MARK3001 1st Edition Lecture 3 Outline of Last Lecture II. Advancing beyond the marketing conceptA. Societal marketing orientationa. Key question III. Marketing EnvironmentA. Definition of marketing environmentB. Environmental ScanningIV. External Environmental FactorsA. DemographicsB. SocialC. EconomicsD. TechnologicalE. Political and LegalF. CompetitiveV. Demographic Factors in the USA. Current US DemographicsVI. Age Cohorts in the USA. TweensB. TeensC. Generation “Y”D. Generation “X”E. Baby BoomersVII. Growing Ethnic Markets in the USVIII. Social Factors in the USA. ValuesB. ConformityC. IndividualityD. Work to liveE. TimeIX. Economic FactorsA. Overall economyB. Consumer’s ability to purchaseC. Consumer’s willingness to purchase. This is affected by:a. Incomeb. Business cycles and perceptions (how we feel and perceive the economy)i. Recessionii. Recovery iii. Prosperity iv. Depression v. Where can we find this information? vi. Consumer PerceptionsOutline of Current Lecture I. Laws and Regulations:A. They protect two thingsII. Focus of legislationA.To maintain a competitive environment (Sherman and Clayton Acts)B.Fair prices:a.Robinson Patman – price discriminationb.Federal Trade Commission Act – deals with price fixing, which is whenindividual companies get together and set pricing (ILLEGAL)C.Truthful Advertisement:a.Wheeler-Lea ActD.Safe Products:a.Consumer Product Safety Commissionb.Food and Drug AdministrationIII. Competitive EnvironmentA. Who is Disney’s competition?a. Direct Competition/Brand b. Indirect Competition/Product c. Competition for Discretionary IV. Marketing ResearchA. DefinitionB. The Marketing Research Process – 1. Identify Problem2. Plan Design of Research3. Specify Sampling Procedure4. Collect Data5. Analyze Data6. Prepare/Present Report7. Follow UpC. STEP 1 – Identify ProblemD. STEP 2 – Plan Research Designa. Decide on…- Type of data needed (Primary or Secondary) and method of collecting primary data1. Secondary2. Primarya. Observationb. Experimentationc. Surveysb. Observation Researchc. Experiments (field or lab)d. Survey Researche. Issues with surveys:- Interviewer Bias- SuggingCurrent LectureI. Laws and Regulations:B. They protect two things - Competition and ConsumersII. Focus of legislationE.To maintain a competitive environment (Sherman and Clayton Acts)F.Fair prices:a.Robinson Patman – price discriminationb.Used in B2B transactionsc.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 businessese.Federal Trade Commission Act – deals with price fixing, which is whenindividual 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 wantG.Truthful Advertisement:a.Wheeler-Lea Actb.You can’t deceive your consumers but you can over-exaggerate to thepoint that no one would believe itc.Example: Car commercial – jeep drops from helicopter (obviously not possible in real life)H.Safe Products:a.Consumer Product Safety Commissionb.Food and Drug AdministrationIII. Competitive EnvironmentB. 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 thesame function (Las Vegas, Cruise, going to the beach, etc.)c. Competition for Discretionary Money – consumers have other uses fortheir money than spending it on the productIV. Marketing ResearchE. Definition: the process of planning, collecting, and analyzing data relevant to a marketing decisionF. The Marketing Research Process – 1. Identify Problem2. Plan Design of Research3. Specify Sampling Procedure4. Collect Data5. Analyze Data6. Prepare/Present Report7. Follow UpG. STEP 1 – Identify Problema. Identify the key marketing decisionb. Usually involves TM (Target Market) or 4 P’sc. Translate into Research Problemd. Example: Do we need to expand parking for undergraduates on campus?H. STEP 2 – Plan Research Designf. Decide on…- Type of data needed (Primary or Secondary) and method of collecting primary data3. Secondary: usually collect this data first because it is already available and cheap, but it may not be specific and may not always be reliable4. Primary: brand new knowledge created for the research efforta. Observationb. Experimentationc. Surveysg. Observation Research- Manual- Mechanical- Ethnographic- Virtual Shoppingh. 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 awarenessi. Survey Research- 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 Surveysj. Issues with surveys:- Interviewer Bias: presence of interviewer may change responses- Consumer unwillingness to participate- Sugging: selling under the guise of