UNT MKTG 3650 EXAM 2 - Strutton

probability assesments

- allows marketers to make more reasonable decisions - lets marketing researchers eliminate much of the uncertainty that otherwise would have to manage - more reasonable and info-driven guesses!!!

consumer behavior

- buying behavior of final consumers

incentives

- consumer behavior driver and motivator - rational people respond to [these]

marketing mix

- controllable marketing stimuli - 4/ 7 P's of marketing

uncontrollable stimuli

- cultural - social - personal - psychological

two types of knowledge

- descriptive (propositional) - prescriptive (prescriptive)

cultural stimuli

- entire set of values, ideas, or attitudes shared among or learned from the members of a group - the most basic cause of people's needs ex: sports fan

segment examples

- geography - demographics - age - gender - family life-cycle stage - occupation - religious affiliations - ethnicity - psychographics - behavioral - occasion-based - benefit-based - user status - loyalty-based

dichter

- ivory soap guy - pursued open ended questions when surveying - "father of modern marketing research" - first to propose that brands have image or personality - products are sometimes bought for the meaning or values instead of functionality - branded objects have meanings (related to sex, insecurity, or desires for prestige)

three sets of knowledge

- know yourself - know your enemy - know your terrain

culture is

- lens-like (think thick glasses through which you view the world) - glacier-like (cultural factors influence marketing practice; marketing practice shapes cultural factors) - ocean-like (consumers are like sea creatures immersed in the midst of these oceans or cultures with out realizing it)

marketing research

- links customers/ prospects to marketers through info - analytical fact-based empirical and date driven process - conducted to create solutions where managers can make better/ more informed bets about the future

psychological stimuli

- perceptions - learning - beliefs and attitudes - motivations

two types of data

- primary - secondary

maslow's hierarchy of needs (marketing)

- products can be positioned based on the hierarchical need they intend to satisfy - products can satisfy multiple levels - it's easy for marketers to jerk consumers up or down the hierarchy

two reasons for marketing research

- propositional knowledge - prescriptive knowledge

social class

- relatively enduring and ordered divisions inside the american population - there's seven: upper-upper, lower-upper, upper-middle, low-middle, lower-upper, and lower-lower - each one is relatively homogeneous; sharing relatively similar values, interests, and lifestyle choices - SO WHAT? members of the same [insert term] will likely react similarly to the same promotions (social stimuli)

social stimuli

- social class - membership groups, family, reference groups, opinion-leaders

questions marketing firms should answer about consumers and their behavior

- what, where, and how much consumers buy, as well as when they buy - and why consumers buy what they decide to buy

prof's preferred segmentation

1 or 2 demographic 1 psychographic

four info-driven activities

1) info identification activities 2) info collection activities 3) info-analytical activities 4) info-reporting activities

three reasons to market segment

1) no single marketer can successfully appeal to all B2B or B2C customers at the same time 2) many marketers must select the customers with whom they create lasting relationships with, particularly inside supply chains 3) marketers must be choosy with who they target because mass markets do not exist anymore

three disclaimers to decision making

1) not all consumers pass through the same consumer decision-making stages at the same time 2) not all consumer pass through all five stages 3) consumers can enter/ exit any stage at any time

maslow's hierarchy of needs (levels)

1) physiological (bottom level) 2) safety 3) social 4) personal aka self-esteem 5) self-actualization (top level)

