Weeks 3 and 4
Popular in Integrated Marketing
Popular in SPS
verified elite notetaker
verified elite notetaker
verified elite notetaker
pol sci 2301
verified elite notetaker
verified elite notetaker
This 11 page Class Notes was uploaded by Michaela Fisher on Sunday October 9, 2016. The Class Notes belongs to 24745 at NYU School of Professional Studies taught by Monique Carswell in Fall 2016. Since its upload, it has received 23 views. For similar materials see Integrated Marketing in SPS at NYU School of Professional Studies.
Reviews for Weeks 3 and 4
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 10/09/16
Chapters 4-7 Sunday, September 18, 2016 12:30 PM Chapter 4: Collecting information and Forecasting Demand Marketing Information System Consists of people, equipment, and procedures to gather, sort, analyze, evaluate and distribute needed, timely and accurate information to marketing decision makers. o Internal company records o Marketing intelligence activities o Marketing research Internal records Reports of orders Sales Costs Inventory levels Costs Inventory levels Receivables Payables Databases, Data warehousing and data mining (Big Data) Marketing Intelligence system: a set of procedures and sources that manager use to obtain everyday info about developments in the marketing environment Improving marketing intelligence Train and motivate the sales force to spot and report new developments Motivate distributors, retailers and the other intermediaries to pass along important intel. Hire external experts to collect intelligence Network internally and externally Set up a customer advisory panel Take advantage of government-related data resources Purchase info from outside research firms and vendors Marketing intel on the internet Independent customer goods and service review forums Distributor or sales agent feedback sites Combo sites offering customer reviews and expert opinions Customer complaint sites Public blogs Communicating & Acting on Marketing intel The competitive intelligence function works best when it is closely coordinated with the decision-making process (Given the speed of the internet, it is important to act quickly on the info gleaned online Identifying the major forces Six major forces In the broad environment Demographic Pop. Growth Pop. Age mix Ethnic and other markets Educational groups Household patterns Economical Consumer Psychology Income Distribution Income, Savings, Debt, Credit Sociocultural Views of all Core cultural values subcultures Natural Corporate environmentalism Technological Accelerating pace of change Unlimited opportunities for innovation Varying R&D budgets Increased regulation of technological change Political-legal Laws Government agencies Pressure groups Forecasting and Demand Measurement Market demand measures o Potential Market o Available market o Target market o Penetrated market Demand Measurement Market demand is the total volume that would be bought by a defined customer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing program. Market share Market penetration index Share-penetration index Market forecast -> corresponding market demand Market potential -> the limit approached by market demand as industry as marketing expenditures approach infinity for a give marketing environment Company Demand -> the company's estimated share of the market demand Company sales forecast -> the expected level of company sales bases on a chosen marketing plan. Sales budget Company Sales potential -> the sales limit approached by the company demand as marketing effort increases. Estimating Current Demand Total market potential Area market potential o Market-build up method o Multiple-factor index method Industry shares and market shares. Estimating Future Demand Survey of buyers' intention o Forecasting (purchase probability scale) Composite of sales force opinions Expert opinion Past-sales analysis Market-test method Chapter 5: Conducting Marketing Research The scope of Marketing Research Market research; the function that links the consumer, customer and public to the marketer through information. Importance of marketing insights Marketing Insight provides diagnostic info about how and why we observe certain effects in the marketplace and what that means to marketers. Good marketing insights form the basis of successful marketing programs. Who does marketing research? Most large corporations have their own marketing research departments. Plays a crucial role in the organization Creative market research in smaller companies: 1 Engaging students or professors to design and carry out projects a Crowdcasting 1 Using the internet 2 Checking out rivals 3 Tap into marketing partner exercise 4 Tap into employee creativity and widom Market Research Firms Syndicated-service Consumer and trade info research firms Custom marketing Hired to carry out specific projects research firms Specialty-line marketing Sells field interviewing to firm, research firms specialized research services The marketing research process Step 1: Define the problem, the decision alternatives and the research objectives Step 2: Develop the research plan Data sources: Primary data, fresh data gathered for project. Secondary data, data collected for another purpose or project. Research approaches o Observational o Ethnographic o Focus Group o Survey Research o Behavioral o Experimental Research Instruments o Questionnaires o Qualitative (consumer opinion) Word association Projective techniques Visualization Brand personification Laddering o Technological devices o Sampling Plan Sampling Unit: Who do we survey? Sample size: How many? Sample Procedure: How do we choose the group? o Contact methods Mail Phone Personal contacts Online contacts Inexpensive Expansive Fast Versatile Honest and thoughtfulcustomer response Step 3: Collect the info Step 4: Analyze the info Step 5: Present the Findings Step 6: Make the Decision Measuring Marketing Productivity Seven characteristics of good marketing research Scientific Method Careful observation, formulation of hypotheses, prediction and testing Research Established a creative way to reach customers (ex. Creativity Chester Cheetah costume, Cheetos) Multiple Methods Marketers cannot simply over-rely on any one method. They see the value of using two/three methods to increase confidence in the results Interdependence Recognizes that data us interpreted from underlying of models and models that guide the type of information sought data Value and Cost of Showing concern for estimating the value of information