MKTG 409 Exam 1
Guidelines for Questionnaire Introduction
-Allow interviewers to introduce themselves by name -State the name of the research company -Indicate that this questionnaire is a marketing research project -Explain that no sales will be involved -Note the general topic of discussion (in a "blind" study, "consumer opinion" is acceptable) -State the likely duration of the interview -Assure the anonymity of the respondent and the confidentiality of all answers -State the honorarium, if applicable -Reassure the respondent with a statement such as, "There are no right or wrong answers, so please give thoughtful and honest answers to each question"
What are the major steps or components of the marketing research process?
1. Define problem 2. Develop research questions or hypotheses 3. Collect data 4. Interpret findings 5. Report findings
Target Market Selection Process
1. Identify the appropriate targeting strategy 2. Determine which segmentation variables to use 3. Develop market segment profiles 4. Evaluate relevant market segments 5. Select specific target markets
CRM incorporates these three elements
1. Identifying and building a database of current and potential customers, including a wide range of demographic, lifestyle, and purchase information 2. Delivering differential messages according to each consumer's preferences and characteristics through established and new media channels 3. Tracking customer relationships to monitor the costs of retaining individual customers and the lifetime value of their purchases
Forces of marketing environment affect a marketer's ability to facilitate value-driven marketing exchanges in three ways
1. Influence customers by affecting lifestyles, standards of living, preferences and needs for products 2. Marketing environment forces can determine whether and how a marketing manager can perform certain marketing activities 3. Environmental forces may shape a marketing manager's decisions and actions by influencing buyers' reactions to the firm's marketing mix
The Marketing Research Process
1. Locating and defining issues or problems 2. Designing the research project 3. Collecting data 4. Interpreting research findings 5. Reporting research findings
Business (Organizational) Buying Decision Process
1. Recognize problem 2. Develop product specifications to solve problem 3. Search for and evaluate possible products and suppliers 4. Select product and supplier and order product 5. Evaluate product and supplier performance
six values required by organizations striving to become more market oriented
1. Trust 2. Openness 3. Honoring Promises 4. Respect 5. Collaboration 6. Listening
Four Conditions for an Exchange:
1. Two or more individuals, groups, or organizations must participate, and each must possess something of value the other party desires 2. Exchange should provide a benefit or satisfaction to both parties involved 3. Each party must have confidence in the promise of the "something of value" held by the other 4. Parties to the exchange must meet expectations to build trust
Components of a Sampling Plan
1. Who is being surveyed? 2. How many people are to be surveyed? 3. How will they be selected?
Demand for business products can be characterized as:
1. derived 2. inelastic 3. joint 4. fluctuating
Cognitive Dissonance
A buyer's doubts shortly after a purchase about whether the decision was the right one
Database
A collection of information arranged for easy access and retrieval
Market Opportunity
A combination of circumstances and timing that permits an organization to take action to reach a particular target market
What could happen if marketing is not included in an organization's top-level management?
A company could fail to address actual and evolving customer needs and desires
Oligopoly
A competitive structure in which a few sellers control the supply of a large proportion of a product
Monopolistic Competition
A competitive structure in which a firm has many potential competitors and tries to develop a marketing strategy to differentiate its product
Monopoly
A competitive structure in which an organization offers a product that has no close substitutes, making that organization the sole source of supply
Validity
A condition that exists when a research method measures wheat it is supposed to measure
Reliability
A condition that exists when a research technique produces almost identical results in repeated trials
Extended Decision Making
A consumer decision-making process employed when purchasing unfamiliar, expensive, or infrequently bought products
Routinized Response Behavior
A consumer decision-making process used when buying frequently purchased, low-cost items that require very little search-and-decision effort
Limited Decision Making
A consumer decision-making process used when purchasing products occasionally or needing information about an unfamiliar brand in a familiar product category
Value
A customer's subjective assessment of benefits relative to costs in determining the worth of a product
Strategic Business Unit (SBU)
A division, product line, or other profit center within the parent company
Consumer Buying Decision Process
A five-stage purchase decision process that includes problem recognition, information search, evaluation of alternatives, purchase, and post-purchase evaluation
Time Series Analysis
A forecasting method that uses historical sales data to discover patterns in the firm's sales over time and generally involves trend, cycle, seasonal, and random factor analyses
Random Sampling
A form of probability sampling in which all units in a population have an equal chance of appearing in the sample, and the various events that can occur have an equal or known chance of taking place
Vendor Analysis
A formal, systematic evaluation of current and potential vendors
Marketing Information System (MIS)
A framework for managing and structuring information gathered regularly from sources inside and outside the organization
Product
A good, a service, or an idea
Consideration Set
A group of brands within a product category that a buyer views as alternatives for possible purchase
Market
A group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products; an aggregate of people who, as individuals or as organizations, have needs for products in a product class and who have the ability, willingness, and authority to purchase such products
Subculture
A group of individuals whose characteristics, values, and behavioral patterns are similar within the group and different from those of people in the surrounding culture
Reference Group
A group that a person identifies with so strongly that he or she adopts the values, attitudes, and behavior of group members
Market Growth/Market Share Matrix
A helpful business tool, based on the philosophy that a product's market growth rate and its market share are important considerations in determining its marketing strategy
Customer Lifetime Value (CLV)
A key measurement that forecasts a customer's lifetime economic contribution based on continued relationship marketing efforts
Sample
A limited number of units chosen to represent the characteristics of a total population
Mission Statement
A long-term view, or vision, of what the organization wants to become
Marketing Concept
A managerial philosophy that an organization should try to satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals
Homogeneous Market
A market in which a large proportion of customers have similar needs for a product
Heterogeneous Market
A market made up of individuals or organizations with diverse needs for products in a specific product class
Concentrated Targeting Strategy
A market segmentation strategy in which an organization targets a single market segment using one marketing mix
Pure Competition
A market structure characterized by an extremely large number of sellers, none strong enough to significantly influence price or supply
Distribution Variable of the marketing mix
A marketing manager makes products available in the quantities desired to as many target-market customers as possible, keeping total inventory, transportation, and storage costs as efficient as possible; select and motivate intermediaries (wholesalers and retailers); establish and maintain inventory control procedures, develop and manage transportation and storage systems
Attitude Scale
A means of measuring consumer attitudes by gauging the intensity of individuals' reactions to adjectives, phrases, or sentences about an object
Opinion Leader
A member of an informal group who provides information about a specific topic to other group members
Regression Analysis
A method of predicting sales based on finding a relationship between past sales and one or more independent variables, such as population or per capita income
Modified Rebuy Purchase
A new-task purchase that is changed on subsequent orders or when the requirements of a straight rebuy purchase are modified
Quota Sampling
A nonprobability sampling technique in which researchers divide the population into groups and then arbitrarily choose participants from each group
Business Cycle
A pattern of economic fluctuations that has four stages: prosperity, recession, depression, and recovery
Self-Concept
A perception or view of oneself
enduring involvement
A person's interest in a product or product category that is ongoing and long-term
In-Home (Door-to-Door) Interview
A personal interview that takes place in the respondent's home
Marketing Strategy
A plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market; the selection and analysis of a target market and the creation and maintenance of an appropriate marketing mix that will satisfy those people
Delphi Technique
A procedure in which experts create initial forecasts, submit them to the company for averaging, and then refine the forecasts
Personal Interview Survey
A research method in which participants respond to survey questions face-to-face
Mail Survey
A research method in which respondents answer a questionnaire sent through the mail
Online Survey
A research method in which respondents answer a questionnaire via email or on a website
Telephone Survey
A research method in which respondents' answers to a questionnaire are recorded by an interviewer on the phone
Shopping Mall Intercept Interview
A research method that involves interviewing a percentage of individuals passing by "intercept" points in a mall
Straight Rebuy Purchase
A routine purchase by a business buyer of the same products under approximately the same terms of sale
Executive Judgment
A sales forecasting method based on the intuition of one or more executives
Nonprobability Sampling
A sampling technique in which there is no way to calculate the likelihood that a specific element of the population being studied will be chosen
National Advertising Review Board (NARB)
A self-regulatory unit that considers challenges to issues raised by the National Advertising Division (an arm of the Council of Better Business Bureaus) about an advertisement
Personality
A set of internal traits and distinct behavioral tendencies that result in consistent patterns of behavior in certain situations
Organizational (Corporate) Culture
A set of values, beliefs, goals, norms, and rituals that members of an organization share
Focus Group
A small group of 8 to 12 people who are brought together to participate in an interview that is often conducted informally, without a structured questionnaire, to observe interaction when members are exposed to an idea or a concept
Target Market
A specific group of customers on whom an organization focuses its marketing efforts
Prosperity
A stage of the business cycle characterized by low unemployment and relatively high total income, which together ensure high buying power (provided the inflation rate stays low)
Recovery
A stage of the business cycle during which the economy moves from recession or depression toward prosperity
Depression
A stage of the business cycle during which unemployment is extremely high, wages are very low, total disposable income is at a minimum, and consumers lack confidence in the economy
Recession
A stage of the business cycle during which unemployment rises and total buying power declines, stifling both consumer and business spending
Marketing Objective
A statement of what is to be accomplished through marketing activities
Green Marketing
A strategic process involving stakeholder assessment to create meaningful long-term relationships with customers while maintaining, supporting, and enhancing the natural environment
Undifferentiated Targeting Strategy
A strategy in which an organization designs a single marketing mix and directs it at the entire market for a particular product; organization --> single marketing mix --> target market
Differentiated Targeting Strategy
A strategy in which an organization targets two or more segments by developing a marketing mix for each segment
Corporate Strategy
A strategy that determines the means of utilizing resources in the various functional areas to reach the organization's goals
Decentralized Organization
A structure in which decision-making authority is delegated as far down the chain of command as possible
Centralized Organization
A structure in which top-level managers delegate little authority to lower levels
Sales Force Forecasting Survey
A survey of a firm's sales force regarding anticipated sales in their territories for a specified period
Customer Forecasting Survey
A survey of customers regarding the types and quantities of products they intend to buy during a specific period
Better Business Bureau (BBB)
A system of nongovernmental, independent, local regulatory agencies supported by local businesses that helps settle problems between customers and specific business firms
Stratified Sampling
A type of probability sampling in which the population is divided into groups with a common attribute, and a random sample is chosen within each group
Probability Sampling
A type of sampling in which every element in the population being studied has a known chance of being selected for study
Sampling
A type of sampling in which every element in the population being studied has a known chance of being selected for study
On-Site Computer Interview
A variation of the shopping mall intercept interview in which respondents complete a self-administered questionnaire displayed on a computer monitor
Micromarketing
A way of segmenting a market that focuses precise marketing efforts on very small geographic markets, such as communities or neighborhoods
Geodemographic Segmentation
A way of segmenting the market that clusters people by zip codes or neighborhood units based on lifestyle and demographic information
Marketing Plan
A written document that specifies the activities to be performed to implement and evaluate the organization's marketing strategies
Profits can be obtained through relationships in the following ways:
Acquiring new customers, enhancing the profitability of existing customers, extending the duration of customer relationships
Roles
Actions and activities that a person in a particular position is supposed to perform based on expectations of the individual and surrounding people
Disposable Income
After-tax income
Population
All the elements, units, or individuals of interest to researchers for a specific study
What is the chief advantage of the concentrated targeting strategy?
