Marketing Test 1

Primary data: other sources: big data

"Big data is a vague term generally used to describe large amounts of data collected from a variety of sources and analyzed with an increasingly sophisticated set of technologies. "

"Advantages and Disadvantages of Primary Data"

"Compared with secondary data, primary data have the advantages of being more flexible and more specific to the problem being studied. The main disadvantages are that primary data are usually far more costly and time-consuming to collect than secondary data."

PRIMARY DATA—QUESTION FORMATS

-Open-Ended Questions ("open-ended question, which allows respondents to express opinions, ideas, or behaviors in their own words without being forced to choose among alternatives that have been predetermined by a marketing researcher. This information is invaluable to marketers because it captures the "voice" of respondents, which is useful in understanding consumer behavior, identifying product bene-fits, or developing advertising messages.") -Closed-End or Fixed Alternative Questions ("in contrast, closed-end or fixed alternative questions require respondents to select one or more response options from a set of predetermined choices.) -Dichotomous Questions (The dichotomous question is a question which can have two possible answers) -Semantic Differential Questions (tasty vs not tasty, clean vs dirty, etc) "semantic differential scale, a five-point scale in which the opposite ends have one- or two-word adjectives that have opposite meanings. For example, depending on the respondent's opinion regarding the cleanliness of Wendy's restaurants, he or she would check the left-hand space on the scale, the right-hand space, or one of the three other intervening points. " -Likert Scale Questions (strongly agree, most agree, etc)

5 stages of the purchase decision process: 1. Problem recognition: -starts with the difference between what?

-starts with the difference between consumer ideal situation and consumer actual situation

Situational Influences Affect Purchase Decisions 5 Situational Influences

1. Purchase Task (gift for someone I love) 2. Social Surroundings (with my honest friend) 3. Physical Surroundings (store atmosphere) 4. Temporal Effects (in a hurry) 5. Antecedent States (I'm hangry)

5 elements of an environmental scan

1. social 2. economic 3. technological 4. competitive 5. regulatory

What are marketing segments?

Relatively homogenous groups of buyers that have common needs and will respond similarly to a marketing action.

Consumer Behavior: Personality: -ideal vs. actual self

actual and ideal; marketers appeal to ideal self

culture

the set of values, ideas, and attitudes that are learned and shared among the members of a group. Many elements of culture influence buying patterns

Ads and cognitive dissonance

the uneasy feeling we get when our behavior is not in line with our beliefs. We reduce this feeling by: changing our behavior justifying our behavior through changing a dissonant thoughts justifying our behavior by adding new thoughts

purchase decision process

" The stages a buyer passes through in making choices about which products and services to buy is the purchase decision process."

neuromarketing method of observational primary data

observe responses to nonconscious stimuli

Ethical violation happens when

something is unethical but legal

advantages and disadvantages of secondary research

"A general rule among marketing researchers is to obtain secondary data first and then collect primary data. Two important advantages of secondary data are (1) the tremen-dous time savings because the data have already been collected and published or exist internally and (2) the low cost, such as free or inexpensive Census reports. Furthermore, a greater level of detail is often available through secondary data, especially U.S. Census Bureau data.However, these advantages must be weighed against some significant disadvan-tages. First, the secondary data may be out of date, especially if they are U.S. Census data collected only every 5 or 10 years. Second, the definitions or categories might not be quite right for a researcher's project. For example, the age groupings or product categories might be wrong for the project. Also, because the data have been collected for another purpose, they may not be specific enough for the project. In such cases, it may be necessary to collect primary data."

-Marketing seeks to do which two things? -these prospective customers include whom -they key to achieving these two objectives

1. Discover needs and wants of prospective customers through research. 2. Satisfy those needs through a marketing program. these prospective customers include both individuals and organizations the key to achieving these two objectives is the idea of exchange, which is the trade of things between buyer and seller so that each is better after the trade

Primary data: other sources: experiment

"An experiment involves obtaining data by manipulating factors under tightly controlled conditions to test cause and effect. The interest is in whether changing one of the independent variables (a cause) will change the behavior of the dependent variable that is studied (the result). In marketing experiments, the independent variables of interest—sometimes called the marketing drivers—are often one or more of the marketing mix elements, such as a product's features, price, or promotion (like advertising messages or coupons). The ideal dependent variable usually is a change in the purchases (incremental unit or dollar sales) of individuals, households, or organizations. For example, food companies often use test markets, which offer a product for sale in a small geographic area to help evaluate potential marketing actions. McDonald's, for example, tested its delivery service in three Florida cities to assess consumer interest before deciding to expand. Recently, McDonald's expanded delivery to 20,000 of its restaurants.28To discover how McDonald's used test markets to help develop its delivery service, see the text.Source: McDonald'sLO 8-5A potential difficulty with experiments is that outside factors (such as actions of competitors) can distort the results of an experiment and affect the dependent variable (such as sales). A researcher's task is to identify the effect of the marketing variable of interest on the dependent variable when the effects of outside factors in an experiment might hide it."

