-the most basic cause of a person's wants and behavior. The set of basic values, perceptions, wants, and behaviors learned by a memeber of society form family and other important institutions.
- (Marketers try to spot cultural shifts)
-ie... a shift toward health/diets.
-Groups of people with shared value systems based on common life experiences and situations
-include nationalities, religions, racial groups, geographic regions
-fast growing, tend to buy more brands/high quality, family shopping, brand loyal
-more price conscious but still like brands
-strongly motivated by quality and selection.
-most fashion conscious
-Most Affluent U.S. Demographic
-growing fast, tech savy
-most brand conscious .
-More healthcare, do it for me, Beauty has no age.
c) Social Class
-societies relatively permanent and ordered divisions whose members share similar values, interests, and behaviors.
a) Observational Research: gathering primary data by observing relevant people actions and situations. Fischer Price toy lab.
-cannot observe feelings, attitudes, or motives.
-ethnographic research: involves sending trained observers to watch and interact with consumers in their natural habitat.
-can generate fresh insights.
-Most widely used method.
-asking people questions about their knowledge, attitudes, preferences, and buying behavior.
-surveys are flexible
-people may not give honest answers or may not know answers to questions.
c) Experimental Research:
-selecting groups of subjects, giving them different treatments, controlling related factors and checking for differences in group responses.
-tries to explain cause and effect relationships.
a) mail questionnaires
-good for large amounts of info at low cost per respondent.
-may give more honest answers than in face to face.
-not very flexible, take longer, return rate is low.
-quick info, flexibility.
-higher response rates
-cost per respondent is higher, people unlikely to discuss personal info, interviewer bias.
-do not call lists
c)Individual interviewing: flexible, but costly
d)Focus Group interviewing
-participants paid a small sum.
-moderator focuses the discussion.
-6 to 10 people who gather for a few hours and talk about a product/service.
e) Online research:
-internet surveys, experiments, focus groups.
-high speed low costs
-more interactive, engaging, easier to complete, less intrusive
-high response rates
-impersonal medium can prevent natural interaction for qualitative research.
-downsides (restricted internet access, lack of control over sample)
-sample: a segment of the population selected for marketing research to represent the population.
(who is surveyed, how many, how the sample is chosen)
a)Questionaires: most common instrument.
-closed end questions
-open ended questions
-Careful of the wording and ordering of questions
-use simple, unbiased wording.
-monitor cunsumer behavior
-Blue eyes technology.
-dividing into different geographic units such as nations, states, counties, regions, cities or neighborhoods.
-divides market into groups based on variables such as age, gender, family life-cycle, income, occupation, education, religion, race, gender, and nationality
-careful to guard against stereotypes.
-divides buyers into different groups based on social class, lifestyle, or personality.
-(cruise line for adventure seekers)
-divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product.
a) occasion segmentation:
-dividing market into groups according to occasions when buyers get the idea to buy, actually make their purchase or use the purchased item. (coke's good morning campaign)
-finding the major benefits people look for in the product class, the kinds of people who look for that benefit and the major brands that deliver that benefit.
c) User Status
-forming segments of consumers who have similar needs and buying behavior even thought they are located in diff countries.
-->How do we want the customer to view our brand?
--What place does it occupy in their mind
#strong beliefs and values:
-what does the brand care about delivering to me? what does associating with this brand say about me?
-should suggest something about the products benefits/qualities
-should be easy to pronounce, recognize and remember
-should be distinctive
-should be extendable:
-should translate easily into foreign languages
-should be capable of registration and legal protection.
#Private Brand (store brand):
-growing faster than national brands.
-generic or no name brands
-priced lower than national brand.
-license names or symbols such as celebrities, movies etc.
-practice of using the established brand names of two diff companies on the same product.
4) brand development:
a) line extensions (Existing Brand, existing product)
-->lower cost strategy to communicate value of new products
-->risk of cannibalization within brand line.
- company extends existing brand names to new forms, colors, sizes, ingredients, or flavors of an existing product category.
-morton salt has become morton popcorn salt, morton lite salt.
b) brand extensions (Current brand, new product)
-gives product instant recognition and acceptance.
c) Multibrands (New band, existing product)
-locks up more buyers on reseller shelf space.
0each brand might obtain only a small market share.
-cocacola with fanta and sprite
d) new brands (new brand, new product)
-coke: minute maid, nestea, dasani