Allows a firm to specialize
Sustainable Competitive Advantage
An advantage that the competition cannot copy
Federal Trade Commission (FTC)
An agency that regulates a variety of business practices and curbs false advertising, misleading pricing, and deceptive packaging and labeling
Random Factor Analysis
An analysis attempting to attribute erratic sales variations to random, non-recurring events
Seasonal Analysis
An analysis of daily, weekly, or monthly sales figures to evaluate the degree to which seasonal factors influence sales
Cycle Analysis
An analysis of sales figures for a three- to five-year period to ascertain whether sales fluctuate in a consistent, periodic manner
Trend Analysis
An analysis that focuses on aggregate sales data over a period of many years to determine general trends in annual sales
Reciprocity
An arrangement unique to business marketing in which two organizations agree to buy from each other
Value Analysis
An evaluation of each component of a potential purchase
Performance Standard
An expected level of performance against which actual performance can be compared
Ethical Issue
An identifiable problem, situation, or opportunity requiring a choice among several actions that must be evaluated as right or wrong, ethical or unethical
Willingness to Spend
An inclination to buy because of expected satisfaction from a product, influenced by the ability to buy and numerous psychological and social forces
Selective Distortion
An individual's changing or twisting of information that is inconsistent with personal feelings or beliefs
Level of Involvement
An individual's degree of interest in a product and the importance of the product for that person
Attitude
An individual's enduring evaluation of feelings about, and behavioral tendencies toward, an object or idea
Lifestyle
An individual's pattern of living expressed through activities, interests, and opinions
North American Industry Classification System (NAICS)
An industry classification system that generates comparable statistics among the United States, Canada, and Mexico
Internal Search
An information search in which buyers search their memories for information about products that might solve their problem
External Search
An information search in which buyers seek information from sources other than their memories
Hypothesis
An informed guess or assumption about a certain problem or a set of circumstances
Telephone Depth Interview
An interview that combines the traditional focus group's ability to probe with the confidentiality provided by telephone surveys
Social Class
An open group of individuals with similar social rank
Sole Sourcing
An organization's decision to use only one supplier
Multiple Sourcing
An organization's decision to use several suppliers
New-Task Purchase
An organization's initial purchase of an item to be used to perform a new job or solve a new problem
Social Responsibility
An organization's obligation to maximize its positive impact and minimize its negative impact on society
Market Orientation
An organization-wide commitment to researching and responding to customer needs; requires the "organization-wide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across department, and organization-wide responsiveness to it"
Research Design
An overall plan for obtaining the information needed to address a research problem or issue
Impulse Buying
An unplanned buying behavior, involving no conscious planning, resulting from a powerful urge to buy something immediately
Marketing Cost Analysis
Analysis of costs to determine which are associated with specific marketing efforts
Sales Analysis
Analysis of sales figures to evaluate a firm's performance
Statistical Interpretation
Analysis of what is typical and what deviates from the average
SWOT Analysis
Assessment of an organization's strengths, weaknesses, opportunities, and threats
Consumer Misbehavior
Behavior that violates generally accepted norms of a particular society
Questionnaire Construction
Carefully consider wording Avoid loaded questions Consider timing and context Avoid the politically correct answer Give a range of possible answers Use scaled answer sets
Learning
Changes in an individual's thought processes and behavior caused by information and experience
Segmentation Variables
Characteristics of individuals, groups, or organizations used to divide a market into segments
Spiritual Acquaintance
Charities to support, political ideas, lifestyle choices
Types of questions for questionnaire construction
Close-ended questions and open-ended questions
What are the major components of a total information system?
Collecting information, internal processing, providing information
Crowdsourcing
Combines the words crowd and outsourcing and calls for taking tasks usually performed by a marketer or researcher and outsourcing them to a crowd, or potential market, through an open call
How can a company reduce customer cost of risk?
Company can offer good basic warranties or extended warranties for additional charge, offer 100% satisfaction guarantee
Marketing Mix is shaped by...
Competitive forces, economic conditions, political forces, laws and regulations, technology, sociocultural forces
What types of targeting strategies can marketers use *through market segmentation*?
Concentrated, differentiated
Stakeholders
Constituents who have a "stake," or claim, in some aspect of a company's products, operations, markets, industry, and outcomes
Who are considered core stakeholders in developing a marketing strategy?
Customers and competitors
Marketing Decision Support System (MDSS)
Customized computer software that aids marketing managers in decision making
Secondary Data
Data compiled both inside and outside the organization for some purpose other than the current investigation
Primary Data
Data observed and recorded or collected directly from respondents
How to start a questionnaire construction? (2)
Decide what info you want to know and develop ideal model
Why do firms fail to attract customers?
Define their business as "making a product" rather than "helping potential customers satisfy their needs and wants"
Derived Demand
Demand for business products that stems from demand for consumer products
Joint Demand
Demand involving the use of two or more items in combination to produce a product
Inelastic Demand
Demand that is not significantly altered by a price increase or decrease
Demand
Derived, inelastic, joint demand, fluctuating
Marketers may influence consumers' evaluations by framing the alternatives
Describing the alternatives and their attributes in a certain manner
Most business buyers use one or more of the following purchasing methods:
Description, inspection, sampling, negotiation
What must a marketer do to maintain an assortment of products that help an organization achieve its goals?
Develop new products, modify existing ones, eliminate those that no longer satisfy enough buyers or yield unacceptable profits
Discretionary Income
Disposable income available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter
What may prevent adjusting of prices frequently/significantly?
Economic conditions, competitive structure, government regulations
Autonomic
Equally likely to be made by the husband or wife, but not by both (e.g., Men's clothing, luggage, toys and games, sporting equipment, cameras)
How can higher prices be used competitively?
Establishes a product's premium image (e.g., Rolex)
First step in implementing the marketing concept
Establishing an information system to deliver customers' real needs and use the information to create satisfying products
Relationship Marketing
Establishing long-term, mutually satisfying buyer-seller relationships
Strategic Performance Evaluation
Establishing performance standards, measuring actual performance, comparing actual performance with established standards, and modifying the marketing strategy, if needed
Psychological Influences
Factors that in part determine people's general behavior, thus influencing their behavior as consumers; perception, motives, learning, attitudes, personality and self-concept, lifestyles
Government Markets
Federal, state, county, or local governments that buy goods and services to support their internal operations and provide products to their constituencies
Wife dominant
Female head of household (e.g., children's clothing, women's clothing, groceries, household furnishings)
Total Budget Competitors
Firms that compete for the limited financial resources of the same customers
Product Competitors
Firms that compete in the same product class but market products with different features, benefits, and prices
Brand Competitors
Firms that market products with similar features and benefits to the same customers at similar prices
Generic Competitors
Firms that provide very different products that solve the same problem or satisfy the same basic customer need
Sales Orientation
First half of 20th century - the belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits
What's involved in the problem definition stage?
Focus on building a perspective, broad definition - exploratory research, narrow definition - decision-oriental research
Income
For an individual, the amount of money received through wages, rents, investments, pensions, and subsidy payments for a given period
Codes of Conduct
Formalized rules and standards that describe what the company expects of its employees
When firms are proactive and responsive to stakeholder concerns...
Found to increase financial performance, crucial to long-term growth of an organization and its products
Marketing Mix
Four marketing activities - product, distribution, promotion, and pricing - that a firm can control to meet the needs of customers within its target market
Market changes easily influence
How stakeholders perceive certain products
Promotional activities can help create...
Image and prestige characteristics
What do you need to collect before developing a marketing mix?
In-depth, up-to-date information about customer needs
How can a company reduce customer costs of time and effort?
Increase product availability
Producer Markets
Individuals and business organizations that purchase products to make profits by using them to produce other products or using them in their operations
Market Segment
Individuals, groups, or organizations sharing one or more similar characteristics that cause them to have similar product needs
Business Market
Individuals, organizations, or groups that purchase a specific kind of product for resale, direct use in producing other products, or use in general daily operations
Demand for Business Products
Industrial Demand
Situational Influences
Influences that result from circumstances, time, and location that affect the consumer buying decision process; physical surroundings, social surroundings, time, purchase reason, buyer's mood and condition
Single-Source Data
Information provided by a single marketing research firm
Reseller Markets
Intermediaries that buy finished goods and resell them for a profit
What is the key in implementing the marketing strategy?
Listening and responding to consumers' frustrations and appreciation
What is the greatest perceived value offered by the marketing mix?
Lowest price, most efficient, most convenient
Syncratic
Made jointly by husband and wife (e.g., vacations, TVs, living room furniture, carpets, financial planning services, family cars)
Market Test
Making a product available to buyers in one or more test areas and measuring purchases and consumer responses to marketing efforts
Husband dominant
Male head of household (e.g., lawnmowers, hardware and tools, stereos, automobile parts)
Big Data
Massive data files that can be obtained from both structured and unstructured databases
Breakdown Approach
Measuring company sales potential based on a general economic forecast for a specific period and the market potential derived from it
Buildup Approach
Measuring company sales potential by estimating how much of a product a potential buyer in a specific geographic area will purchase in a given period, multiplying the estimate by the number of potential buyers, and adding the totals of all the geographic areas considered
"Movie Buff" Friend
Movies to see in theaters, rent, stream or buy
Most business purchases are one of three types:
New-task, straight rebuy, modified rebuy
Evaluate Criteria
Objective and subjective product characteristics that are important to a buyer
B2B E-Commerce Sites
Online marketplaces where business buyers and sellers from around the world can exchange information, goods, services, ideas, and payments
Institutional Markets
Organizations with charitable, educational, community, or other nonbusiness goals
Consumerism
Organized efforts by individuals, groups, and organizations to protect consumers' rights
Competition
Other organizations that market products that are similar to or can be substituted for a marketer's products in the same geographic area
It is accepted by others
People think they are smarter than others
Medical Friend
Prescription drugs, vitamins, health products,
What is the most flexible variable in the marketing mix?
Price variable
Intense price competition leads to...
Price wars
Marketing Ethics
Principles and standards that define acceptable marketing conduct as determined by various stakeholders
Types of Business Markets
Producer Markets Reseller Markets Government Markets Institutional Markets
Consumer Market
Purchasers and household members who intend to consume or benefit from the purchased products and do not buy products to make a profit
Promotion Variable of Marketing Mix
Relates to activities used to inform and persuade to create a desired response; focuses integrated marketing communication to inform and persuade consumers to purchase a product
Price Variable of Marketing Mix
Relates to decisions and actions associated with pricing objectives and policies and actual product prices
Requirements for effective use of market segmentation
Relevancy, measurability, accessibility, sustainability
Selective Retention
Remembering information inputs that support personal feelings and beliefs and forgetting inputs that do not
Descriptive Research
Research conducted to clarify the characteristics of certain phenomena to solve a particular problem
Exploratory Research
Research conducted to gather more information about a problem or to make a tentative hypothesis more specific
Conclusive Research
Research designed to verify insights through objective procedures and to help marketers in making decisions
Experimental Research
Research that allows marketers to make casual inferences about relationships between variables
Product variable of the marketing mix deals with...
Researching customers' needs and wants and designing a product that satisfies them
Expert Forecasting Survey
Sales forecasts prepared by experts outside the firm, such as economists, management consultants, advertising executives, or college professors
Dissatisfied Customers who lacks trust in exchange relationship...