Primary data: other sources

"Four other methods of collecting primary data exist that overlap somewhat with the methods just discussed. These involve using (1) social media, (2) panels and experiments, (3) data analytics, and (4) data mining."

Primary data: other sources: data mining

"In contrast, data mining is the extraction of hidden predictive information from large databases to find statistical links between consumer purchasing pat-terns and marketing actions. Some of these are common sense: Since many consumers buy peanut butter and grape jelly together, why not run a joint promotion between Skippy peanut butter and Welch's grape jelly? But would you have expected that men buying diapers in the evening sometimes buy a six-pack of beer as well? Supermarkets discovered this when they mined checkout data from scanners. So they placed diapers and beer near each other, then placed potato chips between them—and increased sales on all three items! For how much online data min-ing can reveal about you personally and the ethical issues involved, see the Making Responsible Decisions box."

Primary data: other sources: artificial intelligence

"Large data-bases are also subject to artificial intelligence platforms which undertake reasoning and common sense tasks to allow computers to "behave" intelligently. IBM, Tesla, and Amazon, for example, are using artificial intelligence to operate Watson, guide self-driving cars, and make purchase recommendations, respectively"

Marketing Research

"Marketing research is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions.6 Although imperfect, marketers conduct marketing research to reduce the risk of—and thereby improve—marketing decisions"

mechanical methods of observational primary data

"National TV ratings, such as those of Nielsen shown in Figure 8-3 on the next page, are an example of mechanical observational data collected by a "people meter." The device measures what channel and program are tuned in and who is watching. The people meter (1) is a box that is attached to a television, DVR, cable box, or satellite dish in about 30,000 households across the country; (2) has a remote control unit that is used to indicate when a viewer begins and finishes watching a TV program; and (3) stores and then transmits the viewing information to Nielsen each night. Data about TV viewing are also collected using diaries (a paper-pencil recording system). "Broadcast and cable networks may change the time slot or even cancel a TV program if its ratings are consistently poor and advertisers are unwilling to pay a rate based on a higher rating."

problem recognition difference between ideal situation and real/actual situation

"Problem recognition, the initial step in the purchase decision, is perceiving a difference between a person's ideal and actual situations big enough to trigger a decision. This can be as simple as finding an empty milk carton in the refrigerator; noting, as a first-year college student, that your high school clothes are not in the style that other students are wearing; or realizing that your notebook computer may not be working properly.In marketing, advertisements or salespeople can activate a consumer's decision process by showing the shortcomings of competing (or currently owned) products or brands. For instance, an advertisement for a new generation smartphone could stimulate problem recognition because it emphasizes "maximum use from one device.""

What are the 4p's?

"Someone in the organization's marketing depart-ment, often the marketing manager, must develop a complete marketing program to reach consumers by using a combination of four elements, often called "the four Ps"" The 4ps are the controllable marketing mix factors: Product: good, service, or idea (offering) to satisfy consumer needs Price: what is exchanged for the product Promotion: a means of communication between buyer and seller Place: a means of getting the product to the consumer "For example, when a company puts a product on sale, it is changing one element of the marketing mix—namely, the price. The marketing mix elements are called controllable factors because they are under the control of the marketing department in an organization."

consumer involvement

"Sometimes consumers don't engage in the five-stage purchase decision process. Instead, they skip or minimize one or more stages depending on the level of involvement, the "personal, social, and economic significance of the purchase to the consumer.13 High-involvement purchase occasions typically have at least one of three characteristics: The item to be purchased (1) is expensive, (2) can have serious personal consequences, or (3) could reflect on one's social image. For these occasions, consumers engage in extensive information searches, consider many product attributes and brands, form attitudes, and participate in word-of-mouth communication. Low-involvement purchases, such as toothpaste and soap, barely involve most of us, but audio and video systems and automobiles are very involving."

environmental scan

"The process of continually acquiring information on events occurring out-side the organization to identify and interpret potential trends is called environmental scanning."

