.

Chapter 10

In the push strategy, the product is brought to the customers. In the pull strategy, the product is desired by the consumers by creating a unique image and accelerating traffic. An illustration of a push strategy can be advertising the products to the customer for direct selling, such as potato chips or chewing gum. An example of a pull strategy would be running food condiments on the food channel would be building up consumer demand for it.

The three benefits of private labeling encompass less operating costs, rising profit margins, and enhanced brand loyalty. Low operating costs would be possible since there would be products that do not require extensive marketing; hence, costs are reduced. Profits would be high as time-consuming branding would be excluded. Also, brand loyalty would be high as reputation would be strong to gain consumer confidence.

Product franchising means that producers allow the retailers to shelf their products, and if required, they could use the manufactures’ names and trademarks for sale. The retailer can sell the manufacturer’s products by paying a fee for the trademark use. The more recent type of franchising is business-format, which provides wide-ranging services to the franchisee by the franchiser. The services can include marketing, training, advertising, and strategic planning, etc.

Catalog sales in e-commerce are organized to facilitate the dynamic processing of quality guaranteeing across all sales channels. The online catalog has names, product details, prices and supplier specifications, etc., mentioned so that data publishing becomes easier. For online selling, product information is an integral part of e-business where the consumer could know all the product details and gets the confidence to buy it.

Chapter 11

Good advertising content is designed by keeping in mind four key aspects: emphasizing an attractive design, delivering a strong message, calling the target consumers for action through content delivery, and strengthening brand image. Good advertising sends a word to the customers and the competitors that the company is here to make a mark in the industry and helps in gaining a high market share by increasing profits.

The marketing goals sought from the advertising campaigns entail creating awareness of the brand, increasing online traffic on the website and the social media, surging the rates of engagement, and leading the market with improved sales and profit margins as a part of short and long term goals.

Dyadic communication is the one that takes place face-to-face verbally between two individuals. The basic model consists of three stages, including transaction, interaction, and termination. The transaction involves the beginning of communication with facial expressions; the interaction is the exchange of ideas and actual subject topic, whereas termination is the end of communication when the aim is accomplished.

In comparative ads, the positive attitudes for the product and brands are induced in such a manner that help in evoking psychological and touching drives. In non-comparative ads, the favorable attitudes are yielded at a higher rate when touching motivations are on the rise than being low. Big and small companies use it to compare the features and qualities of the products that compete with each other and represent how one’s product is better than the other. The purpose is also to ensure that customers know the traits that their competing brand does not offer.

The pros of humor in marketing include grabbing attention from the viewers. The advertisements become more relevant when the image is portrayed as funny. The message is catchy has a high recall value. The cons comprise interpretation of immaturity just by producing jokes, proving offensive to some people, and faking ideas or facts for gaining attention could cost unexpectedly.

Chapter 13

The three changes currently being experienced by traditional media are the advent of social media and its opinionated nature. The number of users is countless, traveling news with instancy via fast online medium and gaining instant feedback through social media, which was impossible with traditional media.

Graphs and matrix-based diagrams are the two ways to represent social networks visually. The graphs help in illustrating the connections of the social networks and the involved individuals along with the content. The matrix-based diagrams are relevant when associations are to be shown in the form of rows and columns. The matrix cells determine the social connectivity between individuals.

Marketers can calculate ROI on social media by a formula that involves dividing profit with total investment and then multiplying the answer with 100. The gained calculated value shows the value attained from social media for the company.

Search engine optimization is the tool for enhancing online content so that the engine shows top results for a particular entered keyword. The process is optimized when the search results show a company or product’s name on the top among the other results. Web analytics measure the behavior and traffic on the website in terms of visits of the users, number of clicks, the length of their stay, number of different pages they visited, and what links allowed them to move to another link. Brands can improve their SEO by publishing pertinent data, updating the content regularly to meet online users’ interests, and having the links in the site that are worthy of clicking such as “click here” or hyperlink keywords like “Technical programs” etc.

The ranking system on Google comprises several algorithms that help search for the right results when keywords are entered in the search bar. The factors that are taken into consideration by these algorithms are relevance, usability, number of words in the query, sources that match, locality, and settings. Strict guidelines are followed by search quality raters worldwide to ensure the laborious process of Google searching gives relevant and quality results.

Chapter 14

Low-involvement purchase is the one in which the risk is low. It is less costly for the buyer if he makes a mistake in his purchase decision, for example, impulse purchase of the chocolate when you are about to pay bills on the grocery store counter. On the contrary, a high-involvement purchase is the one that has a high risk due to high costs if he fails to make the right decision, for instance, buying a car at the showroom.

The three types of expectations of the customer are desired, adequate, and predicted. The desired expectation is how the customer wants a specific standard from the product to qualify or perform the service. The adequate expectation is which the customer would accept, while the predicted expectation is with which the customer is satisfied.

A CRM program is the customer relationship management process in which the database is managed by collecting information regarding business projections, clienteles, product demand, and buying historical accounts.

The lifetime customer value is known as the total amount of money a consumer is anticipated to devote to a company’s products or a business during his entire lifetime. The business needs to know which customer s are highly valuable and retained on a long-term basis. For instance, if the customer is to buy a notebook for $10 but his lifetime value is $20, then he would be considered profitable for the business.

References

Barga, K. (n.a.). The type of information in a customer relationship management system. Small Business Chron. https://smallbusiness.chron.com/developing-crm-strategy-international-organization-63881.html

Cashchera, M.C., Ferri, F. & Grifoni, P. (2008). SIM: A dynamic multidimensional visualization method for social networks. PsychNology Journal, 6(3), 291-320.

Century Label. (2019, January 25). 4 benefits of private labeling for your brand. https://www.centurylabel.com/news/4-benefits-of-private-labeling-for-your-brand

Ciornea, R., Dorel, P.M., Drule, A.M. & Bacila, M.F. (2010). Value-added services offered in luxury restaurants and their implication for customer satisfaction [Paper presentation]. Conference: Marketing from Information to Decision. Cluj-Napoca, Romania. https://www.researchgate.net/publication/259458232_Value-Added_Services_offered_in_luxury_restaurants_and_their_implication_for_customer_satisfaction