Download Understanding Marketing and the Marketing Process

Chapter 1 - Understanding Marketing and the Marketing Process
Marketing Activities
What is Marketing?
Marketing is a social and managerial process whereby individuals and groups obtain what they need and
want through creating and exchanging products and value with others.
Core Marketing Concepts
Needs – states of felt deprivation
Wants – human needs shaped by culture and individual personality
Demands – Human wants backed by buying power
Product - any good, service, or idea that satisfies a need or want and can be offered in an exchange
Good - a tangible object - can be seen and touched when used
Service - an intangible product - involves human or mechanical effort
Idea - a philosophy, concept, or image
Customer Value – the difference between the values the customer gains from owning and using a
product and the costs of obtaining it.
Customer Satisfaction – the extent to which a product’s perceived performance matches a buyer’s
expectations
Quality – Freedom from defects
Exchange – The act of obtaining a desired object from someone by offering something in return
Transaction – A trade between two parties that involves at least two things of value, agreed upon
conditions, a time of agreement, and a place of agreement.
Relationship Marketing - the process of creating, maintaining and enhancing strong value-laden
relationships with customers and other stakeholders.
Who Purchases Products and Services?
Market – Buyers who share a particular need or want that can be satisfied through exchange or
relationships
Modern Marketing System (Fig. 1-3)
Marketing Management Philosophies
Societal Marketing Concept
Societal
Marketing
Concept
Chapter 4 - Marketing Research and Marketing Information
New Coke
The Importance of Information
Companies need information about their:
-
-
The Explosion of Marketing Information
Functions of a MIS: Developing Information
Internal Data –
Marketing Intelligence -
Marketing Research -
Sources of Information (Data)
 Internal sources of information:

