Data Relevant To A Marketing Decision example essay topic

Ch 5 Consumer behavior- Processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services. 5 Steps to decision process- need recognition, information search, evaluation of alternative, purchase, post purchase behavior. Need re cog- result of an imbalance between actual and desired states. External stimuli is a pic, internal stimuli is a past experience, good or bad. Recognition of unfulfilled wants- when a product isn't performing properly, when consumer is running out of product, when another product is better than one being used. Info search- internal (memory) and external (tv).

EVOKED SET (consideration set) - group of brands, resulting from an information search from which a buyer can choose. Evaluation of alternatives- rank attributes by importance, analyze product attributes, use cut off criteria. Post purchase behavior- Cognitive dissonance inner tension that a consumer experiences after recognizing an in consistence between behavior and values or opinions. Consumers try to reduce dissonance by justifying their decision. Factors determining the level of consumer involvement- previous experience, interest, perceived risk of negative consequence, situation, social visibility. Underlying cultural, social, individual, and psychological factors strongly influence the decision process.

Culture play deepest part of a persons consumer behavior, culture is pervasive, functional, learned, and dynamic, and the most defining element of a culture is values. Marketers are interested in social class for 2 reasons, Social class often indicates which medium to use for advertising, and knowing what products appeal to which social classes. Reference groups- a group in society that influences an individual purchasing behavior. Primary membership group- a reference group with which people interact regularly in an informal, face to face manner.

Secondary membership group- A reference group with people associate less consistently and more formally that a primary such as a club, pro group or religious group. Aspirational reference group- A group that someone would like to join. Norm- A value or attitude deemed acceptable by a group. Reference groups have 3 implications- serve as info sources and influence perception, affect individual aspiration levels, their norms either constrain or stimulate consumer behavior. Ch 6 Business products- used to manufacture other products, become part of another product, aid the normal operations of an organization, are acquired for resale without change in form. Internet Marketing opportunities- increase efficiency, reduce cost, improve customer service, create 1 to 1 relationships, introduce new products, expand markets.

Benefits of marketing on the net- lower prices, greater selection of products and vendors, access to customer and product sales data, around the clock ordering and customer service, lower cost, customized products. Strategic alliance- 2 companies come together Always maintain control of your customer list Some alliances are formed to achieve economies of scale, and to leverage what they have. Keir etsu- a network of interlocking corporate affiliates... a bunch of companies linked to holding companies. North American Industry Classification System (NAICS) - A detailed numbering system developed by the US, Canada, and Mexico, to classify North American business establishments by their main production processes. Derived demand- the demand for business products. Inelastic demand- an increase or decrease in the price of the product will not significantly affect demand for the product.

Joint Demand- the demand for two or more items used together in a final product. Fluctuating demand Bull Whip Theory / Multiplier effect- Phenomenon in which a small increase or decrease in the consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product. Nature of Buying- business buyers usually approach purchasing rather formally. Reciprocity- a practice where business purchaser choose to buy from their own customers. Type of business products- major equip, accessory equip, raw materials, component parts, processed materials, supplies, business services. OEM- means original equipment manufacturer.

OEMs buy business goods that they incorporate into the products that they produce for eventual sale to other producers or to consumers. Buying Center-initiator, influence rs, gatekeepers (most important decide what goes through) decider, purchaser, users. Evaluation Criteria- Price, service, quality (most important). Buying Situations- New buy, modified re buy, straight re buy.

CH 7: Importance of market segmentation- Markets have a variety of product needs and preferences, marketers can better define customer needs, decision makers can define objectives and allocate resources more accurately. To be useful a segmentation scheme must have segments meeting 4 criteria: Substantiality, identifiably and mensurability, accessibility, responsiveness. Benefits of Regional segmentation- New ways to generate sales in sluggish and competitive markets, Scanner data allow assessment of best selling brands in region, Regional brands appeal to local preferences, React more quickly to competition. Demographic segmentation- markets by age, gender, income, ethnic background, and family life cycle. Psycho graphic segmentation- Market segmentation on the basis of personality, motives, lifestyles, and geo demographics. Lifestyle segmentation- times spent, importance of things, beliefs, socioeconomic characteristics.

Usage-rate segmentation- dividing a market by the amount of product bought or consumed. 80/20 principle- a principle holding that 20 percent of all customers generate 80% of the demand. Company characteristics such as geographic location, type, size, and product use can be important segmenting variables. Buying processes- how much they buy two profiles of this, satisfiers- business customers who place an order with the first familiar supplier to satisfy product and delivery requirements. Optimizers- business customers who consider numerous suppliers, both familiar and unfamiliar, solicit bids, and study all proposals carefully before selecting one. Three general strategies for selecting target markets- undifferentiated, concentrated, and multi segment targeting.

