MKT 333 Flashcards
chapter 1
Definition of Marketing
Engaging customers and managing profitable customer relationships
Satisfying customer needs
• “The aim of marketing is to make selling unnecessary” Peter Drucker
• Process by which companies engage customers, build strong
customer relationships, and create customer value in order to capture
value from customers in return
The Marketing Process
- Understand the
Customer wants
and needs - Design Customer
Value-driven
Strategy - Design Integrated
Marketing
Program - Engage Customers,
Build Profitable
relationships - Capture Value to
Create profits and
Customer Equity
Understanding Customer Needs and
Wants
• 1) Needs: physical (hunger, safety, warmth), social (belonging,
affection), individual (self-expression, knowledge)
• Wants – needs shaped by culture, groups and personality
• Coca-Cola spends about $1B every year on research
• 2)Market offerings-a combination of products, services, information,
or experiences to satisfy customer wants
• 3) Customer value and satisfaction
• 4) Exchanges and relationships
• 5) Markets: suppliers, competitors
Designing Customer Value-Driven
Strategy
• Selecting customers (market segmentation, targeting)
• Can’t be all things to all people
• Value proposition – set of benefits for customers (positioning relative
to competitors)
Management Orientations
• Production concept – production and distribution efficiency
• Product concept – “better mousetrap”
• Selling concept – make-and-sell, find customer for products, inside
out
• Marketing concept – sense-and respond, find products for customers,
outside in
• Societal marketing concept – customers satisfaction, company profits,
society’s well-being
Managing Customer Relationships
• Customer relationship management – process of building and
maintaining profitable customer relationships
• Value = benefits –costs
• Perceived value
• Customer Satisfaction = Performance – expectations
• Customer delight -> evangelism
• Frequency marketing programs
• Levels
Engaging Customers
• Mass media • Social media • Customer-engagement marketing • Consumer generated marketing
Capturing Value from Customers
- Customer loyalty and retention
- Customer lifetime value (CLV)
- Starbucks - $14,000 Lexus -$600,000
- Share of customer, cross-selling, up-selling
- Customer equity – sum of all CLVs
- Customer equity vs. market share
chapter 2
Learning Objectives
- Understand the link b/w marketing function and the rest of the firm
- Learn about portfolio analysis and BCG growth share matrix
- Comprehend the purpose of SWOT analysis
- Distinguish among four types of marketing strategies in the productmarket expansion grid
- Learn about marketing mix elements
Strategic Planning-Corporate Level
• Process of developing fit b/w firm’s goals and changing business
environment
• Defining mission->Setting objectives and goals->Designing/reviewing
business portfolio->Planning marketing and other functional
strategies
Company and Marketing Strategy
• Mission statement needs to be market oriented
• “The mission of The Walt Disney Company is to be one of the world’s
leading producers and providers of entertainment and information.”
• “Our mission is to inspire and nurture the human spirit – one person,
one cup, and one neighborhood at a time.”
• Business portfolio – collection of businesses (SBUs) that make up a
company
• Analysis of business portfolio
Portfolio Analysis: BCG growth-share
matrix
the growth share matrix (x: relative market share— cash generation, y: market growth rate—–cash usage)
BCG matrix of nestle CO.LTD
curious
SWOT
easy
product market expansion Grid
market penetration strategy: current products, current markets
market development strategy: current products, new markets
product development strategy: new product, current markets
diversification strategy: new product, new market
market mix
target customer
4 p’s
product: variety, quality, design, brand name, features
price: list price, discounts, allowances, payment period
place: channels, coverage, assortments, location
promotion: advertising, sales promotion, public relation
Chapter 3 Analyzing the Marketing Environment
Learning Objectives
- Distinguish between microenvironment and macroenvironment
- Understand 6 elements of microenvironment
- Learn about demographic and economic trends
- Understand natural and technological trends
- Comprehend trends in political and cultural environment
- Distinguish among 6 elements of macroenvironment
Microenvironment
- Company, other departments
- Suppliers, e.g. Honda 14,430 suppliers in 34 states
- Marketing intermediaries, e.g. Coca-Cola and retailers
- Competitors, e.g. Burger King and McDonalds
- Publics, e.g. general public, consumer activists
- Customers, e.g. consumer vs. business
Macroenvironment-demog
- Baby Boomers, 78M WW2-1964, 70% of disposable income
- Generation X, 49M 1961-1976, skeptical of ads
- Millennials (Gen Y), 83M, 1977-2000, technologically savvy
- Generation Z, 72M, after 2000, digital in DNA
- Family composition changes
- Geographic shifts
- Increased ethnic diversity
Macroenvironment-economic
- Economic cycles
* Income distribution
Macroenvironment-Natural
- Weather
* Environmental Sustainability
Macroenvironment-Technological
。
Macroenvironment-political
- Government laws and regulations
- Level playing field, protect consumers and environment
- Affordable Care Act (ACA), Dodd-Frank
- Regulation-deregulation
- More socially responsible behavior
Macroenvironment-Cultural
- Values and beliefs shared by a group of people
- Core beliefs vs. secondary beliefs
- Waves of patriotism
- Religion -> spirituality
Chapter 4 Managing Marketing Information
Learning Objectives
• Understand the purpose of marketing research and idea of marketing
information system
• Distinguish among three different types of research
• Be able to distinguish among the four stages of marketing research
• Learn about the research plan stage of marketing research
• Understand the trends and issues in marketing research
Collecting Customer Insights
Marketing information system (MIS)
- Marketing research
- Big data
- Internal databases
- Competitive intelligence
- Social media
Marketing Research
• Systematic design, collection and analysis of data relevant for a
marketing decision
• Exploratory research – preliminary data collection to define problem
or hypotheses
• Descriptive research – to describe a situation in terms of customer
attitude
• Causal research – to test cause and effect relationships
Defining the Problem and Research Objectives
• “Formulation of a problem is more essential than its solution”
• Hardest stage of marketing research
• Research objectives – goals for conducting research
• E.g. Gather information about general attitudes of customers towards
our company
• How do customers view our brand in general?
Developing the Research Plan
- A written plan of conducting marketing research
- Secondary data vs. primary data
- Choice of method:
- Observation (Ethnographic, Netnography)
- Survey (Why?)
- Experiment (cause and effect)
- Contacting respondents
- Mail, phone, personal, online
- Specify sampling plan
- Sample size, probability vs. non-probability, unit
Marketing Research Process
• Implementing the Research Plan
• Actually following through with the research plan and collecting data, making
changes, if necessary
• Analyzing the data gathered
• Charts, graphs, statistical analysis
• Interpreting and reporting the findings
• Making meaningful, practical recommendations for action
defining the problems and setting the research objectives —– developing research plan ——- implementing the research plan —– interpreting and reporting the finding
Trends and Issues in Marketing
Research
- Customer relationship management (CRM)
- Big data and marketing analytics
- Cost is a big consideration, small firms
- International research has additional challenges
- Ethics of Research
- Privacy
- Misuse of research in false advertising
textbook
chapter 1 Creating and Capturing Customer Value
What Is Marketing?
marketing, more than any other business function, deals with customers. Although we will soon explore more-detailed definitions of marketing, perhaps the simplest definition is thisone: Marketing is managing profitable customer relationships. The twofold goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction.
Marketing
The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
Marketing
The Marketing Process
- Understand the marketplace and customer needs and wants
- Design a customer-driven marketing strategy
- Construct an integrated marketing program that delivers superior value
- Build profitable relationships and create customer delight
- Capture value from customers to create profits and customer equity
Needs
States of felt deprivation
感到被剥夺的状态
Human needs are states of felt deprivation. They include basic physical needs for food, clothing, warmth, and safety;
social needs for belonging and affection; and individual needs for knowledge and self-expression. Marketers did not create these needs; they are a basic part of the human makeup.
wants
The form human needs take as they are shaped by culture and individual personality.
Wants are the form human needs take as they are shaped by culture and individual personality. An American needs food but wants a Big Mac, french fries, and a soft drink. A person in Papua, New Guinea, needs food but wants taro, rice, yams, and pork. Wants are shaped by one’s society and are described in terms of objects that will satisfy those needs.
Demands
Human wants that are backed up by buying power.
When backed by buying power, wants become demands . Given their wants and resources, people demand products with benefits that add up to the most value and satisfaction.
Market offerings
Some combination of products, services, information, or experiences offered to a market to satisfy a need or want.
Market offerings are not limited to physical products. They also include services —activities or benefi ts offered for sale that are essentially intangible and do not result in the ownership of anything. Examples include banking, airline, hotel, retailing, and home repair services.
Marketing myopia
he mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products.
They are so taken with their products that they focus only on existing wants and lose sight of underlying customer needs. 7 They forget that a product is only a tool to solve a consumer problem. A manufacturer of quarter-inch drill bits may think that the customer needs a drill bit. But what the customer really needs is a quarter-inch hole. These sellers will have trouble if a new product comes along that serves the customer’s need better or less expensively. The customer will have the same need but will want the new product.
Exchange
The act of obtaining a desired object from someone by offering something in return.
Market
The set of all actual and potential buyers of a product or service.
Marketing management
The art and science of choosing target markets and building profitable relationships with them
Production concept
The idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency.
Product concept
The idea that consumers will favor products that offer the most quality, performance, and features; therefore, the organization should devote its energy to making continuous product improvements.
Selling concept
The idea that consumers will not buy enough of the firm’s products unless the firm undertakes a large-scale selling and promotion effort.
The selling concept is typically practiced with unsought goods—those that buyers do not normally think of buying, such as insurance or blood donations.
push strategy
Marketing concept
A philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.
Under the marketing concept, customer focus and value are the paths to sales and profits. Instead of a product-centered make and sell philosophy, the marketing concept is a customer-centered sense and respond philosophy. The job is not to fi nd the right customers for your product but to fi nd the right products for your customers.
pull strategy
Societal marketing concept
The idea that a company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests.
the societal marketing concept questions whether the pure marketing concept overlooks possible conflicts between consumer short-run wants and consumer long-run welfare
It calls for sustainable marketing , socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs.
Customer relationship management
The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
Customer-perceived value
The customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.
Customer Value
Attracting and retaining customers can be a difficult task. Customers often face a bewildering （扑朔迷离）array of products and services from which to choose. A customer buys from the firm that offers the highest customer-perceived value —the customer’s evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers. Importantly, customers often do not judge values and costs “accurately” or “objectively.” They act on perceived value.
Customer satisfaction
The extent to which a product’s perceived performance matches a buyer’s expectations
Interactive Customer Relationships
N ew technologies have profoundly changed the ways in which people relate to one another. New tools for relating include everything from e-mail, Web sites, blogs, cell phones, and video sharing to online communities and social networks, such as Facebook, YouTube, and Twitter. T
Customer-managed relationships
Marketing relationships in which customers, empowered by today’s new digital technologies, interact with companies and with each other to shape their relationships with brands.
Consumer-generated marketing
Brand exchanges created by consumers themselves—both invited and uninvited—by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers.
Partner relationship management
Working closely with partners in other company departments and outside the company to jointly bring greater value to customers.
Marketing
Customer lifetime value
The value of the entire stream of purchases a customer makes over a lifetime of patronage.
Share of customer
The portion of the customer’s purchasing that a company gets in its product categories.
Customer equity
The total combined customer lifetime values of all of the company’s customers.
page 52
customer relationship group
Strangers show low potential profitability and little projected loyalty
Butterflies are potentially profitable but not loyal
True friends are both profitable and loyal.
Barnacles are highly loyal but not very profi table.
Internet
A vast public web of computer networks that connects users of all types all around the world to each other and to an amazingly large information repository.
chapter 2 company and marketing strategy partnering to build customer relationship
strategic planning
the process of developing and maintaining a strategic fi t between the organization’s goals and capabilities and its changing marketing opportunities
Mission statement
A statement of the organization’s purpose—what it wants to accomplish in the larger environment.
Marketing
Business portfolio
The collection of businesses and products that make up the company. The best business portfolio is the one that best fits the company’s strengths and weaknesses to opportunities in the environment.
Portfolio analysis
The process by which management evaluates the products and businesses that make up the company.
The major activity in strategic planning is business portfolio analysis , whereby management evaluates the products and businesses that make up the company.
Growth-share matrix
page 73
A portfolio-planning method that evaluates a company’s SBUs in terms of its market growth rate and relative market share.
