MKTG 310 Week 2
MKTG 310 Week 2 MKTG 310
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This 5 page Class Notes was uploaded by jaiphen95 on Friday September 11, 2015. The Class Notes belongs to MKTG 310 at Northern Illinois University taught by Rich Wozniak in Fall 2015. Since its upload, it has received 37 views. For similar materials see Principles of Marketing in Marketing at Northern Illinois University.
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Date Created: 09/11/15
SocioCultural Forces 0 Varying traditions religions customs language etc of various products and services 0 Ethnocentrism is bad and you should feel bad This behavior entirely shuts down international business A marketer has to be receptive of other culture39s perspectives and values 0 Back translation is important because it has to be done by a native so that the translation captures the meaning of the communication Domestic and Global Regulatory Forces 0 Monetary vs fiscal policies 0 o monetary policy Controlling the money supply with interest rates 0 fiscal policy Influencing expenditures and savings by means of the tax structure and government spending 0 Legislation and regulation 0 There are laws people to interpret that and people to regulate and enforce it 0 Public private consumer interest groups These groups are try to pressure government into promoting certain popular public opinion 0 Selfregulatory organizations within an industry People of certain authority take very punishableif broken oaths and therefore need less government interference 0 Government relationships with an industry 0 Subsidies deregulation protectionism The government manipulates certain markets in order to control economic flow 0 Legislation related specifically to marketing 0 Fraud deception warranties price discrimination patent protection avoiding monopolizing 0 Domestic and international political events Ethical and Social Responsibilities 0 Standards of conduct and ethical values doing the right thing 0 Enhancing quality of life protecting a pristine environment Technology 0 Technology is an enabler that can create demand for new products and services We are able to have so many different marketing channels because of technological advancements 0 Technology develops quickly however which leaves a lot of room for obsolete products 0 Opens up new possibilities and stimulates the market and has the ability to improve the quality of lifestandard of living Physical and Natural Environment 0 Resource availability o Shortages dictate the use of scarce resources which can trigger demarketing In other words discouraging the demand of scarce products I Cutting back on sales and promotions raising prices producing less etc 0 Nature natural events and natural conditions 0 Landscape climate geological and astronomical occurrences Competitive Situation A firm39s size and industry position relative to competitors Remember the four sources of competition Indirect direct open and time Competitive market structures 0 Pure competition Many buyers many sellers trading a uniform commodity agriculture No single buyerseller has much effect on ongoing market price 0 Monopolistic competition Many buyers and sellers trade over a range of prices rather than at a single market price This is where most retail falls Some sellers have better prices than others supply and demand fluctuates o Oligopoly A few sellers are sensitive to each other39s pricing and marketing strategies Think of products that only have a handful of big players raw materials such as aluminum iron alloy plastics etc o Monopoly A single suppliervendor exists External MicroEnvironment o ProducersSuppliers and Intermediaries Not very controllable but lots of choices 0 0 Customers may deal with producers through intermediaries middlemen and vice versa 0 Together the company its suppliers and its intermediaries can create a supply chain and therefore add value to the final product 0 What is the supply chain I Entire sequence of suppliers that contribute to the creation manufacturing and delivery of a finished goodservice I Valueadded service Adds some improved service customers don39t normally recieve I Better value justifies a higher price 0 Disintermediation Occurs when you buy online Customers essentially surpass a lot of the services put into physically being present in retail stores The middleman in that situation doesn39t exist If everyone ordered from the Eddie Bauer catalog I wouldn39t have a job 0 Marketswhat are they 0 Firms operate in one or more customer markets where exchanges occur 0 Sets of customerspotential ones 0 Consist of individuals or organizations with o I Needs to satisfy I Resources to spend I Willingness to commit resources I Authority to buy 0 Publics 0 Groups with an actualpotential interest in an organization39s ability to achieve Public relations I Future employees creditors vendors supplies you want these people to be attracted to your company Internal NonMarketing Environment 0 The firm itselfmission and goals Reason for existing the business it defines itself for being in 0 Production facilities that are fixed at a given moment in time but expansion and upgrades are always the goal 0 Financial capability is also fixed at a certain point in time with intentions to expand 0 Company location in respect to markets supplies intermediaries transportation and utilities 0 Company strength in RampD o Opportunity to coordinate marketing and nonmarketing activities Unit 2 Consumer Behavior 0 Actions we take when deciding what where when and how to buy as well as when to make the purchase 0 Subset of human behavior dealing with the types of physicalmental activities that have an effect on the processes of planning purchasing using and disposing of goodsservices Consumer Involvement 0 Degree of personal importance How much does one care about a product 0 o Ongoing or situational Ongoing involves frequent demanduse Situational means the consumer doesn39t purchase the product often 0 What defines high involvement in a product or makes it an inconsequential decision 0 I Personal meaning relates to core values I Expensive I Huge luxury factor I Gifts Extensive Problem Solving Complex evaluation of a number of alternatives Essentially the decision making in a product market you39re not familiar with 0 Don39t initially understand the brands lots of comparison shopping need lots of information to understand opportunity risks between products high involvement 0 When Alex and I got the Jeeplots of time and info to make that decision Risk analysis Routine Response Behavior You have a lot of knowledge around a frequent decision Already know the risks and opportunity between different alternatives 0 There is a quotnormquot of purchases in this behavior Limited Problem Solving Being somewhat familiar with a decision that need to be made but no broad knowledge of all alternatives or product class Consumer Decision Process 5 stages 1 Recognition of a need Notices a a need a wanting between what you have and what you want to change strong enough to trigger wanting to make a change Search for info Internal searching involves going through existing knowledge External searching means looking for new info that one doesn39t already know Risk perception is subject for everyone may cause purchase postponement It39s the marketer39s job to eliminate perceived risk and make consumer39s comfortable with the purchase Functional physical social psychological and financial risk Identify and evaluate alternatives Evoked set Few brands come to mind when you think of a product Condoms Consideration set Brands actually considered to be bought Inert set All other options considiered or not therefore rejected Determinant attributes Features consumers use to differentiate among options Salient attributes Important features in a product that have a large impact on the purchase decision Agenda setting Marketer39s attempt to educate the consumer about the important attributes and what you should look for in that product field in order to further promote the product Select an alternative Time to weigh the pros and cons Sometimes we buy spontaneously or need to make a sudden purchase or we don39t think about the opportunity cost Brand name can strengthen certain attributes to mentally eliminate consequences when it39s bought Evaluating the purchase Instrumental performance Does it do what it39s supposed to do The means to an end Alex and I get better mileage with the Jeep and it39s a better size Expressive performance Socialpsychological aspects The actual end The Jeep is hella fun to be in and looks good Negative word of mouth is more common than positive dissatisfied customers even tend to not say anything and don39t return to the business Satisfaction is an attitude formed toward a purchase A mental state of adequately being rewarded in a buying situation