Less for Much Less
Potential Value Proposition: Fewer benefits for much lower price ex. Dollar General
Stages include: awareness, interest, evaluation, trial and adoption.
data that consists of info collected for the specific purpose at hand must be relevant, accurate, current, and unbiased.
Marketing Information System
The goal of this is giving the right info @ the right time and in the right form to help decision makers in generating value
one of the general "adopter" categories: skeptical; adopt only after a majority have tried. 34%
fresh understanding of customers and the marketplace derived from marketing info that becomes the basis for creating customer value and relationship
customer seeks info about new product
Marketers don't want more information, they want....
these must be translated into specific info needs. Info needs include: detailed customer characteristics, usage patterns, retailer reactions, etc. These are research objectives for....
Factors that influence consumer behavior: culture, subculture, social class
factors that influence consumer behavior: reference groups, family, roles and status
the most basic cause of a person's wants and behavior. It is learned from family, church, school, peers, colleagues. Reflects basic values, perceptions, wants and behaviors. Shifts create opportunities for new products and many otherwise influence consumer behavior.
Disadvantages to Secondary Data
data that when desired may not provide desired info. Must be carefully evaluated for relevancy, accuracy, currency, and impartially
Behavioral segmentation that uses special promotions and labels for holidays. Special products for special ....
Customer Relationship Management
managing detailed information about individual customers and carefully managing customer "touch points" in order to maximize customer loyalty. It analyzes it in-depth
source of developing marketing: systematic design, collection, analysis, and reporting of data relevent to a specific marketing situation facing a firm (e.g. focus groups)
Psychological factor. Process by which people select, organize, and interpret information to form a meaningful picture of the world.
Can be influenced by:
Selective attention, selective distortion, selective retention
the focusing of conscious awareness on a particular stimulus, as in the cocktail party effect
A process whereby a consumer changes or distorts information that conflicts with his or her feelings or beliefs
a process whereby a consumer remembers only that information that supports personal beliefs
groups of people with shared value system based on common life experiences. ex. Hispanic consumers, Asian-American consumers, Mature consumer
a product characteristic that influences the rate of adoption: Does the innovation fit or "work with" the existing products uses, values, or experiences of the target market?
MORE IMPORTANT THAN RESEARCH ITSELF... should be presented in a written proposal, may outline need for primary and secondary data
generating info to better describe marketing problems, situations, or markets
decision to make full and regular use of the product
Part of the model of consumer behavior: these are evaluated in light of the buyers decision process and the buyer's characteristics
-Formation of attitude and preferences
-development of a relationship with the brand or firm
dividing a market into different groups based on social class, lifestyle, or personality characteristics
pattern of living as expressed in his or her activity, interests, opinions. People buy the __________ represented by products or services.
Monitor, Adapt, to match changes
Firms must also ___________ and ______________ the position over time ____ _____________ ____________ in consumer needs and competitors strategy.
Key variables of ___________________: geographic, demographic, psychographic, and behavioral
Some goods and/or services are especially income-sensitive. Often influences choice of store as well.
relatively permanent and ordered divisions who share similar values, interests, and behaviors. Measured by a combination of occupation, income, education, wealth, and other variables.
Categories include: upper class, middle class, working class, lower class.
More for Less
Potential value proposition. More benefits for a lower price. Most difficult to hit.
Ex. Home Depot at the beginning
an advantage over competitors gained by offering greater customer value, either through lower prices or by providing more benefits than justifying higher prices
Speed to try a product is highly idiosyncratic.
Innovators, Early Adopters, Early Majority, Late Majority, Laggards.
peculiar to the individual. Speed to try a product is highly ____________________.
provide insight but doesn't fully influence it. Information that already exists somewhere which has been collected for another purpose.
Common Sources: internal databases, commercial data services, government sources.
screening out most of what one's exposed to.
Ex. how advertisements on the TV are showing more of their logo because people tune in and out. and TiVO and record things.