personal methods of observational primary data

"Watching consumers in person is another approach to collect-ing observational data. Procter & Gamble, for example, invests millions of dollars in observational research to identify new innovations. As several industry experts have observed, "Odds are that as you're reading this, P&G researchers are in a store some-where observing shoppers, or even in a consumer's home." While observing consumers using its Gillette shavers in India, P&G noticed that many consumers shaved with a small cup of cold water, which caused the blades to clog. As a result, P&G introduced the Gillette Guard razor with a single blade and an easy-rinse design. Similarly, IKEA noticed that customers often stopped shopping when their baskets or carts were full, so additional shopping bags are now placed throughout IKEA stores. Another method of collecting observational data is through the use of mystery shoppers. Companies pay researchers to shop at their stores, outlets, or showrooms to obtain the point of view of actual customers. Mystery shoppers can check on the avail-ability and pricing of products and services and on the quality of the customer service provided by employees. Supermarkets, electronics stores, banks, theme parks, and many other businesses use this technique as part of their customer experience management efforts, thus evaluating customer service, store cleanliness, and staff appearance and conduct. This process provides unique marketing research information that can be obtained in no other way."

Primary data: other sources: data analytics

"data analytics consists of several elements. Marketers use computers to specify important marketing queries or questions and to access the databases in the warehouse (or the cloud). Analytical tools are used to organize and manipulate the data to identify any managerial insights that may exist. The results are then presented using tables and graphics for easier interpretation. When accessing a database, marketers can use sensitivity analysis to ask "what if" questions to determine how hypothetical changes in product or brand drivers—the factors that influence the buying decisions of a household or organization—can affect sales.ResultsTraditional marketing research typically involves identifying possible drivers and then collecting data. For example, we might collect data to test the hypothesis that in-creasing couponing (the driver) during spring will increase trials by first-time buyers (the result)."

multicultural marketing

"programs, which are combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races. Because businesses must now market their products to a consumer base with many racial and ethnic identities, in-depth marketing research that allows an accurate understanding of each culture is essential."

5 elements of an environmental scan: 3. technological

-changing technology, technology's impact on customer value, technology enabled data analytics -examples: -connectivity and mobility have combined to increase the use of mobile and wearable devices to create connected cars, homes, and airplanes -addressable TV (IPTV) will soon allow advertising targeted to individual households based on their characteristics -social media such as Facebook and Twitter are adding new features such as a "Buy" button to allow marketers to sell directly to users "Artificial intelligence is becoming a common solution for consumers to navigate the marketplace as digital assistants like Amazon's Alexa, and Apple's Siri proliferate.• Virtual reality and augmented reality are becoming mainstream platforms for many product and service categories.• Intelligent devices such as smartphones, smartwatches, smart glasses, and others are enabling more personalized customer relationships."

primary data(questionnaire data): idea generation methods-testing an idea -what it is -personal interview surveys -mail surveys -telephone interviews -online interviews

-"In idea evaluation, the market-ing researcher tries to test ideas discovered earlier to help the marketing manager recommend marketing actions. Idea evaluation methods often involve conventional questionnaires using personal, mail, telephone, and online (e-mail or Internet) surveys of a large sample of past, present, or prospective con-sumers. In choosing among them, the marketing researcher balances the cost of the particular method against the expected quality of the infor-mation and the speed with which it can be obtained." -"Personal interview surveys enable the interviewer to be flexible in asking probing questions or getting reactions to visual materials but are very costly. -"mail surveys are usually biased because those most likely to respond have had especially positive or negative experiences with the product or brand." -"telephone interviews allow flexibility, unhappy respondents may hang up on the interviewer, even with the efficiency of computer-assisted telephone interviewing (CATI)." -"online surveys (e-mail and Internet) to collect primary data. The reason: Most consumers have an Internet connection and an e-mail account. Marketers can embed a survey in an e-mail sent to targeted respondents. When they open the e-mail, consumers can either see the survey or click on a link to access it from a website. Marketers can also ask consumers to complete a "pop-up" survey in a separate browser window when they access an organization's website. Many organizations use this method to have consumers assess their products and services or evaluate the design and usability of their websites.222The advantages of online surveys are that the cost is relatively minimal and the turn-around time from data collection to report presentation is much quicker than the traditional methods discussed earlier. However, online surveys have serious drawbacks: Some consumers may view e-mail surveys as "junk" or "spam" and may either choose to not receive them (if they have a "spam blocker") or purposely or inadvertently delete them, unopened. For Internet surveys, some consumers have a "pop-up blocker" that prohibits a browser from opening a separate window that contains the survey; thus, they may not be able to participate in the research. For both e-mail and Internet surveys, consumers can complete the survey multiple times, creating a significant bias in the results. This is especially true for online panels. In response, research firms such as SurveyMonkey have developed sampling technology to prohibit this practice. The foundation of all research using questionnaires is developing precise questions that get clear, unambiguous answers from respondents.23 Figure 8-4 shows a number of formats for questions taken from a Wendy's survey that assessed fast-food restaurant preferences among present and prospective consumers."

