Marketing: Chapter 5 - Chapter 6
Marketing: Chapter 5 - Chapter 6 MKTG 3310-001
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This 6 page Class Notes was uploaded by Lydia Purcell on Wednesday February 24, 2016. The Class Notes belongs to MKTG 3310-001 at Auburn University taught by Jeremy Wolter in Spring 2016. Since its upload, it has received 161 views. For similar materials see PRINCIPLES OF MARKETING in Business at Auburn University.
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Date Created: 02/24/16
Chapter 5 – Marketing Feb 18 , 2016h ***Behavioral variables: usage Number consumed or loyalty during a select period o Find aggressive customers and slow them down Pareto principle o 80% profit o 20% customer o think of loyalty cards Share of wallet o Percentage of the customer’s wallet according to time given Ex – shopping at Walmart one day of five you shop; they receive a certain % of your wallet Competitors come into play – underlying cause of customers shopping elsewhere o Spending patterns are recorded by credit card companies – customer behavior Segmentation o There is a difference between qualifying dimensions and determining dimensions o Must be related to why people purchase o May create talk, but may not drive sales up o What/who o Qualifying – placing people in the segment o Determining – reason why they purchase (this is what you make marketing about). This is what drives customers to profitably respond. Perception For new insights, new methods are sometimes needed. o Every method has its limitations. o Balanced approaches are necessary to improve success Triangulation Triangulation is required for every piece of data collected. Talking to more customers, looking at data, and taking complaints, reports, or suggestions. Noises-to-signal ratio is increasing Be aware of “unknown unknowns” ▯ ▯ Purchase Decision Process 1. Recognition Understanding that people have a need that should be met 2. Information search External vs. internal 3. Alternative evaluation Examine criteria & consideration set 4. Purchase decision Whom and when? 5. Post-purchase Satisfaction & buyer’s remorse All about satisfying the customer – keeping up with them after they purchase ▯ ▯ Goal formation Setting o What goals can I pursue? Intention o What am I striving for? Action Planning o How can I achieve my goal? Action & Control o Am I making progress? Success ▯ ▯ Superordinate goals: The reason I strive to achieve my goal Cultural and Social Culture Subculture o Nationality Social class Social groups Family Roles ▯ ▯ Personality Vague concept Unique psychological characteristics that distinguish a person Self Concept o Actual vs Ideal Actual is more profitable o Self-esteem Ideal is used more so ▯ Psychological Influences Motivation o Hierarchy of needs (refer to book) o Self-actualization needs Self-fulfillment o Personal needs Status, respect, prestige Perception o The way in a person filters information Selective attention How we pay attention Selective distortion How we interpret Selective retention How we remember Attitude Involvement o The personal, social, and/or economic ▯ ▯ th Chapter 6 - Marketing Feb 18 , 2016 ***Uncover unique (actionable) customer (market) insight Define the Problem – Create the Plan – Gather & Examine Data – Understand & Report Defining the Problem Exploring the problem Finding the problem is the hard part o Underlying problem – causes symptoms Descriptive o Quantify market and describe the problem o Gathering data Cause Research o What’s the underlying reason for this? What are the factors? o Need to experiment to find the answer – don’t know until you test Correlation o Two things and how they move together over time without impacting the other o Predictive o You can’t understand the “why” because the underlying cause isn’t present Companies are using prediction without finding the underlying cause Customizing products and advertising according to research Create the Plan Take on the problem but time and money are restricting Primary – new data collected personally o More expensive to do yourself o How you will gather people o How you sample that group o Approaches: Observe how people are responding to product (exploring) Survey (correlation, not cause) Experiment (cause, A/B) ***main standard Panel (over time data) ***main standard Tech and data mining o Contact: Face to face Phone Mail Internet Secondary – older data collected personally or another person o How recent? o Is it done well? o Is it accurate? o Is it relevant? o Done at a broader level, not as detailed and specific as you need Go to secondary first to have a better foundation for your primary research Sample people from the target market that you can use for the broad scale o The problem: There are biases – it won’t reflect the entirety Margin of Error – how far you can be off of the exact number (rate at which it is decreasing) o The solution: Random sample; decreasing bias (pure = not possible) Sample size; bigger size = smaller MOE (3%-5% range) ***Crosstab not on test
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