Defining Problem and Objectives
most difficult step of the marketing research process... May include: exploratory research, descriptive research, causal research.
gathering preliminary info that will help define the problem and suggest hypothesis
this requires: determining the exact info needed, developing a plan for gathering it efficiently, presenting the written plan to management
One type of micro-marketing. tailoring brands and promotions to the needs and wants of local customer groups - cities, neighborhood, specific stores (how they behave)
Competitive Marketing Information
a source for developing market info:
systematic collection and analysis, and reporting of data relevant to a specific marketing situation facing a firm (e.g. focus groups)
This requires three decisions:
Who is to be surveyed? selecting sampling unit
How many people should be surveyed? referred to as a sampling site
How should the people in the sample be chosen? describes sampling procedure
who is to be surveyed? who is to be studied in the the survey?
how many people should be surveyed? how many people should be included in the survey.
How should the people in the sample be chosen? the different kinds of samples
product characteristic that influences the rate of adoption: Is the innovation difficult to understand or use?
Performance = Expectation
Performance > Expectation
Differentiation and Positioning Strategy
choosing this involves: identifying a set of differentiating competitive advantages on which to build a position. Choosing the right competitive advantage. Selecting an overall positioning strategy.
the process of distinguishing a product or offering from others, to make it more attractive to a particular target market.
small scale _________ to improve one's estimate of value.
looks at various ways a firm distributes or sells or offers its products to its customers
Ex. Iams selling premium dog food through vets, breeders, and pet stores.
dividing buyers into groups based on consumer knowledge, attitudes, uses, or responses to a product. Ex. Occasional (diff. segs desire diff benefits from products)
Factors influencing this: cultural factors, social factors, personal factors, psychological factors
Continuum of Sophistication
tools used to span the ________________ of _________________ in market research: elaborate conjoint analysis and agent-based modeling programs = simple communication and design
a method for deriving the utility values that consumers attach to varying levels of a product's attributes.
A way of simulating human organizations using multiple intelligent agents, each of which follows a set of simple rules and can adapt to changing conditions
type of sampling where members have a known chance
Socially Responsible Targeting
smart targeting helps both companies and consumers. Marketing sometimes generates controversy and concern when targeting arises when an attempt is made to profit at the expense of segments
Concentrated Marketing or Niche
targets one or a couple small segments
Marketing Information Systems
value not only for the marketing/firms value chain but entire value chain system. Consists of people and procedures for accessing info needs, developing the needed info, and helping decision making to use the info to generate and validate actionable customer and market insights
More for Same
potential value proposition. More benefits for the same price. Ex. Lexus
Methods of Contact
mail surveys, telephone surveys, personal interviews (individual interviewing, focus groups interviewing), online marketing research (internet surveys, online panels experiments, online focus groups) Ex. companies using your cookies on your computer to market to you
The ____________ _________ efforts must deliver the positioning strategy
one source to get marketing info.
They are: electronic collections of consumer and market info obtained from data sources within the firm's network. (e.g. website usage by customers)
Example of Positioning Statement
"To busy mobile professionals who need to always be in the loop, Blackberry is a wireless connectivity solution that gives you an easier, more reliable way to stay connected to data, people, and resources while on the go."
this research is growing but presents unique challenges
involves: evaluating market segments, selecting target market segments, being socially responsible
One of the six roles of the "buying center": people with power to prevent sellers and info from reaching members of the "buying center"
Most commonly known as secretary or receptionist
Research instrument: What question to ask for? Form of each question? (Close-ended vs. open-ended wording)
Wording? double-barrel, framing ("ground beef" or "asian disease")
identifies and targets the affluent for luxury goods. people with low annual _________ can be lucrative marketers. troubled economy makes marketing to all _______ groups a challenge.
considering whether trying product makes sense
gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses. Explaining cause-and-effect relationships. (Causal)
learning organization. firms that both exploit their current competencies (through efficiently improvement) while simultaneously exploring new competencies (based upon firm strengths and customer needs)
The knowledge, skills, abilities, and other talents that employees possess.
