MKT 327 Introduction to Marketing 1st Edition Lecture 12 Exam 2 summary: information foundationOutline of Last Lecture A. GuestII. Psychological influences on consumer decisionsIII. Attitudes: 3 stages of predisposition to act IV. Buyer behavior model reviewV. Consumer buyer decision processVI. Choice framework for how consumers make decisionVII. Steps between evaluation of alternatives and a purchase decisionVIII.Buying processIX. Organizational buying centerX. Organizational buying decision situationsXI. The Vals 2 segmentationOutline of Current Lecture B. Purpose: information foundation summaryXII. StepsXIII. Required informationXIV.Definitions XV. Target market analysisXVI.Segmentation conceptXVII. Segmentation analysisXVIII. Segmentation variablesXIX. Requirements for effective segmentation XX. Major age segmentsCurrent Lecture1) Purpose: Information Foundation Summarya) A marketing plan answers three level very basic questions with respect to an organization and its strategic actions: they arei) Are we on courseii) Are we on codeThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.iii) Can we competeb) There are four critical areas of information required to answer these questions. There are: i) Information on the firm itself, Captures by a vision analysisii) Information on the firms environment which is captured by a situation analysisiii) Information on competitors captures in their analysesiv) And finally information on potential costumers or the target market as capturedby a target market analysisc) A SWOT analysis is used in conjunction with the others to address the basic questions. For examples a SWOT analysis is used in conjunction with a competitor analysis to determine if firm can compete. d) A competitor analysis provides an assessment of others’ strengths and weaknesses that provides both an offensive and defensive strategic context and direction.2) Stepsa) A situational analysis has two steps or components an environmental scanning and a competitor analysis. b) The first step in a Situation analysis is to define the industry.c) Developing a Competitor profile is the 3rd step in conducting a Competitor analysis.d) A Target Market analysis actually has four steps, but only the first two relate to the information foundation of a marketing plan.e) A Target Market analysis would begin by determining who buys and what they buy.3) Required informationa) Of the following type of buyers would not be required to define the industry as part of the process of conducting a situation analysis. [Size of industry, growth rate, # of competitors, and type of buyers]b) Culture, social class, and family would all be types of social influences on consumer behavior.c) The data needed to analyze macro-environment are demographic and social forces, the state of the economy, technology, culture, legal/regulatory conditions, and ethics.4) Definitionsa) The affective dimension of an attitude determines does a consumer like a particular attribute?b) When consumers consciously and deliberately proceed through each stage of the buyer decision making process it is called active buying.5) Target market analysisa) Customer analysisi) Segmentation analysis (1) Involves collecting and analyzing informationb) Segmentation strategyc) Target market selectioni) Involve strategy 6) Segmentation concepta) Market segmentation is the process of aggregating potential buyers into groups that have common needs and wants, and will respond similarly to a marketingaction b) A collection of people with similar demographic and psychographic traits and behavioral tendencies that result from a segmentation analysis 7) Segmentation analysisa) Select variables to divide the market into homogenous groups called segmentsb) Profile each segment and name c) Establish ‘segment attractiveness’ 8) Segmentation variablesa) Purchasing behavior plus any combination of:i) Geographicii) Diversityiii) Psychographic/lifestyleiv) Demographicv) Benefits/values9) Requirements for effective segmentationa) Homogeneous within b) Heterogeneous between c) Measurabled) Substantiale) Accessiblef) Differentiable g) Actionable 10) Major age segmentsa) Seniors- before 1994b) Baby boomers- 1944-1962c) Generation x 1961-1982d) Generation y echo boomers 1978-1996e) Tweens 1998-2001i) Clicker question: Which group is most likely a market for Segway?(1) Generation y –echo boomers11) The Vals 2 segmentationa) Principle oriented i) Fulfilled(s)ii) Believers b) Status orientedi) Actualizersii) Achieversiii) Striversiv) Strugglers c) Action oriented i) Innovatorsii) Experiencersiii) Makersd) Iclicker questioni) Who would Segway most appeal to (1)