Mizzou Marketing 4000 Exam 1

should the price of the brand be reduced?

to determine the price elasticity of demand and the impact on sales and profits of various levels of price changes (milk example--should put price up b/c people who drink it will still drink it)

ways marketing research can fail

very expensive, his research for star wars should be a failure--> wrong bc the movie did great

market penetration

vinegar as a dressing now is used as a cleaner (present customers, present products)

most important step of need recognition

what unsatisfied needs and wants consumers have for which a new product could be developed

age and lifecycle

younger- lower price older- healthier options (have more $, are parents, etc) older- newer cars (safety, and $)

critical issues of plan of the research

-primary or secondary data are needed -qualitative THEN quantitative data are needed, focus on group discussions and depth interviews -company will do it themselves or hire a research specialist

brand personality and buyer personality

-sincereity -excitement -competence -sophistication -ruggedness * sucessful brands are strong on one dimension (car brands have different personalities)

LOHAS (lifestyles of health and sustainability)

-sustainable economy -healthy lifestyles -ecological lifestyles -alternative health care -personal development

Marketing planning

1) establishing marketing objectives 2) selecting the target market 3) developing the marketing mix

personal factors (not in book)

1. age 2. lifecycle stage 3. personality 4. lifestyles

Industry Environment

1. cooperative environment 2. competitive environment 3. economic environment 4.social environment 5. political environment 6. legal environment

organizational strategies based on competitive advantage (*think--> relates to $)

1. cost leadership strategy 2. strategy based on differentiation

types of decision making

1. extensive decision making 2. limited decision making 3. routine decision making

2 ways product involvement influences consumer decision making

1. if purchase is for a high involvement product, consumers are likely to develop a high degree of product knowledge 2. a high degree of product involvement encourages extensive decision making by consumers, which in turn can increase the time devoted to a decision

consumer decision making process

1. need recognition 2. information search 3. alternative evaluation 4. purchase decision 5. post purchase behavior

the organizations strategic plan

1. organizational mission 2.organizational objectives 3.organizational strategies 4. organizational portfolio plan

Marketing influences on consumer decision making

1. product influences 2. price influences 3. promotion influences 4. place influences

The marketing plan

1. situation analysis 2. marketing objectives 3. target and market selections 4. marketing mix

the buying process

1. social influences 2. marketing influences 3. situational influences 4. psychological influences

Strategies based on value

1.best price 2. best product 3. best service

alternative evaluation

1.consumer has info about a number of brands in a product class 2.consumer perceives that some of the brands in a product class are viable alternatives for satisfying a recognized need- "consideration set" 3. each of these brands in the consideration set has a set of attributes 4. a set of these attributes is relevant to the consumer- the consumer perceives that different brands vary in how much of each attribute they possess 5. consumers prefer brands that have desired attributes in desired amounts and desired order 6. the brand the consumer likes best is the brand the consumer will intend to purchase

organizational mission

1.focused on markets 2. achievable and realistic 3.motivating 4. specific

situational influences on consumer decision making

1.physical features 2. social features 3. time 4. task features 5. current conditions

Psychological influences on consumer decision making

1.product knowledge 2. product involvement

Organizational portfolio plan

2 steps 1. identify the various divisions, product lines, and so on that can be considered a business (strategic business units) 2. establish methods to determine how resources should be allocated among the various SBU's (portfolio models)

strategy based on differentiation

A firm seeks to be unique in its industry or market segment along particular dimensions that the customers value (rolex, mini cooper)

Consumer

A person who purchases goods and services for personal use (USER)

product knowledge

Amount of information a consumer has stored in his or her memory about particular products and ways to purchase them (I have high knowledge of alc prices bc of dad, patel mechanical engineer has high knowledge on cars) (subjective-opinions interior of car, objective- standard facts on size of engine)

product influences

Brand name, quality, newness, complexity, physical appearance of the product, packaging, and labeling information (which product they want to buy-most important is brand--> routine stays the same brand)

routine decision making

Involves little in the way of thinking and deliberation (habitual purchases like candy at the checkout)

product development

Michelob for weekend and weekdays, low carb (present customers, new products)

current conditions

Momentary moods (such as acute anxiety, pleasantness, hostility, and excitation) or momentary conditions (such as cash on hand, fatigue, and illness) rather than chronic individual traits

social features

Other persons present, their characteristics, their apparent roles and interpersonal interactions (buy more expensive things when around people to impress)

Marketing Mix

Product, Price, Place, Promotion

Need recognition

The first stage of the buyer decision process, in which the consumer recognizes a problem or need. either internal or external stimuli (internal-having kids-->need a bigger car, external- ads make you hungry so you buy food)

price influences

Value-conscious consumers buy products more on the basis of price than on other attributes (even stronger influence than brand!! some cases price is a hard decision=quality is lower price...Europe trip example)

disconfirmation paradigm

Views consumer satisfaction as the degree to which the actual performance of a product is consistent with expectations a consumer had before purchase high expectations before= more post purchase upset if the product doesn't meet the expectations

cost leadership strategy

a firm could focus on being the low cost company in it's industry, if it has the ability to do so (Walmart, southwest airlines)

marketing research

a process by which info about the firm's environment is generated, analyzed, and interpreted

promotion influences

advertising, sales promotions, salespeople, and publicity (lower prices just drives customers to buy more; customers wait for this)

cooperative environment

all firms and individuals who have a vested interest in the firm's accomplishing its objectives (Professor wants MU to do well, so that he doesn't lose his job--> he has a vested interest)