Differentiated Marketing or Segmented
target several segments and make separate offers to each other
Human resource based advantage. Hiring and training better people than the competitor can become an immeasurable competitive advantage for a company.
work to establish images that differientiate from competitors. By giving a product personality, can be done through a story, symbol or other identifying means.
ex. Keebler elves
a product characteristic that influences the rate of adoption: Can the innovation be tried on a limited basis? (i.e. degree of commitment and applicability affects rate)
the way the product is defined by consumers on important attributes - the place the product occupies in consumers' mind relative to competing products. Perceptual positioning maps can help define a brand's position relative to competitors.
Perceptual positioning Maps
can help define a brand's position relative to competitors
the origin of the differential advantage
a company's competitive edge such as lower price, superior quality or unique product features
testing hypothesis about cause-and-effect relationships
Same for Less
Potential Value proposition. Same benefits for a lower price. Ex. Walmart
esteem given to role by society
Demographic Market Segmentation
age, gender, family size, family life cycle, income, occupation, education, race, religion, generation, nationality. The most popular bases for segmenting customer groups, needs, wants, and usage often vary. Easier to measure than most other types of variables
nations, regions of country, states, countries, cities, neighborhoods are examples of this...
Two types: local marketing, individual marketing.
Tailoring products and marketing programs to suit the tastes of specific individuals and location.
what the company uses to sift through the mounds and mounds of data in the data warehouse and dig out interesting findings about customers.
Ex. Kroger uses this technique to guide strategies for tailored promotions, pricing, placement, and even stocking variations from store to store.
a company wide electronic database of finely detailed customer information that needs to be sifted through for gems. The purpose for it is not to just gather info, but to pull it together into a central, accessible location.
Multiple Segmentation Bases
The use of these provide: ability to identify smaller, better-defined target groups. Start with single base and expand to other bases.
Brand's Value Proposition
overall or full positioning of the brand is called....
one of the six roles of the "buying center": people who must authorize the proposed actions of the deciders and/or buyers
influences the purchase of clothing and other goods
Buyer's Black Market
Part of the model of consumers behavior...
It is very difficult to see inside the consumer's head and figure out the whys of buying behavior. Marketers spend a lot of time and dollars trying to figure out what makes customers tick. This includes the buyer's characteristics, and buyer's decision process.
Central question for ____________ = "How do consumers respond to various marketing efforts the company might use?"
Consumer Buying Behavior
refers to the buyers behavior of individuals and households who buy goods and services for personal use. These people make up the consumer market.
the info users would like vs. what they really need and what is feasible to offer. Bounded by: avaliability, cost, managers, not knowing what to ask for, 2 much info = just as bad as 2 little
one becomes aware of existence but lacks info about
observational research that includes trained observers that watch and interact with consumers in their natural habitat.
"Research with the purpose of articulating a socio-cultural system embedded in human behavior." Yields richer understanding of consumers but isn't really "planned" and instead "evolves" based upon themes.
Age and Life-Cycle Style
Personal factors. people change the goods they buy over their lifetimes.
refers to the unique psychological characteristics that distinguish a person or a group. Generally defined in terms of traits.
"adapter" categories venturesome and don't mind the risk. 2.5%
Undifferentiated Mass Marketing
this target strategy includes and ignores segmentation opportunities. This mass marketing strategy focuses on what is common in the needs of consumers rather than on what is different. the company designs a product that will appeal to the largest number of buyers.
a product characteristic that influences the rate of adoption. Can results be easily observed or described to others?
suggests that peoples possessions contribute to and reflect their identities
tailoring products and marketing programs to the needs and preferences of individual customers
neglected __________ segments can offer new opportunities
Ex. Harley Davidson and Women
strongly influences buying behavior. gender stereotypes for certain types of purchases are relaxing in the US. Children are very influential and have substantial disposal income of their own.
multivariable segmentation systems developed by Claritas, Inc. Stands for: Potential Rating Index for Markets.
Based on US census data.