External sources of information (Marketing Intelligence):
Marketing Research
The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an
organization.
Marketing Research Process
Step 1. Defining the Problem & Research Objectives Common Research Methods
Marketing Research Methods
Exploratory research – Gathers preliminary information that will help define the problem and suggest
hypotheses.
Descriptive Research - Describes things as market potential for a product or the demographics and consumers’
attitudes.
Causal research - Test hypotheses about cause- and-effect relationships.
Step 2. Develop the Research Plan
Research plan development follows these steps:
Determining Specific Information Needs
Gathering Secondary information
Internal : inside the company’s database
External : Sources outside the Firm
Planning Primary Data Collection
Develop the Research Plan Gathering Secondary Information
Secondary Data: information that has been previously collected for some other purpose
 Advantages
 Disadvantages
Develop the Research Plan - Planning Primary Data Collection
Primary Data: data that must be collected from original sources for the specific purpose at hand
Observation
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The gathering of primary data by observing relevant people, actions and situations (Exploratory)
Survey Research
-
The gathering of primary data by asking people questions about their knowledge, attitudes, preferences, and
buying behavior (Descriptive)
Experimental Research
-
Using groups of people to determine cause-and-effect relationships (Causal)
Primary Data
 Advantages
 Disadvantages
Planning Primary Data Collection
Develop the Research Plan Planning Primary Data Collection - Table 4.3
Online as a Research Contact Method
Planning Primary Data Collection
Sampling Decisions
1
2
3
4
Sampling Units
 Sampling Unit a single element or group of elements subject to selection in the sample
Simple Random Sampling a sampling procedure that assures each element in the population of an equal chance of
being included in the sample
Stratified Sampling a probability sampling procedure in which simple random subsamples are drawn from
within each stratum that are more or less equal on some characteristic
Cluster Sampling an economically efficient sampling technique in which the population is divided into
mutually exclusive groups (such as neighborhood blocks), and the researcher draws a random sample of the
groups to interview
Convenience Sampling the sampling procedure of obtaining those people or units that are most conveniently
available.
Judgment (purposive) Sampling a nonprobability sampling technique in which an experienced researcher
selects the sample based on personal judgment about some appropriate characteristic of the sample member.
Develop the Research Plan - Planning Primary Data Collection
Research Instruments
Presenting the Research Plan
 Summarize the plan in a written proposal and cover:
Marketing Research Process - Step 3. Implementing the Research Plan
Collecting the Data -
Processing the Data -
Analyzing the Data -
Marketing Research Process - Step 4. Interpreting & Reporting Findings
Researcher Should Present Important Findings that are Useful in the Major Decisions Faced by Management.
Step 1
Step 2
Step 3
Online Report Delivery
Other Marketing Research - Considerations
Ethics In Marketing Research
Common examples of unethical research practices:
1. Deception
2. Invasion of privacy
3. Reporting faulty conclusions
4. Disguising sales efforts as marketing research
Chapter 5 – Consumer Markets and Buyer Behavior
Harley Davidson
Consumer Buying Behavior
• Consumer Buying Behavior refers to the buying behavior of final consumers -individuals & households who buy
goods and services for personal consumption.
Model of Buyer Behavior (Fig. 5.1)
Marketing & Other Stimuli
Marketing
Buyer’s Black Box
Buyer Responses
Other
Factors Influencing CB (Fig. 5.2)
Factors Affecting CB: Culture
Culture – the set of basic values, perceptions, wants, and behaviors learned by a member of society from family
and other important institutions
Factors Affecting CB: Culture
Major cultural shifts over the last 25 years:
Subcultural Influences
Subculture - Group of people with shared value systems based on common life experiences.
Social Class Influence
•
Social Class – relatively permanent and ordered divisions in a society whose members share similar values,
interests, and behaviors.
Factors Affecting Consumer Behavior: Social
Factors Affecting CB: Personal
Personal Influences
Age and Life
Cycle Stage
Occupation
Economic
Situation
Personality and
Self-concept
Lifestyle Identification
Influences
Activities
Factors Affecting CB: Psychological
Interests
Opinions
Maslow’s Hierarchy of Needs (Fig. 5.4)
Buyer Decision Process (Fig. 5.6)
Step 1. Need Recognition
Desired State -
Actual State -
Step 2. Information Search
Types of Information Search
Internal - the acquisition of information that is available in memory
External - the quest for information, relevant to the product, brand, or shopping behavior, not found in memory
Prepurchase Search - Information seeking to make a better purchase decision
Ongoing Search - Information search activities that are independent of needs or a purchase decision
Sources of Information
1.
2.
3.
4.
Step 3. Evaluation of Alternatives
Steps Between Evaluation of Alternatives and Purchase Decision
Step 4. Purchase Decision
•
Actual Purchase
•
Postpone Purchase
Purchase Decision
Step 5. Postpurchase Behavior
Stages in the Adoption Process
Awareness: Consumer is aware of product, but lacks information.
Interest: Consumer seeks Information about new product.
Evaluation: Consumer considers trying new product.
Trial : Consumer tries new product on a small scale
Adoption: Consumer decides to make regular use of product
Adopter Categories (Fig. 5.7)
Early Majority
Innovators
% of Adopters
Adopter Categories (Fig. 5.7)
Late Majority
Early
Adopters
34%
34%
Laggards
16%
2.5% 13.5%
Early
Time of Adoption
Late
Chapter 6 – Business Markets and Business Buyer Behavior
What is a Business Market?
A business market comprises all the organizations that buy goods and services for use in the production of other
products and services that are sold, rented, or supplied to others.
Characteristics of Business Markets
Marketing Structure and Demand





Types of Decisions and the Decision Process



Model of Business Buyer Behavior (Fig. 6.1)
The Environment
The Buying Organization
Buyer Responses
Marketing Stimuli:
The buying center
Buying decision process
(Interpersonal & individual
influences)
(Organizational Influences)
Product or service choice
Supplier Choice
Order Quantities
Delivery terms and times
Service terms Payment
•Product
•Price
•Place
•Promotion
Other Stimuli:
•Economic
•Technological
•Political
•Cultural
•Competitive
Business vs. Consumer Behavior
Major Types of Buying Situations

New Task Buying

Modified Rebuy

Straight Rebuy
Participants in the Business Buying Process
Major Influences on Business
Buyer Behavior (Fig. 6.2)
The Business Buying Process
Environmental
Economic
developments
Supply
Conditions
Technological
change
Political and regulatory
developments
Organizational
Objectives
Policies
Procedures
Stage 1. Problem Recognition
Interpersonal
Authority
Status
Organizational
Structure
Empathy
Systems
Persuasiveness
Stage 2. General Need Description
Individual
Age
Education
Job Position
Personality
Risk Attitudes
Buyers
Competitive
Developments
Culture and customs
Business Buying on the Internet
 Business buyers may purchase electronically by:

Connecting to customers to:
Stage 3. Product Specification
Stage 4. Supplier Search
Stage 5. Proposal Solicitation
Stage 6. Supplier Selection
Stage 7. Order-Routine Specification
Stage 8. Performance Review