Situational influences

all of the factors particular to a time and place that have a demonstrable and systematic effect on current behavior

strategic planning

all the activities that lead to the development of a clear organizational mission and organizational objectives appropriate strategies to achieve the objectives for the entire organization

the marketing concept

an organization should seek to make a profit by serving the needs of customer groups. the purpose is to rivet the attention of marketing managers on customer orientation

cognitive dissonance

an unpleasant state that arises when a person recognizes the inconsistency of his or her actions, attitudes, or beliefs woman in love with her mercedes that has TONS of problems

lower american

as diverse in values and consumption goals as are other social levels. unemployed/unlucky, no income, no aspirations

social class

basis of things such as wealth, skill, power 1. upper americans 2.middle class 3.working class 4.lower american

organizational objectives

can be converted into specific actions, will provide direction and principles, can establish long run priorities for the organization, can facilitate management control as they serve as standards against which overall organizational performance can be evaluated

organizational strategies

choice of directions that the firm will take in pursuing its objectives. based on: 1. products and markets 2. competitive advantage 3. value they can provide to their customers

primary data

collected specifically for the research problem under investigation (expensive)

product involvement

consumer's perception of the importance or personal relevance of an item

purpose of the research

determines explicitly why the research is needed and what it is to accomplish managers and researchers need to agree on 1.current situation involving the problem to be researched 2. nature of the problem 3. specific questions the research is designed to investigate

task feature

different buyer and user roles (shopping for yourself vs shopping for others)

Marketing influences

exposure to actions undertaken by marketers (Billboards in MO)

reference groups

groups that an individual looks to when forming attitudes and opinions

upper americans

high incomes, more opportunities, privilege

post purchase evaluation

if a particular product fulfills the need for which it was purchased, the probability is high that the product will be repurchased post decision dissonance is the lack of harmony in thoughts after the decision more choices you have--> more regret after purchase $ and # of purchases = more regret

legal environment

includes a host of federal, state, and local legislation directed at protecting both business competition and consumer rights (insurance business--> legal issues)

social environment

includes general cultural and social traditions, norms, and attitudes- opens up new opportunities (smaller families are more desireable in society--> which leads to more daycare business)

competitive environment

includes primarily other firms in the industry that rival the organization for both resources and sales (Dell wants MU to do well, so that MU keeps buying from Dell--> not a competitor)

political environment

includes the attitudes and reactions of the general public, social and business critics, and other organizations

2 parts of marketing

independent variable and dependent variable

cannobolizing

intro to new products that causes you to lost money on existing products (caused by product development) --> Honda fit vs. civic

situation analysis

involves analysis of the past, present, and likely future in 6 major areas of concern in the context of a firms industry environment

qualitative research

involves face to face interviews with respondents designed to develop a better understanding of what they think and feel concerning a research topic 1. focus groups-table of people (salad video) 2 depth interviews- very detailed questioning

Quantitative Research

involves systematic procedure designed to obtain and analyze numerical data 1. observational research- watching people and recording facts 2. survey research

hypothesis

is a unproven statement or proposition about a factor or phenomenon that is of interest to the researcher

who controls the marketing mix?

managers

who influences the behavioral response--but has no control of it

managers

time

may be specified in units ranging from time of day to season of the year; may be relative to some past or future event for the participant (dunkin donuts=coffee in the AM ice cream at night)

diversification

new customers for present products (placing products where you normally wouldn't see them)

market development

new customers, present products

culture

one of the most basic influences on an individual's needs, wants, and behavior. transmitted through family, religion, educational institutions

dependent variable

outputs, phenomena one seeks to explain behavioral responses of consumers to the independent variables performance measures

working class

people who are family folk who depend heavily on relatives for economic and emotional support (can't live beyond their means, can't try to be like the middle class, they help eachother out)

Maslow's Hierarchy of Needs

physiological, safety, love/belonging, esteem, self-actualization

secondary data

previously collected data that are used for the problem at hand (inexpensive, less effort)

place influences

products-convient to buy products-sold at exclusive outlets products-offered by non store methods such as internet or catelogs (potato chips are everywhere, diamonds are at specific jewelry stores)

purchase decision

purchase involves many decision :product type, brand, model, dealer selection, method of payment -focus on brands that have been reliable -uncertainty-->buy few at first the rest later

5 P's of research process

purpose of the research plan of the research performance of the research processing research data prepare research data

implementation of the marketing plan

putting the plan to action and performing marketing tasks according to a predefined schedule

components marketing research problem

refined statements of the specific components of the problem

limited decision making

requires a moderate amount of time and effort to search for and compare alternatives (fridge/ dishwasher)

extensive decision making

requires the most time and effort since the purchase typically involves a highly complex or expensive product that is important to the consumer (buying a house)

plan of the research

research plan spells out the nature of the research to be conducted- explanation of sample design, measures, and analysis techniques to be used

independent variable

situational factors, marketing mix

social influences

society in general, our ethnic background, important people in our lives. (changes all the time, values and standards)

customer

someone who buys goods or services (doesn't always use it)

SBU

strategic business unit

Marketing (AMA)

the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

physical features

the most apparent situational factor: location, decor, sounds, aromas, lighting, weather, visible configurations (clothes not as attractive as they were in the store-->lighting)

The marketing management process

the process of planning and executing the conception, pricing, promotion, and distribution of goods, services, and ideas to create exchanges with target groups that satisfy customer and organizational objectives

Information search

the stage of the buyer decision process in which the consumer is motivated to search for more information 1. internal sources 2. group sources 3. marketing sources 4. public sources 5.experiential sources

economic environment

the state of the macroeconomy and changes in it also bring about marketing opportunities and constraints (technology field is suffering--> the rest of us are doing well)

middle class

these consumers want to do the right thing and buy what is popular (tries to be like the upper class)