Marketing Week 5 Chapter 6 Consumer Decision Making 1 Consumer Decision Making Process a Cultural social individual and psychological factors affect all steps i Need Recognition ii Information Search iii Evaluation of alternatives iv Purchase v Post Purchase behavior 2 Factors Determining the Level of Consumer Involvement Interest a Previous Experience b c Perceived Risk of negative consequences d Social Visibility 3 High Consumer Involvement a Product Involvement b Situational Involvement c Shopping Involvement d Enduring Involvement e Emotional Involvement 4 Marketing Implications of Involvement a Marketing is constantly changing marketing professional must change and adapt to a changing external environment 5 Social Class a Upper Classes i Capitalists ii Upper Middle Class b Middle Class c Lower Class i Middle Class ii Working Class i Working poor ii Underclass 6 Maslow s Hierarchy of Needs a Self Actualization of Needs b Esteem needs c Social needs d Safety needs e Physiological needs d Miller High life story butler with miller high life beers asks guest for champagne or bottled beer Pour beer into champagne Chapter 7 Business Marketing 1 Business to Business electronic commerce a Use of the internet to facilitate activities between organizations 2 Measuring Online Success a Stickiness Frequency Duration Site Reach b Quantcast com 3 Strategic Alliance Starbucks and United airlines 4 Producers a Original Equipment Manufacturers all individuals and organizations that buy business goods and incorporate them into the products they produce for eventual sale to other producers or to consumers 5 Business Versus Consumer Markets a Derived demand organizations buy products to used in producing their customers products b Purchase Volume c Use of reciprocity d Use of Leasing 6 Types of Business Materials a Major Equipment b Accessory Equipment c Raw Materials i Unprocessed d Component Parks little processing e Processed Materials f g Buying Centers Supplies i Finished items ready for assembly or products that need very i Rules In the Buying Center Initiator Influencers Evaluators 1 2 a Technical personnel especially important a Group members who regulate the flow of information a Approve the selection of the supplier or brand 3 Gatekeepers 4 Decider 5 Purchaser a Negotiate prices 6 Users h Evaluative Criteria i Quality technical suitability Marketing 351 Harry Anicich Chapter 8 Segmenting and Targeting Markets 1 Criteria for successful segmentation a Substantiality a market segment needs many potential customers i Big enough Indentifiability and measurability b c Accessibility must be able to reach members of targeted segments with customized marketing mixes d Responsiveness Marketing can be segmented using any criteria that seem logical All segments seem to respond the same 2 Bases for Segmenting Consumer Markets a Geographic Segmentation refers to segmenting markets by region of a country or the world market size density of people or climate i Professor spoke about doing his laundry in Hawaii b Demographic Segmentation Age gender income ethnic background and family life cycle series of stages determined by combination of age marital status and the presence or absence of children i Questions with one word answers ii In class story Two boys who live next door to each other everything about them is the same c Psychographic What do you do on the weekend i AIO Attitudes Interests and Opinions ii Personality iii Motives iv Lifestyles v Geodemographics tailors to people in specific neighborhoods with specific lifestyles d Usage Rate Segmentation amount bought amount consumed i 80 20 principal 20 of all customers generate 80 of all demand e Buying Processes i Satisficers business customers who place an order with the first familiar supplier to satisfy product and delivery requirements ii Optimizers business customers who consider numerous suppliers both familiar and unfamiliar solicit bids and study all proposals carefully before selecting one 1 Wal Mart purchaser takes 5 off invoices 3 Strategies for Selecting Target Markets a Target market group of people or organizations for which an organization designs implements and maintains a marketing mix b Targeting Strategy i Undifferentiated Targeting adopts a mass market philosophy ii Concentrated Targeting iii Multisegment Targeting 4 CRM as a targeting Tool a Personalization b Time Savings c Loyalty d Technology 5 Positioning a Product differentiation b Perceptual Mapping displaying or graphing in two or more dimensions the location of products brands or groups of products in customers minds c Repositioning changing consumers perceptions of a brand Chapter 9 Marketing Research 1 Paralysis by Analysis story about Vander Kamp foods 2 The Marketing Research Process Identify and formulate the problem opportunity a b Plan the research design and gather data c Specify the sampling procedures d Collect primary data e Analyze data f Prepare and present the report g Follow up 3 Different Types of Survey Research a Ethnographic research Story about eating salsa and chips i Study of human behavior in its natural context b Virtual Shopping c Experiment researcher alters one or more variables a Field service firm specializes in interviewing respondents on a 4 Collecting Data subcontracted basis 5 Analyzing data 6 Scanner based research a Cross tabulation pattern emerge compares multiple questions a A system for gathering information from a single group of respondents by continuously monitoring the advertising promotion and pricing they are exposed to and the things they buy b Scanner base research Symphony IRI Group Inc largest data collection agency on the planet i InfoScan symphony s most successful product 7 CRM Customer Relationship Management 8 Competitive intelligence assess their competitors and vendors a Professor talked about Interviewing competing VP Chapter 10 Product Concepts 1 Convenience Product Lower price low mental involvement high turnover 2 Shopping Product compared heavily more expensive than convenience product 3 Specialty Products expensive reluctant to accept substitutes 4 Unsought products New products product known that a buyer does not actively seek 5 Product Items Lines and Mixes a Product mix all the items that a firm sells b Product line items that are similar in the same firm c Product item specific version of a product d Product Lines organization i Advertising Economies ii Package uniformity 1 Soda cans iii Standardized