Chapter 3 Analyzing Marketing Opportunity

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

Philip Kotler

Learning Objectives
1.

2. 3.

Gathering information and Measuring Market Demand. Scanning the marketing environment. 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.

MISs STRUCTURE(P132)
Internal databases Marketing intelligence Marketing research Information 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 Environment
Worldwide Population Growth

Population Age Mix

Ethnic Markets Educational Groups Household Patterns Geographical Shifts in Population

Shift from Mass Market to Micromarkets

Economic Environment
Income Distribution
Subsistence economies Raw-material-exporting economies Industrializing economies Industrial economies

Savings, Debt, & Credit Availability

Changing Role of Government

Higher Pollution Levels

Natural Environment

Shortage of Raw Materials

Increased Costs of Energy

Accelerating Pace of Change

Unlimited Opportunities for Innovation

Issues in the Technological Environment

Varying R & D Budgets

Increased Regulation

Increased Legislation PoliticalLegal Environment SpecialInterest Groups

Social/Cultural Environment
Of Oneself
Of the Universe Of Nature

Views That Express Values

Of Society

Of Others

Of Organizations

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. 2. 3. 4.

Major factors influencing buyer behavior The buying decision process The stages of the buying decision process Reference concepts

Simple Response Model

Stimulus

Organism

Response

Model of Buying Behavior

Marketing Other stimuli stimuli
Product Price Place Promotion Economic Technological Political Cultural

Buyers Buyers decision characteristics process

Cultural Social Personal Psychological Problem recognition Information search Evaluation Decision Postpurchase behavior

Buyers decisions
Product choice Brand choice Dealer choice Purchase timing Purchase amount

Cultural Factors
Culture Subculture Social Class

Buyer

Social Factors
Reference Groups

Family

Roles & Statuses

Influences on Consumer Behavior

Personal Influences
Age and Family Life Cycle Stage
Occupation & Economic Circumstances Lifestyle Personality & Self-Concept

Psychological Factors

Motivation Beliefs & Attitudes Perception Learning

Maslows Hierarchy of Needs

5
Selfactualization
(self-development and realization)

4 Esteem needs
(self-esteem, recognition)

Social needs 3 (sense of belonging, love)

Safety needs (security, protection)

Psychological needs (food, water, shelter)

Four Types of Buying Behavior

High Involvement Significant differences between brands Few differences between brands Low Involvement

Complex Buying Behavior DissonanceReducing Buying Behavior

VarietySeeking Behavior Habitual Buying Behavior

recognition

Consumer Buying Problem Process

Information search Evaluation of alternatives Purchase decision Postpurchase behavior

Decision Making Sets

Total Set Awareness Set Consideration Set

Choice Set

Decision

Steps Between Evaluation of Alternatives and a Purchase Decision

Evaluation of alternatives Attitude of others Purchase intention Unanticipated situational factors Purchase decision

How Customers Use or Dispose of Products

Get rid of it temporarily

Rent it
Loan it

Give it away

To be (re)sold To be used Direct to consumer

Trade it
Product Get rid of it permanently

Use for original purpose Convert to new purpose Store it

Sell it Throw it away

Keep it

Through middleman
To intermediary

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 persons 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----ones 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( Woofs(

Roles and status

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

Anna Lee

32 -- 5 Anna Lee 8000

Anna Lee

32 -- 5 Anna Lee 8000

The Cinema Two Week Cycle

Going to the movies is not a two hour event for Identity Builders it is a complex planning and evaluating process that offers many o p p o r t u n i t i e s t o m a r k e t e r. The Day(6-7 hours)
The Week before - picking the film, who to go with, where to see, when - PLANNING Getting to the Venue The Movie Eating, Malling, Getting home The Week After -talking about the Day, assessing the film, the school yard discussion. -REVIEWING

2 hours Hanging Out all day with friend

AND THEN IT STARTS AGAIN

Note in S.E. Asia markets cinema attendance by teens is among highest in the w o r l d w i t h a n a v e r a g e o f a r o u n d o n e f i l m a m o n t h.

(2) The buying decision process

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

Anna Lee

20

/ /

Analysis of Regular Blue Ribbon Drinkers


1 5 -1 9 6 0 -6 4 5 5 -5 9 5 0 -5 4

15

4 5 -4 9 20

2 0 -2 4

25

30 4 0 -4 4

35

40

45
3 5 -3 9

50

2 5 -2 9

55
3 0 -3 4

60


I H G F E D

A.1

B.1

2000-2

C.

D.

E.3

444

F.3

1500-1 G.

H.

I.6

-
6.92

0 5.52

4.46

3.47 2.93 2.57 2.42

0 1.44

1.06 0.78 0.78 0.56

% Profile
10 15 20 25 0 5

Base: All Respondents

Source: Millennium Study

BEIJING GUANGZHOU SHANGHAI CHENGDU CHONGQING HANGZHOU NANJING

Regional Breakdown

QINGDAO

HARBIN

SHENZHEN

XIAMEN

XIAN

CHANGCHUN

CHANGSHA

Age/Sex Breakdown
Base: All Respondents
70 60

% Profile

50

40

30

20

10

15 -1 7

18 -1 9

20 -2 4

25 -2 9

30 -3 4

35 -3 9

40 -4 4

45 -4 9

50 -5 4

55 -5 9

60 -6 4

AL E

Source: Millennium Study

FE

M AL E

65 +

% Profile
10 20 30 40 50 60 70 0

Base: All Respondents

Source: Millennium Study

UNIV/COL/POST SEC SENIOR HIGH JUNIOR HIGH PRIMARY OR BELOW SINGLE/OTHERS MARRIED WITH ANY UNDER 15

Educational/Family Position

WITHOUT ANY UNDER 15

SHOPPING DECISION MAKER

HEAD OF HOUSEHOLD

% Profile
10 15 20 25 0 5

UNDER RMB500 RMB500-599 RMB600-699 RMB700-799 RMB800-899 RMB900-999 RMB1000-1099 RMB1100-1199 RMB1200-1299 RMB1300-1399 RMB1400-1499 RMB1500-1699 RMB1700-1999 RMB2000-2499 RMB2500-2999 RMB3000-3499 RMB3500-3999 RMB4000-4999 RMB5000-5999 RMB6000-6999 RMB7000-7999 RMB8000-8999 RMB9000-9999 RMB10000+

Base: All Respondents

Source: Millennium Study

Household Income

--

(3)the stage of the buying decision proce

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 markets(p213 Table6.1) Derived demand

Derived demand

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

Model of Business Buyer Behavior

(p217)

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

Discussion
1.No.2,p236 2.No. 3,p204