Undifferentiated Targeting- marketing approach that views the market as one big market with no individual segments and thus requires a single marketing mix. Concentrated targeting strategy- a strategy used to select one segment of a market for targeting marketing efforts. Multi segment targeting strategy- A strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each. Cannibalization- a situation that occurs when sales of a new product cut into sales of a firms existing products. Positioning- developing a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general. Positioning bases- Attribute, Price and quality, use or application, product user, product class, competitor.

Repositioning- changing consumers perceptions of a brand in relation to competing brands. CH 8: Decision support system DSS- An interactive, flexible computerized info system that enables managers to obtain and manipulate information as they are making decisions. Characteristics: Interactive, flexible, discovery-oriented, accessible. Database Marketing- the process of planning collecting, and analyzing data relevant to a marketing decision. Descriptive (Gathering & presenting factual statements.

Diagnostic (Explaining data). Predictive (Attempting to estimate the results of a planned marketing decision). Management uses of marketing research- improve the quality of decision making, trace problems, focus on keeping existing customers, understand the ever-changing marketplace. Exhibit 8.1- 1) identify and formulate the problem / opportunity 2) plan the research design and gather primary data 3) specify the sampling procedures 4) collect data 5) analyze data 6) prepare and present the report 7) follow up.

Marketing research problem- determining what info is needed and how that info can be obtained efficiently and effectively. Marketing research objective- the specific info needed to solve a marketing research problem: the objective should be to provide insightful decision-making info. Management decision problem- a broad-based problem that requires marketing research in order for managers to take proper actions. Secondary Data- data previously collected for any purpose other than the one at hand.

Sources of secondary data- internal corporate info, government agencies, trade and industry associations, marketing research firms, commercial publications, news media. Advantages of secondary data- Saves time and money if on target, aids in determining direction for primary data collection, pinpoints the kinds of people to approach and their locations and serve as a basis of comparison of other data. DIS- may not be on target, quality or bad accuracy. Research design- specifies which research questions must be answered, how and when the data will be gathered, and how the data will be analyzed.

Primary Data- info collected for the first time. Can be used for solving the particular problem under investigation. ADV primary- answers a specific research question that 2 nary cant answer, current and researchers know the source. DIS- expensive, quality declines when piggy backed questions. Survey Research- the most popular technique for gathering primary data in which a researcher interacts with people to obtain facts, opinions and attitudes. Types of surveys- Mall intercept, telephone, mail, executive interviews, focus groups, and online.

Executive interview- a type of survey that involves interviewing businesspeople at their offices. Central-location telephone (CLT) - a specially designed phone room used to conduct telephone interviewing. Online survey good- speed, cost effectiveness, broad geographic scope, accessibility, honesty. Questionnaire design- opened-ended question- interview question that encourages an answer phrased in the respondents own words. Closed ended question- an interview question that asks the respondents to make a selection from a limited list of responses. Scaled response question- a closed-ended question designed to measure the intensity of a respondents answer.

Types of errors- Measurement error- an error that occurs when there is a difference between the information desired by the researcher and the information provided by the measurement process. Sampling error- an error that occurs when a sample somehow does not represent the target population. Frame error- an error that occurs when a sample drawn from a population differs from the target population. Random error- an error that occurs when the selected sample is an imperfect representation of the overall population. Field service firm - a firm that specializes in interviewing respondents on a subcontracted basis. Provides focus group facilities, mall intercept local, test product storage, kitchen facilities, retail audits.

Cross-tabulation: ask 4 or 5 questions looking for consistency. Preparing and presenting the report- Concise statement of the research objectives, explanation of research design, summary of major findings, conclusion. Scanner based research- a system for gathering information from a single group of respondents by continuously monitoring the advertising, promotion, and pricing they are exposed to and the things they buy. Behavior Scan- a scanner based research program that tracks the purchases of 3 k households through store scanners. Infos can- a scanner based sales tracking service for the consumer packaged goods industry.

Competitive intelligence- CI an intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors. ADV of CI- helps managers assess their competition and the vendors, which in turn means fewer surprises. Allows managers to predict changes in business relationships, identify marketplace opportunities, guard against threats, forecast a competitors strategy, discover new or potential competitors, learn from the success or failure of others, learn about new technology.