Marketing Week 5: Chapter 6: Consumer Decision Making1. Consumer Decision Making Processa. Cultural, social, individual and psychological factors affect all stepsi. Need Recognitionii. Information Searchiii. Evaluation of alternativesiv. Purchasev. Post-Purchase behavior 2. Factors Determining the Level of Consumer Involvement a. Previous Experienceb. Interestc. Perceived Risk of negative consequencesd. Social Visibility3. High Consumer Involvementa. Product Involvementb. Situational Involvementc. Shopping Involvementd. Enduring Involvement e. Emotional Involvement 4. Marketing Implications of Involvementa. Marketing is constantly changing, marketing professional must change and adapt to a changing external environment 5. Social Classa. Upper Classesi. Capitalistsii. Upper Middle Classb. Middle Classi. Middle Classii. Working Classc. Lower Classi. Working poorii. Underclassd. Miller High life story, butler with miller high life beers, asks guest for champagne or bottled beer, Pour beer into champagne. 6. Maslow’s Hierarchy of Needsa. Self Actualization of Needsb. Esteem needsc. Social needsd. Safety needse. Physiological needs Chapter 7: Business Marketing1. Business to Business electronic commercea. Use of the internet to facilitate activities between organizations2. Measuring Online Successa. Stickiness= Frequency * Duration * Site Reachb. Quantcast.com3. Strategic Alliance: Starbucks and United airlines 4. Producersa. 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 Marketsa. Derived demand: organizations buy products to used in producing their customers’ products. b. Purchase Volume: c. Use of reciprocityd. Use of Leasing 6. Types of Business Materialsa. Major Equipmentb. Accessory Equipmentc. Raw Materialsi. Unprocessed d. Component Parksi. Finished items ready for assembly or products that need very little processing e. Processed Materialsf. Supplies g. Buying Centersi. Rules In the Buying Center1. Initiator 2. Influencers/Evaluatorsa. Technical personnel (especially important) 3. Gatekeepersa. Group members who regulate the flow of information.4. Decidera. Approve the selection of the supplier or brand 5. Purchasera. Negotiate prices6. Usersh. Evaluative Criteriai. Quality: technical suitability Marketing 351: Harry Anicich Chapter 8: Segmenting and Targeting Markets1. Criteria for successful segmentationa. Substantiality: a market segment needs many potential customersi. “Big enough”b. Indentifiability and measurabilityc. 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 Marketsa. 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. Motivesiv. Lifestylesv. 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 Processesi. 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 Marketsa. Target market: group of people or organizations for which an organization designs, implements and maintains a marketing mix.b. Targeting Strategyi. Undifferentiated Targeting: adopts a mass-market philosophy ii. Concentrated Targetingiii. Multisegment Targeting4. CRM as a targeting Tool a. Personalizationb. Time Savingsc. Loyaltyd. Technology5. Positioning a. Product differentiationb. 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 Research1. Paralysis by Analysis: story about Vander Kamp foods 2. The Marketing Research Processa. Identify and formulate the problem/opportunityb. Plan the research design and gather datac. Specify the sampling proceduresd. Collect primary datae. Analyze dataf. Prepare and present the reportg. Follow up3. Different Types of Survey Researcha. Ethnographic research: Story about eating salsa and chipsi. Study of human behavior in its natural context. b. Virtual Shoppingc. Experiment: researcher alters one or more variables. 4. Collecting Dataa. Field service firm: specializes in interviewing respondents on a subcontracted basis. 5. Analyzing dataa. Cross-tabulation: pattern emerge, compares multiple questions6. Scanner-based researcha. 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 VPChapter 10: Product Concepts1. Convenience Product: Lower price, low mental involvement, high turnover2. Shopping Product: compared heavily, more expensive than convenience product3. Specialty Products: expensive, reluctant to accept substitutes4. Unsought products: New products, product known that a buyer does not actively seek. 5. Product Items, Lines and Mixesa. Product mix: all the items that a firm sells. b. Product line: