Ba 370 Final

Buyer Behavior Process

1) need recognition 2) information search 3) evaluation of alternatives 4) purchase 5) reaction -helps marketers understand what a customer goes through during a purchase

Maslow's Hierarchy of Needs

1) physiological needs: hunger, thirst and shelter 2) safety needs: shelter and protection from harm 3) social needs: belonging, community, friendship, relationship 4) esteem needs (ego): self-respect, autonomy, status, recognition 5) self-actualization needs: finding enjoyment & purpose in life

The 4 Ps of marketing

1) product: quality, packaging, other attributes 2) place: physical storefront, website, kiosk 3) price: prestige pricing, volume discounts, bundle pricing 4) promotion: advertising, public relations, sponsorships

Steps to create a survey

1) re-examine the research question 2) specify what information the survey must collect 3) identify who should take the survey 4) develop the questions to ask 5) create "dummy" tables to show how you will use the data 6) devise a way to recruit people to take the survey 7) build and test the survey 8) field the survey

Survey Design Mistakes

-failure to build the survey around the research question -failing to understand the survey population -forgetting to introduce your survey -structuring questions poorly -asking too many/too few questions -putting most important questions at the end -requiring participants to answer all the questions

When creating a buyer persona

-general demographic information -goals: either in life/business relevant to the product -values: what is important -challenges: what do they struggle with to reach goals -a day in the life: what does a typical day look like -sources of information: where do they get info -pain points: what would stop them from purchasing -fun facts: what else can be aded -marketing message: address challenges/show value

Differentiated Marketing

-mix 1 -> segment one; mix 2 -> segment two -when a company targets more than one market segment AND develops a unique marketing mix to target each segment separately

Marketing can serve as an external cue of a need

-pointing out a new desired state for a consumer -showing ho w consumer's current state is insufficient -point out where current behavior is insufficient

Forming the Buyer Persona

-should include enough information to describe a real person -should be based on real research

Uses for a positioning statement

-to see where a "hole" or need is -to justify current positioning

Consideration Set

-what is left after all obviously unsuitable choices are ruled out -occurs prior to external searching

Steps to create a meaningful market segment

1) choose meaningful characteristics 2) choose the number of characteristics to include 3) determine if the segment is a desirable market segment

Where does the marketing concept put marketing?

At the beginning of the process

A brand's positioning and a product's positioning must match

True

A positioning statement is not advertising copy; in fact, positioning statements will probably never be seen by a customer

True

It is useful to create a positioning matrix to visualize how the product is positioned relative to its competitors

True

One size does not fit all; you cannot position to appeal to everyone

True

Positioning is about showing value for consumers--not the technical features

True

Positioning statements should guide every choice a marketer makes

True

Positioning statements that are effective are realistic; they are not filled with hyperbole

True

Products that are positioned well occupy a niche uniquely, and the positioning statement therefore must identify what makes a product unique

True

The best positioning statements are developed colllaboratively

True

Consumption

Using a good or service to fill a need

Brand Image

a consumer could have awareness of a brand but feel disdain for it; for this reason, marketers will also use surveys to measure how target customer groups feel about brands

Need

a gap between a consumer's current state and their desired state

Product

a good, service, or idea to satisfy a customer's needs

Accessible

a segment is accessible if a marketer can reach the consumer for marketing and for sales of the product

Identifiable

a segment is identifiable when a marketer can clearly identify the segments and can describe the traits or characteristics of that segment

Stable

a segment is more stable if it is predictable in its purchasing ability & behavior

Sizable

a segment is sizable when there are enough consumers within the group to support profitable product sales

Congruent

a segment should also have congruence with the company, meaning it aligns with the company's objectives and resources

Net Promoter Score (NPS)

a specific type of survey to measure the experience customers have with brands; measures how likely you are to recommend the product to a friend/colleague

Positioning statement

a succinct expression of a product's market position; developed at the end of the positioning process

Positioning as a Follower

any positioning for a product that is preceded by a similar product; usually benefits from working with a niche market; finding differentiation is the most important piece of this strategy

Brand Awareness

brands commonly create surveys to understand how well customers recognize their products; thee surveys are one way that brands can test to see if advertising is working

Secondary Quantitative Data

census data

External cues

comes from the environment; can be an advertisement

Internal Cues

comes from within a person; can be hunger or thirst

Where to find secondary data

company database, google legitimate statistics websites

Purchase

consumer decides to purchase, including where & how to purchase

Evaluation of Alternatives

consumer looks at the different available and viable options, then weighs the upsides and downsides of each

Need Recognition

consumer recognizes that he/she has a need

Information Search

consumer searches for information regarding the available options for purchase/consumption

Where to find primary data

depth interview, focus groups, case analyses, projective methods

Marketing Research

different types of research performed by marketers using various methods depending on their need for information

Respositioning

done when a current position no longer appeals to a consumer base; done to take advantage of a competitor's weakness

marketing is responsible for

ensuring that a firm understands its customer finding the best ways to reach customers encouraging customers to purchase turning customers into brand loyalists