Search for alternative organizations and products
Information Inputs
Sensations received through sight, taste, hearing, smell, and touch
Factors considered in selecting a segmentation variable
Should relate to customers' needs for, uses of, or behavior toward the product
Customer Advisory Boards
Small groups of actual customers who serve as sounding boards for new product ideas and offer insights into their feelings and attitudes toward a firm's products and other elements of its marketing strategy
Exchange Seller --> Buyer
Something of value (e.g., goods, services, ideas)
Exchange Buyer --> Seller
Something of value (e.g., money, credit, labor, goods)
Strategic Windows
Temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competing in that market
First-Mover Advantage
The ability of an innovative company to achieve long-term competitive advantages by being the first to offer a certain product in the marketplace
Late-Mover Advantage
The ability of later market entrants to achieve long-term competitive advantages by not being the first to offer a certain product in a marketplace
Wealth
The accumulation of past income, natural resources, and financial resources
Culture
The accumulation of values, knowledge, beliefs, customs, objects, and concepts that a society uses to cope with its environment and passes on to future generations
Marketing Citizenship
The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders
Sales Forecast
The amount of a product a company expects to sell during a specific period at a specified level of marketing activity
Technology
The application of knowledge and tools to solve problems and perform tasks more efficiently
Marketing Environment
The competitive, economic, political, legal and regulatory, technological, and sociocultural forces that surround the customer and affect the marketing mix
Buying Behavior
The decision processes and actions of people involved in buying and using products
Buyer Behavior
The decision processes and acts of individuals involved in buying and using products
Consumer Buying Behavior
The decision processes and purchasing activities of people who purchase products for personal or household use and not for business purposes
Benefit Segmentation
The division of a market according to benefits that consumers want from the product
Problem Recognition
The first stage of the business buying process in which someone in the company recognizes a problem or need that can be met by acquiring a good or a service.; occurs when a buyer becomes aware of a difference between a desired state and an actual condition
Maslow's Hierarchy of Needs
The five levels of needs that humans seek to satisfy, form most to least important (Below is bottom to top of pyramid) o Basic Needs: Physiological Needs: Food, water, warmth, rest Safety Needs: Security, safety o Psychological Needs: Belongingness and Love Needs: Intimate relationships, friends Esteem Needs: Prestige and feeling of accomplishment o Self-Fulfillment Needs: Self-Actualization: Achieving one's full potential, including creative activities
Social Influences
The forces other people exert on one's buying behavior; roles, family, reference groups, opinion leaders, social classes, culture and subculture
Sociocultural Forces
The influences in a society and its culture(s) that change people's attitudes, beliefs, norms, customs, and lifestyles
Motivation
The inner driving forces or reasons behind an individual's actions and behaviors
Company Sales Potential
The maximum percentage of a market that an individual firm within an industry can expect to obtain for a specific product
Market Density
The number of potential customers within a unit of land area
Buying Center
The people within an organization who make business purchase decisions
Market Share
The percentage of a market that actually buys a specific product from a particular company
Sustainability
The potential for the long-term well-being of the natural environment, including all biological entities, as well as the interaction among nature and individuals, organizations, and business strategies
Cause-Related Marketing
The practice of linking products to a particular social cause on an ongoing or short-term basis
Selective Exposure
The process by which some inputs are selected to reach awareness and others are not
Environmental Analysis
The process of assessing and interpreting the information gathered through environmental scanning
Environmental Scanning
The process of collecting information about forces in the marketing environment
Marketing
The process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment
Market Segmentation
The process of dividing a total market into groups consisting of people or organizations with relatively similar product needs in order to design a marketing mix that matches those needs
Strategic Planning
The process of establishing an organizational mission and formulating goals, a corporate strategy, marketing objectives, and a marketing strategy
Strategic Marketing Management
The process of planning, implementing, and evaluating the performance of marketing activities and strategies, both effectively and efficiently
Marketing Implementation
The process of putting marketing strategies into action
Perception
The process of selecting, organizing, and interpreting information inputs to produce meaning
Consumer Socialization
The process through which a person acquires the knowledge and skills to function as a consumer
Exchanges
The provision or transfer of goods, services, or ideas in return for something of value
Business (Organizational) Buying Behavior
The purchase behavior of producers, government units, institutions, and resellers
Customers
The purchasers of organizations' products; the focal point of all marketing activities
Competitive Advantage
The result of a company matching a core competency to opportunities it has discovered in the marketplace
Buying Power
The size of the resources, such as money, goods, and services that can be traded in an exchange, that enable the individual to make purchases
Strategic Philanthropy
The synergistic use of organizational core competencies and resources to address key stakeholders' interests and achieve both organizational and social benefits
Marketing Research
The systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities
Justification/rationalization
The thrill of getting away with it
Market Potential
The total amount of a product that customers will purchase within a specified period at a specific level of industry-wide marketing activity
Marketing Analytics
The use of tools and methods to measure and interpret the effectiveness of a firm's marketing activities
Economic Reasons
There is little risk of getting caught
Core Competencies
Things a company does extremely well, which sometimes gives it an advantage over its competition
How do consumers develop a concept of value?
