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