Marketing Exam 1 (Notebook Notes)
Consumer Decision Making Process & Organizational Buying Differences:
- Organizational Buying is more complex/typically longer/Taking more time/Larger Quantities + More people affected
Causal Designs
- To get the cause & effect you need to create an experiment -Variable needs to be manipulated or controlled (In experiment) -Experiment manipulates/controls -Cause variable/ Effect variable -Promotions/Ratings -Manipulate the causal variable
Descriptive Designs
- You cant get correlations - Limited -Descriptive data can not show cause & effect -Surveys
Exploratory research is research that is ?
Done W/O prior expectations -Internal= Sales Transactions/ Data sources -External=U.S. Census
Internal search
For information Occurs when the buyer examines his or her own memory and knowledge about the product or service, gathered through past experiences
External search
For information Occurs when the buyer seeks information outside his or her personal knowledge base to help make the buying decision
Marketing mix
a combination of factors that can be controlled by a company to influence consumers to purchase its products.
The Marketing mix is the specific COMBINATION of the FOUR P variables. What are the four p variables?
1. Product Strategy 2. Price 3. Promotion 3. Place (Distribution)
2 ways social class affects ...
1. Behave according to the class which you belong 2. Behave for the class in which you aspire
External Influences:
1. Culture (Share core values) 2. Social Class 3. RGI 4. Income
What are the 5 Steps for the Marketing Research Process
1. Defining the Objectives/ Research needs 2. Designing the research 3. Collecting the data 4. Analyzing data/ Developing insights 5. Developing/ Implementing
Organizational Buying Process
1. Recognize Problem 2. Review Specifications 3. RFP => Request for Proposal (Pricing Info) ( Price/How gonna pay?/In portions?) 4. Select Supplier 5. Specify Order 6. Supplier Evaluation
What is the order of Marketing Mix, Target Market, Positioning ?
1. Target Market 2. Positioning 3. Market Mix
What is the number one determinant of class?
1. Job/Occupation 2. Education 3. Income
Consumer Behavior Making Order
1. Need Recognition 2. Search for Info A. Internal B. External 3. Alternative Evaluation 4. Purchase 5. Post-Purchase Outcomes
What are the 3 types of Organizational Buying Decision?
1. New Task = Product you haven't purchased before and evaluating buyers you haven't used before 2. Modified Rebuy = Either its a product you haven't bought before and evaluating suppliers OR buying new products and same suppliers 3. Straight Rebuy = Same product AND Same supplier (Customers need to be satisfied)
What are the 3 types of RGI?
1. Normative: General Influence/ Broad values, Family (Value expressive) 2. Comparative: Wanting to be associated with a certain group => based on social rewards vs social costs (Avoid/Value expressive) 3. Informational: Informative, Shares info w/another, Received Credibility => Perceived Knowledge Perceived Trustworthiness (Not Value Expressive)
What is Marketing Mix ?
A combination of factors that can be controlled by a company to influence consumers to purchase its products. 1. Product 2. Price 3. Place 4. Promotion
Request for proposals (RFP)
A process through which buying organizations invite alternative suppliers to bid on supplying their required components."
Planning
Allocate resources to business units/ brands
Stratified Random
Break into groups, then randomly pick inside the groups
Cluster
Break people into groups, randomly pick groups, randomly pick people within the random groups (too many groups)
It is cheaper and more efficient to retain your customers than it is to solicit new customers <=>
Customer compare expectations to actual product
Primary data
Data collected to address specific research needs (Focus groups, In depth Interviews, Surveys) -Finding out new info/Find out what questions you need to ask
All secondary data is what?
EXPLORATORY
True or False: Positioning comes before Target Market?
False: Target market comes before positioning => Know your market well, so you can design a positioning image to hit that market
Reference Group Influence(s) (RGI)
Influence people have on you (External influence)
Qualitative research
Informal research methods, including observation, monitoring of social media sites, in-depth interviews, and focus groups.
Habitual Buying
Making a repeated purchase number of times of an already known brand w/o the process of high involvement and decisioning
Simply Random
Names in a hat/ Identical chance
Consumer Decision Making Process & Organizational Buying Similarities:
Need Recognition <=> Recognize Problem Info Search <=> Review Specifications Evaluate Alternative(s) <=> Select Supplier Purchase <=> Specify Order Post Purchase Outcomes <=> Supplies Evaluation
Alternative evaluation
Often occurs while the consumer is engaged in the process of information search
Functional needs
Pertain to the performance of a product or service."
Secondary data
Pieces of information that have already been collected from other sources and usually are readily available
SBU (strategic business unit)
Product, act on its own be profitable, Any # of brands in an SBU
What are the four P's ?
Product, price, place, and promotion The four Ps are the controllable set of decisions or activities that the firm uses to respond to the wants of its target markets
What are some primary data collection techniques?
Qualitative: Observation/In-depth Interviews/Focus groups Both: Data Collection Research Quantitative: Survey, Panel, Scanner, Experiments
Non-Probability Sample
Sample in which EITHER/OR you cant not calculate each members of inclusion, Convenience Sample
Probability Sample
Sample in which each member of the population has the same chance to be included AND each members chance of inclusion CAN BE calculated
Involvement is motivation level to spend time and energy on ?
Search & Evaluation
As a marketer you need too...
Set real expectations
Shared Core Values => Culture => Shapes how you define everything
Shared Core Values => Culture => Shapes how you define everything
Social Class <=> Occupation
Social Class <=> Occupation
Speed Fast. / Medium. / Slow. Price. Expensive/Inexpensive/Inexpensive
Speed Fast./Medium./ Slow. Price: Expensive/Inexpensive/Inexpensive
Marketer seeks what?
Straight Rebuy
What is an SBU?
Strategic Business Unit => It is either a product or is a set of related products SBU is similar to scope
Quantitative research
Structured responses that can be statistically tested to confirm insights and hypotheses generated via qualitative research or secondary data."
True or False: Cant Assume => Cause + Effect from descriptive data you just cant
TRUE
True or False: Some primary data can be exploratory (Focus group, In-depth, interviews, surveys)
TRUE
Who does the SBU manager work with ( idk) to what?
Target Market & Positioning
Need recognition
The beginning of the consumer decision process; occurs when consumers recognize they have a unsatisfied need and want to go from their actual, needy state to a different, desired state."
Post-Purchase Outcomes
The final step of the consumer decision process is post purchase behavior. Marketers are particularly interested in post purchase behavior because it entails actual rather than potential customers. Satisfied customers, whom marketers hope to create, become loyal, purchase again, and spread positive word of mouth, so they are quite important. There are three possible post purchase outcomes, as illustrated in
Impulse Purchase
To buy an item without thinking about it/ Unplanned
True or False A brand image compared to other brands is positioning?
True
True or False: Does the SBU hire someone in different functional areas?
True
True or False: The trick to the SBU is that it is able to stand alone and be profitable?
True