Marketing
The growth-share matrix defi nes four types of SBUs:
- Stars. S tars are high-growth, high-share businesses or products. They often need heavy investments to fi nance their rapid growth. Eventually their growth will slow down, and they will turn into cash cows. 2. Cash cows. Cash cows are low-growth, high-share businesses or products. These established and successful SBUs need less investment to hold their market share. Thus, they produce a lot of the cash that the company uses to pay its bills and support other SBUs that need investment. 3. Question marks. Question marks are low-share business units in high-growth markets. They require a lot of cash to hold their share, let alone increase it. Management has to think hard about which question marks it should try to build into stars and which should be phased out. 4. Dogs. Dogs are low-growth, low-share businesses and products. They may generate enough cash to maintain themselves but do not promise to be large sources of cash
Product/market expansion grid
A portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversifi cation.
Market penetration
Company growth by increasing sales of current products to current market segments without changing the product.
For example, Under Armour offers an ever-increasing range of styles and colors in its original apparel lines. It recently boosted its promotion spending in an effort to drive home its “performance and authenticity” positioning. The company also added direct-to-consumer distribution channels, including its own retail stores, Web site, and toll-free call center. Direct-to-consumer sales grew almost 60 percent last year and now account for more than 23 percent of total revenues.
Market development
Company growth by identifying and developing new market segments for current company products
For instance, the company recently stepped up its emphasis on women consumers and predicts that its women’s apparel business will someday be larger than its men’s apparel business. The Under Armour “Athletes Run” advertising campaign includes a 30-second “women’s only” spot. Under Armour could also pursue new geographical markets . For example, the brand has announced its intentions to expand internationally.
Product development
Company growth by offering modifi ed or new products to current market segments.
For example, after years of pitting cotton as the enemy of its sweat-absorbing synthetic materials, Under Armour recently introduced its own cotton-based line. Recognizing that many consumers simply like the feel of cotton and wear it in casual settings, the company wants a piece of the 80 percent of the active apparel market captured by cotton products. Under Armour claims that its own blend—called Charged Cotton—dries fi ve times faster than normal cotton. “Mother nature made it,” claims one ad. “We made it better.”
Diversification
Company growth through starting up or acquiring businesses outside the company’s current products and markets
For example, it could move into nonperformance leisurewear or begin making and marketing Under Armour fi tness equipment. When diversifying, companies must be careful not to overextend their brands’ positioning.
Value chain
The series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a fi rm’s products.
page 77
Value delivery network
The network made up of the company, its suppliers, its distributors, and, ultimately, its customers who partner with each other to improve the performance of the entire system
page78
Marketing strategy
The marketing logic by which the company hopes to create customer value and achieve profi table customer relationships.
Market segmentation
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs.
Market segment
A group of consumers who respond in a similar way to a given set of marketing efforts.
Market targeting
The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.
For example, Ferrari sells only 1,500 of its very high-p erformance cars in the United States each year but at very high prices—from an eye-opening $255,000 for its Ferrari 458 Italia to an astonishing more than $2 million for its FXX super sports car, which can be driven only on race tracks (it usually sells 10 in the United States each year). Most nichers aren’t quite so exotic. White Wave, the maker of Silk Soymilk, has found its niche as the nation’s largest soy milk producer. And profi table low-cost airline Allegiant Air avoids direct competition with major airline rivals by targeting smaller, neglected markets and new fl yers. Nicher Allegiant “goes where they ain’t” (see Marketing at Work 2.2 ).
Positioning
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
Differentiation
Actually differentiating the market offering to create superior customer value.
Marketing mix
The set of tactical marketing tools— product, price, place, and promotion— that the fi rm blends to produce the response it wants in the target market.
Product
Product means the goods-and-services combination the company offers to the target market. Thus, a Ford Escape consists of nuts and bolts, spark plugs, pistons, headlights, and thousands of other parts. Ford offers several Escape models and dozens of optional features. The car comes fully serviced and with a comprehensive warranty that is as much a part of the product as the tailpipe.
Price
Price is the amount of money customers must pay to obtain the product. For example, Ford calculates suggested retail prices that its dealers might charge for each Escape. But Ford dealers rarely charge the full sticker price. Instead, they negotiate the price with each customer, offering discounts, trade-in allowances, and credit terms. These actions adjust prices for the current competitive and economic situations and bring them into line with the buyer’s perception of the car’s value.
