Marketing Strategies – Midterm
1. The five types of customer needs are: Stated needs, Real needs, Unstated needs, Delight needs and Secret needs. Define each and give an example for each.
Stated needs are wants that are expressed by the customer while shopping for a product or service. An example of a stated need is when a customer wants to buy a two-bedroom condo. Real needs are the underlying needs of those that are stated. In the case of the customer that wants to buy a two-bedroom condo, they want a condo that is convenient with regards to proximity to work, friends, family and sources of activity. Unstated needs are expectations that a customer associates with the product or service they are shopping for in which the customer feels they don’t need to disclose as it should be a given to the salesperson. In looking to buy a two-bedroom condo the customer would expect that the real-estate agent would show them condos that have two bedrooms, a living space, a kitchen and a bathroom. Delight needs are preferences that the customer might have when shopping for a product or service. The customer that wants to buy a two-bedroom condo might want the kitchen to be modern with updated appliances, an on suite in the master bedroom, washer and dryer hookups available and parking. Secret Needs are the immaterial reasons in which a customer is purchasing a product or service. The customer that wants to buy a two-bedroom condo wants their friends and family to view them as successful and independent.
2. Illustrate the differences between a reactive market orientation and a proactive marketing orientation. Give an example of each.
Simply put, companies with a reactive market orientation are not the innovators of the industry. These companies assume that their job is to just adapt to stated customer needs. These can be determined through customer satisfaction surveys. A good example of a company that operates under a reactive market orientation would be Old Navy. Almost every time I shop at an Old Navy, I receive a phone number on the bottom of my receipt to call and answer a satisfaction survey in exchange for a 10% discount on my next purchase. The information gathered from these surveys is used to determine a strategic course of action.
On the opposite side of a reactive market orientation is a proactive market orientation. Companies with a proactive marketing orientation, I would consider to be the innovators of the industry. These companies uncover solutions that customers did not ask for, but respond positively to. This is done through the company’s successful market research. A great example of a company that has a proactive market orientation is Apple. They are typically the leading company to invent and release new technology. In my eyes, this started with the release of the iPod in 2001.
3. You have been given the assignment of justifying “cause related” marketing to your board of directors. What would be your primary argument in favor of such a proposal?
If given the assignment to justify ‘cause related’ marketing to my board of directors, my primary argument in favor of the proposal would be the significant increase in brand awareness and credibility that such a strategy would bring to the company. Consumers often develop a strong like or dislike for a company based on the moral principles in which a company stands for and supports. By implementing ‘cause related’ marketing within a company you are not only stepping up and showing your existing customers what you stand for as a company, but you are also opening the doors to attract new customers that support the cause that the company is supporting as well, ultimately expanding your customer base as a whole.
4. What is marketing research and list 3 ways a small company could conduct marketing research without incurring the financial burden of a sizable research budget?
Marketing research is defined in...
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