In the information search stage, the consumer looks for info that might fulfill their need

ex) what type of product is available, what businesses offer a specific service, or what brands carry a needed item

Target Markets should be

identifiable, sizable, stable, accessible, congruent

Primary Quantitative Data

survey data

Benefits of using primary data

tailored to a specific research question, variety of ways to find them, may help research questions besides yours in the future

Benefits of using secondary data

low costs, available immediately, often easy to find

Secondary Qualitative Data

magazine article

Primary Data

new data that researches must collect

Why divide?

not everyone is the same, not everyone has the same needs. segmentation therefore increases customer satisfaction and ROI by marketing more efficiently

Price

the amount being charged

Top of Mind Awareness

the brands a consumer first recalls from memory

Marketing mix

the building blocks that a marketer can adjust to affect the overall marketing strategy of a product

Marketing management

the process of setting marketing goals, the planning & execution of activities to meet these goals, and measuring progress toward their achievement

Position

the space in the market for which a product is ideally suited

Physical Evidence

the tangible elements in the place that the good or service is sold

When customers see that products are different and better:

they pay more to buy them, develop loyalty towards the brand, develop resistance to competing product offers, and become advocates for the product

Primary Qualitative Data

focus group results

Descriptive Research

focuses on determining how often something occurs

Casual Research

focuses on discovering the cause-and-effect relationship between variables

Positioning statement template

for (target audience), product/service is (concise description). It is ideal for (best use of application) because (primary benefit or differentiation)

Being first (positioning)

those who are first to accomplish something earn awareness; this can mean earning credit, free marketing, or fame

Secondary Data

pre-existing data found through literature searches or data mining

In the absence of any other input, consumers judge quality based on

price

The 7 Ps of marketing

product, price, place, promotion, process, people, physical evidence

Gaining Customer Insight

regular market research gives marketers a competitive edge

Customer Satisfaction

regular surveys will reveal if satisfaction is rising or falling, giving marketers insights into what causes satisfaction levels to change

Detractors (NPS)

scores of 0-6 on the scale; customers who are unhappy and can hurt your brand. subtracted from amount of promoters to get NPS

Passives (NPS)

scores of 7 & 8 on the scale; customers who are satisfied but not enthusiastic about the brand. does not affect NPS

Promoters (NPS)

scores of 9 & 10 on the scale; customers who are loyal enthusiasts

Exploratory Research

useful in gaining insights & ideas and is often used to funnel broad research questions into more precise ones

Psychographic Segmentation

uses consumer activities, values, interests, and opinions

Geographic Segmentation

uses geographic location

Usage Segmentation

uses how often a consumer uses or how a consumer uses a product; usage rate & usage situation

Demographic Segmentation

uses statistics such as age, gender, income, ethnicity, and education

Research Question

usually made to target a specific problem, seek feedback from customers; can be very clear or hazy

Irrelevant Positioning

when a product claims benefits or differentiation that no customers care about

Under-positioning

when a product has no clear advantage or differentiation

Confused Positioning

when a product is positioned by claiming too many or contradictory benefits

Over-positioning

when the product has been positioned too narrowly

Doubtful Positioning

when the way a product is positioned touts benefits that are simply not believable or that are too good to be true

marketing is not the same as advertising

while advertising is a part of marketing, it is only one piece

The 3 Cs that can help develop a brand positioning statement

-Consumer Analysis: relevant, resonant, realistic -Competitive Analysis: distinctive, defensible, durable -Company Analysis: feasible, favorable, faithful

The Buyer Persona

-a representation of a marketer's market segment -helps to give tangibles a face to the target market -the more realistic, the better

Positioning

-a strategy for defining and portraying brands or products in ways that cause the ideal customers to perceive them as the best solution for their needs -a marketer is making sure the correct people are being communicated with & that the consumer sees value in their products -helps products stand out in a cluttered world -answers "Why should I buy from you?"

Reaction

-aka post purchase behavior -consumer has consumed the product, be it a physical product or service, and is pleased or displeased

Undifferentiated Marketing

-also known as mass marketing -company marketing mix -> broad market -when a marketer uses only one strategy/marketing mix for the entire market

Unique Selling Proposition (USP)

-an adaptation of the product positioning statement for use in sales dialogues and communication -conveys the most compelling benefit of the product in terms a customer should easily understand

Positioning Strategies

-being first -positioning as a follower -repositioning

Concentrated Marketing

-company marketing mix -> segment 1 & 2 & 3 -when a company selects one target market AND customizes a marketing mix for that target market only

Process

the flow of activities involved in providing goods, services, and ideas to the customer

People

the human actors who provide products to the customer

Promotion

the means of communicating with the customers

Place

the means of getting the product to the customer

Marketing Segmentation

the process of breaking down large groups into smaller groups based on meaningful characteristics and shared needs; meaningful characteristics include demographic, psychographic, usage, and geological characteristics