P's of marketing

1) price 2) promotion 3) place 4) products ---------------- 5) people 6) processes 7) physical surroundings

three types of perceptions

1) selective attention 2) selective distortion 3) selective retention

four levels of targeting

1) target broadly 2) target narrowly 3) target extremely narrowly 4) differentiated targeting

consumer decision-making model

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

percentage of gdp that is driven by consumer decisions and purchases

70%

cb question that is most difficult to answer

WHY - we never truly know what motivates a consumer to buy the products/ brands that they do; answers are locked inside their "black boxes" aka their minds - what seems rational to some consumers could be seen as completely irrational to others

representative sample

a small quantity of something that accurately reflects the larger entity

AIOs

activities, interests, opinions of the consumer; essentially measures what consumers prefer to do or contemplate in their free time (part of psychographics)

cognitive dissonance

aka buyers remorse

target narrowly

aka concentrated or niche market targeting; target large shares of narrowly-defined segments ex: products to help people to stop smoking, panera, siriusXM radio (one of four levels of targeting)

target extremely narrowly

aka micro-targeting; only one segment is targeted; highly specialized consumers ex: Lochheed-Martin and military planes, outlaw country radio station (one of four levels of targeting)

variance

aka range; difference between the largest and smallest values

target broadly

aka undifferentiated or mass marketing; commodities, when variability among competitor's products is low, when a product is new-to-market (one of four levels of targeting)

value propositions

align precisely with the types of consumer attitudes already present withing target market segments; generated by combining all possible benefits and values through marketing mixes to incentivize customers

people never see the same river twice

all streams constantly change this relates to consumers/ marketing; marketing research should be used to monitor these changes

learning

arises from a 4-way interaction between a) consumer's motives b) stimuli c) consumer's responses to stimuli d) rewards or punishments resulting from their behavioral responses (psychological stimuli)

life happens when

between the stimulus and response

self-concept

can be expressed in various ways; the mental images that consumers posses and enjoy/endure about themselves and their strengths, weaknesses, or social status (part of personal stimuli)

subcultures

can easily be used as market segments; might be more important to marketers than culture (ex: east coast vs. west coast, north U.S vs. the south, music or sports fans)

alternative evaluation

careful evaluation of competing brand alternatives and their attributes (third consumer decision-making model stage)

secondary info

collected by others (competitors' website, gov't documents, online industry report)

reliable info

collected from questions that are free from systematic or statistical error

psychographics

combination of a consumers' preferred AIOs and dominant personality traits

evangelizing

consumer initiated communication process that entails word-of-mouth (a marketers best friend or worst enemy)

post purchase evaluation

consumers are satisfied if their expectations about the product are met and vice versa (fifth consumer decision-making model stage)

selective attention

consumers do not pay attention to most stimuli to which they are exposed to; we don't pay attention to things we don't agree with (type of perception)

problem recognition

consumers have a problem that they want to be solved; something is wrong or missing or lacking (first consumer decision-making model stage)

information search

consumers seek out info available about their potential solutions; sources can include friends, coworkers, family, internet, commercials etc (second consumer decision-making model stage)

selective retention

consumers tend to retain information that supports attitudes and beliefs they already hold (type of perception)

social status

delivers positional value to consumers meaning: their [insert term] elevates them above other consumers (social stimuli)

beliefs

descriptive thoughts that consumers develop (part of psychological stimuli - beliefs and attitudes)

human behavior

difficult to predict because everybody thinks they are rational

target marketing

entails evaluating various segments that have been identified as more or less attractive and deciding which ones to pursue

focus groups

entails small groups of people that are deliberately-selected (to represent the larger population being researched) who participate in planned question-prompted discussion - consistently used by politicians

information reporting activities

entails the conversation of info into actionable knowledge (one of the four info-driven activities)

family

exercises huge influence on consumer decisions and behaviors; there are specific roles to each [insert term]; many different types

reference groups

exercises tremendous influence on consumer decision-making; consumers look to these to secure opinions on what they should shouldn't be buying and how to behave; two types (social stimuli)

three motives

fear, greed, love

motives

function as NEEDS that are sufficiently pressing to direct individual consumers to seek satisfaction and solutions to whatever problems are triggering these aka drives ex: biological - food, water, sleep ex: psychological - feel safe, fit in (part of psychological stimuli)

aspirational reference groups

group to which consumers wants to belong (reference group)

membership groups

groups that have a direct influence on consumers' behaviors and decision making and to which a person belongs ex: frats/sororities, NRA, church congregations (social stimuli)

