Chapter 3Analyzing Marketing Opportunity

Today you have to run faster to stay in the same place.

Philip Kotler

Learning Objectives

1. Gathering information and Measuring Market Demand.

2. Scanning the marketing environment.3. Analyzing consumer markets and buyer

behavior.

1. Gathering information and Measuring Market Demand.

MIS Marketing Research Process

MIS

People ,equipment,and procedures to gather,sort,analyze,evaluate, and distribute needed,timely,and accurate information to marketing decision makers.

MIS’s STRUCTURE

Internal databasesMarketing intelligenceMarketing researchInformation analysis

Marketing Research Process

Defining the problem and research objective Developing the research plan for collecting

information Implementing the research plan-collecting and

analyzing the data Interpreting and reporting the findings

Relative terms

Exploratory research Descriptive research Causal research Secondary data Primary data Online databases

Relative terms

observational research Survey research Single-source data system Experimental research Focus group interviewing Online marketing research

2.Marketing Environment

Tracking & Identifying Opportunities in the Macroenvironment

Demographic, Economic, Natural, Technological, Political, & Cultural Developments

Macroenvironmental Forces

World trade enablers Asian economic power Rise of trade blocs International monetary crises Use of barter & countertrade Move towards market economies “Global” lifestyles

Macroenvironmental Forces

Opening of “new” markets Emerging transnational firms Cross-border strategic alliances Regional ethnic & religious conflict Global branding

Demographic EnvironmentWorldwide Population Growth

Population Age Mix

Ethnic Markets

Household Patterns

Educational Groups

Geographical Shifts in Population

Shift from Mass Market to Micromarkets

Economic Environment

Income DistributionSubsistence economies

Raw-material-exporting economies

Industrializing economies

Industrial economies

Savings, Debt, & Credit Availability

NaturalEnvironment

Higher PollutionLevels

Increased Costsof Energy

Shortage of Raw Materials

Changing Roleof Government

Accelerating Paceof Change

Unlimited Opportunitiesfor Innovation

IncreasedRegulation

Issues in the TechnologicalEnvironment

VaryingR & D Budgets

Political-Legal

Environment

IncreasedLegislation

Special-InterestGroups

Social/Cultural Environment

OfOfOrganizationsOrganizations

OfOfNatureNature

OfOfOneselfOneself

OfOfSocietySociety

OfOfthe Universethe Universe

OfOfOthersOthersViews

That ExpressValues

Social/Cultural Environment

Review

Tracking & Identifying Opportunities in the Macroenvironment

Demographic, Economic, Natural, Technological, Political, & Cultural Developments

Microenvironment

Company Suppliers Marketing intermediaries Customers Competitors public

3.Consumer Behavior

1. Major factors influencing buyer behavior2. The buying decision process3. The stages of the buying decision process4. Reference concepts

Simple Response Model

StimulusStimulus OrganismOrganism ResponseResponse

Model of Buying Behavior

Buyer’s decisionprocessProblem recognitionInformation searchEvaluationDecisionPostpurchase behavior

OtherstimuliEconomicTechnologicalPoliticalCultural

Buyer’scharacteristicsCulturalSocialPersonalPsychological

Buyer’s decisionsProduct choiceBrand choiceDealer choicePurchase timingPurchase amount

MarketingstimuliProductPricePlacePromotion

Culture

Cultural Factors

SubcultureSocial Class

Buyer

Social Factors

ReferenceGroups

Roles &StatusesFamily

Influences on Consumer Behavior

Personal Influences

Age and Family Life Cycle Stage

Lifestyle

Occupation &Economic Circumstances

Personality & Self-Concept

Psychological Factors

Perception Learning

Beliefs &Attitudes

Motivation

Maslow’s Hierarchyof Needs

Psychological needs(food, water, shelter)1

Safety needs(security, protection)2

Social needs(sense of belonging, love)3

Esteem needs(self-esteem, recognition)

4

Self-actualization

(self-developmentand realization)

