Product: physical good, service, idea, 

Promotion: advertising and personal selling; how is this communicated 

Place: Where is this product available?

Price: the worth of the product in the eyes of the consumer; value to be exchanged, sometimes dollars, sometimes other

Utility

what are the 4 types of utility?

Utility 

Form

Time 

Place 

Assortment 

• marketer puts product in a useful form for you
• ex) bread, flour, eggs
• being able to get things when we need them 
• ex) getting something delivered
• ex) hot dog at a braves game 
• $7 because of location 
• buying things in a logical grouping 
• ex) bookstore = books, pens

• B2B marketing
• instead of thinking what youre giving to them, think of soluatins
• place = how easy do I make it for my customer?
• price = focus on benefits customers get relative to price

in B2B marketing

Solutions

Access

Value

Education 

Product orientation 

problem?

-focus is on internal capability and technology

-What does the firm do best?

-problem: make products, but not what consumers want, so have to price cut or use sales approach to sell 

-focus on aggressive sales techniques 

-key question: how can we sell more of what we have?

"if you build it, they will buy it"

vs

"be contingent on customer demands, today and tomorrow, figure out what people want before they know it"

foucs on enhancing benefits to society 

ex) mcdonalds changed basic happy meal to fight childhood obesity and society 

uncontrollable elements outside of any organization that may affect its performance 

-things that go on that we can't control that have an impact

-systematic analysis

-looks at things going on in the world and with competitors 

Demographic factors 

**MOST cynical as far as advertising 

-8-12 year olds

-20+ million 

-attitutdes

-spend 200+ per year

-very technologically informed

-shopping = social activity 

-13-17

-25 million

-want convenience, but they also want engagement 

-93% internet / 74% cell phones

-75% facebook

** MOST desireable age group to marketers

** largest cohort

**best at multitasking

-18-32 

-75+ million

-wide range of life cycles

-curious, diverse, identify with brands 

-33-47

-40 million

-Focus on children

-Helicopter parents: never let go, hover over kids

-biggest spenders at mass merchandisers

-value education

-convenience important

-48-66

-control 80% of personal wealth

-more active than previous, "never age" -- don't think of themselves as old

-postponing retirement 

-involved in lives of adult children/grandchildren 

• current minorities represent 1/3 of all U.S. population 
• 110 million in 2011 
• by 2023, half of children, by 2042, half of the population 
• Assimilation, but strong interest in preserving native herritage 

• values: self sufficiency, work ethic, upward mobility
• conformity: no one should expect social treatment 
• individuality 
• work to live
• time is an issue

• overall economy
• consumers ability to purchase
• consumers willingness to purchase: income, business cycles and perception
• consumers incomes: measured in MEDIAN because mean is subject to extremes
• consumers willingness to spend

GDP

employment 

consumer perceptions

consumer perceptions:

consumer confidence: survey on how people view economy

misery index: unemployment rate + inflation rate

price fixing

ex) 4 gas stations cannot decide by collaborative ways to make their price 

you cannot lie in an ad; must back statistics with research

-"would a rational person be decieved?"

-similar/same product 

-2 products that are the same except for the brand

-2 different products competing

-substitute items that perform the same function

-product competition 

toothpaste vs mouthwash

-other possible uses for money

ex) "ill pay off my credit card bill with this $3,000"

process of getting relevant data (information) to solve marketing problems

"the process of planning, collecting, and analyzing data relevant to a marketing decision"

1. identify problem

2. plan design

3. specify sampling procedure

4. collect data

5. alalyze data 

6. prepare/present report

7. follow up

Marketing research process

1. Identify problem 

-identify marketing decision: usually target market or 4 Ps

-translate into a research problem

Marketing research process

2. Plan research design 

decide on:

1. type of data needed: primary or secondary
2. method of collecting primary data

Types of data:

Secondary

advantages and disadvantages 

already available, you just have to go look it up

advantages: cheap, already available

disadvantages: wasn't created exactly for the study 

Types of data:

Primary

methods

-new knowledge created for this research effort

-done after secondary data is collected

-methods of getting primary info:

1. observation
2. experimentation
3. surveys 

1. Observation

1a. Manual 

Having a person doing the observation 

-person being observed knows they are being observed

-knowing someone is tracking what you are doing changes your behavior

-can be more expensive 

Observation - MECHANICAL 

examples?

ex) VIP card has demographic information

ex) video cameras on ceilings and GPS systems on shopping carts 

observing in "real life environment" of a person with the product 

-watching people interact with your product

Primary research

2. Experiments 

Changing a variable and analyzing results

-independent: one of the 4 Ps (Product, promotion, place, price)

-dependent: sales

done in real life

ex) changing a product in one city and not changing it in another, and analyzing the results

-a lot of variables due to other sales

-if competitors know a feild experiment is going on, they will try to mess it up

-advantage: get REAL data 

survey research

 in-person types; advantages and disadvantages:

-inhome survey

-executive interview

-mall intercept survey: only if addressing an issue that is relevant to people shopping at a MALL

you can see visuals, how they are responding, go longer

expensive and hard to do  

moderator asking questions, but letting audience drive the discussion

advantage: may come up with stuff you have not thought of 

advantage: quick and easy, person can clarify message if they don't understand

disadvantage: questions have to be short 

advantage: people feel less public, cheap, reach a lot of people

disadvantage: takes time

advantage: quick, real time results

disadvantage: not representative 

issues with surveys

sudging: 

-interviewer bias: presence of interviewer may change responses

ex) if professor asked you how many hours you spend studying outside of class

-consumer willingness to participate

sudging: selling under the guise of research; illegal and unethical, but companies do it

"Wendy's food was excellent"

SA A uncertain D SD

advantage: easy way to ask and involves little work 

"The food at Wendy's was:"

excellent _ _ _ _ _ awful

        old_ _ _ _ _ _fresh

**important to flip "good" and "bad" choices: reverse wording

-data that logically doesnt make sense is thrown out

-designed to give an emotional response without asking in an emotional way

-"if a wendy's burger could talk, what would it say?"

drives for a particular choice 

-ex) "do you agree with 95% of americans that hamburgers are good?"

emotionally charged and almost always LEADING (however leading are not always loaded)

-"Do you think that prision terms should be lenthened for vicious awful criminals who commit horrific crimes?"

asking 2 different things in the same question

"UGA is strong academically and has a great social life, agree or disagree?"

-sensitive personal questions at end

-hard questions at end 

probability sample 

random

random stratified 

*best and strongest type

statistically valid, every element in a population has a known probability of being selected

random: everyone has equal chance of being selected 

random stratified: dividing population into groups based on major and then picking a few within each group

non-probability sample

judgement 

convenience 

not statistically valid; no attempt to be representative 

just looking around the room and picking randomly

picking first row because it is easy 

-often outsource

-select appropriate statistical methods

report: concise statements of the research objectives and design, summary of major findings and recommendations, should be written for someone making decision, not a researcher 

follow up: were reccomendations implemented; did they work?

-legally finding out what your competitor is doing

-part of sound marketing strategy

-helps companies respond to competitive threats

ex) buying apple products and making knockoffs legally 

-risk

-how important purchase is

low-involvement purchases 

type of buying process used: 

how to influence?

low cost, standardized, not important, low risk 

routine response behavior 

in sore promotion: gets us to stop for a min and think about it

also, link to high-involvement issues 

-important to consumer

-risk is present

-consumer see substancial diff between alternatives 

-extensive process used 

1. need recognition

2. info search

3. eval of alternatives 

4. purchase

5. post purchase eval 

1. need recognition

internal and external stimuli 

internal: we realize something

external: we see something

ex) commercial 

want to get from present state to preferred state 

Information search 

internal and external

evoked set 

collecting data to help make a reasonable decision

-internal info search

& external info search: marketing controlled info source: website, ads; consumer reports, gov websites, info from friends and family 

-results in ___ : set of brands that you will consider 

-narrow down and rate choices 

evaluative criteria: for a car: price, size, performance, looks, safety..depending on which is most important to you 

4. Purchase

5. Post purchase behavior 

cognitive dissonance 

5. comparing outcomes to expected results

: second guessing, post-purchase doubt

ways it is reduced by buyer: focus on positives, negatives of the alternative product, and look for positive info from others 

ways reduced by seller: send you marketing info post-buy

ex) "welcome" letters

1. cultural

2. social

3. Individual

4. psychological 

set of norms, values, and symbols that shape behavior and which are generally passed from one generation to the next

-learned, functional, pervassive, evolve over time

small group whose members share elements of overall culture, as well as cultural elements unique to the goup

ex) military, christians, sweet tea in south

upperclass: 15%

middle: 65%

lower: 20%

membership: actually in

aspirational

dissociative

Family

consumer socailization process

selective perception

selective exposure/attention 

selective distortion

selective retention

-people process information differently

-we notice things important to us

-we change info that conflicts with our beleifs, we come up with a way to explain

-we remember things we agree with 

1. physiological

2. safety

3. social

4. esteem 

4. self actualization 

experimental is when an experience changes behavior and a concept is when thinking or reasoning changes behavior

give you an experience vs sending you information 

1. recognize that segments exist

2. pick one or more groups to serve (target mkt)

3. create marketing mix to serve needs 

psychographic segmentation

AOI statement 

VALS survey

expands demographic segmentation to include "how we think and act"

-personality, lifestyle, motives, often measured and grouped based on AOI statement (attitudes, opinions, and interests)

-VALS survey: values attitudes and lifestyles; breaks you into 8 categories 

segments consumers based on benefit they seek 

ex) muffins, toothpaste, universities 

a description of the consumers in a segment 

-focuses on characteristics of consumer, not product

-profile includes profile name

ex) magazines: "young professionals" and "grandmas on the go"

firms assume all customers are the same relative to the product category 

*very few things

multisegment differentiated targeting 

cannibalization 

pick at least 2 segments 

adv: if something happens at least you have another one

trying to extend to a new market, but ending up spreading between sales of an old product

...pepsi example

one segment

dominate that mix, large market share of that market

treat each person as a segment 

...inc loyalty

M&M customization 

basic aims to conform to an existing theory or to learn more about a concept

applied attemps to develop new or improved products 

analyzing data:

cross tabulation 

method of analyzing data that lets the analyst look at the responses to one question in relation to the responses of one or another question

ex) relationship between gender and brand of microwave popcorn 

media that consumers generate themselves and share among themselves

-comes from blogs, message boards, review sites and podcasts 

-trusted more than advertising because it is consumer based

-can be influenced but not controlled by marketers

scanner based research:

behaviorScan

InfoScan

Neuromaking 

1. tracks purchases on 3,000 households through store scanners in each research market

2. consumer packaged goods industry 

3. a feild of marketing that studies the body's response to stimuli 

gap between what the consumer has and what she would like to have --gap must be large enough for consumer to actually do something 

-advertising and sales help trigger

evaluation of alternatives and purchase:

peicemeal process

well known name from one category is extended to another 

ex) jcrew now makes not only clothes, but wedding dresses 

involvement:

routine response behavior

limited decision making

extensive decison making 

-frequently purchased low cost goods

-previous product experience, but unfamiliar with current brands available 

-unfamiliar expensive product or an infrequently bought item 

marketing implications of involvement:

high involvement:

low involvement: 

promotion to target market

in store promotion, package design, linking to high involvement issue 

threshold level of perception

subliminal perception 

min diff in a stimulus that a customer will notice  

**just noticeable = 20% change .. how much drop in price to be recognized as a baragin?

hidden messages that advertisers may be spending 

organized pattern of knowledge that an indv holds true about his/her world

vs. 

learned tendency to respond consistiently to a given object