growth strategies

-Diversification analysis: technique to help a firm search for growth among current and new markets and products. There are 4 diversification strategies: 1. Market penetration : Increasing sales of current products in current markets. There is no change in either the basic product line or the markets served. Rather, selling more of the product or selling the product at a higher price generates increased sales. (be able to identify in a scenario). Ex: selling more ben and jerry's chocolate chip cookie dough ice cream to U.S. consumers. "There is no change in either the basic product line or the markets served. Increased sales are generated by selling either more ice cream (through better promotion or distribution) or the same amount of ice cream at a higher price to its current customers." 2. Market development: Selling current products to new markets. Example: For Ben & Jerry's, Brazil is an attractive new market. There is good news and bad news for this strategy: As household incomes of Brazilians increase, consumers can buy more ice cream; however, the Ben & Jerry's brand may be unknown to Brazilian consumers." 3. Product development: Selling new products to current markets. Example: Ben and Jerry's could leverage its brand by selling children's clothes in the U.S. 4. Diversification: Developing new products and selling them in new markets. Example: "This is a potentially high-risk strategy for Ben & Jerry's if it decides to try to sell Ben & Jerry's branded clothing in Brazil. Why? Because the firm has neither previous production nor marketing experience from which to draw in marketing clothing to Brazilian consumers."

5 stages of the purchase decision process: 5. post-purchase behavior

-Post-purchase Behavior: Realizing Value Customer Satisfaction Studies -Satisfied CustomersTell 3 People -Dissatisfied CustomersTell 9 People! -Cognitive Dissonance largely influenced by experiences using the product, as marketers we want information about attributes and what people find important when using product, good return policy, etc. "After buying a product, the consumer compares it with his or her expectations and is either satisfied or dissatisfied. If the consumer is dissatisfied, marketers must deter-mine whether the product was deficient or consumer expectations were too high. Product deficiency may require a design change. If expectations are too high, a company's advertising or the salesperson may have oversold the product's features and benefits.Sensitivity to a customer's consumption or use experience is extremely important in a consumer's value perception. For example, research on telephone services provided by Sprint and AT&T indicates that satisfaction or dissatisfaction affects consumer value perceptions.10 Studies show that satisfaction or dissatisfaction affects consumer communications and repeat-purchase behavior. Satisfied buyers tell three other people about their experience. In contrast, about 90 percent of dissatisfied buyers will not buy a product again and will complain to nine people.11 Satisfied buyers also tend to buy from the same seller each time a purchase occasion arises. The financial impact of repeat-purchase behavior is significant, as described in the Marketing Matters box."

5 elements of an environmental scan: 4. competitive

-alternatives forms of competition, small businesses -examples: -Established industries such as banking, insurance, and retailing will be challenged by new competitors such as peer-to-peer lenders, self-insurance groups, and direct-to-consumer food producers -companies will increase their use of data and data analytics to compete with personalized products, promotion, and pricing -competitors are moving away from loyalty programs based only on points toward rewards, cash, and promotions "More brands, such as Live Nation and Hulu, are creating new oerings through collaboration and partnerships.• Retailers are competing with custom holidays and micro-shopping events such as Amazon's Prime Day and Alibaba's Singles' Day.• Companies are using biomimicry, products that mirror innovation found in nature, as means of developing a competitive advantage."

5 elements of an environmental scan: 1. Social

-demographic shifts, cultural chages -Examples: -binge-watching is becoming a common way for consumers to view television programming -video-bloggers (vloggers) are growing in popularity and influence -consumers are placing a growing emphasis on personalized consideration lists (friend recommendations) "Consumers are increasingly interested in new social media (such as musical.ly and Snapchat) which provide faster, more pictorial, and more spontaneous ways to communicate and engage in storytelling.• There is a growing reliance on peers who are brand advocates, or influencers, to help filter the extraordinary amount of information available to everyone today.• There is an increasing expectation that companies should be transparent, authentic, socially responsible, "flawsome" (they admit their mistakes), and highly engaged in the customer relationship."

primary data(questionnaire data): idea generation methods-coming up with ideas

-focus groups: informal sessions of 6 to 10 past, present, or prospective customers in which a discussion leader, or moderator, asks for opinions about the firm's products and those of its competitors, including how they use these products and special needs they have that these products don't address. Often recorded and conducted in special interviewing rooms with a one-way mirror, these groups enable marketing researchers and managers to hear and watch consumer reactions.The informality and peer support in an effective focus group help uncover ideas that are often difficult to obtain with individual interviews. For example, to improve understanding and learning by students using this textbook, focus groups were conducted among both marketing in-structors and students. Both groups recommended providing answers to each chapter's set of Learning Review questions. This suggestion was followed, so you can see the answers by going to the section at the end of the chapter or by tapping your finger on the question in the SmartBook version. -trend tracking

5 stages of the purchase decision process: 2. information search:

-information search: seeking value -internal search (ex: what clothes do I like?) -external search (ex: I need clothes so I search to see what clothes stores are near me) -personal sources: friends -public sources: consumer reports, pinterest? -market-domain sources: ads, pinterest? "After recognizing a problem, a consumer begins to search for information, the next stage in the purchase decision process. First, you may scan your memory for previous experiences with products or brands.3 This action is called internal search. For frequently purchased products such as shampoo and conditioner, this may be enough.In other cases, a consumer may undertake an external search for information.4 This is needed when past experience or knowledge is insufficient, the perceived risk of "making a wrong purchase decision is high, and the cost of gathering information is low. The primary sources of external information are (1) personal sources, such as relatives and friends whom the consumer trusts, as well as social networking websites; (2) public sources, including various product-rating organizations such as Consumer Reports, government agencies, and TV "consumer programs"; and (3) marketer-dominated sources, such as information from sellers including advertising, company websites, salespeople, and point-of-purchase displays in stores.Suppose you are considering buying a new smartphone. You will probably tap several of these information sources: friends and relatives, advertisements, brand and company websites, and stores carrying these phones (for demonstrations). You also might study the comparative evaluation of selected smartphones from independent rating agencies,"

5 elements of an environmental scan: 5. regulatory

-laws protecting competition, laws affecting marketing mix actions, self-regulation -examples: -privacy guidelines must find a balance to accommodate millennial consumers who do not mind their mobile devices being tracked if they receive time and relevant advertising -net neutrality- that all internet traffic should receive equal access and speed- is a growing issue for consumers, companies, content creators, and marketers -the federal trade commission is adding stricter requirements regarding promotions, disclosures, and substantiation studies "The issue of "fake" news will receive increasing attention from Twitter, Facebook, Google, and potential regulators.• Data scientists will face growing scrutiny regarding the collection and use of individual and behavioral data now available from the Internet of Things.• "Gig economy" businesses such as Uber and Airbnb are facing increasing legal challenges regarding business classification, workers' rights, taxes, etc."

5 elements of an environmental scan: 2. economic

-macroeconomic conditions, consumer incomes -Examples: -Companies are increasing their focus on cost control as sales slow in emerging markets and competitive increases in mature countries -China and US are likely to account for a growing part of the world's economic growth -the US personal saving rate has increased to 5.8%, indicating reduced spending although income has been growing at about 2% "The rising cost of higher education, student loan debt, and rising real estate prices are causing a growing number of millennials to live in their parental households.• Changes in global free trade agreements (e.g., Brexit, TPP, etc.) will lead to changes in the availability and costs of imported goods.• India is becoming the fastest-growing large economy in the world with a growth rate forecast of 7.7 percent (China is 6.4 percent)."

three types of consumer involvement and examples

1. Extended Problem Solving (High Involvement, Car $$): "In extended problem solving, each of the five stages of the consumer purchase decision process is used and considerable time and effort are devoted to the search for external information and the identification and evaluation of alternatives. Several brands are in the consideration set, and these are evaluated on many attributes. Extended problem solving exists in high-involvement purchase situations for items such as automobiles and audio systems." 2. Limited Problem Solving (Medium Involvement, lunch): "In limited problem solving, consumers typically seek some information or rely on a friend to help them evaluate alternatives. Several brands might be evaluated using a moderate number of attributes. Limited problem solving is appropriate for purchase situations that do not merit a great deal of time or effort, such as choosing a toaster or a restaurant for lunch." 3. Routine Problem Solving (Low Involvement, eggs) "For products such as table salt and milk, consumers recognize a problem, make a decision, and spend little effort seeking external information and evaluating alternatives. The purchase process for such items is virtually a habit and typifies low-involvement decision making. Routine problem solving is typically the case for low-priced, frequently purchased grocery products." -people do more information search for high involvement categories like appliances

3 trends that influenced growth of global marketing

1. Gradual decline of economic protectionism by individual countries 2. Formal economic integration and free trade among nations 3. Global competition among global companies for global customers

Second and Primary Data and Examples of Each: 1. secondary data

1. Secondary Data: facts and figures already recorded prior to the project -internal data (inside the firm): ->inputs (budgets, financial statements, sales calls reports) ->outcomes (actual sales and customer communications) -external data (outside the firm): ->U.S. Census reports ->trade association studies ->business periodicals ->internet-based reports "Marketing input data relate to the effort expended to make sales. These range from marketing budget reports, which include advertising expenditures, to salespeople's call reports, which describe the number of sales calls per day, who was visited, and what was discussed."

