Test 2 Lecture Notes Chapter 6 Business and Organizational Customers and Their Buying Behavior All Business and Organizational Customers Intermediaries wholesalers middleman Business to business Producers Retailer is business to consumer Government units Nonprofits Organizational Customers are different than us Logical Rational Not emotional Specifications and Quality Specifications describe the need Quality certification Buying Center Committee Used by large companies Logical rational way of buying something Evaluating organizational buying influencers Vendor analysis considers all influences Ethical conflicts may arise Three buying types processes o Business ordering paper o Person buying lunch everyday thought time required do research o School buying new computers o Buying new cell phone printer Straight rebuy do very often not complicated not much thought Modified rebuy not as often 1 3 years more expensive more complicated more New task buying very infrequently most expensive and complicated takes a lot of research and time o Buying a copier o Building a new building o Buying first house or car Dynamics of buyer seller relationships Powerful customer may control the relationship o Walmart buys in bulk at low price turnover Buyers may use several sources to spread risks have backup plans with established relationships Manufacturers are important customers or used to be Clustered in geographic ares not near residents Not many big areas The government market Size and diversity Competitive bids Chapter 7 Improving Decisions with Marketing Information Marketing Information Systems Makes information available and accessible Get more information faster and easier An intranet is easy to update Five Step Marketing Research Approach Step 1 Defining the problem o Finding the right level problem o Problems vs symptoms must treat problem o Intrinsic needs not satisfied with turnover Step 2 Analyzing the Situation o What information do we already have o Situation analysis helps educate a researcher o Data sources Secondary already exists free relatively quick pretty accurate but not super accurate Inside company intranet reports files people sales Outside company internet libraries government university Primary doesn t yet exist you must get it takes time costs money Observation video scanner website analysis Questioning mail online focus groups in depth interviews Step 3 Getting Problem Specific Data surveys o Primary date from observing and questioning o Structured questioning gives more objective results o Quantitative research o Primary methods for collecting survey data mail and online telephone personal o Observing common in advertising research check out scanners Walmart greeters interview Step 4 Interpreting the Data o Key Concerns Sample big enough to reflect population Population Validity Step 5 Solving the Problem o No action implications little value o Actionable results Chapter 8 Elements of Product Planning for Goods and Services Conditions favorable to branding Recognized trademarks and symbols help in promotion Easy to label and identify Product quality and best value Dependable and widespread availability Achieving brand familiarity 5 levels Brand rejection can t fix with marketing Brand non recognition fixable with marketing Brand recognition good Brand preference better Brand insistence best The right brand name can help Short and simple Easy to spell and read Easy to recognize and remember Easy to pronounce Suggests product benefits Ways benefits consumers and marketers Protecting promoting enhancing Socially responsible packaging issues Packaging can hurt environment Federal Fair Packaging and Labeling Act Warranty policies are part of strategy planning Promises in writing Magnuson Moss act regulates warranties May improve marketing mix Warranty peace of mind Consumer product classes Convenience products o Staples milk o Impulse gum o Emergency advil Shopping products o Homogenous o Heterogeneous cars Specialty products Tiffany Unsought products o New unsought don t yet know about it o Regularly unsought needs lots of personal selling life insurance cemetery plots Chapter 9 Product Management and New Product Development Life cycle of a new product concept Market intro total industry profit initially below zero and industry sales initially at zero Market growth total industry sales reach peak at end of stage and industry profit increases Market maturity industry sales level off and industry profit declines as competition is introduced and the company is forced to lower their prices Sales decline industry sales begin to decline and industry profit becomes closer to or even below zero depending on the choice of the company to keep the product on shelves and to keep producing it