Through integration of their perceptions of product quality and financial sacrifice
What types of targeting strategies can marketers use?
Undifferentiated, concentrated, differentiated
Questionnaire Construction Wording of Questions
Use simple, direct language; question structure
Customer Relationship Management (CRM)
Using information about customers to create marketing strategies that develop and sustain desirable customer relationships
Product Specifications
Written statements describing a product's necessary characteristics, standards of quality, and other information essential to identifying the best supplier for the needed product
Deciders
actually make the buying decision, whether or not they have the formal authority to do so
Demographic Variables
age, gender, race, ethnicity, income, education, occupation, family size, family life cycle, religion, social class
Customer costs include
anything a buyer must give up to obtain the benefits the product provides including cost, time, effort, and risk
Customer benefits include
anything a buyer receives in an exchange (e.g., good/service, amenities, customer service, etc.)
Gatekeepers
control the flow of information and may limit the alternatives considered
Customer Value = _______ - _________
customer benefits - customer costs
What is the major focus of marketing concept?
customer satisfaction
What characteristics are used to segment markets?
demographic, geographic, psychographic, behavioristic
Methods of Buying
description, inspection, sampling, negotiation
Customer Attributes
detailed information, technical specifications, partnerships
PRIZM
geo-demographic classification system that merges Census data with product consumption and media usage patterns; Potential Ratings Index by ZIP Market
Production Orientation
industrial revolution - make it and people will buy it
Transaction Characteristics
large orders, expensive items, extended negotiations, reciprocity
Types of Purchases
new task, straight rebuy, modified rebuy
Influencers
often technical personnel, such as engineers, who help develop product specifications and evaluate alternatives
Users
organizational members who will actually use the product
Psychographic Variables
personality attributes, motives, lifestyles
customers' primary concerns
price, quality, service, supplier relationships
Geographic Variables
region, urban, suburban, rural, city size, county size, state size, market density, climate, terrain
Three types of consumer decision making
routinized response behavior limited decision making extended decision making
Buyers
select suppliers and negotiate terms of purchase
Partnerships
suppliers and their customers build and maintain mutually beneficial relationships
situational involvement
temporary and dynamic and results from a particular set of circumstances (emergency)
Behavioristic Variables
volume usage, end use, benefit expectations, brand loyalty, price sensitivity
Dimensions of Marketing to Business Customers
• Characteristics of Transactions with Business Customers • Attributes of Business Customers • Primary Concerns of Business Customers • Methods of Business Buying • Types of Business Purchases • Demand for Business Products
Requirements to be a Market
• Needs for a product in a product category • Ability to buy • Willingness to buy • Authority to buy
Major Components of the Perceptual Process
• Perceptual Selection • Perceptual Organization • Perceptual Interpretation