SWOT Analysis Actions

1. build on a strength ex w/ ben and jerry's: "Find specific efficiencies in distribution with parent-company Unilever's existing ice cream brands." 2. correct a weakness Recruit experienced managers from other consumer product firms to help stimulate growth." 3. exploit an opportunity "Develop new product lines of low-fat, low-carb frozen Greek-style yogurt flavors to respond to changes in consumer tastes." 4. avoid a disaster laden threat " Focus on less risky international markets, such as Brazil and Argentina."

2 most common reasons for violations of ethics codes:

1. lack of specificity (employees must judge if a behavior is unethical) 2. perceived behavior of top management (gauging responses to their unethical behavior). "A second rea-son for violating ethics codes rests in the perceived behavior of top management and co-workers.21 Observing peers and top management and gauging responses to un-ethical behavior play an important role in individual actions. A study of business executives reported that 63 percent had witnessed ethically troubling behavior. About 21 percent of those who reported unethical behavior were penalized, through either outright punishment or a diminished status in the company.22 Clearly, ethical dilemmas can bring personal and professional conflict. For this reason, states have enacted laws designed to protect whistle-blowers, employees who report unethical or illegal actions of their employers"

Involvement and Marketing Strategy

1. low involvement: -Common Products (chewing gum) -Maintain Product Quality -Avoid stockouts -Reduce Cognitive Dissonance with Ads "" If a company markets a low-involvement product and its brand is a market leader, attention is placed on (1) maintaining product quality, (2) avoiding stockout situations so that buyers don't substitute a competing brand, and (3) using repetitive advertising messages that reinforce a consumer's knowledge or assure buyers they made the right choice. Market challengers have a different task. They must break buying habits by using free samples, coupons, and rebates to encourage trial of their brand. Advertising messages will focus on getting their brand into a consumer's consideration set. For example, Campbell's V8 vegetable juice advertising message—"Could've Had a V8"—is targeted at consumers who routinely consider only fruit juices and soft drinks for purchase. Marketers can also link their brand at-tributes with high-involvement issues. Post Cereals does this by linking consumption of its whole grain cereals with improved heart health and protection against major diseases." 2. High Involvement (cars, financial services) -Consumers Seek Product Information -Use Comparative Ads -Use Personal Selling "Marketers of high-involvement products know that their consumers constantly seek and process information about objective and subjective brand at-tributes, form evaluative criteria, rate product attributes of various brands, and combine these ratings for an overall brand evaluation—like that described in the smartphone purchase decision. Market leaders ply consumers with product information through advertising and personal selling and use social media to create online experiences for their company or brand. Market challengers capitalize on this behavior through comparative advertising that focuses on existing product attributes and often introduce novel evaluative criteria for judging competing brands. Challengers also benefit from Internet search engines such as Microsoft Bing and Google that assist buyers of high-involvement products."

5 stages of the purchase decision process

1. problem recognition: perceiving need 2. information search: seeking value 3. alternative evaluation: assessing value 4. purchase decision: buying value 5. post-purchase behavior: realizing value

Second and Primary Data and Examples of Each: 2. Primary Data

2. Primary Data: facts and figures newly collected for the project -observational data (facts and figures obtained by watching how people behave. Can be collected by electronic, or personal methods): -> mechanical methods ->personal methods ->neuromarketing methods -Questionnaire data (asking people): ->idea generation methods-coming up with ideas ->idea evaluation methods-testing ideas -other sources of data ->social media ->panels and experiments ->information technology ->data mining "Marketing outcome data relate to the results of the marketing efforts. These involve accounting records on shipments and include sales and repeat sales, often broken down by sales representative, industry, and geographic region. In addition, e-mails, phone calls, and letters from customers can reveal both complaints and what is working well."

What is a marketing program?

A plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers. "a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers. Ideally, they can be formed into market segments, which are relatively homogeneous groups of prospective buyers that (1) have common needs and (2) will respond similarly to a marketing action. This action might be a product feature, a promotion, or a price. As shown in Figure 1-3, in an effective organization this pro-cess is continuous: Consumer needs trigger product concepts that are translated into actual products that stimulate further discovery of consumer needs."

What is a target market? Why is this concept important?

A target market is one or more specific groups of potential customers toward which an organization directs its marketing program. Targets are important because an organization does not have the resources to satisfy the needs of all customers.