why marketers should study cb

in order to understand how best to catch consumers

personal stimuli

includes the consumer's: - age - family life-cycle status - occupation and current wealth - lifestyle choices (AIO's and psychographics) - dominant personality traits - self-concepts

prescriptive knowledge

informs marketers about what they should do, suggests logical, strategic steps (2/2 types of knowledge)

pareto principle

informs marketers as they strategize about where to allocate the lion's share of their marketing efforts and resources (80-20 rule)

attitude

intertwined beliefs (difficult to break apart); more deeply held than beliefs; marketers should not try to change these (part of psychological stimuli - beliefs and attitudes)

information-collection activities

marketers ensure that the data they have collected is accurate (reliable and valid) (one of the four info-driven activities)

laser-like marketing

marketers must target with precision and efficiency, made possible with data-mining (today)

when targeting more than one segment

marketers should produce a unique marketing mix for each segment

information analytical activities

marketers statistically analyze info that was collected; conducted to develop strategic, knowledge-based inferences (one of the four info-driven activities)

who wins marketing competitions?

marketers that have superior knowledge

shotgun marketing

marketers who had the resources would just throw out their messages and a sufficient amount of consumers would catch them (back then)

law of perceptions

marketing is not so much a battle of products or brands, but a battle between the value of brands inside the same product category

information identification activities

marketing researchers ask specific questions (one of the four info-driven activities)

factors of social class

measured by a combination of several variables such as: - occupations - annual incomes - education - neighborhood/ zip code

DINKs

most desirable family unit for marketers; easy to market luxury items (double income, no kids)

primary info

new or original information (before the research was conducted, the research did not exist) - most expensive to collect

opinion-leaders

often exercise extreme effects on consumers who are struggling to make decisions; most likely someone the consumer knows personally; usually perceived as an "expert" in that particular category (reference group)

statistical analysis

permits massive amounts of info to be compressed into a few meaningful numbers (ex: mean, median, mode, variance)

automation bias

putting too much faith into technology, gives a false sense of security

valid info

secured from questions measuring exactly what they're supposed to measure; no more or no less info than needed (info can't be [this] without being reliable)

marketing information systems

secures better information; determine and acquire exactly the sort of information that marketers require to properly develop and execute strategic marketing plans

evoked set

set of specific products that come to mind when thinking of buying a certain product

personality

sets of unique psychological characteristics that lead consumers to engage in relatively enduring and consistent responses to stimuli ex: confidence, sociability, dominance, willingness to broadcast, willingness to adapt, willingness to take risks (part of psychographics)

attractive market segments

should be: - measurable - accessible - substantial - differentiable - actionable

why marketing research is important

successful marketing requires marketers to make current bets about future human behaviors

marketing knowledge operates as...

the foundation for: - competitive advantage - economic growth at micro or macro levels

descriptive knowledge

the insights generated through marketing research describe changing trends aka propositional or diagnostic (1/2 types of knowledge)

perceptions

the process by which people select, organize, and then interpret stimuli; largely uncontrollable but marketers still try and manipulate them = reality (psychological stimuli)

market segmentation

the process of dividing a heterogeneous market into meaningful, relatively similar or homogeneous, and identifiable segments or groups

knowledge

the true operant (effective/ useful) resource for marketers

word of mouth (WOM)

uncontrollable marketing communication process; can be a marketers best friend or worst enemy; negatives travel more quickly

rugged individualism

used by brands like: jeep, SUVs, Merrill Lynch "don't just run with the bulls, run ahead of the bulls"

selective distortion

we shape what we hear to support what we already believe (type of perception)

purchase decision

whether an actual purchase decision is made or not, this stage begins with intention; even if consumers decide not to purchase - that is still a decision (fourth consumer decision-making model stage)

marketing battles are won based on

which brands secure more favorable perceptual spaces - uniquely desirable market positions - inside the collective mind of the targeted market segment