info vs. its cost (research not free, is it worth it?) Healthy Toward glib assumptions made by managers about how Skepticism the market works (marketing myths) Ethical Marketing Misuse of marketing research could potentially harm and annoy customer, increase resentment at what consumers regard as an invasion of privacy or a disguised sales pitch. Keys to measuring market productivity are (1) marketing metrics to assess marketing effects and (2) marketing mix model to estimate the casual relationship and measure how marketing activity affects outcomes. Marketing dashboards are used to disseminate the insights of these two approaches. Marketing Metrics Set of measures that helps marketers quantify, compare and interpret their performance Marketing-mix Model Analyzes data from a variety of sources to understand precisely the effects of specific marketing activities. o Retailer scanner data o Company shipment data o Pricing o Media o Promotion spending data Marketing dashboards A concise set of interconnected performances drivers to be viewed in common throughout the org. o Customer performance scorecard o Stakeholder-performance scorecard Chapter 6: Analyzing Consumer Markets What influences consumer behavior? Consumer Behavior -> the study of how individuals, groups and organizations select, buy, use and dispose of goods, services, ideas or experiences to satisfy their needs and wants. Influenced by cultural, social and personal factors. Cultural Factors Culture Sub-cultures Social Classes Social Factors Reference groups o Membership group (primary vs. secondary) o Aspirational group o Dissociative group o Opinion leader Cliques Family Role and status Personal Factors Age and stage in the life cycle Occupation and economic circumstances Personality and self-concept Lifestyle and values Key Psychological processes - a set of psychological processes combine with certain consumer characteristics to result in decision processes and purchase decisions. Motivation (need with an intensity to drive us to act) o Freud's theory - guided by subconscious motivation o Maslow's Hierarchy of Needs - driven by the lowest, unmet need o Herzberg's Two Factor - driven by dissatisfiers and satisfiers Perception o Selective attention o Selective Distortion o Selective Retention o Subliminal Perception Learning Emotions o Many emotions linked to brands Memory Consumer Buying Decision Process: The 5 Stage Model 1 Problem Recognition 2 Information Search a Sources (Personal, Commercial, Public, Experimental) b Search Dynamics (Total set, awareness set, consideration set, choice set, final decision) 2 Evaluation of Alternatives a Beliefs and attitudes b Expectancy-Value Model (positive to negative according to importance) 2 Purchase Decision 3 Post-Purchase Behavior a Satisfaction b Actions c Uses and Disposal Types of perceived Risks Functional Physical Financial Social Psychological Time Moderating effects on Consumer Decision Making Low involvement consumer decision making (product people overlook) o Link product to interesting issue o Link to personal situation o Design advertising that will trigger strong emotion o Add a feature Variety seeking Buying Behavior (consumers looking for something new, Brand Switching) o Encourage habitual buying by dominating the shelves. o Avoid out of stock conditions o Sponsor frequent reminder Ads Behavioral Decision Theory and Behavioral Economics Sometimes the road to a consumer decision is not deliberate and rational sometimes due to the following factors: Decision Heuristics Availability Representativeness Anchoring and Adjustment Framing Mental Accounting Prospect theory Chapter 7: Analyzing Business Markets Organizational Buying: the decision making process by which formal orgs establish the need for purchased products and services used in the production of the other products or services that are sold, rented or supplied to others. Business Market vs Consumer Market Business market-> organizations the buy goods and services used in the production of other products or services that are sold, rented, or supplied to others. (any firm that supplies components are in the business to business marketplace) Business to Business marketing 1 Building strong interfaces between marketing and sales 2 Engaging more deeply with customers and customers' customers 3 Extracting and leveraging more granular customer and market knowledge B-2-B marketplace Fewer, larger buyers Close supplier-customer relationships Professional purchasing Multiple buying influences Multiple sales calls Derived demand Inelastic demand Fluctuating demand Geographically concentrated buyers Direct purchasing Buying situations How B-2-B consumers make decisions Straight rebuy Modified rebuy New task Participants on the Business Buying Process The Buying Center usually includes people with Different interests to serve both the customers and the organization. Members 1 Initiators 2 Users 3 Influencers 4 Deciders 5 Approvers 6 Buyers 7 gatekeepers Targeting Firms and Buying Centers Knowing what type of companies to target Who are the major decision participants? What decisions do they make to their decisions? How influential? Targeting Firms (who to sell products to) Targeting within the business center (how best to sell products) Purchasing/Procurement Process Assessing the perceived benefits and costs , best bang for your buck. Stages in the Buying Process (Buyphases, Patrick Robinson) Problem Recognition General need description and Product Specification Supplier search o e-procurement o Lead generation Catalog Vertical markets Auction Barter Proposal Solicitation (RFP's, Request for Proposals) Supplier Selection o Overcoming price pressures o Number of Suppliers Order Routine Specification Performance review Developing Effective Business to Business marketing programs Communication and branding activities Systems Buying and Selling Role of Services Managing B2B Customer relationships Vertical Coordination Types of B2B Relationships o Basic Buying and Selling o Bare Bones o Contractual Transaction o Customer Supply o Cooperative Systems o Collaborative o Mutually adaptive o Customer is King Risk and Opportunism in Business Relationships Institutional Market: School, Hospitals, Nursing Homes, Prisons provides goods and services to people in their care. Government Markets: require suppliers to submit bids and award to the lowest bidder, buyers have to do a lot of paperwork and these markets have special needs and procedures.
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'