Kelly Josh Business Marketing Homework- Ch. 6,7,8,9 Ch. 6 1. Marketing Research is the process of collecting and analyzing information in order to solve marketing problems. This is important because after doing this, businesses will be informed about what their customers want and need. This information may show certain aspects of their customers such as their attitudes towards buying and what they are buying. 2. The five steps in the marketing research process are: a) Locating and defining issues or problems. This is important because it helps the organization focus on certain situations so they are able to define and refine problems. b) Designing the research project. Is just when a company or organization collects data about certain issues. One part of this is exploratory research, which is just exploring certain aspects about a problem. c) Collecting data. This can be two things, either Primary or Secondary data. The first part which is Primary Data is collected directly from customers or other correspondents. The second which is Secondary Data is from and outside organization. Data can be achieved from surveying, and observing among many other things. d) Interpreting research findings. This is the step when they take all of the data collected and they begin to review and sort all of the information that was received from Primary or Secondary data in the "Collecting Data" phase. e) Last but not least is reporting research findings. In this stage the organization or group takes all of the data that they have received and they then write all of the data down on a document or any other device. In this step they take only the most important of the data and add it. In this document there can be summaries about the information
collected and recommendations of how they believe the issue should be addressed.
7. One way to encourage respondents to cooperate in mail a survey is to simply enough just gives away "comps" to people who take the survey. If a company adds on their survey if a consumer takes the survey, and mails it back to the organization, the organization will then give a 10% off coupon good for anything in the store. This would then make the people want to take the questioner because they can get 10% and save money. If they go and spend 1,000$ they will get 100$ off the purchase, and anytime money is saved that is good.
Ch 7
1. An example of a group that might be unsatisfied with their product needs. This group could be people let's say who want to buy a Mercedes Benz. My family can be an example of this. My dad went car shopping for a Mercedes Benz S550 the other day. The reason he was unsatisfied is because in upstate New York there are not very many Mercedes dealers who even have that sedan because it is rather high end. Luckily, we own a house in Fort Lauderdale, Florida and he knows a good dealership down there. If there were better dealerships around here he would not be unsatisfied. So, right now he is at our winter house in Ft. Lauderdale, at Mercedes Benz of Ft Lauderdale which luckily, is only 30 minutes from the house. If my dad didn't have the job he did, and we were unable to afford a second house, he probably would not have even thought of buying a S550 because he would have had to drive to New York City, just to find the car he wants to buy. Therefore, a group unsatisfied around Upstate New York would be any person who is in the market for a high end car. 4 & 6 (combined) Market Segmentation involves breaking a market into segments and then concentrating your marketing efforts on one or a few key segments which is a company's Target Market.
One firm that could use Market Segmentation is a Cigar Shop. A cigar shop will not want to open in a small town where there is a very low income because a single cigar price can start at 3$ and go all the way up to 50$ for one cigar. Another group would be a Liquor Store. A liquor store will not want to open in a town like Tyler, Texas where it is dry and people cannot drink alcohol at all, or even in a religious town where people don't drink on the weekend or something like that. Four common ways that a business characterizes their segmentation is: a) Geographic Segmentation, which is based on location such as ones home or work address. b) Demographic Segmentation, which is based on measurable statistics, such as a person age, religion, political affiliation or income. c) Psychographic Segmentation, which is based on a consumer's lifestyle preference, such as a pet lover, or cigar smoker. d) Behaviorist Segmentation- Deal with if a person is Brand Loyal or not. This all helps a business to know what to sell and when a good time to sell their product is. If you live in Geneva, New York for example, you will have a higher demand for winter clothing such as jackets, gloves and hats, than Ft. Lauderdale, Florida which has a very low demand for the clothing because in the winter months is barley goes below 6570 unlike New York where the temperatures in winter can reach well below zero with a lot of snow and wind. In Demographic, an abortion clinic might now want to open up in a highly religious town that has very strong morals in Non-Abortion practices.
12. Sales Forecast is an estimate of the dollar or unit sales for a specified future period under a proposed marketing plan or program. The sales forecast is very important because it will help tell a business how much of a certain product to buy. If they have a very low sales forecast for a certain item, they will not want to buy a lot of that item because their will be a lost of profit because the item will most likely not sell as needed.
Ch 8
* Cognitive Dissonance is a state of psychological discomfort arising when a consumer tries to reconcile two conflicting states of mind, for example, the positive feeling of having chosen to buy a product and the negative feeling of being disappointed with its quality afterwards. 2. Problem Solving Process: Parts of this process are the level of involvement which is an individual's intensity of interest in a product and the importance of the product to that Routinized person. Response Behavior is a type of consumer problem solving which is used when buying a frequently purchase, low-cost item that requires very little searchand-decision effort. Limited problem solving is another concept in this. This is a type of consumer problem solving process that buyers use when purchasing products occasionally or when they need information about an unfamiliar brand in a familiar product category. Extended Problem Solving play another part in this. Extended Problem Solving is a type of consumer problem solving process that is employed when purchasing, unfamiliar, expensive or infrequently bought products. 3. The Steps in the Consumer Buying-Selling Process are: a) Problem Recognition (awareness of need)--Difference between the desired state and the actual condition. Deficit in assortment of products. Hunger--Food. Hunger stimulates your need to eat. Can be stimulated by the marketer through product information--did not know you were deficient? An example of this would be if you see a commercial for a new pair of shoes stimulates you and you realize that you need a new pair of shoes. b) Information search--This is an internal search of memory. Next is an External search, this is used if more information is needed. Examples of External are: Friends and relatives (word of mouth) a successful information search leaves a buyer with possible alternatives. c) Evaluation of Alternatives--this helps to establish criteria for evaluation. It features the buyers' wants or does not want. If not satisfied with your choices then return to the search part. Example: Can you think of another restaurant? Look in
the yellow pages etc. Information from different sources may be treated differently. d) Purchase decision--Choose buying alternative, includes product, package, store, method of purchase etc. e) Purchase--the actual buying of a product. There is a time lapse between this and the Purchase decision phase. f) Post-Purchase Evaluation--outcome of purchase. Satisfaction or Dissatisfaction. *Cognitive Dissonance (have you made the right decision) this can be reduced by warranties, after sales communication etc. These stages are not always used. If a person is buying a product for very cheap. I.E: a pack of gum, they will not go through all of these steps, they will most likely just jump right into the purchase phase and buy the pack without really thinking about it. Also, if a person buys a product regularly they will not use all of these stages because they know the product outcome if they have purchased it before and they know alternates already so they will not use all of the steps. 11. Reference groups are people that affect you. It's almost as what they do, you do. Ex: If you're best friend plays a guitar. Then you will begin to play the guitar also. They influence behavior because what then tend to buy you will follow them in what they buy. Some of my own reference groups are my parents, friends, teachers, and other role models that I strive to be alike and look highly of.
Build-A-Bear 1. A situational influence of this would probably be the price and your child. If your child is going "GIVE ME A BEAR, GIVE ME A BEAR" yelling and screaming in the entire store, then a parent will most likely buy the bear just to keep their child from yelling. Also, if the parent is in a bad mood, they might say "no" to buying anything for their child from that store. 2. Learning plays a big role I believe. As the child is "building a bear" they are learning many things. They are improving their hand eye coordination and they are learning to work well with others because there are always a million people in the store.
3. There is a very high level of attachment to their projects. The child/customer is making a bear almost from scratch. They are taking this blank canvas and they turn it into their dream, anything they can imagine they can put on that bear and it will probably be the only bear like it in the world because it is personalized by the child. Ch 9
1. Identify businesses that use each: a) Government Market- My dad is Vice President of Leiner Health Products based in Los Angeles. They use this because they have to deal with the Food and Drug Administration (FDA) because they are a pharmaceutical company and the FDA has to approve all of their products and make sure they are safe for human consumption. b) Institutional Market- Finger Lakes Community College (FLCC) they buy things that a school will need such as books, desks, chairs, televisions, computers, etc. c) Reseller Market- COSTCO they buy things in large quantity and then they will sell the products with a small markup and they will then make a profit off of the items. d) Producer Market- A mining organization, they mine for the Gold and then they will sell it to the company who will make the gold into jewelry and other gold uses. 4. One characteristic is business who deal with another business will buy more of an item than a consumer will ever. A business could say they want 400million dollars worth of capsules to but a drug in, meanwhile the odds of a consumer needing that many empty capsules will be slim to none. Another will be the way a business does business with another. They will be able to have more negotiations and also they will be able to maybe offer a lower price because they can set a contract to do business with that company in the future (Consumers are never offered a contract like this).
5. Methods of business buying: a) Description- Describe what you want. b) Inspection- See if it works.
c) Sampling- Random group (sample) Checking specifications. d) Negotiations- Haggle price; anything can be haggled. Ex: I will pay your price, if you pay full shipping costs. 6. Businesses involved in a straight re-buy purchase require less information because they have purchased the same item in the past. They already know the quality and the specs of the item. The seller knows exactly what you want and the buyer knows exactly what they want. They can just set an automatic order for the item until the specs are changed.