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

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.

3. 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.

4. Research Approaches Observational Focus-group Survey Behavioral
Experimental

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

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

7. 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

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

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

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

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

12. Simple Response Model
Stimulus
Organism
Response

13. 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

14. Cultural Factors
Culture
Subculture
Social Class
Buyer

15. Social Factors
Reference
Groups
Family
Roles &
Statuses

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

17. Psychological Factors
Motivation
Perception
Beliefs &
Attitudes
Learning

18. 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

19. 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

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

21. 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

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

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

24. 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

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

26. 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

27. 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

28. 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

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