Marketing Unit 2

Chinese amazon company

Alibaba

when we recognize we have problems we solve them in a specific order first we solve physiological needs thirst food we will die without fokd next safety needs shelter Social needs having friends being liked Self esteem needs feeling good about oneself Self actualization reach absolute potential of yourself

Maslow's Hietsrchy

shows the different groups and shows where those people live reach certain groups by putting those products where they live. advertise it based on cultural behavior of region

GeoVals

buy it for pleasure - a car, or nice bag

Hedonic

furniture not fun to buy it but it's needed

High involvement utilitarian

Usage Rate heavy users medium users might users non users Spray tan ppl segmenting certain products to those they know are heavy users of the company

Use Related Segmentation

The value and lifestyles survey questions asks about demographics purchasing behavior then groups ppl into different groups with certain characteristics helps companies understand customers and purchasing behavior

VALS

price anchors are powerful mental shortcuts that restrict how much companies can charge for similar products candy bars beside brand are all priced the same this is because there is an anchoring effect how mych would u pay for La Croix? depends on how much you have anchored that product are you anchoring it towards being perceived as water or being anchored as a soda? La croix wants you to see it as a soda and therefore it's easier for them to charge it a higher price

anchoring

dividing consumers into groups according to their usage, loyalties, or buying responses to a product OBSERVABLE BEHAVIOR BY THE COMPANY Delta loyalties if you spend a certain amount

behavioristic segmentation

analyzing clusters of different people statistical program thag allows you to take data and then it finds common clusters within groups groups of individual types of customers size of cluster determines how many ppl within that type helps a company figure out what type of customers they should target with their product based on their core competencies

cluster analysis

analyzing sales for 3-5 years to assess consistent fluctuations

cycle analysis

Low involvement products less expensive have less risk to buy extra gum socks toothpaste branding is very important here

low involvement product

foundation of of marketing

market research is the

market segmentation process if dividing up a market into smaller groups called segments

market segmentation

GEN Y

millennials is

Test Market making a product available to buyers only in a specific market tests it and how well it does in that market measures purchases and consumer responses less expensive to launch it in a small market rather than nationwide effective of estimating sales of new products not a prediction if they will buy it- it's if they bought it or not but downside it is expensive

test market- think Jacksonville

products can be positioned based on customer preferences think of BMW map had hi price and low price and luxury and sporty different products or car models achieve certain characteristics- luxury or sporty. 3 series- aimed for collehe kids- sporty and low price. this is how their product assortment is perceived in the market... maps out dimensions of how certain products are perceived by customers

perpetual mapping

trend analysis- uses sales data from many years to determine general trends.

trend analysis

1. exploratory or qualitative - focus groups observation. kind of the starting place. find out what your problems are 2. Descriptive survey data. go from what problems are and conduct surveys 3. causal data experiments.... what is cause and effect. after surveys experiments can be conducted

types of primary data???

routinized or habitual decision making when choices are made with little to no conscious effort when consumers don't rlly have time to think about options just grab and go that's why branding is importing brands will drive purchase behavior example: Soda. Tend to attract themselves to popular brand

routinized or habitual decision making

an analysis of daily, weekly, or monthly sales figures to evaluate the degree to which LOOKS AT HOW seasonal factors influence sales.....

seasonal analysis

secondary data - info that has been collected for a purpose other than research at hand collected by someone else ACSI - a website that houses customer satisfaction index. what's the problem with secondary data?? you didn't gather the data. you have to trust it's accurate sometimes it's not fully correct. Primary Data data you gather to solve a specific research problem or question at hand if you conduct a customer satisfaction survey that is primary data!

secondary data versus primary data

describe characteristics of a population gender race age ethnicity education religion Diet coke- targeted for women chick-fil-a came out with filet o fish for catholics during lent

segmentation bases: demographic?

bring in a small group of real customers and have them talk about what they thought about the food can say whatever they want the moderator does not participate

what are focus groups

retailers use maps to see where customers are most present within a store heavy traffic at front door or side? put best or most expensive or high margin products in places where people gravitate the most! by knowing where customers are in a space, stores can optimize display deploy staff and set shelf fees based on data

what are heat maps?

type of segmentation one product is focused to meet the needs of one very focused segment a niche market example is Mullet market a market that is aimed at customers with specific interests.