Classifies US households in 66 clusters or segments within 14 different social groups
who created PRIZM NE
US households are classified into ___________ by the PRIZM NE
how many social groups does the PRIZM NE classify households in?
a persons' consistently favorable or unfavorable evaluations, feelings, and tendencies towards an object or idea
The first stage of the buyer decision process, in which the consumer recognizes a problem or need
Need Recognition and Info Search
can be triggered by internal or external stimuli
several sources of info may be used during info search: personal, commercial, public, experimental
Business Buying Process
Steps of this include:
1. Problem recognition
2. General need description
3. product specification
4. Supplier search
5. Proposal solicitation
6. Supplier selection
7. Order-routine specification
8. Performance review
2 factors may interfere with realization of this:
1. Attitude of others
2. unexpected situational factors
function of consumer expectations and perceived product performance
Behaviors with satisfying results tend to be repeated. Defined as changes in an individual's behavior arising from experience. Occurs due to an interplay of drives, stimuli, cues, responses, and reinforcement
a descriptive thought that holds about something
Performance < Expectations
Brands also have personalities, thus requiring a perceived ____________ to be present
one of the general "adopter" categories: traditional bound; suspicious of change and adopt once somewhat a tradition itself. 16%
Customer Insight teams
the new name for market research and info functions and replacing marketing research depts. The name change alters the focus from info to customer needs.
almost all major purchases result in this, whether it was the right decision due to the inherent compromise in all buying decisions.
Positioning Statement Format
"To (target segment and need) our (brand) is (a concept) that (point of difference)."
two companies can offer a similar physical product, but the company that offers additional services can charge a premium for the product.
ex. Mary Kay cosmetics
ex. Dominos and their 30 minutes or less
groups and social networks: memberships, reference, and aspirational groups
Marketers attempt to reach opinion leaders with in groups. Important to target market.
Opinion leaders are recruited as brand ambassadors or buzz marketers. Online social networks allow marketers to interact with consumers.
Advantage of Secondary Data
data that is available quickly and at lower costs. Can lead to info that an individual firm could not gather itself.
the process of dividing a market into distinct groups of buyers who have diff. needs, characteristics, or behaviors and who might require separate products or marketing programs.
Marketing Research Process
-Define the problem and research objectives
-Develop research plan for collecting info
-Implement the research plan
-Interpret and report the findings
Customer-Driven Market Survey
designing one of these involves: Segmentation, targeting, differentiation, and positioning
one of the six roles of the buying center: people with the formal authority for selecting the supplier and arranging the terms of the purchase. Can have overlap with decider if only one supplier is allowed- thus becoming only the negotiator unless both performed by one individual.
Primary Data Collection Plan
in order to design this you must make decisions related to the: research approach, contact methods, sampling plan, research instruments
To be useful these must be: measurable, accessible, substantial, differentiable, actionable
segment of the population selected to represent the population as a whole
the gathering of primary data by observing relevant people, actions, and situations. Can obtain info people are unwilling or unable to provide. Can not be used to observe feelings, attitudes, and motives and long-term or infrequent behavior.
this research can obtain info people are unwilling or unable to provide
this research cannot be used to observe feelings, attitudes, and motives and long-term or infrequent behavior
Age and Life-Cycle Segmentation
dividing a market into different age and life-cycle groups. using different products or different marketing approaches
More for More
Potential Value Proposition. More benefits for higher prices. Ex. Neiman Marcus
Business Buyer Behavior
the buying behavior of the organizations that buy goods and services for use of the production of other products and services for resell or rent to others for a profit. The business market is significantly larger than the consumer market in terms of both dollars and items sold.
Business to Business Market
Market structure and demand:
-For fewer buyers than b2c
-yet larger in purchase size
-business demand is derived from consumer demand
-thus they have more fluctuating demand due to anticipating consumers than having to react
-inefficiently due to "peaks and valleys"
they must do their best to understand business markets and business buyer behavior. Then, like businesses that sell to final buyers, they must build profitable relationships with business customers by creating superior customer value.
nature of business buying vs. consumer buying. Business buyers usually face more complex buying decisions. Thus, the business buying process tends to be more formalized. Buyers and sellers are much more dependent on each other in business markets due to number and timing
nature of business buying vs. consumer buying.
Routinely involved more individuals. much more lengthy and sophisticated than b2c.
a buyer situation that contributes to the business to business market. buyer routinely reorders something without any modifications. usually handled by the purchasing department. to keep business, "in" suppliers try to maintain product service quality. "out" suppliers try to find new ways to add value or exploit dissatisfaction so that the buyer will consider them.
a buyer situation that contributes to the business to business market. buyers want to modify product specifications, prices, terms, or suppliers. the in supplier may feel nervous and feel pressured to put their best foot forward to protect an account. Out suppliers may see the modified rebuy situation as an opportunity to make a better offer and gain new business.
a buyer situation that contributes to the business to business market. buyer purchases a product or service for the first time. The greater the cost or risk, the larger the number of decision participants and the greater their efforts to collect information. It is the greatest opportunity and challenge.
Systems selling (or solutions selling)
buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying solution. ex. Nikon enlists UPS in dealing with all of its transportation to and from the Nikon factory in Asia to its distribution facility in KY and then to its retailers in the US and around the world.
all the actors that participate in the business (or industrial) buying-decision process, and who are responsible for the consequences that result. Actors can, each, be an individual or unit of firm. Not a fixed or formally identified unit, but unique to each decision. In consumer market, this decision unit is often referred to as the family buying unit. Due to similar roles performed as in industrial buying.
Roles of buying center
six roles must be performed: users, influencers, deciders, buyers, approvers, gatekeepers
general "adopter" categories guided by respect; they're opinion leaders who try early but "carefully". 13.5%
one of the six roles of the "buying center": people who simply influence the buying decision. Help define "spec" and provide info for evaluating alternatives. (technical individuals)
one of the six roles of the "buying center":
members of the unit that will use the product of service. Often initiate process and help define specifications
one of the six roles of the "buying center": people with ultimate power to decide on the products' requirements and/or on the suppliers that can be used.
experts sampled. Ex. Snowballing and purposive
Research instruments that include: People meters, check out scanners, eye tracking device, neuromarketing (e.g. FMRI)
Marketing Information Sources
internal databases, competitive marketing intelligence, marketing research
one of the general "adopter" categories: Deliberate; rarely leaders but adopt before the average person. 34%
a product characteristic that influences the rate of adoption: Is the innovation superior to existing products?
Competitive Marketing Intelligence
the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment.
ex Radian6= website that is designed for companies to view all the related talk about their products from consumers through social networking sites
Commercial Online Databases
computerized collections of information available from online commercial sources via the internet
can be used to collect large units of info at a low cost per respondent and respondents will be more honest, but they are hard to control b/c they are out of the control of the researcher
best method for gathering info quickly and provides greater flexibility. Response rates are higher. Costs are higher.
two forms: individual and group interviewing.
involves talking with people in their homes or offices, on street, or in shopping malls. they are flexible. Trained interviewer can guide interviews, explain difficult questions, and explore issues as the situation requires. They can show actual products, advertisements, or packages and observe reactions and behavior. They may cost 3 to 4 times more though.
inviting six or ten people to meet with a trained moderator to talk about a product, service or organization. participants are normally paid a sum of money to participate.
Focus Group Interviewing
personal interviewing that involves inviting six to ten people to gather for a few hours with a trained interviewer to talk about a product, service, or organization. The interviewer "focuses" the group discussion on important issues. Researchers and marketers usually watch from one way mirrors and record, some use video for later study.
small groups of consumers who interact directly and informally with product designers without a focus group moderator present.
Online Marketing Research
collecting primary data online through Internet surveys, online focus groups, Web-based experiments, or tracking consumers' online behavior. Cost 15 to 20 percent less than mail surveys, 30 percent less than phone interviews
conducting marketing surveys and collecting data
Online Focus Groups
gathering of small groups of people online with a trained moderator to chat about a product, service, or organization and gain qualitative insights about consumer attitudes or behavior
Samples less than _______ can usually give good reliability...
every element of population has a known nonzero likelihood of selection ex. simple random sample. which method is best depends on the needs of the research project.
all the possible answer, and subjects make choices among them. Ex. Multiple choice questions and scale questions. They provide answers that are easier to interpret and balance.
allow respondents to answer in your own opinion. ex. Short answer questions
especially useful in exploratory research, when the researcher is trying to find out what people think but not measuring how many people think in a certain way.
questions should be arranged in _____________ order on Questionnaires.
Simple Random Sample
Probability sampling. every member of the population has a known and equal chance of selection
Stratified Random Sample
Probability sampling. the pop is divided into mutually exclusive groups (such as age groups), and random samples are drawn from each group.
Cluster (area) Sample
probability sampling. the pop is divided into mutually exclusive groups (such as blocks), and the researcher draws a sample of groups to interview
non probability sample. the researcher selects the easiest pop members from which to obtain info.
non probability sample. the researcher uses his or her judgement to select pop members who are good prospects for accurate info
non probability sample. the research finds and interviews a prescribed number of people in each of the several categories.
using brain activity, breathing, heart rate, blinking, and skin temps to study consumers feelings and thoughts about certain products.
Ex. Coca Cola's research about which ad to put on the Super Bowl
can be carried out by the company's marketing research staff or by outside firms. this is the most important step in the research plan. They also must check it for accuracy and completeness and code it for analysis.
these include customer purchases, sales force contacts, service and support calls, Web site visits, satisfaction surveys, credit and payment interactions, market research studies. - every contact between the customer and company
this can be a major contribute to companies reaching deeper customer relationships and higher levels of customer service.
some people think this is only a technology based service and they use it incorrectly but this strategy reminds companies to focus on the R "remember, a relationship is what this is all about."
a network designed for the exclusive use of computer users within an organization that cannot be accessed by users outside the organization
A private electronic network that links a company with its suppliers and customers
this type of market has to overcome many obstacles such as language, lack of internet service, and unreliable mail services but still has to obtain a successful business. the costs are usually much higher for successful market research in many different attributes.
tracking consumers' online browsing behavior and using it to target ads to them.
all the individuals and households that buy or acquire goods and services for personal consumption
part of the Buyer's black market....influence how he or she perceives and reacts to stimuli.
Buyer's decision process
part of the buyer's black market... this affects the buyer's behavior (cultural, social, personal, and psychological factors)
person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others.
Cultivating opinion leaders and getting them to spread information about a product or service to others in their communities
a person's pattern of living as expressed in his or her activities, interests, and opinions.
a specific mix of human traits that may be attributed to a particular brand. (ex. of these traits include: sincerity, excitement, competence, sophistication, and ruggedness)
psychological factor that influences a person's buying choices: a need that is sufficiently pressing to direct the person to seek satisfaction
a psychological factor that influences a person's buying choices: the process by which people select, organize, and interpret information to form a meaningful picture of the world. How a person acts is influenced by his _________ of the situation.
this person's theory is that a person's buying decisions are affected by subconscious motives that even the buyer may not fully understand
to qualitative research designed to probe consumer's hidden, subconscious motivations
Interpretive Consumer Approach
many marketers use these touchy-feely approaches to dig deeper into consumer psyches and develop better marketing strategies
a strong internal stimulus that calls for action. It becomes a motive when it is directed towards a particular stimulus object
minor stimuli that determine when, where, and how the person responds
the first step in the buyer decision process. when the buyer recognizes a problem or need. Can be triggered by an internal stimuli when one person's normal needs rise to a higher level and become a drive. Or an external stimuli, when a friend or a commercial sparks the person's interest.
