Chapter 1 - Understanding Marketing and the Marketing ProcessMarketing 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 ConceptsNeeds – 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 InformationNew Coke

The Importance of InformationCompanies need information about their:-

-

-

The Explosion of Marketing Information

Functions of a MIS: Developing InformationInternal Data –

Marketing Intelligence -

Marketing Research -

Sources of Information (Data) Internal sources of information:

External sources of information (Marketing Intelligence):

Marketing ResearchThe systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.

Marketing Research ProcessStep 1. Defining the Problem & Research Objectives Common Research MethodsMarketing 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 PlanResearch plan development follows these steps:

Determining Specific Information NeedsGathering Secondary information

Internal : inside the company’s databaseExternal : Sources outside the Firm

Planning Primary Data Collection

Develop the Research Plan Gathering Secondary InformationSecondary 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

- 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 CollectionResearch Instruments

Presenting the Research Plan Summarize the plan in a written proposal and cover:

Marketing Research Process - Step 3. Implementing the Research PlanCollecting the Data -

Processing the Data -

Analyzing the Data -

Marketing Research Process - Step 4. Interpreting & Reporting FindingsResearcher 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 ResearchCommon examples of unethical research practices:1. Deception2. Invasion of privacy3. Reporting faulty conclusions4. Disguising sales efforts as marketing research

Chapter 5 – Consumer Markets and Buyer BehaviorHarley 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 StimuliMarketing

Other

Buyer’s Black Box Buyer Responses

Factors Influencing CB (Fig. 5.2)

Factors Affecting CB: CultureCulture – the set of basic values, perceptions, wants, and behaviors learned by a member of society from family

and other important institutions

Factors Affecting CB: CultureMajor 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

Factors Affecting CB: Psychological Maslow’s Hierarchy of Needs (Fig. 5.4)

Personal Influences

Lifestyle Identification Influences

Activities Interests Opinions

Age and Life Cycle Stage

Occupation Economic Situation

Personality and Self-concept

Buyer Decision Process (Fig. 5.6)Step 1. Need RecognitionDesired State - Actual State -

Step 2. Information SearchTypes of Information SearchInternal - 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 Information1.

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 DecisionStep 5. Postpurchase Behavior

Stages in the Adoption ProcessAwareness: 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 productAdopter Categories (Fig. 5.7)

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 MarketsMarketing Structure and Demand

Types of Decisions and the Decision Process

Model of Business Buyer Behavior (Fig. 6.1)The EnvironmentMarketing Stimuli:•Product•Price•Place•PromotionOther Stimuli:•Economic•Technological•Political•Cultural•Competitive

The Buying OrganizationThe buying centerBuying decision process(Interpersonal & individual influences)(Organizational Influences)

Buyer ResponsesProduct or service choiceSupplier ChoiceOrder QuantitiesDelivery terms and timesService terms Payment

Business vs. Consumer Behavior

Major Types of Buying Situations New Task Buying

Modified Rebuy

Straight Rebuy

Participants in the Business Buying Process

Business Buying on the Internet Business buyers may purchase electronically by:

Connecting to customers to: