MKTG 3310 Exam 3 Study Guide
MKTG 3310 Exam 3 Study Guide MKTG 3310-001
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This 8 page Study Guide was uploaded by Melissa Cooey on Monday February 22, 2016. The Study Guide belongs to MKTG 3310-001 at Auburn University taught by Jeremy Wolter in Spring 2016. Since its upload, it has received 699 views. For similar materials see PRINCIPLES OF MARKETING in Business at Auburn University.
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Date Created: 02/22/16
Tuesday, February 23, y MKTG 3310 Exam 3 Study Guide Chapter 4 - Segmentation Segmentation separating prospective customers into smaller groups based on common needs and/or response to marketing actions. The Long Tail the firms that specifically sell products to small markets. The long tail is enabled by: breaking free of the constraints of physical space. finding ways to talk to market segments economically. new distribution systems Majority of the potential revenue comes from the tail, because there are so many companies that market in the long tail. Natural Monopoly if you’re working in the long tail, you’re most likely sharing customers with the head of the market, because your customers are probably heavy buyers that buy out of all areas of the market. Double Jeopardy because the long tail sells less known and used materials, the customers are comparing the products to the products sold by the head, and they are usually less satisfied. Product Market a market with very similar needs and sellers offering various close substitute ways of satisfying those needs. Generic approaches for segmenting product markets: 1. Single target market segmenting the market and picking one of the homogenous segments as the firm’s target market. 2. Multiple target markets segmenting the market and choosing two or more segments, and then treating each as a separate target market needing a different marketing mix. 1 Tuesday, February 23, y 3. Combiner combining two or more submarkets into one larger target market s a basis for one strategy. Criteria in creating segments: 1. Homogenous (similar) within the segment the customers in the same segment should be as similar as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions. 2. Heterogenous (different) within the segment the customers in different segments should be as different as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions. 3. Substantial (profitable) the segment should be big enough to be profitable. 4. Operational ( segmenting variables should be useful) the segmenting dimensions should be useful for identifying customers and deciding on marketing mix variables. Segmentation Variables: Geographic region, city size, statistical area companies use this one the most. Demographic gender, age, marital status Psychographic personality, needs, values companies use the least. Behavioral usage rate generally, the best variable for predicting future behavior, is Behavioral, because the easiest way to predict future behavior, is to look at past behavior. Pareto Principle 80% of your results come from 20% of your inputs. 80% of your revenue comes from 20% of your customers. Share of Wallet Percentage of customer’s category/industry spending that they spend with a company. Qualifying Dimensions those relevant to including a customer type in a productmarket. 2 Tuesday, February 23, y Determining Dimensions those that actually affect the customer’s purchase of a specific product or brand in a productmarket. Chapter 6 - Marketing information/Research The goal of most marketing research is to uncover unique (and actionable) customer (and market) insight. 4 Step Approach to Marketing Research: 1. Define the Problem 2. Develop the Plan 3. Collect and Analyze the Data 4. Interpret and Report 3 Types of Marketing Research: 1. Exploratory Research exploring and trying to find the problem. 2. Descriptive Research describing the problem and how to tackle it. 3. Causal Research figuring out why this is happening, and what is causing it. The difference in Correlation and Causation is that causation is what causes something, however, correlation is how things covary over time. Correlating things don't cause each other, but they can be used to predict the other. The problem with correlation, is that sometimes the things that covary could have absolutely nothing to do with each other, it’s just a coincidence. So if you’re using them to predict each other, it might not be beneficial at all. However, correlation might be great for helping predict something. If the things are connected with each other, correlation could predict future activity. 3 Tuesday, February 23, y Primary Data and Secondary Data: Primary data you recently collect yourself for the specific purpose at hand. Secondary data that has already been collected at an earlier time for another purpose, and is being stored. Primary data typically provides more accurate data. Secondary data can usually be obtained quicker, and at a lower cost than primary data. It is also the data a company starts with. Primary Data research approaches and contact methods: Research approaches: observational involves getting primary data by observing relevant people, actions, and situations. survey the most widely used method for primary data collection, gathers data by asking people direct questions about their knowledge, attitudes, preferences, and buying behavior. panels and experiments best suited for gathering causal information. Involve selecting matched groups of subjects, giving them different treatments, controlling unrelated factors, and checking for all differences in group responses. IT and data mining Contact methods: mail telephone personal online 4 Tuesday, February 23, y Sampling taking a few people randomly out of the population for marketing research to represent the population as a whole. 2 problems with sampling: 1. Bias this can be overcome by doing random sampling. 2. Margin of Error (MOE) can be overcome by taking a larger sample. The bigger sample size = smaller MOE. Chapter 5 - Buyer Behavior 2 frameworks that can be used to understand how consumers’ decision processes are influenced: 1. Purchase Decisions Process Need recognition recognize a problem or need Information search external vs internal Alternative evaluation look at different options from different brands and decide on one. Purchase decision from whom and when? Post purchase satisfaction and buyer’s remorse 2. Goal Formation the stages for goal setting are: 5 Tuesday, February 23, y Goal intention what do I strive for? Action planning how can I achieve my goal? Action and control am I making progress? Goal success The goal hierarchy: Factors that affect consumer behavior: Cultural culture subculture social class Social groups and social networks family 6 Tuesday, February 23, y roles and status Psychological age and lifecycle stage economic situation lifestyle personality and selfconcept Personal motivation perception the process by which a person filters information (selective). learning beliefs and attitudes Maslow’s Hierarchy selfconcept how a consumer sees and feels about him/herself. actual selfconcept how the buyer actually is. ideal selfconcept the customer’s preceptor of who they’d really like to be. Generally, actual selfconcept is used the most in marketing. 7 Tuesday, February 23, y attitude a person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea. Attitudes are difficult to change. using something that a consumer likes a lot to convince them to change their attitude is an option. Organization purchasing is more prevalent with GEP, and consumer purchasing is more prevalent with GDP. Organizational purchases are similar, but different to consumer purchases. Organizational purchases are typically larger, more formalized, involve more people, are more relational, emphasize service more than consumer purchases, and are more complex overall. Is organizational purchasing purely rational? No, because people are involved. 3 types of buying situations for an organization: 1. Straight rebuy the buyer reorders something without any modifications. Routine basis. 2. Modified rebuy the buyer wants to modify product specifications, prices, terms, or suppliers. 3. New task a company buying a product or service for the first time. 8
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