Marketer: he/she should research consumers to find out what kinds of needs or problems arise, what brought them about, and how they led the consumer to this particular product.
the second step in the buyer decision process. when a need or drive comes up the consumer feels the need to get more information and research about the different products that could cater to their needs. (Personal sources, commercial sources*, public sources, and experimental sources) the customers awareness and knowledge of the brand increases as more info is obtained
*most info is gained from this source
The company must make sure in order for customers to gain knowledge of their brand, that their commercial sources are available and easy to understand by consumers.
the third step in the buyer decision process. how the consumer processes information to arrive at brand choices. this rarely involves just one evaluation at one time, usually multiple ones are going on.
the fourth step in the buyer decision process. the consumer's decision usually is to buy the more preferred brand. after going through evaluations and info searches the buyer finally makes its final situation
pretty much the same as the consumer market, but varies in market structure and demand, the nature of the buying unit, and the types of decisions and the decision process involved.
this market structure consists of "far fewer but far larger buyers" than the other market. the business demand is derived demand and they have a more fluctuating demand.
business demand comes from the demand for consumer goods.
the demand for many business goods and services tends to change more and more quickly than the demand for consumer goods and services does.
Business to Business Market
this market usually involves more decision participants and more professional purchasing effort. They require buying committees made up of technical experts and top management which are common in the buying of major goods. and they need a higher level and better trained supply managers.
Business to Business Market
this market usually faces more complex buying decisions. they often require large sums of money, complex technical and economic considerations, and interactions among many people at many levels of the buyer's organization. It may take the buyer's longer to make decisions about buying. And the buyer and seller are more dependent on each other.
systematic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials for use in making products or reselling them to others.
the first process of the business buying process. when someone in the company recognizes a problem or need that can be met by acquiring a specific product or service. it can result from internal or external factors.
General Need Description
the second process of the business buying process. the buyer prepares this which describes the characteristics and quantity of the needed items or solutions. For standard, this presents few problems. For complex situations the buyer may need to work with other people.
the third process of the business buying process it develops the item's technical _________ _________, often with the help of a value analysis engineering team.
an approach to cost reduction in which the company carefully analyzes a product's or service's components to determine if they can be redesigned and made more effectively and efficiently to provide greater value.
the fourth process of the business buying process. locating qualified venders. can do this through trade directories, computer searches, or recommendations from others.
the fifth process of the business buying process. the buyer invites qualified suppliers to submit proposals. They should be marketing documents, not just technical documents. they should spell out how the seller's solution creates greater value for the customer than competing solutions
the sixth process of the business buying process. when the buyer reviews the proposals and selects a supplier or suppliers. Must meet certain attributes (product and service quality, reputation, on-time delivery, ethnical corporate behavior, honest communication, and competitive prices).
the seventh process of the business buying process. it includes the final order with the chosen supplier or suppliers and lists items such as technical specifications, quantity needed, expected time of delivery, return policies, and warranties.
many large buyers turn over ordering and inventory responsibilities to their suppliers.
the final process of the business buying process. the buyer assesses the supplier's performance and provides feedback.
purchasing through electronic connections between buyers and sellers- usually online. gives buyers access to new suppliers, lowers purchasing costs, and hastens order processing and delivery. suppliers can connect with customers online to share marketing info, sell products and services, provide customer support services , and maintain ongoing customer relationships.
when buyers put their purchasing requests online and invited suppliers to bid for business
through which companies work collectively to facilitate the trading process.
Company Buying Sites
a company trading site on which a company posts its buying needs and invites bids, negotiates terms, and places orders.
the "shotgun" approach
target marketing that instead of focusing on a central market, you scatter your target marketing to different markets.
the "rifle" approach
target marketing. these are firms that are focusing on the buyers who have the greater interest in the values they create best
Customer-Driven Market Strategy
the firm divides the total market into smaller segments (segmentation) and then it selects the segments or segments to enter (targeting). Then the company decides on a value proposition. then the market offering is differentiated to create superior customer value. Then you position the market offering in the minds of targeting customers.
Consumer Market segmenting
Geographic, demographic, psychographic, and behavioral segmentation
they form segments of consumers who have similar needs and buying behavior even though they are located in different countries
the process through which firms interact with one-to-one with masses of customers to design products and services tailor-made to individual needs.
how it will create differentiated value for targeted segments and what positions it wants to occupy in those segments
Perceptual Positioning Maps
show consumers perceptions of their brands versus competing products on important buying decisions