Mark Lieberman Foundations of Business Practice 2 Marketing Module 2 Mark Lieberman Foundations of Business Practice 2

A marketing information system (MIS) consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. A marketing intelligence system is a set of procedures and sources used by managers to obtain everyday information about developments in the marketing environment.

Defining the Problem & Research Objectives Sheds light on problem - suggest solutions or new ideas. Exploratory Research Descriptive Research Ascertain magnitudes. Causal Research Test cause- and-effect relationships. Tests hypotheses about cause- and-effect relationships.

Research Approaches Observational Focus-group Survey Behavioral Experimental

Secondary-Data Sources Internal Sources Government Publications Periodicals and Books Commercial Data On-Line Associations Business Information

The Marketing Research Process Define problem and research objectives Develop research plan Collect information Present findings Analyze information

Ninety Types of Demand Measurement (6 x 5 x 3) Territory Region U.S.A. Customer World Space level All sales Company sales Product line sales Product form sales Product item sales Industry sales Product level Short run Medium run Long run Time level

Estimating Current Demand Total market potential Area market potential Industry sales Market share

Estimating Future Demand Survey of buyers’ intentions Expert opinion Composite of sales force opinion Past sales analysis Market test method

Demographic Environment Worldwide Population Growth Population Age Mix Ethnic Markets Educational Groups Household Patterns Geographical Shifts in Population Shift from Mass Market to Micromarkets

Other Environments Economic & Natural Technological Political – legal Socio - cultural

Simple Response Model Stimulus Organism Response

Model of Buying Behavior Marketing stimuli Product Price Place Promotion Other stimuli Economic Technological Political Cultural Buyer’s characteristics Cultural Social Personal Psychological Buyer’s decision process Problem recognition Information search Evaluation Decision Postpurchase behavior Buyer’s decisions Product choice Brand choice Dealer choice Purchase timing Purchase amount

Cultural Factors Culture Subculture Social Class Buyer

Social Factors Reference Groups Family Roles & Statuses

Economic Circumstances Personal Influences Influences on Consumer Behavior Age and Family Life Cycle Stage Lifestyle Occupation & Economic Circumstances Personality & Self-Concept

Psychological Factors Motivation Perception Beliefs & Attitudes Learning

Maslow’s Hierarchy of Needs Self- actualization (self-development and realization) 5 Esteem needs (self-esteem, recognition) 4 Social needs (sense of belonging, love) 3 Safety needs (security, protection) 2 Psychological needs (food, water, shelter) 1

Four Types of Buying Behavior Complex Buying Behavior Variety- Seeking Behavior High Involvement Low Involvement Significant differences between brands Few Dissonance- Reducing Buying Behavior Habitual Buying Behavior

Consumer Buying Process Problem recognition Information search Evaluation of alternatives Postpurchase behavior Purchase decision

How Customers Use or Dispose of Products To be used (re)sold Give it away Trade it Sell it Throw it Loan it Rent it Get rid of it temporarily permanently Keep it Product Direct to consumer To intermediary Through middleman Store it Convert to new purpose Use for original

Business vs. Consumer Markets Fewer buyers Larger buyers Close supplier-customer relationship Geographically concentrated Derived demand Inelastic demand Fluctuating demand

Business vs. Consumer Markets Professional purchasing Multiple buying influences Multiple sales calls Direct purchasing Reciprocity Leasing

New Task Buying Modified Rebuy Straight Rebuy Custom furniture Installed components Buildings Weapon systems Involved Decision Making New vehicles Elec. Equip Consultants Computer equip. Modified Rebuy Straight Rebuy Utilities Office Supplies Bulk chemicals

Participants in the Business Buying Process Users Initiators Influencers Gatekeepers Buyers Deciders Approvers

Major Influences on Industrial Buying Behavior Level of demand Economic outlook Interest rate Rate of techno- logical change Political and regulatory developments Competitive Social responsi- bility concerns Environmental Objectives Policies Procedures Organizational structures Systems Interests Authority Status Empathy Persuasive- ness Interpersonal Age Income Education Job position Personality Risk attitudes Culture Individual Business Buyer

Organizational Factors Purchasing- Department Upgrading Cross- Functional Roles Centralized Purchasing Decentralized Purchasing of Small Ticket Items Internet Purchasing Long-Term Contracts Purchasing- Performance Evaluation & Pro. Buyers Lean Production

Purchasing-Procurement Process Problem recognition Need recognition General need description Product specification Info search and eval. Supplier search Proposal solicitation Purchase Supplier selection Order routine specification Post Purchase Performance review

There is nothing more exhilarating than to be shot at without result. Winston Churchill