Chapter 5-Market Research- The systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities-The purpose is to inform an organization about customers’ needs and desires, marketing opportunities for particular goods and services, and changing attitudes and purchase patterns of customersProcess:1. Locating and defining problems or issues2. Designing the research project3. Collecting data4. Interpreting research findings5. Reporting research findingsreliability – when a research technique produces almost identical results in repeatedtrialsvalidity – when a research method measures what it is supposed to measureData Types:Primary data – data observed and recorded or collected directly from respondentsSecondary data – data compiled both inside and outside the organization for some purpose other than the current investigationSources of secondary data:Internal sources –-company’s database-sales reports-accounting recordsExternal Sources – -trade associations-periodicals-online databases-internetSamplingProbability sampling – every element in the population has a chance of being selectedRandom sampling – all units have an equal chance of appearing in the sample(a specific card in a deck has a 1 in 52 probability of being drawn)Stratified sampling – a population of interest is divided into groups according to a common attribute, and a random sample is chosen within each groupNonprobability sampling – sampling technique in which there is no way to calculate the likelihood that a specific element of the population being studied will be chosenQuota sampling – researchers divide the population into groups and then arbitrarily choose participants from each groupSurvey types- mail survey - telephone survey - in-home interview - shopping mall intercept - online survey –CH 5Marketing information systems (MIS)- a framework for managing and structuring information gathered regularly from sources inside and outside the organization- the purpose is to provide a company with information about prices, advertising expenditures, sales, competition, and distribution to best help them sell their product or service.CH 6Target market – a group of people or organizations for which a business creates and maintains a marketing mix specifically designed to satisfy the needs of group membersMarket Segmentation – the process of dividing a total market into groups with relatively similar products needs to design a marketing mix that matches those needs-Undifferentiated targeting strategy – an organization designs a single marketing mix and directs it at the entire market for a particular product-Differentiated targeting strategy – an organization targets two or more segments by developing a marketing mix for each segmentVariablesSegmentation Variables - characteristics of individuals, groups, or organizations used to divide a market into segments(location, age, gender, rate of product usage)Psychographic Variables – personality characteristics, motives, and lifestyles5 steps to Target Marketing1. Identify the Appropriate Targeting Strategy2. Determine Which Segmentation Variables to Use3. Develop Market Segment Profiles4. Evaluate Relevant Market Segments5. Select Specific Target MarketsSales Forecast – the amount of a product the company expects to sell during a specific period at a specified level of marketing activitiesForecast surveys- Customer forecasting survey – marketers ask what types and quantities of products they intend to buy during a specific period- Sales force forecasting survey – the firm’s salespeople estimate anticipated sales in their territories for a specified period- Expert forecasting survey - a company hires professionals to help prepare the sales forecast- Delphi technique – experts create initial forecasts, submit them to the company for averaging, and have the results returned to them so they can make individual refined forecastsMarket Tests – making a product available to buyers in one or more test areas and measuring purchases and consumer responses to marketing effortsChapter 7Buying behavior - the decision processes and actions of people involved in buying and using productsConsumer buying decision process1. Problem recognition2. Information search3. Evaluation of alternatives4. Purchase5. Post purchase evaluationSituational Influence – influences that result from circumstances, time, and location that affect the consumer buying decision processPsychological Influences - factors that in part determine people’s general behavior,thus influencing their behavior as consumers(Perception, motives, learning, attitudes, personality and self-concept, lifestyles)Patronage Motives – motives that influence where a person purchases products on a regular basisAttitude – an individual’s enduring evaluation of feelings about and behavioral tendencies toward an object or ideaComponents of attitude- Cognitive- Affective- BehavioralSelf-Concept (self-image) – a perception or view of oneselfLifestyle – an individual’s pattern of living expressed through activities, interests, and opinionsLevels of Involvement - an individual’s degree of interest in a product and the importance of the product for that person-High-involvement products tend to be those that are visible to others and are expensive-High-importance issues are also associated with high levels of involvement-Low-involvement products tend to be less expensive and have less associated social risk-Enduring involvement – a person’s interest in a product or product category that is ongoing and long termSocial Influences – the forces other people exert on one’s buying behavior(Roles, family, reference groups and opinion leaders, social classes, and culture and subcultures)Culture – the accumulation of values, knowledge, beliefs, customs, objects, and concepts that a society uses to cope with its environment and passes on to future generationsConsumer Misbehavior – behavior that violates generally accepted norms of a particular