Marketing Module 2

1. MarketingModule 2 Mark Lieberman Foundations of Business Practice 2

2. A marketing information system (MIS) consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. A marketing intelligence system is a set of procedures and sources used by managers to obtain everyday information about developments in the marketing environment.

3. Sheds light on problem - • suggest solutions or • new ideas. • Ascertain magnitudes. • Test cause- and-effect • relationships. • Tests hypotheses about cause- • and-effect relationships. Defining the Problem & Research Objectives Exploratory Research Descriptive Research Causal Research

4. Observational Focus-group Survey Behavioral Experimental Research Approaches

5. Secondary-Data Sources • Internal Sources • Government Publications • Periodicals and Books • Commercial Data • On-Line • Associations • Business Information

6. The Marketing Research Process Define problem and research objectives Develop research plan Collect information Present findings Analyze information

7. World Space level U.S.A. Region Territory Customer All sales Industry sales Product level Company sales Product line sales Productform sales Productitem sales Short run Medium run Long run Time level Ninety Types of Demand Measurement (6 x 5 x 3)

8. Estimating Current Demand Total market potential Area market potential Industrysales Marketshare

9. Estimating Future Demand Survey of buyers’ intentions Expert opinion Composite of sales force opinion Past sales analysis Market test method

10. Demographic Environment Worldwide Population Growth Population Age Mix Ethnic Markets Educational Groups Household Patterns Geographical Shifts in Population Shift from Mass Market to Micromarkets

11. Other Environments • Economic & Natural • Technological • Political – legal • Socio - cultural

12. Organism Response Simple Response Model Stimulus

13. Buyer’s characteristics Cultural Social Personal Psychological Buyer’s decision process Problem recognition Information search Evaluation Decision Postpurchase behavior Marketing stimuli Product Price Place Promotion Other stimuli Economic Technological Political Cultural Buyer’s decisions Product choice Brand choice Dealer choice Purchase timing Purchase amount Model of Buying Behavior

14. Culture Subculture Social Class Cultural Factors Buyer

15. Social Factors Reference Groups Family Roles & Statuses

16. Personal Influences Age and Family Life Cycle Stage Lifestyle Personality & Self-Concept Occupation & Economic Circumstances Influences on Consumer Behavior

17. Psychological Factors Motivation Perception Beliefs & Attitudes Learning

18. Self- actualization (self-development and realization) 5 Esteem needs (self-esteem, recognition) 4 Social needs (sense of belonging, love) 3 Safety needs (security, protection) 2 Psychological needs (food, water, shelter) 1 Maslow’s Hierarchy of Needs

19. Significant differences between brands Few differences between brands Four Types of Buying Behavior Complex Buying Behavior Variety- Seeking Behavior High Involvement Low Involvement Dissonance- Reducing Buying Behavior Habitual Buying Behavior

20. Consumer BuyingProcess Problem recognition Information search Evaluation of alternatives Postpurchase behavior Purchase decision

21. To be (re)sold Give it away Rent it Get rid of it temporarily Loan it To be used Trade it Get rid of it permanently Direct to consumer Sell it Use for original purpose Through middleman Keepit Convert to new purpose Throw it away To intermediary Store it How Customers Use orDispose of Products Product

22. Business vs. Consumer Markets • Fewer buyers • Larger buyers • Close supplier-customer relationship • Geographically concentrated • Derived demand • Inelastic demand • Fluctuating demand

23. Business vs. Consumer Markets • Professional purchasing • Multiple buying influences • Multiple sales calls • Direct purchasing • Reciprocity • Leasing

24. Custom furniture Installed components Buildings Weapon systems New Task Buying Modified Rebuy • Involved Decision Making Straight Rebuy New vehicles Elec. Equip Consultants Computer equip. Utilities Office Supplies Bulk chemicals

25. Participants in the Business Buying Process Users Initiators Influencers Gatekeepers Buyers Deciders Approvers

26. Level of • demand • Economic • outlook • Interest rate • Rate of techno- • logical change • Political and • regulatory • developments • Competitive • developments • Social responsi- • bility concerns Environmental • Objectives • Policies • Procedures • Organizational • structures • Systems Organizational • Interests • Authority • Status • Empathy • Persuasive- • ness Interpersonal • Age • Income • Education • Job position • Personality • Risk attitudes • Culture Individual Major Influences on Industrial Buying Behavior Business Buyer

27. Organizational Factors Purchasing- Department Upgrading Cross- Functional Roles Centralized Purchasing Decentralized Purchasing of Small Ticket Items Internet Purchasing Long-Term Contracts Purchasing- Performance Evaluation & Pro. Buyers Lean Production

28. Purchasing-Procurement Process Problem recognition Need recognition General need description Product specification Info search and eval. Supplier search Proposal solicitation Purchase Supplier selection Order routine specification Post Purchase Performance review

29. There is nothing more exhilarating than to be shot at without result. Winston Churchill