EXAM 2 STUDY GUIDE MAR 3023 Product development target women rather then men because women affect decision more Pricing studies wine price wine higher means more quality Increase waiting time Elevators mirrors at the bottom of elevators increased satisfaction of wait in elevators Important foundation of marketing strategy decisions Applied research solves a very specific problem see it in industry marketing research team Basic research specific phenomenon what professors do STARTS W PROBLEM Secondary data research that you did not specifically collect outside source purpose other than research at hand Ratemyprofessor you can learn from it even though you specifically didn t collect the data Primary data you created and you collected for your research problem If you were the one specifically collecting the rate my professors info Exploratory less structured not quite sure what the exact question is Focus groups and secondary data Focus group researcher or moderator and let people talk about the product Descriptive data research questions who buys product when they buy it where what why Ex SURVEY Casual identifies cause and effect between variables Correlation and causation Experiments Segmentation process of breaking up groups into segments Allows you to tailor product Cluster analysis plot segments against core competencies and target group with most market potential Targeting develop product to attack markets and segment Undifferentiated 1 mass market 1 marketing mix No tailoring product Everything the same for everyone Differentiated two or more segments more than 1 marketing mix Separate market into 3 segments and target two The two will be different Concentrated single marketing 1 marketing mix Target one segment and keep it similar Different ways to segment Demographics gender age ethnicity education religion Geographic region city size urban rural region Ex Cracker Barrel targets south because it s culture Very rare on west coast Psychographics personality motives lifestyles Behavioristic usage volume benefits loyalty price sensitive Ex Delta Sky Miles VALS SURVEY The Value and Lifestyles Survey Helps classify customers based on psychological characteristics that are Correlated with purchasing behavior Related to key demographics Nielsen s Claritas did what VALS did but segmented a lot more Offers Prism a geo demographic segmentation tool Sales Forecast amount of product Trend Analysis many years Cycle 3 5 years Seasonal week month season Test Market make product available to buyers in one or more tested areas and measuring purchases and consumer reports Ex Jacksonville because it has same demographics as U S as a whole Product Positioning where process of developing and maintaining a product image in the minds of consumers Reposition EX St John used to be sold to older ladies segment they were targeting Repositioned to younger segment by getting Anna Jo Lee as spokesperson EX Mercedes fell off as 1 German luxury car and repositioned with B Class cars to make cars more affordable 1 SEGMENT 2 TARGET 3 POSITION create two products and sell it to segments 4 REPOSITION Involvement High Involvement careful consideration before purchasing risky and or expensive Ex car Low Involvement very little thought not risky daily buys EX Water bottle Grocery stores use holiday colors to try to lure you in to make a low involvement purchase Routinilized Habitual Decision Making choices made with little no consciousness or thought Limited Problem Solving requires moderate time for information gathering EX Ask a friend about a restaurant Extended Problem Solving consumer tries to gain as much information as possible Ex Buyimg a car Problem Recognition recognize you have a problem and an realize you have a desired state you want to be at Information search Internal search your own memory for information External use outside searches and other people for information Product Selection most consumers are cognitive misers want to do little thinking Heuristics mental shortcuts Ex Higher price better product Postpurchsase Dis satisfaction an emotional reaction to the purchase Bought Oakley s but maybe should of bought the Ray Bans Malsow s Hierarchy buy using basic needs first bottom and move up the pyramid From Bottom to Top Physiological needs safety needs social needs esteem needs self actualization needs Global Markets answering question of how foreign markets will react to your domestic product Culture answering question how to change your product to fulfill different markets Culture and Meaning Global Market Forces Meanings are different language culture and history EX Nike black and tan shoe which is a derogative term to Irish people Black and tan is a fun drink in the states Sociocultural Forces language interpretation difficulties Econoic Forces BRICS Brazil Russia India China South Africa are forcing many market changes Political Legal and Regulatory Forces Tariffs Embargos Quotas Trade etc Ethical and Social Responsibility Forces Situational Ethics Corruption Bribes Market Entry Competitive Forces Global Competition is Increasing Technological Forces Use of Internet advertising mobile technology etc Adaptation changing product to adapt to other markets and consumers Ex McDonalds Standardization no changing to product every consumer will want the same EX Rolex Advantages cut offs cheaper build global brand Gray Marketing Legal importation of genuine products into a country by other than authorized intermediates Ex Cornell student bought books overseas extremely cheap and sold them on eBay for a price lower than domestic bookstores Not Illegal but possibly unethical
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