MRKTNG 3000 1nd EditionExam #2 Study Guide Lectures: 5-10Lecture 5 (February 17)- Introduction to market research: What are the types of market research? How is it done? Why is it important? The types of market research are syndicated research services, non-recurring research projects, and marketing information systems. Marketing information systems analyze/ assess marketing information provides basis for decisions such as product development, pricing, packaging, etc. Marketing research process: 1. Problem definition and research objectives2. Develop research plan3. Collet info4. Analyze info5. Present findings Exploratory research- shed light on a problem, new ideas and solutionsDescriptive research- ascertain magnitudesCasual research- test cause and effect, relationships and hypothesisResearch approaches:Primary data (focus groups, observational research, surveys, experiments)Secondary data (Internal sources, government publications, periodicals and books, commercial data, online) Good marketing research:1. Is scientific2. Is creative3. Uses multiple methods 4. Realizes the interdependence of models and data5. Acknowledges the cost and value of info6. Maintains a healthy skepticism7. Is ethical Market demand:Estimated using industry sales and market share (individual product sales/industry sales)Methods:Market-factor analysis- demand for a product is assumed to be related to the behavior of certain sales activities Survey of buyer intentions- sample of current or potential customers are asked how much of a particular product they would buy at a given price during a specified future time periodPast sales and trend analysis- Flat percentage increase is applied to the volume achieved last year or to the average volume of the past few yearsRegression analysis- Using a trend to forecast sales Sales-force composite-Bottom up method consisting of collecting estimates of sales for the future period from all salespeopleExecutive judgment-Obtaining opinions regarding future sales volume from one or more executives or expertsTest marketing-Firm markets its product in a limited geographic area, measures sales, and the projects the company’s sales over a larger areaLecture 6 (February 19) Non-profit marketing- why is it needed? What makes it different from business marketing? The non-profit sector is growing and requires a different marketing perspective than that for business. Non-profit sector includes over 1 million organizations that generate $1.1 trillion in revenue each year, accounting for 7% of all employment. There are many types of non-profits, including arts, education, religion, etc.Targeting:-Unlike businesses, non-profits are mission based and customer satisfaction is not necessarily the only goal-Customers of non-profit product/service are not necessarily responsible for financial support-Non-profit marketing has a greater need to target multiple constituencies (university students, patents, legislature, employers, etc.)-Two general target groups: Those served and donors Lecture 7 (February 26)\Heuristics, attribute sets, correlational inferences and biases- what are they? How do they apply to marketing? Evaluation of alternatives- attribute sets (universal set retrieval set evoked set choice)Correlational inferences:Associations (positives or negatives) between two attributes Country of origin effect- if something is produced in a certain country; it must be good or bad (Germany, good beer and cars, England, bad food) Heuristics and biases: Heuristics- used to ease cognitive effort Representativeness- stereotyping bias in which prior probabilities are ignoredEx- Ad shows mom fixing Ovaltine for kids who chorus “more Ovaltine please”. Bias occurs if viewers believe “Mothers care about the health of their kids, so Ovaltine must be healthy”.-Ovaltine actually isn’t good for kids, lots of sugar Availability bias- tendency to use info that is most readily available Ex- Consumers considering fast food or beer alternatives that have been recently advertisedAnchor and adjustment- first information becomes basis (anchor) from which we adjust based on new info (we often don’t adjust enough) -Most common example in marketing:-Using retail/sticker price as an anchor for determining what is a good value-Sales-Infomercial pricingLecture 8 (March 3)Materialism, sustainability, and corporate social responsibility- what are they, and how do they apply?Materialism- devotion to material needs and desires, to the neglect of spiritual matters; a way of life, opinion, or tendency based entirely on material interests Marketing and materialism:-Marketing does not create needs-Marketing research is conducted to find unserved needs before product is developed and promoted-Marketing promotes materialism-Macro effects of promotion leads to focus on possessions=happiness viewSustainable development: What is it?About:-Balancing economic growth and social needs with the natural environment-Ensuring that growth in the present does not adversely sacrifice future opportunities-Sustainability within a local area and at a global level Challenges in sustainable development:1. Inherit complexity of the problem- balancing short-term private benefits with long-term interests-Over-focus on one area may have significant negative -Solutions require long-running, transformational changes-Common definition, e.g. whether development through industrialization itself should bereferred to as “sustainable”2. Conflicting interestsBalancing short term private benefits with a long term interestBalancing self interest with the interests of others-Corporate interests-National interest-Personal interests-Interest groups with varying perspectives and agendas3. Post-modernization emerging factorsCorporate Social Responsibility (CSR):-The way firms integrate social, environment, and economic concerns into their values, culture, decision-making, strategy and operations in a transparent and accountable manner and therebyestablish better practices within the firm, create wealth and improve society External markets for virtue:-Some customer segments may reward CSR initiatives while others don’t -Benefit segmentation- CSR most important vs. price most important -Favorable response to CSR (profitability)-Dependent on fit between consumer values, firm values and specific issue initiative-Must be seen as authentic Characteristics of socially responsible consumers:-Purchasing based on firms’ corporate