what are niche markets

buying it for purpose we need it. mouthwash, toothpaste

what does utilitarian mean

marketing different products is more expansive than producing just one but is justified if it: serves customers needs better proctor and gamble- tide and gain. Serves different needs.

what is "multiple products and multiple segments" targeting

MDS A technique that allows us to create perceptual maps that tel us what brands/products are closest to certain people think BMW map

what is MDS

type of research. NPS- Net promoter Score a survey asking how likely is it that you would recommend this company to a friend or colleague?? 1-10 scoring for NPS score

what is NPS

high involvement products only purchased after careful consideration expensive risky more visible to society Cars Sky diving do research before you buy it not impulse buy !

what is a high involvement product

designed to solve a specific problem for a specific company looks at research for one specific problem within a segment

what is applied research

just extending knowledge in general you're not looking at research for one company you're looking for all companies and what everyone can improve on when you make everyone fill out survey to: we're you satisfied with customer service? helps everyone

what is basic research

type of research that shows how things correlate but does not mean they are related

what is causal research

cluster analysis statistical analysis technique that will identify customer segments from there we know what the segments are and what to target certain products or certain brands to certain segments or people

what is cluster analysis again

a feeling of doubt after making a very big decision doubt after coming to FSU associated with high involvement decisions buy a car many regret after because it's so much money

what is cognitave dissonance

research shows that higher wait times can signal higher quality long lines of bars and testaraunts bars make people form line before they even let them in unknown waits worse than known waits people like the idea of knowing how long they will wait over estimate the time of waits because it will seem shorter explained waits seem shorter too. customers choose slow short lines over fast long lines even if wait is the same research shows that most people by nature will pick the shorter looking line

what is concept of waiting time

Conjoint analysis helps companies price products a statistical technique that gives price sensitivity information. create different variations of products and surveys ppl how much they are willing to pay for each certain people are willing to pay

what is conjoint analysis

Ariely is a behavioral economist that has done great research on this try to understand why customers buy what they buy irrationality - consumers are irrational

what is customer irrationality

THINK ORIENTATION IS AT BEGINNING OF COLLEGE STUDENT EXPERIENCE. WE ARE PREDICTING CUSTOMER BEHAVIOR BASED ON PAST CUTOMER PURCHASES AND HISTORY. AMAZON.....predict customer behavior by profiling entire customer journey (what the customer is doing before using us, while using us, and after) personalize and customize product experiences example- Amazon. uses big web data on their site and tells them what customer isdoing on amazon.

what is customer orientation

a phase used to help companies describe the characteristics of the population. Done through surveys. ask survey what's most important to people when they buy cars gas mileage safety they have to do this descriptive phase to help make products

what is descriptive phase of research

people value objects they own more than the same object if they don't own it i.e. garage sale the fact people own the product makes them have more engagement and emotional attachment to it price what they have had higher

what is endowment effect

evoked set products already in memory. The retrieval set: plus those prominent in the retail setting ones that pop out on shelves can be considered part of evoked set

what is evoked set

extended problem solving when you choose a university or college that is an extended problem solving case consumer tries to gain as much info as possible both from internal (memory) and external sources - advertising decision is made by considering how each brand rates on each attribute

what is extended problem solving

you've recognized your problem now you search for info to solve your problem search your own memory (internal) who have i hired before to fix my leak prior purchases or external search - obtain product info from ads, friends, or observation comes from other people rate my professor ! yelp

what is information search (internal and external search)

requires a moderate anount of time for information gathering picking a restaraunt or clothes you want to buy consumer behavior- ppl tend to pick shortcuts go on sites that tell best of Tallahassee BOT ppl are familiar with the product class but not the brand

what is limited problem solving

process of designing, gathering, analyzing and reporting info so that it may be used to understand customers and solve a marketing problem key component is understand customers how firms understand customers wants and needs solving this with new products customer satisfaction survey

what is market research

DESIGNING NEW PRODUCTS BASED ON HANDS ON RESEARCH AND THE RESULTS THEY GATHERED. HONDA FEEDBACK, KETCHUP PACKET DESIGN FROM MOM'S OPINION mini vans and ketchup packets were designed based on research with moms. mini vans- listened to moms and made chairs a certain way, got vacuum in car, etc Ketchup- developed these with mini vans setting in mind! had moms and dads test out different ketchup holder designs in a mini van did this with research saw what worked best with a new product!! Starbucks used feedback from the "My starbucks idea" platform to create drinks with nondairy options

what is new product design?

