MARK3001 1st Edition Lecture 3 Outline of Last Lecture II Advancing beyond the marketing concept A Societal marketing orientation a Key question III Marketing Environment A Definition of marketing environment B Environmental Scanning IV External Environmental Factors A Demographics B Social C Economics D Technological E Political and Legal F Competitive V Demographic Factors in the US A Current US Demographics VI Age Cohorts in the US A Tweens B Teens C Generation Y D Generation X E Baby Boomers VII Growing Ethnic Markets in the US VIII Social Factors in the US A Values B Conformity C Individuality D Work to live E Time IX Economic Factors A Overall economy B Consumer s ability to purchase C Consumer s willingness to purchase This is affected by a Income b Business cycles and perceptions how we feel and perceive the economy i Recession ii iii iv v vi Recovery Prosperity Depression Where can we find this information Consumer Perceptions Outline of Current Lecture I Laws and Regulations A They protect two things II Focus of legislation A To maintain a competitive environment Sherman and Clayton Acts B Fair prices a Robinson Patman price discrimination b Federal Trade Commission Act deals with price fixing which is when individual companies get together and set pricing ILLEGAL C Truthful Advertisement a Wheeler Lea Act D Safe Products a Consumer Product Safety Commission b Food and Drug Administration III Competitive Environment A Who is Disney s competition a Direct Competition Brand b Indirect Competition Product c Competition for Discretionary IV Marketing Research A Definition B The Marketing Research Process 1 Identify Problem 2 Plan Design of Research 3 Specify Sampling Procedure 4 Collect Data 5 Analyze Data 6 Prepare Present Report 7 Follow Up C STEP 1 Identify Problem D STEP 2 Plan Research Design a Decide on Type of data needed Primary or Secondary and method of collecting primary data 1 Secondary 2 Primary b c d e a Observation b Experimentation c Surveys Observation Research Experiments field or lab Survey Research Issues with surveys Interviewer Bias Sugging Current Lecture I Laws and Regulations B They protect two things Competition and Consumers II Focus of legislation E To maintain a competitive environment Sherman and Clayton Acts F Fair prices a Robinson Patman price discrimination b Used in B2B transactions c Example prevents P G from selling the same product to Kroger and Publix for two different prices assuming things like same time frame same number of orders same delivery method etc d Isn t usually to protect the consumer more for the businesses e Federal Trade Commission Act deals with price fixing which is when individual companies get together and set pricing ILLEGAL f Example gas stations across street from each other meet and set prices together as high as they want G Truthful Advertisement a Wheeler Lea Act b You can t deceive your consumers but you can over exaggerate to the point that no one would believe it c Example Car commercial jeep drops from helicopter obviously not possible in real life H Safe Products a Consumer Product Safety Commission b Food and Drug Administration III Competitive Environment B Who is Disney s competition a Direct Competition Brand Competition similar market of consumers trying to sell the same product Universal Studios Six Flags etc b Indirect Competition Product substitutable items that perform the same function Las Vegas Cruise going to the beach etc c Competition for Discretionary Money consumers have other uses for their money than spending it on the product IV Marketing Research E Definition the process of planning collecting and analyzing data relevant to a marketing decision F The Marketing Research Process 1 Identify Problem 2 Plan Design of Research 3 Specify Sampling Procedure 4 Collect Data 5 Analyze Data 6 Prepare Present Report 7 Follow Up G STEP 1 Identify Problem a Identify the key marketing decision b Usually involves TM Target Market or 4 P s c Translate into Research Problem d Example Do we need to expand parking for undergraduates on campus H STEP 2 Plan Research Design f Decide on Type of data needed Primary or Secondary and method of collecting primary data 3 Secondary usually collect this data first because it is already available and cheap but it may not be specific and may not always be reliable 4 Primary brand new knowledge created for the research effort a Observation b Experimentation c Surveys g Observation Research Manual Mechanical Ethnographic Virtual Shopping h Experiments field or lab Changing a variable and analyzing results Usually change one of 4 P s and look at what happens to sales and or awareness i Survey Research j In Home Interviews visit consumer s homes for interview Mall Intercept Interviews intercept consumer in places like malls and perform quick interview Executive Interviews calling people into office for interviews Focus Groups groups of individuals in target market ask them questions and assess their feelings about the product Telephone Interviews Mail Surveys Internet Surveys Issues with surveys Interviewer Bias presence of interviewer may change responses Consumer unwillingness to participate Sugging selling under the guise of research