mkt 201
What are the criteria used to define a market segment?
1. Sustainability- can we make money 2. Identify and Measure- can we describe them 3. Accessibility- can we reach them to communicate 4. Responsiveness to Criteria- do we know enough about their values
Maslow's Hierarchy - what are the different needs we have as people and in what order do we seek to satisfy those needs?
BOTTOM LEVEL TO TOP Physiological- water, sleep, food, type of food you eat, location ,price, belief system Safety- shelter Belonging- love, acceptance, friendship Ego Needs- prestige, accomplishment Self actualization- deep psychological need to accomplish something
Government Factors:
Climate for business Tax Rates Restrictions of Cash Flows
What is the difference between a convenience good, a shopping good and a specialty good? Explain, use examples in your explanation.
Convenience Good Everyday thing Shopping Goods- COMPARISON SHOPPING Travel further Significant Amount of Money Example: refrigerator, television, vacuum Specialty- COMPARISON SHOPPING Travel even further Purchase once in a blue moon Example: Sports Car
What are the steps in the market research process?
Define the problem Develop Research plan Collect relevant information Develop findings and recommendations Take Action
Disposable versus Discretionary Income - explain and provide example.
Discretionary income: The $ left over after paying for the necessary items Stupid stuff on Amazon Food Coffee Events Designer Clothing Sneakers Hygiene Products Disposable Income: Paying for necessary items Textbooks Headphones Clothes not on sale, not sneakers
Economic factors,
Economic Factors: Unemployment Rate Compare to previous years Trends National averages Inflation Rate Cost of living in certain areas Income Level of Optimism/Pessimism of Consumers and Investors Inventory Levels Exchange rates: Currency Trading Partners and their financial health Future trends Technology and the paths over the years Why trend didn't work out
Infrastructure Factors
Education Transportation Health care Communication
Ecology
Environmentally friendly companies What does our sector do with environment? No polluting processes-waste produced Packaging Organic dyes Cleaning
Consumer Decision-Making Process - what are the steps in the process? Explain in detail.
Event/Circumstance that triggers you What types of information would you collect and from whom and/or where What criteria do you like to use to decide? Ex. Attributes, MPG, Styling, AIC, Inexpensive to Repair Actual Purchase trip Make Purchase vs. Post purchase dissonance
Technology Factors
Fewer on manufacturing floor Payments Transportation
Suppliers and Raw Materials
Location, #, relationship Impress suppliers Finite supply resources
Consumers may also have high or low involvement with the products they purchase. Explain, using examples.
Low Involvement aren't necessarily items bought on impulse. Example: Standing in line and see a magazine, or tape that you think you might need High Involvment are a higher risk to buyers if they fail Example: House, Car, etc.
Socio-cultural
Many people buy into Past Experience to make choices Something everyone would agree Personal
Why is it difficult to do good marketing research?
Market Research- define an opportunity or problem, systematically collect and analyze information, recommend course of action Do we know what we want? Will our actual behavior match what we said we would do? Types of Research 1. Secondary- existing data 2. Primary- data specifically collected for the purpose of answering a question
What is marketing? What are the conditions needed for marketing to occur?
Marketing is getting the correct product or service to the correct target market at the correct price with the correct message, through the correct channel. The conditions needed are: 1. Two or more parties with unsatisfied needs Example: Desiring a meal 2. The desire and ability to on their part to be satisfied Example: Desire for someone to sell and another to buy 3. A way for parties to communica Example: Must know product exists and its location and or phone number 4. Something to exchange Example: Transaction
What is the difference between probability and non-probability research?
Nonprobability- snowball method Probability- select a sample from a defined universe of target customers
Demographics and Psychographics
Objective facts about a POPULATION Drive to make people buy Subjective values, Attitudes, Beliefs Target Market
What are the two types of waiting? What are the different steps at which a customer may wait? Explain, using examples.
Occupied- acknowledged as people Example: pagers Unoccupied- ups your stress level Example: The time you spend waiting for your food; not greeted
Legal
Patents and Delevopers Copyrights, Trademarks License product to enter market
Perceived Risk - what are the types of risk possible? Provide an example and explanation for each.
Percieved Risks Physical- product hurting others to breaking Psychological- worries whether what you do make you look good or bad in other people's eyes Social- worried about so or boss reacting badly Sensory- our senses don't "agree" Looks great, tastes bad Functional- will it work as promised Financial- costing it too much worth the price? Temporal- time is it worth the wait, too much time in order to learn the product
What is included in a SWOT analysis and why do we do them? How does Porter's 5 Forces help us decipher the situation?
S- Strength W-Weakness O- Opportunity T- Threat We use this to develop a fuller awareness of the situation helps with both strategic planning and decision-making. Porter's Five Forces: Threat of new entrants Threat of substitutes Bargaining buyer of powers Bargaining power of suppliers and intensity of competitive rivalry How they enforce each other:
Explains the basics of the communication process, working from Source through to Decoding by receiver.
Source Coded Message: use particular language Aim to resonate Communication Channel Reachable Decoded Message by Receiver A (Awareness), I (Interest), D (Desire), A (Action) + knowledge of consumer Decision Making Process
Scanning for threats and opportunities requires that each issue be evaluated for likelihood of occurrence as well as potential impact on the firm. Why is this so? Please provide an example as part of your explanation.
There are different types of scanning to be considered. With Ad Hoc scanning, the firm could go into crisis mode because this type of scanning occurs when they get around to it. For example, Regular Scheduled scanning stresses the importance of staying up to date of what is going on in the market.Continuous - always scanning the market. Catastrophists UNITE look at all different things that could affect company- the probability and consequences.
Product users, product influencers and product purchasers - are they the same person or are they always different people? Or???
They can be the same person or different. For example if they are selling a cleaning service they would all be different. Whereas if they were buying a shirt at a sports game it would be all of them.
Some products are "think" products while others are "feel" products. Some may even be both! Explain, using examples.
Think products are ones that you think about and do research about before buying. Car, computer, school Feel products are ones you always turn to that can be easily replaced if they are not available. Milk, pencils, cleaning supplies.
What are some common unethical and deceptive marketing practices? Explain, please provide examples.
Using initial low rates, deals that aren't actually deals such as a deal on a market up price. Deceptive sales techniques include bribery, price discrimination, marketing defective products, deceptive/misleading packaging.
Provide some examples of ways in which firm(s) have broken the law from our class discussion.
Volkswagen Scandal: altered emissions, cheater on test run to get good numbers Telecommunications: AT&T sued by FTC over deceptive United Data Plan, but in reality thrusted the speed lawsuit dismissed fined 100M MLS Headquarters: Executives convicted of taking bribeds Athletic Footwear: Nike using sweatshops
What does one need to know in order to decide that a market segment can be targeted?
What your primary market is going to be such as demographics and psychographics.
Why do we need both demographic and psychographic factors in order to describe a market segment? Provide an example to support your explanation.
You need to know the age and gender and things like that so you can go to an area and advertise to those groups. And need psychographics to make sure that you will fit with those groups beliefs about a product and that it will fit the description of what they are looking for.