Place
Place includes company activities that make the product available to target consumers. Ford partners with a large body of independently owned dealerships that sell the company’s many different models. Ford selects its dealers carefully and strongly supports them. The dealers keep an inventory of Ford automobiles, demonstrate them to potential buyers, negotiate prices, close sales, and service the cars after the sale.
Promotion
Promotion refers to activities that communicate the merits of the product and persuade target customers to buy it. Ford spends more than $1.5 billion each year on U.S. advertising to tell consumers about the company and its many products. 12 Dealership salespeople assist potential buyers and persuade them that Ford is the best car for them. Ford and its dealers offer special promotions—sales, cash rebates, and low fi nancing rates—as added purchase incentives.
Marketing implementation
Turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives
Marketing control
Measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved.
Return on marketing investment (or marketing ROI)
The net return from a marketing investment divided by the costs of the marketing investment.
Chapter 3 analyzing the marketing
Marketing environment
The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers.
Microenvironment
The actors close to the company that affect its ability to serve its customers—the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.
Macroenvironment
The larger societal forces that affect the microenvironment—demographic, economic, natural, technological, political, and cultural forces.
Marketing intermediaries
Firms that help the company to promote, sell, and distribute its goods to final buyers.
They include resellers, physical distribution fi rms, marketing services agencies, and fi nancial intermediaries. Resellers are distribution channel fi rms that help the company fi nd customers or make sales to them.
Public
Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives.
We can identify seven types of publics:
● Financial publics. This group infl uences the company’s ability to obtain funds. Banks, investment analysts, and stockholders are the major fi nancial publics.
● Media publics. T his group carries news, features, and editorial opinion. It includes newspapers, magazines, television stations, and blogs and other Internet media.
● Government publics. M anagement must take government developments into account. Marketers must often consult the company’s lawyers on issues of product safety, truth in advertising, and other matters. ● Citizen-action publics. A company’s marketing decisions may be questioned by consumer organizations, environmental groups, minority groups, and others. Its public relations department can help it stay in touch with consumer and citizen groups.
● Local publics. This group includes neighborhood residents and community organizations.
General public. A company needs to be concerned about the general public’s attitude toward its products and activities. The public’s image of the company affects its buying.
● Internal publics. T his group includes workers, managers, volunteers, and the board of directors. Large companies use newsletters and other means to inform and motivate their internal publics. When employees feel good about the companies they work for, this positive attitude spills over to the external publics.
Demography
The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.
Baby boomers
The 78 million people born during the years following World War II and lasting until 1964.
Generation X
The 49 million people born between 1965 and 1976 in the “birth dearth” following the baby boom.
Millennials (or Generation Y)
The 83 million children of the baby boomers born between 1977 and 2000.
Generational Marketing
D o marketers need to create separate products and marketing programs for each generation? Some experts warn that marketers need to be careful about turning off one generation each time they craft a product or message that appeals effectively to another. Others caution that each generation spans decades of time and many socioeconomic levels. For example, marketers often split the baby boomers into three smaller groups—leadingedge boomers, core boomers, and trailing-edge boomers—each with its own beliefs and behaviors. Similarly, they split the Millennials into teens and young adults.
Economic environment
Economic factors that affect consumer purchasing power and spending patterns.
Marketing
Natural environment
Natural resources that are needed as inputs by marketers or that are affected by marketing activities
Environmental sustainability
Developing strategies and practices that create a world economy that the planet can support indefi nitely.
Technological environment
Forces that create new technologies, creating new product and market opportunities.
Political environment
Laws, government agencies, and pressure groups that infl uence and limit various organizations and individuals in a given society.
Marketing
Socially Responsible Behavior.
Enlightened companies encourage their managers to look beyond what the regulatory system allows and simply “do the right thing.” These socially responsible fi rms actively seek out ways to protect the long-run interests of their consumers and the environment.
Cause-Related Marketing
To exercise their social responsibility and build more positive images, many companies are now linking themselves to worthwhile causes. These days, every product seems to be tied to some cause. Buy a pink mixer from KitchenAid and support breast cancer research. Purchase a special edition bottle of Dawn dishwashing detergent, and P&G will donate a dollar to help rescue and rehabilitate wildlife affected by oil spills. Go to Staples’ DoSomething101 Web site or Facebook page and fi ll a virtual backpack with essential school supplies needed by school children living in poverty. Pay for these purchases with the right charge card and you can support a local cultural arts group or help fi ght heart disease.
Cultural environment
Institutions and other forces that affect society’s basic values, perceptions, preferences, and behaviors
Chapter 4 managing marking information to gain customer insights page 124
Customer insights
Fresh understandings of customers and the marketplace derived from marketing information that becomes the basis for creating customer value and relationships.
Marketing information system (MIS)
People and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights.
Internal databases
Electronic collections of consumer and market information obtained from data sources within the company network.
Competitive marketing intelligence
The systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment.
Marketing research
The systematic design, collection, analysis, and reporting of data relevant to a specifi c marketing situation facing an organization.
Exploratory research
Marketing research used to gather preliminary information that will help defi ne problems and suggest hypotheses.
Descriptive research
Marketing research used to better describe marketing problems, situations, or markets.
such as the market potential for a product or the demographics and attitudes of consumers who buy the product.
Causal research
Marketing research used to test hypotheses about cause-and-effect relationships.
For example, would a 10 percent decrease in tuition at a private college result in an enrollment increase sufficient to offset the reduced tuition? Managers often start with exploratory research and later follow with descriptive or causal research.
Developing the Research Plan
Research objectives must be translated into specific information needs. For example, suppose that Red Bull wants to conduct research on how consumers would react to a proposed new vitamin-enhanced water drink that would be available in several flavors and sold under the Red Bull name.
The proposed research might call for the following specific information:
● T he demographic, economic, and lifestyle characteristics of c urrent Red Bull customers
● T he characteristics and usage patterns of the broader population of enhanced-water users: What do they need and expect from such products, where do they buy them, when and how do they use them, and what existing brands and price points are most popular?
● R etailer reactions to the proposed new product line: Would they stock and support it? Where would they display it?
● Forecasts of sales of both the new and current Red Bull products.
Secondary data
Information that already exists somewhere, having been collected for another purpose
Primary data
Information collected for the specific purpose at hand.
Observational research
Gathering primary data by observing relevant people, actions, and situations.
For example, Trader Joe’s might evaluate possible new store locations by checking traffic patterns, neighborhood conditions, and the locations of competing Whole Foods, Fresh Market, and other retail chains.
Ethnographic research
A form of observational research that involves sending trained observers to watch and interact with consumers in their “natural environments.”
Survey research
Gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior.
However, survey research also presents some problems. Sometimes people are unable to answer survey questions because they cannot remember or have never thought about what they do and why they do it. People may be unwilling to respond to unknown interviewers or about things they consider private. Respondents may answer survey questions even when they do not know the answer just to appear smarter or more informed. Or they may try to help the interviewer by giving pleasing answers
Experimental research
Gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses.
Marketing
Mail questionnaires
Mail questionnaires can be used to collect large amounts of information at a low cost per respondent. Respondents may give more honest answers to more personal questions on a mail questionnaire than to an unknown interviewer in person or over the phone. Also, no interviewer is involved to bias respondents’ answers.
However, mail questionnaires are not very fl exible; all respondents answer the same questions in a fi xed order.
Telephone interviewing
Telephone interviewing is one of the best methods for gathering information quickly, and it provides greater fl exibility than mail questionnaires. Interviewers can explain diffi cult questions and, depending on the answers they receive, skip some questions or probe on others. Response rates tend to be higher than with mail questionnaires, and interviewers can ask to speak to respondents with the desired characteristics or even by name.
Focus group interviewing
Personal interviewing that involves inviting six to ten people to gather for a few hours with a trained interviewer to talk about a product, service, or organization. The interviewer “focuses” the group discussion on important issues.
Marketing
Online marketing research
Collecting primary data online through Internet surveys, online focus groups, Web-based experiments, or tracking consumers’ online behavior.
Online focus groups
Gathering a small group of people online with a trained moderator to chat about a product, service, or organization and gain qualitative insights about consumer attitudes and behavior.
For example, online research fi rm Channel M2 “puts the human touch back into online research” by assembling focus group participants in people-friendly “virtual interview rooms.” At the appointed time, participants sign on via their webcam-equipped computer, view live video of other participants, and interact in real-time. Researchers can “sit in” on the focus group from anywhere, seeing and hearing every respondent. 1 5
Sample
A segment of the population selected for marketing research to represent the population as a whole
Designing the sample requires three decisions. First, who is to be studied (what sampling unit )?
Second,
how many people should be included (what sample size )? Large samples give more reliable results than small samples.
Finally, how should the people in the sample be chosen (what sampling procedure )?
Questionnaires.
The questionnaire is by far the most common instrument, whether administered in person, by phone, by e-mail, or online. Questionnaires are very fl exible—there are many ways to ask questions. Closed-end questions include all the possible answers, and subjects make choices among them. Examples include multiple-choice questions and scale questions. Open-end questions allow respondents to answer in their own words
Mechanical Instruments
Although questionnaires are the most common research instrument, researchers also use mechanical instruments to monitor consumer behavior. Nielsen Media Research attaches people meters to television sets, cable boxes, and satellite systems in selected homes to record who watches which programs. Retailers likewise use checkout scanners to record shoppers’ purchases. O ther mechanical devices measure subjects’ physical responses. For example, consider Disney Media Networks’ new consumer research lab in Austin, Texas
Customer relationship management (CRM)
Managing detailed information about individual customers and carefully managing customer touch points to maximize customer loyalty
CRM analysts develop data warehouses and use sophisticated data mining techniques to unearth the riches hidden in customer data. A data warehouse is a company-wide electronic database of fi nely detailed customer information that needs to be sifted through for gems. The purpose of a data warehouse is not only to gather information but also to pull it together into a central, accessible location. Then, once the data warehouse brings the data together, the company uses high-powered data mining techniques to sift through the mounds of data and dig out interesting fi ndings about customers.
chapter 5 understanding consumer and business buyer behavior page 158
Consumer buyer behavior
The buying behavior of fi nal consumers—individuals and households that buy goods and services for personal consumption.
Consumer market
All the individuals and households that buy or acquire goods and services for personal consumption
Culture
The set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions.
arketers are always trying to spot cultural shifts so as to discover new products that might be wanted. For example, the cultural shift toward greater concern about health and fi tness has created a huge industry for health-and-fi tness services, exercise equipment and clothing, organic foods, and a variety of diets.
Subculture
A group of people with shared value systems based on common life experiences and situations.
Each culture contains smaller subcultures , or groups of people with shared value systems based on common life experiences and situations. Subcultures include nationalities, religions, racial groups, and geographic regions.
Companies such as General Mills, P&G, Verizon, McDonald’s, Toyota, Walmart, and many others have developed special targeting efforts for this fast-growing consumer group. For example, General Mills targets Hispanics with its extensive Qué Rica Vida (What a Rich Life) marketing initiative, which communicates with Hispanic mothers about the benefi ts of General Mills products. The Qué Rica Vida Web site, magazine, and mobile apps offer Spanish-language recipes and a wealth of parenting, family health, lifestyle, and education information. General Mills also targets Hispanics with tailored ads for specifi c brands. For example, Hispanic advertising for Nature Valley, a popular brand with Hispanic consumers, depicts couples “savoring nature instead of conquering it.” Nature Valley sales grew 19 percent in Hispanic markets as a result of the brand’s more-targeted approach.
Social class
Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors
Group
Two or more people who interact to accomplish individual or mutual goals
Word-of-mouth influence
The impact of the personal words and recommendations of trusted friends, associates, and other consumers on buying behavior.
Opinion leader
A person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social infl uence on others.
Online social networks
Online social communities—blogs, social networking Web sites, and otheronline communities—where people socialize or exchange information and opinions.
Roles and Status
A person belongs to many groups—family, clubs, organizations, online communities. The person’s position in each group can be defi ned in terms of both role and status. A role consists of the activities people are expected to perform according to the people around them. Each role carries a status refl ecting the general esteem given to it by society.
Age and Life-Cycle Stage
People change the goods and services they buy over their lifetimes. Tastes in food, clothes, furniture, and recreation are often age related. Buying is also shaped by the stage of the family life cycle—the stages through which families might pass as they mature over time. Life-stage changes usually result from demographics and life-changing events—marriage, having children, purchasing a home, divorce, children going to college, changes in personal income, moving out of the house, and retirement. Marketers often defi ne their target markets in terms of life-cycle stage and develop appropriate products and marketing plans for each stage.
Lifestyle
A person’s pattern of living as expressed in his or her activities, interests, and opinions.
It involves measuring consumers’ major AIO dimensions—activities (work, hobbies, shopping, sports, social events), interests (food, fashion, family, recreation), and opinions (about themselves, social issues, business, products). Lifestyle captures something more than the person’s social class or personality. It profi les a person’s whole pattern of acting and interacting in the world.
For example, Triumph doesn’t just sell motorcycles; it sells an independent, “Go your own way” lifestyle. Similarly, HarleyDavidson tells customers to “grab life by the bars.” And watchmaker Breitling doesn’t sell just sturdy, accurate time pieces. It positions the brand as “instruments for professionals,” targeting people who identify with an active, adventurous, rugged lifestyle. One Breitling ad features an airline pilot who spends his spare time setting freediving records beneath the sea. “Whether he’s deep beneath the sea or high up in the air,” says the ad, “fi rmly strapped to his wrist is the new Breitling Superocean, an extreme watch cut out for great accomplishments.”
Personality and Self-Concept.
Each person’s distinct personality infl uences his or her buying behavior. Personality refers to the unique psychological characteristics that distinguish a person or group. Personality is usually described in terms of traits such as self-confi dence, dominance, sociability, autonomy, defensiveness, adaptability, and aggressiveness. Personality can be useful in analyzing consumer behavior for certain product or brand choices.
Personality
The unique psychological characteristics that distinguish a person or group.
Psychological Factors
person’s buying choices are further influenced by four major psychological factors: motivation, perception, learning, and beliefs and attitudes
Motive (drive)
A need that is sufficiently pressing to direct the person to seek satisfaction of the need.
Marketing
motivation research
the term motivation research refers to qualitative research designed to probe consumers’ hidden, subconscious motivations. Consumers often don’t know or can’t describe why they act as they do.
Perception
The process by which people select, organize, and interpret information to form a meaningful picture of the world
people can form different perceptions of the same stimulus because of three perceptual processes
selective attention, selective distortion, and selective retention
选择性注意，选择性失真和选择性保留
For example, people are exposed to an estimated 3,000 to 5,000 ad messages every day. It is impossible for a person to pay attention to all these stimuli. Selective attention —the tendency for people to screen out most of the information to which they are exposed—means that marketers must work especially hard to attract the consumer’s attention.
Learning
Changes in an individual’s behavior arising from experience.
A drive is a strong internal stimulus that calls for action. A drive becomes a motive when it is directed toward a particular stimulus object . For example, a person’s drive for self-actualization might motivate him or her to look into buying a camera.
Belief
A descriptive thought that a person holds about something.
Marketers are interested in the beliefs that people formulate about specifi c products and services because these beliefs make up product and brand images that affect buying behavior. If some of the beliefs are wrong and prevent purchase, the marketer will want to launch a campaign to correct them.
Attitude
A person’s consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea
Purchase Decision
in the evaluation stage, the consumer ranks brands and forms purchase intentions. Generally, the consumer’s purchase decision will be to buy the most preferred brand, but two factors can come between the purchase intention and the purchase decision . The first factor is the attitudes of others
Cognitive dissonance
Buyer discomfort caused by postpurchase conflict.
采购后冲突引起的买家不适。
After the purchase, consumers are satisfi ed with the benefi ts of the chosen brand and are glad to avoid the drawbacks of the brands not bought. However, every purchase involves compromise. So consumers feel uneasy about acquiring the drawbacks of the chosen brand and about losing the benefi ts of the brands not purchased. Thus, consumers feel at least some postpurchase dissonance for every purchase
New product
A good, service, or idea that is perceived by some potential customers as new.
Adoption process
The mental process through which an individual passes from first hearing about an innovation to final adoption.
Individual Differences in Innovativeness
people differ greatly in their readiness to try new products. In each product area, there are “consumption pioneers” and early adopters. Other individuals adopt new products much later.
The five adopter groups have differing values
Innovators are venturesome—they try new ideas at some risk.
Early adopters are guided by respect—they are opinion leaders in their communities and adopt new ideas early but carefully.
The early majority is deliberate— although they rarely are leaders, they adopt new ideas before the average person.
The late majority is skeptical—they adopt an innovation only after a majority of people havetried it.
Finally, laggards are tradition bound—they are suspicious of changes and adopt the innovation only when it has become something of a tradition itself.