WHEN COMPANIES COME OUT WITH PRODUCTS THAT WERE DEVELOPED BY THEIR OWN CUSTOMERS. COKE FREESTYLE MACHINE, KELLOGGS BUILD YOUR OWN CEREAL BOWL New product development coke freestyle machine gives customers freedom to mix and match and create their own flavors coca cola uses the freestyle machine as a way to gather market research data about which new flavors that customers create would they be able to sell so many ppl would create their own cherry and soda mix this pushed Coke to launch cherry sprite. these machines help companies develop possible products knowing what consumers want.

what is new product development

finding the problem. Figuring out if it is a symptom or a problem

what is problem definition

product positioning position the product in minds of consumers customers need to recognize that this product is for me do this maintaining a Product image in the minds of consumers higher low price, quality, luxury

what is product positioning

big part of how we make decisions is to just make it simple brands offer mental shortcut - Heuristic what do you use to help you make a decision about which product you will pick? this is heuristics or mental shortcuts which wine will you pick for boss? A good wine with good price. another heuristic is country of origin effect people in germany all have BMWs. buy cars that originated in Germany

what is product selection and heuristics

a company that provides software that companies can use to conduct research for their products.

what is qualtrics

Sales forecast- the amount of a product a company expects to sell during specific period. prediction of how much the company predicts to sell within each market segment if the cost offsets how much it takes to make it, advertise it; then they put it out in the market!!!

what is sales forecast

Process: Segmentation targeting positioning Re positioning. we have customers that are very different and a lot of them we divide them up into segments that are similar we then target groups or segments of consumers that have highest probability of purchasing that specific product if we don't we waste money we then position the product in the minds of consumers to suit their wants and needs the customer needs to think that it's made for them we then reposition the product if it does not match their needs

what is segmentation process

nike- personalized shoes. each customer has very unique wants and needs mass customization targeting towards one person's customizable needs ONE PERSon

what is segments of one

firms can develop new products or revise old ones that fit their core competencies then target lucrative groups of consumers

what is targeting

satisfaction- did we make a right decision are we happy dis satisfaction- an emotional reaction to decision making if it didn't work out - unhappiness

what is the post purchase phase

process problem definition design research sampling gathering data analyze data prepare reports to use it!!

what is the process of market research

entire market is target market market is homogeneous everyone has similar needs ex. GAS

what is undifferentiated targeting

total quality management movement. when market research was founded. conducted: research to find customer reaction to product research done to compare product to competitors research to find problems with the product

what was the TQM movement

They segment to different markets. Make products for all different people and stay successful all through the years.

why are companies like Proctor and gamble and nestle so successful

it helps us secure loyal customers. loyal customers are 5x more likely to repurchase, 5x likely to forgive; 7x likely to try new things, 4x as likely to refer it's more costly to attain new customers than to hold on to old ones

why is marketing research so important?

Geographic type of segmentation based on region, city size, urban/rural, region Mcdonald's Lobster roll sell it only in New england and boston mcdonald's offers mc rib sandwich only in South european McDonalds

geographic segmentation

segmenting to different markets all over the world Disney tokyo LA Orlando England etc

geographic segmentation

car

high involvement hedonic

online respondents answer with questionnaire on website or email Mail rare Telephone political surveys ACSI is done over phone Personal interview surveys participants respond to survey questions face to face intercept people at mall

how can surveys be conducted

occurs when a buyer becomes aware of a difference between a desired state and an actual condition. what is driving people to buy a product. once they realize they're hungry they will buy food. recognizing I have a leak and need it repaired.

Problem recognition

based on past stats but predicts it based on relationships between past sales and one or more independent variables also requires the use of historical sales data

Regression analysis

around halloween exposure to orange and black colors are so popular these colors have a situational influence effect the colors are all around during this time and it drives their buying behavior to buy stuff with those colors reese's cups around Halloween visual array of circles and triangles show shapes and then it makes buyers want to buy certain candies

Situational influence

Psychographics Personality ..motives lifestyle viewpoints redbull and mountain dew- aimed at X mode hard core people

Psychographics segmentation

changing the perception of a product to fit another segment or market New balance shoes used to be seen for dad shoe repositioned the product to appeal to a younger market segment Sketchers not just running shoes anymore. Casual wear now! Converse just for basketball before but now they are a fashion statement and everyone wears them. Repositioned perception of the original Converse

Re positioning