MKTG 301 1st Edition Exam 2 Study Guide Consumer Decision Making Process 1 Problem Recognition companies markets show their consumers what problem their product can fix 2 Search look for a product to solve a problem 3 Alternative Evaluation what decision criteria do you use when debating on buying a product 4 Purchase Acquisition 5 Use and Evaluation marketers sometimes raise expectations too high causing negative evaluation cognitive dissonance Consumer Behavior Theory 1 Economic Man Theory rational use objective criteria rational consumer Realistic person utility maximizer greatest benefit from lowest cost Perfect information info needed to make decisions a lot of decision are between rational and emotional Ex Buying salt usually rational vs Buying cologne usually emotional 2 Involvement Theory Active vs Passive Decision Making Types a Routine you know the product information and the brand information know a lot about product Ex makeup b Limited Problem Solving you know the product information but not really the brand information not sure Ex Tennis Rackets c Extensive Problem Solving you don t know the product information or the brand information lost Ex Television car ect Promotion Budget Advertising personal selling door to door Advertising Budget Broadcast print media Distribution Area Intensive vs Selective 3 Social Theory a Macro level Social Influences Culture national character Subculture Ethnic Age Geographic Social Class upper class middle class lower class income education occupation used for verbal and nonverbal communication What we buy is based on customs Values differences in lifestyles Media Habits Differences Different Product preferences priorities b Micro Level Social Influences Reference Groups reference for consumer behavior Information influence people you are around Normative influence peer pressure smoking to fit in Identification Influence identity with brand prada girl Opinion Leader Charismatic Product Experts know about products Carli for makeup 2 Step Flow of Communication 1 Marketers target opinion leaders like Carlie and give gifts to these opinion leaders 2 Opinion Leaders like Carli reach society through word of mouth or through social media youtube Role Models Celebrities Movies TV stars Family Family life cycle household roles Purchaser User Initiator Purchaser Mother User Me Initiator Kids kids with mcdonalds Marketing Information Systems 1 Internal Accounting Transactional Data 2 Marketing Intelligence Environmental Scanning 3 Marketing Research Studies of specific problems related to marketing continued below Marketing Research Research problem an unanswered question must identify the problem Types of Marketing Research Problems Exploratory Research brings problem into focus Descriptive Research research that describes an existing state of nature who what where when how why Experimental Research perform experiment Predictive Research predict a future event like future demand ex surveys of buyer intentions Secondary Information Sources and Primary Info Sources Secondary Internal Records Business Publications Government Agencies Trade Professional Organizations Consulting Firms Primary Information Sources 2 sections Qualitative and Quantitative Qualitative Methods Focus Group Usually 5 12 people for 1 2 hours Videotaped session Moderator Try to facilitate or engage the group in conversation Depth Interview 1 on 1 interview Highly Sensitive Controversial Qualitative topics require secrecy usually have to pay psychologist to do these sort of interviews which are 1 2 hours in length one interview may cost 500 Projectile Techniques Use with depth interviews and focus groups Latent Motives motives either were not conscious of them or admit to them or can t articulate them Manifest Motives We are conscious and admit to these motives and are able to articulate them How to Project on to Latent Motives Word Association Test Cartoon Illustration Test Story Completion Test Observation Testing We are able to observe subjects but do not question subjects because they might not be honest and they do not have answers to our questions We may use the following methods to observe the product product use Use cameras Physical Trace Evidence Analysis Nike for example studied shoes to base their warranty on and to make better products Physiological Measurement Use devices that measure results such as eye scanner Scanners Secret shoppers experience people scan Humanistic Inquiry Quantitative Methods 1 Consumer Panels Large representative sample of consumers who record information about their behavior over time Longitudinal Studies overtime 2 Surveys mail surveys emails telephone personal interviews shopping mall intercepts self administered surveys Survey Selection Criteria 1 total cost 2 Response Rate 3 Speed how long does it take Lower cost usually means low response rate 4 Amount of data you can get 5 Respondent Control who is responding Person being interviewed 6 Administrative Control Person giving the interview Validity Instrument measures what it is supposed to measure instrument survey making sure that the survey measures what it is supposed to be measuring Reliability Consistency in results with repeated administrations of the instrument repeating a survey doesn t mean the responses will be similar Representatives ability to generalize the results to the greater population is the data representative Product Strategy Total Product Concept 1 Tangible Product functional and aesthetic features ex transmission seats colors design 2 Augmented Product Service and image extras Baking soda man 3 Generic Product Psychological and operational benefits Packaging Functions 1 Product Protection keeps product safe 2 Attention grabs customer attention 3 Differentiation sets itself apart from competition design 4 Target Marketing appealing to specific audience 5 Information Disclosure portrays a story info 6 Safety Liability Dangers connected to the use of the product 7 Environmental Concern Does the product benefit the environment 8 Cross Promotion 2 companies help promote each other cereal yogurt 9 Additional Package uses shoe boxes 10 Innovation soup on the go portable keys cereal bowl just add milk Product Portfolios BCG Matrix BCG Boss Consulting Group internationally renowned consulting group Types of Products within the matrix 1 Cash cow product item that has a high market share low market growth rate mature product ex Campbell soup well known but not enough room