What is customer value? (same as customer value proposition) and examples

A unique combination of benefits received by targeted buyers. Usually either price, product, or service. "Designing an effective marketing mix also conveys to potential buyers a clear customer value proposition, which is a cluster of benefits that an organization promises customers to satisfy their needs. For example, Walmart's customer value proposition can be described as "help people save money so they can live better—anytime and anywhere." Michelin's customer value proposition can be summed up as "providing safety-conscious parents greater security in tires at a premium price." -"Customer value is the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time deliv-ery, and both before-sale and after-sale service at a specific price. In addition, firms now actually try to place a dollar value on the purchases of loyal, satisfied customers during their lifetimes. For example, loyal Kleenex customers average 6.7 boxes a year, about $994 over 60 years in today's dollars " -"Best price: Target. Target uses the brand promise of "Expect More, Pay Less®" to "make Target the preferred shopping destination for our guests by delivering outstanding value."" -Best product: Starbucks. Starbucks seeks "to inspire and nurture the human spirit-one person, one cup, and one neighborhood at a time" -Best service: Nordstrom. As a leading fashion speciality retailer, nordstrom seeks to deliver the "best possible shopping experience, helping our customers express their style-not just buy fashion" They're committed to "providing our customers with the best possible service-and to improving it everyday"

What is Greece's gift to the world?

Democracy

difference between ethics and laws

Ethics deal with personal moral principles and values, but laws are society's values and standards that are enforceable in the courts. The distinction between ethics and laws can lead to the rationalization that if a behavior is within reasonable ethical and legal limits, then it is not really illegal or unethical.

5 stages of the purchase decision process: 4. purchase decision

Having examined the alternatives in the consideration set, you are almost ready to make a purchase decision. two choices remain: 1. Decide from Whom to Buy, (Adidas originals store, Amazon): "For a product like a smartphone, the information search process probably involved visiting retail stores, seeing different brands advertised on tele-vision and newspapers, and viewing a smartphone on a seller's website. The choice of which seller to buy from will depend on such considerations as the terms of sale, your past experience buying from the seller, and the return policy. Often a purchase decision involves a simultaneous evaluation of both product attributes and seller characteristics. For example, you might choose the second-most pre-ferred smartphone brand at a store or website with a liberal refund and return pol-icy versus the most preferred brand from a seller with more conservative policies. 2. Decide When to Buy (for my birthday, for a trip): Deciding when to buy is determined by a number of factors. For instance, you might buy sooner if one of your preferred brands is on sale or its manufacturer offers a rebate. Other factors such as the store atmosphere, pleasantness or ease of the shopping experience, salesperson assistance, time pressure, and financial circumstances could also affect whether a purchase decision is made now or postponed.

What is a market?

Potential customers with the desire and the ability to buy a specific offering. They are people. Potential consumers make up a market.

What is CRM (customer relationship management)?

Process of identifying prospective buyers, understanding them intimately, and developing favorable, long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace. Involves the growing application of information, communication, and internet technologies. -the foundation of this is customer experience

SWOT Analysis

Situation analysis: SWOT analysis, an acronym that describes an organization's appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats. SWOT Involves taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization's marketing plans and the external forces and trends affecting it. To do this, an organization uses a SWOT analysis. "Note that the SWOT table has four cells formed by the combination of internal versus external factors (the rows) and favorable versus unfavorable factors (the columns) that identify Ben & Jerry's strengths, weak-nesses, opportunities, and threats. The task is to translate the results of the SWOT analysis into specific marketing actions that will help the firm grow. The ultimate goal is to identify the critical strategy- related factors that impact the firm and then build on vital strengths, correct glaring weaknesses, exploit significant opportunities, and avoid disaster-laden threats."

-marketing definition -what this definition stresses -who should benefit

The activity for creating, communicating, delivering, and exchanging offerings that benefit customers, the organization, stakeholders, and society at large. book: "The American Marketing Association represents individuals and organizations in-volved in the development and practice of marketing worldwide. It defines marketing as the activity, set of institutions, and processes for creating, communicating, deliver-ing, and exchanging offerings that have value for customers, clients, partners, and so-ciety at large. This definition shows that marketing is far more than simply advertising or personal selling. It stresses the need to deliver genuine value in the offerings of goods, services, and ideas marketed to customers. Also, notice that an organization's marketing activities should also create value for its partners and for society." Providing genuine benefits to customers through offerings (goods, services, ideas) The customers, organization, its stakeholders, and society

5 stages of the purchase decision process: 3. Alternative Evaluation

The alternative evaluation stage clarifies the information gathered by: -1. suggests criteria for purchase 2. yields brands that meet criteria 3. develops value perception (style code) -evaluation criteria (style): "For some of you, the information provided may be inadequate because it does not contain all the factors you might consider when evaluating smartphones. These factors are a consumer's evaluative criteria, which represent both the objective attributes of a brand (such as display) and the subjective ones (such as prestige) you use to compare different products and brands.6 Firms try to identify and capitalize on both types of criteria to create the best value for the money paid by you and other consumers. These criteria are often displayed in advertisements." -consideration set (editions of adidas tracksuit): "Consumers often have several criteria for evaluating brands. Knowing this, compa-nies seek to identify the most important evaluative criteria that consumers use when comparing brands. For example, among the seven criteria shown in Figure 5-2, sup-pose you initially use three in considering smartphones: (1) a retail price under $700, (2) superior text messaging, and (3) superior web capability. These criteria establish brands in your consideration set—the group of brands a consumer considers ac-ceptable from among all the brands in the product class of which he or she is aware.7Your evaluative criteria result in two brands/models: the HTC U11 and LG G6 in your consideration set. If the brand alternatives are equally attractive based on your original criteria, you might expand your list of desirable features. For example, you might decide that camera and audio quality are also important and compare the alter-natives based on those criteria as well."

Ethics

moral principles and values that govern the actions and decision of an individual or group. They serve as guidelines on how to act rightly and justly when faced with moral dilemmas.

What is customer experience?

The internal response that customers have to all aspects of an organization and its offering. This is direct and indirect contact. Think: Trader Joe's "Direct contacts include the customer's contacts with the seller through buying, using, and obtaining service. Indirect contacts most often involve unplanned "touches" with the company through word-of-mouth comments from other customers, reviewers, and news reports. In terms of outstanding customer experience, Trader Joe's is high on the list. It is ranked as one of America's favorite supermarket chains by Market Force Information and called "America's hottest retailer" But Trader Joe's is no ordinary grocery chain. It's an offbeat, fun discovery zone that ele-vates food shopping from a chore to a cultural experience. It stocks its shelves with a win-ning combination of low-cost, yuppie-friendly staples (cage-free eggs and organic blue agave sweetener) and exotic, affordable luxuries—Belgian butter waffle cookies or Thai lime-and-chili cashews—that you simply can't find anyplace else." "What makes the customer experience and loyalty of shoppers at Trader Joe's unique? The reasons include: ∙ Setting low prices, made possible by offering its own brands rather than well-known national ones. ∙ Offering unusual, affordable products, like Thai lime-and-chili cashews, not available from other retailers. ∙ Providing employee "engagement" to help customers, like actually walking them to where the roasted chestnuts are—rather than saying "aisle five."" This commitment to providing an exceptional customer experience is what gives Trader Joe's its high rankings. Recent studies support this approach, suggesting that companies must watch for differences between the experience they offer and what consumers expect at each interaction, and they must excel at managing the complete experience from start to finish.

Global Brand

a brand marketed under the same name in multiple countries with a similar and centrally coordinated marketing program. Global brands have the same product formulation or service concept, deliver the same benefit to consumers, and use consistent advertising across countries and cultures. Adaptation used only when necessary to better connect the brand to consumers. -ex: McDonald's is very different in different countries "Consider McDonald's.9 This global marketer has adapted its proven formula of "food, fun, and families" across 119 countries on six continents. Although the Golden Arches and Ronald McDonald appear worldwide, McDonald's tailors other aspects of its marketing program. It serves beer in Germany, wine in France, and coconut, mango, and tropical mint shakes in Hong Kong. Hamburgers are made with different meat and spices in Japan, Thailand, India, and the Philippines. But McDonald's world-famous french fry is standardized. Its french fry in Beijing, China, tastes like the one in Paris, France, which tastes like the one in your hometown."

Code of ethics

a formal statement of ethical principles and rules of conduct. "Ethics codes typically address contributions to government officials and politi-cal parties, customer and supplier relations, conflicts of interest, and accurate recordkeeping." "Lack of specificity is a major reason for the violation of ethics codes."

Primary data: other sources: a panel

a panel is a sample of consumers or stores from which researchers take a series of measurements. For ex-ample, the NPD Group collects data about consumer purchases such as apparel, food, and electronics from its online Consumer Panel, which consists of nearly 2 million individuals worldwide. So a firm like General Mills can count the frequency of consumer purchases to measure switching behavior from one brand of its breakfast cereal (Wheaties) to another (Cheerios) or to a competitor's brand (Kellogg's Special K). A disadvantage of panels is that the marketing research firm needs to recruit new members continually to replace those who drop out. These new recruits must match the characteristics of those they replace to keep the panel representative of the marketplace.

Ethnographic Research (personal method of primary data)

a specialized observational approach in which trained observers seek to discover subtle behavioral and emotional reactions as consumer encounter products in their "natural use environment," such as in their home or car. "For example, Kraft launched Deli Creations—sandwiches made with its Oscar Mayer meats, Kraft cheeses, and Grey Poupon mustard—after spending several months with consumers in their kitchens. Kraft discovered that consumers wanted complete, ready-to-serve meals that are easy to prepare—and it had the products to create them.1"