5

Four Types of Buying Behavior

ComplexBuying

Behavior

Dissonance-Reducing Buying

Behavior

Variety-SeekingBehavior

HabitualBuying

Behavior

Significantdifferences

betweenbrands

Fewdifferences

betweenbrands

HighInvolvement

LowInvolvement

Consumer BuyingProcessProblemProblem

recognitionrecognition

Informationsearch

Evaluation ofalternatives

Purchasedecision

Postpurchasebehavior

TotalSet

Decision Making Sets

Aware-nessSet

Consid-eration

SetChoice

Set Decision

Steps Between Evaluation of Alternatives and a Purchase Decision

EvaluationEvaluationofof

alternativesalternatives

Purchasedecision

Unanticipatedsituational

factors

Attitudeof others

Purchaseintention

How Customers Use orDispose of Products

Product

Get rid of ittemporarily

Get rid of itpermanently

Keep it

Loan it

Rent it

Store it

Convertto new

purpose

Use fororiginalpurpose

Give itaway

Trade it

Sell it

Throw itaway

Direct toconsumer

Tointermediary

Throughmiddleman

To beused

To be(re)sold

Reference concepts

Customer value and satisfaction Customer value Relationship marketing

(1)The major factors influencing buying behavior

Cultural factors Social factors Personal factors Psychological factors

Cultural factors

Culture Subculture Social class

Social class

Social classes are relatively homogeneous and enduring divisions in a society,which are hierarchically ordered and whose members share similar values ,interests, and behavior.

Social factors Reference groups Family Roles and statuses

Reference groups Reference groups consists of all the

groups that have a direct (face-to-face) or indirect influence on the person’s attitudes or behavior.

Groups having a direct influence on a person are called membership groups.(direct groups)

Indirect reference groups

Reference groups

Aspirational groups are those the person hopes to join.

Dissociative groups are those whose values or behavior an individual rejects.

Opinion leader is the person in informal product-related communications who offer advice or information about a specific product or product category.

Family

Family procreation----one’s spouse and children

Types of Family

Types of Family

Skippies(student-kids with income and purchasing power)

Mobys(mother old and baby young) Dinks(double income,no kids) Dewks(double income with kids) Puppies( 贫穷的城市职员） Woofs( 富裕的老人）

Roles and status

A person participates in many groups----family, club, organization.

The person’s position in each group can be defined in terms of role and status.

A role consists of the activities that a person is expected to perform.

Each person carried a status.

Personal factors Age and stage in the life cycle Occupation and economic

circumstances Lifestyle Personality and self-concept

Lifestyle A lifestyle is the person’s pattern of living in

the world as expressed in activities, interests, and opinion.

Lifestyle portrays the “whole person “ interacting with his or her environment.

Markerters search for relationships between their products and lifestyle groups.

VAL2 (value and lifestyles)

Actualizers Fulfilled Achievers Experiences Believers Strivers Makers Stuggles

Personality and self-concept

By personality, we mean distinguishing psychological characteristics that lead to relatively consistent and enduring responses to environment.

Psychological factors

Motivation Perception Learning Beliefs and attitude

The Cinema Two Week CycleThe Cinema Two Week CycleGoing to the movies is not a two hour event for Identity Builders it is Going to the movies is not a two hour event for Identity Builders it is

a complex planning and evaluating process that offers many oppa complex planning and evaluating process that offers many opportunities to marketer. ortunities to marketer.

Note in S.E. Asia markets cinema attendance by teens is among highest in theworld with an average of around one film a month.

The Day(6-7 hours)The Day(6-7 hours)

The Week before- picking the film, who to go with, where to see, when - PLANNING

Gettingto

the Venue

TheMovie

Eating, Malling, Getting home

The Week After -talking about the Day, assessing the film, the school yard discussion. -REVIEWING

2 hoursHanging Out all day with friend

AND THEN IT STARTS AGAINAND THEN IT STARTS AGAIN

The buying decision process

Buying roles Buying behavior Complex buying behavior Dissonance-reducing buyer behavior Habitual buying behavior Variety-seeking buying behavior

the stage of the buying decision process

Problem recognition Information search Evaluation of alternatives Purchase decision Postpurchase behavior

4.Business buyer behavior

Business Market Model of Business Buyer Behavior

Business market

Characteristics of Business Derived demand

Derived demand

Business demand that ultimately comes from the demand for consumer goods.

Business buying behavior

Straight rebuy Modified rebuy New task Systems buying

Participants in the business buying process

Buying centrer User Influencers Deciders gatekeepers

Major influences on business buyer behavior

Environmental Organizational Interpersonal Individual buyers